Reveals F3Q24 Outcomes for LeddarTech
LeddarTech Holdings Inc., an automotive software company, has announced its fiscal third quarter 2024 results ending June 30, 2024. During this period, the company reported a revenue of $1,423,416 with a gross profit of $537,435. However, the net loss for Q3-2024 stood at $7.5 million.
In terms of strategic collaborations, LeddarTech announced partnerships with several customers in Q3 2024, including Toyota, Valeo, and Magna. The company also signed a strategic collaboration agreement with a major European automotive engineering service provider. Furthermore, LeddarTech demonstrated the industry's first 5V5R/5V6R surround-view AI-based low-level fusion and perception software for premium applications.
LeddarTech also showcased LeddarVision, the industry's first real-time AI-based low-level fusion and perception software on an embedded SoC in an automobile. The company has also commenced documenting a commercial agreement with a leading technology partner.
Regarding financial matters, LeddarTech has started to use the non-IFRS financial measures EBITDA and adjusted EBITDA. EBITDA is calculated as net earnings before interest expenses, deferred income taxes, depreciation of property and equipment, depreciation of right-of-use assets, and amortization of intangible assets. Adjusted EBITDA is calculated as EBITDA adjusted for foreign exchange gain or loss, loss or 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 company has also secured funding through the Bridge Financing transaction. The Bridge Financing will 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 will be conditioned on receipt by the company of satisfactory evidence of investor participation in the Equity Financing by October 14, 2024.
The Minimum Cash Covenant was temporarily reduced from $5.0 million to $250,000 through August 14, 2024, as a result of previous amendments to the Desjardins Credit Facility. The Amendment and Waiver has been entered into with Fédération des caisses Desjardins du Québec, extending the Minimum Cash Covenant threshold of $250,000 through August 19, 2024, and increasing it 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.
LeddarTech responded to three customer RFQ/RFIs with decisions by the end of 2024 and 1H2025. The company also signed a proof-of-concept (POC) agreement with a major truck OEM. As of June 30, 2024, LeddarTech's consolidated cash balance was $5.7 million.
It's important to note that 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.
The parties have reached an agreement in principle for the Bridge Financing transaction, but it is subject to the finalization and execution of definitive agreements. The Bridge Financing will mature on November 15, 2024.
