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, enabling instant communication over cellular networks.

• Offers in-vehicle communication devices, cellular boosters, and mobile DVR solutions, targeting public safety, utilities, transportation, and other sectors.

• Products are distributed through major wireless carriers in North America and internationally, with a focus on large enterprise and public sector customers.

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

Financial performance and metrics

• Reported revenue of $2.36M for Q1 2024, up from $1.81M in Q1 2023; gross profit for Q1 2024 was $0.86M.

• Net loss for Q1 2024 was $2.80M; net loss for FY 2023 was $12.93M, compared to $15.30M in FY 2022.

• Cash and cash equivalents as of March 31, 2024, were $0.59M; total assets were $14.3M, with total liabilities of $7.3M.

• Accumulated deficit as of March 31, 2024, was $93.5M.

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

Use of proceeds and capital allocation

• Proceeds will be used for general corporate purposes, including potential acquisitions, investments, capital expenditures, working capital, and payments to a third-party marketing agency.

• $1.5M of the proceeds are allocated to IR Agency for marketing and advertising services.

• Management retains broad discretion over allocation of net proceeds.