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Siyata Mobile Inc (TSXV:SIM) announced that it has filed its Q1 2018 financial results with the company reporting a revenue of $3MM as compared to $4.9MM for the same period in the previous year. As quoted in the press release: This negative variance of $1.9MM (39%) is due mainly to the decrease in demand for …
Siyata Mobile Inc (TSXV:SIM) announced that it has filed its Q1 2018 financial results with the company reporting a revenue of $3MM as compared to $4.9MM for the same period in the previous year.
As quoted in the press release:
This negative variance of $1.9MM (39%) is due mainly to the decrease in demand for the legacy products as well as sales decline in North America primarily due to new 4G products which required FCC and IC certification as well as customer acceptance procedures;
Adjusted EBITDA is negative $833,775 versus positive $163,480 in the same period in 2017 a negative variance of $997,255;
Gross Margin for the Q1 2018 was 27.8% vs. 27% in Q1 2017;
Working Capital as of March 2018 is $8.5MM vs. $8.2MM in March 2017.
Marc Seelenfreund, CEO and Chairman of Siyata Mobile, comments, “Q1 was a challenging quarter as we continued to shift both our existing and new customers from our legacy 3G products towards our new 4G LTE portfolio. In Q2 we are witnessing a lift in sales of our 4G products and we are very confident that this momentum will continue in the coming quarters of 2018 and beyond.”
The company also announces that it has received approval from the TSX Venture Exchange (the “Exchange”) to amend the expiry date of share purchase warrants of an aggregate of 8,299,714 that were originally issued on June 10, 2016 with an exercise price of $0.50 in connection with the Company’s private placement (the “Warrants”). The Warrants now have an expiry date of December 10, 2018. No amendment to the exercise price of the Warrants was made.
In addition, the Company is pleased to announce that, subject to regulatory approval, it has retained Mackie Research Capital Corporation (“Mackie Research”) to initiate market making services to the Company in compliance with the policies and guidelines of the TSX Venture Exchange.
Beginning June 01, 2018, Mackie Research will trade shares of the Company on the Venture Exchange for the purposes of maintaining and improving the liquidity of the Company’s common shares. The agreement between Mackie Research and the Company will continue in effect unless terminated by either party with written or verbal notice of 30 days. The Company has agreed to pay Mackie Research CAD$4,000 per month, quarterly in advance with the funds coming from its working capital. There are no performance factors contained in the agreement between Mackie Research and the Company and Mackie Research will not receive any shares or options from the Company as compensation for services it will render.
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