Nano Dimension Reports 2020 Second Quarter Financial Results
August 13 2020 - 7:00AM
Nano Dimension’s USA HQ --
Nano
Dimension Ltd. (Nasdaq: NNDM), a leading Additively Manufactured
Electronics (AME)/PE (Printed Electronics) provider, today
announced financial results for the second quarter ended June 30,
2020.
Nano Dimension reported revenues of $288,000 for
the second quarter of 2020. The Company ended the quarter with a
cash and deposits balance of $49,525,000, while total operating
loss for the second quarter was $3,812,000.
“As projected by our President & CEO in our
last investors conference call in mid-May, the global effects of
the Covid-19 pandemic have caused a material decrease to our
revenues, since companies and organizations around the world are
not releasing budgets for purchases of capital equipment,” said
Yael Sandler, Chief Financial Officer of Nano Dimension. “Yet, we
are already witnessing electronic companies considering ways to
shorten their supply chains by looking to reduce dependency in the
Far East by buffering part of their manufacturing on the ground in
America and Europe, rather than only in China. Our DragonFly LDM
Additive Manufacturing Electronic system allows exactly this:
Short-cycled and cost-efficient prototyping and eventually
fabrication of functional high-performance electronic devices
('Hi-PEDs') with minimal ecological disruptions. In the meanwhile,
rather than over spending on marketing and sales while the market
is irresponsive as capital expenses budgets are Corona-stagnated,
we are directing the resources received from the successful equity
offerings in the second quarter of 2020 to product and technology
development. As a result, we expect to be better positioned once
the electronics landscape is revitalized in a post-Covid-19
resurgence,” concluded Ms. Sandler.
Second Quarter 2020 Financial Results
- Total revenues for the second
quarter of 2020 were $288,000, compared to $702,000 in the first
quarter of 2020, and $1,161,000 in the second quarter of 2019. The
decrease is attributed to continuing delays in identified
transactions of DragonFly systems, which the Company primarily
attributes to Covid-19.
- Research and development (R&D)
expenses for the second quarter of 2020 were $1,895,000, compared
to $1,702,000 in the first quarter of 2020, and $2,322,000 in the
second quarter of 2019. The increase compared to the first quarter
of 2020 is attributed to an increase in payroll and related
expenses, as the Company is temporarily mobilizes resources from
marketing and sales to product enhancements. The decrease compared
to the second quarter of 2019 is mainly attributed to a decrease in
payroll and related expenses and materials expenses. The Company
intends to allocate more funds to R&D, in order to be ready
with new technology as Covid-19 subsides.
- Sales and marketing (S&M)
expenses for the second quarter of 2020 were $930,000, compared to
$819,000 in the first quarter of 2020, and $1,507,000 in the second
quarter of 2019. The increase compared to the first quarter of 2020
is attributed to an increase in payroll and related expenses,
before the eruption of the Covid-19 pandemic. The decrease compared
to the second quarter of 2019 was mainly attributed to a decrease
in payroll and related expenses and marketing and advertising
expenses.
- General and administrative
(G&A) expenses for the second quarter of 2020 were $908,000,
compared to $1,035,000 in the first quarter of 2020, and $1,023,000
in the second quarter of 2019. The decrease compared to the first
quarter of 2020 is attributed to a decrease in share-based payments
expenses. The decrease compared to the second quarter of 2019 is
attributed to a decrease in professional services expenses and the
results of cost cutting of salaries and other expenses in the early
stage of Covid-19 related slow down.
- Net loss for the second quarter of
2020 was $8,265,000, or $0.27 per share, compared to $2,074,000, or
$0.32 per share, in the first quarter of 2020, and $1,188,000, or
$0.30 per share, in the second quarter of 2019. The increase
compared to both the first quarter of 2020 and the second quarter
of 2019 is mainly attributed to finance expenses of approximately
$4,322,000 that were recognized in the second quarter of 2020, as a
result of the change in the fair value of warrants, which are
non-cash expenses.
Six Months Ended June 30, 2020 Financial
Results
- Total revenues for the six months
ended June 30, 2020 were $990,000, compared to $2,850,000 in the
six months ended June 30, 2019. The decrease is attributed to less
sales of DragonFly systems in the first half of 2020, which the
Company primarily attributes to Covid-19.
- R&D expenses for the six months
ended June 30, 2020 were $3,597,000, compared to $4,474,000 in the
six months ended June 30, 2019. The decrease resulted primarily
from a decrease in payroll and related expenses and materials
expenses.
- S&M expenses for the six months
ended June 30, 2020 were $1,749,000, compared to $2,871,000 in the
six months ended June 30, 2019. The decrease is mainly attributed
to a decrease in payroll and related expenses and marketing and
advertising expenses.
- G&A expenses for the six months
ended June 30, 2020 were $1,943,000, compared to $1,590,000 in the
six months ended June 30, 2019. The increase is mainly attributed
to an increase in share-based payments expenses.
- Net loss for the six months ended
June 30, 2020 was $10,339,000, or $0.55 per share, compared to
$2,664,000, or $0.80 per share, in the six months ended June 30,
2019. The increase is mainly attributed to finance expenses of
approximately $3,023,000 that were recognized in the first half of
2020 as a result of the change in the fair value of warrants and
convertible notes, compared to finance income of approximately
$7,316,000 in the first half of 2019 as a result of the change in
the fair value of warrants and convertible notes.
Balance Sheet Highlights
- Cash and cash equivalents, together
with short-term bank deposits totaled $49,525,000 as of June 30,
2020, compared to $3,925,000 as of December 31, 2019. The increase
compared to December 31, 2019, mainly reflects proceeds received
from the sale of American Depositary Shares representing the
Company’s ordinary shares in the first half of 2020, less cash used
in operations during the six months ended June 30, 2020.
- Shareholders’ equity totaled
$57,604,000 as of June 30, 2020, compared to $11,602,000 as of
December 31, 2019.
Conference call information
The Company will host a conference call to
discuss these financial results today, August 13, 2019,
at 9:00 a.m. EDT (4:00 p.m. IDT). Investors interested in
participating are invited to register for the conference call here:
http://dpregister.com/10146541. 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.
About Nano DimensionNano Dimension (Nasdaq:
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 StatementsThis 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 of
its products and directing resources to product and technology
development, its expectation to be better positioned as the
electronics landscape is revitalized in a post-Covid-19 resurgence,
and the Company’s intention to allocate more funds to R&D, in
order to be ready with new technology as Covid-19 subsides. 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. 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 CONTACTYael
Sandler, CFO | ir@nano-di.com
|
Consolidated Statements of Financial Position as
at |
|
|
June 30, |
|
|
December 31, |
|
|
2019 |
|
2020 |
|
|
2019 |
|
(In thousands of
USD) |
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
5,290 |
|
|
39,665 |
|
|
3,894 |
|
Bank deposits |
31 |
|
|
9,860 |
|
|
31 |
|
Trade receivables |
1,174 |
|
|
541 |
|
|
1,816 |
|
Other receivables |
573 |
|
|
503 |
|
|
570 |
|
Inventory |
3,967 |
|
|
3,956 |
|
|
3,543 |
|
Total current
assets |
11,035 |
|
|
54,525 |
|
|
9,854 |
|
|
|
|
|
|
|
|
|
|
Restricted deposits |
351 |
|
|
376 |
|
|
377 |
|
Property plant and equipment, net |
5,350 |
|
|
4,391 |
|
|
4,743 |
|
Right of use asset |
1,640 |
|
|
2,258 |
|
|
2,673 |
|
Intangible assets |
5,597 |
|
|
4,826 |
|
|
5,211 |
|
Total non-current
assets |
12,938 |
|
|
11,851 |
|
|
13,004 |
|
Total
assets |
23,973 |
|
|
66,376 |
|
|
22,858 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Trade payables |
819 |
|
|
669 |
|
|
850 |
|
Other payables |
3,153 |
|
|
3,678 |
|
|
3,575 |
|
Total current
liabilities |
3,972 |
|
|
4,347 |
|
|
4,425 |
|
|
|
|
|
|
|
|
|
|
Liability in respect of government grants |
867 |
|
|
892 |
|
|
1,044 |
|
Lease liability |
1,273 |
|
|
1,699 |
|
|
2,089 |
|
Liability in respect of warrants and rights of purchase |
2,804 |
|
|
1,834 |
|
|
3,698 |
|
Total non-current
liabilities |
4,944 |
|
|
4,425 |
|
|
6,831 |
|
Total
liabilities |
8,916 |
|
|
8,772 |
|
|
11,256 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Share capital |
5,559 |
|
|
66,236 |
|
|
6,441 |
|
Share premium and capital reserves |
63,850 |
|
|
61,748 |
|
|
65,202 |
|
Treasury shares |
(1,509 |
) |
|
(1,509 |
) |
|
(1,509 |
) |
Presentation currency translation reserve |
1,431 |
|
|
1,431 |
|
|
1,431 |
|
Accumulated loss |
(54,274 |
) |
|
(70,302 |
) |
|
(59,963 |
) |
Total
equity |
15,057 |
|
|
57,604 |
|
|
11,602 |
|
Total liabilities and
equity |
23,973 |
|
|
66,376 |
|
|
22,858 |
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Profit or Loss and Other
Comprehensive Income |
(In thousands of USD, except per share amounts) |
|
|
For the Six-Month Period Ended June 30, |
|
For the Three-Month Period Ended June 30, |
|
|
|
For the Year ended December 31, |
|
2019 |
|
2020 |
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
2,850 |
|
|
990 |
|
|
1,161 |
|
|
288 |
|
|
|
7,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
1,959 |
|
|
589 |
|
|
841 |
|
|
174 |
|
|
|
4,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues - amortization of intangible |
386 |
|
|
386 |
|
|
193 |
|
|
193 |
|
|
|
772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenues |
2,345 |
|
|
975 |
|
|
1,034 |
|
|
367 |
|
|
|
5,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
505 |
|
|
15 |
|
|
127 |
|
|
(79 |
) |
|
|
1,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses, net |
4,474 |
|
|
3,597 |
|
|
2,322 |
|
|
1,895 |
|
|
|
8,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
2,871 |
|
|
1,749 |
|
|
1,507 |
|
|
930 |
|
|
|
5,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
1,590 |
|
|
1,943 |
|
|
1,023 |
|
|
908 |
|
|
|
3,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
(8,430 |
) |
|
(7,274 |
) |
|
(4,725 |
) |
|
(3,812 |
) |
|
|
(14,835 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
7,317 |
|
|
130 |
|
|
3,796 |
|
|
-- |
|
|
|
8,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance expense |
1,551 |
|
|
3,195 |
(*) |
|
259 |
|
|
4,453 |
(*) |
|
|
2,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss |
(2,664 |
) |
|
(10,339 |
) |
|
(1,188 |
) |
|
(8,265 |
) |
|
|
(8,353 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share (after 1:50 reverse split effective June 29,
2020) |
(0.82 |
) |
|
(0.55 |
) |
|
(0.33 |
) |
|
(0.27 |
) |
|
|
(2.38 |
) |
(*) The Finance expenses are mainly attributed to finance
expenses due to changes in the fair value of warrants of
approximately $3,023,000 in the six months ended June 30, 2020, and
approximately $4,322,000 in the second quarter of 2020.
|
Consolidated Statements of Changes in Equity
(Unaudited) |
(In thousands of USD) |
|
|
Share capital |
|
|
Share premium and capital reserves |
|
Treasury shares |
|
Presentation currency translation reserve |
|
|
Accumulated loss |
|
Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2020 |
6,441 |
|
|
65,202 |
|
|
(1,509 |
) |
|
1,431 |
|
|
(59,963 |
) |
|
11,602 |
|
Issuance of ordinary shares, net |
55,512 |
|
|
(9,743 |
) |
|
-- |
|
|
-- |
|
|
-- |
|
|
45,769 |
|
Conversion of convertible notes |
2,013 |
|
|
(78 |
) |
|
-- |
|
|
-- |
|
|
-- |
|
|
1,935 |
|
Exercise of warrants and options |
2,270 |
|
|
2,883 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
5,153 |
|
Share-based payments |
-- |
|
|
3,484 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
3,484 |
|
Net loss |
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
(10,339 |
) |
|
(10,339 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of June 30, 2020 |
66,236 |
|
|
61,748 |
|
|
(1,509 |
) |
|
1,431 |
|
|
(70,302 |
) |
|
57,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of April 1, 2020 |
12,219 |
|
|
65,216 |
|
|
(1,509 |
) |
|
1,431 |
|
|
(62,037 |
) |
|
15,320 |
|
Issuance of ordinary shares, net |
51,747 |
|
|
(9,325 |
) |
|
-- |
|
|
-- |
|
|
-- |
|
|
42,422 |
|
Exercise of warrants and options |
2,270 |
|
|
2,883 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
5,153 |
|
Share-based payments |
-- |
|
|
2,974 |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
2,974 |
|
Net loss |
-- |
|
|
-- |
|
|
-- |
|
|
-- |
|
|
(8,265 |
) |
|
(8,265 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of June 30, 2020 |
66,236 |
|
|
61,748 |
|
|
(1,509 |
) |
|
1,431 |
|
|
(70,302 |
) |
|
57,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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