Siyata Mobile, Inc.

Good morning, ladies and gentlemen, and welcome to the SIATA Mobile third quarter 2024 conference call. All lines are in a listen-only mode, and this call is being recorded on Friday, November 15th, 2024. I would now like to turn the conference over to Mr. Glenn Kennedy, Vice President of International Sales. Sir, please go ahead.

Thank you for joining the SIATA Mobile third quarter 2024 conference call. Today, I'm joined by our CEO, Mark Seelenfreund. 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, the belief that we will continue to see strong sales in all of our product lines and across our various markets, 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 considerations. 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. We are pleased to announce that in the third quarter of 2024, ended September 30th, revenue was $5.9 million, which is a 218% or $4 million increase compared to $1.8 million in Q3 2023, and a $210 or $4 million increase compared to $1.9 million in Q2 2024. Revenue from the U.S. market was $4.8 million, or 81% of total revenue, compared to $1.3 million, or 69% of total revenue for Q3 2023. This was the strongest revenue quarter ever in the history of our company. This increase was primarily due to the increased demand for our SD7 handsets and accessories, and having the inventory to fulfill this demand. We are also extremely excited with our sales outlook going forward, as we are now seeing tangible, rapid adoption of our unique PTT product portfolio across our various sales channels. We believe that we have a very exciting 5G product portfolio planned to launch in 2025, which will position us as the leading PTT handset provider on a global level. We announced recently that T-Mobile is the first wireless carrier that will be launching part of this portfolio and will be releasing details of the innovative devices over the coming months. We are optimistic that more wireless carriers will follow suit. For the remaining Q3 2024 financial metrics, gross margin percentage for Q3 2024 was 29% versus 26.6% in Q3 2023. Gross margin dollars increased from $500,000 to $1.7 million, a $1.2 million positive variance. SG&A expenses are $4.7 million in Q3 2024 versus $2.7 million in Q3 2023, an increase of $2 million. This increase in SG&A was primarily due to marketing expenses related to investor awareness. Adjusted EBITDA for Q3 2024 was negative $3.3 million compared to negative $1.6 million in Q3 2023, a $1.8 million negative variance in EBITDA, mostly related to the increased marketing expenses related to investor awareness. Working capital as of September 30th, 2024 was $200,000 versus $1.3 million as of December 31st, 2023, a $1.1 million decrease in working capital. Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital at September 30, 2024, would have been $1.3 million, and at December 31, 2023, would have been $1.4 million. For the nine months ended September 30, 2024, total revenue was $10.1 million compared to $6.3 million in the same period of 2023, which is a positive variance of $3.8 million. Gross margin dollars were $2.8 million in 2024 compared to $1.8 million in the same period of 2023, which is a positive variance of $1 million. Finally, the gross margin percentage was 27.3% in 2024 compared to 28.2% in the same period of 2023, a decrease of 0.9%. We continue to see the rapid adoption of our disruptive solutions, and as the displacement of land mobile radio by push-to-talk over cellular continues to progress, this should drive meaningful growth for our innovative products. We stand by our previously stated goal of strong revenue growth with a goal of profitability in the coming quarters. We will file our third quarter 2024 financial results for the SEC on a Form 6K and urge our listeners to access them from the SEC's website. Search for Sciata Mobile. That concludes our remarks. If you have any questions, please email them to syta at haydenir.com. Thank you.

Thank you, ladies and gentlemen. This does conclude today's call, and you may disconnect your lines at this time. And we thank you for your participation.