MDGS - Medigus Announces Record 2022 Financial Results
TEL AVIV, Israel, May 04, 2023 (GLOBE NEWSWIRE) -- Medigus Ltd. (Nasdaq: MDGS) (“Medigus”), a technology company engaged in advanced medical solutions, innovative internet technologies and electric vehicle and charging solutions, today announced financial results and the filing of its annual report on Form 20-F for the year ended December 31 2022, with the U.S. Securities and Exchange Commission (SEC).
The annual report on Form 20-F, containing audited consolidated financial statements for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on May 3, 2023, is available on the company’s website ( https://medigus.com/ ). Shareholders may receive a hard copy of the annual report free of charge upon request. This press release is being issued pursuant to Nasdaq Listing Rule 5250(d)(1)(C).
Key highlights:
- Generated record revenues of $91.8 million in the year ended on December 31, 2022, compared to $10.1 million revenues in the same period of 2021
- Gross profit reached a record $14.4 million in the year 2022, up 201% from a gross profit of $4.8 million in year ended on December 31, 2021
- Shareholders’ equity improved to $54.6 million as of December 31, 2022, up from $51.4 million at December 31, 2021
2022 and recent highlights:
- Medigus distributed cash capital of $1.6 million
- IPO - Jeffs’ Brands Ltd. (34.87%) announced the closing of its $15.5 million initial public offering
- Viewbix (through Gix internet (42.25%)) Reported its financial results for 2022 with a 114% growth in revenues totaling $97 million
- Charging Robotics merged with Fuel Doctor, a public company in the US and commenced trading on the OTC market
- Eventer (46.21%) concluded 2022 with revenues of $2.4million, compared to $1.1 million in 2021
“I am pleased to announce that 2022 was a remarkable year for Medigus, with record high revenues of $91.8 million. The successful performance of our subsidiaries was a significant driver of this achievement,” said Liron Carmel, Chief executive officer of Medigus, “Furthermore, since 2022, two of our subsidiaries have become public companies traded on the Nasdaq and OTC Market, which emphasizes our commitment to sustain growth and provide value to our shareholders. These results are a testament to the diligent efforts and unwavering dedication of our entire team towards realizing the vision of Medigus as an innovation company.”
The Company’s loss before taxes on income for 2022 was approx. $10 million, compared to profit before taxes on income of approx. $4.1 million in 2021. Operating loss for the year ended on December 31, 2022, was $13.7 million, compared to operating loss for the year ended on December 31, 2021, of approx. $9.9 million.
About Medigus
Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is a technologies company that is focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce, and electric vehicle markets. Medigus’ affiliations in the medical solutions arena include the ownership in Polyrizon Ltd. The Company’s affiliates in digital commerce include Gix Internet Ltd., Jeffs’ Brands and Eventer Technologies Ltd. In the electric vehicle market, Fuel Doctor, Inc., Charging Robotics, Ltd. and Revoltz Ltd. are also part of the Company’s portfolio of technology solution providers. Other affiliations of the Company include ScoutCam Inc., Parazero Technologies Ltd., Laminera Flow Optimization Ltd. Medigus is traded on the Nasdaq Capital Market. To learn more about Medigus’ advanced technologies, please visit http://www.medigus.com/investor-relations .
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 Medigus’ current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Medigus could differ materially from those described in or implied by the statements in this press release.
The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed in any filings with the SEC. Except as otherwise required by law, Medigus 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. Medigus is not responsible for the contents of third-party websites.
Company Contact:
Tali Dinar
Chief Financial Officer
+972-8-6466-880
ir@medigus.com
Investor Relations Contact:
Michal Efraty
Investor Relations, Israel
+972-(0)52-3044404
michal@efraty.com
| MEDIGUS LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
| December 31, |
| 2022 |
| 2021 |
| USD in thousands |
| ASSETS |
| CURRENT ASSETS: |
| Cash and cash equivalents |
| 20,065 |
| 24,025 |
| Short term deposit |
| 859 |
| - |
| Restricted cash |
| 185 |
| - |
| Trade accounts receivable |
| 21,449 |
| 408 |
| Other receivables and prepaid expenses |
| 1,928 |
| 415 |
| Inventory |
| 1,791 |
| 1,227 |
| Loans to associates |
| 546 |
| 1,265 |
| Loans to others |
| 1,011 |
| - |
| Related party prepaid expenses |
| - |
| 999 |
| Related parties |
| 298 |
| - |
| Financial assets at fair value through profit or loss |
| 4,126 |
| 3,315 |
| 52,258 |
| 31,654 |
| NON-CURRENT ASSETS: |
| Property and equipment, net |
| 408 |
| 77 |
| Right-of-use assets, net |
| 591 |
| - |
| Investments accounted for using the equity method |
| 11,892 |
| 17,240 |
| Intangible assets, net |
| 30,862 |
| 8,321 |
| Deferred offering costs |
| - |
| 836 |
| Deferred tax asset |
| 397 |
| - |
| Financial assets at fair value through profit or loss |
| 1,243 |
| 1,602 |
| 45,393 |
| 28,076 |
| TOTAL ASSETS |
| 97,651 |
| 59,730 |
| MEDIGUS LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
| December 31, |
| 2022 |
| 2021 |
| USD in thousands |
| LIABILITIES AND EQUITY |
| CURRENT LIABILITIES: |
| Trade accounts payable |
| 20,421 |
| 702 |
| Short term loans |
| 5,111 |
| 816 |
| Short term related party loan |
| - |
| 111 |
| Current portion of long-term loans |
| 1,500 |
| - |
| Current portion of long-term related party payable |
| - |
| 506 |
| Lease liabilities |
| 131 |
| - |
| Warrants at fair value |
| 396 |
| 692 |
| Contract liability |
| 49 |
| 108 |
| Liability to event producers |
| 1,654 |
| 1,556 |
| Derivative liabilities |
| 4,159 |
| - |
| Related parties |
| 1,055 |
| 616 |
| Accrued expenses and other current liabilities |
| 3,151 |
| 1,532 |
| 37,627 |
| 6,639 |
| NON-CURRENT LIABILITIES: |
| Lease liabilities |
| 512 |
| - |
| Long-term loans |
| 2,881 |
| - |
| Loans from related parties |
| - |
| 689 |
| Long-term related party payable |
| - |
| 711 |
| Deferred tax liability |
| 1,817 |
| 236 |
| Accrued severance pay, net |
| 125 |
| 22 |
| 5,335 |
| 1,658 |
| TOTAL LIABILITIES |
| 42,962 |
| 8,297 |
| EQUITY: |
| Share capital – ordinary shares with no par value: authorized – December 31,2022 – 200,000,000 and December 31, 2021 – 50,000,000 shares; issued and outstanding – December 31, 2022 – 24,661,470 shares December 31, 2021 – 23,850,128 shares (*) |
| - |
| - |
| Share premium |
| 111,322 |
| 110,562 |
| Other capital reserves |
| 13,208 |
| 12,619 |
| Warrants |
| 197 |
| 197 |
| Accumulated deficit |
| (85,586 |
| ) |
| (74,188 |
| ) |
| Equity attributable to owners of Medigus Ltd. |
| 39,141 |
| 49,190 |
| Non-controlling interests |
| 15,548 |
| 2,243 |
| 54,689 |
| 51,433 |
| TOTAL LIABILITIES AND EQUITY |
| 97,651 |
| 59,730 |
MEDIGUS LTD.
CONSOLIDATED STATEMENTS OF INCOME/LOSS AND OTHER COMPREHENSIVE INCOME/LOSS
| Year Ended December 31 |
| 2022 |
| 2021 |
| 2020 |
| USD in thousands |
| Revenue |
| Products |
| 5,861 |
| 8,933 |
| 491 |
| Services |
| 85,997 |
| 1,185 |
| 40 |
| 91,858 |
| 10,118 |
| 531 |
| Cost of revenues: |
| Products |
| 5,059 |
| 4,938 |
| 988 |
| Services |
| 72,347 |
| 379 |
| 46 |
| 77,406 |
| 5,317 |
| 1,034 |
| Gross profit (loss) |
| 14,452 |
| 4,801 |
| (503 |
| ) |
| Research and development expenses |
| 4,853 |
| 1,045 |
| 997 |
| Sales and marketing expenses |
| 4,006 |
| 1,988 |
| 471 |
| General and administrative expenses |
| 14,174 |
| 9,964 |
| 5,494 |
| Net change in fair value of financial assets at fair value through profit or loss |
| 2,544 |
| (713 |
| ) |
| (797 |
| ) |
| Share of net loss of associates accounted for using the equity method |
| 2,659 |
| 2,149 |
| 170 |
| Amortization of excess purchase price of associates |
| - |
| 263 |
| 546 |
| Operating loss |
| (13,784 |
| ) |
| (9,895 |
| ) |
| (7,384 |
| ) |
| Gain upon loss of control in a subsidiary |
| - |
| (11,465 |
| ) |
| - |
| Gain from initial recognition of assets and liabilities upon consolidation of Gix Internet |
| (2,300 |
| ) |
| - |
| - |
| Loss (gain) from sale of investments |
| 127 |
| (2,025 |
| ) |
| - |
| Other income |
| (45 |
| ) |
| (494 |
| ) |
| - |
| Changes in fair value of warrants issued to investors |
| (159 |
| ) |
| (484 |
| ) |
| (338 |
| ) |
| Changes in fair value of warrants issued to third party investors by a consolidated subsidiary |
| (3,619 |
| ) |
| 75 |
| - |
| Financial (income) loss, net |
| 2,309 |
| 347 |
| (205 |
| ) |
| Profit (loss) before taxes on income |
| (10,097 |
| ) |
| 4,151 |
| (6,841 |
| ) |
| Tax expense |
| (111 |
| ) |
| (105 |
| ) |
| (9 |
| ) |
| Net profit (loss) for the year |
| (10,208 |
| ) |
| 4,046 |
| (6,850 |
| ) |
| Other comprehensive income |
| Items that may be reclassified to profit or loss |
| Share of other comprehensive income of consolidated subsidiaries and associates accounted for using the equity method |
| 460 |
| 191 |
| 8 |
| Items that will not be reclassified to profit or loss |
| Share of other comprehensive income (loss) of consolidated subsidiaries and associates accounted for using the equity method |
| - |
| (29 |
| ) |
| 27 |
| Other comprehensive income for the year |
| 460 |
| 162 |
| 35 |
| Total comprehensive income (loss) for the year |
| (9,748 |
| ) |
| 4,208 |
| (6,815 |
| ) |
| Net profit (loss) for the year is attributable to: |
| Owners of Medigus |
| (9,815 |
| ) |
| 6,794 |
| (4,325 |
| ) |
| Non-controlling interests |
| (393 |
| ) |
| (2,748 |
| ) |
| (2,525 |
| ) |
| (10,208 |
| ) |
| 4,046 |
| (6,850 |
| Total comprehensive income (loss) for the year is attributable to: |
| Owners of Medigus |
| (9,503 |
| ) |
| 6,881 |
| (4,278 |
| Non-controlling interests |
| (245 |
| ) |
| (2,673 |
| ) |
| (2,537 |
| ) |
| (9,748 |
| ) |
| 4,208 |
| (6,815 |
| ) |
| Earnings (Loss) per ordinary share attributed to Medigus ltd |
| Basic |
| (0.40 |
| ) |
| 0.2 |
| (0.6 |
| ) |
| Diluted |
| (0.40 |
| ) |
| 0.2 |
| (0.6 |
| ) |
| Weighted average ordinary shares outstanding (in thousands) |
| Basic |
| 24,385 |
| (*)23,036 |
| (*)6,672 |
| Diluted |
| 24,385 |
| (*)23,036 |
| (*)6,672 |
| (*) |
| Share and per share data in these financial statements have been retrospectively adjusted, for all periods presented, to reflect a number of shares that is equivalent to the number of shares of the Company post the Reverse Split |