Medigus Announces Record Fiscal Year 2021 Financial Results
May 02 2022 - 7:56AM
Medigus Ltd. (Nasdaq: MDGS) (“Medigus”), a technology company
engaged in advanced medical solutions, innovative internet
technologies and electric vehicle (“EV”) and charging solutions,
today reported financial results for the fiscal year ended December
31, 2021.
Key Highlights
- Generated
record revenues of $10.1 million for the full year 2021,
representing an increase of $9.6 million, or 1,805%, compared to
$0.5 million revenues in 2020
- Net income
reached a record $4 million in 2021, up from a net loss of $6.9
million in 2020
- Cash and cash
equivalents as of December 31, 2021 were $24 million, up from $22.4
million at year-end 2020
- Shareholders’
equity attributed to Medigus improved 114% to $49 million in 2021,
up from $23 million at year-end 2020
- During 2022 the
company expects to consolidate Gix Internet’s financial results.
Gix Internet Revenues for 2021 amounted to approx. $45 million
“Our record 2021 financial results demonstrate
the value in our approach to engage in early-stage technology
companies with high upside potential,” said Liron Carmel, CEO of
Medigus. “With key engagements and partnerships in healthcare
solutions, E-commerce and electric vehicles, Medigus is positioned
to benefit from the rapid growth of three of the world’s most
important technology sectors. The 2021 fiscal year was largely
shaped by the coronavirus pandemic and climate change, and the
technologies in which Medigus operates in offer viable long-term
solutions for the challenges posed by these major, market-shifting
trends with the potential for sustainable high growth in a post
pandemic world.”
“We achieved several key milestones in 2021,
including filing a draft registration statement for a planned IPO
of Jeffs’ Brands, our 50.03%-owned E-commerce subsidiary, as well
as activities that added tremendous value to other companies
throughout our group, including Eventer and Charging Robotics,”
continued Carmel. “Additionally, as announced earlier this month,
Gix Group, a company offering high-performance marketing technology
solutions, reported $45 million in revenue for 2021. With our plans
to increase ownership in Gix, we expect to consolidate it during
2022.”
“Looking ahead, our team remains dedicated to
creating new value for our shareholders. Through a combination of
high-revenue subsidiaries, well-considered investments in companies
we may take public, as well as new mergers and spin-offs of our
group companies, we expect to increase our performance and further
demonstrate why we believe Medigus represents an exceptional growth
opportunity for our investors,” concluded Carmel.
2021 Business Highlights
EV & Micro Mobility
- Revoltz (19.9%
owned by Medigus through its wholly owned subsidiary, Charging
Robotics Ltd.) completed the design and commenced prototype
manufacturing of its micro-mobility vehicle for last mile logistics
and food delivery.
- Medigus’ wholly
owned subsidiary Charging Robotics successfully completed a
proof-of-concept that demonstrated the capabilities of its EV
wireless charging robot.
- Charging
Robotics signed a definitive agreement with Automax Motors Ltd. for
exclusive distribution of its wireless robotic charging pad in
Israel and Greece for a period of five years, with an option to
extend for an additional five years.
Healthcare
- Polyrizon
(37.03% owned by Medigus) began in-vitro tests of its innovative
product candidate for protection against the Omicron variant of the
coronavirus during the fourth quarter. Data from this study,
reported in March 2022, demonstrated the potential of Polyrizon’s
PL-15 to reduce the infection rates of the highly transmissible
coronavirus Omicron variant BA.1 in Cell Culture Assay. In
addition, Polyrizon's pre-clinical data demonstrated potential to
prevent allergic reaction induced by house dust mites (HDM) and
Timothy grass pollen allergens and may also prevent respiratory
tract allergy reactions caused by other allergens.
Online Technologies
- Gix Internet (TASE: GIX) (41.56%
owned by Medigus on a fully diluted basis), reported revenues for
2021 amounted to $45.2 million (NIS 144.8 million), an increase of
19% compared to the revenues of $38.1 million (NIS 131.1 million)
in 2020, mainly following the acquisition of Cortex Media
Group.
- Jeffs’ Brands (50.03% owned by
Medigus), a data-driven e-commerce company operating on the Amazon
Marketplace, submitted a registration statement on Form F-1 to the
U.S. Securities and Exchange Commission for the potential initial
public offering of its ordinary shares in the US. The timing,
number of ordinary shares to be offered and the price range for the
proposed offering have not yet been determined.
- Eventer Technologies (47.69% owned
by Medigus), a smart ticketing platform enabling producers and
venues to create virtual conferences and events, signed a
memorandum of understanding with Safee. Under the terms of the MOU,
Eventer customers can create and sell NFTs related to digital
events on Safee’s platform, with Eventer and Safee operating
through a revenue share model based on commissions from NFT
sales.
Fiscal Year 2021 Financial Results
The Company generated record revenues of $10.1
million for fiscal year 2021, up $9.6 million, or 1,805%, compared
to $0.5 million for the year ended December 31, 2020. This increase
was mainly attributed to revenues from Jeffs' Brands, Eventer and
revenues received from Golden Grand as part of the technology
licensing agreement for the Ultrasonic Surgical Endostapler
(MUSE™).
Net income totaled approximately $4 million in
2021, compared to a net loss of $6.9 million in 2020. The increase
was primarily due to an increase in our revenues, in a gain from
the loss of control in our former subsidiary ScoutCam and a gain
from a sale of our investment in Automax.
Cash and Cash equivalents totaled $24 million as
of December 31, 2021, compared to $22.4 million on December 31,
2020. The increase was primarily due to net cash generated from
financing activities for the year ended December 31, 2021 amounting
to $19.1 million off-set by investment activities of $12.4
million.
About Medigus
Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is
a technology company that is focused on innovative growth
partnerships, mainly in advanced medical solutions, digital
commerce, and electric vehicle markets. Medigus’ affiliations in
the medical solutions arena consist of ownership in ScoutCam Inc.
(OTCQB: SCTC), and Polyrizon Ltd. The Company’s affiliates in
digital commerce include Gix Internet Ltd. (TASE: GIX), Jeffs’
Brands and Eventer Technologies Ltd. In the electric vehicle
market, Charging Robotics, Ltd. and Revoltz are also part of the
Company’s portfolio of technology solution providers. Medigus is
traded on the Nasdaq Capital Market. To learn more about Medigus’
advanced technologies, please visit
http://www.medigus.com/investor-relations.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 and other
Federal 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. Because such statements deal with
future events and are based on Medigus’ current expectations, they
are subject to various risks and uncertainties, and actual results,
performance or achievements of Medigus could differ materially from
those described in or implied by the statements in this press
release. For example, Medigus uses forward looking statements when
describing its plans to increase its ownership in Gix and
consolidate its and when describing potential activates and
restructures in connection with other investments.
The forward-looking statements contained or
implied in this press release are subject to other risks and
uncertainties, including those discussed in any filings with the
SEC. Except as otherwise required by law, Medigus undertakes no
obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. 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. Medigus is not
responsible for the contents of third-party websites.
Investor Relations Contact:Dave
GentryRedChip Companies Inc.1-800-RED-CHIP (733-2447)Or
407-491-4498MDGS@redchip.com
MEDIGUS LTD. CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION |
December 31, |
|
|
2021 |
|
2020 |
|
|
USD in thousands |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
24,025 |
|
22,363 |
|
Non-current assets held for sale |
- |
|
547 |
|
Trade accounts receivable |
408 |
|
96 |
|
Inventory |
1,227 |
|
243 |
|
Loan to an associate |
1,265 |
|
- |
|
Related party prepaid expenses |
999 |
|
- |
|
Financial assets at fair value through profit or loss |
3,315 |
|
- |
|
Other current assets |
415 |
|
796 |
|
|
31,654 |
|
24,045 |
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
Contract fulfillment assets |
- |
|
1,130 |
|
Property and equipment, net |
77 |
|
345 |
|
Right-of-use assets, net |
- |
|
104 |
|
Investments accounted for using the equity method |
17,240 |
|
1,663 |
|
Intangible assets |
8,321 |
|
495 |
|
Deferred offering costs |
836 |
|
- |
|
Retirement benefit assets, net |
- |
|
23 |
|
Financial assets at fair value through profit or loss |
1,602 |
|
4,530 |
|
|
28,076 |
|
8,290 |
|
|
|
|
|
|
TOTAL ASSETS |
59,730 |
|
32,335 |
|
|
|
|
|
|
MEDIGUS LTD. |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
|
|
|
|
|
December 31, |
|
|
2021 |
|
|
2020 |
|
|
USD in thousands |
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Trade accounts payables |
702 |
|
|
140 |
|
Short term loans |
816 |
|
|
- |
|
Short term related party loan |
111 |
|
|
- |
|
Current portion of long-term related party payable |
506 |
|
|
- |
|
Lease liabilities |
- |
|
|
60 |
|
Warrants at fair value |
692 |
|
|
1,039 |
|
Contract liabilities |
108 |
|
|
69 |
|
Liability to event producers |
1,556 |
|
|
539 |
|
Related parties |
616 |
|
|
139 |
|
Accrued expenses and other current liabilities |
1,532 |
|
|
1,528 |
|
|
6,639 |
|
|
3,514 |
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
Lease liabilities |
- |
|
|
47 |
|
Contract liabilities |
- |
|
|
2,580 |
|
Loans from related parties |
689 |
|
|
- |
|
Long-term related party payable |
711 |
|
|
|
|
Deferred tax liability |
236 |
|
|
- |
|
Retirement benefit obligation, net |
22 |
|
|
- |
|
|
1,658 |
|
|
2,627 |
|
|
|
|
|
|
|
TOTAL LIABILITIES |
8,297 |
|
|
6,141 |
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
Share capital – ordinary shares with no par value: |
|
|
|
|
|
authorized – December 31,2021 and December 31,2020 – 1,000,000,000
shares; issued and outstanding - December 31, 2021 – 477,002,560
shares December 31, 2020 – 316,442,738 shares |
- |
|
|
93,021 |
|
Share premium |
110,562 |
|
|
- |
|
Other capital reserves |
12,619 |
|
|
10,725 |
|
Warrants |
197 |
|
|
197 |
|
Accumulated deficit |
(74,188 |
) |
|
(80,982 |
) |
Equity attributable to owners of Medigus Ltd. |
49,190 |
|
|
22,961 |
|
Non-controlling interests |
2,243 |
|
|
3,233 |
|
|
51,433 |
|
|
26,194 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
59,730 |
|
|
32,335 |
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF INCOME/LOSS AND OTHER
COMPREHENSIVE INCOME/LOSS |
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
Revenues: |
|
Products |
8,933 |
|
|
491 |
|
|
188 |
|
Services |
1,185 |
|
|
40 |
|
|
85 |
|
|
10,118 |
|
|
531 |
|
|
273 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
Products |
4,938 |
|
|
988 |
|
|
370 |
|
Services |
379 |
|
|
46 |
|
|
85 |
|
|
5,317 |
|
|
1,034 |
|
|
455 |
|
|
|
|
|
|
|
|
|
|
Gross Profit (Loss) |
4,801 |
|
|
(503 |
) |
|
(182 |
) |
Research and development expenses |
1,045 |
|
|
997 |
|
|
609 |
|
Sales and marketing expenses |
1,988 |
|
|
471 |
|
|
326 |
|
General and administrative expenses |
9,964 |
|
|
5,494 |
|
|
3,081 |
|
Net change in fair value of financial assets at fair value
through profit or loss |
(713 |
) |
|
(797 |
) |
|
(92 |
) |
Share of net loss of associates accounted for using the
equity method |
2,149 |
|
|
170 |
|
|
216 |
|
Amortization of excess purchase price of
associates |
263 |
|
|
546 |
|
|
- |
|
Listing expenses |
- |
|
|
- |
|
|
10,098 |
|
Operating Profit (Loss) |
(9,895 |
) |
|
(7,384 |
) |
|
(14,420 |
) |
|
|
|
|
|
|
|
|
|
Gain upon loss of control in a subsidiary |
(11,465 |
) |
|
- |
|
|
- |
|
Gain from sale of an investment |
(2,025 |
) |
|
- |
|
|
- |
|
Other income |
(494 |
) |
|
- |
|
|
- |
|
Changes in fair value of warrants issued to
investors |
(484 |
) |
|
(338 |
) |
|
(142 |
) |
Changes in fair value of commitment to issue
shares |
75 |
|
|
- |
|
|
- |
|
Financial (income) loss net |
347 |
|
|
(205 |
) |
|
(99 |
) |
|
|
|
|
|
|
|
|
|
Profit (Loss) before taxes on income |
4,151 |
|
|
(6,841 |
) |
|
(14,179 |
) |
Tax (benefit) expense |
105 |
|
|
(9 |
) |
|
1 |
|
Net profit (loss) for the period |
4,046 |
|
|
(6,850 |
) |
|
(14,178 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
Items that may be reclassified to profit or
loss |
|
|
|
|
|
|
|
|
Share of other comprehensive income (loss) of consolidated
subsidiaries and associates accounted for using the equity
method |
191 |
|
|
8 |
|
|
(28 |
) |
Items that will not be reclassified to profit or
loss |
|
|
|
|
|
|
|
|
Share of other comprehensive income (loss) of consolidated
subsidiaries and associates accounted for using the equity
method |
(29 |
) |
|
27 |
|
|
(13 |
) |
Other comprehensive income (loss) for the
period |
162 |
|
|
35 |
|
|
(41 |
) |
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the
period |
4,208 |
|
|
(6,815 |
) |
|
(14,219 |
) |
|
|
|
|
|
|
|
|
|
Net Profit (loss) for the period is attributable
to: |
|
|
|
|
|
|
|
|
Owners of Medigus |
6,794 |
|
|
(4,325 |
) |
|
(14,178 |
) |
Non-controlling interests |
(2,748 |
) |
|
(2,525 |
) |
|
- |
|
|
4,046 |
|
|
(6,850 |
) |
|
(14,178 |
) |
Total comprehensive Profit (loss) for the period is
attributable to: |
|
|
|
|
|
|
|
|
Owners of Medigus |
6,881 |
|
|
(4,278 |
) |
|
(14,219 |
) |
Non-controlling interests |
(2,673 |
) |
|
(2,537 |
) |
|
- |
|
|
4,208 |
|
|
(6,815 |
) |
|
(14,219 |
) |
Earnings (Loss) per ordinary share attributed to Medigus ltd |
|
|
|
|
|
|
|
|
Basic |
0.01 |
|
|
(0.03 |
) |
|
(0.18 |
) |
Diluted |
0.01 |
|
|
(0.03 |
) |
|
(0.18 |
) |
|
|
|
|
|
|
|
|
|
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