Conference callI got in late but heard several questions of CEO Marc Seelenfruend. He answered in his normal rapidfire way and seemed to answer all questions easily and completely.
Question was asked about capital needed for rampup. He said sales are financeable and at the 40-45% gross margins of the uv350, Siyata won't have to come up with much capital to grow rapidly. Doesn't sound like a financing is coming short term.
Someone asked about end customer feedback. He said they tested with a large Canadian end user. Customer was very pleased and is in line to purchase units as soon as they are available.
Describing the enthusiasm of the cell operators, he said they are anxious to sell to their current customers. He originally thought they would want this new service to sell to competitor's customers and take them away. He said the operators are excited because they can sell to their existing customers and get new revenues. This is low hanging fruit for them.
Sounds like Bell Canada will start selling devices in December and the US operator in Q1. He was asked about inventory levels and said he is not worried about a big rampup. They have units in inventory.
Someone asked about warrants. Marc said he didn't know how many warrants had been exercised. He will report to the market as soon as he has the information. The high volume this week would indicate that the warrants that are in the money have been exercised but he couldn't give any definite numbers.
He was asked about competition. He said the big players like Samsung wouldn't bother with a market that might sell 100K or 200K/yr. Chinese knockoff manufacturers like to sell direct to consumers online. This product requires lengthy testing and must be sold thru a dealership model that requires expert installation to solve specific customer problems. This is not the kind of product they like to knockoff. The last competition might come from a new startup. Marc said it's taken them 7 years and lots of mistakes to get to this point. A startup would suffer some of the same mistakes and require a lengthly approval period that will give Siyata a long headstart.
At the moment, he doesn't see any direct competition.
Overall a very positive call. They said in the PR that a replay of the call would be online but didn't give any details. Those interested in listening to the replay should check on the website in a few days.