Core AI Holdings (CHAI) Registration filing summary

Company overview and business model

• Develops and sells rugged Push-to-Talk over Cellular (PoC) handsets and accessories for first responders and enterprise workers, with a focus on replacing legacy Land Mobile Radios (LMR).

• Offers in-vehicle communication devices, cellular boosters under the Uniden® brand, and mobile DVR solutions for fleet monitoring.

• Products are distributed through major wireless carriers in North America and internationally, targeting sectors such as public safety, utilities, transportation, and logistics.

• Holds exclusive licensing agreements for Uniden® boosters in the U.S. and Canada through 2031 and owns patents for cellular amplifier technologies.

Financial performance and metrics

• Reported $4.25M in revenue for the six months ended June 30, 2024, with a net loss of $9.36M for the same period.

• Accumulated deficit reached $106.5M as of June 30, 2024; cash and cash equivalents were $2.65M.

• Auditor included a going concern explanatory paragraph, expressing substantial doubt about the ability to continue as a going concern.

• Material weaknesses in internal controls over financial reporting have been identified and are being remediated.

Use of proceeds and capital allocation

• May receive up to $7M in gross proceeds from the equity line of credit (ELOC) with Hudson Global Ventures, to be used for working capital and general corporate purposes.

• Proceeds from recent offerings and private placements have been used to support operations and strategic investments, including a $1.3M investment in Canadian Towers & Fiber Optics Inc.