LeddarTech (LDTCF) Registration Filing summary

Company overview and business model

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

• Transitioned from hardware modules to a pure-play software model, discontinuing hardware sales in 2022 and winding down remaining inventory in 2024.

• Monetizes IP through licensing agreements and collaborates with Arm and Texas Instruments for integrated solutions.

• Business model focuses on software licensing, data insights, and engineering services, with revenue dependent on achieving design wins with OEMs and Tier 1s.

Financial performance and metrics

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

• As of June 30, 2024: cash balance of $5.7M, total assets of $85.9M, and total liabilities of $97.2M, resulting in negative equity.

• Accumulated deficit of $563.3M as of June 30, 2024.

• Historical financials reflect legacy hardware business; current results may not be indicative of future performance under the software-only model.

Use of proceeds and capital allocation

• Estimated net proceeds of $5.3M from the offering (assuming full subscription) to be used for working capital and general corporate purposes.

• Upon raising $35M in equity financing (including this offering, TI royalty fee, and bridge loan conversion), required to repay $7.1M to Desjardins, including bridge loan principal and accrued interest.

• Management has broad discretion over use of proceeds; actual allocation may vary based on business needs.