Siyata Mobile Inc (SYTA)

Siyata Mobile Inc – 2024 Annual Financial Report

Report Date: 2025-04-30
Period Covered: Full Year 2024
Form Type: 20-F

1. Executive Summary

Siyata Mobile reported revenues of $11.63 million in 2024, up 41% from $8.23 million in 2023. The top-line growth was driven by a 73% increase in rugged PTT handset and accessory sales, partially offset by a 46% decline in in-building and in-vehicle cellular booster revenue. Despite strongly expanded sales channels and new product certifications, the Company incurred a net loss of $25.27 million, up from a $12.93 million loss in 2023, amid non-cash impairments, financing costs and aggressive equity-market-driven operating expenses.

2. Profit & Loss Analysis

• Revenue: $11.63 M (+41% YoY)
  • Rugged PTT devices & accessories: $10.43 M (+73%)
  • Cellular boosters: $1.20 M (–46%)
• Gross Margin: 18.4% vs. 32.3% in 2023, compressed by elevated inventory impairments and outsourced handling charges in EMEA.
• Operating Expenses: $18.37 M in 2024 vs. $13.18 M in 2023, driven by:
  • Equity promotion: $5.92 M (vs. $1.37 M) for investor awareness ahead of the Core Gaming merger.
  • R&D amortization & development: $2.30 M impairment and $0.63 M of capitalized R&D.
  • Selling & marketing: $4.48 M (+3%) to support new carrier certifications and trade shows.
  • G&A: $4.86 M (–5%) as legal and consulting costs shifted to transaction expenses.
• Net Loss: $25.27 M vs. $12.93 M in 2023 (–95% change).

3. Balance-Sheet & Cash-Flow Highlights

• Total Debt: $3.77 M at year-end, up from $1.56 M in 2023 (loan facilities and sale-of-future receipts).
• Cash: $0.18 M vs. $0.90 M at end-2023.
• Inventory: $3.94 M (–11% YoY) after a $0.23 M impairment against aging EMEA stock.
• Operating Cash-Burn: –$15.08 M vs. –$8.34 M in 2023, driven by widened losses and capex.

4. Key Drivers of 2024 Loss

• One-time stock-based promotion ($5.92 M) and warrant fair-value adjustments.
• Inventory impairments ($0.23 M) and a legacy flood recovery reversal in 2023.
• Financing cost of $3.54 M, from sale-of-future receipt facilities and re-pricing debt.
• Merger-related non-recurring legal and advisory fees.

5. Pros & Cons

Pros

• 41% YoY revenue growth driven by strong PTT device demand.
• Expanded carrier certifications: AT&T, Verizon, T-Mobile, Bell Mobility, Telstra, KPN.
• New in-vehicle product (VK7) and AI-powered RSM announcements.
• Nasdaq listing and rigorous governance, with three independent directors.

Cons

• Net loss doubled, stressing liquidity and requiring emergency financing.
• Gross margin contraction to 18.4%.
• Inventory and development impairments.
• Highly dilutive equity promotions and convertible debt.

6. Outlook & Recommendations

Siyata must stabilize margins by optimizing its supply chain, remediating inventory write-downs and carefully managing future equity raises. Growth in the rugged PTT handset segment remains promising, particularly with the Core Gaming merger delivering cross-promo synergy. However, near-term financing and internal controls require immediate attention to restore investor confidence.

Prepared by a Financial Analyst

• By Product Line (2024 revenues):
– Rugged PTT devices & accessories: $10.43 M (90% of total)
– In-building / In-vehicle boosters: $1.20 M (10% of total)

• Geographic Revenues (2024):
– USA: $7.63 M (66%)
– Canada: $1.04 M (9%)
– EMEA (Europe Middle East Africa): $2.96 M (25%)

• Top 3 Customers: ~64% of total revenue
• Inventory Impairment: $0.23 M against EMEA stock
• R&D Capitalization vs. Expense: $0.63 M capitalized vs. $0.28 M amortized

Siyata Mobile has demonstrated clear market traction in the rugged PTT segment, capturing approvals from major carriers and expanding its global footprint. However, the business remains capital-intensive and loss-making, with returns on recent equity promotions yet to materialize. The Core Gaming integration offers diversification into higher-margin media and digital entertainment, but successful execution depends on disciplined cost control and robust internal controls. Liquidity will be a pivotal challenge in 2025: securing non-dilutive financing (e.g., strategic partnerships or debt at favorable rates) is vital. In the medium term, scaling PTT handset volumes, driving down unit costs, and unlocking recurring software and service revenues will dictate Siyata’s path toward sustainable profitability.