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Nano Dimension’s Q1/22 Revenue Run-Rate Indicates Approximately 300% Growth Expected in Full Year 2022 over 2021

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Nano Dimension Ltd.
Nano Dimension Ltd.

Revenues for Q1/2022 $10.4M, 1,186% over Q1/2021, 38% over Q4/2021
Conference call to be held today at 9:00 a.m. EDT

WALTHAM, Mass., May 31, 2022 (GLOBE NEWSWIRE) -- Nano Dimension Ltd. (Nasdaq: NNDM, “Nano Dimension” or the “Company”), an industry leader in Additively Manufactured Electronics (AME) and Micro Additive Manufacturing (Micro-AM), today announced financial results for the first quarter ended March 31st, 2022.

Nano Dimension reported revenues of $10,430,000 for the first quarter of 2022, an increase of 1,186% over the same quarter in 2021, and an increase of 38% over the fourth quarter of 2021.

Moreover, the first 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 will perform ahead of its own expectations, by growing revenue over 10 times from 2020 to 2022, assuming no critical changes in world economy resulting from current international affairs and/or other factors.

The Company ended the quarter with a cash and deposits balance of $1.311 Billion (including short and long-term unrestricted bank deposits), while net loss for the first quarter was $33.3 million and EBITDA was negative $29.3 million.

Excluding $13.7 million of adjustments for share-based payments and depreciation and amortization expenses:

  • Adjusted net loss was $19.6 million.

  • Gross margin (excluding amortization of intangible assets, also recognized in business combination) was 37%.

  • Adjusted EBITDA was negative $19.2 million.

  • Adjusted EBITDA net of $11.7 million of R&D cash expenses was negative $7.5 million.

Net cash used in operations during the first quarter of 2022 was $21.4 million.
Details regarding EBITDA and Adjusted EBITDA can be found later in this press release under “Non-IFRS measures”.

CEO MESSAGE TO SHAREHOLDERS:

Few observations should be noted as our revenue grows and we endeavor to supplement it, over time, with improved profitability:

  • Gross Margin (“GM”): GM is affected by changing mixture of our products: over 60% GM for the new and disruptive Additive Manufacturing (AM) systems, similar and higher GM for materials, and 35%-50% GM for our other products such as surface mounting and ink printing machines and subsystems.

  • Net Cash Burn: The majority ($11.7 million) of the $21.4 million net cash used in operations in the first quarter of 2022, was our investment in the research and development (R&D) efforts.

  • R&D Expense: We have spent approximately 23% less in R&D in comparison to our budget. Our expenses in sales and marketing are below budget as well. These are indications of the difficulties we have in recruiting the quality scientists and engineers that we need, especially in the USA and Israel, and specifically in the fields of software, data science, algorithm design and material science as well as high level technical sales and application engineers. This phenomenon affects our ability to accelerate our business plans. If it was up to us, the R&D figure would have been higher, in order to shorten the return on investment (ROI) timeline.

  • Cost of Labor: We are hoping that the current trends in employment and salaries will reduce the intensity of the point above, and support our need for increased recruitment pace, specifically of high-quality research and sales personnel.

  • ROI: As we have declared many times over the last few quarters, as we increase our revenue and invest in R&D, the profitability that will lead to ROI on the cash investment in R&D is not going to be demonstrated on an immediate quarterly basis, but it is rather expected to take at least 8-12 quarters until it will hopefully be manifested as return on capital invested, in the EBITDA and profits lines.

The vision of the Company was expanded based on the conclusion we have reached from analyzing the following data points:

  • Nano Dimension’s successful current growth, through expansion of revenues in Additive Manufacturing Electronics.

  • The emerging results of growth originated by acquisitions and the organic growth thereof under Nano Dimension’ Go-To-Market and technology development umbrellas.

  • The obvious contraction of multiples in the public and private market which justify our previous thesis of not burning our cash by buying at overly inflated values.

  • Ample opportunities emerging in Additive Manufacturing, as well as in adjacent technologies in need of AI, Deep Learning and digital conversions.

Our vision continues to evolve as we look to transform AM & AM Electronics & adjacent industrial non-yet-fully-digitalized sectors into an environmentally friendly & economically efficient additive manufacturing Industry 4.0 – enabling a one production-step-conversion of digital designs into functioning mechanical & electronic devices, On demand, anytime, anywhere.

The business plan aimed at reaching the above is heading in a similar direction as before but with a wider field of view, in order to cover the new opportunities arising from the dramatic changes in the markets. We hope that if contraction of multiples and valuation is sustainable, acquisitions will continue to be at more reasonable prices, which were not available over the last two years.

On a related matter, as a high-tech growth company, buyers of our shares at the current price, as it trades below its cash value, actually imitate an investment in a “value company.” In practical terms it means that Nano Dimension’s share price represents a potential valuation upside of a high growth business but with lower downside, more similar to a value-model investment profile. Hence, we changed our previous intention with respect to a Share (ADS) Buy-Back program and initiated a process to facilitate such plan which is conditioned on receipt of Israeli court approval (as needed for all programs as such, according to Israeli Corporate Law). We will provide an update once such approval is received.

FINANCIAL RESULTS:

First Quarter 2022 Financial Results

Total revenues for the first quarter of 2022 were $10,430,000, compared to $7,531,000 in the fourth quarter of 2021, and $811,000 in the first quarter of 2021. The increase is attributed to increased sales of the Company’s product lines.

 

 

Cost of revenues (excluding amortization of intangibles) for the first quarter of 2022 were $6,580,000, compared to $4,350,000 in the fourth quarter of 2021, and $352,000 in the first quarter of 2021. The increase is attributed mostly to the increased sales of the Company’s product lines.

 

 

Research and development expenses for the first quarter of 2022 were $17,870,000, compared to $15,099,000 in the fourth quarter of 2021, and $3,732,000 in the first quarter of 2021. The increase is attributed to an increase in payroll expenses and share-based payment expenses, as a result of the Company’s increased R&D efforts.
      o   The R&D expenses net of depreciation and share-based payments expenses were $11,723,000.

 

 

Sales and marketing (S&M) expenses for the first quarter of 2022 were $9,308,000, compared to $7,690,000 in the fourth quarter of 2021, and $2,713,000 in the first quarter of 2021. The increase compared to the fourth quarter of 2021 is attributed to an increase in payroll expenses as a result of our growing sales and marketing team. The increase compared to the first quarter of 2021 is attributed to an increase in payroll expenses as well as an increase in share-based payment expenses.
      o   The S&M expenses net of depreciation and share-based payments expenses were $6,393,000.

 

 

General and administrative (G&A) expenses for the first quarter of 2022 were $6,742,000, compared to $6,470,000 in the fourth quarter of 2021, and $3,425,000 in the first quarter of 2021. The increase compared to the fourth quarter of 2021 is attributed to an increase in payroll expenses. The increase compared to the first quarter of 2021 is attributed to an increase in payroll expenses and share-based payment expenses, as well as an increase in professional services expenses.
      o   The G&A expenses net of depreciation and share-based payments expenses were $5,219,000.

 

 

Net loss for the first quarter of 2022 attributed to the owners was $33,093,000, or $0.13 per share, compared to $159,624,000, or $0.62 per share, in the fourth quarter of 2021, and $9,314,000, or $0.05 per share, in the first quarter of 2021.


Balance Sheet Highlights

Cash and cash equivalents, together with short and long-term bank deposits totaled $1,311,093,000 as of March 31st, 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 $1,320,520,000 as of March 31st, 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, May 31, 2022, at 9:00 a.m. EDT (4:00 p.m. IDT). U.S. Dial-in Number: 1-866-744-5399, Israel Dial-in Number: 972-3-9180692. 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. 
Additionally, 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, which can all be controlled by the proprietary software system - Atlas.
Serving similar users of Hi-PEDs®, Nano Dimension’s 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. The Fabrica 2.0 is engineered with a patented array of sensors that allows a closed feedback loop, using proprietary materials to achieve very high accuracy while remaining a cost-effective mass manufacturing solution. It is used in the areas of micron-level resolution of medical devices, micro-optics, semiconductors, micro-electronics, micro-electro-mechanical systems (MEMS), microfluidics, and life sciences instruments. 

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 its expected revenues for 2022, its vision for the future, including regarding expected growth, profitability, acquisitions, opportunities and contractions of multiples and expected valuations, potential return on investment and the repurchase plan. 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

 

 

March 31st,

 

December 31st,

 

 

 

2021

 

 

2022

 

 

2021(*)

 

(In thousands of USD)

 

(Unaudited)

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

1,099,057

 

 

 

788,141

 

 

 

853,626

 

Bank deposits

 

 

296,844

 

 

 

459,824

 

 

 

437,598

 

Restricted deposits

 

 

61

 

 

 

126

 

 

 

148

 

Trade receivables

 

 

999

 

 

 

6,242

 

 

 

3,422

 

Other receivables

 

 

972

 

 

 

7,307

 

 

 

5,902

 

Inventory

 

 

3,164

 

 

 

15,063

 

 

 

11,199

 

Total current assets

 

 

1,401,097

 

 

 

1,276,703

 

 

 

1,311,895

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted deposits

 

 

391

 

 

 

491

 

 

 

501

 

Bank deposits

 

 

75,113

 

 

 

63,128

 

 

 

64,371

 

Deferred tax

 

 

-

 

 

 

1,005

 

 

 

1,007

 

Property plant and equipment, net

 

 

5,422

 

 

 

9,844

 

 

 

7,690

 

Right of use asset

 

 

4,103

 

 

 

15,142

 

 

 

4,491

 

Intangible assets

 

 

4,243

 

 

 

21,358

 

 

 

-

 

Total non-current assets

 

 

89,272

 

 

 

110,968

 

 

 

78,060

 

Total assets

 

 

1,490,369

 

 

 

1,387,671

 

 

 

1,389,955

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Trade payables

 

 

1,654

 

 

 

3,785

 

 

 

2,833

 

Financial derivatives

 

 

-

 

 

 

19,977

 

 

 

14,910

 

Other payables

 

 

5,449

 

 

 

19,304

 

 

 

13,836

 

Current portion of other long-term liability

 

 

-

 

 

 

416

 

 

 

417

 

Total current liabilities

 

 

7,103

 

 

 

43,482

 

 

 

31,996

 

 

 

 

 

 

 

 

 

 

 

 

 

Liability in respect of government grants

 

 

754

 

 

 

1,639

 

 

 

1,560

 

Employee benefits

 

 

-

 

 

 

4,138

 

 

 

4,145

 

Liability in respect of warrants

 

 

-

 

 

 

1,760

 

 

 

3,347

 

Lease liability

 

 

3,277

 

 

 

12,395

 

 

 

3,336

 

Deferred tax liabilities

 

 

9,570

 

 

 

1,101

 

 

 

236

 

Other long-term liabilities

 

 

-

 

 

 

1,849

 

 

 

1,104

 

Total non-current liabilities

 

 

13,601

 

 

 

22,882

 

 

 

13,728

 

Total liabilities

 

 

20,704

 

 

 

66,364

 

 

 

45,724

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

-

 

 

 

787

 

 

 

875

 

Share capital

 

 

375,594

 

 

 

386,723

 

 

 

386,665

 

Share premium and capital reserves

 

 

1,211,920

 

 

 

1,276,443

 

 

 

1,266,027

 

Treasury shares

 

 

(1,509

)

 

 

(1,509

)

 

 

(1,509

)

Presentation currency translation reserve

 

 

1,431

 

 

 

1,190

 

 

 

1,407

 

Accumulated loss

 

 

(117,771

)

 

 

(342,327

)

 

 

(309,234

)

Equity attributable to owners of the company

 

 

-

 

 

 

1,320,520

 

 

 

1,343,356

 

Total equity

 

 

1,469,665

 

 

 

1,321,307

 

 

 

1,344,231

 

Total liabilities and equity

 

 

1,490,369

 

 

 

1,387,671

 

 

 

1,389,955

 

(*) The December 31, 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 Three-Month Period
Ended March 31st,

 

For the Year Ended
December 31st,

 

 

2021

 

 

2022

 

 

2021(*)

 

 

 

 

 

 

 

Revenues

 

 

811

 

 

 

10,430

 

 

 

10,493

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

352

 

 

 

6,580

 

 

 

5,730

 

 

 

 

 

 

 

 

 

 

 

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

 

 

197

 

 

 

2,849

 

 

 

3,641

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenues

 

 

549

 

 

 

9,429

 

 

 

9,371

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

262

 

 

 

1,001

 

 

 

1,122

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses, net

 

 

3,732

 

 

 

17,870

 

 

 

41,686

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing expenses

 

 

2,713

 

 

 

9,308

 

 

 

22,713

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

3,425

 

 

 

6,742

 

 

 

19,644

 

 

 

 

 

 

 

 

 

 

 

Impairment losses

 

 

-

 

 

 

-

 

 

 

140,290

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(9,608

)

 

 

(32,919

)

 

 

(223,211

)

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

818

 

 

 

2,861

 

 

 

17,909

 

 

 

 

 

 

 

 

 

 

 

Finance expense

 

 

(524

)

 

 

(3,685

)

 

 

(428

)

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss

 

 

(9,314

)

 

 

(33,743

)

 

 

(205,730

)

 

 

 

 

 

 

 

 

 

 

Tax income

 

 

-

 

 

 

455

 

 

 

4,906

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss after tax

 

 

(9,314

)

 

 

(33,288

)

 

 

(200,824

)

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

-

 

 

 

(195

)

 

 

(47

)

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

(9,314

)

 

 

(33,093

)

 

 

(200,777

)

 

 

 

 

 

 

 

 

 

 

Basic loss per share

 

 

(0.05

)

 

 

0.13

)

 

 

(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

 

 

-

 

 

 

232

 

 

 

(46

)

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss

 

 

(9,314

)

 

 

(33,520

)

 

 

(200,870

)

Comprehensive loss attributable to non-controlling interests

 

 

-

 

 

 

(210

)

 

 

(69

)

Comprehensive loss attributable to owners of the Company

 

 

(9,314

)

 

 

(33,310

)

 

 

(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 capital

 

Share premium and capital reserves

 

 

Treasury shares

 

 

Foreign currency translation reserve

 

 

Accumulated loss

 

 

Total

 

 

Non-controlling interests

 

 

Total equity

For the three months ended March 31st, 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

 

 

(1,509

)

 

1,407

 

 

(309,234

)

 

1,343,356

 

 

875

 

 

1,344,231

 

Investment of non-controlling party in subsidiary

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

122

 

 

122

 

Loss for the period

 

-

 

-

 

 

-

 

 

-

 

 

(33, 093

)

 

(33,093

)

 

(195

)

 

(33,288

)

Other comprehensive loss for the period

 

-

 

-

 

 

-

 

 

(217

)

 

-

 

 

(217

)

 

(15

)

 

(232

)

Exercise of warrants and options and conversion of convertible notes

 

58

 

(58

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Share-based payments

 

-

 

10,474

 

 

-

 

 

-

 

 

-

 

 

10,474

 

 

-

 

 

10,474

 

Balance as of March 31st, 2022

 

386,723

 

1,276,443

 

 

(1,509

)

 

1,190

 

 

(342,327

)

 

1,320,520

 

 

787

 

 

1,321,307

 



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

 

 

For the Three-Month Period Ended
March 31st,

 

For the
Year ended
December 31st,

 

 

 

2021

 

 

2022

 

 

2021 (*)

 

Cash flow from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

 

(9,314

)

 

 

(33,288

)

 

 

(200,824

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

787

 

 

 

1,141

 

 

 

7,383

 

Impairment losses

 

 

-

 

 

 

-

 

 

 

140,290

 

Financing expenses (income), net

 

 

(708

)

 

 

2,194

 

 

 

(6,873

)

Revaluation of financial liabilities accounted at fair value

 

 

414

 

 

 

(1,370

)

 

 

(10,608

)

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

 

 

2

 

 

 

(3

)

 

 

567

 

Increase in deferred tax

 

 

-

 

 

 

(461

)

 

 

(5,013

)

Share-based payments

 

 

3,435

 

 

 

10,123

 

 

 

29,782

 

Salary expenses paid by NCI

 

 

-

 

 

 

122

 

 

 

-

 

 

 

 

3,930

 

 

 

11,746

 

 

 

155,528

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in inventory

 

 

150

 

 

 

(468

)

 

 

2,382

 

Decrease (increase) in other receivables

 

 

154

 

 

 

(851

)

 

 

(429

)

Decrease (increase) in trade receivables

 

 

(286

)

 

 

(2,175

)

 

 

(449

)

Increase (decrease) in other payables

 

 

(649

)

 

 

1,724

 

 

 

1,139

 

Increase in employee benefits

 

 

-

 

 

 

1,148

 

 

 

-

 

Increase in trade payables

 

 

837

 

 

 

729

 

 

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

206

 

 

 

107

 

 

 

2,717

 

Net cash used in operating activities

 

 

(5,178

)

 

 

(21,435

)

 

 

(42,579

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

 

 

 

 

 

 

Investment in bank deposits, net

 

 

(286,065

)

 

 

(21,907

)

 

 

(416,019

)

Interest received

 

 

432

 

 

 

762

 

 

 

3,706

 

Change in restricted bank deposits

 

 

16

 

 

 

20

 

 

 

(32

)

Acquisition of property plant and equipment

 

 

(599

)

 

 

(1,975

)

 

 

(9,761

)

Acquisition of subsidiary, net of cash acquired

 

 

-

 

 

 

(18,124

)

 

 

(74,574

)

Net cash used in investing activities

 

 

(286,216

)

 

 

(41,224

)

 

 

(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

 

 

100

 

 

 

-

 

 

 

212

 

Lease payments

 

 

(304

)

 

 

(796

)

 

 

(1,494

)

Proceeds from non-controlling interests

 

 

-

 

 

 

-

 

 

 

944

 

Long-term bank debt

 

 

-

 

 

 

(80

)

 

 

(814

)

Amounts recognized in respect of government grants liability, net

 

 

(72

)

 

 

(45

)

 

 

(96

)

Interest and other fees paid

 

 

(9

)

 

 

(28

)

 

 

(70

)

Net cash provided by financing activities

 

 

805,212

 

 

 

(949

)

 

 

804,179

 

Increase in cash

 

 

513,818

 

 

 

(63,608

)

 

 

264,920

 

Cash at beginning of the period

 

 

585,338

 

 

 

853,626

 

 

 

585,338

 

Effect of exchange rate fluctuations on cash

 

 

(99

)

 

 

(1,877

)

 

 

3,368

 

Cash at end of the period

 

 

1,099,057

 

 

 

788,141

 

 

 

853,626

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash transactions:

 

 

 

 

 

 

 

 

 

 

 

Property plant and equipment acquired on credit

 

 

41

 

 

 

211

 

 

 

249

 

Conversion of convertible notes and warrants to equity

 

 

2,830

 

 

 

-

 

 

 

2,830

 

Acquisition of a right-of-use asset

 

 

1,217

 

 

 

11,237

 

 

 

1,919

 

(*) 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 net loss, as calculated in accordance with International Financial Reporting Standards (“IFRS”):

 

 

 

 

 

 

 

 

For the Three-Month Period
Ended
March 31st,

 

 

 

 

2022

 

 

 

 

(In thousands of USD)

 

Operating loss

 

 

(32,919

)

Depreciation and amortization (*)

 

 

3,605

 

EBITDA

 

 

(29,314

)

Share-based payments

 

 

10,123

 

Adjusted EBITDA

 

 

(19,191

)

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

EBITDA is a non-IFRS measure and is defined as operating loss excluding depreciation and amortization expenses and amortization of assets recognized in business combination. We believe that EBITDA, as described above, should be considered in evaluating the Company’s operations. EBITDA facilitates operating 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 operating loss excluding depreciation and amortization expenses and amortization of assets recognized in business combination 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 operating 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 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 share-based payments.

EBITDA and Adjusted EBITDA 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 EBITDA and Adjusted EBITDA differently than we do.