Exhibit 99.1
MICRONET LTD
2017 CONSOLIDATED FINANCIAL STATEMENTS
MICRONET LTD.
CONSOLIDATED BALANCE SHEETS
(NIS In Thousands)
December 31, 2017 | ||||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | NIS | 5,779 | ||
Trade account receivables, net | 17,969 | |||
Inventories | 17,264 | |||
Other accounts receivable | 3,759 | |||
Total current assets | 44,771 | |||
Property and equipment, net | 3,743 | |||
Intangible assets, net | 4,483 | |||
Long term deposit | 40 | |||
Goodwill | 5,083 | |||
Deferred taxes | 1,879 | |||
Total long term assets | 15,228 | |||
Total assets | NIS | 59,999 |
2 |
MICRONET LTD.
CONSOLIDATED BALANCE SHEETS
(NIS In Thousands)
December 31, 2017 | ||||
LIABILITIES AND EQUITY | ||||
Short term bank credit and current portion of long term bank loans | NIS | - | ||
Trade accounts payable | 12,946 | |||
Other accounts payable | 11,298 | |||
Total current liabilities | 24,244 | |||
Accrued severance pay, net | 552 | |||
A liability for Chief Executive Officer | 104 | |||
Total long term liabilities | 656 | |||
Stockholders’ Equity: | ||||
Common stock | 2,679 | |||
Additional paid in capital | 31,511 | |||
Capital reserve for IAS 19 | (1,024 | ) | ||
Capital reserve for translation adjustments | 1,064 | |||
Capital reserve for share-based payment transactions | 538 | |||
Retained earnings | 331 | |||
Total equity | 35,099 | |||
Total Liabilities and equity | NIS | 59,999 |
3 |
MICRONET LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(NIS In Thousands, Except Earnings Per Share data)
Year ended December 31, | ||||
2017 | ||||
Revenues | NIS | 66,156 | ||
Cost of revenues | 51,981 | |||
Gross profit | 14,175 | |||
Operating expenses: | ||||
Research and development | 6,913 | |||
Selling and marketing | 6,839 | |||
General and administrative | 11,474 | |||
Total operating expenses | 25,226 | |||
Loss from operations | (11,051 | ) | ||
Finance expense, net | (1,945 | ) | ||
Loss before provision for income taxes | (12,996 | ) | ||
Provision for income taxes | 49 | |||
Net loss | (12,947 | ) | ||
Transfer to a capital reserve for IAS 19 | (136 | ) | ||
Adjustments resulting from the translation of financial statements of foreign operations | (769 | ) | ||
Net loss | NIS | (13,852 | ) | |
Loss per share: | ||||
Basic | NIS | (0.55 | ) | |
Diluted | NIS | (0.55 | ) |
4 |
MICRONET LTD.
STATEMENTS OF CHANGES IN EQUITY
(NIS in Thousands)
Share capital | Share premium | Capital reserve for share-based payment transactions | Retained earnings | Capital reserve for translation adjustments | Capital reserve for IAS 19 | Total equity | ||||||||||||||||||||||
Balance, December 31, 2015 | 2,132 | 22,750 | 55 | 30,984 | 2,238 | (895 | ) | 57,264 | ||||||||||||||||||||
Comprehensive loss | - | (17,706 | ) | - | - | (17,706 | ) | |||||||||||||||||||||
Other-comprehensive loss | - | - | - | - | (405 | ) | 7 | (398 | ) | |||||||||||||||||||
Balance, December 31, 2016 | 2,132 | 22,750 | 55 | 13,278 | 1,833 | (888 | ) | 39,160 | ||||||||||||||||||||
Issuance of shares | 547 | 8,706 | - | - | - | 9,253 | ||||||||||||||||||||||
Stock based payment | 538 | 538 | ||||||||||||||||||||||||||
Cancelation of warrants | (55 | ) | (55 | ) | - | |||||||||||||||||||||||
Comprehensive loss | - | - | - | (12,947 | ) | - | - | (12,947 | ) | |||||||||||||||||||
Other-comprehensive loss | - | - | - | (769 | ) | (136 | ) | (905 | ) | |||||||||||||||||||
Balance, December 31, 2017 | 2,679 | 31,511 | 538 | 331 | 1,064 | (1,024 | ) | 35,099 |
5 |
MICRONET LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(NIS In Thousands)
Year
ended December 31, 2017 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | NIS | (12,947 | ) | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 4,570 | |||
Financial expenses, net accrual-basis financial | 1,945 | |||
Share-based payment | 538 | |||
Liability for Chief Executive Officer | (355 | ) | ||
Capital loss from sale of fixed assets | 1 | |||
Income taxes in the income statement | (49 | ) | ||
Decrease in accrued severance pay, net | 261 | |||
6,911 | ||||
Changes in operating assets and liabilities (net of impact of acquisition): | ||||
Increase in trade accounts receivable | (7,425 | ) | ||
Increase in other accounts receivable | (2,924 | ) | ||
Increase in inventories | (1,635 | ) | ||
Decrease in trade accounts payable | 5,469 | |||
Decrease in other accounts payable | 6,782 | |||
NIS | 267 | |||
Cash paid and received during the year for | ||||
Interest paid | (545 | ) | ||
Interest received | 1,042 | |||
Taxes paid | (79 | ) | ||
418 | ||||
Net cash used in operating activities | NIS | (5,351 | ) |
6 |
MICRONET LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(NIS In Thousands)
|
Year ended December 31, 2017 |
|||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchase of property and equipment | (608 | ) | ||
Purchase of intangible assets | (189 | ) | ||
Proceeds from sale of fixed assets | 1 | |||
Sales of marketable securities | 11,373 | |||
Leasing deposit and prepaid expenses | (5 | ) | ||
Granting of loans to employees | 328 | |||
Net cash provided by investing activities | NIS | 10,900 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayment of banks loan | (23,654 | ) | ||
Receipt of bank loan | 13,737 | |||
Repayment liability in respect of financial leasing | (86 | ) | ||
Proceeds from issuance of shares, net | 9,253 | |||
Net cash used in financing activities | NIS | (750 | ) | |
TRANSLATION ADJUSTMENT OF CASH AND CASH EQUIVALENTS | (732 | ) | ||
NET CASH DECREASE IN CASH AND CASH EQUIVALENTS | (4,067 | ) | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,712 | |||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | NIS | 5,779 |
7 |