LeddarTech (LDTCF) Registration Filing summary

Company overview and business model

• Develops AI-based low-level sensor fusion and perception software for ADAS and autonomous driving, targeting OEMs, Tier 1, and Tier 2 suppliers.

• Transitioned from hardware to a pure-play software model in 2022, discontinuing hardware sales and focusing on software licensing and data monetization.

• Collaborates with leading semiconductor companies (e.g., Texas Instruments, Arm) to deliver integrated solutions and accelerate market adoption.

• Business model centers on software licensing, royalties, non-recurring engineering (NRE) fees, and data services, with revenue dependent on achieving design wins with automotive customers.

Financial performance and metrics

• For the nine months ended June 30, 2024: revenue of C$5.0M, net loss of C$85.3M, and negative operating cash flow of C$36.3M.

• Fiscal year ended September 30, 2023: revenue of C$7.4M, net loss of C$51.4M, and negative operating cash flow of C$36.7M.

• Accumulated deficit of C$563.3M as of June 30, 2024; cash balance of C$5.7M, with total liabilities of C$97.2M and shareholders’ deficiency of C$11.3M.

• Gross profit improved in 2024 due to reduced inventory write-downs and higher service revenue, but operating expenses remain high due to R&D and listing costs.

• Company’s financial statements include a going concern warning due to recurring losses, negative cash flows, and limited liquidity.

Use of proceeds and capital allocation

• Net proceeds from the IPO (estimated at US$5.3M if fully subscribed) will be used for working capital and general corporate purposes.

• Upon raising US$35M in aggregate equity financing, company must repay C$7.1M to Desjardins, including bridge loan principal and accrued interest.

• Management has broad discretion over use of proceeds; future capital needs may require additional equity or debt financing.