Siyata Mobile Issues Letter to Shareholders to Provide Business Update - Seite 3

Siyata’s business continues to be active in the Middle East, which was the source of approximately 70% of revenue historically. However, beginning in the second half of 2019 and into 2020, our primary focus on the large scale North American market began paying big dividends. Considering our certification and relationships with some of North America’s largest wireless networks, we are well positioned to capitalize on this market opportunity and continue to aggressively grow our sales in the region as illustrated by our substantial and growing sales pipeline mentioned previously.

The gross margin for our product sales in North America is significantly higher than our historic gross margins, a trend we expect to continue to impact the Company’s overall gross margin as we continue to ramp our North American product sales. The high operating leverage in our model is primarily attributable to our low SG&A expense level, as we work together with, and utilize, the large-scale sales teams employed by the wireless carriers.

We have made considerable progress over the past year and have arrived at a key inflection point in our business’s history, one in which our innovative, industry leading solutions, coupled with never-before established relationships with the largest wireless carriers and an acute focus on one of the world’s largest markets, has primed us to win significant customer contracts and grow sales dramatically. We believe that at this time, as we are working with the leading U.S. telecom brands, there exists a strong appetite for our securities in the United States and are therefore seeking approval from our shareholders to make certain changes to our share structure and constating documents which will allow us to file an application to list our securities on the NASDAQ. After meeting with numerous relevant US funds and investors over the past several years, we believe this will open up opportunities to buy our securities from the thousands of microcap funds, family offices and retail investors that currently do not trade on the TSX Venture Exchange or OTC. With this in mind, our securities will continue to trade on the TSX Venture Exchange regardless of our status on the NASDAQ.