Workflow
LeddarTech(LDTC) - 2024 Q4 - Annual Report
LDTCLeddarTech(LDTC)2024-12-26 12:20

Financial Performance - Net loss from continued operations for FY2024 was 167.32million,comparedto167.32 million, compared to 43.84 million in FY2023 and 75.42millioninFY2022,indicatingasignificantincreaseinlosses[1033].−AdjustedEBITDAlossfromcontinuingoperationsimprovedto75.42 million in FY2022, indicating a significant increase in losses [1033]. - Adjusted EBITDA loss from continuing operations improved to 30.40 million in FY2024 from 34.82millioninFY2023,and34.82 million in FY2023, and 41.36 million in FY2022, showing a positive trend [1033]. - The Company reported a foreign exchange loss of 399,827inFY2024,comparedtoagainof399,827 in FY2024, compared to a gain of 224,057 in FY2023 and a loss of 2.75millioninFY2022,highlightingvolatilityincurrencyimpacts[1033].FinancingandCapitalStructure−TheCompanyamendeditsBridgeFinancing,extendingthematuritytoDecember13,2024,contingentuponreceivingthefirstinstallmentoftheTIPre−paidRoyaltyFee[1041].−TheDesjardinsCreditFacilitywasamendedtoalignwiththeBridgeFacility,withanestimatedrepaymentofapproximately2.75 million in FY2022, highlighting volatility in currency impacts [1033]. Financing and Capital Structure - The Company amended its Bridge Financing, extending the maturity to December 13, 2024, contingent upon receiving the first installment of the TI Pre-paid Royalty Fee [1041]. - The Desjardins Credit Facility was amended to align with the Bridge Facility, with an estimated repayment of approximately 7.1 million due upon completion of the Equity Financing [1042]. - The Company granted a hypothec of 60millionoveritsmovableassetstoDesjardinsaspartofitsfinancingarrangements[1044].−ThecompanyhasissuedatotalofUS60 million over its movable assets to Desjardins as part of its financing arrangements [1044]. - The company has issued a total of US2.8 million in Bridge Financing, composed of US0.9millioninNon−ConvertibleandUS0.9 million in Non-Convertible and US1.9 million in Convertible Bridge Loans [1069]. - The company raised approximately US9.0millionfromtheissuanceof5,490,000CommonSharesundertheSEPA[1052].−Thecompanyissued5,490,000commonsharesundertheSEPAagreement,generatingnetproceedsofUS9.0 million from the issuance of 5,490,000 Common Shares under the SEPA [1052]. - The company issued 5,490,000 common shares under the SEPA agreement, generating net proceeds of US9.0 million [1100]. Internal Controls and Compliance - The Company identified material weaknesses in internal controls over financial reporting, which could affect the accuracy of financial statements [1033]. - The company has identified material weaknesses in its internal controls over financial reporting and is implementing a remediation plan [1064]. - The company has remediated its material weaknesses in internal control over financial reporting as of September 30, 2024 [1095]. - The company has implemented control activities to prevent or detect material misstatements, enhancing its control environment [1095]. - The company has committed to filing annual reports with the SEC, ensuring compliance with U.S. GAAP and other regulatory requirements [1037]. - The company qualifies as a "foreign private issuer" under SEC rules, allowing it to follow Canadian corporate governance practices [1065]. Strategic Collaborations - A strategic collaboration agreement was established with Texas Instruments to develop an integrated platform solution for ADAS and AD markets, with advanced royalty payments to support commercialization [1039]. - The company entered into collaboration and license agreements with Texas Instruments, which includes advanced royalty payments [1069]. Operational Developments - The Company is evaluating alternative ERP systems to better fit its long-term needs following upgrades to its current system [1036]. - The company started using new non-IFRS financial measures in Q2-2024 to better reflect ongoing operating results [1059]. - The company plans to attract and retain qualified directors, executive officers, employees, and consultants through its Omnibus Incentive Plan [1092]. - The company is focused on achieving corporate goals and rewarding exceptional performance through annual equity grants for executive officers [1091]. Future Projections and Risks - The company will remain an emerging growth company until it meets certain revenue or debt thresholds, including achieving total annual gross revenue of US1.07billionormore[1058].−Thecompanyhasidentifiedrisksrelatedtoitsbusinessandtheneedtoraisesubstantialamountsofadditionalcapitaltoaddressliquidityneeds[1100].−Thecompanyisexposedtointerestrateriskprimarilyrelatedtoitslong−termdebtobligationswithfloatinginterestrates[1055].PaymentsandRoyalties−ThecompanyreceivedaninitialpaymentofUS1.07 billion or more [1058]. - The company has identified risks related to its business and the need to raise substantial amounts of additional capital to address liquidity needs [1100]. - The company is exposed to interest rate risk primarily related to its long-term debt obligations with floating interest rates [1055]. Payments and Royalties - The company received an initial payment of US5.0 million on December 12, 2024, as part of a total payment of approximately US10millioninadvanceroyalties[1097].−AsubsequentpaymentofUS10 million in advance royalties [1097]. - A subsequent payment of US3.0 million will follow the completion of the demonstrator, which is planned to debut at the Consumer Electronics Show in Las Vegas next month [1097]. - The final US$1.9 million of the advance royalties is contingent upon the execution of a client contract with an original equipment manufacturer (OEM) [1097].