MONTVALE, N.J., May 20, 2019 /PRNewswire/ -- MICT, Inc.
(Nasdaq: MICT), today announced financial results for the three
months ended March 31, 2019.
MICT's financial results for the first quarter of 2019 reflect
Micronet, Ltd. revenues for the months of January 2019 and February
2019 only. On February 24,
2019, Micronet closed a public equity offering on the Tel
Aviv Stock Exchange which resulted in a dilution of MICT's
ownership interest in Micronet to 33.88%. Thus, based on U.S. GAAP,
MICT no longer includes Micronet's financial results in its
consolidated financial statements effective as of March 1, 2019. However, MICT is of
the opinion that it maintains effective control of Micronet by
virtue of its high level of influence over Micronet.
"We continue to be engaged in the transactions contemplated by
the acquisition agreement entered into among MICT, BNN and
ParagonEx Ltd.," stated David Lucatz, Chief Executive Officer of
MICT.
Q1 2019 Review
- Revenue was $477,000 in the first
quarter of 2019, compared to $5.98
million in the first quarter of 2018.
- Gross loss was $369,000,
representing 77% of revenues in the first quarter of 2019, compared
to gross profit of $1.72 million,
representing 29% of revenues, in the first quarter of 2018.
- Research and development (R&D) expense in the first quarter
of 2019 was $261,000, or 55% of
sales, as compared to $527,000, or 9%
of sales in the first quarter of 2018.
- Selling, general and administrative (SG&A) expense was
$1.19 million in the first quarter of
2019, as compared to $1.67 million in
the first quarter of 2018.
- Net loss attributable to MICT, Inc. was $910,000 in the first quarter of 2019 as compared
to a net loss of $850,000 in the
first quarter of 2018. On a per share basis, MICT reported a loss
of $0.09 per basic and diluted share
from continued operations in the first quarter of 2019, as compared
to a loss of $0.11 per basic and
diluted share from continued operations in the first quarter of
2018.
Conference Call
MICT will host a conference call tomorrow, May 21, 2019, at 9:00 a.m.
EDT to discuss the Company's financial results for the first
quarter ended March 31, 2019. U.S.
callers may dial: 1-866-860-9642. Callers from outside of the U.S
may access the call by dialing 972-3-918-0692. Please dial a few
minutes before 9:00 am EDT.
A slide presentation accompanying management's remarks can be
accessed at www.mict-inc.com.
Participants may also access a live webcast of the conference
call at:
www.veidan-stream.com/micronetq1-2019.html
A telephone replay of the call will be available for two weeks
at: 1-888-269-0005, outside of the U.S: 972-3-925-5940.
No Offer or Solicitation
This communication is not intended to and does not constitute an
offer to sell or the solicitation of an offer to subscribe for or
buy or an invitation to purchase or subscribe for any securities or
the solicitation of any vote in any jurisdiction pursuant to the
proposed transaction or otherwise, nor shall there be any sale,
issuance or transfer of securities in any jurisdiction in
contravention of applicable law. No offer of securities shall be
made except by means of a prospectus meeting the requirements of
the Securities Act of 1933, as amended. Subject to certain
exceptions to be approved by the relevant regulators or certain
facts to be ascertained, the public offer will not be made directly
or indirectly, in or into any jurisdiction where to do so would
constitute a violation of the laws of such jurisdiction, or by use
of the mails or by any means or instrumentality (including without
limitation, facsimile transmission, telephone and the internet) of
interstate or foreign commerce, or any facility of a national
securities exchange, of any such jurisdiction.
Important Additional Information Will be Filed with the
SEC
On February 5, 2019, Global
Fintech Holdings Ltd. ("GFH") filed a registration statement on
Form F-4 containing a proxy statement for MICT's stockholders, a
prospectus, and other important information in connection with the
proposed business combination. MICT URGES INVESTORS AND
STOCKHOLDERS TO READ THESE MATERIALS CAREFULLY AND IN THEIR
ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
MICT, GFH, BNN Technology PLC, ParagonEX, Ltd., and other
parties, the PROPOSED BUSINESS COMBINATION, AND OTHER RELATED
MATTERS. investors and stockholders may obtain free
copies of these materials with the SEC through the website
maintained by the SEC at www.sec.gov. In addition, investors
and stockholders will be able to obtain free copies of the proxy
statement by directing a request to: MICT, Inc., 28 West Grand
Avenue, Suite 3, Montvale NJ
07645. Investors and stockholders are urged to read the
proxy statement, prospectus and other relevant materials before
making any voting or investment decision with respect to the
proposed business combination.
Participants in Solicitation
MICT and its directors and executive officers, may be deemed to
be participants in the solicitation of proxies for the special
meeting of MICT's stockholders to be held to approve the proposed
business combination. Information regarding the persons who may,
under the rules of the SEC, be deemed participants in the
solicitation of MICT's stockholders in connection with the proposed
business combination are set forth in the proxy
statement/prospectus. You can find information about MICT's
executive officers and directors in its Annual Report on Form 10-K
for the year ended December 31, 2018.
After such filing, you can obtain free copies of these documents
from MICT using the contact information above.
Important Information about the Tender Offer
THE TENDER OFFER REFERRED TO IN THIS PRESS RELEASE WAS COMMENCED
BY BNN TECHNOLOGY PLC ON FEBRUARY 5,
2019. THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY
AND DOES NOT CONSTITUTE AN OFFER TO SELL OR PURCHASE, OR THE
SOLICITATION OF TENDERS WITH RESPECT TO THE SHARES OF MICT.
NO OFFER, SOLICITATION, PURCHASE OR SALE WILL BE MADE IN ANY
JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE OR SALE
WOULD BE UNLAWFUL. THE OFFERING DOCUMENTS WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE TENDER OFFER AND SHAREHOLDERS ARE
STRONGLY ENCOURAGED TO EVALUATE CAREFULLY ALL INFORMATION IN THE
OFFERING DOCUMENTS AND TO CONSULT THEIR INVESTMENT AND TAX ADVISORS
BEFORE MAKING ANY DECISION REGARDING THE TENDER OF THEIR
SHARES. THE TENDER OFFER STATEMENT, INCLUDING THE OFFER TO
PURCHASE, THE LETTER OF TRANSMITTAL, AND OTHER RELATED MATERIALS,
AND THE SOLICITATION/RECOMMENDATION STATEMENT OF MICT ON SCHEDULE
14D-9, ARE ALSO BE AVAILABLE TO MICT'S STOCKHOLDERS AT NO CHARGE ON
THE SEC'S WEBSITE AT WWW.SEC.GOV.
About MICT, Inc.
MICT, Inc. (Nasdaq: MICT), via its equity interest in Micronet
Ltd., provides rugged mobile devices for the growing commercial MRM
market. Micronet develops, manufactures and provides mobile
computing platforms for the mobile logistics management market in
the U.S., Europe and Israel. American manufactured
systems are designed for outdoor and challenging work environments
in trucking, distribution, logistics, public safety and
construction.
Forward-looking Statement
This press release contains express or implied forward-looking
statements within the Private Securities Litigation Reform Act of
1995 and other U.S. Federal securities laws. These
forward-looking statements include, but are not limited to, those
statements regarding the fact that the Company continues to be
engaged in the transactions contemplated by the acquisition
agreement entered into among MICT, BNN and ParagonEx Ltd. Such
forward-looking statements and their implications involve known and
unknown risks, uncertainties and other factors that may cause
actual results or performance to differ materially from those
projected. The forward-looking statements contained in this press
release are subject to other risks and uncertainties, including
those discussed in the "Risk Factors" section and elsewhere in the
Company's annual report on Form 10-K for the year
ended December 31, 2018 and in subsequent filings with
the Securities and Exchange Commission. Except as otherwise
required by law, the Company is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.
MICT, INC. AND
SUBSIDIARY
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(USD In Thousands,
Except Share and Par Value Data)
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
347
|
|
$
|
2,174
|
Trade accounts
receivable, net
|
|
|
-
|
|
|
1,010
|
Inventories
|
|
|
-
|
|
|
4,345
|
Prepaid expenses and
other current assets
|
|
|
112
|
|
|
-
|
Other accounts
receivable
|
|
|
-
|
|
|
339
|
Total current
assets
|
|
|
459
|
|
|
7,868
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
24
|
|
|
661
|
Intangible assets,
net and others
|
|
|
-
|
|
|
434
|
Long-term deposit and
prepaid expenses
|
|
|
-
|
|
|
703
|
Restricted cash
escrow
|
|
|
477
|
|
|
477
|
Micronet Ltd.
investment
|
|
|
1,711
|
|
|
-
|
Total long-term
assets
|
|
|
2,212
|
|
|
2,275
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,671
|
|
$
|
10,143
|
MICT, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(USD In Thousands,
Except Share and Par Value Data)
|
|
|
|
March 31,
2019
|
|
December 31,
2018
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
Short term bank
credit and current portion of long term bank loans
|
|
$
|
244
|
|
$
|
2,806
|
Short term credit
from others and current portion of long term loans from
others
|
|
|
1,734
|
|
|
3,004
|
Trade accounts
payable
|
|
|
1
|
|
|
1,531
|
Other accounts
payable
|
|
|
305
|
|
|
1,211
|
Total current
liabilities
|
|
|
2,284
|
|
|
8,552
|
|
|
|
|
|
|
|
Long term
escrow
|
|
|
477
|
|
|
477
|
Accrued severance
pay, net
|
|
|
48
|
|
|
110
|
Total long term
liabilities
|
|
|
525
|
|
|
587
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
Preferred stock;
$0.001 par value, 5,000,000 shares authorized, none
issued
and outstanding as of March 31,
2019
|
|
|
|
|
|
|
Common stock; $0.001
par value, 25,000,000 shares authorized,
10,734,232 and 9,342,088
shares issued and outstanding as of March 31,
2019 and December 31, 2018,
respectively
|
|
|
11
|
|
|
9
|
Additional paid in
capital
|
|
|
13,518
|
|
|
11,905
|
Accumulated other
comprehensive (loss)
|
|
|
-
|
|
|
(117)
|
Accumulated
loss
|
|
|
(13,667)
|
|
|
(12,757)
|
MICT, Inc.
stockholders' equity
|
|
|
(138)
|
|
|
(960)
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
-
|
|
|
1,964
|
|
|
|
|
|
|
|
Total
equity
|
|
|
(138)
|
|
|
1,004
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
|
2,671
|
|
$
|
10,143
|
MICT, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(USD In Thousands,
Except Share and Earnings Per Share Data)
|
(Unaudited)
|
|
|
|
Three months
ended
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Revenues
|
|
$
|
477
|
|
$
|
5,980
|
Cost of
revenues
|
|
|
846
|
|
|
4,258
|
Gross
profit
|
|
|
(369)
|
|
|
1,722
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
|
|
261
|
|
|
527
|
Selling and
marketing
|
|
|
198
|
|
|
454
|
General and
administrative
|
|
|
990
|
|
|
1,212
|
Amortization of
intangible assets
|
|
|
20
|
|
|
222
|
Total operating
expenses
|
|
|
1,469
|
|
|
2,415
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(1,838)
|
|
|
(693)
|
Equity
loss
|
|
|
-
|
|
|
-
|
Net profit (loss)
from loss of control
|
|
|
299
|
|
|
|
Financial (expenses) income, net
|
|
|
76
|
|
|
(392
|
Loss before provision
for income taxes
|
|
|
(1,463)
|
|
|
(1,085)
|
Taxes on income
(benefit)
|
|
|
3
|
|
|
-
|
|
|
|
|
|
|
|
Net loss from
continued operation
|
|
|
(1,466)
|
|
|
(1,085)
|
Net profit (loss)
from discontinued operation
|
|
|
-
|
|
|
(111)
|
Total net
loss
|
|
|
(1,466)
|
|
|
(974)
|
Net loss attributable
to non-controlling interests
|
|
|
(556)
|
|
|
(124)
|
Net loss attributable
to MICT, Inc.
|
|
|
(910)
|
|
|
(850)
|
|
|
|
|
|
|
|
Basic and diluted
loss per share from continued operation
|
|
|
(0.09)
|
|
|
(0.11)
|
Basic and diluted
loss per share from discontinued operation
|
|
$
|
-
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
9,707,831
|
|
|
8,867,830
|
View original
content:http://www.prnewswire.com/news-releases/mict-reports-financial-results-for-the-first-quarter-ended-march-31-2019-300853532.html
SOURCE MICT, Inc.