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SYTA: UPDATE: Siyata reports 2022 2nd quarter financial results and updates investor community on new distribution and partnership efforts.

By Thomas Kerr, CFA

NASDAQ:SYTA

READ THE FULL SYTA RESEARCH REPORT

Siyata Mobile (NASDAQ:SYTA) reported 2nd quarter 2022 results on August 19th.

Revenues for the quarter ending June 30, 2022 were $969,528 compared to $356,979 for the 2nd quarter of 2021. This 172% increase over the prior year period was primarily due to the increase in the sale of rugged devices including the SD7 rugged handset during the quarter. The level of revenues was somewhat disappointing however we believe much of the expected sales during the quarter will push into the 2nd half of 2022 and beyond.

Gross profit for the 2nd quarter was $108,673 (gross margin of 11.2%) compared to negative $466,319 for the 2nd quarter of 2021. Gross margin in the quarter was negatively impacted by low margin sales of legacy products in the EMEA region which was offset by higher-margin sales of the new SD7 rugged handset.

Adjusted EBITDA was negative ($3,356,261) versus negative ($4,607,747) in the prior year period, an improvement of $1,251,486. The company defines adjusted EBITDA as the net operating loss excluding depreciation and amortization, intangible impairment, goodwill impairment, and stock compensation.

Net loss for the 2nd quarter was ($4,304,088) as compared to a net loss of ($10,862,538) in the prior year period. This positive change was due mainly to a one-time intangible impairment charge of $4,322,799 in the year ago period.

As of June 30, 2022, the Company had cash balances of $4,054,420 compared to $1,619,742 at the end of 2021. Working capital at quarter end was $4,208,484. For the first six months of 2022, the company has raised $16.7 million in proceeds from equity offerings.

Siyata Mobile has also issued multiple press releases in June and July that highlights the company’s growing distribution channels and partnerships. This is expected to provide a foundation for increasing volume growth and sustainable revenue generation.

June 7th, 2022 - Siyata Launches Next Generation Push-to-Talk Over Cellular SD7 Device on Verizon Global Network

The company announced that Verizon Communications Inc. (NYSE:VZ), one of the largest mobile operators in the U.S. with approximately 143 million retail connections, has fully integrated Siyata’s rugged SD7 device into their network. As a Siyata channel partner, Verizon will sell the SD7 to their broad enterprise customer base as well as their first responder network of 4.5 million connections which includes over 30,000 public-safety agencies.

June 27th - Siyata’s Next Generation Push-to-Talk Over Cellular SD7 Device is Now Commercially Available and Sold Through FirstNet® and AT&T.

The company announced the SD7 rugged device is now commercially available to the FirstNet network and to AT&T Inc. (NYSE:T) enterprise channels. AT&T is one of the country’s largest mobile operators with 201.8 million mobility subscribers. As a Siyata channel partner, AT&T will offer the SD7 device and accessories to their extensive U.S. enterprise customer base.

July 6th – UScellular™ to Launch Siyata’s Next Generation Push-to-Talk Over Cellular SD7 Device Across Their Network

Siyata announced that United States Cellular Corporation (NYSE:USM), the fourth largest wireless carrier in the U.S. with 4.8 million retail connections in 21 states, will launch Siyata's rugged SD7 device onto their network. UScellular™ is expected to begin selling the SD7 to their broad enterprise customer base beginning in the 3rd quarter of 2022.

July 13th  Logic Wireless and Siyata Mobile Launch Next Generation Push-to-Talk Over Cellular SD7 Device in the United Kingdom, Australia, New Zealand and the Pacific Islands

The company announced that Logic Wireless Europe Ltd., a leading distributor of business-critical communication solutions across the United Kingdom, Australia, New Zealand and the Pacific Islands, will introduce the Siyata SD7 rugged PoC device integrated with ChatterPTT. ChatterPTT is Logic Wireless’s mobile application and gateway solution that intelligently enables different types of communication devices to communicate directly with each other.

July 18th  Siyata Accelerates Global Rollout of its Next Generation Push-to-Talk Over Cellular SD7 Device through Agreement with Azetti Networks

Siyata announced that Spain’s Wireless Zeta Telecomunicaciones (Azetti) will begin to offer the company’s SD7 rugged mission-critical push-to-talk (MCPTT) device through Azetti’s existing enterprise sales channels. Azetti, established in 2000, offers mobile data related solutions and systems based on IP technology, and value-added services platforms for mobile operators, service providers and mission critical users. Products include Push-To-Talk over Cellular (PoC), Multi-Media Message Center (MMSC) and Wireless Internet Gateway.

July 26th  Siyata’s Mission-Critical Push-to-Talk (PTT) Over Cellular SD7 Device Now Available with TASSTA’s Industry-Leading PTT Solutions

The company announced that its SD7 rugged mission-critical push-to-talk (MCPTT) device is now available for customers who need the integrated industry-leading PTT solutions from TASSTA, a global MCPTT software provider and end-to-end solution for critical communications. TASSTA offers voice communications, emergency solutions, messaging and data transfers through a PTT solution that leverages the technical capabilities of enterprise grade smartphones. TASSTA’s expansive product suite includes Push-to-Video, individual, group and priority calls, messaging including data transfer, voice recording, GPS and in-house tracking, alarm emergency solutions and many additional features.

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