MONTVALE, N.J., Aug. 14, 2019 /PRNewswire/ -- MICT, Inc.
(Nasdaq: MICT), today announced financial results for the three
months ended June 30, 2019.
MICT's financial results for the first two quarters of 2019
include Micronet, Ltd. revenues for the months of January 2019 and February
2019 only. On February 24,
2019, Micronet closed a public equity offering on the Tel
Aviv Stock Exchange which resulted in a dilution of MICT's
ownership interest in Micronet to 33.88%. As of June 30, 2019, MICT has a 39.53% voting stake in
Micronet. Thus, based on U.S. GAAP, MICT no longer includes
Micronet's financial results in its consolidated financial
statements effective as of March 1,
2019.
"We are continuing to pursue the BNN Technology acquisition, and
are pleased to have entered into definitive agreements relating to
MICT's largest series of funding to date pursuant to which the
Company agreed with certain investors to raise a total of at least
$9 million, of which $7.25 million has been received and the remaining
$1.75 million is expected in the next
six weeks. As part of this series of financings, which
consisted of dual offerings by MICT to separate investors to
purchase convertible notes and preferred stock, respectively, BNN
invested $2 million in MICT through a
convertible note to replace our existing creditor instruments on
more favorable terms. Micronet, in which MICT holds a 39.53% voting
stake, is showing strength, with $3.6
million in sales contracts with current customers, which we
believe is a clear sign of confidence and satisfaction from its
customer base," stated David Lucatz, Chief Executive Officer of
MICT.
Q2 2019 Review
- Gross loss for MICT was $0 for
three months ended June 30, 2019,
compared to gross profit of $1.53
million for the three months ended June 30, 2018.
- Research and development (R&D) expense for MICT for the
three months ended June 30, 2019 was
$0, compared to $505,000 for the three months ended June 30, 2018.
- Selling, general and administrative (SG&A) expense for MICT
was $670,000 for the three months
ended June 30, 2019, compared to
$1.69 million for the three months
ended June 30, 2018.
- Net loss attributable to MICT was $1.1
million for the three months ended June 30, 2019, compared to a net profit of
$3.5 million for the three months
ended June 30, 2019. On a per share
basis, MICT reported a net loss of $0.10 per basic and diluted share from continued
operations for the three months ended June
30, 2019, compared to a net loss of $0.14 per share from continued operations and a
net profit of $0.52 per basic and
diluted share from discontinued operations for the three months
ended June 30, 2018.
- Micronet Ltd. received orders totaling $3,600,000 for its 4th generation SmartHub
hardware and its TREQ VMX platforms to existing customers, with
$90,000 of the orders being recurring
revenue.
Six Months 2018 Review
- Gross loss was $369,000 for the
six month ended June 30, 2019,
compared to a gross profit of $3.25
million for the six months ended June
30, 2018.
- R&D expense for the six months ended June 30, 2019 was $261,000, compared to $1.03 million for the six months ended
June 30, 2018.
- SG&A expense was $1.86
million for the six months ended June
30, 2019, compared to $3.36
million for the six months ended June
30, 2018.
- Net loss attributable to MICT was $2.01
million for the six months ended June
30, 2019 compared to a net profit of $2.65 million for the six months ended
June 30, 2018. On a per share basis,
MICT reported a net loss of $0.19 per
basic and diluted share from continued operations for the six
months ended June 30, 2019, compared
to a net loss of $0.25 per basic and
diluted share from continued operations and a net profit per share
of $0.54 from discontinued operations
for the six months ended June 30,
2018.
Conference Call
MICT will host a conference call (today), August 14, 2019, at 9:00
a.m. EDT to discuss the Company's financial results for the
second quarter ended June 30, 2019.
U.S. callers may dial: 1-888-298-5973. Callers from outside of the
U.S: From London (&Europe) dial in +448 0818 90708 From Israel
dial in +972 79-939 8931. User pin: 3333.
Please dial a few minutes before 9:00 am
EDT.
A slide presentation accompanying management's remarks can be
accessed at www.mict-inc.com.
Participants may also access a live webcast of the conference
call at:
http://mixlr.com/servicesmict/
A telephone replay of the call will be available for two weeks
at: 1-888-298-5973. Callers from outside of the U.S: From London
(&Europe) dial in +448 0818 90708 From Israel dial in +972
79-939 8931.
No Offer or Solicitation
This communication is not intended to and does not constitute an
offer to sell or the solicitation of an offer to subscribe for or
buy or an invitation to purchase or subscribe for any securities or
the solicitation of any vote in any jurisdiction pursuant to the
proposed transaction or otherwise, nor shall there be any sale,
issuance or transfer of securities in any jurisdiction in
contravention of applicable law. No offer of securities shall be
made except by means of a prospectus meeting the requirements of
the Securities Act of 1933, as amended. Subject to certain
exceptions to be approved by the relevant regulators or certain
facts to be ascertained, the public offer will not be made directly
or indirectly, in or into any jurisdiction where to do so would
constitute a violation of the laws of such jurisdiction, or by use
of the mails or by any means or instrumentality (including without
limitation, facsimile transmission, telephone and the internet) of
interstate or foreign commerce, or any facility of a national
securities exchange, of any such jurisdiction.
Important Additional Information Will be Filed with the
SEC
On February 5, 2019, Global
Fintech Holdings Ltd. ("GFH") filed a registration statement on
Form F-4 containing a proxy statement for MICT's stockholders, a
prospectus, and other important information in connection with the
proposed business combination. MICT URGES INVESTORS AND
STOCKHOLDERS TO READ THESE MATERIALS CAREFULLY AND IN THEIR
ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
MICT, GFH, BNN Technology PLC, ParagonEX, Ltd., and other parties,
the PROPOSED BUSINESS COMBINATION, AND OTHER RELATED
MATTERS. Investors and stockholders may obtain free
copies of these materials with the SEC through the website
maintained by the SEC at www.sec.gov. In addition,
investors and stockholders will be able to obtain free copies of
the proxy statement by directing a request to: MICT, Inc.,
28 West Grand Avenue, Suite 3, Montvale NJ 07645. Investors and
stockholders are urged to read the proxy statement, prospectus and
other relevant materials before making any voting or investment
decision with respect to the proposed business combination.
Participants in Solicitation
MICT and its directors and executive officers, may be deemed to
be participants in the solicitation of proxies for the special
meeting of MICT's stockholders to be held to approve the proposed
business combination. Information regarding the persons who may,
under the rules of the SEC, be deemed participants in the
solicitation of MICT's stockholders in connection with the proposed
business combination are set forth in the proxy
statement/prospectus. You can find information about MICT's
executive officers and directors in its Annual Report on Form 10-K
for the year ended December 31, 2018.
After such filing, you can obtain free copies of these documents
from MICT using the contact information above.
About MICT, Inc.
MICT, Inc. (Nasdaq: MICT), via its equity interest in Micronet
Ltd., provides rugged mobile devices for the growing commercial MRM
market. Micronet develops, manufactures and provides mobile
computing platforms for the mobile logistics management market in
the U.S., Europe and Israel. American manufactured
systems are designed for outdoor and challenging work environments
in trucking, distribution, logistics, public safety and
construction.
Forward-looking Statements
This press release contains express or implied forward-looking
statements within the Private Securities Litigation Reform Act of
1995 and other U.S. Federal securities laws. These
forward-looking statements include, but are not limited to, those
statements regarding the timing of the expected closing of the BNN
Technology acquisition transactions and the additional $1.75 million in the funding announced in
July 2019 and the belief that
Micronet's sales with current customers reflecting a sign of
confidence and satisfaction from Micronet's customer base. Such
forward-looking statements and their implications involve known and
unknown risks, uncertainties and other factors that may cause
actual results or performance to differ materially from those
projected. The forward-looking statements contained in this press
release are subject to other risks and uncertainties, including
those discussed in the "Risk Factors" section and elsewhere in the
Company's annual report on Form 10-K for the year
ended December 31, 2018 and in subsequent filings with
the Securities and Exchange Commission. Except as otherwise
required by law, the Company is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.
MICT, INC. AND
SUBSIDIARY
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(USD In Thousands,
Except Share and Par Value Data)
|
|
|
|
June 30,
2019
(Unaudited)
|
|
|
December 31,
2018
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
56
|
|
|
$
|
2,174
|
|
Trade accounts
receivable, net
|
|
|
-
|
|
|
|
1,010
|
|
Inventories
|
|
|
-
|
|
|
|
4,345
|
|
Other accounts
receivable
|
|
|
130
|
|
|
|
339
|
|
Total current
assets
|
|
|
186
|
|
|
|
7,868
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
25
|
|
|
|
661
|
|
Intangible assets,
net and others
|
|
|
-
|
|
|
|
434
|
|
Long-term deposit and
prepaid expenses
|
|
|
-
|
|
|
|
703
|
|
Restricted cash
escrow
|
|
|
477
|
|
|
|
477
|
|
Micronet Ltd.
investment
|
|
|
1,306
|
|
|
|
-
|
|
Total long-term
assets
|
|
|
1,808
|
|
|
|
2,275
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,994
|
|
|
$
|
10,143
|
|
|
|
June 30,
2019
|
|
|
December 31,
2018
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short term bank
credit and current portion of long term bank loans
|
|
$
|
251
|
|
|
$
|
2,806
|
|
Short term credit
from others and current portion of long term loans from
others
|
|
|
1,743
|
|
|
|
3,004
|
|
Trade accounts
payable
|
|
|
-
|
|
|
|
1,531
|
|
Other accounts
payable
|
|
|
339
|
|
|
|
1,211
|
|
Total current
liabilities
|
|
|
2,333
|
|
|
|
8,552
|
|
|
|
|
|
|
|
|
|
|
Long term
escrow
|
|
|
477
|
|
|
|
477
|
|
Accrued severance
pay, net
|
|
|
49
|
|
|
|
110
|
|
Total long term
liabilities
|
|
|
526
|
|
|
|
587
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
Preferred
stock; $0.001 par value, 5,000,000 shares authorized, none issued
and outstanding as of June 30, 2019
|
|
|
|
|
|
|
|
|
Common
stock; $0.001 par value, 25,000,000 shares authorized,
11,009,532 and 9,342,088 shares issued and outstanding as
of June 30, 2019 and December 31, 2018, respectively
|
|
|
11
|
|
|
|
9
|
|
Additional paid in
capital
|
|
|
13,893
|
|
|
|
11,905
|
|
Accumulated other
comprehensive (loss)
|
|
|
-
|
|
|
|
(117)
|
|
Accumulated
loss
|
|
|
(14,769)
|
|
|
|
(12,757)
|
|
MICT, Inc.
stockholders' equity
|
|
|
(865)
|
|
|
|
(960)
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
-
|
|
|
|
1,964
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
(865)
|
|
|
|
1,004
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
|
1,994
|
|
|
$
|
10,143
|
|
MICT, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(USD In Thousands,
Except Share and Earnings Per Share Data)
|
|
|
|
Six months
ended
June 30,
(Unaudited)
|
|
|
Three months
ended
June 30,
(Unaudited)
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
477
|
|
|
$
|
10,681
|
|
|
$
|
-
|
|
|
$
|
4,701
|
Cost of
revenues
|
|
|
846
|
|
|
|
7,427
|
|
|
|
-
|
|
|
|
3,169
|
Gross profit
(loss)
|
|
|
(369)
|
|
|
|
3,254
|
|
|
|
-
|
|
|
|
1,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
261
|
|
|
|
1,032
|
|
|
|
-
|
|
|
|
505
|
Selling and
marketing
|
|
|
198
|
|
|
|
834
|
|
|
|
-
|
|
|
|
380
|
General and
administrative
|
|
|
1,660
|
|
|
|
2,526
|
|
|
|
670
|
|
|
|
1,314
|
Amortization of
intangible assets
|
|
|
20
|
|
|
|
438
|
|
|
|
-
|
|
|
|
216
|
Total operating
expenses
|
|
|
2,139
|
|
|
|
4,830
|
|
|
|
670
|
|
|
|
2,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(2,508)
|
|
|
|
(1,576)
|
|
|
|
(670)
|
|
|
|
(883)
|
Share in investee
losses
|
|
|
(405)
|
|
|
|
-
|
|
|
|
(405)
|
|
|
|
-
|
Net profit from loss
of control
|
|
|
299
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Financial
(income) expenses, net
|
|
|
(54)
|
|
|
|
852
|
|
|
|
22
|
|
|
|
460
|
Loss before provision
for income taxes
|
|
|
(2,560)
|
|
|
|
(2,428)
|
|
|
|
(1,097)
|
|
|
|
(1,343)
|
Provision for income
taxes
|
|
|
8
|
|
|
|
4
|
|
|
|
5
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continued operation
|
|
|
(2,568)
|
|
|
|
(2,432)
|
|
|
|
(1,102)
|
|
|
|
(1,347)
|
Net profit from
discontinued operation (includes capital gain from disposal
amounting to $6,844)
|
|
|
-
|
|
|
|
4,894
|
|
|
|
-
|
|
|
|
4,783
|
Total net profit
(loss)
|
|
|
(2,568)
|
|
|
|
2,462
|
|
|
|
(1,102)
|
|
|
|
3,436
|
Net loss attributable
to non-controlling interests
|
|
|
(556)
|
|
|
|
(184)
|
|
|
|
-
|
|
|
|
(60)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit (loss)
attributable to MICT, Inc.
|
|
|
(2,012)
|
|
|
|
2,646
|
|
|
|
(1,102)
|
|
|
|
3,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share attributable to MICT, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share from continued operation
|
|
$
|
(0.19)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.14)
|
Basic and diluted
earnings per share from discontinued operation
|
|
|
-
|
|
|
|
0.54
|
|
|
|
-
|
|
|
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
10,365,744
|
|
|
|
9,007,684
|
|
|
|
11,009,199
|
|
|
|
9,144,465
|
View original
content:http://www.prnewswire.com/news-releases/mict-reports-financial-results-for-the-second-quarter-ended-june-30-2019-300901477.html
SOURCE MICT, Inc.