SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549


F O R M  6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

For the month of May 2021

MER TELEMANAGEMENT SOLUTIONS LTD.
(Name of Registrant)

14 Hatidhar Street, P.O. Box 2112
Ra’anana 4366516, Israel
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐          No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- __________

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
MER TELEMANAGEMENT SOLUTIONS LTD.
 
(Registrant)
   
Date:  May 6, 2021
By: /s/ Ofira Bar
 
       Ofira Bar
 
       Chief Financial Officer


MTS Announces 2020 Half Year 2020 Financial Results

Ra’anana, Israel / Powder Springs, Georgia, USA - May 6, 2021 - Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), call accounting and contact center software, today released its financial results for the six and twelve months ended December 31, 2020.

On April 15, 2021, we entered into a definitive agreement and Plan of Merger (the “Merger Agreement”) with SharpLink, Inc., a leading online technology company that works with sports leagues, fantasy sports sites and media companies to connect fans to relevant and timely betting content sourced from its sportsbook partners.

Financial information

The Company recorded revenues of $1.9 million for the six months ended December 31, 2020, compared with $2.6 million for the six months ended December 31, 2019. The Company incurred losses of $(1.2) million for the six months ended December 31, 2020, or $(0.17) per diluted share compared with net income of $85,000, or $0.01 per diluted share, for the comparable period in 2019. On a non-GAAP basis (as described and reconciled below), The Company posted a net loss of $(224,000) or $(0.03) per diluted share, for the six months ended December 31, 2020 compared with  net income of $262,000, or $0.04 per diluted share, for the comparable period in 2019.

The Company recorded revenues of $4 million for the year ended December 31, 2020 compared with $5.2 million for the comparable period in 2019. The Company incurred a net loss of $(1.8) million or $(0.30) per diluted share, for the year ended December 31, 2020 compared with a net loss of $(135,000) or $(0.03) per diluted share for the comparable period 2019. On a non-GAAP basis (as described and reconciled below), the Company posted a net loss of $(376,000), or $(0.06) per diluted share for the year ended December 31, 2020 compared with net income of $79,000, or $0.02 per diluted share for the comparable period in 2019.

During the period 2018-2020 an institutional investor invested, $3 million in a newly-created class of convertible preferred shares and $0.2 million in ordinary shares of the Company, at a price per preferred share and ordinary share of $1.14. The preferred shares are convertible into ordinary shares on a one to one basis. The stock purchase agreement with the institutional investor included a green shoe option for future investment of up to $1.5 million in the Company’s preferred shares at a price per preferred share of $1.14. During, 2019 and 2020, the institutional investor fully exercised its green shoe option as part of its $3 million investment.

As previously reported on April 15, 2021, we entered into a definitive agreement and Plan of Merger (the “Merger Agreement”) with SharpLink, Inc. (“SharpLink”), a leading online technology company that works with sports leagues, fantasy sports sites and media companies to connect fans to relevant and timely betting content sourced from its sportsbook partners, and New SL Acquisition Corp., a company incorporated under the laws of the State of Delaware and a wholly-owned subsidiary of the Company (“Merger Sub”). On the terms and subject to the satisfaction of the conditions described in the Merger Agreement, including approval of the transaction by the Company’s shareholders, Merger Sub will be merged with and into SharpLink (the “Merger”) with SharpLink surviving the Merger as a wholly-owned subsidiary of the Company.

Mr. Roy Hess, Chief Executive Officer of MTS, said, “We are excited to achieve this major milestone by signing the definitive merger agreement with SharpLink, a promising leading online technology company that works with sports leagues, fantasy sports sites and media companies. We are also excited about our future growth strategy as well as the current industry's rapid expansion both in the U.S. and globally. Our results in 2020 reflect the substantial reduction of our ongoing operations which were impacted by the COVID-19 pandemic. During 2020, the Company continued implementing its efficiency plan and reduced its operational expenses which contributed to improved operating margins. Excluding the impact of one-time non-cash impairment charges, our net loss for the second half of 2020 was $(224,000) on a non-GAAP basis. In June 2019, we introduced Omnis - Contact Center Software with “Out-Of-The-Box” capabilities and open channel architecture. During the end of 2019, we started to see initial revenues from this new product, which we consider to be our main growth engine in the coming years. While our marketing of this new product was delayed by the onset of the pandemic we intend to accelerate its introduction in 2021.” Mr. Hess concluded, “we are looking forward to completing the SharpLink transaction in the near future and beginning a new chapter in the life of our company.”

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM), call accounting and contact center software. Headquartered in Israel, MTS markets its solutions through wholly-owned subsidiaries in Israel, the U.S and Hong Kong, as well as through distribution channels. For more information please visit the MTS web site: www.mtsint.com.

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s ability to achieve  profitable operations, its ability  to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, the impact of COVID-19 on the Company and its customers, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel,  general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission.

Contacts:
 
Ofira Bar
CFO
Tel: +972-9-7777-540
Email: ofira.bar@mtsint.com          

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

   
December 31,
 
   
2020
   
2019
 
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
1,504
   
$
1,732
 
Restricted cash
   
1,003
     
1,464
 
Trade receivables (net of allowance for credit losses of $69 and $75, at December 31, 2019 and 2020, respectively
   
407
     
499
 
Other accounts receivable and prepaid expenses (Note 3)
   
399
     
236
 
Assets of discontinued operations (Note 1b)
   
178
     
172
 
                 
Total current assets
   
3,491
     
4,103
 
                 
NON- CURRENT ASSETS:
               
                 
Severance pay fund
   
252
     
653
 
Property and equipment, net (Note 4)
   
35
     
62
 
Deferred taxes (Note 7)
   
171
     
-
 
Goodwill
   
1,502
     
3,225
 
                 
Total non-current assets
   
1,960
     
3,940
 
                 
Total assets
 
$
5,451
   
$
8,043
 

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)

   
December 31,
 
   
2020
   
2019
 
             
LIABILITIES AND SHAREHOLDERS' EQUITY
           
             
CURRENT LIABILITIES:
           
Trade payables
 
$
114
   
$
149
 
Deferred revenues
   
745
     
962
 
Accrued expenses and other liabilities (Note 5)
   
1,769
     
2,317
 
Liabilities of discontinued operations (Note 1b)
   
496
     
516
 
                 
Total current liabilities
   
3,124
     
3,944
 
                 
LONG-TERM LIABILITIES:
               
Accrued severance pay
   
306
     
831
 
Deferred tax liability (Note 7)
   
-
     
163
 
                 
Total long-term liabilities
   
306
     
994
 
                 
COMMITMENTS AND CONTINGENT LIABILITIES (Note 6)
               
                 
SHAREHOLDERS' EQUITY (Note 9):
               
Share capital -
               
Ordinary shares of NIS 0.03 par value: Authorized: 17,000,000 shares at December 31, 2020 and 2019; Issued: 4,426,791 and 3,614,208 shares at December 31, 2020 and 2019, respectively; Outstanding 4,424,991 and 3,612,408 shares at December 31, 2020 and 2019, respectively
   
37
     
30
 
Preferred Shares of NIS 0.03 par value: Authorized: 3,000,000 shares at December 31, 2020 and 2019; Issued and Outstanding: 1,831,579 and 2,008,772 shares at December 31, 2020 and 2019, respectively
   
15
     
16
 
Additional paid-in capital
   
31,360
     
30,635
 
Treasury shares at cost (1,800 Ordinary shares at December 31, 2020 and 2019)
   
(29
)
   
(29
)
Accumulated deficit
   
(29,362
)
   
(27,547
)
                 
Total shareholders' equity
   
2,021
     
3,105
 
                 
Total liabilities and shareholders' equity
 
$
5,451
   
$
8,043
 

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)

   
Twelve months ended
December 31,
   
Six months ended
December 31,
 
   
2020
   
2019
   
2020
   
2019
 
   
Audited
   
Audited
   
Unaudited
   
Unaudited
 
Revenues:
                       
Services
 
$
3,383
   
$
4,273
   
$
1,568
   
$
2,094
 
Product sales
   
635
     
920
     
347
     
499
 
                                 
Total revenues
   
4,018
     
5,193
     
1,915
     
2,593
 
                                 
Cost of revenues:
                               
Services
   
1,511
     
1,486
     
818
     
701
 
Product sales
   
284
     
371
     
111
     
175
 
                                 
Total cost of revenues
   
1,795
     
1,857
     
929
     
876
 
                                 
Gross profit
   
2,223
     
3,336
     
986
     
1,717
 
                                 
Operating expenses:
                               
Research and development
   
-
     
545
     
-
     
277
 
Selling and marketing
   
752
     
817
     
293
     
264
 
General and administrative
   
1,867
     
1,890
     
930
     
912
 
 Goodwill impairment
   
1,723
     
254
     
1,106
     
254
 
Total operating expenses
   
4,342
     
3,506
     
2,329
     
1,707
 
                                 
Operating income (loss)
   
(2,119
)
   
(170
)
   
(1,343
)
   
10
 
Financial income (expenses), net
   
16
     
(18
)
   
8
     
7
 
                                 
Income (loss) before taxes on income
   
(2,103
)
   
(188
)
   
(1,335
)
   
17
 
Taxes on income (tax benefit), net
   
(325
)
   
4
     
(217
)
   
3
 
                                 
Net Income (loss) from continuing operations
   
(1,778
)
   
(192
)
   
(1,118
)
   
14
 
                                 
Income (loss) from discontinued operations
   
(37
)
   
57
     
(36
)
   
71
 
                                 
Net Income (loss)
 
$
(1,815
)
 
$
(135
)
 
$
(1,154
)
 
$
85
 
                                 
Net loss per share:
                               
Basic and diluted net profit (loss) per share from continuing operations
 
$
(0.29
)
 
$
(0.04
)
 
$
(0.16
)
 
$
0.00
 
Basic and diluted net profit (loss) per share from discontinued operations
   
( 0.01
)
   
0.01
     
( 0.01
)
   
0.01
 
Basic and diluted net loss per share
 
$
(0.30
)
 
$
(0.03
)
 
$
( 0.17
)
 
$
0.01
 
Weighted average number of shares used in computing basic net profit (loss) per share
   
5,954,795
     
5,013,374
     
6,873,156
     
5,864,372
 
                                 
Weighted average number of shares used in computing diluted net profit (loss) per share
   
5,954,795
     
5,081,865
     
6,873,156
     
6,031,193
 

RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except share and per share data)

   
Twelve months ended
December 31,
   
Six months ended
December 31,
 
   
2020
   
2019
   
2020
   
2019
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
                         
GAAP net income (loss) from continuing operations
   
(1,778
)
   
(192
)
   
(1,118
)
   
14
 
Stock-based compensation expenses
   
21
     
47
     
7
     
34
 
Intangible assets amortization, net of tax effects
   
-
     
21
     
-
     
11
 
Goodwill impairment, net of tax effect
   
1,381
     
203
     
887
     
203
 
                                 
Non-GAAP net Income (loss)
 
$
(376
)
 
$
79
   
$
(224
)
 
$
262
 
                                 
Net loss per share:
                               
                                 
GAAP basic and diluted net profit (loss) per share
 
$
(0.29
)
 
$
(0.04
)
 
$
(0.16
)
 
$
0.00
 
                                 
Non-GAAP basic and diluted net profit (loss) per share
 
$
(0.06
)
 
$
0.02
   
$
(0.03
)
 
$
0.04
 
                                 
Weighted average number of shares used in computing non-GAAP basic net profit (loss) per share
   
5,954,795
     
5,013,374
     
6,873,156
     
5,864,372
 
                                 
Weighted average number of shares used in computing non-GAAP diluted net profit (loss) per share
   
5,954,795
     
5,081,865
     
6,873,156
     
6,031,193
 

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