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SIYATA MOBILE, INC. (NASDAQ:SYTA) Siyata Mobile Reports Significant 30% Year-Over-Year Revenue Growth for the First Quarter of 2024

Transparency directive : regulatory news

16/05/2024 14:00

Gross margin expands to 36.6%, up from 27.5% in the year ago period

VANCOUVER, BC / ACCESSWIRE / May 16, 2024 / Siyata Mobile Inc. (NASDAQ:SYTA)(NASDAQ:SYTAW) (" Siyata " or the " Company "), a global vendor of Push-to-Talk over Cellular (PoC) devices announced its financial results for the three months ended March 31, 2024.

Marc Seelenfreund, CEO of Siyata, said, "With revenue growth of 30%, a higher gross margin and solid improvement in Adjusted EBITDA, our first quarter financial results reflect improvement in our business and the traction we are gaining in the market. Our unique PTT product portfolio features our SD7 handset, which is now carried as a stocked product by three of the four leading U.S. cellular carriers. The Push-To-Talk over Cellular market reached more than $5 billion in 2023 and is expected to grow to more than $10 billion by 2032[1]. We are rapidly expanding our sales channels both in North America and internationally to capture a portion of this massive market opportunity and position Siyata as a global leader in the industry."

[1] https://www.imarcgroup.com/push-to-talk-over-cellular-market

Key financial highlights for the three months ended March 31, 2024:

  • Revenues were $2.4 million compared to $1.8 million for the three months ended March 31, 2023.
  • Gross profit of $863,000, or 36.6% of revenue, compared to $0.5 million, or 27.5% of revenue in the same period last year
  • Net loss was $2.8 million as compared to a net loss of $4.9 million in the same period in the prior year.
  • Adjusted EBITDA was ($1.5) million versus ($2.0) million in the prior year.
  • Appointed Mr. Gary Herman as Chairman of the Board of Directors, following the resignation of Mr. Peter Goldstein as Director and Chairman.

Liquidity and Capital Resources

As of March 31, 2024, the Company had a cash balance of $0.6 million compared to $0.9 million as of December 31, 2023.

Subsequent to quarter end, the Company closed a public offering of common shares and/or pre-funded warrants to purchase common shares for gross proceeds of approximately $4 million.

Appointment of Gary Herman as the Chairman of the Board of Directors

Mr. Gary Herman, the incoming Chairman of the Board commented, "I am honored to serve as Chairman and thank Peter for his service. I am a big believer in our products, technology and the ability to become a market leader in the multi billion dollar Push to Talk Over Cellular industry. I look forward to working closely with Marc, management and the board to make this happen."

About Siyata Mobile Inc.

Siyata Mobile Inc. is a B2B global vendor of next generation Push-To-Talk over Cellular devices and related accessories. Its portfolio of in-vehicle and rugged devices enable first responders and enterprise workers to instantly communicate over a nationwide cellular network of choice to increase situational awareness and save lives.

Siyata's common shares trade on the Nasdaq under the symbol "SYTA" and its previously issued warrants trade on the Nasdaq under the symbol "SYTAW."

Visit siyatamobile.com and unidencellular.com to learn more.

Investor Relations (Canada):

Kin Communications
1-866-684-6730
SYTA@kincommunications.com

Investor Relations (United States):

Brett Maas
Hayden IR
SYTA@Haydenir.com
646-536-7331

Siyata Mobile Corporate:

Glenn Kennedy, VP of International Sales
Siyata Mobile Inc.
glenn@siyata.net

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Siyata's current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Siyata could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in Siyata's filings with the Securities and Exchange Commission ("SEC"), and in any subsequent filings with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites and social media have been provided as a convenience, and the information contained on such websites or social media is not incorporated by reference into this press release.

-- Tables Follow --

Siyata Mobile Inc.
Condensed Consolidated Statements of Financial Position
(Expressed in US dollars)

31-Mar-24 31-Dec-23
Assets
Current
Cash
585,559 898,771
Trade And Other Receivables
1,501,183 1,181,257
Prepaid Expenses
169,366 29,673
Inventory
2,644,722 3,544,519
Advance To Suppliers
813,332 1,048,227
5,714,162 6,702,447
Long Term Receivable
144,942 147,100
Right Of Use Assets
551,758 630,793
Equipment
165,541 175,335
Intangible Assets
7,731,652 7,856,730
Total Assets
14,308,055 15,512,405
Liabilities And Shareholders' Equity
Current
Bank Loan
476,777 89,298
Sale of future receipts
2,182,918 1,467,899
Accounts Payable And Accrued Liabilities
3,916,100 3,449,103
Deferred Revenue
2,025 2,025
Short Term Lease Liability
228,381 254,668
Warrant Liability
133,849 156,433
6,940,050 5,419,426
Long Term Lease Liability
340,561 385,639
340,561 385,639
Total Liabilities
7,280,611 5,805,065
Shareholders' Equity
Share Capital
85,714,727 85,714,727
Reserves
14,761,324 14,644,200
Accumulated Other Comprehensive Loss
98,870 98,870
Deficit
(93,547,477) (90,750,457)
7,027,444 9,707,340
Total Liabilities And Shareholders' Equity
14,308,055 15,512,405

Siyata Mobile Inc.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in US dollars)
For the three months ended March 31, 2024 and 2023

March 31, 2024 March 31, 2023
Revenue
$2,357,879 $1,802,637
Cost Of Sales
(1,494,462) (1,306,120)
Gross Profit
863,417 496,517
36.6% 27.5%
Expenses
Amortization And Depreciation
404,658 401,640
Development Expenses
35,000 53,985
Selling And Marketing
1,298,018 1,003,365
General And Administrative
1,038,552 1,392,430
Bad Debts (Recovered)
18,858 -
Share-Based Payments
117,124 310,828
Total Operating Expenses
2,912,210 3,162,248
Net Operating Loss
(2,048,793) (2,665,731)
Other Expenses
Finance Expense
779,756 34,098
Foreign Exchange
(8,945) 163
Change In Fair Value Of Warrant Liability
(22,584) 2,178,007
Total Other Expenses
748,227 2,212,268
Net Loss For The Period
$(2,797,020) $(4,877,999)
Comprehensive Loss For The Period
$(2,797,020) $(4,877,999)
Weighted average shares
570,462 84,432
Basic and diluted loss per share
$(4.90) $(57.77)

Reconciliation to Adjusted EBITDA
(Expressed in US dollars)
For the three months ended March 31, 2024 and 2023

March 31, 2024 March 31, 2023
Net operating loss
$(2,048,793) $(2,665,731)
Amortization & Depreciation
404,658 401,640
Share based compensation
117,124 310,828
Adjusted EBITDA
$(1,527,011) $(1,953,263)

SOURCE: Siyata Mobile, Inc.



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