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, and mobile DVR solutions, targeting public safety, utilities, transportation, and other sectors.

• Products are distributed through major wireless carriers in North America and internationally, including AT&T, Verizon, T-Mobile, Bell Mobility, Telstra, and KPN.

• Holds exclusive licensing agreements for Uniden® cellular boosters in the U.S. and Canada, and maintains partnerships for technology and distribution.

Financial performance and metrics

• Reported revenue of $8.2M in 2023, with a net loss of $12.9M for the year.

• As of March 31, 2024, cash and cash equivalents were $585,559, with total assets of $14.3M and total liabilities of $6.9M.

• 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

• Net proceeds (up to $9.3M if fully subscribed) will be used for general corporate purposes, including acquisitions, investments, capital expenditures, working capital, and payments to a third-party marketing agency.

• $2M of proceeds allocated to IR Agency for marketing and advertising services.

• Management retains broad discretion over allocation of proceeds.