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Nano Dimension Announced Q3 2022 Revenue of $10M & Record Backlog

Nano Dimension Ltd.
Nano Dimension Ltd.

646% Higher over Q3 Last Year
964% Higher YTD 2022 vs. Same Period 2021

Conference call to be held today at 9:00 a.m. EDT

WALTHAM, Mass., Dec. 01, 2022 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or the “Company”), an industry leader in Additively Manufactured Electronics, additive PCB assembly & printhead drivers and software (AME), and a supplier of Additive Manufacturing machines and materials (AM), today announced financial results for the third quarter ended September 30th, 2022.

Nano Dimension reported revenues of $10M for the third quarter of 2022, an increase of 646% over the same quarter in 2021 and 10% less than Q2/2022. Moreover, the 3rd quarter of 2022 revenue run-rate indicates the potential for growth of approximately 300% in full year 2022 over 2021. If this occurs, the Company’s revenue will be growing over 10 times from 2020 to 2022, assuming no critical changes in the world economy resulting from current international affairs and/or other factors.

Revenues for the nine months period ended September 30th, 2022, were $31.5M, which represent a 964% increase over the nine months period ended September 30th, 2021.

Total loss before tax for the 3rd quarter of 2022 was $67.1M.

  • Adjusted EBITDA for the 3rd quarter of 2022 was negative $24.2M, excluding $42.9M of non-cash adjustments for finance expenses/income for revaluation of assets and liabilities, share-based payments, exchange rate differences, interest income and depreciation and amortization expenses.

  • Adjusted EBITDA as above includes R&D cash expenses of $13.5M.

  • Net cash used in operations during the 3rd quarter of 2022 was $22.3M.

Details regarding EBITDA and Adjusted EBITDA can be found later in this press release under “Non-IFRS measures.”

Yoav Stern, Chairman & CEO, comments: “The comparable increases of revenue of Q3 2022 over Q3 2021 (646%) and year-to-date over last-year-year-to-date (964%) - highlight the business’ continued success in growing dramatically, better than our expectations as expressed last year. We also finished the third quarter with a record backlog of approximately $9M.

All our product lines’ revenue grew organically exceptfor additive electronics machines in Europe: As a result of the Russia-Ukraine war, our revenues in Russia and Poland were reduced in the first 9 months of 2022 by approximately $1.5M (75%) compared to the same period in 2021. Additionally, we understand from other customers there that the continued components’ supply chainshortages have caused them to request a delay in delivery of additive electronic machines (which are used to mount those delayed components).

Sales and deliveries in the USA of similar machines grew organically by 45% over the 9 months ended September 30th, 2022, compared to the similar period in 2021.

The Gross Margin is a bit lower than we have anticipated, which is a result of the above mentioned held-back deliveries in Europe without reducing the fixed manufacturing overhead. The inherent gross margin of that technology is above 30%, as it has been for years, and it is within the typical range for that industry segment. We sold 69 machines of this kind since 1-1-2022. The Q3/2022 lower gross margin is also a result of trading up old AME machines with new ones, which are transactions at lower gross margins than the regular new AME machine sales.”

FINANCIAL RESULTS:

Third Quarter 2022 Financial Results

  • Total revenues for the third quarter of 2022 were $9,998,000, compared to $11,101,000 in the second quarter of 2022, and $1,340,000 in the third quarter of 2021. The decrease compared to the second quarter of 2022 was influenced by the conflict in Europe and supply chain delays, as explained above. The increase compared to the third quarter of 2021 is attributed to increased sales of the Company’s product lines.

  • Cost of revenues (excluding amortization of intangibles) for the third quarter of 2022 was $7,428,000, compared to $7,151,000 in the second quarter of 2022, and $696,000 in the third quarter of 2021. The increase is attributed mostly to the increased sales of the Company’s product lines.

  • Research and development (R&D) expenses for the third quarter of 2022 were $18,535,000, compared to $18,365,000 in the second quarter of 2022, and $13,726,000 in the third quarter of 2021. The increase compared to the second quarter of 2022 is attributed to an increase in materials and subcontractors’ expenses, as well as an increase in depreciation expenses, partially offset by a decrease in share-based payment expenses. The increase compared to the third quarter of 2021 is attributed mainly to an increase in payroll expenses and subcontractors expenses and is partially offset by a decrease in depreciation and share-based payment expenses.

    • The R&D expenses includes depreciation and share-based payments expenses of $5,057,000.

  • Sales and marketing (S&M) expenses for the third quarter of 2022 were $9,652,000, compared to $10,115,000 in the second quarter of 2022, and $6,301,000 in the third quarter of 2021. The decrease compared to the second quarter of 2022 is attributed mainly to the decrease in marketing and share-based payment expenses, partially offset by an increase in payroll expenses. The increase compared to the third quarter of 2021 is attributed mainly to an increase in payroll and marketing related expenses as well as an increase in depreciation, partially offset by a decrease in share-based payment expenses.

    • The S&M expenses includes depreciation and share-based payments expenses of $1,941,000.

  • General and administrative (G&A) expenses for the third quarter of 2022 were $7,417,000, compared to $7,207,000 in the second quarter of 2022, and $4,843,000 in the third quarter of 2021. The increase compared to the third quarter of 2021 is attributed to an increase in payroll and professional services due to the Company’s latest acquisitions, as well as an increase in office expenses.

    • The G&A expenses includes depreciation and share-based payments expenses of $1,604,000.

  • Net loss attributed to the owners for the third quarter of 2022 was $66,931,000, or $0.26 per share, compared to $39,732,000, or $0.15 per share, in the second quarter of 2022, and $18,237,000 or $0.07 per share, in the third quarter of 2021.

    • Adjusted EBITDA for the 3rd quarter of 2022 was negative $24.2M, excluding $42.9M of non-cash adjustments for finance expenses/income for revaluation of assets and liabilities, share-based payments, exchange rate differences, and depreciation and amortization expenses.

Nine Months Ended September 30 2022, Financial Results

  • Total revenues for the nine months period ended September 30th, 2022, were $31,529,000, compared to $2,962,000 in the nine months period ended September 30th, 2021. The increase is attributed to increased sales of the Company’s product lines.

  • Cost of revenues (excluding amortization of intangibles) for the nine months period ended September 30th, 2022, was $21,159,000, compared to $1,380,000 in the nine months period ended September 30th, 2021. The increase is attributed mostly to increased sales of the Company’s product lines.

  • R&D expenses for the nine months period ended September 30th, 2022, were $54,770,000, compared to $26,587,000 in the nine months period ended September 30, 2021. The increase is attributed to an increase in payroll and subcontractors’ expenses as well as an increase in share-based payment expenses, as a result of the Company’s increased R&D efforts.

    • The R&D expenses for the nine months period ended September 30th, 2022 includes depreciation and share-based payments expenses of $16,625,000.

  • S&M expenses for the nine months period ended September 30, 2022, were $29,075,000, compared to $15,023,000 in the nine months period ended September 30, 2021. The increase is attributed to an increase in payroll and marketing expenses as well as an increase in share-based payment expenses as a result of the Company’s growing sales and marketing team.

    • The S&M expenses for the nine months period ended September 30th, 2022 includes depreciation and share-based payments expenses of $7,682,000.

  • G&A expenses for the nine months period ended September 30th, 2022, were $21,366,000, compared to $13,174,000 in the nine months period ended September 30th, 2021. The increase is attributed to an increase in payroll expenses as well as an increase in office and rent and related expenses, and professional services.

    • The G&A expenses for the nine months period ended September 30th, 2022 includes depreciation and share-based payments expenses of $4,962,000.

  • Net loss attributed to the owners for the nine months period ended September 30th, 2022, was $139,756,000, or $0.54 per share, compared to $41,153,000, or $0.17 per share, in the nine months period ended September 30th, 2021.

    • Adjusted EBITDA for the nine months period ended September 30th, 2022 was negative $64.7M, excluding $76.5M of non-cash adjustments for finance expenses/income for revaluation of assets and liabilities, share-based payments, exchange rate differences, and depreciation and amortization expenses.

Balance Sheet Highlights

  • Cash and cash equivalents, together with short and long-term unrestricted bank deposits totaled $1,048,712,000 as of September 30th, 2022, compared to $1,355,595,000 as of December 31st, 2021. The decrease compared to December 31st, 2021, mainly reflects cash used in operating activities and investing activities.

  • Shareholders’ equity totaled $1,230,716,000 as of September 30th, 2022, compared to $1,343,356,000 as of December 31st, 2021.

Conference call information

The Company will host a conference call to discuss these financial results today, December 1st, 2022, at 9:00 a.m. EDT (4:00 p.m. IDT).
We encourage participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10172491/f4dc959048.
Webcast link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=dJL0SDBd.
U.S. Dial-in Number: 844-695-5517, INTERNATIONAL DIAL IN: 1-412-902-6751, Israel Dial-in Number: 1-80-9212373. Please request the “Nano Dimension NNDM call” when prompted by the conference call operator. For those unable to participate in the conference call, there will be a replay available from a link on Nano Dimension’s website at http://investors.nano-di.com/events-and-presentations.

About Nano Dimension
Nano Dimension’s (Nasdaq: NNDM) vision is to transform the electronics and similar additive manufacturing sectors through the development and delivery of an environmentally friendly and economically efficient additive manufacturing, Industry 4.0 solution, while enabling a one-production-step-conversion of digital designs into functioning devices – on demand, anytime, anywhere.                    

The DragonFly IV® system and specialized materials serve cross-industry High-Performance-Electronic-Devices (Hi-PEDs®) fabrication needs by simultaneously depositing proprietary conductive and dielectric substances, while integrating in-situ capacitors, antennas, coils, transformers, and electromechanical components. The outcomes are Hi-PEDs® which are critical enablers of autonomous intelligent drones, cars, satellites, smartphones, and in vivo medical devices. In addition, these products enable iterative development, IP safety, fast time-to-market, and device performance gains. 

Nano Dimension also develops complementary production equipment for Hi-PEDs® and printed circuit board (PCB) assembly (Puma, Fox, Tarantula, Spider etc.). The core competitive edge for this technology is in its adaptive, highly flexible surface-mount technology (SMT) pick-and-place equipment, materials dispenser suitable for both high-speed dispensing and micro-dispensing, as well as an intelligent production material storage and logistics system.  Nano Dimension is a leading developer and supplier of high-performance control electronics, software, and ink delivery system. It invents and delivers state-of-the-art 2D and 3D printing hardware and unique operating software.  It focuses on high-value, precision-oriented applications such as specialized direct-to-container packaging, printed electronics functional fluids, and 3D printing, all controlled by the proprietary software system - Atlas.

Serving similar users of Hi-PEDs®, Nano Dimension’s AM products include Fabrica 2.0 micro additive manufacturing system enables the production of microparts based on a Digital Light Processor (DLP) engine that achieves repeatable micron levels resolution. In addition, Nano’s Admatec Division supplies printing from Powder to Part by powder-based shaping & sintering technologies, from design to serial production of Powder Metallurgical & Ceramic parts or devices. The Admaflex 130 & 300 3D printing machines for ceramics and metals are modular DLP printing systems on one platform with customer-friendly software enabling full parameter accessibility & control and unique vision-based process monitoring. 

For more information, please visit www.nano-di.com.

Forward-Looking Statements 
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Nano Dimension’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Nano Dimension could differ materially from those described in or implied by the statements in this press release. For example, Nano Dimension is using forward-looking statements when it discusses the potential for growth of approximately 300% in full year 2022 and 10 times from 2020 to 2022, the ability of the Company to execute on its vision and business plans, including without needing to raise more capital, its future growth both organically and from acquisitions, its ability to sell complementary products, its commitment, vision and aim to build an ecofriendly and intelligent distributed secured network of 3D printers & roll-in adjacent industrial machine-learning-led-digitized manufacturing and self-learning and self-improving machines, that if contraction of multiples and valuations will be sustained, the Company expects to take advantage of its frugal approach to cash management during the unreasonable “market-inflation” during 2020 to early 2022, and that if acquisitions will withstand more reasonable prices, the Company hopes to show attractive synergistic growth from M&A activity. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Nano Dimension’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 31, 2022, and in any subsequent filings with the SEC. Except as otherwise required by law, Nano Dimension undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Nano Dimension is not responsible for the contents of third-party websites.

NANO DIMENSION INVESTOR RELATIONS CONTACT

Yael Sandler, CFO | ir@nano-di.com 



Unaudited Consolidated Statements of Financial Position as at

 

 

September 30,

 

 

December 31

 

(In thousands of USD)

 

2021

 

 

2022

 

 

2021(*)

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

1,127,778

 

 

 

370,197

 

 

 

853,626

 

Bank deposits

 

 

257,613

 

 

 

650,111

 

 

 

437,598

 

Restricted deposits

 

 

165

 

 

 

77

 

 

 

148

 

Trade receivables

 

 

1,223

 

 

 

5,929

 

 

 

3,422

 

Other receivables

 

 

3,459

 

 

 

2,925

 

 

 

5,902

 

Inventory

 

 

4,035

 

 

 

17,837

 

 

 

11,199

 

Total current assets

 

 

1,394,273

 

 

 

1,047,076

 

 

 

1,311,895

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted deposits

 

 

483

 

 

 

521

 

 

 

501

 

Bank deposits

 

 

-

 

 

 

28,404

 

 

 

64,371

 

Investment in securities

 

 

-

 

 

 

139,707

 

 

 

-

 

Other long-term assets

 

 

-

 

 

 

1,282

 

 

 

1,007

 

Property plant and equipment, net

 

 

7,523

 

 

 

13,166

 

 

 

7,690

 

Right of use asset

 

 

4,869

 

 

 

13,972

 

 

 

4,491

 

Intangible assets

 

 

116,767

 

 

 

31,799

 

 

 

-

 

Total non-current assets

 

 

129,642

 

 

 

228,851

 

 

 

78,060

 

Total assets

 

 

1,523,915

 

 

 

1,275,927

 

 

 

1,389,955

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 

1,796

 

 

 

2,925

 

 

 

2,833

 

Financial derivatives

 

 

4,775

 

 

 

8,189

 

 

 

14,910

 

Other payables

 

 

7,970

 

 

 

18,864

 

 

 

13,836

 

Current portion of other long-term liability

 

 

-

 

 

 

370

 

 

 

417

 

Total current liabilities

 

 

14,541

 

 

 

30,348

 

 

 

31,996

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability in respect of government grants

 

 

1,910

 

 

 

1,507

 

 

 

1,560

 

Employee benefits

 

 

-

 

 

 

296

 

 

 

4,145

 

Liability in respect of warrants

 

 

5,523

 

 

 

124

 

 

 

3,347

 

Lease liability

 

 

3,577

 

 

 

10,519

 

 

 

3,336

 

Deferred tax liabilities

 

 

3,128

 

 

 

587

 

 

 

236

 

Loan from banks

 

 

-

 

 

 

785

 

 

 

1,104

 

Other long-term liabilities

 

 

-

 

 

 

180

 

 

 

-

 

Total non-current liabilities

 

 

14,138

 

 

 

13,998

 

 

 

13,728

 

Total liabilities

 

 

28,679

 

 

 

44,346

 

 

 

45,724

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

572

 

 

 

865

 

 

 

875

 

Share capital

 

 

386,372

 

 

 

387,646

 

 

 

386,665

 

Share premium and capital reserves

 

 

1,257,980

 

 

 

1,291,290

 

 

 

1,266,027

 

Treasury shares

 

 

(1,509

)

 

 

(1,509

)

 

 

(1,509

)

Remeasurement of Net Defined Benefit liability (IAS 19)

 

 

-

 

 

 

3,127

 

 

 

-

 

Presentation currency translation reserve

 

 

1,431

 

 

 

(848

)

 

 

1,407

 

Accumulated loss

 

 

(149,610

)

 

 

(448,990

)

 

 

(309,234

)

Equity attributable to owners of the company

 

 

1,494,664

 

 

 

1,230,716

 

 

 

1,343,356

 

Total equity

 

 

1,495,236

 

 

 

1,231,581

 

 

 

1,344,231

 

Total liabilities and equity

 

 

1,523,915

 

 

 

1,275,927

 

 

 

1,389,955

 

(*) The December 31st , 2021, balances were derived from the Company’s audited annual financial statements.



Unaudited Consolidated Statements of Profit or Loss and Other Comprehensive Income

(In thousands of USD, except per share amounts)
  

 

 

For the Nine-Month
Period Ended
September 30,

 

 

For the Three-Month
Period Ended
September 30,

 

 

For the Year ended
December 31

 

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021(*)

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

2,962

 

 

31,529

 

 

1,340

 

 

9,998

 

 

10,493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

1,380

 

 

 

21,159

 

 

 

696

 

 

 

7,428

 

 

 

5,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues - amortization of inventory and assets recognized in business combination and technology

 

 

772

 

 

 

3,990

 

 

 

281

 

 

 

771

 

 

 

3,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenues

 

 

2,152

 

 

 

25,149

 

 

 

977

 

 

 

8,199

 

 

 

9,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

810

 

 

 

6,380

 

 

 

363

 

 

 

1,799

 

 

 

1,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses, net

 

 

26,587

 

 

 

54,770

 

 

 

13,726

 

 

 

18,535

 

 

 

41,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

 

15,023

 

 

 

29,075

 

 

 

6,301

 

 

 

9,652

 

 

 

22,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

13,174

 

 

 

21,366

 

 

 

4,843

 

 

 

7,417

 

 

 

19,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment losses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

140,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(53,974

)

 

 

(98,831

)

 

 

(24,507

)

 

 

(33,805

)

 

 

(223,211

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

13,065

 

 

 

13,826

 

 

 

6,036

 

 

 

7,001

 

 

 

17,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance expense

 

 

910

 

 

 

56,132

 

 

 

282

 

 

 

40,282

 

 

 

428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before taxes on income

 

 

(41,819

)

 

 

(141,137

)

 

 

(18,753

)

 

 

(67,086

)

 

 

(205,730

)

Tax income (expense)

 

 

648

 

 

 

742

 

 

 

498

 

 

 

(47

 

 

4,906

 

Total loss after tax

 

 

(41,171

)

 

 

(140,395

)

 

 

(18,255

)

 

 

(67,133

)

 

 

(200,824

)

Total loss attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

(18

)

 

 

(639

)

 

 

(18

)

 

 

(202

)

 

 

(47

)

Owners of the Company

 

 

(41,153

)

 

 

(139,756

)

 

 

(18,237

)

 

 

(66,931

)

 

 

(200,777

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic loss per share

 

 

(0.17

)

 

 

(0.54

)

 

 

(0.07

)

 

 

(0.26

)

 

 

(0.81

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income items that after initial recognition in comprehensive income were or will be transferred to profit or loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation differences for foreign operations

 

 

-

 

 

 

(2,351

)

 

 

-

 

 

 

(1,113

)

 

 

(46

)

Remeasurement of net defined benefit liability (IAS 19), net of tax

 

 

-

 

 

 

3,127

 

 

 

-

 

 

 

-

 

 

 

-

 

Total comprehensive loss

 

 

(41,171

)

 

 

(139,619

)

 

 

(18,255

)

 

 

(68,246

)

 

 

(200,870

)

Comprehensive loss attributable to non-controlling interests

 

 

-

 

 

 

(735

)

 

 

-

 

 

 

(247

)

 

 

(69

)

Comprehensive loss attributable to owners of the Company

 

 

(41,171

)

 

 

(138,884

)

 

 

(18,255

)

 

 

(67,999

)

 

 

(200,801

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*)  The December 31st, 2021, balances were derived from the Company’s audited annual financial statements.

 



Consolidated Statements of Changes in Equity (Unaudited)
(In thousands of USD)

 

 

 

 

Share

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

 

premium

 

 

 

currency

 

 

 

 

 

Non-

 

 

 

 

 

Share

 

and capital

 

Treasury

 

translation

 

Accumulated

 

 

 

controlling

 

Total

 

 

 

capital

 

reserves

 

shares

 

reserve

 

loss

 

Total

 

interests

 

equity

 

For the nine months ended September 30, 2022:

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Balance as of January 1, 2022

 

386,665

 

1,266,027

 

(1509

)

1,407

 

(309,234

)

1,343,356

 

875

 

1,344,231

 

Investment of non-controlling party in subsidiary

 

-

 

-

 

-

 

-

 

-

 

-

 

725

 

725

 

Loss for the period

 

-

 

-

 

-

 

-

 

(139,756

)

(139,756

)

(639

)

(140,395

)

Other comprehensive loss for the year, net of tax

 

-

 

3,127

 

-

 

(2,255

)

-

 

872

 

(96

)

776

 

Exercise of options

 

981

 

(981

)

-

 

-

 

-

 

-

 

-

 

-

 

Share-based payment acquired

 

-

 

(744

)

-

 

-

 

-

 

(744

)

-

 

(744

)

Share-based payments

 

-

 

26,988

 

-

 

-

 

-

 

26,988

 

-

 

26,988

 

Balance as of September 30, 2022

 

387,646

 

1,294,417

 

(1509

)

-848

 

(448,990

)

1,230,716

 

865

 

1,231,581

 



Consolidated Statements of Changes in Equity (Unaudited)
(In thousands of USD)

 

 

 

 

Share

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

 

premium

 

 

 

currency

 

 

 

 

 

Non-

 

 

 

 

 

Share

 

and capital

 

Treasury

 

translation

 

Accumulated

 

 

 

controlling

 

Total

 

 

 

capital

 

reserves

 

shares

 

reserve

 

loss

 

Total

 

interests

 

equity

 

For the three months ended September 30, 2022:

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Thousands
USD

 

Balance as of June 30, 2022

 

387,312

 

1,287,451

 

(1509

)

220

 

(382,059

)

1,291,415

 

553

 

1,291,968

 

Investment of non-controlling party in subsidiary

 

-

 

-

 

-

 

-

 

-

 

-

 

559

 

559

 

Loss for the period

 

-

 

-

 

-

 

-

 

-66,931

 

(66931

)

(202

)

(67,133

)

Other comprehensive loss for the year, net of tax

 

-

 

-

 

-

 

(1068

)

-

 

(1068

)

(45

)

(1113

)

Exercise of options

 

334

 

(334

)

-

 

-

 

-

 

-

 

-

 

-

 

Share-based payment acquired

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

Share-based payments

 

-

 

7,300

 

-

 

-

 

-

 

7,300

 

-

 

7,300

 

Balance as of September 30, 2022

 

387,646

 

1,294,417

 

(1509

)

(848

)

(448,990

)

1,230,716

 

865

 

1,231,581

 



Consolidated Statements of Cash Flows (Unaudited)
(In thousands of USD)

 

 

For the
Nine-Month Period
Ended September 30th,

 

 

For the
Three-Month Period
Ended September 30th,

 

 

For the Year
ended
December 31st,

 

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021(*)

 

Cash flow from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(41,171

)

 

 

(140,395

)

 

 

(18,255

)

 

 

(67,133

)

 

 

(200,824

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

4,978

 

 

 

6,084

 

 

 

2,392

 

 

 

3,228

 

 

 

7,383

 

Impairment losses

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

140,290

 

Financing expenses (income), net

 

 

(1,799

)

 

 

9,089

 

 

 

(499

)

 

 

(3,466

)

 

 

(6,873

)

Revaluation of financial liabilities accounted at fair value

 

 

(10,356

)

 

 

(4,851

)

 

 

(5,255

)

 

 

(1,934

)

 

 

(10,608

)

Loss from disposal of property plant and equipment and right-of-use assets

 

 

72

 

 

 

91

 

 

 

30

 

 

 

97

 

 

 

567

 

Increase in deferred tax

 

 

(734

)

 

 

(1,441

)

 

 

(499

)

 

 

(109

)

 

 

(5,013

)

Revaluation of financial assets accounted at fair value

 

 

-

 

 

 

38,068

 

 

 

-

 

 

 

38,681

 

 

 

-

 

Share-based payments

 

 

21,503

 

 

 

26,637

 

 

 

10,186

 

 

 

7,300

 

 

 

29,782

 

Salary expenses paid by non-controlling interest (NCI)

 

 

-

 

 

 

216

 

 

 

-

 

 

 

50

 

 

 

-

 

 

 

 

13,664

 

 

 

73,893

 

 

 

6,355

 

 

 

43,847

 

 

 

155,528

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in inventory

 

 

(591

)

 

 

(3,384

)

 

 

85

 

 

 

(1,506

)

 

 

2,382

 

Decrease (increase) in other receivables

 

 

(9

)

 

 

3,574

 

 

 

(130

)

 

 

3,871

 

 

 

(429

)

Decrease (increase) in trade receivables

 

 

(510

)

 

 

(1,761

)

 

 

(371

)

 

 

198

 

 

 

(449

)

Increase (decrease) in other payables

 

 

(70

)

 

 

1,333

 

 

 

836

 

 

 

(64

)

 

 

1,139

 

Increase (decrease) in employee benefits

 

 

-

 

 

 

1,101

 

 

 

-

 

 

 

(635

)

 

 

-

 

Increase (decrease) in trade payables

 

 

629

 

 

 

(42

)

 

 

218

 

 

 

(881

)

 

 

74

 

 

 

 

(551

)

 

 

821

 

 

 

638

 

 

 

983

 

 

 

2,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

 

 

(28,058

)

 

 

(65,681

)

 

 

(11,262

)

 

 

(22,303

)

 

 

(42,579

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in bank deposits and loans, net

 

 

(171,929

)

 

 

(187,412

)

 

 

104,490

 

 

 

(140,921

)

 

 

(416,019

)

Interest received

 

 

2,621

 

 

 

4,634

 

 

 

910

 

 

 

2,143

 

 

 

3,706

 

Change in restricted bank deposits

 

 

(31

)

 

 

(16

)

 

 

(3

)

 

 

59

 

 

 

(32

)

Acquisition of property plant and equipment

 

 

(2,165

)

 

 

(6,059

)

 

 

(1,150

)

 

 

(1,520

)

 

 

(9,761

)

Payment of a liability to pay a contingent consideration of business combination

 

 

-

 

 

 

(10,708

)

 

 

-

 

 

 

(709

)

 

 

-

 

Investment in shares measured in fair value through profit and loss

 

 

-

 

 

 

(177,775

)

 

 

-

 

 

 

(159,972

)

 

 

-

 

Acquisition of subsidiary, net of cash acquired

 

 

(62,644

)

 

 

(31,058

)

 

 

-

 

 

 

(12,899

)

 

 

(74,574

(

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

(234,148

)

 

 

(408,394

)

 

 

104,247

 

 

 

(313,819

)

 

 

(496,680

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of Ordinary Shares, warrants and convertible notes, net

 

 

805,497

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

805,497

 

Exercise of warrants and options

 

 

150

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

212

 

Lease payments

 

 

(1,246

)

 

 

(3,088

)

 

 

(445

)

 

 

(1,207

)

 

 

(1,494

)

Proceeds from non-controlling interests

 

 

590

 

 

 

510

 

 

 

590

 

 

 

510

 

 

 

944

 

Repayment of long-term bank debt

 

 

-

 

 

 

(303

)

 

 

-

 

 

 

(85

)

 

 

(814

)

Amounts recognized in respect of government grants liability, net

 

 

(7

)

 

 

(132

)

 

 

(35

)

 

 

(39

)

 

 

(96

)

Share-based payment acquired

 

 

-

 

 

 

(744

)

 

 

-

 

 

 

-

 

 

 

-

 

Interest and other fees paid

 

 

(5

)

 

 

(95

)

 

 

22

 

 

 

(42

)

 

 

(70

)

Net cash provided by financing activities

 

 

804,979

 

 

 

(3,852

)

 

 

132

 

 

 

(863

)

 

 

804,179

 

Increase in cash

 

 

542,773

 

 

 

(477,927

)

 

 

93,117

 

 

 

(336,985

)

 

 

264,920

 

Cash at beginning of the period

 

 

585,338

 

 

 

853,626

 

 

 

1,034,838

 

 

 

706,220

 

 

 

585,338

 

Effect of exchange rate fluctuations on cash

 

 

(333

)

 

 

(5,502

)

 

 

(177

)

 

 

962

 

 

 

3,368

 

Cash at end of the period

 

 

1,127,778

 

 

 

370,197

 

 

 

1,127,778

 

 

 

370,197

 

 

 

853,626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property plant and equipment acquired on credit

 

 

102

 

 

 

509

 

 

 

75

 

 

 

474

 

 

 

249

 

Conversion of convertible notes and warrants to equity

 

 

2,830

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,830

 

Acquisition of a right-of-use asset

 

 

1,890

 

 

 

11,536

 

 

 

90

 

 

 

286

 

 

 

1,919

 

Acquisition of financial assets in fair value through profit and loss against credit received

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,158

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*)  The December 31st, 2021, balances were derived from the Company’s audited annual financial statements.

 



Non-IFRS measures

The following is a reconciliation of EBITDA and Adjusted EBITDA to loss before taxes, as calculated in accordance with International Financial Reporting Standards (“IFRS”):

 

 

For the
Nine -Month
Period Ended
September 30th,

 

 

For the
Three-Month
Period Ended
September 30th,

 

 

 

2022

 

 

 

In thousands of USD

 

Loss before taxes on income

 

 

(141,137

)

 

 

(67,086

)

Depreciation and amortization (*)

 

 

7,617

 

 

 

2,345

 

Interest expense (income)

 

 

(8,962

)

 

 

(4,715

)

EBITDA (loss)

 

 

(142,482

)

 

 

(69,456

)

Finance expense for revaluation of assets and liabilities

 

 

33,368

 

 

 

36,535

 

Exchange rate differences

 

 

17,805

 

 

 

1,420

 

Share-based payments

 

 

26,637

 

 

 

7,300

 

Adjusted EBITDA (loss)

 

 

(64,672

)

 

 

(24,201

)

 

 

 

 

 

 

 

 

 

Gross profit

 

 

6,380

 

 

 

1,799

 

Amortization of inventory and intangibles

 

 

3,990

 

 

 

771

 

Adjusted gross profit, excluding amortization of intangible assets

 

 

10,370

 

 

 

2,570

 


(*) Including amortization of assets recognized in business combination and technology

EBITDA is a non-IFRS measure and is defined as total comprehensive loss before taxes excluding depreciation and amortization expenses and amortization of assets recognized in business combination and interest expense or income. We believe that EBITDA, as described above, should be considered in evaluating the Company’s operations. EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), and EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to the items mentioned above.

Adjusted EBITDA is a non-IFRS measure and is defined as total comprehensive loss before taxes excluding depreciation and amortization expenses and amortization of assets recognized in business combination, interest expenses or income, finance expense (income) for revaluation of assets and liabilities, exchange rate differences and share-based payments. We believe that Adjusted EBITDA, as described above, should also be considered in evaluating the Company’s operations. Like EBITDA, Adjusted EBITDA facilitates the Company’s performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, and the age and depreciation charges and amortization of fixed and intangible assets, respectively (affecting relative depreciation and amortization expense, respectively), as well as from revaluation of assets and liabilities, exchange rate differences and share-based payment expenses. Adjusted EBITDA is useful to an investor in evaluating our operating performance because it is widely used by investors, securities analysts and other interested parties to measure a company’s operating performance without regard to non-cash items, such as expenses related to revaluation, exchange rate differences and share-based payments.

Adjusted gross profit, excluding amortization of inventory and intangibles, is a non-IFRS measure and is defined as gross profit excluding amortization expenses. We believe that adjusted gross profit, as described above, should also be considered in evaluating the Company’s operations. Adjusted gross profit facilitates gross profit and gross margin comparisons from period to period and company to company by backing out potential differences caused by variations in amortization of inventory and intangible assets. Adjusted gross profit is useful to an investor in evaluating our performance because it enables investors, securities analysts and other interested parties to measure a company’s performance without regard to non-cash items, such as amortization expenses.

EBITDA, Adjusted EBITDA, and adjusted gross profit do not represent cash generated by operating activities in accordance with IFRS and should not be considered alternatives to net income (loss) as indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income (loss) as presented in our consolidated statements of profit or loss and other comprehensive income. Other companies may calculate these measures differently than we do.


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