Actelis Networks, Inc. (NASDAQ: ASNS) (“Actelis”
or the “Company”), a market leader in cyber-hardened, rapid
deployment Hybrid-Fiber networking solutions for wide area IoT
applications, today reported financial results for the fiscal third
quarter and nine months ended September 30, 2023.
“During the third quarter of 2023 we have seen a
good level of interest in our newly launched products, that are
providing solutions for rapid deployment, cost effective and secure
networking for critical infrastructure for our IoT and Federal
customers. We have also seen interest from several large network
operators in our new solutions aiming at connecting millions of
buildings and customers in multi-tenant-building (MDU)”, said Tuvia
Barlev, Chairman and CEO of Actelis. “Those products are expected
to start selling in 2024, following successful trials and
commercial agreements”.
“In Q3 of 2023 we experienced delays in closing
and converting some large opportunities to Revenues due to
seasonality during summertime, slow processing of tenders by
customers and some orders received too late in the quarter to be
delivered before quarter end. We expect to catch up on those delays
in the fourth quarter of 2023 and the following quarters. Our
target markets, now including new offerings such as our GigaLine
900 for the MDU market and our new federal cyber-safety (FIPS)
certification for military application, now enable additional
important opportunities for large expansion, and we remain excited
about our growth opportunities.”
"While we continue to reach new markets and
customers, we continue to implement cost-saving measures as
discussed in our second quarter report. It is our goal to reach
more than 20% reduction in Operating Expenses in 2024 compared to
2023. Cost savings can be realized as internal projects are coming
to completion and freeing up resources, and as operational and
commercial activities are relying more on outsourcing and reducing
fixed costs. Additionally, we have continued to align our business
to make sure we are most effective in our markets, and are focusing
resources on the verticals that are most promising. Cyber-Security,
Cyber-Aware Networking and Multi-Dwelling/Tenant Unit buildings
continue to be our focus forward,” Barlev added. “Our cost
reduction initiatives improve our balance sheet as we continue to
make progress. We are also working to refinance our debt to reduce
our restricted cash balance.”
Additionally, our Net Loss for the nine months
ended September 30, 2023 dramatically decreased by 48% to $4.4
million, compared to the nine months ended September 30, 2022. We
continue to aim towards reaching our break-even point.
“We have not seen impacts to our on-going
business from the geo-political conflict in the Middle-East,”
Barlev added.
Third Quarter and nine months of 2023
Financial Highlights:
- Revenues were $0.85 million for the third quarter of 2023
compared to $1.35 million in the year ago period, as significant
new orders expected to close in the third quarter were delayed to
the fourth quarter of the year.
- Revenues were $4.6 million for the nine months ended September
30, 2023, compared to $6.3 million in the year ago period, as new
orders were delayed to the fourth quarter of the year, and delivery
of sales to Telco customers declined 66% compared to the year ago
period. This includes a reduction in software license revenues
resulting from a 2 year license revenue received in 2022 for both
2022 and 2023, which accordingly was not received in 2023 and is
expected to renew in 2024.. New orders for the nine months ended
September 30, 2023, consisted of 74% from IoT customers compared to
49% in the year-ago period.
- Gross Margin was 34% for the nine months of 2023, compared to
48% for the year ago period driven by a product-software mix change
associated with the focus shift to IoT and the SW license renewal
from 2022 for 2 years, as discussed in the highlights above. This
license is expected to be renewed in 2024. The decline is also
driven by the delay of new significant orders to the fourth quarter
resulting in lower volume of sales driving fixed costs higher as
percentage of revenues and periodically reducing gross margin.
- Operating expenses for the third quarter 2023 were $2.35
million, flat compared to $2.35 million sequentially helped by cost
reductions implemented during the second quarter of 2023, offset by
investments in sales and marketing.
- Operating expenses for the third quarter 2023 decreased to
$2.35 million compared to $2.54 million in the year ago period, due
to cost reductions implemented during the second quarter of
2023.
- Net Loss is down 46% sequentially to $0.9 million for the third
quarter of 2023, compared to $1.6 million sequentially, and down
60% compared to $2.2 million in the year ago period, primarily
driven by financial income associated with warrant valuation
reduction, as well as foreign exchange rate differences.
- Net Loss was down 48% to $4.4 million for the nine months ended
September 30, 2023 compared to $8.5 million in the year ago period,
driven primarily by the conversion of the financial instruments
last year and financial income in the third quarter of 2023, as
well as foreign exchange rate differences.
- Non-GAAP adjusted EBITDA loss was $1.76 million in the third
quarter compared to $1.7 million in the year ago period driven by
the reduction in revenues offset by reduction in operating
expenses, and $4.6 million for the nine months ended September 30,
2023 compared to $2.6 million in the year ago period driven
primarily by the delay in new orders to the fourth quarter and
following quarters, our hardware-software mix, as well as our
continued investment in sales and marketing and as a public
company.
Recent Company Highlights:
- Actelis received third party validation for compliance with
FIPS Cyber Protection Standard Required by Government Agencies,
testing performed by UL agencies. FIPS uses cryptographic security
and other measures to protect sensitive information. This standard
is recognized worldwide and is also used by organizations outside
of the government, such as finance, health care and manufacturing
organizations, as a best practice to ensure optimal security.
Completion of FIPS certification opens up those markets for
Actelis.
- Launched a new product – GigaLine 900. A Unique, Ultra Low
Power In-Building Gigabit Connectivity Solution for Instant Service
Provisioning of Gigabit services to Multi-Tenant Units, making it
very fast to install, simple, and cost effective for providers to
connect tenants to high-speed internet without installing fiber
throughout the building.
- We recently announced being selected and receiving a first
order to provide IoT networking solutions to European natural gas
system operator operating a high-pressure natural gas pipeline
network stretching over thousands of kilometers in a large European
country.
- Hired 2GT – an agency sales team expanding our reach to major
territories in Western Europe including Germany, Scandinavia and
more.
- Hired Gary Massone, previously Director of Sales at Actelis,
coming back to Actelis to help expand the scale of the Company’s
new products including the GigaLine 900 to telecom markets in the
United States.
- Michael Golob, former EVP of Operations at Frontier
Communications, joins Actelis as an advisor to help guide Company’s
introduction of new products with his vast experience.
- The Company continues to work on cost reduction measures with a
target to reach 20% reduction as we enter 2024, to align the
efficiency and effectiveness of its operation worldwide.
- The war in Israel has not affected the Company’s operations so
far, we are keeping a close look as the situation evolves and
preparing for any necessary changes.
- A significant portion of the Company’s operations is located in
Israel. During the 9 months ended September 30, 2023, the US Dollar
strengthened against the Israeli Shekel by 8% driving cost
savings.
Fiscal Third Quarter and Nine Months of
2023 Financial Results:
Revenues for the three months
ended September 30, 2023 amounted to $0.85 million compared to
$1.35 million for the three months ended September 30, 2022. The
decrease from the corresponding period was primarily attributable
to a decrease of $0.2 million of revenues generated from North
America and a decrease of $0.3 of revenues generated from Asia
Pacific and Europe, the Middle East and Africa.
Revenues for the nine months ended September 30,
2023 amounted to $4.6 compared to $6.3 million for the nine months
ended September 30, 2022. The decrease from the corresponding
period was primarily attributable to a decrease of $1.4 million in
revenues generated from North America and a decrease of $0.4
million in revenues generated from 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 September 30, 2023, amounted to $0.6 million compared
to $0.8 million for the three months ended September 30, 2022. The
decrease from the corresponding period was primarily attributable
to the decrease in revenues as well as change in the product
mix.
Cost of revenues for the nine months ended
September 30, 2023, amounted to $3.0 million compared to $3.3
million for the nine months ended September 30, 2022. The decrease
from the corresponding period was mainly due to the decrease in
revenues as well as change in the product mix, partially offset by
the higher effect of fixed costs as the percent of the lower
revenues.
Gross profit for the three
months ended September 30, 2023, amounted to $0.2 million or 27% of
revenue, compared to $0.5 million, or 40% of revenue for the three
months ended September 30, 2022. The decrease from the
corresponding period was mainly due to change in product mix,
partially offset by the higher effect of fixed costs as the percent
of the lower revenues.
Gross profit for the nine months ended September
30, 2023, amounted to $1.5 million or 34% of revenue, compared to
$3.1 million, or 48% of revenue for the nine months ended September
30, 2022. The decrease from the corresponding period was mainly due
to change in product mix, partially offset by the higher effect of
fixed costs as the percent of the lower revenues.
Research and development
expenses for the three months ended September 30, 2023,
amounted to $0.7 million compared to $0.7 million for the three
months ended September 30, 2022.
Research and development expenses for the nine
months ended September 30, 2023, amounted to $2.1 million compared
to $2.0 million for the nine months ended September 30, 2022. The
increase was mainly due to an increase in professional services
related to research and development.
Sales and marketing expenses
for the three months ended September 30, 2023, amounted to $0.7
million compared to $0.8 for the three months ended September 30,
2022. The decrease was mainly due to a decrease in commission and
travel expenses.
Sales and marketing expenses for the nine months
ended September 30, 2023 amounted to $2.3 million compared to $2.4
for the nine months ended September 30, 2022. The decrease was
mainly due to a decrease in commission and travel expenses.
General and administrative
expenses for the three months ended September 30, 2023,
amounted to $1.0 million compared to $1.0 million for the three
months ended September 30, 2022. There was a decrease driven by
cost reduction measures, offset by one time financing related
expenses.
General and administrative expenses for the nine
months ended September 30, 2023, amounted to $2.8 million compared
to $2.7 million for the nine months ended September 30, 2022.The
increase was driven by financing related expenses, partially offset
by cost reduction measures.
Operating loss for the three
months ended September 30, 2023, was $2.1 million, compared to an
operating loss of $2.0 million for the three months ended September
30, 2022. The increase was mainly due to the decreases in revenues
and gross margin.
Operating loss for the nine months ended
September 30, 2023, was $5.7 million, compared to an operating loss
of $4.1 million for the nine months ended September 30, 2022. The
increase was mainly due to the decreases in revenues and gross
margin while continuing to invest in Sales and Marketing.
Other Financial income, net and interest
expenses for the three months ended September 30, 2023,
was $1.3 million (including $0.2 million interest expenses)
compared to financial expenses, net of $0.2 million (including $0.2
million interest expenses) for the three months ended September 30,
2022. The increase in financial income was due to the decrease in
fair value of warrants in the amount of $1.3 million, as well as
exchange rate differences in the amount of $0.2 for the three
months ended September 30, 2023, compared to $0.05 in the three
months ended September 30, 2022.
Other Financial income, net and interest
expenses for the nine months ended September 30, 2023, was $1.3
million (including $0.5 million interest expenses) compared to
financial expenses, net of $4.4 million (including $0.6 million
interest expenses) for the nine months ended September 30, 2022.
During the nine months ended September 30, 2023, the Company
recorded financial income in connection with a decrease in fair
value of warrants in the amount of $1.7 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 $0.4 million from exchange rate
differences, compared to $0.7 during the nine months ended
September 30, 2022.
Net loss for the three months
ended September 30, 2023, was $0.9 million, compared to net loss of
$2.2 million for the three months ended September 30, 2022. This
decrease was primarily due to the increase in financial income, net
related to the decrease in fair value of
warrants.
Net loss for the nine months ended September 30,
2023, was $4.4 million, compared to net loss of $8.5 million for
the nine months ended September 30, 2022. This decrease was
primarily due to the decrease in revenues and gross margin offset
by a decrease in financial expenses, net 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 loss, a
non-GAAP measurement of operating performance (reconciled below to
Net Loss), for the three months ended September 30, 2023, was $1.76
million, compared to $1.7 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 nine
months ended September 30, 2023, was $4.6 million, compared to $2.6
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 as of September 30, 2023 with $11.2 million of total
assets compared to $14.8 million as of December 31, 2022, $10.3
million of total liabilities, commitments and contingencies
compared to $11.6 million as of December 31, 2022, and $0.9 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.
Investor Relations Contact:Kirin SmithPCG
AdvisoryKsmith@pcgadvisory.com
-Financial Tables to Follow-
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(UNAUDITED)(U. S. dollars in thousands except for
share and per share amounts) |
|
|
September 30,2023 |
|
|
December 31,2022 |
|
Assets |
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
682 |
|
|
|
3,943 |
|
Short term deposits |
|
254 |
|
|
|
1,622 |
|
Restricted bank deposits |
|
450 |
|
|
|
451 |
|
Trade receivables, net of allowance for credit losses of $125 as of
September 30, 2023, and December 31, 2022. |
|
715 |
|
|
|
3,034 |
|
Inventories |
|
2,698 |
|
|
|
1,179 |
|
Prepaid expenses and other current assets |
|
616 |
|
|
|
678 |
|
TOTAL CURRENT
ASSETS |
|
5,415 |
|
|
|
10,907 |
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
Property and equipment, net |
|
66 |
|
|
|
80 |
|
Prepaid expenses |
|
592 |
|
|
|
492 |
|
Restricted cash |
|
2,407 |
|
|
|
336 |
|
Restricted bank deposits |
|
2,036 |
|
|
|
2,027 |
|
Severance pay fund |
|
225 |
|
|
|
239 |
|
Operating lease right of use assets |
|
403 |
|
|
|
726 |
|
Long term deposits |
|
14 |
|
|
|
12 |
|
TOTAL NON-CURRENT
ASSETS |
|
5,743 |
|
|
|
3,912 |
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
11,158 |
|
|
|
14,819 |
|
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS
(continued)UNAUDITED(U. S. dollars in thousands except for share
and per share amounts) |
|
|
September 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 |
|
1,229 |
|
|
|
553 |
|
Warrants |
|
8 |
|
|
|
8 |
|
Trade payables |
|
2,192 |
|
|
|
1,781 |
|
Deferred revenues |
|
386 |
|
|
|
484 |
|
Employee and employee-related obligations |
|
732 |
|
|
|
793 |
|
Accrued royalties |
|
924 |
|
|
|
900 |
|
Current maturities of operating lease liabilities |
|
255 |
|
|
|
445 |
|
Other accrued liabilities |
|
905 |
|
|
|
1,238 |
|
TOTAL CURRENT LIABILITIES |
|
6,631 |
|
|
|
6,202 |
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
|
Long-term loan, net of current maturities |
|
3,175 |
|
|
|
4,625 |
|
Deferred revenues |
|
- |
|
|
|
164 |
|
Operating lease liabilities |
|
129 |
|
|
|
237 |
|
Accrued severance |
|
256 |
|
|
|
278 |
|
Other long-term liabilities |
|
25 |
|
|
|
48 |
|
TOTAL NON-CURRENT
LIABILITIES |
|
3,585 |
|
|
|
5,352 |
|
TOTAL
LIABILITIES |
|
10,216 |
|
|
|
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 September 30, 2023, December 31, 2022.
None issued and outstanding as of September 30, 2023, December 31,
2022. |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
WARRANTS TO PLACEMENT
AGENT (Note 11(e)) |
|
104 |
|
|
|
- |
|
SHAREHOLDERS’ EQUITY
(**): |
|
|
|
|
|
|
|
Common stock, $0.0001 par value: 30,000,000 shares authorized as of
September 30, 2023, and December 31, 2022; 2,694,179 and 1,737,986
shares issued and outstanding as of September 30,2023 and December
31, 2022, respectively |
|
1 |
|
|
|
1 |
|
Non-voting common stock, $0.0001 par value: 2,803,774 shares
authorized as of September 30, 2023, and December 31, 2022, None
issued and outstanding as of September 30, 2023, and December 31,
2022. |
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
38,594 |
|
|
|
36,666 |
|
Accumulated deficit |
|
(37,757 |
) |
|
|
(33,402 |
) |
TOTAL SHAREHOLDERS’
EQUITY |
|
838 |
|
|
|
3,265 |
|
TOTAL LIABILITIES AND
REDEEMABLE CONVERTIBLE PREFERRED STOCK WARRANTS TO PLACEMENT AGENT
AND SHAREHOLDERS’ EQUITY |
|
11,158 |
|
|
|
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 endedSeptember 30, |
|
|
Nine months endedSeptember 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
845 |
|
|
|
1,348 |
|
|
|
4,589 |
|
|
|
6,297 |
|
COST OF
REVENUES |
|
|
619 |
|
|
|
813 |
|
|
|
3,043 |
|
|
|
3,258 |
|
GROSS
PROFIT |
|
|
226 |
|
|
|
535 |
|
|
|
1,546 |
|
|
|
3,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
expenses, net |
|
|
691 |
|
|
|
723 |
|
|
|
2,117 |
|
|
|
2,049 |
|
Sales and marketing expenses,
net |
|
|
691 |
|
|
|
790 |
|
|
|
2,332 |
|
|
|
2,357 |
|
General and administrative
expenses, net |
|
|
971 |
|
|
|
1,028 |
|
|
|
2,805 |
|
|
|
2,730 |
|
TOTAL OPERATING
EXPENSES |
|
|
2,353 |
|
|
|
2,541 |
|
|
|
7,254 |
|
|
|
7,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
|
(2,127 |
) |
|
|
(2,006 |
) |
|
|
(5,708 |
) |
|
|
(4,097 |
) |
Interest expense |
|
|
(161 |
) |
|
|
(198 |
) |
|
|
(512 |
) |
|
|
(622 |
) |
Other Financial income
(expenses), net |
|
|
1,421 |
|
|
|
(3 |
) |
|
|
1,865 |
|
|
|
(3,781 |
) |
NET COMPREHENSIVE LOSS
FOR THE PERIOD |
|
|
(867 |
) |
|
|
(2,207 |
) |
|
|
(4,355 |
) |
|
|
(8,500 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders – basic and diluted |
|
$ |
(0.32 |
) |
|
$ |
(*) (1.27 |
) |
|
$ |
(*) (1.93 |
) |
|
$ |
(*) (8.77 |
) |
Weighted average number of
common stocks used in computing net loss per share – basic and
diluted |
|
|
2,685,626 |
|
|
|
(*) 1,731,753 |
|
|
|
(*) 2,254,235 |
|
|
|
(*) 968,721 |
|
|
(*) 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 Financial Measures
(U.S. dollars in thousands) |
|
Three months EndedSeptember 30,2023 |
|
|
Three months EndedSeptember 30,2022 |
|
|
Nine months EndedSeptember 30,2023 |
|
|
Nine months EndedSeptember 30,2022 |
|
Revenues |
|
$ |
845 |
|
|
$ |
1,348 |
|
|
$ |
4,589 |
|
|
$ |
6,297 |
|
GAAP net loss |
|
|
(867 |
) |
|
|
(2,207 |
) |
|
|
(4,355 |
) |
|
|
(8,500 |
) |
Interest Expense |
|
|
161 |
|
|
|
198 |
|
|
|
512 |
|
|
|
622 |
|
Other Financial expenses (income), net |
|
|
(1,421 |
) |
|
|
3 |
|
|
|
(1,865 |
) |
|
|
3,781 |
|
Tax Expense |
|
|
18 |
|
|
|
28 |
|
|
|
58 |
|
|
|
102 |
|
Fixed asset depreciation expense |
|
|
7 |
|
|
|
9 |
|
|
|
20 |
|
|
|
29 |
|
Stock based compensation |
|
|
106 |
|
|
|
13 |
|
|
|
298 |
|
|
|
41 |
|
Research and development, capitalization |
|
|
113 |
|
|
|
143 |
|
|
|
371 |
|
|
|
423 |
|
Other one-time costs and expenses |
|
|
120 |
|
|
|
115 |
|
|
|
343 |
|
|
|
916 |
|
Non-GAAP Adjusted EBITDA |
|
|
(1,763 |
) |
|
|
(1,698 |
) |
|
|
(4,618 |
) |
|
|
(2,586 |
) |
GAAP net loss margin |
|
|
(102.60 |
)% |
|
|
(163.72 |
)% |
|
|
(94.90 |
)% |
|
|
(134.98 |
)% |
Adjusted EBITDA margin |
|
|
(208.64 |
)% |
|
|
(125.96 |
)% |
|
|
(100.63 |
)% |
|
|
(41.07 |
)% |
|
|
|
|
For the three months endedSeptember
30 |
|
|
For the nine months endedSeptember
30 |
|
(U.S. dollars in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
$ |
845 |
|
|
$ |
1,348 |
|
|
$ |
4,589 |
|
|
$ |
6,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted EBITDA |
|
|
(1,763 |
) |
|
|
(1,698 |
) |
|
|
(4,618 |
) |
|
|
(2,586 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percentage of
revenues |
|
|
(208.64 |
)% |
|
|
(125.96 |
)% |
|
|
(100.63 |
)% |
|
|
(41.07 |
)% |
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(UNAUDITED) |
|
|
Nine months endedSeptember 30, |
|
|
2023 |
|
|
2022 |
|
|
U.S. dollars in thousands |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
Net loss for the period |
|
(4,355 |
) |
|
|
(8,500 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation |
|
20 |
|
|
|
29 |
|
Changes in fair value related to warrants to lenders and
investors |
|
(1,658 |
) |
|
|
1,068 |
|
Warrant issuance costs |
|
223 |
|
|
|
- |
|
Inventories write-downs |
|
132 |
|
|
|
106 |
|
Exchange rate differences |
|
(365 |
) |
|
|
(798 |
) |
Share-based compensation |
|
298 |
|
|
|
41 |
|
Changes in fair value related to convertible loan |
|
- |
|
|
|
1,648 |
|
Changes in fair value related to convertible note |
|
- |
|
|
|
1,753 |
|
Financial income from short and long term bank deposit |
|
(78 |
) |
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Trade receivables |
|
2,319 |
|
|
|
37 |
|
Net change in operating lease assets and liabilities |
|
25 |
|
|
|
(62 |
) |
Inventories |
|
(1,651 |
) |
|
|
(271 |
) |
Prepaid expenses and other current assets |
|
62 |
|
|
|
(251 |
) |
Long term prepaid expenses |
|
(100 |
) |
|
|
(245 |
) |
Trade payables |
|
411 |
|
|
|
(1,067 |
) |
Deferred revenues |
|
(262 |
) |
|
|
145 |
|
Other current liabilities |
|
(185 |
) |
|
|
406 |
|
Other long-term liabilities |
|
(30 |
) |
|
|
185 |
|
Net cash used in operating
activities |
|
(5,194 |
) |
|
|
(5,776 |
) |
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Short term deposits |
|
1,363 |
|
|
|
(68 |
) |
Long term Restricted bank
deposits |
|
75 |
|
|
|
- |
|
Long term deposits |
|
(2 |
) |
|
|
- |
|
Purchase of property and
equipment |
|
(6 |
) |
|
|
(34 |
) |
Net cash provided by (used in)
investing activities |
|
1,430 |
|
|
|
(102 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from exercise of
options |
|
10 |
|
|
|
* |
|
Proceeds from issuance of
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 |
|
(583 |
) |
|
|
(509 |
) |
Net cash provided by financing
activities |
|
2,586 |
|
|
|
16,028 |
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH |
|
(12 |
) |
|
|
46 |
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN
CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
(1,190 |
) |
|
|
10,150 |
|
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 |
|
3,089 |
|
|
|
10,945 |
|
* Represents an amount less than $1 thousands.
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
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