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 solutions and cellular boosters, with products certified by major carriers in North America, Europe, Australia, and the Middle East.

• Targets approximately 47 million enterprise and public sector workers in North America, with a total addressable market over $19 billion.

• Competes directly with Sonim Technologies, Kyocera, and Samsung in rugged handsets, and indirectly with LMR radios and low-cost international devices.

Financial performance and metrics

• Reported revenue of $2.36 million for the three months ended March 31, 2024, and $8.23 million for the year ended December 31, 2023.

• Net loss for the year ended December 31, 2023 was $12.93 million, with an accumulated deficit of $90.75 million as of December 31, 2023.

• Cash and cash equivalents as of March 31, 2024 were $585,559.

• 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 intended for general corporate purposes, including acquisitions, investments, capital expenditures, working capital, and payments to a third-party marketing agency.

• $2,000,000 allocated for marketing and advertising services to IR Agency, effective upon closing.

• Management retains broad discretion over allocation of net proceeds.