Siyata Mobile, Inc.

Good morning, ladies and gentlemen, and welcome to the SIATA Mobile Q4 2023 and full year 2023 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during the call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, April 9, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Thank you for joining the SIATA Mobile fourth quarter and full year 2023 earnings call. Today, I'm joined by our CEO, Mark Sielenfreund, and we will be available for questions at the end of the presentation. During this call, Management will make express and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy, and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance, or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the risk factors section and elsewhere in the company's annual report on Form 20F for the year ended December 31st, 2023, filed with the Securities and Exchange Commission. Now, I'd like to turn the call over to Mark.

Thank you, Glenn. Good morning, and thank you for joining the call. For the fourth quarter of 2023, ended December 31st, revenues were $1.9 million compared to $2.1 million in Q4 2022, due mainly to increased sales of our mission-critical SD7 handset and accessories, offset by decreased booster sales for the same period. Adoption of our critical communication devices is expanding both in the U.S. and in international markets in multiple verticals, including public safety, education, healthcare, security, hospitality, and more. Given our performance throughout the year and our expanding sales pipeline, we are increasingly optimistic that strong sales growth momentum will continue throughout 2024. Revenue from the U.S. was 67% of total revenue for the year compared to 59% in 2022. Rugged device sales in 2023 were $6 million versus $3.9 million in 2022, an increase of approximately $2.1 million in the year due to an increase in sales of the SD7 handset and accessories. Gross margin percentage for Q4 2023 was 46.2% versus 8.1% in Q4 2022. Gross margin dollars increased from $170,000 to $900,000, a $700,000 positive variance, which is a 410% increase in gross margin dollars. SG&A expenses were $3 million in Q4 2023 versus $4 million in Q4 2022, a positive variance of $1 million. Adjusted EBITDA for Q4 2023 was negative $2.3 million compared to negative $5 million in Q4 2022, which was a positive variance of $2.7 million. Working capital as of December 31, 2023, was just under $1.3 million versus just over $1.6 million as of December 31, 2022, a $300,000 decrease in working capital. For the full year ended December 31st, 2023, total revenue was $8.2 million compared to $6.5 million in 2022, which is a positive variance of $1.7 million or a 27% increase. Gross margin dollars were $2.7 million in 2023 compared to $1.4 million in 2022, which is a positive variance of $1.3 million, a 91% increase. Finally, the gross margin percentage was 32.3% in 2023 compared to 21.4% in 2022, a significant improvement of 10.8 percentage points. Turning over to significant business highlights, we are pleased to report that in the United States, which is our largest geographic market, Sciata is now launched with our flagship SD7 handset at the four largest U.S. carriers, namely AT&T, including FirstNet, as well as Verizon, T-Mobile, and U.S. Cellular. With two of these carriers, we've achieved what is called stock status, which means that the carrier supports the sell-through with subsidies and aggressive pricing options for its customers. In addition, we have recently been notified that we will be getting this stock status with a third major U.S. wireless carrier as well in Q2. Less than a month ago, U.S. Cellular released a PR that has launched the SD7 handset with its push-to-talk or PTT service, and they called out how the Sciata handset enables two-way radio customers to The SD7 handset is the only direct radio replacement device offered by U.S. wireless carriers. Some wireless carriers and customers are calling the SD7 handset a cellular radio because it looks, feels, and functions like a traditional two-way radio, but it works on a nationwide cellular network providing much broader range than two-way radios, and it is also much more cost-effective than two-way radios used by first responders and large enterprise customers. Sciata is selling through the wireless carriers to a growing list of vertical markets. and Sciata is selectively expanding its distribution internationally, where we sell in Canada, Europe, Australia, and the Middle East. Less than two weeks ago, we announced a new large-scale logistics reseller for Sciata in the Middle East. Sciata is also developing an exciting and robust 5G rugged handset portfolio based on feedback from our end customers and our wireless carrier partners, which we will be announcing in the coming months. In addition, In June of 2023, we announced a new product called Sahada Real-Time View together with a major order internationally. This is an innovative real-time camera system installed in first responder and enterprise vehicles to provide better fleet management and control. In Q3 of 2023, we installed our first units and ambulances at a leading international EMS customer, and the system provided outstanding results in real-time field cases. We continue to roll out this product to additional ambulances and EMS vehicles and expect this to be a great add-on to our product portfolio in 2024 and beyond. Based on our strength and position with the wireless carriers, we have seen growing demand for all of our PTT products as shown by our growing sales funnel of opportunities. Our goal is to grow our revenue aggressively in 2024 and to reach breakeven status on a quarterly basis in the coming quarters. Now I would like to pass the line back to Glenn, who will discuss our sales activities, some market dynamics that are benefiting our business, and an update on our product categories.