SaverOne 2014 Ltd. (Nasdaq: SVRE, TASE: SVRE), a
company developing and deploying transportation safety and advanced
driver-assistance systems (ADAS) technologies and solutions, today
presented its results for the full year 2023, and shared recent
business updates.
Recent Highlights
- SaverOne is successfully executing on its
land-and-expand strategy by broadening initial
penetrations locally to full fleets, as well as new pilots and
international contract wins;
- Signed a first OEM agreement with Volvo Bus Corporation
in Mexico;
- 4,600 systems have been ordered by customers
as of March 12, 2024 (of which approximately 3,200 have been
installed)
Financial Highlights
- ~2.3X (128%) year-over-year growth in 2023 revenue to NIS 2.7
million (~$0.75 million);
- Gross profit in 2023 of NIS 0.752 million (~$0.207 million), an
increase of 107% versus NIS 0.364 million in 2022
- Net loss of NIS 33.8 million (~$9.3 million) in 2023 versus NIS
25.0 million in 2022 with higher net loss due to higher expenses
given increased business activities particularly in international
regions;
- December 31, 2023 cash and cash equivalents of NIS 17.1 million
(~$4.7 million) compared with NIS 19.2 million at year-end
2022.
Management Comment
Commented Mr. Ori Gilboa, CEO of
SaverOne, “We are pleased with continued solid performance
in 2023, both from the financial perspective by growing revenues at
more than 100%, and particularly from the strategic perspective. We
are especially pleased with the broadening of our footprint amongst
our existing customers, and a prime example is the growth of our
relationship with Cemex, expanding our offerings into the trucks of
Cemex Spain. We are also reaching new customers internationally,
demonstrated by the initiation of some key pilot projects in North
America, Europe and elsewhere. In particular, our first OEM
penetration with Volvo Bus Corporation, a Mexican subsidiary of
leading car manufacture Volvo, is a highly strategic customer win
for us and we believe opens additional potential for similar such
wins in the near future.”
“We continue to remain optimistic and we expect
to maintain our strong momentum into 2024 and beyond,”
concluded Mr. Gilboa.
Recent Developments Summary
- In September 2023, SaverOne launched its first European
pilot with Cemex in Spain, covering ten trucks in two
regions. This follows a recent successful installation of
SaverOne's solution across Cemex Israel's full fleet of employee
vehicles and operational trucks.
- In October 2023, SaverOne announced the win of six new
customers covering 90 vehicles in the private bus fleet industry in
Israel. The private bus fleet vertical, especially buses
carrying school children, is key for SaverOne, representing
significant growth potential internationally and has become an area
of strategic focus for the Company.
- In October 2023, SaverOne signed a distribution
agreement with GVZ Company, based in Milan, specializing
in the distribution of automotive components and solutions in
European markets. Furthermore, SaverOne appointed Mr. Tal Yihie as
its Italian Country Partner, a seasoned business development
executive with over 14 years of extensive sales, marketing, and
distribution expertise in Italy, in addition to having an extensive
global business network.
- In November 2023, SaverOne launched a strategically
important pilot project of 10 vehicles with Tecne, the
engineering company of Gruppo Autostrade per l'Italia, which is one
of Europe's leading concessionaries for the construction and
management of toll motorways, with a fleet of 3,000 vehicles.
- In November 2023, SaverOne announced a new pilot with
System Logistics, an Italian designer, manufacturer and
provider of automated warehousing, with a fleet of over 100
vehicles.
- In January 2024, its was announced that the SaverOne
system will be installed across Strauss Group's entire
fleet of over 80 food delivery trucks in Israel. Strauss
Group is one of the largest food manufacturers in Israel.
- In January 2024, it was announced that SaverOne secured
a new customer, Bon Tour, a leading private transit companies in
Israel, with a significant order of 300 Systems. In the
coming month, 50 systems will be installed on Bon Tour's various
buses and minibuses, and following that, a further 250 systems are
expected to be installed. Among Bon Tour's customers are government
offices, municipalities and councils, institutions and hospitals,
factories, tourism bodies, as well as private customers.
- In February 2024, SaverOne announced that Egged Tours
would install 300 SaverOne Systems on all its buses. Egged
Tours operates the largest tour bus fleet in Israel. It is a
subsidiary of Egged Transportation, Israel's largest bus company,
with over 3,000 buses operating nationally with a vast network of
urban and intercity routes.
- In February 2024, SaverOne was granted a new US
patent covers aspects of SaverOne's System to prevent
distraction while driving. With this new patent, SaverOne's patent
portfolio comprises of 23 patents of which 10 are already granted
in various jurisdictions and a further 13 additional patent
applications in process. These patents are strategically filed in
key markets such as the US, China, Israel, the United Kingdom, and
the European Union, reflecting the company's strategic vision for
global expansion.
- In February 2024, SaverOne announced that it has launched
a new pilot project in the United States with Motor Supply,
Inc., a trucking company based in Columbia, South
Carolina. The pilot is expected to run over a period of 12 months
and, if successful, potentially expand to the rest of the fleet and
any future trucks that Motor Supply may operate.
- In March 2024, GB Tours decided to expand its
installation of the SaverOne system across its full fleet of public
transportation and tour buses. GB Tours is a leading
Israel-based public transportation company that operates public
transportation lines as well as tour buses with a fleet of about
one hundred buses. This order follows the conclusion of a
successful pilot of the SaverOne System on twenty of GB Tours’
buses.
- In March 2024, SaverOne entered into an original
equipment manufacturer (OEM) agreement with Volvo Bus
Corporation, a subsidiary of the global automotive giant,
Volvo Group. Under the OEM agreement, SaverOne's Safety Solution
will be installed in new Volvo buses that are manufactured for the
Mexican market. Volvo Bus customers in Mexico will be offered the
SaverOne Safety Solution pre-installed, following integration into
Volvo’s assembly line. In addition, the agreement also allows for a
retrofit of existing buses covered under Volvo’s maintenance
agreement (representing approximately 3,000 buses in the market),
which will install SaverOne’s Safety Solution as an aftermarket
installation.
Financial Summary for 2023
Revenues increased by 128% to
NIS 2.720 million (~$0.75 million) in 2023 compared to NIS 1.193
million (~$0.329 million) for 2022. This increase was mainly the
result of increased sales of the SaverOne System in Israel with new
and existing customers as well as new sales with customers in
international regions.
Of the revenues in 2023, 93% of revenues were
from Israel while 7% of revenues were from Europe. In 2022, 100% of
revenues were from Israel.
Gross profit increased by 107%
to NIS 0.752 million (~$0.207 million), representing gross margin
of 27.6% in 2023 compared to NIS 364 thousand (~$0.1 million),
representing gross margin of 30.5%, in 2022.
Research and development
expenses, net were NIS 22.9 million (~$6.3 million) in 2023
compared to NIS 21.5 million (~$5.9 million) in 2022.
Selling and marketing expenses
were NIS 3.8 million (~$1.0 million) in 2023 compared to NIS 1.6
million (~$0.439 million) in 2022. The increase is attributable
mainly to higher payroll and investor relations expenses, as part
of the Company’s efforts to increase sales and marketing
efforts.
General and administrative
expenses were NIS 8.3 million (~$2.3 million) in 2023,
compared to NIS 6.5 million (~$1.8 million) in 2022. The increase
in these expenses was mainly due to additional costs associated
with being a US listed public company.
Operating loss was NIS 34.2
million (~$9.4 million) in 2023 compared to NIS 29.2 million (~$8.1
million) in 2022, primarily due to increased operating expenses as
detailed above.
Financing income, net, was NIS
0.388 million (~$0.107 million) for 2023 compared to financing
income, net, of NIS 4.2 million (~$1.2 million) in 2022. The
decrease is due primarily due to fluctuations in exchange rates and
other effects impacting the value of financial assets and
liabilities that the Company holds less interest paid.
Net loss in 2023 was NIS 33.8
million (~$9.3 million), compared to NIS 26.5 million (~$6.9
million) for 2022.
Cash and cash equivalents and
short-term bank deposits as of December 31, 2023, amounted to NIS
17.1 million (~$4.7 million), compared with NIS 19.2 million (~$5.3
million) as of December 31, 2022.
The Company’s financial results are presented in
accordance with IFRS as issued by the IASB.
*Unless otherwise noted, for the purposes of the
presentation of financial data, all conversions from New Israeli
Shekels (NIS) to U.S. dollars and from U.S. dollars to NIS were
made at the rate of NIS 3.627 to $1.00, based on the representative
exchange rate reported by the Bank of Israel on December 29,
2023.
A copy of SaverOne’s annual report on Form 20-F
for the year ended December 31, 2023 has been filed with the U.S.
Securities and Exchange Commission at https://www.sec.gov/ and
posted on SaverOne’s investor relations website at
https://ir.saver.one/. SaverOne will deliver a hard copy of its
annual report, including its complete audited consolidated
financial statements, free of charge, to its shareholders upon
request at saverone@ekgir.com.
About the SaverOne System
SaverOne’s system is installed in vehicles to provide a solution to
the problem of driver distraction, as a result of drivers using
distracting applications on the mobile phone while driving, in a
way that endangers their safety and the safety of their passengers.
This phenomenon is considered one of the main causes of road
accidents in the world. According to the US National Highway
Traffic Safety Administration, the annual cost of road accidents
just in the United States, stands at about $870 billion each year,
excluding the costs of serious injury or death, with a quarter of
those accidents estimated to be related to the use of the mobile
phones while driving. SaverOne's technology specifically recognizes
the driver area in the vehicle and prevents the driver from
accessing distracting applications such as messaging, while
allowing others (e.g. navigation, calls), without user intervention
or consent, creating a safer driving environment.
SaverOne’s primary target markets include
commercial and private vehicle fleets, including public
transportation and buses, that are interested in reducing potential
damages and significant cost, vehicle manufacturers that are
interested in integrating safety solutions to their vehicles, and
insurance and leasing companies. SaverOne initially addresses car
fleets with focus on the Israeli, European and US markets, as well
as other markets around the world. SaverOne believes that
ultimately increased focus on monitoring and prevention of cellular
distraction systems in vehicles, in particular driven by upcoming
expected EU regulation, will likely have a dramatic positive impact
on the demand for its systems in the future.
The Company’s strategy is to provide its
technology for installation to customers in the aftermarket as well
as address OEM vehicle manufacturers, to install the Company's
protection technologies during the vehicle manufacturing
process.
About SaverOne SaverOne is a
technology company engaged in the design, development and
commercialization of OEM and aftermarket solutions and
technologies, to lower the risk of, and prevent, vehicle
accidents.
SaverOne’s initial line of products is a suite
of solutions that saves lives by preventing car accidents resulting
from distraction from the use of mobile phones while driving.
SaverOne is also developing a sensor system for early location and
direction detection under all visibility conditions of vulnerable
road users (VRU) through their cellphone footprint.
To learn more about the company, please visit:
https://saver.one/ For the corporate video, please visit:
https://saver.one/media/
Forward Looking Statements This
press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act and other
securities laws that are subject to substantial risks and
uncertainties. All statements, other than statements of historical
fact, contained in this press release are forward-looking
statements. Forward-looking statements contained in this press
release include, but are not limited to, statements regarding
SaverOne's strategic and business plans, technology, relationships,
objectives and expectations for its business, growth, the impact of
trends on and interest in its business, intellectual property or
product and its future results, operations and financial
performance and condition and may be identified by the use of words
such as "anticipate," "believe," "contemplate," "could,"
"estimate," "expect," "intend," "seek," "may," "might," "plan,"
"potential," "predict," "project," "target," "aim," "should,"
"will" "would," or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on SaverOne's
current expectations and are subject to inherent uncertainties,
risks and assumptions that are difficult to predict. Further,
certain forward-looking statements are based on assumptions as to
future events that may not prove to be accurate. Many factors could
cause SaverOne's actual activities or results to differ materially
from the activities and results anticipated in such forward-looking
statements. Factors that could cause our actual results to differ
materially from those expressed or implied in such forward-looking
statements include, but are not limited to: the ability of
SaverOne’s technology to substantially improve the safety of
drivers; SaverOne’s planned level of revenues and capital
expenditures; SaverOne’s ability to market and sell its products;
SaverOne’s plans to continue to invest in research and development
to develop technology for both existing and new products;
SaverOne’s intention to advance its technologies and
commercialization efforts; SaverOne’s intention to use local
distributors in each country or region that it will conduct
business to distribute our products or technology; SaverOne’s plan
to seek patent, trademark and other intellectual property rights
for our products and technologies in the United States and
internationally, as well as its ability to maintain and protect the
validity of its currently held intellectual property rights;
SaverOne’s expectations regarding future changes in its cost of
revenues and our operating expenses; interpretations of current
laws and the passage of future laws; acceptance of SaverOne’s
business model by investors; the ability to correctly identify and
enter new markets; the impact of competition and new technologies;
general market, political and economic conditions in the countries
in which SaverOne operates; projected capital expenditures and
liquidity; SaverOne’s intention to retain key employees, and our
belief that we maintain good relations with all of its employees;
any resurgence of the COVID-19 pandemic and its impact on
SaverOne’s business and industry; security, political and economic
instability in the Middle East that could harm SaverOne’s business,
including due to the current war between Israel and Hamas; and
other risks and uncertainties, including, but not limited to, the
risks detailed in the Company's Annual Report on Form 20-F filed
with the U.S. Securities and Exchange Commission (the "SEC")
on March 25, 2024 and in subsequent filings with the SEC.
Forward-looking statements contained in this announcement are made
as of this date, and SaverOne undertakes no duty to update such
information except as required under applicable law.
International Investor Relations Contact: Ehud
Helft +1 212 378 8040 saverone@ekgir.com Israeli Investors
Contact: Jonathan Eilat John@theinvestor.co.il |
|
|
As of December 31, |
|
2023 |
|
2022 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
17,112 |
|
|
|
19,240 |
|
Short-term bank deposits |
- |
|
|
|
10,070 |
|
Trade receivables, net |
1,054 |
|
|
(*) |
762 |
|
Other current assets |
1,509 |
|
|
|
1,016 |
|
Inventory |
4,534 |
|
|
|
2,026 |
|
Total current assets |
24,209 |
|
|
|
33,114 |
|
|
|
|
Non-current assets |
|
|
Trade receivables, net |
1,051 |
|
|
(*) |
335 |
|
Property and equipment, net |
248 |
|
|
|
218 |
|
Restricted deposits |
211 |
|
|
|
201 |
|
Right of usage asset, net |
1,271 |
|
|
|
567 |
|
Total non-current assets |
2,781 |
|
|
|
1,321 |
|
|
|
|
Total assets |
26,990 |
|
|
|
34,435 |
|
|
|
|
Current liabilities |
|
|
Current maturities of leasing liability |
352 |
|
|
|
467 |
|
Trade payables |
4,303 |
|
|
|
1,956 |
|
Other current liabilities |
2,042 |
|
|
|
2,872 |
|
Liability in respect of government grants |
694 |
|
|
|
335 |
|
Derivative warrants liability |
274 |
|
|
|
1,151 |
|
Promissory notes, net |
7,139 |
|
|
|
- |
|
Total current liabilities |
14,804 |
|
|
|
6,781 |
|
|
|
|
Non-current liabilities |
|
|
Leasing liability, net current |
980 |
|
|
|
181 |
|
Liability in respect of government grants |
634 |
|
|
|
919 |
|
Total non-current liabilities |
1,614 |
|
|
|
1,100 |
|
|
|
|
Commitments |
|
|
|
|
|
Shareholders' equity |
|
|
Share capital and premium |
135,243 |
|
|
|
118,284 |
|
Capital reserve in respect of share-based payment |
10,939 |
|
|
|
10,045 |
|
Accumulated deficit |
(135,610 |
) |
|
|
(101,775 |
) |
Total shareholders’ equity |
10,572 |
|
|
|
26,554 |
|
|
|
|
Total liabilities and shareholders’ equity |
26,990 |
|
|
|
34,435 |
|
(*) Reclassified.
|
Year Ended December 31, |
|
2023 |
|
2022 |
|
2021 |
Revenues |
2,720 |
|
|
1,193 |
|
|
450 |
|
Cost of revenues |
(1,968 |
) |
|
(829 |
) |
|
(288 |
) |
Gross profit |
752 |
|
|
364 |
|
|
162 |
|
|
|
|
|
Research and development expenses, net |
(22,861 |
) |
|
(21,490 |
) |
|
(18,847 |
) |
Selling and marketing expenses, net |
(3,787 |
) |
|
(1,591 |
) |
|
(2,431 |
) |
General and administrative expenses |
(8,327 |
) |
|
(6,492 |
) |
|
(5,149 |
) |
Operating loss |
(34,223 |
) |
|
(29,209 |
) |
|
(26,265 |
) |
|
|
|
|
Financing expenses |
(1,219 |
) |
|
(852 |
) |
|
(228 |
) |
Financing income |
1,607 |
|
|
5,099 |
|
|
3 |
|
Financing income (expenses), net |
388 |
|
|
4,247 |
|
|
(225 |
) |
|
|
|
|
|
|
|
|
Loss for the year |
(33,835 |
) |
|
(24,962 |
) |
|
(26,490 |
) |
Comprehensive loss for the year |
(33,835 |
) |
|
(24,962 |
) |
|
(26,490 |
) |
|
|
|
|
|
|
|
|
Loss per share attributed to shareholders of company
shares, par value NIS 0.01 each |
|
|
|
|
|
|
|
Basic and diluted loss per share: |
|
|
|
Basic and diluted loss per share |
(1.08 |
) |
|
(1.44 |
) |
|
(3.33 |
) |
Weighted average of number of shares used to calculate the basic
and diluted loss per share |
31,380,359 |
|
|
17,300,596 |
|
|
7,960,239 |
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
2023 |
|
2022 |
|
2021 |
Cash flow from current operations |
|
|
|
Comprehensive loss for the year |
|
(33,835 |
) |
|
(24,962 |
) |
|
|
(26,490 |
) |
Adjustments required to present cash flows from operating
activities (Appendix A) |
|
(1,185 |
) |
|
(3,408 |
) |
|
|
3,357 |
|
Net cash used in operating activities |
|
(35,020 |
) |
|
(28,370 |
) |
|
|
(23,133 |
) |
|
|
|
|
Cash flows from investment activity |
|
|
|
Change in deposits restricted as to withdrawal |
|
- |
|
|
- |
|
|
|
(41 |
) |
Changes in short-term deposits |
|
10,070 |
|
|
(5,058 |
) |
|
|
(5,012 |
) |
Purchase of property and equipment |
|
(128 |
) |
|
(62 |
) |
|
|
(144 |
) |
Net cash provided by (used in) investment
activity |
|
9,942 |
|
|
(5,120 |
) |
|
|
(5,197 |
) |
|
|
|
|
Cash flows from financing activity |
|
|
|
Deferred offering expenses |
|
- |
|
|
- |
|
|
|
(750 |
) |
Net proceeds received from issuance of units including put options,
first promissory note and ADSs as Commitment Shares in transaction
of equity line granted |
|
7,170 |
|
|
- |
|
|
|
- |
|
Proceeds received from issuance of ADSs resulted from partial
exercise of Commitment Amount under equity line |
|
9,259 |
|
|
- |
|
|
|
- |
|
Repayment of first promissory note (principal and interest) |
|
(754 |
) |
|
- |
|
|
|
- |
|
Net proceeds received from issuance of second promissory note |
|
3,597 |
|
|
- |
|
|
|
- |
|
Receipt of government grants |
|
- |
|
|
- |
|
|
|
579 |
|
Net proceeds received from issuance of ADSs through private
placement transaction |
|
- |
|
|
5,141 |
|
|
|
- |
|
Net proceeds received from issuance of ADSs as part of shelf
prospectus through public offering transaction |
|
3,685 |
|
|
- |
|
|
|
- |
|
Repayment of principal in respect of leasing |
|
(467 |
) |
|
(467 |
) |
|
|
(440 |
) |
Net proceeds received from issuance of units consist of ADSs,
pre-funded warrants and warrants through U.S. IPO transaction |
|
- |
|
|
37,298 |
|
|
|
- |
|
Exercise of non-registered rights into ordinary shares |
|
- |
|
|
- |
|
|
(*) |
- |
|
Exercise of restricted share units into ordinary shares |
(*) |
- |
|
|
- |
|
|
|
- |
|
Net cash provided by (used in) financing
activity |
|
22,490 |
|
|
41,972 |
|
|
|
(611 |
) |
|
|
|
|
|
|
|
|
Change in balance of cash and cash
equivalents |
|
(2,588 |
) |
|
8,482 |
|
|
|
(28,941 |
) |
|
|
|
|
Exchange differences on cash and cash
equivalents |
|
460 |
|
|
2,075 |
|
|
|
- |
|
|
|
|
|
Balance of cash and cash equivalents, beginning of
year |
|
19,240 |
|
|
8,683 |
|
|
|
37,624 |
|
|
|
|
|
Balance of cash and cash equivalents, end of
year |
|
17,112 |
|
|
19,240 |
|
|
|
8,683 |
|
(*) Representing amount lower than NIS
1.
|
Year ended December 31, |
|
2023 |
|
2022 |
|
2021 |
Appendix A - Adjustments required to present cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
Income and expenses not involving cash flows |
|
|
|
|
|
|
|
|
Depreciation |
98 |
|
|
82 |
|
|
61 |
|
Amortization of right for usage asset |
425 |
|
|
425 |
|
|
398 |
|
Interest expense in respect of leasing |
22 |
|
|
43 |
|
|
61 |
|
Share-based payment to employees and service providers |
978 |
|
|
1,157 |
|
|
3,348 |
|
Revaluation of derivative warrant liability |
(877 |
) |
|
(2,954 |
) |
|
- |
|
Recognition of discount, interest and exchange differences expenses
related to promissory notes |
526 |
|
|
- |
|
|
- |
|
Finance expenses incurred from partial exercise of Commitment
Amount under equity line |
531 |
|
|
- |
|
|
- |
|
Direct and incremental issuance cost allocated to derivative
warrant liability through U.S IPO |
- |
|
|
723 |
|
|
- |
|
Exchange differences on cash and cash equivalent and restricted
deposits |
(470 |
) |
|
(2,085 |
) |
|
- |
|
Changes in liability in respect of government grants |
74 |
|
|
86 |
|
|
(213 |
) |
|
1,307 |
|
|
(2,523 |
) |
|
3,655 |
|
|
|
|
|
Changes in asset and liability items |
|
|
|
Decrease (increase) in other current assets |
(493 |
) |
|
143 |
|
|
(647 |
) |
Increase in trade receivables |
(1,008 |
) |
|
(596 |
) |
|
(142 |
) |
Increase in inventory |
(2,508 |
) |
|
(1,201 |
) |
|
(715 |
) |
Increase in trade payables |
2,347 |
|
|
1,014 |
|
|
54 |
|
Increase (decrease) in other current liabilities |
(830 |
) |
|
(245 |
) |
|
1,152 |
|
|
(2,492 |
) |
|
(885 |
) |
|
(298 |
) |
|
|
|
|
|
(1,185 |
) |
|
(3,408 |
) |
|
3,357 |
|
|
|
|
|
Appendix B - Non-cash investment and financing
activities |
|
|
|
|
Recognition of right for usage asset against a leasing
liability |
1,129 |
|
|
- |
|
|
532 |
|
Deferred offering expenses not yet paid |
- |
|
|
- |
|
|
405 |
|
Direct and incremental stock-based payment expenses allocated to
ADSs and pre-fund warrants through U.S. IPO |
- |
|
|
960 |
|
|
- |
|
Classification of equity amount to derivative warrants liability
due to partial exercise of over-allotment option into warrants |
- |
|
|
158 |
|
|
- |
|
Repayment of first promissory note (principal and interest) through
issuance of ADSs resulted from partial exercise of Commitment
Amount under equity line |
3,313 |
|
|
- |
|
|
- |
|
|
|
|
|
Appendix C - Additional information pertaining to cash
flows |
|
|
|
|
Interest paid |
- |
|
|
- |
|
|
- |
|
Interest received |
271 |
|
|
85 |
|
|
- |
|
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