Nano Dimension Ltd. (Nasdaq, TASE: NNDM), a leading
Additively Manufactured Electronics (AME)/PE (Printed Electronics)
provider, today announced financial results for the first
quarter ended March 31, 2020.
Nano Dimension reported revenues of $702,000 for
the first quarter of 2020, compared to $1,977,000 in the fourth
quarter of 2019, and $1,689,000 in the first quarter of 2019. Two
sale-transactions of DragonFly LDM machines that were expected to
close in China in the first quarter of 2020 were disrupted as the
country was then at the climax of its Covid-19 crisis. These
transactions may reemerge now that China is recovering. In Europe,
as the situation in the world deteriorated, the buyer of one
machine tried to considerably reduce its committed payment, so Nano
Dimension canceled the transaction.
Nano Dimension ended the quarter with $4,509,000
in cash, while total loss for the first quarter was $2,074,000. The
present cash situation, supported by $13,300,000 additional cash
from previous and new shareholders’ investments in April 2020
public offering, is expected to be sufficient in supporting the
company while crossing the bridge from Covid-19-led-economics
through the recovery stages, leading to an accelerated growth
within a more normal business environment.
“Considering current world events, extracting
conclusions from the results of the first quarter may be a somewhat
futile exercise. However, we do note that our revenues from
consumables were 24% of the total quarterly revenues (affected
upwards as a result of the abovementioned reduced machine sales).
We had two more customers showing commitment to our technology by
paying for upgrades to DragonFly LDM. Two additional customers
bought our annual renewable service contracts,” said Yoav Stern,
President and Chief Executive Officer of Nano Dimension. “A large
number of our customers are still in slow-down or shut-down modes
due to Covid-19. As a result, our working assumption is that at
least the second through the third quarters of 2020 will be
affected by reduction of revenue, from our originally budgeted
figures,” concluded Mr. Stern.
First Quarter 2020 Financial Results
- Total revenues for the first
quarter of 2020 were $702,000, compared to $1,977,000 in the fourth
quarter of 2019, and $1,689,000 in the first quarter of 2019. The
decrease compared to both the fourth quarter of 2019 and the first
quarter of 2019 is attributed to less system sales of the DragonFly
Additive Manufacturing system, due to the reasons mentioned
above.
- Research and development expenses
for the first quarter of 2020 were $1,702,000, compared to
$1,525,000 in the fourth quarter of 2019, and $2,152,000 in the
first quarter of 2019. The increase compared to the fourth quarter
of 2019 was mainly attributed to an increase in payroll and related
expenses. The decrease compared to the first quarter of 2019 was
mainly attributed to a decrease in payroll and related expenses and
materials expenses.
- Sales and marketing expenses for
the first quarter of 2020 were $819,000, compared to $1,381,000 in
the fourth quarter of 2019, and $1,364,000 in the first quarter of
2019. The decrease compared to both the fourth quarter of 2019 and
the first quarter of 2019 was mainly attributed to a decrease in
payroll and related expenses, as well as marketing and advertising
expenses. The decrease compared to the fourth quarter of 2019 is
also attributed to a decrease in sales
commissions.
- General and administrative expenses
for the first quarter of 2020 were $1,035,000, compared to $881,000
in the fourth quarter of 2019, and $567,000 in the first quarter of
2019. The increase compared to the fourth quarter of 2019 was
mainly attributed to an increase in share-based payments expenses.
The increase compared to the first quarter of 2019 was mainly
attributed to an increase in share-based payments expenses and
professional services expenses.
- Finance income, net, for the first
quarter of 2020 was $1,388,000, compared to finance income, net, of
$1,751,000 in the fourth quarter of 2019, and finance income, net,
of $2,229,000 in the first quarter of 2019. The decrease compared
to the fourth quarter of 2019 is mainly as a result of a decrease
in income due to changes in the fair value of convertible notes and
warrants, less an increase in income due to exchange rate
differences. The decrease in finance income compared to the first
quarter of 2019 was a result of a decrease in finance income due to
changes in the fair value of convertible notes and warrants, less
issuance expenses in the first quarter of 2019 that were recognized
as finance expenses.
- Net loss for the first quarter of
2020 was $2,074,000, or $0.01 per share, compared to
$1,381,000, or $0.01 per share, in the fourth quarter of 2019, and
$1,476,000, or $0.01 per share, in the first quarter of 2019.
Balance Sheet Highlights
- Cash and cash equivalents totaled $4,509,000 as of March 31,
2020, compared to $3,894,000 on December 31, 2019. The increase
compared to December 31, 2019 mainly reflects proceeds received
from the sale of American Depositary Shares (ADSs) representing the
Company’s ordinary shares in the first quarter of 2020, less cash
used in operations during the three months ended March 31,
2020.
- Shareholders’ equity totaled $15,320,000 as of March 31, 2020,
compared to $11,602,000 as of December 31, 2019. The increase is
mainly as a result of the public offering of our ADSs in February
2020, as well as conversion of convertible notes, less the loss for
the three months ended March 31, 2020.
Conference call information
The Company will host a conference call to
discuss these financial results today, May 14, 2020, at 9:00
a.m. EST (4:00 p.m. IST). Investors interested in
participating are invited to register for the conference call here:
http://dpregister.com/10143915. Dial-in numbers, including a local
Israeli number and instructions, will be provided upon
registration. U.S. Dial-in Number: 1-844-695-5517, International
Dial-in Number: 1-412-902-6751, Israel Toll Free Dial-in Number:
1-80-9212373. Please request the “Nano Dimension NNDM call” when
prompted by the conference call operator. The conference call will
also be webcast live from the Investor Relations section of Nano
Dimension’s website at
http://investors.nano-di.com/events-and-presentations.
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.
Consolidated Statements of Financial Position as
at
| |
March 31, |
|
|
December 31, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| (In thousands of USD) |
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
10,222 |
|
|
4,509 |
|
|
3,894 |
|
|
Restricted deposits |
31 |
|
|
31 |
|
|
31 |
|
|
Trade receivables |
1,855 |
|
|
1,482 |
|
|
1,816 |
|
|
Other receivables |
542 |
|
|
609 |
|
|
570 |
|
|
Inventory |
3,283 |
|
|
3,679 |
|
|
3,543 |
|
| Total current
assets |
15,933 |
|
|
10,310 |
|
|
9,854 |
|
| |
|
|
|
|
|
|
|
|
|
Restricted deposits |
344 |
|
|
366 |
|
|
377 |
|
|
Property plant and equipment, net |
5,412 |
|
|
4,604 |
|
|
4,743 |
|
|
Right of use asset |
1,855 |
|
|
2,459 |
|
|
2,673 |
|
|
Intangible assets |
5,790 |
|
|
5,019 |
|
|
5,211 |
|
| Total non-current
assets |
13,401 |
|
|
12,448 |
|
|
13,004 |
|
| Total
assets |
29,334 |
|
|
22,758 |
|
|
22,858 |
|
| |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Trade payables |
1,199 |
|
|
756 |
|
|
850 |
|
|
Other payables |
3,238 |
|
|
3,447 |
|
|
3,575 |
|
| Total current
liabilities |
4,437 |
|
|
4,203 |
|
|
4,425 |
|
| |
|
|
|
|
|
|
|
|
|
Liability in respect of government grants |
873 |
|
|
937 |
|
|
1,044 |
|
|
Lease liability |
1,381 |
|
|
1,834 |
|
|
2,089 |
|
|
Liability in respect of convertible notes and warrants |
6,498 |
|
|
464 |
|
|
3,698 |
|
| Total non-current
liabilities |
8,752 |
|
|
3,235 |
|
|
6,831 |
|
| Total
liabilities |
13,189 |
|
|
7,438 |
|
|
11,256 |
|
| |
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
|
|
|
Share capital |
5,559 |
|
|
12,219 |
|
|
6,441 |
|
|
Share premium and capital reserves |
63,750 |
|
|
65,216 |
|
|
65,202 |
|
|
Treasury shares |
(1,509 |
) |
|
(1,509 |
) |
|
(1,509 |
) |
|
Presentation currency translation reserve |
1,431 |
|
|
1,431 |
|
|
1,431 |
|
|
Accumulated loss |
(53,086 |
) |
|
(62,037 |
) |
|
(59,963 |
) |
| Total
equity |
16,145 |
|
|
15,320 |
|
|
11,602 |
|
| Total liabilities and
equity |
29,334 |
|
|
22,758 |
|
|
22,858 |
|
| |
|
|
|
|
|
|
|
|
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 31, |
|
|
For the Year ended December 31, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
1,689 |
|
|
702 |
|
|
7,070 |
|
| |
|
|
|
|
|
|
|
|
| Cost of revenues |
1,118 |
|
|
415 |
|
|
4,312 |
|
| |
|
|
|
|
|
|
|
|
| Cost of revenues -
amortization of intangible |
193 |
|
|
193 |
|
|
772 |
|
| |
|
|
|
|
|
|
|
|
| Total cost of revenues |
1,311 |
|
|
608 |
|
|
5,084 |
|
| |
|
|
|
|
|
|
|
|
| Gross profit |
378 |
|
|
94 |
|
|
1,986 |
|
| |
|
|
|
|
|
|
|
|
| Research and development
expenses, net |
2,152 |
|
|
1,702 |
|
|
8,082 |
|
| |
|
|
|
|
|
|
|
|
| Sales and marketing
expenses |
1,364 |
|
|
819 |
|
|
5,469 |
|
| |
|
|
|
|
|
|
|
|
| General and administrative
expenses |
567 |
|
|
1,035 |
|
|
3,270 |
|
| |
|
|
|
|
|
|
|
|
|
Operating loss |
(3,705 |
) |
|
(3,462 |
) |
|
(14,835 |
) |
| |
|
|
|
|
|
|
|
|
|
Finance income |
3,649 |
|
|
1,426 |
|
|
8,765 |
|
| |
|
|
|
|
|
|
|
|
|
Finance expense |
1,420 |
|
|
38 |
|
|
2,283 |
|
| |
|
|
|
|
|
|
|
|
| Total comprehensive loss |
(1,476 |
) |
|
(2,074 |
) |
|
(8,353 |
) |
| |
|
|
|
|
|
|
|
|
| Basic loss per share |
(0.01 |
) |
|
(0.01 |
) |
|
(0.05 |
) |
| Basic loss per ADS (after the
change in the ADS ratio) |
(0.05 |
) |
|
(0.32 |
) |
|
(2.38 |
) |
| |
|
|
|
|
|
|
|
|
Consolidated Statements of Changes in
Equity (Unaudited)(In thousands of USD)
|
|
Sharecapital |
|
|
Sharepremium |
|
|
Treasuryshares |
|
|
Presentation currency translation reserve |
|
|
Accumulatedloss |
|
|
Totalequity |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For the three months
ended March 31, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2020 |
6,441 |
|
|
65,202 |
|
|
(1,509 |
) |
|
1,431 |
|
|
(59,963 |
) |
|
11,602 |
|
| Issuance of ordinary shares,
net |
3,765 |
|
|
(418 |
) |
|
-- |
|
|
-- |
|
|
-- |
|
|
3,347 |
|
| Conversion of convertible
notes |
2,013 |
|
|
(78 |
) |
|
-- |
|
|
-- |
|
|
-- |
|
|
1,935 |
|
| Share-based payments |
-- |
|
|
510 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
510 |
|
| Net loss |
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
(2,074 |
) |
|
(2,074 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of March
31, 2020 |
12,219 |
|
|
65,216 |
|
|
(1,509 |
) |
|
1,431 |
|
|
(62,037 |
) |
|
15,320 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Nano Dimension
Nano Dimension (Nasdaq, TASE: NNDM) is a
provider of intelligent machines for the fabrication of
Additively Manufactured Electronics (AME). High fidelity active
electronic and electromechanical subassemblies are integral
enablers of autonomous intelligent drones, cars,
satellites, smartphones, and in vivo medical devices. They
necessitate iterative development, IP safety, fast time-to-market
and device performance gains, thereby mandating AME for in-house,
rapid prototyping and production. Nano Dimension machines
serve cross-industry needs by depositing proprietary consumable
conductive and dielectric materials simultaneously, while
concurrently integrating in-situ capacitors, antennas, coils,
transformers and electromechanical components, to function at
unprecedented performance. Nano Dimension bridges the gap between
PCB and semiconductor integrated circuits. A revolution at the
click of a button: From CAD to a functional high-performance AME
device in hours, solely at the cost of the consumable
materials.
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 that
transactions may reemerge now that China is recovering, that the
present cash situation is expected to be sufficient in supporting
the company while crossing the bridge from Covid-19-led-economics
through the recovery stages, leading to an accelerated growth
within a more normal business environment, and the Company’s
assumption that at least the second through the third quarters of
2020 will be affected by reduction of revenue, from originally
budgeted figures. 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 10, 2020,
and in any subsequent filings with the SEC. The following factors,
among others, could cause actual results to differ materially from
those described in the forward-looking statements: Nano Dimension’s
ability to increase sales and revenue, its burn rate, and its
ability to continue as a going concern. Based on the projected cash
flows and our cash balances as of March 21, 2020, Nano Dimension’s
management is of the opinion that without further fund raising it
will not have enough resources to enable it to continue advancing
its activities for a period of at least 12 months. As a result,
there is substantial doubt about Nano Dimension’s ability to
continue as a going concern. 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
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