Core AI Sheds Siyata Mobile to Cut Costs, Double Down on AI Gaming

MIAMI, FL – December 29, 2025 – Core AI Holdings, Inc. (Nasdaq: CHAI) has executed a significant strategic pivot, announcing today the complete divestiture of Siyata Mobile Inc. and its associated subsidiaries. The move, effective immediately, is designed to aggressively streamline operations, staunch a major source of cash drain, and concentrate the company's resources squarely on its core artificial intelligence and mobile gaming ventures.

The transaction marks a decisive end to a chapter where expected operational and technological synergies between Core AI and the mobile hardware firm failed to come to fruition. By offloading Siyata, Core AI aims to reshape its financial structure and clarify its mission as a leader in the AI-powered entertainment space.

A Major Financial Overhaul

The most immediate and dramatic impact of the divestiture is on Core AI's financial health. The company confirmed that shedding Siyata will eliminate approximately $12 million in annual cash burn, a substantial figure that has been a drag on its resources. This strategic unburdening is clearly reflected in the company's pro forma financials.

Based on unaudited figures as of September 30, 2025, the move transforms Core AI's bottom line. The net loss for the first nine months of the year is retroactively reduced from a hefty $12.5 million to a more manageable $4.8 million. This $8.7 million improvement stems directly from removing Siyata's operating expenses from the consolidated financial statements.

“As we continued to deepen our focus on artificial intelligence, it became clear that the anticipated technology and commercial synergies with Siyata did not materialize,” said Aitan Zacharin, CEO of Core AI Holdings, Inc., in a statement. “The divestiture eliminates approximately $12 million in annual cash burn, materially reduces losses and simplifies our balance sheet.”

The company’s balance sheet also undergoes a significant transformation. Total assets will decrease by $20.0 million, from $51.6 million down to $31.6 million, reflecting the removal of Siyata's business. Concurrently, total liabilities are set to decrease by $4.1 million, from $22.4 million to $18.3 million, further strengthening Core AI’s financial position and providing a cleaner foundation for future growth.

Sharpening Focus on a Core AI Strategy

Beyond the immediate financial relief, the divestiture is fundamentally a strategic repositioning. Core AI is doubling down on what it considers its high-growth engine: its subsidiary, Core Gaming. This division is a global developer and publisher of AI-driven mobile games, boasting a portfolio of over 2,200 developed or co-developed titles. With a history of more than 800 million downloads and a global user base exceeding 40 million players across 140 countries, Core Gaming represents the future direction of the parent company.

Core AI's stated mission is to leverage artificial intelligence to create transformative and scalable products across multiple verticals, with gaming being the primary beachhead. The sale of Siyata removes a non-aligned business unit, allowing management to dedicate its full attention and capital to this vision.

Zacharin emphasized this strategic clarity, stating the move “better aligns our asset base with our core AI strategy, strengthens our financial profile and allows us to direct capital and resources to higher-return opportunities we believe will drive sustainable shareholder value.”

The Terms of the Deal

The structure of the definitive agreement underscores that the primary goal of the transaction was strategic realignment and cost-cutting rather than a lucrative sale. Core AI will receive an initial cash consideration of just $100,000.

However, the deal includes a potential long-term upside through an earn-out provision. This consists of three separate annual payments following the closure of the deal. For each of those three years, Core AI will receive the greater of either $200,000 or 1% of the gross revenue generated by Siyata. These payments will be based on audited annual financial statements, providing a transparent, albeit modest, potential revenue stream for Core AI from its former subsidiary.

The low upfront payment suggests that Siyata Mobile was considered more of a liability than an asset on Core AI's books, making the reduction in cash burn the true prize of the transaction.

A Leaner Mandate for Future Growth

With the divestiture complete, Core AI presents itself to investors as a more focused and efficient enterprise. The company is now operating with what its CEO calls a “leaner cost structure and a clearer growth mandate.” The capital and operational bandwidth freed up by the sale are expected to be redeployed into advancing its proprietary AI platform and pursuing targeted growth initiatives that can scale efficiently.

“We are now positioned to more aggressively invest in advancing our AI platform and pursue targeted growth initiatives that we believe can scale efficiently,” Zacharin added. “By improving operating leverage and sharpening our strategic focus, we see a compelling opportunity to drive sustained revenue growth and long-term shareholder value.”

This forward-looking optimism is part of Core AI's broader growth strategy, which includes ambitions for significant revenue milestones and expansion through joint ventures and acquisitions within the AI and gaming sectors. While such projections are subject to market risks and uncertainties, the divestiture of Siyata Mobile is a concrete and critical first step in clearing the path for Core AI to pursue its technology-focused ambitions.