Actelis Networks, Inc. (NASDAQ: ASNS) (“Actelis”
or the “Company”), a market leader in cyber-hardened, rapid
deployment networking solutions for wide area IoT applications,
today reported financial results for the fiscal second quarter and
first six months ended June 30, 2023.
Second Quarter and First Half 2023
Financial Highlights:
- Revenues up 3% sequentially to $1.9 million for the second
quarter ended June 30, 2023, due to improved supply chain
availability, and open order backlog delivery, as components
availability is improving.
- Revenues at $3.74 million for the first half of 2023 vs. $4.95
million in prior year, mostly due to the increase of 8% in delivery
of sales to IoT customers offset by a reduction of 64% in Telecom,
as the focus of the company shifts away from telecom business to
IoT. This reduction in telecom business includes a reduction in
software license revenues in the second quarter of 2022 affecting
such trend. New order booking for the first half of 2023 consisted
of 75% from IoT customers vs. 44% in the year ago period; The
Company expects to get to nearly 90% of new order booking from IoT
customers by end of 2023 exemplifying our IoT growth unmasked by
the decline of our Telecom business.
- Gross Margin at 35% for the first half of 2023, compared to 50%
for the first half of 2022, driven by product-software mix change
associated with the focus shift to IoT.
- Net Loss for the first half of 2023 decreased 45%
year-over-year to $3.5 million, compared to a net loss of $6.3
million for the first half of 2022, due to the decrease in
financial expenses, following the conversion of financial
instruments as a result of the Company’s IPO in May 2022, and
implementation of cost reduction measures.
- Non-GAAP adjusted EBITDA loss is down 21% sequentially to $1.26
million for the second quarter ended June 30, 2023, as the Company
implements cost reduction measures, and at the same time continues
to invest in sales and marketing to drive growth.
Recent Company Highlights:
- New orders from SITA, the largest global provider of airport
operations management systems in the amount of $444 thousand from
eighteen different airports as part of the previously announced
three-year contract, bringing the total life-to-date new orders to
$950 thousand. New airports include Los-Angeles LAX, Orlando,
Boston Logan, Santiago De Chile, Pasay Philippines and more.
- Executed a cost reduction program, estimated to result in
savings measures amounting to approximately 15% of its 2022
operating expenses (excluding one-time expenses), on an annualized
basis.
- Launched nine new high performance 10gbps fiber optic product
series of advanced, software managed, temperature and
cyber-hardened, layer 2 and layer 3 fiber optic switching devices.
This release will enable Actelis to deliver a much broader
selection of solutions for large and small networks, at higher
speeds, in support of hybrid-fiber-copper networks that contain a
larger part of fiber networking.
- Closed a $3.5 million private placement of 944,670 shares of
its common stock (or common stock equivalents) and warrants to
purchase up to 944,670 shares of its common stock at a purchase
price of $3.705 per share of common stock (or common stock
equivalent) and associated warrant priced at-the-market under
Nasdaq rules. The warrants have an exercise price of $3.58 per
share, are exercisable immediately upon issuance and will expire
five and one-half years following the issuance. The Company may
receive approximately $3.38 million in additional gross proceeds if
the warrants are exercised in full for cash and there is no
assurance that any of the warrants will be exercised.
- Welcomed Bret Harrison as the new Senior VP of Sales for the
Americas. Bret brings a wealth of experience in the areas of sales
leadership, business development and key partners/alliances
management roles within enterprises, cybersecurity,
telecommunications, and IoT solutions companies. Bret is returning
to Actelis after a successful 10-year tenure with Actelis,
thereafter as VP Sales, as well as at Avaya, Checkpoint, and Palo
Alto Networks, driving sales at hundreds of millions of dollars
annually.
- Component shortage challenges improved, with lead-times
approaching pre COVID19 levels. As a result, the Company is seeking
to reduce the amount of working capital tied to supply chains, and
to improve delivery and logistics metrics.
- Continuing to monitor to help prevent irregular trading
activities through the engagement with Shareholder Intelligent
Services (“ShareIntel”). Such engagement shall continue for the
next 6 months to continuously monitor and actively approach
identified broker-dealers.
- Certification of Federal Information Processing Standards
(FIPS), which provides advanced encryption for operating systems
running on the Company’s federal and military cyber security
products is moving forward.
- Successfully showcased and tested with customers the new GL800
and GL900 next generation, gigabit-grade, hybrid fiber-copper
product families. The new product families are designed to enable
rapid deployment of cyber-hardened, gigabit connectivity utilizing
existing infrastructure of copper and coax to locations and
buildings (with GL800) as well as to connect overnight end users
and devices inside buildings including multi-dwelling units
(“MDUs”) (with GL900) – where fiber installation is difficult and
costly. The product families target a variety of IoT applications
for rail, military and campus networks, 4G/5G/mobile base stations
backhaul, as well as up to 18 million residential and business
multi-dwelling unit/buildings (MDUs) in the U.S. alone. The
showcase and successful testing took place with rail and military
customers and exceeded expectations.
- Late June, the Company reported its successful implementation
of HVAC IoT digitization for the US military partnering with Jacobs
Engineering as integration partner. Replacing the military’s
existing 3rd party connectivity solution, Actelis provided
connectivity for Heating, Ventilation, and Air Conditioning (HVAC)
system monitoring and control rapidly and cyber-safely through its
hybrid fiber-copper solutions.
- In August, the Company announced additional wins in the United
States Air Force and in Japan with Highway and Rail agencies.
Management Commentary:
“As we close out the first half of the year,
Actelis continues to experience strong momentum in growing our
pipeline of IoT customers and channels to further accelerate
growth,” said Tuvia Barlev, Chairman and CEO of Actelis. “We
launched the Gigaline fiber optic series and we are about to launch
additional hybrid fiber-copper-coax enabled products that would
complete the picture for our customers in any of the environments
we serve including multi-dwelling units and including FIPS enabled,
cyber-hardened, encrypted products. We also introduced our newest
roadmap concept of cyber-aware-networking recently and we are
working both organically as well as inorganically to achieve it.
Our telco business has continued to decline but is being offset by
our focus on serving our IoT verticals well and the growth
opportunity there is exciting. As we approach a clear inflection
point as the growth in IoT fully offsets our telco business we are
investing in global sales and marketing to ensure we deliver strong
performance in the coming quarters.”
"While we continue to reach new customers, we
have carefully implemented cost savings measures as internal
projects are coming to completion and freeing up resources. As a
result, we are re-focusing our investment in IoT opportunities and
cyber-aware-networking while keeping the cash burn-rate as low as
needed,” Barlev added. “Our newly raised funding of $3.5M in gross
proceeds, alongside the expense reduction efforts bolsters our
balance sheet as we continue to make solid progress. We are also
focused on improving our working capital as the supply chain
availability is improving, as well as with regards to releasing
restricted cash we own against our debt.”
“We have not been affected by the recent
political climate in Israel and we enjoy a foreign exchange
advantage for expenses related to our Israel office,” Barlev
added.
Fiscal Second Quarter and First Half
2023 Financial Results:
Revenues for the for the three
months ended June 30, 2023, amounted to $1.9 million, compared to
$3.1 million for the three months ended June 30, 2022. The decrease
from the corresponding period was primarily attributable to a
decrease of $1.3 million of revenues generated from North America
and Asia Pacific, offset by an increase of $0.1 million in revenues
generated from Europe, the Middle East and Africa.
Revenues for the six months ended June 30, 2023,
amounted to $3.74 million, compared to $4.95 million for the six
months ended June 30, 2022. The decrease from the corresponding
period was primarily attributable to a decrease of $1.3 million in
revenues generated from North America and Europe, the Middle East
and Africa, offset by an increase of $0.1 million in revenues
generated from Asia Pacific.
Cost of revenues for the three
months ended June 30, 2023, amounted to $1.3 million compared to
$1.2 million for the three months ended June 30, 2022. The increase
from the corresponding period was primarily attributable to change
in product mix.
Cost of revenues for the six months ended June
30, 2023, amounted to $2.4 million compared to $2.45 million for
the six months ended June 30, 2022.
Gross profit for the three
months ended June 30, 2023, amounted to $0.6 million or 33% of
revenue, compared to $1.9 million, or 62% of revenue for the three
months ended June 30, 2022. The decrease from the corresponding
period was mainly due to change in product mix.
Gross profit for the six months ended June 30,
2023, amounted to $1.3 million or 35% of revenue, compared to $2.5
million, or 50% of revenue for the six months ended June 30, 2022.
The decrease from the corresponding period was mainly due to change
in product mix.
Research and development
expenses for the three months ended June 30, 2023,
amounted to $0.7 million compared to $0.7 million for the three
months ended June 30, 2022.
Research and development expenses for the six
months ended June 30, 2023, amounted to $1.4 million compared to
$1.3 million for the six months ended June 30,
2022. The increase was mainly due to an increase
in payroll expenses for research and development personnel in the
amount of $25,000, and an increase in professional services related
to research and development in the amount of $51,000.
Sales and marketing expenses
for the three months ended June 30, 2023, amounted to $0.7 million
compared to $0.8 for the three months ended June 30, 2022. The
decrease was mainly due to a decrease in commission expenses.
Sales and marketing expenses for the six months
ended June 30, 2023, amounted to $1.6 million compared to $1.6 for
the six months ended June 30, 2022, with sales and marketing
investments made in 2023, offsetting lower sales commission
expenses.
General and administrative
expenses for the three months ended June 30, 2023,
amounted to $0.97 million compared to $1.07 million for the three
months ended June 30, 2022. The decrease is driven by cost
reduction measures.
General and administrative expenses for the six
months ended June 30, 2023, amounted to $1.8 million compared to
$1.7 million for the six months ended June 30, 2022. This increase
was mainly due to payroll, insurance expenses and professional
services expenses, in connection with our IPO completed in May 2022
and those costs associated with being a public company.
Operating loss for the three
months ended June 30, 2023, was $1.7 million, compared to an
operating loss of $0.7 million for the three months ended June 30,
2022. The increase was mainly due to the decrease in revenues and
gross margin.
Operating loss for the six months ended June 30,
2023, was $3.6 million, compared to an operating loss of $2.1
million for the six months ended June 30, 2022. The increase was
mainly due to the decrease in revenues and gross margin.
Other Financial income, net
and interest expenses for the three months ended
June 30, 2023, were $0.1 million (including $0.2 million interest
expenses) compared to financial expense of $1.0 million (including
$0.2 million interest expenses) for the three months ended June 30,
2022. During the three months ended June 30, 2023, the Company
recorded financial income in connection with a decrease in fair
value of warrants in the amount of $0.4 million, compared to an
increase in fair value of various financial instruments prior to
the IPO completed in May 2022, such as a convertible loan, note and
warrants in the amount of $1.4 million, for the three months ended
June 30, 2022. In addition, the Company recorded income in the
amount of $0.1 from exchange rate differences during the three
months ended June 30, 2023, compared to $0.5 million, during the
three months ended June 30, 2022.
Other Financial income, net and interest
expenses for the six months ended June 30, 2023, were $0.1 million
(including $0.35 million interest expenses) compared to financial
expense of $4.2 million (including $0.4 million interest expenses)
for the six months ended June 30, 2022. During the six months ended
June 30, 2023, the Company recorded financial income in connection
with a decrease in fair value of warrants in the amount of $0.4
million, compared to an increase in fair value of various financial
instruments prior to the IPO completed in May 2022, such as a
convertible loan, note and warrants in the amount of $4.5 million.
In addition, the Company recorded income in the amount of $0.25
million from exchange rate differences, compared to $0.65 during
the three months ended June 30, 2022.
Net loss for the three months
ended June 30, 2023, was $1.6 million, compared to net loss of $1.7
million for the three months ended June 30, 2022.
Net loss for the six months ended June 30, 2023,
was $3.5 million, compared to net loss of $6.3 million for the six
months ended June 30, 2022. This decrease was primarily due to the
decrease in revenues and gross margin offset by a decrease in
financial expenses, resulting from the conversion of the financial
instruments the Company had such as a convertible loan, note and
warrants from the IPO completed in May 2022.
Adjusted EBITDA income (loss),
a non-GAAP measurement of operating performance (reconciled below
to Net Loss), for the three months ended June 30, 2023, was $(1.26)
million, compared to $0.1 million in the comparable year-ago
period. This was primarily a result of product mix change which
resulted in a decreased gross profit and a decrease in other
one-time costs and expenses.
Adjusted EBITDA loss, a non-GAAP measurement of
operating performance (reconciled below to Net Loss), for the six
months ended June 30, 2023, was $(2.85) million, compared to $(0.9)
million in the comparable year-ago period. This was primarily
attributed to product mix changes, as well as expenses associated
with being a public company and a decrease in other one-time costs
and expenses.
The Company reported a balance
sheet with $13.6 million of total assets compared to $14.8
million as of December 31, 2022, $12.3 million of total liabilities
compared to $11.6 million as of December 31, 2022, and $1.3 million
of shareholders’ equity compared to shareholders equity of $3.3
million as of December 31, 2022.
About Actelis Networks,
Inc.
Actelis Networks, Inc. (NASDAQ: ASNS) is a
market leader in cyber-hardened, rapid-deployment networking
solutions for wide-area IoT applications including federal, state
and local government, ITS, military, utility, rail, telecom and
campus applications. Actelis’ unique portfolio of hybrid
fiber-copper, environmentally hardened aggregation switches, high
density Ethernet devices, advanced management software and
cyber-protection capabilities, unlocks the hidden value of
essential networks, delivering safer connectivity for rapid,
cost-effective deployment. For more information, please visit
www.actelis.com.
Use of Non-GAAP Financial
Information
Non-GAAP Adjusted EBITDA, and backlog of open
orders are Non-GAAP financial measures. In addition to reporting
financial results in accordance with GAAP, we provide Non-GAAP
operating results adjusted for certain items, including: financial
expenses, which are interest, financial instrument fair value
adjustments, exchange rate differences of assets and liabilities,
stock based compensation expenses, depreciation and amortization
expense, tax expense, and impact of development expenses ahead of
product launch. We adjust for the items listed above and show
Non-GAAP financial measures in all periods presented, unless the
impact is clearly immaterial to our financial statements. When we
calculate the tax effect of the adjustments, we include all current
and deferred income tax expense commensurate with the adjusted
measure of pre-tax profitability.
Cautionary Statement Concerning
Forward-Looking StatementsThis press release contains
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and other securities laws.
Words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks,” “estimates” and similar expressions or
variations of such words are intended to identify forward-looking
statements. Forward-looking statements are not historical facts,
and are based upon management’s current expectations, beliefs and
projections, many of which, by their nature, are inherently
uncertain. Such expectations, beliefs and projections are expressed
in good faith. However, there can be no assurance that management’s
expectations, beliefs and projections will be achieved, and actual
results may differ materially from what is expressed in or
indicated by the forward-looking statements. Forward-looking
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the forward-looking statements. For a more detailed
description of the risks and uncertainties affecting the Company,
reference is made to the Company’s reports filed from time to time
with the SEC, including, but not limited to, the risks detailed in
the Company’s final prospectus (Registration No. 333-264321), filed
with the SEC on May 16, 2022. Investors and security holders are
urged to read these documents free of charge on the SEC's web site
at http://www.sec.gov. Forward-looking statements speak only as of
the date the statements are made. The Company assumes no obligation
to update forward-looking statements to reflect actual results,
subsequent events or circumstances, changes in assumptions or
changes in other factors affecting forward-looking information
except to the extent required by applicable securities laws. If the
Company does update one or more forward-looking statements, no
inference should be drawn that the Company will make additional
updates with respect thereto or with respect to other
forward-looking statements. References and links to websites have
been provided as a convenience, and the information contained on
such websites is not incorporated by reference into this press
release. Actelis is not responsible for the contents of third-party
websites.
-Financial Tables to Follow-
ACTELIS NETWORKS, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(UNAUDITED)(U. S. dollars in thousands
except for share and per share amounts)
|
June 30,2023 |
|
|
December 31, 2022 |
|
Assets |
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
2,573 |
|
|
|
3,943 |
|
Short term deposits |
|
809 |
|
|
|
1,622 |
|
Restricted bank deposits |
|
454 |
|
|
|
451 |
|
Trade receivables, net of allowance for credit losses of $125 as of
June 30, 2023, and December 31, 2022. |
|
1,759 |
|
|
|
3,034 |
|
Inventories |
|
1,808 |
|
|
|
1,179 |
|
Prepaid expenses and other current assets |
|
470 |
|
|
|
678 |
|
TOTAL CURRENT
ASSETS |
|
7,873 |
|
|
|
10,907 |
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
Property and equipment, net |
|
70 |
|
|
|
80 |
|
Prepaid expenses |
|
492 |
|
|
|
492 |
|
Restricted cash |
|
2,214 |
|
|
|
336 |
|
Restricted bank deposits |
|
2,213 |
|
|
|
2,027 |
|
Severance pay fund |
|
231 |
|
|
|
239 |
|
Operating lease right of use assets |
|
464 |
|
|
|
726 |
|
Long term deposits |
|
17 |
|
|
|
12 |
|
TOTAL NON-CURRENT
ASSETS |
|
5,701 |
|
|
|
3,912 |
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
13,574 |
|
|
|
14,819 |
|
|
|
|
|
|
|
|
|
ACTELIS NETWORKS, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS (continued)UNAUDITED(U. S. dollars in
thousands except for share and per share amounts)
|
June 30,2023 |
|
|
December 31, 2022 |
|
Liabilities and
redeemable convertible preferred stock, warrants to placement agent
and shareholders’ equity |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Current maturities of long-term loans |
|
1,223 |
|
|
|
553 |
|
Warrants |
|
8 |
|
|
|
8 |
|
Trade payables |
|
1,918 |
|
|
|
1,781 |
|
Deferred revenues |
|
493 |
|
|
|
484 |
|
Employee and employee-related obligations |
|
772 |
|
|
|
793 |
|
Accrued royalties |
|
996 |
|
|
|
900 |
|
Current maturities of operating lease liabilities |
|
303 |
|
|
|
445 |
|
Other accrued liabilities |
|
1,003 |
|
|
|
1,238 |
|
TOTAL CURRENT LIABILITIES |
|
6,716 |
|
|
|
6,202 |
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
|
Long-term loan, net of current maturities |
|
3,456 |
|
|
|
4,625 |
|
Warrants |
|
1,576 |
|
|
|
- |
|
Deferred revenues |
|
- |
|
|
|
164 |
|
Operating lease liabilities |
|
141 |
|
|
|
237 |
|
Accrued severance |
|
264 |
|
|
|
278 |
|
Other long-term liabilities |
|
32 |
|
|
|
48 |
|
TOTAL NON-CURRENT
LIABILITIES |
|
5,469 |
|
|
|
5,352 |
|
TOTAL
LIABILITIES |
|
12,185 |
|
|
|
11,554 |
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REDEEMABLE CONVERTIBLE
PREFERRED STOCK: |
|
|
|
|
|
|
|
Redeemable convertible
preferred stock - $0.0001 par value, 10,000,000 authorized as of
June 30, 2023, December 31, 2022. None issued and outstanding as of
June 30, 2023, December 31, 2022. |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
WARRANTS TO PLACEMENT
AGENT (Note 11(e)) |
|
104 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
(**): |
|
|
|
|
|
|
|
Common stock, $0.0001 par value: 3,000,000 shares authorized as of
June 30, 2023, and December 31, 2022, respectively; 1,930,718 and
1,737,986 shares issued and outstanding as of June 30,2023 and
December 31, 2022, respectively |
|
1 |
|
|
|
1 |
|
Non-voting common stock, $0.0001 par value: 2,803,774 shares
authorized as of June 30, 2023, and December 31, 2022,
respectively; None issued and outstanding as of June 30, 2023, and
December 31, 2022, respectively. |
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
38,174 |
|
|
|
36,666 |
|
Accumulated deficit |
|
(36,890 |
) |
|
|
(33,402 |
) |
TOTAL SHAREHOLDERS’ EQUITY |
|
1,285 |
|
|
|
3,265 |
|
TOTAL LIABILITIES AND REDEEMABLE CONVERTIBLE PREFERRED
STOCK, WARRANTS TO PLACEMENT AGENT AND SHAREHOLDERS’
EQUITY |
|
13,574 |
|
|
|
14,819 |
|
|
|
|
|
|
|
|
|
(**) Adjusted to reflect reverse stock split, see note
3(f).
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
ACTELIS NETWORKS, INC.CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(UNAUDITED)(U. S.
dollars in thousands except for share and per share amounts)
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
1,896 |
|
|
|
3,081 |
|
|
|
3,744 |
|
|
|
4,949 |
|
COST OF
REVENUES |
|
1,264 |
|
|
|
1,159 |
|
|
|
2,424 |
|
|
|
2,445 |
|
GROSS
PROFIT |
|
632 |
|
|
|
1,922 |
|
|
|
1,320 |
|
|
|
2,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenses, net |
|
669 |
|
|
|
676 |
|
|
|
1,426 |
|
|
|
1,326 |
|
Sales and marketing expenses,
net |
|
712 |
|
|
|
837 |
|
|
|
1,641 |
|
|
|
1,567 |
|
General and administrative
expenses, net |
|
969 |
|
|
|
1,067 |
|
|
|
1,834 |
|
|
|
1,702 |
|
TOTAL OPERATING
EXPENSES |
|
2,350 |
|
|
|
2,580 |
|
|
|
4,901 |
|
|
|
4,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
(1,718 |
) |
|
|
(658 |
) |
|
|
(3,581 |
) |
|
|
(2,091 |
) |
Interest expense |
|
(171 |
) |
|
|
(204 |
) |
|
|
(351 |
) |
|
|
(424 |
) |
Other Financial income
(expenses), net |
|
296 |
|
|
|
(792 |
) |
|
|
444 |
|
|
|
(3,778 |
) |
NET COMPREHENSIVE LOSS
FOR THE PERIOD |
|
(1,593 |
) |
|
|
(1,654 |
) |
|
|
(3,488 |
) |
|
|
(6,293 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders – basic and diluted (*) |
$ |
(0.68 |
) |
|
$ |
(1.74 |
) |
|
$ |
(1.72 |
) |
|
$ |
(10.9 |
) |
Weighted average number of
common stock used in computing net loss per share – basic and
diluted (*) |
|
2,333,381 |
|
|
|
952,223 |
|
|
|
2,033,747 |
|
|
|
578,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Adjusted to reflect reverse stock split, see note 3(f).
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
Non-GAAP adjusted EBITDA
(U.S. dollars in thousands) |
|
Three monthsEndedJune
30,2023 |
|
|
Three monthsEndedJune
30,2022 |
|
|
Six monthsEndedJune
30,2023 |
|
|
Six monthsEndedJune
30,2022 |
|
Revenues |
|
$ |
1,896 |
|
|
$ |
3,081 |
|
|
$ |
3,744 |
|
|
$ |
4,949 |
|
GAAP net loss |
|
|
(1,593 |
) |
|
|
(1,654 |
) |
|
|
(3,488 |
) |
|
|
(6,293 |
) |
Interest Expense |
|
|
171 |
|
|
|
204 |
|
|
|
351 |
|
|
|
424 |
|
Other Financial expenses (income), net |
|
|
(296 |
) |
|
|
792 |
|
|
|
(444 |
) |
|
|
3,778 |
|
Tax Expense |
|
|
19 |
|
|
|
62 |
|
|
|
40 |
|
|
|
74 |
|
Fixed asset depreciation expense |
|
|
6 |
|
|
|
10 |
|
|
|
13 |
|
|
|
20 |
|
Stock based compensation |
|
|
97 |
|
|
|
14 |
|
|
|
192 |
|
|
|
28 |
|
Research and development, capitalization |
|
|
112 |
|
|
|
138 |
|
|
|
258 |
|
|
|
280 |
|
Other one-time costs and expenses |
|
|
223 |
|
|
|
513 |
|
|
|
223 |
|
|
|
801 |
|
Non-GAAP Adjusted EBITDA |
|
|
(1,261 |
) |
|
|
79 |
|
|
|
(2,855 |
) |
|
|
(888 |
) |
GAAP net loss margin |
|
|
(84.02 |
)% |
|
|
(53.67 |
)% |
|
|
(93.16 |
)% |
|
|
(127.2 |
)% |
Adjusted EBITDA margin |
|
|
(66.51 |
)% |
|
|
2.6 |
% |
|
|
(76.25 |
)% |
|
|
(17.94 |
)% |
|
|
For the three months endedJune
30 |
|
|
For the six months endedJune
30 |
|
(U.S. dollars in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
|
$ |
1,896 |
|
|
$ |
3,081 |
|
|
$ |
3,744 |
|
|
$ |
4,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted EBITDA |
|
|
(1,261 |
) |
|
|
79 |
|
|
|
(2,855 |
) |
|
|
(888 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of revenues |
|
|
(66.51 |
)% |
|
|
2.6 |
% |
|
|
(76.25 |
)% |
|
|
(17.94 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACTELIS NETWORKS, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)
|
Six months endedJune 30, |
|
|
2023 |
|
|
2022 |
|
|
U.S. dollars in thousands |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
Net loss for the period |
|
(3,488 |
) |
|
|
(6,293 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation |
|
13 |
|
|
|
20 |
|
Changes in fair value related to warrants to lenders and
investors |
|
(396 |
) |
|
|
1,115 |
|
Warrant issuance costs |
|
223 |
|
|
|
- |
|
Inventories write-downs |
|
97 |
|
|
|
80 |
|
Exchange rate differences |
|
(226 |
) |
|
|
(739 |
) |
Share-based compensation |
|
192 |
|
|
|
28 |
|
Changes in fair value related to convertible loan |
|
- |
|
|
|
1,648 |
|
Changes in fair value related to convertible note |
|
- |
|
|
|
1,753 |
|
Financial income from long term bank deposit |
|
(64 |
) |
|
|
(4 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Trade receivables |
|
1,275 |
|
|
|
(962 |
) |
Net change in operating lease assets and liabilities |
|
24 |
|
|
|
(82 |
) |
Inventories |
|
(726 |
) |
|
|
(91 |
) |
Prepaid expenses and other current assets |
|
208 |
|
|
|
(735 |
) |
Trade payables |
|
137 |
|
|
|
(261 |
) |
Deferred revenues |
|
(155 |
) |
|
|
227 |
|
Other current liabilities |
|
(36 |
) |
|
|
378 |
|
Other long-term liabilities |
|
(17 |
) |
|
|
136 |
|
Net cash used in operating
activities |
|
(2,939 |
) |
|
|
(3,782 |
) |
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Short term deposits |
|
810 |
|
|
|
(71 |
) |
Long term Restricted bank
deposits |
|
(125 |
) |
|
|
- |
|
Long term deposits |
|
(5 |
) |
|
|
- |
|
Purchase of property and
equipment |
|
(3 |
) |
|
|
(16 |
) |
Net cash provided by (used in)
investing activities |
|
677 |
|
|
|
(87 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from exercise of
options |
|
10 |
|
|
|
* |
|
Proceeds from common stocks,
pre-funded warrants and warrants (see Note 11d) |
|
3,500 |
|
|
|
- |
|
Proceeds from initial public
offering and private placement |
|
- |
|
|
|
18,712 |
|
Underwriting discounts and
commissions and other offering costs |
|
(291 |
) |
|
|
(2,175 |
) |
Repurchase of common
stock |
|
(50 |
) |
|
|
- |
|
Repayment of long-term
loan |
|
(389 |
) |
|
|
(316 |
) |
Net cash provided by financing
activities |
|
2,780 |
|
|
|
16,221 |
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH |
|
(10 |
) |
|
|
(739 |
) |
|
|
|
|
|
|
|
|
INCREASE IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH |
|
508 |
|
|
|
12,352 |
|
|
|
|
|
|
|
|
|
BALANCE OF CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE
PERIOD |
|
4,279 |
|
|
|
795 |
|
|
|
|
|
|
|
|
|
BALANCE OF CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD |
|
4,787 |
|
|
|
13,147 |
|
|
|
|
|
|
|
|
|
* Represents an amount less than $1 thousands.
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
Investor Relations Contact:
Kirin Smith
PCG Advisory
Ksmith@pcgadvisory.com
Actelis Networks (NASDAQ:ASNS)
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