Core AI Holdings (CHAI) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was $11.63M, up 41% year-over-year, driven by a 73.6% increase in rugged device sales, offset by a 46.2% decline in booster sales.

• Gross margin declined to 18.4% from 32.3% in 2023, mainly due to negative margins on EMEA rugged device sales, inventory impairment, and higher handling costs.

• Net loss widened to $25.27M from $12.93M in 2023, with adjusted EBITDA at negative $14.76M versus negative $7.84M prior year.

• The company faces substantial doubt about its ability to continue as a going concern, with an accumulated deficit of $116M and a working capital deficit of $4.95M as of year-end.

• A merger agreement was signed with Core Gaming, a mobile gaming developer, in February 2025, with Core Gaming shareholders to own 90% of the combined entity.

Financial highlights

• Revenue: $11.63M in 2024, up from $8.23M in 2023.

• Gross profit: $2.14M (18.4% margin), down from $2.66M (32.3%) in 2023.

• Net loss: $25.27M, compared to $12.93M in 2023.

• Adjusted EBITDA: negative $14.76M, versus negative $7.84M in 2023.

• Cash at year-end: $182K; working capital deficit: $4.95M.

• Major customers: Top three accounted for 64% of 2024 revenue.

Outlook and guidance

• Management expects continued momentum in 2024, leveraging expanded partnerships, new sales hires, and refreshed product offerings.

• The merger with Core Gaming is expected to close in Q2 2025, shifting the business focus to mobile gaming.