Quarterly results announced by LeddarTech for the 24th quarter of the fiscal year

LeddarTech Announces Q3 Financial Results and Progress with Automotive Customers

LeddarTech Holdings Inc., an automotive software company, has announced its financial results for the third quarter of 2024, which ended on June 30, 2024.

In a statement, the company's President and CEO, Frantz Saintellemy, highlighted progress with OEM and Tier 1 automotive customers and improved software maturity. The company has made significant strides in these areas, positioning itself well for future growth in the automotive industry.

In terms of financials, LeddarTech reported a net loss of $7.5 million for Q3-2024, a significant increase from the net loss of $4.2 million in Q3-2023. However, the company also reported a gross profit of $537,435, a marked improvement from a gross profit loss of $66,127 in Q3-2023. Operating expenses for Q3-2024 were $10.9 million, compared to operating expenses of $8.4 million in Q3-2023.

The company's consolidated cash balance as of June 30, 2024, totaled $5.7 million. To further bolster its financial position, LeddarTech has reached an agreement in principle with several of its principal shareholders and its principal lender for a bridge debt financing of US$9.0 million.

The bridge financing, if finalized, will be comprised of two tranches: one for US$6.0 million and another for US$3.0 million. The first tranche is expected to be funded on or about August 19, 2024, and the second tranche on or about October 15, 2024. The bridge financing transaction is subject to the finalization and execution of definitive agreements by the relevant parties.

The second tranche of the bridge financing is conditioned on receipt of satisfactory evidence of investor participation in the Equity Financing by October 14, 2024. It is important to note that the bridge financing and equity financing transactions will not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States prior to the registration or qualification under the securities laws of any such jurisdiction.

LeddarTech has also been making significant progress on the product development front. The company demonstrated LeddarVision, the industry's first real-time AI-based low-level fusion and perception software on an embedded SoC in an automobile. LeddarTech continued to progress collaborations and product roadmap alignment with Texas Instruments (TI) for LeddarVision.

The company also signed a strategic collaboration agreement with a major European automotive engineering service provider and commenced documenting a commercial agreement with a leading technology partner. LeddarTech launched demonstration vehicles in China and Italy to complement existing vehicles in Canada and Israel.

In addition, LeddarTech signed a proof-of-concept (POC) agreement with a major truck OEM and announced that decisions regarding RFQs/RFIs would be made by the end of Q2 2025. The company responded to three customer RFQ/RFIs with decisions by the end of 2024 and 1H2025.

The company has also been working on strengthening its financial position. After August 19, 2024, the Minimum Cash Covenant threshold 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 or November 15, 2024, and $5.0 million at all times after those dates. The Amendment and Waiver with Desjardins extended the Minimum Cash Covenant threshold of $250,000 through August 19, 2024.

It is worth noting that the bridge financing would mature on November 15, 2024. The company has also begun defining the second collaboration stage with Arm following the successful conclusion of stage one.

In summary, LeddarTech has reported its financial results for Q3-2024, highlighting progress with OEM and Tier 1 automotive customers and improved software maturity. The company has also made significant strides in product development and financial positioning, positioning itself well for future growth in the automotive industry.