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 and Tier 1 suppliers.

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

• Holds a strong IP portfolio with over 150 patent applications (80 granted) and has received industry recognition for innovation.

• Business model depends on achieving design wins with OEMs and Tier 1s, with revenue expected from licensing, royalties, and engineering services.

• Strategic collaborations announced with Ficosa and Trimble, with over 30 design win opportunities in progress.

Financial performance and metrics

• For the nine months ended June 30, 2024: revenue of C$5.0M, net loss of C$85.3M, and cash balance of C$5.7M.

• Operating losses have increased year-over-year; accumulated deficit of C$563.3M as of June 30, 2024.

• Gross profit improved to C$2.0M for the nine months ended June 30, 2024, compared to a gross loss in the prior year.

• Significant cash outflows from operations and investing activities; company remains dependent on external financing.

• EBITDA (loss) for YTD Q3-2024 was C$79.0M; adjusted EBITDA (loss) was C$24.1M.

Use of proceeds and capital allocation

• Net proceeds of up to US$9.0M from the offering are expected, to be used for working capital and general corporate purposes.

• No minimum offering amount; actual proceeds may be significantly less depending on investor demand.

• Management has broad discretion over use of proceeds.