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FREMONT, Calif., Aug. 14, 2024 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2024.
Second Quarter and First Half 2024 Financial Highlights:
“I am extremely proud of our progress in the second quarter of 2024,” said Tuvia Barlev, Chairman and CEO. “Our team's relentless efforts have translated into significant customer successes and the successful execution for key customers. We are delivering on the commitments we made to drive growth and innovation, and the results speak to the impact of our strategic initiatives.”
Recent Company Highlights:
A first order for GigaLine 800 worth $160,000 from a contractor to a major military carrier was received, a major milestone in executing on the new products’ potential.
“Our second quarter performance reflects the tangible progress we’re making in executing our growth strategy, especially in key sectors like intelligent transportation and critical infrastructure,” said Tuvia Barlev, Chairman and CEO of Actelis. “The significant order from Washington D.C.’s Department of Transportation and our successful deployments in cities like Bakersfield demonstrate not only the strength of our technology but also the trust that major urban centers place in Actelis to modernize and secure their infrastructure.”
“As we move forward, our focus is on scaling these successes, expanding our SaaS offerings through strategic partnerships, and continuing to reduce operational costs while maintaining high margins. As we navigate an increasingly complex global environment, our focus remains on executing our business plan with precision and adapting to any challenges that arise,” added Barlev.
Fiscal Second Quarter and First Half 2024 Financial Results:
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 Statements
This 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 athttp://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:
ASNS@actelis.com
-Financial Tables to Follow-
| ACTELIS NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (U. S. dollars in thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 2,412 | 620 | ||||||
| Restricted cash and cash equivalents | 790 | 1,565 | ||||||
| Short term deposits | - | 197 | ||||||
| Trade receivables, net of allowance for credit losses of $168 as of June 30, 2024, and December 31, 2023. | 690 | 664 | ||||||
| Inventories | 2,158 | 2,526 | ||||||
| Prepaid expenses and other current assets, net of allowance for doubtful debts of $181 and $144 as of June 30, 2024, and December 31, 2023, respectively | 491 | 340 | ||||||
| TOTAL CURRENT ASSETS | 6,541 | 5,912 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Property and equipment, net | 55 | 61 | ||||||
| Prepaid expenses | 592 | 592 | ||||||
| Restricted cash and cash equivalents | 160 | 3,330 | ||||||
| Restricted bank deposits | 89 | 94 | ||||||
| Severance pay fund | 235 | 238 | ||||||
| Operating lease right of use assets | 608 | 918 | ||||||
| Long term deposits | 77 | 78 | ||||||
| TOTAL NON-CURRENT ASSETS | 1,816 | 5,311 | ||||||
| TOTAL ASSETS | 8,357 | 11,223 | ||||||
| ACTELIS NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (U. S. dollars in thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Liabilities, Mezzanine Equity and shareholders’ equity | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Credit line | 1,045 | - | ||||||
| Current maturities of long-term loans | 460 | 1,335 | ||||||
| Trade payables | 1,421 | 1,769 | ||||||
| Deferred revenues | 206 | 389 | ||||||
| Employee and employee-related obligations | 782 | 737 | ||||||
| Accrued royalties | 1,119 | 1,062 | ||||||
| Operating lease liabilities | 443 | 498 | ||||||
| Other accrued liabilities | 995 | 1,122 | ||||||
| TOTAL CURRENT LIABILITIES | 6,471 | 6,912 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Long-term loan, net of current maturities | 263 | 3,154 | ||||||
| Deferred revenues | 45 | 71 | ||||||
| Operating lease liabilities | 151 | 405 | ||||||
| Accrued severance | 263 | 270 | ||||||
| Other long-term liabilities | 27 | 23 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 749 | 3,923 | ||||||
| TOTAL LIABILITIES | 7,220 | 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 June 30, 2024 and December 31, 2023. | - | - | ||||||
| WARRANTS TO PLACEMENT AGENT (Note 7) | 201 | 159 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Common stock, $0.0001 par value: 30,000,000 shares authorized; 5,017,322 and 3,007,745 shares issued and outstanding as of June 30, 2024, and December 31, 2023, respectively. | 1 | 1 | ||||||
| Non-voting common stock, $0.0001 par value: 2,803,774 shares authorized as of June 30, 2024, and December 31, 2023, None issued and outstanding as of June 30, 2024, and December 31, 2023. | - | - | ||||||
| Additional paid-in capital | 42,687 | 39,916 | ||||||
| Accumulated deficit | (41,752 | ) | (39,688 | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 936 | 229 | ||||||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | 8,357 | 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) | ||||||||||||||||
| Six months ended June 30 | Three months ended June 30 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| REVENUES | 4,157 | 3,744 | 3,431 | 1,896 | ||||||||||||
| COST OF REVENUES | 1,994 | 2,424 | 1,488 | 1,264 | ||||||||||||
| GROSS PROFIT | 2,163 | 1,320 | 1,943 | 632 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Research and development expenses | 1,250 | 1,426 | 603 | 669 | ||||||||||||
| Sales and marketing expenses, net | 1,274 | 1,641 | 647 | 712 | ||||||||||||
| General and administrative expenses | 1,607 | 1,834 | 790 | 969 | ||||||||||||
| Other income | (163 | ) | - | (163 | ) | - | ||||||||||
| TOTAL OPERATING EXPENSES | 3,968 | 4,901 | 1,877 | 2,350 | ||||||||||||
| OPERATING PROFIT (LOSS) | (1,805 | ) | (3,581 | ) | 66 | (1,718 | ) | |||||||||
| Interest expenses | (344 | ) | (351 | ) | (137 | ) | (171 | ) | ||||||||
| Other Financial income, net | 85 | 444 | 7 | 296 | ||||||||||||
| NET COMPREHENSIVE LOSS FOR THE PERIOD | (2,064 | ) | (3,488 | ) | (78 | ) | (1,593 | ) | ||||||||
| Net loss per share attributable to common shareholders – basic and diluted | $ | (0.51 | ) | $ | (1.72 | ) | $ | (0.01 | ) | $ | (0.68 | ) | ||||
| Weighted average number of common stocks used in computing net profit (loss) per share – basic and diluted | 4,000,994 | 2,033,747 | 4,257,674 | 2,333,381 | ||||||||||||
| ACTELIS NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| U.S. dollars in thousands | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss for the period | (2,064 | ) | (3,488 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 8 | 13 | ||||||
| Changes in fair value related to warrants to lenders and investors | - | (396 | ) | |||||
| Warrant issuance costs | - | 223 | ||||||
| Inventory write-downs | 25 | 97 | ||||||
| Exchange rate differences | (79 | ) | (226 | ) | ||||
| Share-based compensation | 179 | 192 | ||||||
| Interest expenses | (41 | ) | - | |||||
| Financial income from long term bank deposit | 4 | (64 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | (26 | ) | 1,275 | |||||
| Net change in operating lease assets and Liabilities | 1 | 24 | ||||||
| Inventories | 342 | (726 | ) | |||||
| Prepaid expenses and other current assets | (150 | ) | 208 | |||||
| Trade payables | (347 | ) | 137 | |||||
| Deferred revenues | (209 | ) | (155 | ) | ||||
| Other current liabilities | 14 | (36 | ) | |||||
| Other long-term liabilities | - | (17 | ) | |||||
| Net cash used in operating activities | (2,343 | ) | (2,939 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Short term deposits | 198 | 810 | ||||||
| Short term Restricted bank deposits | - | (125 | ) | |||||
| Long term deposits | - | (5 | ) | |||||
| Purchase of property and equipment | (1 | ) | (3 | ) | ||||
| Net cash Provided by investing activities | 197 | 677 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from exercise of options | 32 | 10 | ||||||
| Repurchase of common stock | - | (50 | ) | |||||
| Proceeds from common stocks, pre-funded warrants and warrants | * | 3,500 | ||||||
| Proceeds from Warrant inducement agreement | 2,999 | - | ||||||
| Underwriting discounts and commissions and other offering costs | (397 | ) | (291 | ) | ||||
| Proceeds from credit lines with bank, net | 1,045 | - | ||||||
| Early repayment of long-term loan | (3,483 | ) | - | |||||
| Repayment of long-term loan | (193 | ) | (389 | ) | ||||
| Net cash Provided by financing activities | 3 | 2,780 | ||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | (10 | ) | (10 | ) | ||||
| INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | (2,153 | ) | 508 | |||||
| BALANCE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 5,515 | 4,279 | ||||||
| BALANCE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 3,362 | 4,787 | ||||||
| (U.S. dollars in thousands) | Six months Ended June 30, 2024 | Six months Ended June 30, 2023 | Three months Ended June 30, 2024 | Three months Ended June 30, 2023 | ||||||||||||
| Revenues | $ | 4,157 | $ | 3,744 | $ | 3,431 | $ | 1,896 | ||||||||
| GAAP net loss | (2,064 | ) | (3,488 | ) | (78 | ) | (1,593 | ) | ||||||||
| Interest Expense | 344 | 351 | 137 | 171 | ||||||||||||
| Other Financial expenses (income), net | (85 | ) | (444 | ) | (7 | ) | (296 | ) | ||||||||
| Tax Expense | 32 | 40 | 15 | 19 | ||||||||||||
| Fixed asset depreciation expense | 8 | 13 | 3 | 6 | ||||||||||||
| Stock based compensation | 179 | 192 | 90 | 97 | ||||||||||||
| Research and development, capitalization | 0 | 258 | - | 112 | ||||||||||||
| Other one-time costs and expenses | (189 | ) | 223 | (163 | ) | 223 | ||||||||||
| Non-GAAP Adjusted EBITDA | (1,775 | ) | (2,855 | ) | 11 | (1,261 | ) | |||||||||
| GAAP net loss margin | (49.65 | )% | (93.16 | )% | (2.27 | )% | (84.02 | )% | ||||||||
| Adjusted EBITDA margin | (42.70 | )% | (76.25 | )% | 0.03 | % | (66.51 | )% | ||||||||