Actelis Networks, Inc. (NASDAQ: ASNS) (“Actelis”
or the “Company”), a market leader in cyber-hardened,
rapid-deployment networking solutions for wide-area IoT networks,
today reported financial results for the fiscal third quarter and
first nine months ended September 30, 2022.
Financial Highlights:
- Total revenue increased 5% year-over-year to $6.3 million for
the nine-months ended September 30, 2022.
- Delivery of Sales to IoT- customers grew 45% year-over-year for
the nine-months ended September 30, 2022.
- Backlog of customer open orders of $3.9 million (of which 84%
are for IoT customers) as of September 30, 2022.
- Gross Margin at 48.3% for the nine-months ended September 30,
2022 compared to 50% in the prior year period, due to ongoing
inflationary and supply-chain pressures.
- Significant purchase price variance incurred ($164,000) during
Q3 2022 for premium purchases of components that are in interim
shortage, in part enabling Q4-2022 and Q1-2023 deliveries.
- Non-GAAP adjusted EBITDA at ($2.6) million for the nine-months
ended September 30, 2022 compared to ($0.7) million in the prior
year period as the company continues to invest in sales and
marketing, and is operating as a public company post its completed
IPO in May 2022.
Operational Updates:
- Actelis strengthened its marketing team with the hiring of Sean
Renn, Global Vice President of Marketing & Communications. Sean
spent the last 14 years leading the marketing efforts for parking
and transit giant Flowbird (formerly Parkeon) in local government
and public transportation.
- Actelis has significantly increased digital marketing
activities and industry trade shows exhibiting in 14 conferences
during Q3 focused on ITS/ITE, Federal/military, and
telecommunications including major conferences such as ITS World
Congress in Los Angeles and ISE Expo 2022 in Denver.
- Actelis strengthened its America’s sales team by hiring Michael
Mercier, Director of Sales of Intelligent Traffic Systems (ITS).
Michael possesses over 15 years of experience in selling to Federal
and Local Governments which is where he is focused now.
- Actelis is working to expand channel and distribution coverage
in many countries and verticals in various countries in Asia such
as Singapore, Vietnam, Malaysia and India, as well as in the US and
Europe. In October we announced our new partnership with Norseman,
a US based Federal and Military system integrator who now has our
product and services portfolio included in the SEWP acquisition
contract by all federal and military agencies.
- Kevin Foster has joined the Actelis Advisory Board, bringing
with him more than 30 years of experience in Technology,
Architecture and Innovation in networking technologies and
standards development following his career in British Telecom and
former chairman and president of the Broadband Forum.
Management Commentary:
“Actelis is moving fast to increase its market presence and
impact in many markets and verticals. Since the beginning of 2022,
we nearly doubled our Americas Sales and Marketing Team, launched
aggressive digital and tangible marketing plans, and added multiple
channel partners and resellers. New, powerful products have been
launched, with faster speeds and better cyber protection
capabilities, and much progress has been made on closing the gap in
component shortages and backlog delivery catch up and cleared
nearly 60% of the backlog from the beginning of the year,” said
Tuvia Barlev, chairman and CEO of Actelis.
Barlev added: “Through our engagement with existing and new
partners and customers, I’m pleased with the strong interest we’re
gaining. We are excited by the prospects for our Company resulting
from U.S. Federal, State and Local agencies, as well as airports,
transportation and utility companies, increasing their demand for
IoT digitization – they are seeking solutions that are rapid to
deploy and highly cost-effective. As our offering enables highly
efficient use of existing infrastructure, it meets their needs to
move rapidly, grow and conserve budget at the same time. Despite
the challenging economic climate, worldwide investments in our
target verticals continue to grow. We very excited to help our
customers extend and do more with their budgets, move faster
towards a digital world.”
Fiscal Third Quarter and First Nine Months of 2022
Financial Results:
Revenues for the three months ended September
30, 2022, amounted to $1.35 million, compared to $1.4 million for
the three months ended September 30, 2021. The third quarter of the
year is typically a slower quarter due to seasonal effects. In the
third quarter of 2022, we made significant progress with many
component-related challenges and place orders to secure Q4 2022 and
beyond deliveries; however, some of this catch-up on component
shortages was not yet converted to revenue in the quarter.
Revenues for the nine months ended September 30, 2022, amounted
to $6.3 million, compared to $6.0 million for the nine months ended
September 30, 2021. The increase from the corresponding period was
primarily attributable to an increase of $650,000 of revenues
generated from Europe, the Middle East and Africa, mostly
attributed to the IoT markets, offset by a decrease of $348,000 in
revenues generated from North America and Asia Pacific, mostly
attributed to the Telecom market.
Cost of revenues for the three months ended
September 30, 2022, amounted to $0.8 million compared to $0.9
million for the three months ended September 30, 2021.
Cost of revenues for the nine months ended September 30, 2022,
amounted to $3.3 million compared to $3.0 million for the nine
months ended September 30, 2021. The increase from the
corresponding period was mainly due to the increase in revenues, as
well as a change in the product mix and an increase in purchase
price variance associated with the cost of components,
manufacturing and logistics driven by supply shortages and shipment
costs.
Gross profit amounted to $0.5 million, compared
to $0.5 million for the three months ended September 30, 2021.
Gross profit for the nine months ended September 30, 2022, was
$3.0 million, or 48% of revenue, compared to $3.0 million, or 50%
of revenue for the nine months ended September 30, 2021.
Research and development expenses for the three
months ended September 30, 2022, amounted to $0.7 million compared
to $0.6 million for the three months ended September 30, 2021. The
increase was mainly due to the acceleration of investments,
primarily an increase in payroll expense in the amount of $131,000,
in research and development.
Research and development expenses for the nine months ended
September 30, 2022, amounted to $2.0 million compared to $1.8
million for the nine months ended September 30, 2021. The increase
was mainly due to the acceleration of investments, primarily an
increase in payroll expenses in the amount of $230,000.
Sales and marketing expenses for the three
months ended September 30, 2022, amounted to $0.8 million compared
to $0.6 million for the three months ended September 30, 2021. The
increase from the corresponding period was mainly associated with
increased investments in sales and marketing, specifically in
payroll expenses in the amount of $97,000, mainly due to hiring of
sales and marketing employees and increase in travel expenses in
the amount of $66,000, offset by a decrease in professional
services in the amount of $42,000.
Sales and marketing expenses for the nine months ended September
30, 2022, amounted to $2.4 million compared to $1.6 million for the
nine months ended September 30, 2021. The increase in comparison
with the corresponding period was mainly associated with increased
sales compensation due to higher revenue of $192,000, increased
investments in sales and marketing, specifically in payroll
expenses in the amount of $382,000, mainly due to hiring of sales
and marketing employees, increase in other professional services in
the amount of $41,000 and increase in travel expenses in the amount
of $138,000.
General and administrative expenses for the
three months ended September 30, 2022, amounted to $1.0 million
compared to $0.3 million for the three months ended September 30,
2021. The increase was mainly due to payroll and professional
services expenses attributed to operating as a public company
following our IPO completed in May 2022.
General and administrative expenses for the nine months ended
September 30, 2022, amounted to $2.7 million compared to $0.9
million for the nine months ended September 30, 2021. The increase
was mainly due to payroll and professional services expenses
attributed to the work on the IPO in the amount of $1.0 million,
completed in May 2022, as well as to operating as a public
company.
Operating loss for the three months ended
September 30, 2022, was $2.0 million, compared to an operating
income of $0.9 million for the three months ended September 30,
2021. The increase was mainly due higher expenses associated
primarily with investment in sales and marketing and expenses
attributed to operating as a public company.
Operating loss for the nine months ended September 30, 2022, was
$4.1 million, compared to an operating loss of $1.3 million for the
nine months ended September 30, 2021. The increase was mainly due
to higher expenses associated primarily with investment in sales
and marketing and expenses attributed to the IPO completed in May
2022 and for expenses associated with Operating as a public company
post IPO. Additional loss was incurred due to delays in supplies,
due to shortages.
Financial expense, net for the three months
ended September 30, 2022, was $0.2 million compared to $0.3 million
for the three months ended September 30, 2021. The decrease is
attributed mostly to exchange rate differences.
Financial expense, net for the nine months ended September 30,
2022, was $4.4 million compared to $0.6 million for the nine months
ended September 30, 2021. During the nine months ended September
30, 2022, we incurred financial expenses mainly due to increases in
fair value of various financial instruments, such as convertible
loan, note and warrants in the amount of $4.5 million up until the
IPO when such instruments converted to equity, and had income in
the amount of $0.7 million, from exchange rates differences. Since
all convertible loans and nearly all warrants we had outstanding
converted to equity in connection with the IPO, we do not expect
additional material financial expenses going forward for these
loans and warrants compared to those we incurred in 2020, 2021 and
the first two quarters of 2022.
Net loss for the three months ended September
30, 2022, was $2.2 million, compared to net loss of $1.2 million
for the three months ended September 30, 2021. The increase was
primarily due to the increase in operating expenses mainly due to
investment in sales and marketing, as well as expenses attributed
to operating as a public company.
Net loss for the nine months ended September 30, 2022, was $8.5
million, compared to net loss of $1.9 million for the nine months
ended September 30, 2021. The increase was primarily due to the
increase in financial expenses, resulting from the increases in
fair value of various financial instruments, as well as an increase
in operating expenses mainly due to investment in sales and
marketing, as well as expenses attributed to our IPO in May 2022
and operating as a public company.
Adjusted EBITDA loss, a non-GAAP measurement of
operating performance (reconciled below to Net Loss), for the three
months ended September 30, 2022, was $1.7 million, compared to $0.8
million in the comparable year-ago period. This was primarily a
result of the increase in our Sales and Marketing investment as
well as reduction of gross margin due to component, manufacturing
and logistics costs.
Non-GAAP adjusted EBITDA loss was $2.6 million for the nine
months ended September 30, 2022, compared to $0.7 million EBITDA in
the comparable year-ago period. This was primarily attributed to
the increase in our Sales and Marketing investment as well as
reduction of gross margin due to component, manufacturing and
logistics costs.
The Company reported a balance sheet with $16.3
million of total assets compared to $4.7 million as of December 31,
2021, $10.8 million of total liabilities compared to $18.7 million
as of December 31, 2021, and $5.5 million of shareholders’ equity
compared to a capital deficiency of ($19.6) million as of December
31, 2021.
Conference Call
Actelis management will hold a conference call today, November
11, 2022, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to
discuss these results.
Company CEO Tuvia Barlev and CFO Yoav Efron will host the
call.
U.S. & Canada dial-in
(toll-free): (800) 715-9871International
dial-in (toll): +1(646)
307-1963Conference ID: 6957723
Please call the conference telephone number 10
minutes prior to the start time. An operator will register your
name and organization. If you have any difficulty connecting with
the conference call, please contact Gateway Investor Relations at
949-574-3860.
The conference call will also be broadcast live
and available for replay here and via the Investor Relations
section of Actelis Network’s website.
A telephonic replay of the conference call will
be available after 8:30 p.m. Eastern time on the same day through
November 18, 2022.
US Toll-free replay number: (800)
770-2030International replay number (toll): +1(609)
800-9909Conference ID: 6957723
About Actelis Networks,
Inc.
Actelis Networks 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.
Investor Relations Contact:Matt Glover and Ralf
EsperGateway Investor Relations+1
949-574-3860ASNS@gatewayir.com
-Financial Tables to Follow-
|
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
BALANCE SHEETSUNAUDITED |
|
|
|
|
|
|
|
|
|
September 30,2022 |
|
|
December 31,2021 |
|
|
|
U. S. dollars in thousands(except for share andper share
amounts) |
|
Assets |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
10,206 |
|
|
|
693 |
|
Short term bank deposit |
|
|
68 |
|
|
|
- |
|
Restricted cash |
|
|
650 |
|
|
|
- |
|
Trade receivables, net of allowance for doubtful debts of $124 and
$61 as of September 30, 2022, and December 31, 2021 |
|
|
2,110 |
|
|
|
2,147 |
|
Inventories |
|
|
1,062 |
|
|
|
897 |
|
Prepaid expenses and other current assets |
|
|
649 |
|
|
|
398 |
|
TOTAL CURRENT
ASSETS |
|
|
14,745 |
|
|
|
4,135 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
108 |
|
|
|
103 |
|
Prepaid expenses |
|
|
245 |
|
|
|
- |
|
Restricted cash |
|
|
89 |
|
|
|
102 |
|
Severance pay fund |
|
|
239 |
|
|
|
266 |
|
Operating lease right of use assets |
|
|
818 |
|
|
|
- |
|
Long term deposits |
|
|
81 |
|
|
|
78 |
|
TOTAL NON-CURRENT
ASSETS |
|
|
1,580 |
|
|
|
549 |
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
|
16,325 |
|
|
|
4,684 |
|
|
|
|
|
|
|
|
|
|
|
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (continued)UNAUDITED |
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
|
|
U.S. dollars in thousands (except for share and per share
amounts) |
|
Liabilities and redeemable convertible preferred stock and
shareholders’ equity (capital deficiency) |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Current maturities of long-term loans |
|
|
777 |
|
|
|
758 |
|
Warrants |
|
|
27 |
|
|
|
177 |
|
Trade payables |
|
|
853 |
|
|
|
1,920 |
|
Deferred revenues |
|
|
625 |
|
|
|
673 |
|
Employee and employee-related obligations |
|
|
695 |
|
|
|
703 |
|
Accrued royalties |
|
|
1,006 |
|
|
|
818 |
|
Operating lease liabilities |
|
|
480 |
|
|
|
- |
|
Other accrued liabilities |
|
|
1,128 |
|
|
|
902 |
|
TOTAL CURRENT LIABILITIES |
|
|
5,591 |
|
|
|
5,951 |
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Long-term loan, net of current maturities |
|
|
4,374 |
|
|
|
5,473 |
|
Deferred revenues |
|
|
193 |
|
|
|
- |
|
Warrants |
|
|
- |
|
|
|
1,972 |
|
Convertible loan |
|
|
- |
|
|
|
4,905 |
|
Operating lease liabilities |
|
|
276 |
|
|
|
- |
|
Accrued severance |
|
|
276 |
|
|
|
315 |
|
Other long-term liabilities |
|
|
52 |
|
|
|
79 |
|
TOTAL NON-CURRENT
LIABILITIES |
|
|
5,171 |
|
|
|
12,744 |
|
TOTAL
LIABILITIES |
|
|
10,762 |
|
|
|
18,695 |
|
COMMITMENTS AND
CONTINGENCIES (Note 8) |
|
|
|
|
|
|
|
|
REDEEMABLE CONVERTIBLE PREFERRED STOCK: |
|
|
|
|
|
|
|
|
CONVERTIBLE PREFERRED
STOCK |
|
|
|
|
|
|
|
|
$0.0001 par value, 10,000,000
authorized as of September 30, 2022, and 7,988,691 authorized as of
December 31, 2021. |
|
|
|
|
|
|
|
|
SERIES A |
|
|
|
|
|
|
|
|
0 and 4,986,039 shares issued
and outstanding as of September 30, 2022, and December 31, 2021:
aggregate liquidation preference of $5,091 as of December 31, 2021
- $2,858. |
|
|
|
|
|
|
|
|
SERIES B |
|
|
|
|
|
|
|
|
0 and 2,745,004 shares issued
and outstanding as of September 30, 2022, and December 31, 2021:
aggregate liquidation preference of $4,271 as of December 31, 2021
- $2,727. |
|
|
- |
|
|
|
5,585 |
|
TOTAL REDEEMABLE
CONVERTIBLE PREFERRED STOCK |
|
|
- |
|
|
|
5,585 |
|
SHAREHOLDERS’ EQUITY
(CAPITAL DEFICIENCY): |
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value: 30,000,000 and 11,009,315 shares
authorized as of September 30, 2022, and December 31, 2021,
respectively; 17,317,572 and 2,047,641 shares issued and
outstanding as of September 30, 2022, and December 31, 2021,
respectively |
|
|
1 |
|
|
|
* |
|
Non-voting common stock, $0.0001 par value: 2,803,774 shares
authorized as of September 30, 2022, and December 31, 2021,
respectively; 0 and 1,783,773 shares issued and outstanding as of
September 30, 2022, and December 31, 2021. |
|
|
- |
|
|
|
* |
|
Additional paid-in
capital |
|
|
36,482 |
|
|
|
2,824 |
|
Accumulated deficit |
|
|
(30,920 |
) |
|
|
(22,420 |
) |
TOTAL SHAREHOLDERS’
EQUITY (CAPITAL DEFICIENCY) |
|
|
5,563 |
|
|
|
(19,596 |
) |
TOTAL LIABILITIES AND
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY
(CAPITAL DEFICIENCY) |
|
|
16,325 |
|
|
|
4,684 |
|
* Represents an amount less than $1 thousands.
The accompanying notes are an integral
part of these condensed consolidated financial statements
(Unaudited).
|
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS(UNAUDITED) |
|
|
|
|
|
|
|
|
|
Three months endedSeptember 30, |
|
|
Nine months endedSeptember 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
U.S. dollars in thousands (except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
1,348 |
|
|
|
1,422 |
|
|
|
6,297 |
|
|
|
5,995 |
|
COST OF
REVENUES |
|
|
813 |
|
|
|
896 |
|
|
|
3,258 |
|
|
|
3,002 |
|
GROSS
PROFIT |
|
|
535 |
|
|
|
526 |
|
|
|
3,039 |
|
|
|
2,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenses, net |
|
|
723 |
|
|
|
552 |
|
|
|
2,049 |
|
|
|
1,818 |
|
Sales and marketing expenses,
net |
|
|
790 |
|
|
|
627 |
|
|
|
2,357 |
|
|
|
1,576 |
|
General and administrative
expenses, net |
|
|
1,028 |
|
|
|
255 |
|
|
|
2,730 |
|
|
|
906 |
|
TOTAL OPERATING
EXPENSES |
|
|
2,541 |
|
|
|
1,434 |
|
|
|
7,136 |
|
|
|
4,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
|
(2,006 |
) |
|
|
(908 |
) |
|
|
(4,097 |
) |
|
|
(1,307 |
) |
Financial expenses, net |
|
|
(201 |
) |
|
|
(279 |
) |
|
|
(4,403 |
) |
|
|
(592 |
) |
NET COMPREHENSIVE LOSS
FOR THE PERIOD |
|
|
(2,207 |
) |
|
|
(1,187 |
) |
|
|
(8,500 |
) |
|
|
(1,899 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders – basic and diluted |
|
$ |
(0.13 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.88 |
) |
|
$ |
(0.93 |
) |
Weighted average number of
common stock used in computing net loss per share – basic and
diluted |
|
|
17,317,532 |
|
|
|
2,049,433 |
|
|
|
9,687,205 |
|
|
|
2,048,241 |
|
The accompanying notes are an integral
part of these condensed consolidated financial statements
(Unaudited).
Non-GAAP Financial Measures
(U.S. dollars in thousands) |
|
Three monthsEndedSeptember 30,2022 |
|
|
Three monthsEndedSeptember 30,2021 |
|
|
Nine monthsEndedSeptember 30,2022 |
|
|
Nine monthsEndedSeptember 30,2021 |
|
Revenues |
|
$ |
1,348 |
|
|
$ |
1,422 |
|
|
$ |
6,297 |
|
|
$ |
5,995 |
|
GAAP net loss |
|
|
(2,207 |
) |
|
|
(1,187 |
) |
|
|
(8,500 |
) |
|
|
(1,899 |
) |
Interest Expense |
|
|
201 |
|
|
|
279 |
|
|
|
4,403 |
|
|
|
592 |
|
Tax Expense |
|
|
28 |
|
|
|
6 |
|
|
|
102 |
|
|
|
69 |
|
Fixed asset depreciation expense |
|
|
9 |
|
|
|
7 |
|
|
|
29 |
|
|
|
31 |
|
Stock based compensation |
|
|
13 |
|
|
|
8 |
|
|
|
41 |
|
|
|
28 |
|
Research and development, capitalization |
|
|
143 |
|
|
|
119 |
|
|
|
423 |
|
|
|
472 |
|
Other one-time costs and expenses |
|
|
115 |
|
|
|
- |
|
|
|
916 |
|
|
|
- |
|
Non-GAAP Adjusted EBITDA |
|
|
(1,698 |
) |
|
|
(768 |
) |
|
|
(2,586 |
) |
|
|
(707 |
) |
GAAP net loss margin |
|
|
(163.72 |
)% |
|
|
(83.47 |
)% |
|
|
(134.98 |
)% |
|
|
(31.67 |
)% |
Adjusted EBITDA margin |
|
|
(125.96 |
)% |
|
|
(54.01 |
)% |
|
|
(41.07 |
)% |
|
|
(11.79 |
)% |
(U.S. dollars in thousands Revenues) |
|
For the three months endedSeptember 30 |
|
|
For the nine months endedSeptember 30 |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
1,348 |
|
|
$ |
1,422 |
|
|
$ |
6,297 |
|
|
$ |
5,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog of open
Orders(1) |
|
$ |
3,917 |
|
|
$ |
5,153 |
|
|
$ |
3,917 |
|
|
$ |
5,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(UNAUDITED) |
|
|
|
|
|
|
Nine months endedSeptember 30, |
|
|
|
2022 |
|
|
2021 |
|
|
|
U.S. dollars in thousands |
|
CASH FLOWS
FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net loss for the period |
|
|
(8,500 |
) |
|
|
(1,899 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
29 |
|
|
|
29 |
|
Changes in fair value related to warrants to lenders |
|
|
1,068 |
|
|
|
- |
|
Inventories write-downs |
|
|
106 |
|
|
|
55 |
|
Exchange rate differences |
|
|
(798 |
) |
|
|
15 |
|
Share-based compensation |
|
|
41 |
|
|
|
28 |
|
Changes in fair value related to convertible loan |
|
|
1,648 |
|
|
|
- |
|
Changes in fair value related to convertible note |
|
|
1,753 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Trade receivables |
|
|
37 |
|
|
|
(30 |
) |
Net change in operating lease assets and liabilities |
|
|
(62 |
) |
|
|
- |
|
Inventories |
|
|
(271 |
) |
|
|
(30 |
) |
Prepaid expenses and other current assets |
|
|
(251 |
) |
|
|
(6 |
) |
Long term prepaid expenses |
|
|
(245 |
) |
|
|
- |
|
Trade payables |
|
|
(1,067 |
) |
|
|
(845 |
) |
Deferred revenues |
|
|
145 |
|
|
|
713 |
|
Other current liabilities |
|
|
180 |
|
|
|
258 |
|
Other long-term liabilities |
|
|
185 |
|
|
|
179 |
|
Other accrued liabilities |
|
|
226 |
|
|
|
55 |
|
Net cash used in operating activities |
|
|
(5,776 |
) |
|
|
(1,478 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Short term bank deposit |
|
|
(68 |
) |
|
|
- |
|
Purchase of property and equipment |
|
|
(34 |
) |
|
|
(6 |
) |
Net cash used in
investing activities |
|
|
(102 |
) |
|
|
(6 |
) |
CASH FLOWS
FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from exercise of options |
|
|
* |
|
|
|
* |
|
Proceeds from long-term debt, net of issuance costs |
|
|
- |
|
|
|
2,070 |
|
Proceeds from initial public offering and private placement |
|
|
18,712 |
|
|
|
- |
|
Underwriting discounts and commissions and other offering
costs |
|
|
(2,175 |
) |
|
|
- |
|
Repayment of long-term loan |
|
|
(509 |
) |
|
|
(192 |
) |
Net cash provided
by financing activities |
|
|
16,028 |
|
|
|
1,878 |
|
|
|
|
|
|
|
|
|
|
EFFECT OF
EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH |
|
|
46 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
INCREASE
IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
10,150 |
|
|
|
394 |
|
|
|
|
|
|
|
|
|
|
BALANCE OF
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE
PERIOD |
|
|
795 |
|
|
|
671 |
|
|
|
|
|
|
|
|
|
|
BALANCE OF
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE
PERIOD |
|
|
10,945 |
|
|
|
1,065 |
|
* Represents an amount
less than $1 thousands. |
|
|
|
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