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Good morning, ladies and gentlemen, and welcome to the Siyata Mobile Third Quarter 2024 Conference Call. All lines are in a listen-only mode and this call is being recorded on Friday, November 15, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Sir, please go ahead.

Thank you for joining the Siyata Mobile third quarter 2024 conference call. Today, I'm joined by our CEO, Marc Seelenfreund. During this call, management will make expressed and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters; the belief that we will continue to see strong sales in all of our product lines and across our various markets; and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's annual report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission. Now, I'd like to turn the call over to Marc.

Thank you, Glenn. Good morning and thank you for joining the call. We're pleased to announce that in the third quarter of 2024 ended September 30, revenue was $5.9 million, which is a 218% or $4 million increase, compared to $1.8 million in Q3 2023, and a 210% or $4 million increase, compared to $1.9 million in Q2 2024. Revenue from the U.S. market was $4.8 million or 81% of total revenue, compared to $1.3 million or 69% of total revenue for Q3 2023. This was the strongest revenue quarter ever in the history of our company. This increase was primarily due to the increased demand for our SD7 handset and accessories and having the inventory to fulfill this demand. We are also extremely excited with our sales outlook going forward as we are now seeing tangible rapid adoption of our unique PTT product portfolio across our various sales channels. We believe that we have a very exciting 5G product portfolio planned to launch in 2025, which will position us as the leading PTT handset provider on a global level. We announced recently that T-Mobile is the first wireless carrier that will be launching part of this portfolio and will be releasing details of the innovative devices over the coming months. We are optimistic that more wireless carriers will follow suit. For the remaining Q3 2024 financial metrics, gross margin percentage for Q3 2024 was 29% versus 26.6% in Q3 2023. Gross margin dollars increased from $500,000 to $1.7 million, a $1.2 million positive variance. SG&A expenses are $4.7 million in Q3 2024, versus $2.7 million in Q3 2023, an increase of $2 million. This increase in SG&A was primarily due to marketing expenses related to investor awareness. Adjusted EBITDA for Q3 2024 was negative $3.3 million, compared to negative $1.6 million in Q3 2023, a $1.8 million negative variance in EBITDA, mostly related to the increased marketing expenses related to investor awareness. Working capital as of September 30, 2024 was $200,000 versus $1.3 million as of December 31, 2023, a $1.1 million decrease in working capital. Removing both the non-cash warrants and preferred share liabilities classified as current liabilities, the working capital at September 30, 2024 would have been $1.3 million, and at December 31, 2023, would have been $1.4 million. For the nine months ended September 30 2024, total revenue was $10.1 million, compared to $6.3 million in the same period of 2023, which is a positive variance of $3.8 million. Gross margin dollars were $2.8 million in 2024, compared to $1.8 million in the same period of 2023, which is a positive variance of $1 million. Finally, the gross margin percentage was 27.3% in 2024, compared to 28.2% in the same period of 2023, a decrease of 0.9%. We continue to see the rapid adoption of our disruptive solutions and as the displacement of land mobile radio by push to talk over cellular continues to progress, this should drive meaningful growth for our innovative products. We stand by our previously stated goal of strong revenue growth with a goal of profitability in the coming quarters. We will file our third quarter 2024 financial results for the SEC on a Form 6-K and urge our listeners to access them from the SEC's website, search for Siyata Mobile. That concludes our remarks. If you have any questions, please email them to [email protected]. Thank you.

Thank you, ladies and gentlemen. This does conclude today's call and you may disconnect your lines at this time. And we thank you for your participation.

Good morning, ladies and gentlemen, and welcome to the Siyata Mobile Q2 2024 Conference Call. At this time, all lines are in a listen-only mode. This call is being recorded on Friday, August 16, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Thank you for joining the Siyata Mobile second quarter 2024 conference call. Today, I'm joined by our CEO, Marc Seelenfreund. During this call, management will make expressed and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, the belief that we will continue to see strong sales in all of our product lines and across our various markets, and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's annual report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission. Now, I'd like to turn the call over to Marc.

Thank you, Glenn. Good morning and thank you for joining the call. For the second quarter of 2024 ended June 30, revenue was $1.9 million, which is an $800,000 decrease compared to $2.7 million in Q2 2023. This decrease was primarily due to working capital constraints, which we believe was a short-term challenge that we addressed with our recent capital raises. Demand from our wireless carriers and distributors remain strong, and we currently have an order backlog of over $7 million, giving us strong visibility into third and fourth quarters. We expect revenue in Q3 2024 will be significantly higher than Q2 2024 revenue. And our goal for 2024 revenue is to have high double-digit growth. As we scale our business aggressively, our order backlog may likely be inconsistent and perhaps lumpy at times due to the purchasing behavior of our customers. Therefore, we do not intend to disclose our backlog quarter-to-quarter. Having said that, we are extremely excited with our sales for the remaining half of 2024 as we are now seeing tangible rapid adoption of our unique PTT product portfolio across our various sales channels. With our North American wireless carrier partners, we are currently in a SD7 stock position with AT&T, Verizon, UScellular, and Bell Mobility in Canada, and we also continue to sell in a non-stock position at T-Mobile. Just as important, our sales reached beyond emergency services to include school safety, healthcare, utilities, hospitality, and enterprise use cases, among others. Therefore, we remain optimistic that 2024 will be a strong sales growth year for Siyata compared to 2023. For the remaining Q2 2024 financial metrics, gross margin percentage for Q2 2024 was 10.4% versus 29.7% in Q2 2023. Gross margin dollars decreased from $800,000 to $200,000, a $600,000 negative variance. The decrease in gross margin was primarily due to one-time heavily discounted transaction with an international reseller, which we believe will help our revenue in the second-half of 2024. SG&A expenses are $4 million in Q2 2024 versus $2.7 million in Q2 2023, an increase of $1.3 million. This increase in SG&A was primarily due to marketing expenses related to investor awareness. Adjusted EBITDA for Q2 2024 was negative $3.8 million compared to negative $2 million in Q2 2023, a $1.8 million negative variance in EBITDA. Working capital as of June 30, 2024 was negative $8.3 million versus $1.3 million as of December 31, 2023, a $7 million decrease in working capital. Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital at June 30, 2024, would have been $2.5 million and at December 31, 2024, would have been $1.5 million. For the six months ended June 30, 2024, total revenue was $4.2 million compared to $4.5 million in the same period of 2023, which is a negative variance of $300,000. Gross margin dollars were $1.1 million in 2024 compared to $1.3 million in the same period of 2023, which is a negative variance of $200,000. The decreased gross margin was again, primarily due to a one-time heavily discounted transaction that was sold internationally to a reseller, which we believe will help our revenue in the second-half of 2024. Finally, the gross margin percentage was 25% in 2024, compared to 28.8% in the same period of 2023, a decrease of 3.8%. Turning to significant business highlights, we are pleased to report that in addition to our strong backlog and our improved stock positions with four North American carriers, we now have our SD7 handset integrated with another leading global push-to-talk application called Zello, and we expect more applications to be announced in the future. This integration has already led to meaningful sales with multiple new sales opportunities in the works. Also of note, we are in discussions with our business partners about new product launches, which we expect to announce in the coming months and will have a significant positive impact in our revenue in 2025 and beyond. We recently expanded our sales team with the hiring of Bob Escalle as our VP of Public Safety. Bob previously served as the Director of Product Development at Samsung's mission-critical Push-to-Talk team. In the brief time that Bob has been at Siyata, he has already helped us to sharpen our product strategy and develop new sales opportunities. We are excited to have a person of his caliber on our team. We are just beginning to see the rapid adoption of our disruptive solutions, and as the displacement of land mobile radio by push-to-talk over cellular continues to progress, this should drive meaningful growth for our innovative products. We stand by our previously stated goal of strong revenue growth with a goal of profitability in the coming quarters. We will file our second quarter 2024 financial results with the SEC on Form 6-K and urge our listeners to access them from the SEC's website. Search for Siyata Mobile. That concludes our remarks. If you have any questions, please email them to [email protected]. Thank you.

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Good morning, ladies and gentlemen, and welcome to the Siyata Mobile Q4 2023 and Full Year 2023 Earnings Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Tuesday, April 9, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Thank you for joining the Siyata Mobile fourth quarter and full year 2023 earnings call. Today, I'm joined by our CEO, Marc Seelenfreund, and we will be available for questions at the end of the presentation. During this call, management will make expressed and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's annual report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission. Now, I'd like to turn the call over to Marc.

Thank you, Glenn. Good morning, and thank you for joining the call. For the fourth quarter of 2023 ended December 31, revenues were $1.9 million compared to $2.1 million in Q4 2022, due mainly to increased sales of our mission-critical SD7 handset and accessories, offset by decreased booster sales for the same period. Adoption of our critical communication devices is expanding both in the U.S. and in international markets in multiple verticals, including public safety, education, healthcare, security, hospitality and more. Given our performance throughout the year and our expanding sales pipeline, we are increasingly optimistic that strong sales growth momentum will continue throughout 2024. Revenue from the U.S. was 67% of total revenue for the year compared to 59% in 2022. Rugged device sales in 2023 were $6 million versus $3.9 million in 2022, an increase of approximately $2.1 million in the year due to an increase in sales of the SD7 handset and accessories. Gross margin percentage for Q4 2023 was 46.2% versus 8.1% in Q4 2022. Gross margin dollars increased from $170,000 to $900,000, a $700,000 positive variance, which is a 410% increase in gross margin dollars. SG&A expenses were $3 million in Q4 2023 versus $4 million in Q4 2022, a positive variance of $1 million. Adjusted EBITDA for Q4 2023 was negative $2.3 million compared to negative $5 million in Q4 2022, which was a positive variance of $2.7 million. Working capital as of December 31, 2023 was just under $1.3 million versus just over $1.6 million as of December 31, 2022, a $300,000 decrease in working capital. For the full year ended December 31, 2023, total revenue was $8.2 million compared to $6.5 million in 2022, which is a positive variance of $1.7 million or a 27% increase. Gross margin dollars were $2.7 million in 2023 compared to $1.4 million in 2022, which is a positive variance of $1.3 million, a 91% increase. Finally, the gross margin percentage was 32.3% in 2023 compared to 21.4% in 2022, a significant improvement of 10.8 percentage points. Turning over to significant business highlights. We are pleased to report that in the United States, which is our largest geographic market, Siyata is now launched with our flagship SD7 handset at the fourth largest U.S. carriers, namely AT&T, including FirstNet, as well as Verizon, T-Mobile and UScellular. With two of these carriers, we've achieved what is called stocked status, which means that the carrier supports the sell-through with subsidies and aggressive pricing options for its customers. In addition, we have recently been notified that we will be getting this stocked status with a third major U.S. wireless carrier as well in Q2. Less than a month ago, UScellular released a PR that it has launched the SD7 handset with its push-to-talk, or PTT, service, and they called out how the Siyata handset enables two-way radio customers to seamlessly transition to its new PTT over cellular service. The SD7 handset is the only direct radio replacement device offered by U.S. wireless carriers. Some wireless carriers and customers are calling the SD7 handset 'a cellular radio', because it looks, feels and functions like a traditional two-way radio but it works on a nationwide cellular network, providing much broader range than two-way radios, and is also much more cost effective than two-way radios used by first responders and large enterprise customers. Siyata is selling through the wireless carriers to a growing list of vertical markets and Siyata is selectively expanding its distribution internationally where we sell in Canada, Europe, Australia and the Middle East. Less than two weeks ago, we announced a new large scale logistics reseller for Siyata in the Middle East. Siyata is also developing an exciting and robust 5G rugged handset portfolio based on feedback from our end customers and our wireless carrier partners, which we will be announcing in the coming months. In addition, in June of 2023, we announced a new product called Siyata Real Time View together with a major order internationally. This is an innovative real-time camera system installed in first responder and enterprise vehicles to provide better fleet management and control. In Q3 of 2023, we installed our first units in ambulances at a leading international EMS customer, and the system provided outstanding results in real-time fuel cases. We continue to rollout this product to additional ambulances and EMS vehicles and expect this to be a great add-ons to our product portfolio in 2024 and beyond. Based on our strength and position with the wireless carriers, we have seen growing demand for all of our PTT products as shown by our growing sales funnel of opportunities. Our goal is to grow our revenue aggressively in 2024 and to reach breakeven status on a quarterly basis in the coming quarters. Now, I would like to pass the line back to Glenn, who will discuss our sales activities, some market dynamics that are benefiting our business, and an update on our product categories.

Thank you, Marc. Marc just mentioned our sales funnel of opportunities. This is a list of over 50,000 units of SD7 handset potential sales for multiple school districts, police forces, hospitals, security companies, utilities and more who are in various stages of trials towards purchasing Siyata SD7 handsets. We know we're not going to win all of these opportunities; however, we're confident that we will win a percentage of these, plus we will continue to acquire new potential customers throughout 2024. We are also encouraged by the fact that the number of entries in our sales funnel is growing and the size of the multiple large-scale opportunities is also growing. Currently, we are conducting large-scale trials with a national airline, a global sporting event, several major school districts, leading transit companies and a statewide government opportunity. One of our key wireless carrier partners FirstNet, which is owned by AT&T, announced that as of December 31, 2023, it now supports approximately 5.5 million push-to-talk over cellular connections to 27,500 public safety agencies, a gain of about 500 agencies during the fourth quarter of 2023 from the figures they released three months earlier. During the fourth quarter of 2023, FirstNet added approximately 260,000 push-to-talk over cellular connections. Siyata works closely with FirstNet, and their growth is further evidenced that U.S. first responder customers are moving towards push-to-talk over cellular solutions. In our rugged handset product category, we are focused on growing sales of our SD7 PTT handset that supports mission-critical push-to-talk to North American and international wireless carriers. We displayed this handset at several trade shows during and after the quarter, including in March 2024 at the International Wireless Communications Expo, or IWCE for short, in Orlando, Florida and at multiple regional shows in the U.S. in partnership with FirstNet and Verizon. Today, we're active with all major North American carriers, as Marc mentioned, and also with Telstra in Australia, and KPN in the Netherlands, as well as with multiple dealers and distributors in the U.S. and international markets. Our objective remains to expand our launch with additional international carriers and with additional PTT application companies in future. We're also building a recurring revenue channel by partnering with selected application providers who will share the monthly subscription revenue when we sell their application on our devices to our customers. In our in-vehicle devices category, we continue to sell-through our UV350 in-vehicle device with customers in North America and internationally. We announced an order during Q1 of 2024 of 1,000 units of UV350 for an international EMS customer. We are experiencing increasing demand for our unique VK7 vehicle kit, which is a partner product to our SD7 handset. Several customers in the U.S., including some with yellow school buses, transit vehicles and snowplows, are installing VK7 vehicle kits into their vehicles so that the SD7 handset can be easily used in the vehicle kit while their staff are in their vehicles. And also in our in-vehicle product category in 2023, we received our first order for $1.2 million for Siyata Real Time View, an integrated advanced video monitoring system for emergency management service, or EMS, providers in their fleet vehicles. Marc mentioned that we began to install the system into ambulances and first responder vehicles during the third quarter of 2023, and we look forward to more sales opportunities for this solution in 2024. Finally, in our cellular booster product category, we saw a steady demand for cellular boosters throughout North America. I will now hand the line back to Marc for closing remarks.

Thanks, Glenn. Overall, we are excited to see a growing number of customers choose to transition from legacy LMR devices to our Siyata PTT handsets and accessories. We are pleased that this is happening across a wide variety of vertical industries and across multiple geographic markets. We believe that the core fundamentals are in place to grow our business both in North America and in international markets. Our goal remains to ramp up sales to reach breakeven and then profitability as soon as possible, and this focus is shared by our entire Board and management team. We have filed our 2023 financial results with the SEC on a Form 20-F, and urge our listeners to access them from the SEC's website, search for Siyata Mobile. That concludes our formal remarks. With that, operator, kindly open the call to questions. Thank you.

Certainly. At this time, we will be conducting a question-and-answer session. [Operator Instructions] Your first question for today is coming from Neil Cataldi at Blueprint Capital Management.

Hey, guys. A question for you about the recurring revenue channel you mentioned. I was wondering if you could expand on that a little bit more. What percentage of revenue is it today? How might it scale overtime? Any notable difference in margins on that? Thank you.

Yeah, Neil, it's Glenn here. Thanks for the question. Our recurring revenue channel is -- it's small today. I would say it's not yet material financially. However, it's important for us and we are growing it. And the way it essentially works is, and the best way I can describe it is using an example, there's a company that offers a software application, they're called CrisisGo. And it's especially relevant for schools, the education market, K-12 schools, and specifically their solution, their application controls what happens when the SOS emergency button on our device is pressed. And they are -- through their application, they're able to have the right people notified of an emergency situation in the classroom or somewhere in the school, and they're able to follow-up through our two-way radio capabilities, our push-to-talk capabilities, and they're even able to notify local authorities. So, when we co-sell that solution, our hardware with their software application, there's a subscription fee that the customer pays to CrisisGo, and a portion of that revenue will come to Siyata. So that's one example. It's not the only example, but that's one example of application partnerships that we're doing. And so, over time, we expect that to grow to become material and will actually eventually down the road call it out in terms of its percentage. But it's very important for us to develop that channel for us.

Great. Thanks. Appreciate the color.

[Operator Instructions] Your next question for today is from [Chris Zibert] (ph), a private investor. Chris, your line is live.

Good morning. You had mentioned the different vertical markets and the use cases for your products. In which vertical markets are you seeing the most current success, and which do you see the most upside potential, and why?

I'll take that. This is Marc. Thanks for the question, Chris. So, as we mentioned on the call, we have a lot of different verticals that we're going after, construction, first responders, utilities. But probably the largest vertical that we're seeing right now is actually schools. We've sold into, I want to say, well over 20 school districts until now. And in our funnel, I want to say at least 20% are various school districts across the United States. It's sort of a greenfield market for us, because there were not really radios there before. And this is a very cost effective way to get teachers, security guards, and people that are working in the schools, a communication tool that they can actually use in time of emergency and also ongoing. So, we think that that's going to be a very big vertical for us. There's over 3 million teachers in the United States. There's around 0.5 million yellow school buses and we're selling both to yellow school buses and to teachers. So, we actually think that that's going to be the largest vertical for us going forward. Having said that, we have many, many other verticals that we're working on and that we're selling into. But if I have to pick out one specific vertical, I would say, will be the schools, education.

Sounds good. Is college campus has been something that's been looked into as well?

Yes. Absolutely. We've already sold to some -- a few college campuses. That is not as big for us as specifically school districts. I can't say why, but just in general, colleges is also something very interesting for us. We sold in colleges more to security operations within colleges, whereas in schools, we're selling specifically to teachers and security and people that are working at the schools, the management of the schools. So, we just see that as a bigger, bigger opportunity. And again, we sell both to the schools and to the yellow school buses. So, it allows us to have a full opportunity to sell both our handsets and our vehicle devices. So, the answer to your question is, yes, we are going after universities for sure, but specifically K-12, we believe that that's the bigger opportunity.

Understandable. Thank you.

Thank you.

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Good morning, ladies and gentlemen and welcome to the Siyata Mobile Q3 2023 Conference Call. At this time all lines are in a listen-only mode. Following the presentation we will conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Thursday, November 16, 2023. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Thank you for joining the Siyata Mobile third quarter 2023 conference call. Today, I'm joined by our CEO, Marc Seelenfreund, and we will be available for questions at the end of the presentation. During this call, management will make expressed and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and other future considerations. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's annual report on Form 20-F for the year ended December 31, 2022, filed with the Securities and Exchange Commission. Now I would like to turn the call over to Marc.

Thank you, Glenn. Good morning and thank you for joining the call. For the third quarter of 2023 ended September 30, revenues were $1.8 million compared to $2.6 million in Q3 2022 due mainly to decreased sales of our mission-critical SD7 handset and accessories. This occurred mainly due to moving from non-stock status to stock status with a major U.S. carrier partner at the end of Q3 2023. Adoption of our critical communication devices is expanding both in the U.S. and in international markets in multiple verticals, including public safety, education, health care, security, hospitality and more. Given our performance throughout the first three quarters of the year and our expanding sales pipeline, we are increasingly optimistic that 2023 will be a strong sales growth year for Siyata, which will carry momentum into 2024. Revenue from the U.S. was 69% of total revenue for the quarter compared to 64% in Q3 2022. Rugged device sales in Q3 2023 were $1.1 million versus $1.9 million in Q3 2022, a decrease of approximately $800,000 in the quarter due to a decrease in sales of the SD7 handset as we transition from non-stock status to stock status with a major U.S. carrier. This stock position status is a significant achievement for Siyata, which very few device suppliers ever achieved. This means that this carrier will now market and subsidize the SD7 handset to many more customers, which we expect will drive stronger sales. Gross margin percentage for Q3 2023 was 26.6% versus 33.3% in Q3 2022. Gross margin dollars decreased from $856,000 to $490,000, a $366,000 negative variance, which is a 43% decrease in gross margin dollars. SG&A expenses were $2.7 million in Q3 2023 versus $2.4 million in Q3 2022, an increase of $300,000. Adjusted EBITDA for Q3 2023 was negative $1.6 million compared to a negative $1.6 million in Q3 2022, which was essentially unchanged. Working capital as of September 30, 2023, was nearly $3.8 million versus just over $1.6 million as of December 31, 2022, a $2.1 million increase in working capital. So far this year, for the 9 months ended September 30, 2023, total revenue was $6.4 million compared to $4.4 million in the same period of 2022, which is a positive variance of just under $2 million or a 45% increase. Gross margin dollars were $1.8 million in 2023 compared to $1.2 million in the same period of 2022, which is a positive variance of just under $600,000, a 47% increase. Finally, the gross margin percentage was 28.2% in 2023 compared to 27.9% in the same period of 2022, a slight improvement. Turning over to significant business highlights. We are pleased to report that Siyata has delivered on its plan to build and expand its potential customer base for the SD7 handset and accessories portfolio. We previously announced that the SD7 is certified and approved for use with a growing list of North American carrier customers including FirstNet and AT&T, Verizon, T-Mobile, U.S. Cellular and international carrier customers, including Bell Mobility in Canada, TASSTA in Australia and KPN in the Netherlands. We also previously announced that we have expanded our distribution to include strategic resellers, including Two Way Direct, Goosetown and Tango Tango in the United States, Entropia in Belgium, RadioTrader in the U.K., Consort Digital in India and others. This foundation of increased distribution is directly leading to many potential opportunities that could be of significant size. We continue to increase the number of proof-of-concept trials by our customer base which we believe will translate into volume growth for our SD7 rugged devices and related accessories, especially now that we have achieved stock status at a major U.S. carrier. Having said that, this is a process as these sales efforts require carrier sales force training, customer trials and technical support, and we remain focused on aggressively growing our revenue in this multibillion-dollar industry. We expect even larger volumes will follow as end customers grow to appreciate our unique offering in this new product category. We also previously announced an exciting new product, the SD7 Plus, which features a wide-angle camera, coupled with 4G connectivity that will have traditional body camera functionality as well as real-time situational and traditional tracking capabilities. The SD7 Plus will be powered with Visual Labs' innovative body camera software. Visual Labs is a highly respected software company and developer of Android-based body cam software. The company provides its software to public safety, private security and other customers throughout the United States and internationally. Its public safety customers include town marshals, city police departments, county sheriff offices, wildlife and other state agencies and federal customers. We are starting customer trials and expect the SD7 Plus with body camera capabilities will be shipping in the coming months. In addition, in June of this year, we announced a new product called Siyata Real Time View, together with a major order. This is an innovative real-time camera system installed in first responder and enterprise vehicles to provide better fleet management and control. In Q3, we installed our first units in ambulances at a leading international EMS customer, and the system provided outstanding results in real-time field cases. We continue to roll out this product to additional ambulances and EMS vehicles and expect this to be a great add-on to our product portfolio in 2024 and beyond. And finally, we previously announced that we had expanded our sales team by hiring Doug Clark, who previously was an AVP and AT&T's FirstNet. In the brief time that Doug has been on our team, he has already helped us to develop new sales opportunities based on his career experience and positive reputation with our customers and carrier partners and we are very excited to have a person of his caliber on our team. Now I would like to pass the line back to Glenn, who will discuss some of the industry trends and market dynamics that are benefiting our business and update on our product categories.

Thank you, Marc. On September 30, 2023, FirstNet announced it now supports approximately 5.3 million connections to 27,000 public safety agencies, a gain of about 1,000 agencies during the third quarter of 2023 from the figures they had released three months earlier. During the third quarter of 2023, FirstNet added approximately 300,000 connections. Siyata works closely with FirstNet and their growth is further evidence that U.S. first responder customers are moving towards Push-to-Talk over Cellular solutions. Looking at our sales funnel, we continue to see strong opportunities in each of our three product categories. First, in our rugged handset product category, we are focused on growing sales of the SD7 PTT handset that supports mission-critical Push-to-Talk to North American and international wireless carriers. We displayed this handset at several trade shows during and after the quarter, including in August at the APCO 2023 show in Nashville, Tennessee and multiple regional shows in the U.S. in partnership with FirstNet. The newly granted stocked status from a major U.S. carrier, the quantity of new customer trials, the customer feedback at the trade shows and the direct engagement from senior personnel within the wireless carriers have all been strong as these wireless carriers aim to capture new customers who have been using traditional LMR or two-way radios. Today, we are active with all major North American carriers, as Marc mentioned, and also with TASSTA in Australia and KPN in the Netherlands as well as with multiple dealers and distributors in the U.S. and international markets. Our objective remains to expand our launch with additional North American and international carriers and with additional PTT application companies in the future. We have seen significant SD7 sales to first responders, schools, health care facilities, resorts, municipalities and more. Large U.S. school districts are replacing legacy two-way radios by purchasing SD7 handsets to use throughout the schools they serve to help keep their students and staff safe. We anticipate more school districts following suit in the current and coming quarters. Recently, we announced a large purchase order for $750,000 of our rugged handsets from a single customer in partnership with Synch Communication for first responders in Israel. As a result of all SD7 market activity, we are confident that this will translate into multiple thousands of SD7 handsets sold throughout the balance of 2023 and in 2024, and we look forward to adding sales of the SD7 Plus with body camera capabilities in the coming months. Secondly, in our in-vehicle devices category, we continue to sell through our UV350 in-vehicle device with customers in North America and internationally. We are experiencing increasing demand for our unique VK7 vehicle kit, which is a partner product to our SD7 handset. Several customers in the U.S., including some with yellow school buses, transit vehicles and snowplows are installing VK7 vehicle kits into their vehicles so that the SD7 handset can be easily used in the vehicle kit while their staff are in their vehicles. And also in the in-vehicle product category, prior to the third quarter of 2023, we received our first order, which was from $1.2 million for a new product called Siyata Real Time View, an integrated advanced video monitoring system for emergency management services, or EMS, providers in their fleet vehicles. Marc mentioned that we have begun to install the system into ambulances and first responder vehicles during the third quarter of 2023, and we look forward to more sales opportunities for this solution in 2024. And thirdly, in our cellular booster product category, we saw reduced but still steady demand for cellular boosters throughout North America. And now I will hand the line back to Marc for closing remarks.

Thanks, Glenn. Overall, we are excited to see a growing number of customers choose to transition from legacy LMR devices to our Siyata PTT handsets and accessories. We are pleased that this is happening across a wide variety of vertical industries and across multiple geographical markets. We believe that the core fundamentals are now in place to grow our business both in North America and in international markets. Our goal remains to ramp up sales to reach breakeven and then profitability as soon as possible, and this focus is shared by our entire Board and management team. We will file our third quarter 2023 financial results with the SEC on a Form 6-K and urge our listeners to access them from the SEC's website, search for Siyata Mobile. That concludes our formal remarks. With that, operator, kindly open the call to questions. Thank you.

At this time we will be conducting a question-and-answer session. [Operator Instructions] Your first question for today is coming from Jack Vander Aarde with Maxim Group.

Okay, great. Good morning. Thanks for the update and taking my questions. Marc, let me just start with a quick question, a housekeeping question on the OpEx line. The third quarter 2023 total OpEx of $2.7 million. It looks like S&M expense has picked up, which makes sense to support sales growth but you guys meaningfully reduced G&A expense and overall OpEx is down pretty meaningfully is – which is good to see. Is this a normalized quarterly OpEx level going forward? Are there any puts and takes or onetime blips in this quarter? Or is this a good go-forward rate for an analyst perspective? Thanks.

There are – first of all, hi, Jack. How are you? There definitely are some onetime expenses that you're not going to see going forward. And I think that it's actually a higher quarter than what you're going to see going forward. And I think that the general – the OpEx and also the G&A are going to be a little bit lower. So this is on the high side. It's not even standard.

Got it. Okay. That's helpful to know. I appreciate that. And then – okay, so let me switch gears here to the more exciting stuff that I want to talk about, which is you mentioned you experienced some slight order delays due to this transition from a non-stock to a stock status with a large U.S. wireless carrier. And this seems like a big opportunity, clearly, that we've been kind of waiting for. So does this imply you had orders – just one thing right off the bat? Does this imply you had orders that you expected to receive in the third quarter that slipped into the fourth quarter? Or is this – was this kind of more of a pause as you signed the stock status deal and now you're preparing to train their team and get them caught up to speed? What's going on with the potential orders and delays? Thanks.

So just to explain to you what this means. So if until now, AT&T or its distributors would sell our devices at MSRP at around $400. Now the way that they're going to be selling it is they are subsidizing it down to $0.99. And then you have to pay a certain price per month on your bill, and that's anywhere between, let's say, $20 to $30 per month. And that includes the device and the cellular package and the PTT package. So the minute that customers heard that they're not going to have to pay full MSRP that they're going to be able to get it subsidized and paid over, let's say, two years. Obviously, customers – it's much, much more attractive for them. Any customers that were thinking of buying a product pushed it out until it was a stock product. So you can understand it's very clear that every customer would prefer to have it the way that we're doing it now. And this is basically the dream of every small vendor that works with the large carriers to have a product stock. It's not something that's trivial. It's a very unique for a company of our size. I would say that we are, by far, the smallest company that has a stock product and a major carrier in the United States. And yes, I think that, that's going to help drive sales dramatically in the coming quarters and going forward just because it makes it so much easier for customers to buy it and we're now sort of at the same level of playing together with the other companies that sell Push-to-Talk over Cellular devices that are mainly smartphones, more expensive than our product, but they are also subsidized. So let's say, a Samsung product, which cost double the price of our product, maybe that customer will pay $40 a month and only pay $20 a month for hours, but both products are now $0.99, right? So in that sense, it's a home run for Siyata. And we expect that, that's also going to help sales in a big way going forward.

Okay. Is there any way you – do you have any more specific or visibility into the timing of sales from this arrangement and just visibility into the size of the orders and revenue visibility, inventory planning? I mean, is there anything more tangible that you could point to that gives you confidence that this is the near term growth...

So the only confidence that I have is from the discussions that we've had with the carriers, with the various sales teams, with various customers that we're starting to sell to and ramp up to. I can't give you an exact number because we're not there yet. And that's really the reason that we can't give guidance until now is because we don't have a track record of quarters that we understand what kind of sales we're going to get every quarter. I do believe that our coming quarters are going to be better than they were in the past. I can't give you an exact number, but just from the conversations that we're having, from the partnerships that we've built, from the fact that we have a stock product now, I think that they are going to be higher, even dramatically higher than what they've been until now. That's the plan and that's where we see it going.

Okay. And then including the stock deal and just outside of it, everything all put together, as you're looking at the fourth quarter, we're about halfway through this fourth quarter now. Is there anything you could touch on just in terms of relative sales expectations as a whole? Are you expecting to grow above this third quarter that you just had? How is – what do you think from the year-over-year from the fourth quarter last year?

So we expect to grow over the third quarter, and we expect to grow year-over-year. And we think that from this fourth quarter going forward, we're going to have much better quarters than we've had in the past. I wish I could tell you more, but I can't, not because I don't want to but it's because it's not an exact number right now. But from what we've seen in the first part of this quarter, what we see coming in for the second half of the quarter and what we see going into next year, we think that we're going to have much better quarters and much stronger sales than what we've had in the past. And again, it's all based on the partnerships that we've built up over the past two years. It's not even a year. So over the past two years, all the partnerships, all the MSAs that we've signed with the various carriers, all the dealers from the carriers that we're working with, all the trials that we've done with the various customers, you take that, you put it all together, and that's what gives us a lot of confidence that the coming quarters, including this quarter can be much better than what you've seen in the past.

Okay. Great to hear. And then maybe just one more for me. I did hear you mentioned it on the prepared remarks, but maybe just looking for more of a detailed update. What's the latest with the SD7 Plus opportunity and potential sales? Have you begun selling that device yet? Or is it something that's going to contribute to fourth quarter sales and meaningfully to 2024? Thanks.

We're now doing trials with the SD7 Plus. I think that it will not – I know that it will not contribute in Q4, but we do believe that it will contribute next year. We have multiple opportunities for that product. We think that it's going to be a very good revenue generator for us going into 2024 and beyond. It's the only product that is going to be approved on a carrier network that will allow you to do both Push-to-Talk and have body camera software on it. There is nothing else that's like that out there. So we think it's going to be a great product for us. It's not going to contribute this year, but we do believe that it will contribute in 2024.

Okay. Great. And can you just remind me, Marc, in terms of Real Time View and then the SD7 Plus with the body cam, are those two separate distinct recurring revenue opportunities? Is there any sort of a catch rate of Real Time View as well that you imagine with sales of devices?

We only started selling that Real Time View, and I think it proved itself unbelievably in one of our customers. I mean, just to the fact that it was on the news, they called it the Siyata Black Box. We might even change the name into the Siyata Black Box because it's just – it did such a great job in picking up videos in critical situation. And we think that it's going to be a great device for us to be selling together with our in-vehicle products going both in Q4, but also in going into 2024. The fact that we're able to get recurring revenue from that is also great. Again, we still don't have an exact number of what that's going to give us to the bottom line, what that recurring revenue is going to give us going forward. But as we sell more and more devices, we do expect to get recurring revenue from that product. Same thing with the body cam. So we work with third-party software companies. We have agreements with them that we get part of that recurring revenue, and that's how we're able to generate recurring revenue through our hardware. So both of those products, to your question, yes, they have a recurring revenue piece, and we're going to try to get as much as we can out of that so that we also have recurring revenue on a monthly basis.

Okay. Great. And then actually, just one more question, just because I think it would be helpful for investors and for analysts perspective as well, just to get a sense of – and kind of gives us a signal of your confidence in visibility. Do you imagine any time in the next couple of months, maybe when you report the fourth quarter in March, when can we expect some sort of high end – higher general guidance ranges for revenue sales? Do you think you have enough visibility to provide any guidance or even informal expectations by the time next quarter rolls around?

Yes. I think that by the end of the first quarter, we're going to have a very interesting first quarter just because it's going to be a quarter that sort of everything that we've been working on is going to come to fruition. And I think that by then, we might have a better understanding of what this stock product situation really means for us and sort of the pace that we're going to be on. That's sort of going to be a big part of our revenue. And I'm not going to say it's going to be 30% or 50%, but it's definitely going to be a meaningful part of our revenue. And I think that probably by the end of the first quarter, we should be able to give some kind of guidance. And again, it's going to be – I'm not going to say that it's 100% of that guidance because we're still not there. But as we get more and more traction in the market and as we understand better, the sales cycle, how long it takes for customers to make decisions, how long it takes for us to get the orders and to produce products and to really pick up pace, I think that we'll feel more comfortable giving guidance. Not that I want to. It's out right now, I still can't. But I think that at the end of the first quarter, we'll already have more visibility. And then hopefully, quarter after quarter, we'll be able to give better visibility going forward what we think it's going to be.

Okay, great. I appreciate the insight there and thanks for taking all my questions. I'll hop back in the queue.

Thank you, Jack. Thank you.

Your next question is coming from Brian Lantier with Zacks Small-Cap Research.

Good morning gentlemen. Sitting in for Tom Kerr today. Just wanted to circle back to the Real Time View. And maybe if you could give me a little bit of insight into the verticals that you're seeing the most interest from right now and where you think the greatest opportunities will be for that product?

Okay. So right now, we're very focused on EMS, and this is a great product for EMS. We're seeing a lot of success with ambulances, with other EMS-type vehicles. So that's certainly a vertical that we're very focused on. But also for commercial fleet, for security fleets, it's something that's very interesting. This gives the fleet manager a very high level of control to be able to know what's going on with that vehicle and actually see the vehicle remotely, whether from a control center or a command center or from their phone, they're able to put in certain information into their control centers so that if the driver is not driving correctly, if the driver goes out of a certain geo fence, it allows the fleet managers to really have much more control, but even more than that, it allows them to know what the driver is seeing when the driver is in certain areas. And that type of system is very desirable for a lot of fleet managers, they just want to have more control over their fleets. So that's sort of what we're doing. We're very cost effective. The device just works really, really well. You can put it on Android phones or on iOS, so you can really control it from any phone that's out there. So it's just – it's a very strong tool and we found that it's been working very well over the past two or three months. And therefore, we think that we'll be able to ramp up. Based on this initial customer that we have, we're now doing trials with multiple additional customers. One of them is a very, very large security company that moves around money. So you can imagine what type of customer that is. They want to be able to understand how – where their drivers are and what the drivers are seeing and see 360 degrees around the car, exactly what those trucks are – what they're seeing. So there's a lot of different applications for that. And by the way, this is not just good for the United States, it's certainly good for international markets, and we're showing this to all of the dealers that we deal with, both in the United States and in Europe and in other international markets because it's something that is very interesting for all different types of markets. So in that sense, it's good for the company because we're able to leverage the existing relationships that we have, just offering them a new product. Now we're obviously offering this together with our UV350, together with our VK7, SD7, so it's sort of part of our in-vehicle portfolio. So in that sense, it's a very good fit for what we're doing.

Good. Will there be a dedicated sales team for this product? Or will it be just a part of your suite of services?

Just a part of our suite of services. My sales team, they know how to sell in-vehicle products. We're already going after in-vehicle customers. So it's basically, we're able to leverage our existing sales team to be able to sell this additional products.

Okay. Great. And looking at the burn, where you sit today post the financing in late October, if you could comment a little bit on your current financing needs going into 2024?

Right. So I'm not going to say that we don't have to raise more capital because we will have to raise more capital at some point. We don't have to raise a lot of capital in our expectations, okay? If things work out the way that we hope they do and if we ramp up sales, the way that we expect to ramp up sales, we will have to raise another, I want to say, $2 million to $3 million to be able to support that growth. But it might not seem this way, but the company is not looking to raise capital every couple of months. We're not looking to do that. We're looking to raise enough capital to get us to breakeven profitability. And once we're there, we want to be off to the races. And we think that we're very close. We think that we're going to have very strong quarters going forward. And with those strong quarters, we'll have to raise another few million dollars to support them. But once we're there, we'll hopefully be able to grow the company just from our ongoing sales and profits and whatnot. And we think that we're going to get there in the coming quarters, we think that's very realistic.

Great. And just a housekeeping number to update my model, the total outstanding shares currently 3.7%, is that in the ballpark?

No. I think it's closer to 4.2%, but you have to look on our presentation to get the exact number, but I think it's around 4.2%.

Okay. All right. Great. Thank you, guys.

Thank you.

We are at our allotted time for this call. And I would now like to turn the call back to Marc for closing remarks.

Thank you very much for attending this call. We appreciate it. If you have any additional questions, you're welcome to reach out to us and send us an e-mail. And we look forward to keeping you updated as we progress. Thank you very much, and have a good day.

This concludes today's conference call. You may disconnect your phone lines at this time. Thank you for your participation.

Good morning, ladies and gentlemen and welcome to the Siyata Mobile Second Quarter 2023 Conference Call. [Operator Instructions] This call is being recorded on Thursday, August 15, 2023. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Thank you for joining the Siyata Mobile second quarter 2023 conference call. Today, I’m joined by our CEO, Marc Seelenfreund and we will be available for questions at the end of the presentation. During this call, management will make expressed and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we’re on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, the belief that the worst of the pandemic is behind us and that we will continue to see strong sales in all of our product lines and across our various markets and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company’s actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company’s annual report on Form 20-F for the year ended December 31, 2022, filed with the Securities and Exchange Commission. Now I’d like to turn the call over to Marc.

Thank you, Glenn. Good morning and thank you for joining the call. Before reviewing the second quarter financials, I want to first share with you that we previously announced two capital raises on June 27 and July 11, which generated a total of $4.55 million in gross proceeds for the company to support its working capital for growth. Then on August 8, Siyata announced that it effected a reverse stock split for 1 to 100 of its common shares to meet NASDAQ minimum bid price requirements. These transactions leave Siyata in a stronger position to grow the business in 2023 and beyond. Now in the second quarter of 2023 ended June 30, we are pleased to report that growth continued to accelerate with a 180% year-over-year increase in revenue compared to Q2 2022, on strengthening sales of our mission-critical SD7 handset and accessories. Adoption of our critical communication devices is expanding. Just as important, the increase in sales reaches beyond emergency services to increase school safety, healthcare, industrial and enterprise use cases among others. Given our performance in the first half of the year and our expanding sales pipeline, we are increasingly optimistic that 2023 will be a strong sales growth year for Siyata. Total revenue was $2.7 million in Q2 2023, compared to just under $1 million in Q2 2022, a 180% increase in revenue. Revenue from the U.S. was 84% of total revenue for the quarter compared to 49% in Q2 2022. Rugged device sales in Q2 2023 are approximately 10x higher than in Q2 2022, $2.1 million versus $220,000, an increase of approximately $1.9 million in the quarter directly attributed to sales of the SD7 handset. Gross margin percentage for Q2 2023 was 29.7% versus 11.2% in Q2 2022. Gross margin dollars increased from $109,000 to $804,000, a $695,000 positive variance, which is greater than 600% increase in gross margin dollars. SG&A expenses are $2.7 million in Q2 2023 versus $3 million in Q2 2022, a decrease of $275,000 or 9%. Adjusted EBITDA for Q2 2023 was negative $2 million compared to negative $3.4 million in Q2 2022, a $1.4 million positive variance in EBITDA, a 41% increase. Working capital as of June 30, 2023 was $3.7 million versus $1.6 million as of December 31, 2022, a $2.1 million increase in working capital. So far this year, for the 6 months ended June 30, 2023, total revenue was $4.5 million compared to $1.8 million in the same period of 2022, which is a positive variance of $2.7 million, a 150% increase. Gross margin dollars were $1.3 million in 2023 compared to $400,000 in the same period of 2022, which is a positive variance of $900,000, a 257% increase. Finally, the gross margin percentage was 29% in 2023 compared to 20% for the same period in 2022, a 45% improvement. Turning over to significant business highlights. We are pleased to report that Siyata has delivered on its plan to build and expand its potential customer base for the SD7 Handset and accessories portfolio. We previously announced that the SD7 has certified and approved for use of the growing list of North American carrier customers, including FirstNet and AT&T, Verizon, T Mobile, U.S. Cellular and international carrier customers, including Bell Mobility in Canada, Telstra, which is the largest wireless carrier in Australia; and KPN, which is based in the Netherlands. We also previously announced that we have expanded our distribution to include strategic resellers, including 2-way Direct and Tango in the United States and Intropia in Belgium. These companies will help us further grow sales of SD7 Handsets and related accessories in their respective markets. And we also announced that Mobile Tornado is the latest PTT app provider to ensure that SD7 Handset will work with its PTT app solution. This foundation of increased distribution is directly leading to many potential opportunities that could be of significant size. We have begun shipping products and an increasing number of verticals beyond our primary focus of first responders, including government, schools, hospitals, utilities, security companies, defense contractors, amusement parks and hotel resorts to name a few. I am pleased to report that, as we expected, the increase in the number of crucial concept trials by our customer base translated into volume growth for our SD7 which was the primary growth driver of our rugged devices and related accessories, increasing nearly 6x year-over-year to $3.5 million in the 6 months ending Q2 2023, compared to $590,000 in the 6 months ending Q2 2022. Having said that, this remains a process. Interest is increasing and demand is growing, but we continue to believe that we are just hitting the tip of the iceberg in a multibillion-dollar industry. We expect even larger volumes will follow as end customers grow to appreciate our unique offering of this new product categories. We also previously announced an exciting new product, the SD7+, which features a wide-angle camera coupled with 4G connectivity that will have traditional body camera functionality as well as real-time situational and traditional tracking capabilities. The SD7+ will be powered with Visual Labs’ innovative body camera software. Visual Labs is a highly respected software company and developer of Android-based body cam software. The company provides the software to public safety, private security and other customers throughout the United States and internationally. As public safety companies include town marshals, city police departments, county sheriff offices, wildlife and other state agencies and federal customers. We expect the SD7+ with body camera capabilities will begin shipping in the coming months. And finally, we recently expanded our sales team by hiring Doug Clark, who previously was the Assistant Vice President at AT&T’s FirstNet. In the brief time that Doug has been on board with Siyata, he has already helped us to develop new sales opportunities. Based on his career experience and positive reputation with our customers and counter partners, and we are excited to have a person of his caliber on our team. Now I would like to pass the line back to Glenn, who will discuss some of the industry trends and market dynamics, that are benefiting our business and an update on our product categories.

Thank you, Marc. North American wireless carriers have recently delivered mixed results with some carriers beating on sales and earnings and raising profit forecasts to other carriers with in line or better than forecast postpaid net additions, while other carriers shifted to cost cutting to address rising corporate costs and rising interest rates. Importantly, in July of 2023, FirstNet announced it supports more than 5 million connections to more than 26,000 public safety agencies, a gain of about 1,000 agencies during the second quarter of 2023 from the figures they released 3 months earlier. During the second quarter of 2023, FirstNet added 350,000 connections. Siyata works closely with FirstNet and their growth is further evidence that customers are moving towards push-to-talk over cellular solutions in the United States. Looking at our sales funnel, we continue to see strong opportunities in each of our three product categories. First, in our rugged handset product category, we have increased our shipments of the SD7 PTT handset that supports mission-critical push-to-talk to North American and international wireless carriers. We displayed this handset at several trade shows during and after the quarter, including the Critical Communications World Show in Helsinki in May, the NASRO National School Safety Conference in Indianapolis in June and just last week at the APCO 2023 Show in Nashville, Tennessee. The increasing sales, the quantity of new customer trials, the customer feedback at the trade shows and the direct engagement from senior personnel within the wireless carriers have all been strong as these wireless carriers aim to capture new customers who have been using traditional LMR or 2-way radios. We’re also seeing strong customer interest in our VK7 vehicle kit that works with our SD7 PTT handset. Today, we’re active with AT&T, FirstNet, Verizon, T-Mobile, U.S. Cellular, Bell mobility in North America, with Telstra in Australia and KPN in the Netherlands as well as with multiple dealers and distributors in the U.S. and international markets. Our objective remains to expand our launch with additional North American and international carriers and with additional PTT application companies in the future. We’ve seen significant SD7 sales to first responders, schools, healthcare facilities, resorts, municipalities and more. Large U.S. school districts are replacing legacy 2-way radios by purchasing SD7 Handsets to use throughout the schools they serve to help keep their students and staff safe. We anticipate more school districts following suit in the current and coming quarters. Recently, we announced a large purchase order for $1.4 million of our SD7 Handset from a single customer. As a result of all SD7 market activity, we’re confident that this will translate into multiple thousands of SD7 Handsets sold throughout the balance of 2023 and in 2024, and we look forward to adding sales of the SD7+ with body camera capabilities in the coming months. Secondly, in our in-vehicle devices category, we continue to sell through our UV350 in-vehicle device with customers in North America and internationally. During the reporting period, we sold UV350 to one of the largest waste management companies in North America and believe this will be the first of many orders from this customer. We are experiencing increasing demand for our unique VK7 vehicle kit, which is the partner product to our SD7 Handset. Several customers in the U.S., including some with yellow school buses, transit vehicles, and snowplows are installing VK7 vehicle kits into their vehicles so that the SD7 Handset can be easily used in the vehicle kit while their staff are in their vehicles. Also in our in-vehicle product category, we received our first order, which was for $1.2 million for a new product called Real Time View, an integrated advanced video monitoring system for emergency management service or EMS providers in their fleet vehicles. And thirdly, in our cellular booster product category. We saw somewhat reduced but still steady demand for cellular boosters throughout North America. And now I will hand the line back to Marc for closing remarks.

Thank you, Glenn. I would like to take this opportunity to thank our employees for their commitment. They’ve worked tirelessly to build the company we have today. I would also like to acknowledge and thank our investors who stood by our company despite the turbulent environment. Overall, we are very pleased with the growing acceptance by our customers on our truly unique disruptive push-to-talk solutions and we expect, based on what we are seeing today, growth in our various product categories with especially strong growth coming from our rugged handset PTT product category. We are just beginning to see the rapid adoption of our disruptive solutions and the displacement of land mobile radio as push-to-talk over cellular continues to progress. This should drive meaningful growth for our innovative products. We stand by our previously stated goals of new customer wins, new and existing carrier launches and continuous upgrade to our product portfolio and ultimately, strong growth with the goal of profitability. We will file our second quarter 2023 financial results with the SEC on Form 6-K and urge our listeners to access them from the SEC’s website, search for Siyata Mobile. That concludes our formal remarks. With that, operator, kindly open the call to questions. Thank you.

[Operator Instructions] Your first question is coming from Jack Vander Aarde from Maxim Group. Your line is live.

Okay. Great. I appreciate the update, guys. Just for clarity, Marc, let me start with the question, just so I understand. There are some restated financials. I think it was just related to one item. It’s about $2.7 million change in fair value to a warrant that impacted the first quarter. Is that the only – is it the main change in the restatements?

Yes. It’s the main change. It’s a non-cash issue and it was just the way that our accountant or our auditor viewed the way that we had looked at those warrants in Q1. We actually work with Grant Thornton in Q1 to do a review of those warrants but the auditor thought that we should be handling it differently. And therefore, we stated that specific valuation of those warrants. Correct. That’s the only issue.

Okay. Good. That’s helpful. And then if I just move forward here, I do notice that you have a – it looks like a bank loan outstanding of just about $700,000, which is related to our recently obtained line of credit factoring agreement to your North America receivables. This was a new development. I wasn’t aware of before. What does this do for you exactly? Does this help boost your sales?

Yes. Yes, this is a great development because it’s – it allows us to have factor in and to factor our customers. All of our customers are very high-level rated customers, and it allows us to factor them. We entered into an agreement with a factoring facility that allows us to factor most of our customers and that’s what we’re doing. And we hope that, that number will only grow. It’s not necessarily a bank loan. It’s a factor company loan, and it’s against receivables from specific invoices that we are giving to customers and we think that, that number is only growing. It’s a good thing because it’s just assisting our cash flow in a non-dilutive way. So, it’s a very good thing for the company. And just, Jack, on that note, we are looking to do additional ways of financing with that dilution. I can tell you that we are now looking at doing LC financing for our purchasing. So, between LC financing and factoring, we think that, that will be very, very helpful for the company for our working capital to allow us to grow the company on our growing sales of our products.

Okay. Got it. Understood. And then let me just look at the top line. You did $2.7 million of sales in the second quarter. So, significant growth year-over-year, obviously, congrats on that, a big growth sequentially as well, so that’s great to see. Now, if I try to look forward before looking here, I see the $2.6 million last year in the third quarter. So, as we look at – we are halfway through the third quarter this year now, do you expect year-over-year growth in revenue – year-over-year growth and sequential growth in the third quarter? Is it going to be lumpy? Just on any line of sight would be helpful.

It’s very hard for us to give projections just because this is – the sales are really ramping up now. And I don’t want to say it’s new to us, but it’s relatively new to us getting this level of sales to the carriers and it’s going really in a great direction for the company. We do hope and our goal is to definitely have double-digit growth on a year basis for sure. I can’t tell you what’s going to be in Q3 or what’s going to be in Q4. But from what we are seeing, we are going to have substantial growth in the coming quarters just based on orders that we have coming in, partnerships that we have already signed. And we think that it’s going to be a very different company in the coming quarters, that the same way that you have seen in the first half of the year, we think that that’s going to continue going forward.

Okay. Got it. And there are comments, I guess for – I think it was Glenn was providing comments in his prepared remarks about AT&T, FirstNet, adding – it’s over 300,000 new subscribers, I believe. How do you – who are those subscribers signing up with and what devices are they signing up with? And how do you start to get a larger piece of that with these new FirstNet subscribers turning on?

So, the more that FirstNet is lighting up SIM cards, that’s good for us because that’s one of our main customers. They are working right now with companies like Samsung and Apple and a company called Sonim Technologies. Those are probably the three main vendors that they are working with right now. But we think that we have something which is very unique. We are the only vendor that has a device that looks and feels like a radio, but it’s a cellular-based device. Everybody else is selling higher-end smartphone devices. We are the most cost-effective mission-critical push-to-talk device available at FirstNet today, and we see that traction coming in from FirstNet, both in this quarter and the sales that we had in Q2, and we see that coming going forward also. So, as I have said, as FirstNet grows, that’s a good thing for us. And our market is clearly much bigger than just first responders. FirstNet includes schools, it includes government, it includes military contractors, it includes airlines. So, it’s not just first responders on FirstNet that we are working with. It includes utility. There is a lot of various verticals that we are going after, and we believe that it’s a very, very large-scale market. And the more that we get traction, it’s sort of business brings business, the more schools we get, the more schools we can sign up because we have reference customers. The more utilities we get, the more utilities we can sign up because we have reference customers. And we just see that momentum building, and it’s a very exciting time for the company.

Great. Okay. And then just in terms of big needle movers, I know this is kind of a domino effect and you are spreading brand awareness, obviously, these are all great additives. Do you have an expectations or any visibility into – I am sure you are working behind the SIM card, with the new sales hires. But is there any – any just sense of when you might see a large volume order arrangement in the near future?

So, there are a few very large scale opportunities that we are working with for large school districts, large corporations, just corporations that employ tens of thousands of people, but those are single opportunities that are not even going to get sold in one quarter. If we got a large school district that would need 20,000 units, that would probably spread over two quarters or three quarters, right. So, it’s not that we are going to get one order for 20,000 units, we will get an order for a few thousand units, 6,000 units or 7,000 units over two quarters or three quarters because they have to roll it out throughout the school district, just as an example. But there are multiple opportunities like that, that we are working on. Having said that, we are getting a lot of a few hundred thousand dollar orders, and we are not necessarily putting out PRs in every single order. We can get $50,000 orders, $20,000 orders and $300,000 order. Some of them we put the PRs out, on some of them we don’t. And we are also very happy just continue filling the bucket with these smaller drops because they add up. So, we are seeing both large-scale opportunities. Obviously, those take longer, but we do have trials with multiple large-scale opportunities, and we have ongoing sales to smaller opportunities of hundreds of thousands of dollars or even larger than that.

Okay. Great. Well, I appreciate the answers to the questions and great to see the growth. I hope it continues. Thanks.

Thanks. If I could just add one more thing, Jack. Look at the market cap of the company right now, we are around a $7 million market cap. So again, we think that we are going after a major market. We already have our customers signed up, the major cellular carriers in the United States. And all of that is that $7 million market cap. And that’s why we feel that we are at a real inflection point for the company and for the shareholders.

Understood. Thanks Marc.

Thank you.

Thank you. Your next question is coming from Tom Kerr from Zacks Investment Research. Your line is live.

Good morning guys. A couple of quick ones. Can you provide further color on the European markets and those distribution channels? Is that gained traction yet, or is that more of a 2024 type story?

That’s definitely a Glenn question.

Hey Tom. Yes. Thanks for the question. I would say things are growing in Europe, not quite as quickly as in North America, simply because the adoption of push-to-talk over cellular is trailing in Europe relative to what’s happening here in North America. But we see – we are having good conversations with multiple distributors, multiple carriers there. And so we do expect that, that will follow, albeit just a little bit later than what we are experiencing in the North America market.

Okay. Great. And a specific question on the SD7+, does that still appeal to all of the verticals you guys talk about, or is it more narrow towards law enforcement or would – but all of the verticals healthcare, education benefit from the SD7+, right?

So, we are specifically starting to file some in the education vertical for security within education within schools. So, that security, law enforcement, wildlife, there is hospitals, there is a lot of different verticals that we are going after with this. Not necessarily leisure, which is another area that we started going into now, but there are a lot of large-scale verticals that we are doing trials with right now with the SD7+. And I will give you an example, we have one school district, which has taken from us over 1,000 units of the SD7, they are also going to be probably taking a few hundred SD7+s for various security people that are related to that school district. So, it is related for sure.

Okay. Great. And the – just one last financial question, the share count is – has it changed much from the issued statement – was 185.4 million or 1.85 split, is that the current share count as of today?

Yes.

Okay. Great. Thanks. Alright. That’s all I have for this morning. Thank you.

Thank you very much.

Thank you. That completes our Q&A session. Everyone, this concludes today’s event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Good morning, ladies and gentlemen, and welcome to the Siyata Mobile Q4 2022 and Q1 2023 Conference Call. At this time all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. This call is being recorded on Thursday, May 25, 2023. I would now like to turn the conference over to Daniel Kim, Vice President of Corporate Development. Please go ahead.

Thank you for joining the Siyata Mobile fourth quarter 2022 and first quarter 2023 conference call. Today, I'm joined by our CEO, Marc Seelenfreund; and our VP of International Sales, Glenn Kennedy. We will all be available for questions at the end of the presentation. During this call, management will make express and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal Securities Laws. These forward-looking statements include, but are not limited to the statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters. The belief that the worst of the pandemic is behind us and that we will continue to see strong sales in all of our product lines across our various markets and the timing of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's annual report on Form 20-F for the year ended December 31, 2022, filed with the Securities and Exchange Commission on May 15, 2023, as subsequently amended. I will now like to turn the call over to Marc.

Thank you, Daniel. Good morning and thank you for joining the call. Before we get into the financial results, I want to explain why this earnings call is later than it usually is and why we are combining two quarters into one earnings call. We selected a new U.S. audit firm last year that was subsequently acquired by another audit firm. We parted due to a regulatory issue in Canada that was not connected to Siyata or its financials. We then selected another audit firm for the year ended December 31, 2022, one that had previously audited our Siyata subsidiary in Israel. We issued a Form 6-K to notify investors that the SEC approved the filing extension to May 15 to give our new audit firm more time to complete the audit work. The need to change our auditor was unexpected and not something that we foresee happening again. And now, to the business results. We are pleased to report year-over-year revenue growth for both the fourth quarter of 2022 and the first quarter of 2023 when compared to the prior year periods. This improved revenue performance was driven primarily by sales of our SD7 rugged push-to-talk handset, which began shipping in Q2 2020. Customer trials that occurred in Q3 and Q4 of 2022 resulted in purchase orders in Q4 2022 and in Q1 2023. We hope to deliver continued additional sales growth from this current quarter and onwards. Now I will discuss our financial results for the fourth quarter ended December 31, 2022. Revenue for the three months ended December 31, 2022 and 2021 were $2.1 million and $1.9 million, respectively. This positive variance of $174,000 is due mainly to sales of the SD7 in Q4 2022 of $985,000, offset by the decrease in sales of the legacy products and boosters of $810,000. Cost of sales for the three months ended December 31, 2022 and 2021 was $1.9 million and $1.8 million, respectively. The gross margin for the three months ended 2022 and 2021 was $170,000 and $165,000, respectively, a small positive variance in gross margin of $5,000. This reduced margin percentage for the quarter relates to the impact of the sale of legacy products and reduced margins. For the three months ended December 31, 2022 and 2021, adjusted EBITDA was negative $5 million and negative $2.7 million respectively, a negative variance of $2.3 million, which was caused by an increase in SG&A of $1.3 million and $1 million variance due to an inventory impairment and loss from water damage in 2022. I want to note that this inventory was insured, a claim has been filed and we await the determination of the coverage amount from the insurer. Now I will discuss our financial results for the full fiscal 2022 year which ended on December 31, 2022. Revenue for the year were $6.5 million compared to $7.5 million for the year ended December 31, 2021. This decrease of just over $1 million is due mainly to a decrease in the sale of boosters by $1.7 million, offset by $600,000 in the sale of rugged devices as a result of the launching of the SD7 in 2022. Cost of sales for the 12 months ended December 31, 2022 was $5.1 million compared to $5.7 million in 2021. Gross margin for the year ended December 31, 2022 and 2021 was $1.4 million and $1.9 million, respectively, a negative variance in gross margin of $500,000, a 3.4% decrease in gross margin percentage. This relates to the sale of rugged and in-vehicle cellular devices at lower margins compared to the sale of industrial boosters in the USA marketplace at a slightly higher margin. For the year ended December 31, 2022, adjusted EBITDA was negative $12.5 million versus negative $12.4 million the prior year, a minimum variance of just over $100,000. Now I will discuss our financial results for the first quarter ended March 31, 2023, and then we'll conclude my remarks with our outlook. Total revenues were $1.8 million in Q1 2023 compared to $800,000 in Q1 2020, 116% increase in revenue. Revenue from the U.S. were 60% of total revenues for the quarter compared to 29% in Q1 2022. Rugged device sales in Q1 2023 are up 286% over Q1 2022, $1.4 million versus $400,000, an increase of $1 million this quarter mostly attributed to $800,000 of sales of the SD7 headset. Gross margin percentage for Q1 2023 was 27.5% versus 30.6% in Q1 2022. Gross margin dollars increased from $255,000 to $497,000, a $242,000 positive variance which is a 95% increase in gross margin dollars. SG&A expenses were $2.4 million versus $2.7 million Q1 2022, a decrease of $300,000. Adjusted EBITDA for Q1 2023 was negative $1.9 million compared to a negative $2.6 million, $700,000 positive variance in EBITDA of 27% increase. Working capital as of March 31, 2023 was $4.2 million versus $1.6 million as of December 31, 2022, a $2.6 million increase in working capital. During the first quarter of 2023, Siyata raised $3.6 million in capital through warrant exercises. Turning over to significant business highlights, we are pleased to report that Siyata has delivered on its plan to build and expand its potential customers for the SD7. We previously announced that the SD7 was certified and approved for use with a growing list of North American carrier customers, including FirstNet, AT&T, Verizon, T Mobile, U.S. Cellular and international carrier customers, including Dell Mobility in Canada, Telstra, which is the largest wireless carrier in Australia, and recently we announced APN, which is based in the Netherlands. We also announced recently that we have expanded our distribution to increase strategic resellers including Two Way Direct in the United States, RadioTrader in the U.K. and Entropia in the Netherlands. These companies will help us further grow sales of SD7 handsets and related accessories in their respective markets. This foundation of increased distribution is directly leading to many potential opportunities that could be of significant size. We have begun shipping products in an increasing number of verticals beyond our primary focus of first responders, including governments, schools, hospitals, utilities, security companies, defense contractors, amusement parks and the hotel resort to name just a few. I am pleased to report that as we expected, the increase in the number of verticals and the size of our customer base translated into volume growth for our SD7, which was the primary growth driver of our rugged devices and related accessories increasing 19% year-over-year to $3.9 million in 2022 compared to 2021. Having said that, let me be clear that this is a process. Interest is increasing and demand is growing, but we are just hitting the tip of the iceberg in a multibillion dollar industry. We expect larger volumes will follow as end customers grow to appreciate our unique offering in this new product category. We also announced an exciting new product, the SD7+ which features a wide angle camera, equipped with 4G connectivity that will have traditional body camera functionality as well as real time situational and traditional tracking capabilities. The SD7+ will be powered with Visual Labs innovative body camera software. Visual Labs is a highly respected software company and developer of Android based body cam and dash cam software. The company provides its software to public safety, private security and other customers throughout the United States and internationally. Its public safety customers include town marshals, city police departments, country service offices, wildlife, and other state agencies and federal customers. We expect the SD7+ with body camera will begin shipping later in 2023. And finally, we recently extended our sales team by hiring two respective industries veterans who have experience working for wireless carriers and understand well how we need to support the wireless carrier sales teams to maximize our revenue through this important distribution channel for Siyata. Now, I would like to pass the line back to Daniel, who will discuss some of the industry trends that are benefiting our business.

Thank you, Marc. In April 2023, FirstNet announced it supports more than 4.7 million connections to more than 25,000 public safety agencies, a gain of about 1,000 agencies during the first quarter of 2023 from the figures released in the end of 2022. During the first quarter of 2023, FirstNet added 300,000 connections. Siyata works closely with FirstNet, which is the leading PTT provider currently in the U.S. and their growth is evidence that the customers are moving towards push-to-talk over cellular solutions in the U.S. And with that, I'd like to pass the line to Glenn.

Thank you, Daniel. Looking at our sales funnel, we continue to see strong opportunities in each of our three product categories. First in our rugged handset product category. We have increased our shipments of the SD7 PTT handset that supports mission critical push-to-talk or MCPTT to North American and international wireless carriers. We displayed this handset at several trade shows during and after the Q1 2023 period, including at the end of March at the International Wireless Communications Expedition or the IWCE show in Las Vegas, Nevada and this week at the Critical Communications World Show in Helsinki, Finland. The initial sales, the quantity of new customer trials, the customer feedback at the trade shows and the direct engagement from senior personnel within the wireless carriers have all been strong as these wireless carriers aim to capture new customers who has been using traditional LMR or two way radios. We're also seeing strong customer interest in our VK7 vehicle kit that works with our SD7 PTT handset. Today, we're active with AT&T, FirstNet, Verizon T-Mobile, U.S. Cellular and Dell Mobility in North America and with Telstra in Australia and KPN in the Netherlands. Our objective remains to expand our launch with additional North American and international carriers and with additional PTT application companies later this year. We have seen significant SD7 sales to first responders, schools, healthcare facilities, resorts, municipalities and more. Recently, we announced two sales transactions of our SD7 handset with large U.S. school districts that are replacing legacy two way radios by purchasing SD7 handsets to use throughout the schools that they serve in order to keep their students and staff safe. We anticipate more school districts following suit in the current and coming quarters. And as a result of all SD7 market activity, we're confident that this will translate into multiple thousands of SD7 handsets sold throughout the balance of 2023. And we look forward to adding sales of the SD7+ with body camera later this year. Secondly, in our in-vehicle devices category, we continue to sell through our UV350 in-vehicle device with customers in North America and internationally. During the reporting period, we shipped additional UV350 devices into an existing large wireless carrier customer in the Middle East, which launched and ordered this device initially three years ago and has continued to order additional UV350 devices for its first responder customer vehicles. We are also experiencing increasing demand for our unique VK7 vehicle kit, which is a partner product to our SD7 handset. Several customers in the U.S., including some with yellow school buses and snow plows are installing VK7 vehicle kits into those vehicles so that the SD7 handset can be easily used in the vehicle kit while their staff are in their vehicles. And thirdly, in our cellular booster product category, we saw somewhat reduced but still steady demand for cellular boosters throughout North America. And now I will hand the line back to Marc for closing remarks.

Thanks, Glenn. I would like to take this opportunity to thank our employees for their commitment. They've worked tirelessly to build the company that we have today. I would also like to acknowledge and thank our investors who stood by our company despite the turbulent environment. Overall, we are very pleased with the growing acceptance by our customers of our truly unique disruptive push-to-talk solutions and we expect based on what we are seeing today, growth in our various product categories with a special growth coming from our rugged handset product categories. We are just beginning to see the rapid adoption of our disruptive solution and as the displacement of land mobile radio by push-to-talk over cellular continues to progress. This should drive meaningful growth in our innovative products. We stand by our previously stated goals of new customer wins, new and existing carrier launches, continuous upgrades to our product portfolio and ultimately strong growth in the goal of profitability. We will file our fourth quarter 2022 and first quarter 2023 financial results with the SEC on a Form 6-K and urge our listeners to access them from the SEC's website, search for Siyata Mobile. That concludes our formal remarks. With that, operator, kindly open the call to questions.

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. The first question comes from Tom Kerr of Zacks Investment Research. Please go ahead.

Good morning, guys.

Hi. Good morning.

Can you talk about sort of the school vertical a little bit and the sale for that. Is it different than the traditional process? Do you approach them directly and then they purchase from distributor? Or kind of how does that work out in that vertical?

Okay. That's a great question, because I've emphasized in a lot of our press releases that we view that vertical as one of our largest verticals. There is over 100,000 schools in the United States, and there's millions of teachers. And we've partnered with a company called CrisisGo, who has very unique software that together with them, we're able to give a package of a device that has both software and hardware that you can, A, have an SOS button, which is in the CrisisGo software, and you can also do push-to-talk over cellular. So if until now, teachers have only had a panic button that basically doesn't allow you to have voice and to speak to somebody, you can just hit that panic button and people would know that there's a problem, now you can actually speak to the security people in the school, the management of the school, police, fire, ambulance, and you can have a radio-like functionality given to teachers in schools. And we think that, that's really going to be one of our largest verticals, if not the largest one. We've already announced a few deals with some schools. We have many, many schools that we're now engaged with. And I think that a lot of them were going to be able to turn into sales. Some of them are very large scale, like multimillion dollar potential deals. And we think that it's a very unique solution for schools, and we want to gain as much traction in United States with this offering together with CrisisGo and either on our own or together with CrisisGo. So that's something that is across the industry in the sense that nobody else has anything like this that we've seen until now and all the cellular carriers that we've launched with in North America are now offering this product to various schools across the United States. So we're doing this both with T-Mobile and with Verizon, AT&T and FirstNet. So we think that this is going to be a very large potential for us.

That sounds great. Thanks. A couple of more questions. And on the SD7+, is there a different unit selling price or product margin profile than the traditional SD7?

So we think that it's going to have a higher margin profile. We don't know until we launch, but we believe that it will have a higher margin profile. Another thing is that we're going to be able to record recurring revenue from that, which is very unique. That's something that we're not able to get until now. With SD7, we have very pretty small recurring revenue from SD7 from various software packages that we're offering. But we think that it will be more substantial with the SD7+. And we'll be able to compete with large companies like Motorola and Axon, who also offer body cams. They're the leaders in that market. We think that we have a very unique solution because our device is MCPTT. It's on the FirstNet network or on the Verizon network. So it's cellular based. It's real-time streaming. It also has push-to-talk over cellular, which the other products don't have. So we think that our offering is going to be very unique compared to the other companies in this market, and we expect to launch it this year. We think it will be a very interesting product for first responders, security companies, school security and the rest. And we already have discussions with multiple customers for this product, and we hope to launch it in the second half of this year.

That sounds great. One quick financial question, sort of the sales and marketing expenses and the G&A expense line that was in the first quarter. Is that a good quarterly run rate? Or will that increase throughout the year as you grow the business?

So my goal is not to hire a lot of people in the company to keep the company small. We have 26 employees right now at the company. And we leverage the sales forces at the cellular carriers. So we don't have to hire a lot of people to be able to get to customers. We leverage the sales forces at AT&T and T-Mobile and Verizon . So I don't expect that the SG&A is going to go up a lot. We're going to try to keep the company as lean as possible. And if you noticed the SG&A has actually gone down in the first quarter compared to last year. And anything that we can do to lower that, we'll do. And we're not looking to hire a much larger staff than what we have right now. All of the main positions in the company are filled. We might hire another few salespeople and support people and that's it. And with that, we think that we'll be able to get to much, much higher sales than what we've seen until now.

Great. Thanks. I’ll jump back in the queue.

Thank you.

Thank you. The next question comes from Jack Vander Aarde of Maxim Group. Please go ahead.

Okay. Great. Good morning, guys. Marc, I appreciate the update. Good to see what looks like four consecutive quarters of year-over-year revenue growth. Thanks for taking my questions. So Marc, over the past year as you've kind of alluded to on the call as well, you've had your flagship devices approved on all the major U.S. wireless carriers networks, AT&T, FirstNet, Verizon, U.S. Cellular, T-Mobile. Can you speak in general maybe more about the size and the growth of your sales pipeline and opportunities with regard to the major U.S. carriers, which -- they could be big needle movers. So that's why I just want to focus on that, if there's any color you can provide.

Yes. So I can't give you exact guidance because we're still early in the game, but I can tell you that now that we've passed the point that we've actually launched the products with the carriers, we've trained their salespeople. We're out in the field, meeting with customers together with our salespeople. That's why we're so confident that we're going to have very strong quarters going forward, simply because we're sort of through the process with the carriers and already with initial customers of theirs, and they bring to us customers on a weekly basis. And what's beautiful about it is that, we're getting customers from every single one of the carriers. They're different customers. Some schools are customers of T-Mobile, others are of AT&T, others are of U.S. Cellular, right? So we're seeing it across the board. They're all bringing us various customers from their customer base, and we're working with them to close those customers and make sure that they're taking our product and not looking to take something else. So we're very bullish on going forward this year. We think that we're going to have much better quarters than what we had last year. And we think that we'll be able to really ramp up our sales, simply because we're not focused right now on launching products, we're really just focused on selling products and ramping up sales, and that's really the focus of the company today.

Okay. Great. That's helpful. And then as a follow-up, in general, maybe in terms of some of the larger deals you're pursuing. Can you provide some more color on the competitive bake-off dynamic? Who are you guys actually competing against and seeing the most at the deal table for U.S. first responder end customers in the current market? Or is that something you guys aren't privy to that's not really disclosed to you?

No, no, we are privy to it. And we see that there are companies like (ph) and Samsung, I'd say that they are our -- maybe also Kyocera, those are probably our three main competitors. They don't really offer the same thing because they're all offering smartphones, right? So they compete with each other in the rugged smartphone push-to-talk category. And we're sort of going at a different -- it's coming from a different angle. We're coming with a device that is a radio upgrade. It just looks like a radio. It feels like a radio. And by the way, it's much less expensive, right? So we're usually competing with devices that are above $500, above $600, and we are around $400 or less, okay? So in that sense, we think that we have something that's very unique. We don't have any direct competitor that's offering a radio-like device through the carriers. Motorola has one device, which is a radio like device, but that is only offered by Motorola. It's not offered by the carriers. And in our view, it's much easier for a security guard or for a teacher to take a device, put it on channel two and hit a button and speak as opposed to going into an app and going into a smartphone and maybe they're Apple users and this is an Android device and trying to figure out how to use the app. We think that what we're offering in the SD7 is much more intuitive and it's a real upgrade from two way radio, and that's what we're trying to do, take away the two way radio and give them a push-to-talk device, which feels and looks like a radio. And we think that we're the only ones that are doing this right now, and that's unique. And that's the reason that all of these large-scale carriers are even working with us, right? In other words, we're a small company, and everybody on the call knows that. And the only reason that company's multibillion-dollar cellular (ph) are working with us is because we have something that is very unique. We think that our technology is not for other companies to go after, and we're very proud of it. And we think that that's really what's going to help us drive our sales because we're offering something that is very unique, and there's a real need in the market to upgrade from two way radio to talk over cellular with a radio type device.

Excellent. Okay. That's actually great color. I appreciate that. And my next question would be, just given the current stock price. I'm sure investors on the call want to know if you could provide an update on your plan to just remain compliant with the NASDAQ. And it's great to see you have no debt any longer as well. So hoping you could provide additional color on your liquidity levels and cash runway as well. Thanks.

So we announced that we started doing factoring and that is obviously helping our cash flow, because we have sales and we have inventory. And you can see that we had inventory at the end of the quarter. We'll sell through that inventory. And that's really what's helping our cash flow, the cash we had in the bank and the inventory that we have. We will need to raise more money. I'm not going to say that we're not going to have to raise more money. We're not going to, in my opinion, have to raise a lot of money. We're not going to have to raise tens of millions of dollars to be able to become profitable. We have to raise a few more million dollars to be able to get to profitability. That's our goal. And on the stock price specifically, we are going to have to do a stock split at some point. Our goal is to do it at as low of a multiple as possible, of course. But yes, we will have to do that to become compliant. And our goal is to do that stock split sometime in the next few months so that we can be compliant again on NASDAQ. But obviously, that's what we're going to do to make sure that we're compliant.

Okay. Got it. And it sounds like qualitatively, the business is ramping up, the growth inflection looks like it's here. I alluded to when I started my prepared questions that you've had four consecutive quarters of year-over-year growth and it looks like its accelerating. So that's good to see. And then...

Our goal, Jack, is to have between double to triple-digit growth in the coming quarters of 2023, and we think that that's very achievable just because we've seen the pipeline that we're going into. And like I said, we're very bullish on the business and on our opportunities, and we think that we'll really be able to grow very rapidly over the next couple of quarters and beyond.

Excellent. And then if I could just follow up to one more thing, in terms of the pipeline. Maybe Glenn can chime in on this as well. But in the press release it’s mentioned you guys have had many successful customer trials that were initiated in the second half of 2022 and you're experiencing a step-up in purchase orders. Can you just provide me some extra color on how many trials, like, how many different customers, the location of the customers? And are the verticals outside of schools and luxury resorts like that multibillion Bahamas hotel, just if you could give more color on the actual end applications of those trials and the number of customers that would be interesting to hear.

Sure. Glenn, do you want to go for it?

Yes, I'll start and then maybe, Marc, you can add. Jack, I would say that the number of trials, I can't give you an exact number. We have invested significantly in a pool along with the wireless carriers, a pool of demo devices that they leverage whenever a customer is asking for trials. So a typical trial would involve two or three, sometimes four devices that they would deploy within an organization, customers organization. And absolutely, the breadth of vertical markets is far greater than only schools, but definitely, I would say schools is probably the primary one. It would also include first responder organizations, that would include on-site warehouse, manufacturing type facilities, construction companies, field service, a whole variety of vertical market security companies, I didn't mention them. So a wide variety and it would be multiple simultaneous trials. Some of the trials only need to last a very short time, they're just wanting to test the functionality and confirm, verify that it is similar functionality and works well that they have the coverage that they need. Other customers, they're going to be looking. And typically, it's the larger ones, they're going to need more time, more time at the trial stage, more time in the budgeting and the planning stages and so forth. So our trials or the presale process can really vary in the length of .

Got you.

Jack, I apologize for the background noise. I mentioned here in Helsinki, Finland right now. We're just wrapping up our communication -- Critical Communications World Trade Show. So if you're hearing noise, that's what's going.

Well, Glenn, I'd like to double fit, you're double fitting with -- you're negotiating trade shows while you're on the earnings call.

I told you, we try to keep it mean and lean, Jack. But if I could just add, our main focus is definitely North America. When I say North America, not just the United States, because we're also very focused on Canada. And just to add on to what Glenn said, the verticals are all over the map. And we're, as far as we're concerned, I don't care for selling to a hospital or a school or a first responder, they're all very relevant. They are all similar customers for us. And as we're working with the cellular carriers, they have staff to go after various verticals. They have staff that goes after health care. They have staff that goes after education. They have staff that goes after construction. So we work with the cellular carriers, our salespeople work with the cellular carriers to be able to get to various customers in different verticals. And just we didn't even mention health care. We've already done a few hospitals in the United States, and we think that's also going to be a very, very large scale opportunity for us. Hospitals using our device as their communication protocol as opposed to using their private phones or using a Samsung rugged phone, which costs more than doubled the price. So in that sense, we think that we're going after a very large-scale market. We're leveraging the cellular carriers. And we just want to continue doing what we're doing and ramp up sales as aggressively as possible going forward.

Okay. Great. I really appreciate the extra color Marc and Glenn and Dan. That’s it from I’ll hop back in the queue.

Thank you very much.

Thank you. The next question comes from Tom Kerr, Zacks Investment Research. Please go ahead.

Hi, guys. Two quick ones. What was the amount of capital raised from the warrants in the second quarter? It glitched out when you guys said that.

$3.6 million.

Okay. And just a big picture question on the sales process with the carriers. And I forget how this works, the -- are they buying inventory? Or is this sort of a just-in-time basis where they put in orders as they sell? How does that process works?

So it varies. For some customers, they are purchasing inventory. And for some, it's just in time. In other words, they get the customer and then they buy the inventory from us. A lot of the times, we're working with their master distributors, right? So we're working with a master distributor of Verizon or a master distributor of AT&T and selling to them. But as time goes on, then also the master distributors are starting to buy inventory for themselves because they want to make sure they know the customers that they're going to be going after and they want to make sure that they have inventories. So as time goes on, we think that we'll be selling more and more inventory to the distributors and to the carriers that they'll also hold on themselves. So it's sort of -- we're doing both right now. And then we think as time goes on, we'll be selling more and more for their inventory so that they can be prepared to be able to sell to their customers.

Great. That’s all I have for today. Thank you

Thank you.

Thank you. There are no further questions. I will turn the call back to Marc Seelenfreund for closing remarks.

I just want to thank everybody for joining the call. You're all more than welcome to reach out to us. And if you have any additional questions, you can send me an e-mail at [email protected]. That's Marc with a C. And we look forward to updating you in the future with more good news. Thank you very much, and have a good day. .

Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.