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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.