LeddarTech® Holdings Inc. (“LeddarTech” or the “Company”) (Nasdaq:
LDTC), an automotive software company that provides patented
disruptive AI-based low-level sensor fusion and perception software
technology, LeddarVision™, for ADAS, AD and parking applications,
is pleased to announce financial results for its fiscal third
quarter 2024, which ended on June 30, 2024.
“This quarter, we continued to make excellent
progress with OEM and Tier 1 automotive customers, improved
software maturity and extended feature performance with our key
technology partners, including Arm and Texas Instruments,” stated
LeddarTech’s President and CEO, Frantz Saintellemy. “We believe
that the automotive industry increasingly recognizes the maturity
of our LeddarVision software for fusion and perception and the
value it delivers by enabling automakers to meet and surpass the
customer and regulatory demands for automated driver assistance
systems (ADAS) and autonomous driving (AD).”
Recent Business and Technology
Highlights
Customer and Partner
Traction:
- Signed strategic
collaboration agreement with a major European automotive
engineering service provider, expanding our global customer
coverage.
- Responded to
three customer RFQ/RFIs with decisions by the end of 2024 and
1H2025.
- Commenced
documenting a commercial agreement with a leading technology
partner.
- Signed a
proof-of-concept (POC) agreement with a major truck OEM.
- Continued to
progress collaborations and product roadmap alignment with Texas
Instruments (TI) for LeddarVision with multiple joint customer
meetings and demonstrations.
- Began defining
the second collaboration stage with Arm following the successful
conclusion of stage one.
Product Development:
- New software
releases for LeddarVision Front (LVF) and LeddarVision Surround
(LVS), which feature improvements such as vehicle detection at long
distances, increased detection stability and a reduction of
collision-relevant false alarms with a concentration on LVF
differentiators. Other features include traffic speed sign recall
and a reduction in false alarms, leading to improved performance in
all sales regions.
- Launched
demonstration vehicles in China and Italy to complement existing
vehicles in Canada and Israel.
- Demonstrating
LeddarVision, the industry’s first real-time AI-based low-level
fusion and perception software on an embedded SoC in an
automobile.
- Demonstrating
the industry’s first 5V5R/5V6R surround-view AI-based low-level
fusion and perception software for premium applications.
Industry Highlights and
Events
- On May 9, 2024,
the National Highway Traffic Safety Administration (NHTSA)
published a final rule adopting a Federal Motor Vehicle Safety
Standard (FMVSS) that requires automatic emergency braking (AEB)
systems in U.S. light vehicles and trucks by September 2029.
- LeddarTech will
be demonstrating its automotive software technology at the
following notable events:
- Autosens Europe,
October 8-10, 2024, in collaboration with Ficosa
- CES 2025, Las
Vegas, U.S.A., January 7-10, 2025
Fiscal Third Quarter 2024 Financial
Highlights1
Revenue: Revenue for the fiscal
third quarter of 2024, ending June 30, 2024, was $1.4 million,
compared to $1.4 million in the fiscal quarter ending June 30,
2023. Revenue from legacy LiDAR products declined to $1.1 million
from $1.35 million a year ago due in part to a delay in acquiring
components to fulfill orders of discontinued products. Services
revenue related to our ADAS software increased to $370,691 from
$67,570 a year ago, as development efforts with strategic external
collaborators have increased.
Gross profit: Gross profit for
the fiscal third quarter of 2024, ending June 30, 2024, was
$537,435, compared to a gross profit loss of $66,127 in the fiscal
quarter ending June 30, 2023. The increase in gross profit was due
to a comparison against an inventory write-down in the previous
year’s corresponding quarter.
Operating expenses: Operating
expenses for the fiscal third quarter of 2024, ending June 30,
2024, were $10.9 million, compared to operating expenses of $8.4
million in the fiscal quarter ending June 30, 2023. The increase is
due largely to higher stock-based compensation expenses and higher
selling costs, partially offset by reduced transaction and
restructuring costs.
Net loss: Net loss for the
fiscal third quarter of 2024, ending June 30, 2024, was
$7.5 million, compared to a net loss of $4.2 million in the
fiscal quarter ending June 30, 2023.
Adjusted
EBITDA2: Adjusted EBITDA
loss for the fiscal third quarter of 2024, ending June 30,
2024, was $7.8 million, compared to adjusted EBITDA loss of $5.3
million in the fiscal quarter ending June 30, 2023. The higher loss
was due to increased operating expenses, partially offset by higher
gross profit.
|
Q3-2024 |
Q3-2023 |
Revenues |
1,423,416 |
|
1,417,584 |
|
Gross profit (loss) |
537,435 |
|
(66,127 |
) |
Loss from operations |
(10,331,234 |
) |
(8,480,090 |
) |
Finance costs, net |
(2,876,593 |
) |
(4,147,267 |
) |
Loss before income taxes |
(7,454,641 |
) |
(4,156,400 |
) |
Net loss and comprehensive loss |
(7,454,641 |
) |
(4,156,400 |
) |
Net loss and comprehensive loss attributable to
Shareholders of the Company |
(7,454,641 |
) |
(3,875,384 |
) |
Loss per share |
|
|
Net loss per common share (basic and diluted) |
(0.25 |
) |
(23.12 |
) |
Weighted average common shares outstanding (basic and diluted) |
29,453,615 |
|
167,610 |
|
EBITDA (loss) |
(5,695,313 |
) |
(6,948,353 |
) |
Adjusted EBITDA (loss) |
(7,823,870 |
) |
(5,312,622 |
) |
Balance Sheet and
Liquidity1
As of June 30, 2024, LeddarTech’s consolidated
cash balance totaled $5.7 million, compared to $5.1 million on
September 30, 2023.
Bridge Financing and Waiver under Desjardins
Credit Facility. LeddarTech has reached an agreement in principle
with several of its principal shareholders and its principal
lender, pursuant to which such parties would fund the Company with
an aggregate of US$9.0 million in bridge debt financing in
order to meet the Company’s near-term obligations (the “Bridge
Financing”) while the Company continues to progress its
discussions, including with certain potential strategic investors,
to secure US$35.0 million or more in additional equity capital (the
“Equity Financing”).
The Bridge Financing would be comprised of two
tranches, with the first tranche in the amount of US$6.0 million to
be funded on or about August 19, 2024, and the second tranche in
the amount of US$3.0 million to be funded on or about October 15,
2024. The second tranche of the Bridge Financing would be
conditioned on, among other things, receipt by the Company, not
later than October 14, 2024, of satisfactory evidence of investor
participation in the Equity Financing. The Bridge Financing would
mature on November 15, 2024.
Although the parties have reached an agreement
in principle, the Bridge Financing transaction is subject to the
finalization and execution of definitive agreements by the relevant
parties. There can be no assurance that the parties will agree on
the terms to be included in such definitive agreements, that the
lenders will invest the full US$6.0 million in the first tranche of
the Bridge Financing, that the conditions to the second tranche of
the Bridge Financing will be satisfied or that the Company will be
successful in raising any amount at all in the Bridge Financing
transaction. Moreover, there can be no assurance that the Company
will successfully complete the Equity Financing transaction in the
amounts contemplated by the Bridge Financing or raise any capital
in the Equity Financing transaction at all.
In order to allow sufficient time to finalize
the definitive documents in connection with the Bridge Financing
described above, the Company also has entered into a Twelfth
Amending Agreement (the “Amendment and Waiver”) with Fédération des
caisses Desjardins du Québec (“Desjardins”) with respect to the
Amended and Restated Financing Offer dated as of April 5, 2023 (as
amended, the “Desjardins Credit Facility”). Pursuant to previous
amendments to the Desjardins Credit Facility, the Company and
Desjardins had temporarily reduced the Company’s obligation to
maintain an unencumbered cash balance (the “Minimum Cash Covenant”)
from $5.0 million to the current requirement of $250,000 through
August 14, 2024. Pursuant to the Amendment and Waiver, the Minimum
Cash Covenant threshold of $250,000 will be extended through August
19, 2024, following which time it will be increased to $1.0 million
until the earlier of the date of disbursement of an equity
investment in the Company for a minimum gross proceeds amount of
US$35.0 million (the “Short-Term Outside Date”) and November
15, 2024, and $5.0 million at all times after the earlier of
the Short-Term Outside Date and November 15, 2024.
Any debt or equity securities to be offered and
sold in the Bridge Financing transaction or the Equity Financing
transaction may not be registered under the Securities Act of 1933,
as amended, or State securities laws and may not be offered or sold
in the United States absent registration with the Securities and
Exchange Commission or compliance with an applicable exemption from
such registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities in the Bridge Financing transaction or the Equity
Financing transaction, nor shall there be any sale of such
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such jurisdiction.
About LeddarTech
A global software company founded in 2007 and
headquartered in Quebec City with additional R&D centers in
Montreal and Tel Aviv, Israel, LeddarTech develops and provides
comprehensive AI-based low-level sensor fusion and perception
software solutions that enable the deployment of ADAS, autonomous
driving (AD) and parking applications. LeddarTech’s
automotive-grade software applies advanced AI and computer vision
algorithms to generate accurate 3D models of the environment to
achieve better decision making and safer navigation. This
high-performance, scalable, cost-effective technology is available
to OEMs and Tier 1-2 suppliers to efficiently implement automotive
and off-road vehicle ADAS solutions.
LeddarTech is responsible for several
remote-sensing innovations, with over 160 patent applications
(87 granted) that enhance ADAS, AD and parking capabilities. Better
awareness around the vehicle is critical in making global mobility
safer, more efficient, sustainable and affordable: this is what
drives LeddarTech to seek to become the most widely adopted sensor
fusion and perception software solution.
Additional information about LeddarTech is
accessible at www.LeddarTech.com and on LinkedIn, Twitter (X),
Facebook and YouTube.
Non-IFRS Financial Measures
EBITDA and adjusted EBITDA are non-IFRS
financial measures. A non-IFRS financial measure is a financial
measure used to depict our historical or expected future financial
performance, financial position or cash flow and, with respect to
its composition, either excludes an amount that is included in, or
includes an amount that is excluded from, the composition of the
most directly comparable financial measure disclosed in Company’s
consolidated primary financial statements.
In Q2-2024, the Company started to use these two
new non-IFRS financial measures because we believe these non-IFRS
financial measures are reflective of our ongoing operating results
and provide readers with an understanding of management’s
perspective on and analysis of our performance.
Below are descriptions of the non-IFRS financial
measures that we use to explain our results as well as
reconciliations to the most directly comparable IFRS financial
measures.
EBITDA (loss) is calculated as net earnings
(loss) before interest expenses (income), deferred income taxes,
depreciation of property and equipment, depreciation of
right-of-use assets and amortization of intangible assets.
EBITDA (loss) should not be considered a net
loss in measuring performance, nor should it be an alternative to a
net loss in measuring performance or used as a measure of cash
flow.
Adjusted EBITDA (loss) is calculated as EBITDA
(loss), adjusted for foreign exchange gain (loss), loss (gain) on
revaluation of financial instruments carried at fair value, gain or
loss on lease modification, share-based compensation, listing
expense, transaction costs, restructuring costs and impairment loss
on intangible assets.
The following tables set forth a reconciliation
of adjusted EBITDA and EBITDA to net loss reported in accordance
with IFRS for the three months ended June 30, 2024 and 2023.
|
Q3-2024 |
Q3-2023 |
Net loss |
(7,454,641 |
) |
(4,156,400 |
) |
Depreciation of property and equipment |
46,353 |
|
732,267 |
|
Depreciation of right-of-use assets |
222,914 |
|
229,671 |
|
Amortization of intangible assets |
(24,179 |
) |
243,527 |
|
Interest expenses (income) |
1,514,240 |
|
(3,997,418 |
) |
EBITDA (loss) |
(5,695,313 |
) |
(6,948,353 |
) |
|
|
|
Foreign exchange loss (gain) |
396,315 |
|
(141,391 |
) |
Gain on revaluation of financial instruments carried at fair
value |
(5,408,508 |
) |
(14,554 |
) |
Loss on lease modification |
1,819 |
|
— |
|
Stock-based compensation |
2,881,817 |
|
539,407 |
|
Transaction costs |
— |
|
719,100 |
|
Restructuring costs |
— |
|
533,169 |
|
Adjusted EBITDA (loss) |
(7,823,870 |
) |
(5,312,622 |
) |
Forward-Looking Statements
Certain statements contained in this press
release may be considered forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended
(which forward-looking statements also include forward-looking
statements and forward-looking information within the meaning of
applicable Canadian securities laws), including, but not limited
to, statements relating to LeddarTech’s planned financing
strategies, including related to the Bridge Financing, anticipated
business strategy, future operations, prospects, objectives and
financial projections and other financial metrics. Forward-looking
statements generally include statements that are predictive in
nature and depend upon or refer to future events or conditions, and
include words such as “may,” “will,” “should,” “would,” “expect,”
“anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,”
“intend” and other similar expressions among others. Statements
that are not historical facts are forward-looking statements.
Forward-looking statements are based on current beliefs and
assumptions that are subject to risks and uncertainties and are not
guarantees of future performance. Actual results could differ
materially from those contained in any forward-looking statement as
a result of various factors, including, without limitation: (i) the
possibility that anticipated benefits of LeddarTech’s recent
business combination will not be realized; (ii) the risk that
shareholder litigation in connection with the business combination
or other settlements or investigations may result in significant
costs of defense, indemnification and liability; (iii) changes in
general economic and/or industry-specific conditions; (iv) possible
disruptions from the business combination that could harm
LeddarTech’s business; (v) the ability of LeddarTech to retain,
attract and hire key personnel; (vi) potential adverse reactions or
changes to relationships with customers, employees, suppliers or
other parties, including as a result of the business combination;
(vii) potential business uncertainty, including changes to existing
business relationships following the business combination that
could affect LeddarTech’s financial performance;
(viii) legislative, regulatory and economic developments; (ix)
unpredictability and severity of catastrophic events, including,
but not limited to, acts of terrorism, outbreak or escalation of
war or hostilities and any epidemic, pandemic or disease outbreak
(including COVID-19), as well as management’s response to any of
the aforementioned factors; (x) access to capital and financing and
LeddarTech’s ability to maintain compliance with debt covenants;
(xi) our ability to execute on our business model, achieve design
wins and generate meaningful revenue; and (xii) other risk factors
as detailed from time to time in LeddarTech’s reports filed with
the U.S. Securities and Exchange Commission (the “SEC”) and on the
Company’s SEDAR+ profile at www.sedarplus.ca, including the risk
factors contained in LeddarTech’s Annual Report on Form 20-F for
the fiscal year ended September 30, 2023 filed with the SEC and on
SEDAR+. The foregoing list of important factors is not exhaustive.
Except as required by applicable law, LeddarTech does not undertake
any obligation to revise or update any forward-looking statement,
or to make any other forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact:Daniel Aitken,
Vice-President, Global Marketing, Communications and Investor
Relations, LeddarTech Holdings Inc. Tel.: + 1-418-653-9000 ext. 232
daniel.aitken@LeddarTech.com
- Investor relations
website: investors.LeddarTech.com
- Investor relations
contact: Kevin Hunt, ICR Inc. kevin.hunt@icrinc.com
- Financial media
contact: Dan Brennan, ICR Inc. dan.brennan@icrinc.com
Leddar, LeddarTech, LeddarVision, LeddarSP,
VAYADrive, VayaVision and related logos are trademarks or
registered trademarks of LeddarTech Holdings Inc. and its
subsidiaries. All other brands, product names and marks are or may
be trademarks or registered trademarks used to identify products or
services of their respective owners.
LeddarTech Holdings Inc. is a public company
listed on the Nasdaq under the ticker symbol “LDTC.”
1 |
All amounts in Canadian dollars except where otherwise noted. |
2 |
EBITDA and adjusted EBITDA are non-IFRS measures and are presented
by the Company as they are used to assess operating performance.
These non-IFRS measures do not have standardized meanings under
IFRS and are not likely comparable to similarly designated measures
reported by other corporations. The reader is cautioned that these
measures are being reported in order to complement, and not
replace, the analysis of financial results in accordance with IFRS.
See “Non-IFRS Financial Measures” below. |
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