Actelis Networks, Inc. (NASDAQ: ASNS) (“Actelis”
or the “Company”), a market leader in cyber-hardened, rapid
deployment networking solutions for wide area IoT applications,
today reported financial results for the fiscal first quarter ended
March 31, 2024.
First Quarter 2024 Financial
Highlights:
- Strategic shift to IoT
sales continues: Revenue at $0.73 million for the first
quarter ended March 31, 2024 compared to $1.85 million in the year
ago period, driven by delay in customer order delivery to the
second quarter of 2024.
- Fixed costs maintained in
anticipation of next quarters’ growth: Gross Margin at 30%
for the first quarter ended March 31, 2024, compared to 37% for the
three months ended March 31, 2023, driven by lower revenue offset
by indirect costs that are down 20%.
- Operating expense
improvement driving net loss near parity: Operating
expenses declined 20% to $2.09 million for the first quarter ended
March 31, 2024 compared to $2.55 million in the year ago period,
driving net Loss to remain nearly the same at $2.0 million in the 3
months ended March 31, 2024 compared to $1.9 million in the year
ago period.
- Non-GAAP adjusted EBITDA loss was
$1.8 million for the first quarter ended March 31, 2024, compared
to $1.6 million in the prior year period.
Recent Company Highlights:
- Major order win of $2.3 million for
immediate delivery from Washington D.C.’s Department of
Transportation to modernize the city infrastructure as part of its
smart city upgrades.
- Successful implementation of
hybrid-fiber, cyber-hardened solution in the city of Bakersfield,
CA
- The Company continued to pursue a
partnership in the cyber-aware-networking space to secure the
surrounding devices to the Actelis network.
- The Company’s expense reduction
program continues through first and second quarters of 2024, in
advance of economic softness. Actual spending is in line with plan
at 20% lower operating expenses in the first quarter of 2024
compared to the year ago period. Additional expense reductions have
been executed during the last few months, continuing the positive
trend.
- Multiple telecom carrier and IoT
customer trials scheduled for the coming months for the new
GigaLine 800 and GigaLine 900 Multi Dwelling Unit (MDU) solutions,
exploring additional verticals where these can be deployed in IoT
networking.
- Yoav Efron the Company’s Chief
Financial Officer has been promoted to Deputy CEO and CFO, on top
of his duties as CFO which he will continue to assume, denoting his
significant involvement and impact on the strategic and operational
progress the Company is making.
- The war in Israel has not affected
the Company’s operations, we are keeping a close look as the
situation evolves and preparing for any necessary adjustments.
“Actelis continues to drive momentum in customer
acquisitions, partnerships in technology and sales distribution and
expansion. I am pleased with our progress with cyber-aware
networking as we combine our own expertise with those of 3rd party
technology partners. Our solutions continue to win customers
domestically and internationally, some already disclosed and others
moving through our pipeline, and our partner network has expanded
adding new names we just recently announced such as Carahsoft and
Netceed to name a few,” said Tuvia Barlev, Chairman and CEO of
Actelis. Despite macroeconomic headwinds, cyber-secure IoT
connectivity of everything is essential in all our verticals for
any data-oriented solution.”
"We will continue to invest in developing our
target markets and look for cost saving measures operationally as
we enter our third year as a publicly traded company. We are
continuing our investment in the opportunities in IoT and cyber
aware networking strengthened by our FIPS compliance and continue
to serve residential and enterprise telecom customers with our new
MDU solution,” Barlev added. “Overall, we are excited by our growth
opportunity and future prospects as we continue to execute on our
strategy.”
Fiscal First Quarter 2024 Financial
Results:
Revenues for the three months
ended March 31, 2024, amounted to $0.73 million, compared to $1.85
million for the three months ended March 31, 2023. The decrease
from the corresponding period was primarily attributable to a
decrease of $236,000 of revenues generated from North America, a
decrease of $636,000 of revenues generated from Europe the Middle
East and Africa as a major project phase completed in the three
months ended March 31, 2023, and a decrease of $250,000 of revenues
generated from Asia Pacific.
Cost of revenues for the three
months ended March 31, 2024, amounted to $0.51 million compared to
$1.16 million for the three months ended March 31, 2023. The
decrease from the corresponding period was mainly due to the
decrease in revenues, partially offset by the higher effect of
indirect costs as a higher percent of the lower revenues.
Gross profit for the three
months ended March 31, 2024, amounted to $220,000 or 30% of
revenue, compared to $688,000, or 37% of revenue for the three
months ended March 31, 2023. The decrease from the corresponding
period was mainly due to a favorable product mix and higher effect
of indirect costs as a higher percent of the lower revenues.
Research and development
expenses for the three months ended March 31, 2024,
amounted to $0.65 million compared to $0.76 million for the three
months ended March 31, 2023. The decrease is mainly due to a
decrease in payroll expenses.
Sales and marketing expenses
for the three months ended March 31, 2024, amounted to $0.63
million compared to $0.93 million for the three months ended March
31, 2023. The decrease was mainly due to a decrease in commission
expenses as a result of the decrease in revenues primarily driven
by the project phase completion in Europe, and a decrease in
payroll associated with the Company’s cost reduction measures.
General and administrative
expenses for the three months ended March 31, 2024,
amounted to $0.82 million compared to $0.87 million for the three
months ended March 31, 2023.
Operating loss for the three
months ended March 31, 2024, was $1.87 million, compared to an
operating income of $1.86 million for the three months ended March
31, 2023.
Other Financial expenses, net and
interest expenses for the three months ended March 31,
2024, were $0.12 million (including $0.2 million interest expenses)
compared to $0.03 million (including $0.2 million interest
expenses) for the three months ended March 31, 2023. The increase
is mainly due to a decrease in income from exchange rate
differences.
Net loss for the three months
ended March 31, 2024, was $2.0 million, compared to net loss of
$1.9 million for the three months ended March 31, 2023.
Adjusted EBITDA loss, a
non-GAAP measurement of operating performance (reconciled below to
Net Loss), for the three months ended March 31, 2024, was $1.8
million, compared to $1.6 million in the comparable year-ago
period. This was primarily a result of a decrease in revenues.
The Company reported a balance
sheet with $10.5 million of total assets compared to $11.2
million as of December 31, 2023, $12.0 million of total liabilities
compared to $10.8 million as of December 31, 2023, $0.2 million of
Mezzanine equity compared to $0.2 million as of December 31,2023,
and $1.7 million of capital deficiency compared to shareholders
equity of $0.2 million as of December 31, 2023.
About Actelis Networks, Inc.
Actelis Networks, Inc. (NASDAQ: ASNS) is a
market leader in cyber-hardened, rapid-deployment hybrid fiber
networking solutions for wide-area IoT applications including
federal, state and local government, ITS, military, utility, rail,
telecom and campus applications. Actelis’ unique portfolio of
hybrid fiber-copper, environmentally hardened aggregation switches,
high density Ethernet devices, advanced management software and
cyber-protection capabilities, unlocks the hidden value of
essential networks, delivering safer connectivity for rapid,
cost-effective deployment. For more information, please visit
www.actelis.com.
Use of Non-GAAP Financial
Information
Non-GAAP Adjusted EBITDA, and backlog of open
orders are Non-GAAP financial measures. In addition to reporting
financial results in accordance with GAAP, we provide Non-GAAP
operating results adjusted for certain items, including: financial
expenses, which are interest, financial instrument fair value
adjustments, exchange rate differences of assets and liabilities,
stock based compensation expenses, depreciation and amortization
expense, tax expense, and impact of development expenses ahead of
product launch. We adjust for the items listed above and show
Non-GAAP financial measures in all periods presented, unless the
impact is clearly immaterial to our financial statements. When we
calculate the tax effect of the adjustments, we include all current
and deferred income tax expense commensurate with the adjusted
measure of pre-tax profitability.
Cautionary Statement Concerning
Forward-Looking StatementsThis press release contains
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and other 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. Forward-looking statements are not historical facts,
and are based upon management’s current expectations, beliefs and
projections, many of which, by their nature, are inherently
uncertain. Such expectations, beliefs and projections are expressed
in good faith. However, there can be no assurance that management’s
expectations, beliefs and projections will be achieved, and actual
results may differ materially from what is expressed in or
indicated by the forward-looking statements. Forward-looking
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the forward-looking statements. More detailed
information about the Company and the risk factors that may affect
the realization of forward-looking statements is set forth in the
Company’s filings with the Securities and Exchange Commission
(SEC), including the Company’s Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q. Investors and security holders are
urged to read these documents free of charge on the SEC’s web site
at http://www.sec.gov.
Forward-looking statements speak only as of the
date the statements are made. The Company assumes no obligation to
update forward-looking statements to reflect actual results,
subsequent events or circumstances, changes in assumptions or
changes in other factors affecting forward-looking information
except to the extent required by applicable securities laws. If the
Company does update one or more forward-looking statements, no
inference should be drawn that the Company will make additional
updates with respect thereto or with respect to other
forward-looking statements. 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. Actelis is not responsible for the contents of third-party
websites.
Investor Relations Contact:Kirin SmithPCG
Advisoryksmith@pcgadvisory.com
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(UNAUDITED)(U. S. dollars in thousands except for share and
per share amounts) |
|
March 31, 2024 |
|
December 31,2023 |
Assets |
|
|
|
CURRENT
ASSETS: |
|
|
|
Cash and cash equivalents |
1,211 |
|
620 |
Restricted cash equivalents |
1,392 |
|
1,565 |
Short term deposits |
197 |
|
197 |
Trade receivables, net of allowance for credit losses of $168
as of March 31, 2024, and December 31, 2023. |
533 |
|
664 |
Inventories |
2,608 |
|
2,526 |
Prepaid expenses and other current assets, net of allowance for
doubtful debts of $181 and $144 as of March 31, 2024, and December
31, 2023, respectively |
249 |
|
340 |
TOTAL CURRENT
ASSETS |
6,190 |
|
5,912 |
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
Property and equipment, net |
58 |
|
61 |
Prepaid expenses |
592 |
|
592 |
Restricted cash and cash equivalents |
2,542 |
|
3,330 |
Restricted bank deposits |
90 |
|
94 |
Severance pay fund |
238 |
|
238 |
Operating lease right of use assets |
728 |
|
918 |
Long term deposits |
78 |
|
78 |
TOTAL NON-CURRENT
ASSETS |
4,326 |
|
5,311 |
|
|
|
|
TOTAL
ASSETS |
10,516 |
|
11,223 |
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (continued)UNAUDITED(U. S. dollars in thousands
except for share and per share amounts) |
|
March 31, 2024 |
|
|
December 31,2023 |
|
Liabilities, Mezzanine Equity and shareholders’ equity
(capital deficiency) |
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
Short term loan |
574 |
|
|
- |
|
Current maturities of long-term loans |
1,088 |
|
|
1,335 |
|
Trade payables |
2,258 |
|
|
1,769 |
|
Deferred revenues |
305 |
|
|
389 |
|
Employee and employee-related obligations |
855 |
|
|
737 |
|
Advances from reseller |
1,143 |
|
|
- |
|
Accrued royalties |
1,087 |
|
|
1,062 |
|
Operating lease liabilities |
465 |
|
|
498 |
|
Other accrued liabilities |
1,115 |
|
|
1,122 |
|
TOTAL CURRENT LIABILITIES |
8,890 |
|
|
6,912 |
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
Long-term loan, net of current maturities |
2,521 |
|
|
3,154 |
|
Deferred revenues |
68 |
|
|
71 |
|
Operating lease liabilities |
254 |
|
|
405 |
|
Accrued severance |
269 |
|
|
270 |
|
Other long-term liabilities |
23 |
|
|
23 |
|
TOTAL NON-CURRENT
LIABILITIES |
3,135 |
|
|
3,923 |
|
|
|
|
|
|
|
TOTAL
LIABILITIES |
12,025 |
|
|
10,835 |
|
COMMITMENTS AND CONTINGENCIES (Note 6) |
|
|
|
|
|
MEZZANINE EQUITY |
- |
|
|
|
|
Redeemable Convertible Preferred Stock $0.0001 par value,
10,000,000 authorized; None issued and outstanding as of March 31,
2024 and December 31, 2023. |
- |
|
|
- |
|
WARRANTS TO PLACEMENT AGENT (Note 7d) |
159 |
|
|
159 |
|
SHAREHOLDERS’ EQUITY
(CAPITAL DEFICIENCY): |
|
|
|
|
|
Common stock, $0.0001 par value: 30,000,000 shares authorized;
3,010,244 and 3,007,745 shares issued and outstanding as of March
31, 2024, and December 31, 2023, respectively. |
1 |
|
|
1 |
|
Non-voting common stock, $0.0001 par value: 2,803,774 shares
authorized as of March 31, 2024, and December 31, 2023, None issued
and outstanding as of March 31, 2024, and December 31, 2023. |
- |
|
|
- |
|
Additional paid-in capital |
40,005 |
|
|
39,916 |
|
Accumulated deficit |
(41,674 |
) |
|
(39,688 |
) |
TOTAL SHAREHOLDERS’
EQUITY (CAPITAL DEFICIENCY) |
(1,668 |
) |
|
229 |
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY (CAPITAL
DEFICIENCY) |
10,516 |
|
|
11,223 |
|
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS(UNAUDITED)(U. S. dollars in
thousands except for share and per share amounts) |
|
Three months ended March 31, |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
REVENUES |
|
726 |
|
|
|
1,848 |
|
COST OF
REVENUES |
|
506 |
|
|
|
1,160 |
|
GROSS
PROFIT |
|
220 |
|
|
|
688 |
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
Research and development
expenses |
|
647 |
|
|
|
757 |
|
Sales and marketing expenses,
net |
|
627 |
|
|
|
929 |
|
General and administrative
expenses |
|
817 |
|
|
|
865 |
|
TOTAL OPERATING
EXPENSES |
|
2,091 |
|
|
|
2,551 |
|
|
|
|
|
|
|
|
|
OPERATING
LOSS |
|
(1,871 |
) |
|
|
(1,863 |
) |
Interest expenses |
|
(207 |
) |
|
|
(180 |
) |
Other Financial income,
net |
|
92 |
|
|
|
148 |
|
NET COMPREHENSIVE LOSS
FOR THE PERIOD |
|
(1,986 |
) |
|
|
(1,895 |
) |
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders – basic and diluted |
$ |
(0.50 |
) |
|
$ |
(1.09 |
) |
Weighted average number of
common stocks used in computing net loss per share – basic and
diluted |
|
3,978,828 |
|
|
|
1,734,160 |
|
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(UNAUDITED) |
|
Three months ended March 31, |
|
|
2024 |
|
|
2023 |
|
|
U.S. dollars in thousands |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
Net loss for the period |
(1,986 |
) |
|
(1,895 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
Depreciation |
4 |
|
|
7 |
|
Inventory write-downs |
- |
|
|
7 |
|
Exchange rate differences |
(70 |
) |
|
(130 |
) |
Share-based compensation |
89 |
|
|
95 |
|
Interest expenses |
(61 |
) |
|
- |
|
Financial income from long term bank deposit |
(1 |
) |
|
(51 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
Trade receivables |
131 |
|
|
561 |
|
Net change in operating lease assets and liabilities |
6 |
|
|
16 |
|
Inventories |
(83 |
) |
|
(102 |
) |
Prepaid expenses and other current assets |
91 |
|
|
265 |
|
Trade payables |
490 |
|
|
(381 |
) |
Deferred revenues |
(87 |
) |
|
(35 |
) |
Advances from reseller |
1,143 |
|
|
- |
|
Other current liabilities |
131 |
|
|
(46 |
) |
Other long-term liabilities |
- |
|
|
(16 |
) |
Net cash used in operating
activities |
(203 |
) |
|
(1,705 |
) |
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
Short term deposits |
- |
|
|
812 |
|
Short term Restricted bank
deposits |
- |
|
|
(329 |
) |
Long term Restricted bank
deposits |
- |
|
|
(811 |
) |
Long term deposits |
- |
|
|
(3 |
) |
Purchase of property and
equipment |
(1 |
) |
|
(3 |
) |
Net cash used in investing
activities |
(1 |
) |
|
(334 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
Repurchase of common
stock |
- |
|
|
(50 |
) |
Proceeds from credit lines
with bank |
574 |
|
|
- |
|
Early repayment of long-term
loan |
(545 |
) |
|
|
|
Repayment of long-term
loan |
(193 |
) |
|
(192 |
) |
Net cash used in financing
activities |
(164 |
) |
|
(242 |
) |
EFFECT OF EXCHANGE
RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH |
(2 |
) |
|
(5 |
) |
DECREASE IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH |
(370 |
) |
|
(2,281 |
) |
BALANCE OF CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE
PERIOD |
5,515 |
|
|
4,279 |
|
BALANCE OF CASH, CASH
EQUIVALENTS AND RESTRICTED CASH AT END OF THE PERIOD |
5,145 |
|
|
1,998 |
|
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
F-6
ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (continued)(UNAUDITED) |
|
March 31, 2024 |
|
December 31,2023 |
|
U.S. dollars in thousands |
|
|
|
|
RECONCILIATION OF
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: |
|
|
|
Cash and cash equivalents |
1,211 |
|
808 |
Restricted cash equivalents,
current |
1,392 |
|
- |
Restricted cash and cash
equivalents, non-current |
2,542 |
|
1,190 |
Total cash, cash equivalents
and restricted cash |
5,145 |
|
1,998 |
|
Three months ended March 31, |
|
2024 |
|
2023 |
|
U.S. dollars in thousands |
SUPPLEMENTARY
DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
Cash paid for interest |
273 |
|
116 |
The accompanying notes are an integral part of these
condensed consolidated financial statements
(Unaudited).
Non-GAAP Financial Measures
(U.S. dollars in thousands) |
Three monthsEndedMarch 31,2024 |
|
|
Three monthsEndedMarch 31,2023 |
|
Revenues |
$ |
726 |
|
|
$ |
1,848 |
|
GAAP net loss |
|
(1,986 |
) |
|
|
(1,895 |
) |
Interest Expense |
$ |
207 |
|
|
$ |
180 |
|
Other financial (income) expenses, net |
|
(92 |
) |
|
|
(148 |
) |
Tax Expense |
|
17 |
|
|
|
21 |
|
Fixed asset depreciation expense |
|
4 |
|
|
|
7 |
|
Stock based compensation |
|
89 |
|
|
|
95 |
|
Research and development, capitalization |
|
- |
|
|
|
146 |
|
Other one time costs and expenses |
|
(26 |
) |
|
|
- |
|
Non-GAAP Adjusted EBITDA |
|
(1,787 |
) |
|
$ |
(1,594 |
) |
GAAP net loss margin |
|
(246.27 |
)% |
|
|
(102.54 |
)% |
Adjusted EBITDA margin |
|
(90.00 |
)% |
|
|
(84.12 |
)% |
Actelis Networks (NASDAQ:ASNS)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Actelis Networks (NASDAQ:ASNS)
과거 데이터 주식 차트
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