LeddarTech (LDTCF) Registration Filing summary

Company overview and business model

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

• Transitioned from hardware to software-only business model in 2022, divesting hardware operations and focusing on software IP monetization.

• Collaborates with Arm and Texas Instruments to deliver integrated ADAS/AD solutions, including a recent multi-year agreement with Texas Instruments for joint platform development.

• Achieved first OEM design win with a leading commercial vehicle manufacturer for 2028 model year, with revenue expected from 2025 for engineering services and royalties from 2027.

• Business model centers on software licensing, royalties, data insights, and engineering services, with revenue dependent on design wins and commercial agreements.

Financial performance and metrics

• FY2024 revenue from continuing operations was $0.48 million, with a net loss of $167.3 million and negative operating cash flow of $40.9 million.

• Q1 FY2025 revenue was $51,878, with a net loss of $26.5 million and cash outflows from operations of $5.4 million.

• As of December 31, 2024, cash balance was $17.7 million, total liabilities $130.7 million, and shareholders' deficit $98.6 million.

• Accumulated deficit reached $669.8 million as of December 31, 2024.

• Significant impairment charges in FY2024: $69.3 million for goodwill and intangible assets.

Use of proceeds and capital allocation

• Net proceeds from the offering (estimated at $16.3 million if fully subscribed) will be used for working capital and general corporate purposes.

• Upon raising $35 million in equity financing, required to repay $7.3 million to Desjardins, including bridge loan principal and accrued interest.

• Proceeds may also be used to meet minimum cash covenants and support ongoing operations.