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 Chinese PoC devices.

• Holds exclusive licensing agreements for Uniden® boosters and has acquired patents for cellular amplifier technologies.

Financial performance and metrics

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

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

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

• 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 from the offering (up to $9.3 million 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.

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

• Management retains broad discretion over allocation of proceeds.