SCTC - Medigus Announces Record 2022 First Half Financial Results
TEL AVIV, Israel, Sept. 23, 2022 (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 reported financial results for the six months ended June 30, 2022.
Key Highlights
- Generated record revenues of $34.95 million in the first half of 2022, compared to $2.39 million revenues in the first half of 2021
- Gross profit reached a record $6.19 million in the first half of 2022, up from a gross profit of $0.6 million in the first half of 2021
- Cash and cash equivalents as of June 30, 2022 were $22.1 million
- Shareholders’ equity improved to $53.19 million as of June 30, 2022, up from $51.43 million at December 31, 2021
“Our record first half of 2022 financial results are a direct result of our work over the past two years and clearly demonstrate the value in our approach to engage in innovative technology companies with high upside potential,” said Liron Carmel, CEO of Medigus. “As we continue to execute on our diversified business model and add value to our operating segments, we believe Medigus is in a great position to further grow shareholder value with multiple near-term catalysts.”
Recent Highlights:
- Medigus files a motion to approve an up to $1.6 million dividend distribution
- Jeffs’ Brands (35.27%) Ltd. announced the closing of its $15.5 million initial public offering
- Gix Internet (42.25%) reported revenues increase of 166% year-over-year to approximately $43.4 million in the first half of 2022
H1 2022 Highlights:
- Eventer, in which Medigus has a 46.21% ownership stake, achieved record revenues, which increased by 221% year-over-year to approximately $1.4 million in the first half of 2022. Eventer targets the high potential sports events market, and since the beginning of 2022 has entered into agreements with two teams from the Israeli Basketball Premier League and the Israeli National Basketball League and the Israel Gymnastics Federation and the Table Tennis Associations of Israel.
- ParaZero , in which Medigus has a 40.35% ownership stake, signed a non-binding MOU to provide Autonomous Safety Systems for Bon V Heavy Lift Cargo Drones. In addition, a leading global drone manufacturer ordered customized SafeAir TM system from ParaZero and signed an agreement to develop custom safety solution for a leading global automotive manufacturer’s drone program.
- ScoutCam , in which Medigus has a 27.02% ownership stake, completed verification & validation for miniature camera solution with a Fortune 500 customer. ScoutCam also signed a joint development agreement to equip aerial platforms of a top global defense and aviation manufacturer with in-flight monitoring solutions.
- Polyrizon’s PL-15 found effective against highly transmissible SARS-CoV-2 Omicron variant in cell culture assays. Medigus has a 37.03% ownership stake in Polyrizon.
- Medigus announced details of planned spin-off and subsequent merger of its electric vehicles wireless charging business, Charging Robotics . At the beginning of 2022, Charging Robotics, owned by Medigus, and Ben-Gurion University entered the development of the next generation of wireless charging system for electric vehicles
- Medigus’ joint venture, Revoltz (19.9% owned by Medigus through its wholly owned subsidiary, Charging Robotics Ltd.), received first order for micro mobility vehicles from a global distributor. Revoltz also launched a pilot program at a new autonomous supermarket.
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. (TASE: GIX), Jeffs’ Brands and Eventer Technologies Ltd. In the electric vehicle market, Charging Robotics, Ltd. and Revoltz are also part of the Company’s portfolio of technology solution providers. Other affiliations of the Company include ScoutCam Inc. (OTCQB: SCTC). Parazero TechnologiesLtd. , 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. For example, Medigus uses forward looking statements when describing its plans to increase its ownership in Gix and consolidate its and when describing potential activates and restructures in connection with other investments.
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.
Investor Relations Contact:
Dave Gentry
RedChip Companies Inc.
1-800-RED-CHIP (733-2447)
Or 407-491-4498
MDGS@redchip.com
| MEDIGUS LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
| June 30 |
| December 31 |
| 2022 |
| 2021 |
| Unaudited |
| Audited |
| USD in thousands |
| Assets |
| CURRENT ASSETS: |
| Cash and cash equivalents |
| 22,141 |
| 24,025 |
| Pledged deposit |
| 219 |
| - |
| Trade accounts receivable |
| 16,562 |
| 408 |
| Other receivables and prepaid expenses |
| 1,863 |
| 415 |
| Inventory |
| 1,831 |
| 1,227 |
| Loan to an associate |
| - |
| 1,265 |
| Related party prepaid expenses |
| 728 |
| 999 |
| Financial assets at fair value through profit or loss |
| 2,614 |
| 3,315 |
| 45,958 |
| 31,654 |
| NON-CURRENT ASSETS: |
| Property and equipment, net |
| 407 |
| 77 |
| Right-of-use assets, net |
| 667 |
| - |
| Investments accounted for using the equity method |
| 13,407 |
| 17,240 |
| Intangible assets |
| 29,376 |
| 8,321 |
| Deferred offering costs |
| 863 |
| 836 |
| Deferred tax asset |
| 119 |
| - |
| Financial assets at fair value through profit or loss |
| 3,517 |
| 1,602 |
| 48,356 |
| 28,076 |
| TOTAL ASSETS |
| 94,314 |
| 59,730 |
| MEDIGUS LTD. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
| June 30 |
| December 31 |
| 2022 |
| 2021 |
| Unaudited |
| Audited |
| USD in thousands |
| Liabilities and equity |
| CURRENT LIABILITIES: |
| Trade accounts payable |
| 10,450 |
| 702 |
| Short term loans |
| 9,248 |
| 816 |
| Short term related party loan |
| 56 |
| 111 |
| Current portion of long-term related party payable |
| 520 |
| 506 |
| Lease liabilities |
| 158 |
| - |
| Warrants at fair value |
| 854 |
| 692 |
| Contract liability |
| 108 |
| 108 |
| Liability to event producers |
| 2,385 |
| 1,556 |
| Related parties |
| 474 |
| 616 |
| Accrued expenses and other current liabilities |
| 8,924 |
| 1,532 |
| 33,177 |
| 6,639 |
| NON-CURRENT LIABILITIES: |
| Lease liabilities |
| 536 |
| - |
| Long-term loans |
| 4,083 |
| - |
| Loans from related parties |
| 479 |
| 689 |
| Long-term related party payable |
| 580 |
| 711 |
| Deferred tax liability |
| 2,105 |
| 236 |
| Retirement benefit obligation, net |
| 165 |
| 22 |
| 7,948 |
| 1,658 |
| TOTAL LIABILITIES |
| 41,125 |
| 8,297 |
| SHAREHOLDERS’ EQUITY: |
| Share capital – ordinary shares with no par value: authorized – June 30, 2022 and December 31, 2021 – 200,000,000 shares; issued and outstanding – June 30, 2022 – 24,591,470 shares December 31, 2021 – 23,850,128 shares * |
| - |
| - |
| Share premium |
| 111,322 |
| 110,562 |
| Other capital reserves |
| 11,401 |
| 12,619 |
| Warrants |
| 197 |
| 197 |
| Accumulated deficit |
| (77,778 |
| ) |
| (74,188 |
| ) |
| Equity attributable to owners of Medigus Ltd. |
| 45,142 |
| 49,190 |
| Non-controlling interests |
| 8,047 |
| 2,243 |
| TOTAL SHAREHOLDERS’ EQUITY |
| 53,189 |
| 51,433 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| 94,314 |
| 59,730 |
| * |
| Restated to reflect the reverse split at a ratio of 20:1 occurred on July 8, 2022 – see also note 8 to our Interim Condensed Consolidated Financial Statements (unaudited) as of June 30, 2022. |
| MEDIGUS LTD. INTERIM CONSOLIDATED STATEMENTS OF INCOME/LOSS AND OTHER COMPREHENSIVE INCOME/LOSS |
| Six months ended |
| Year ended |
| June 30, |
| December 31 |
| 2022 |
| 2021 |
| 2021 |
| Unaudited |
| Audited |
| USD in thousands |
| Revenues: |
| Products |
| 2,343 |
| 1,934 |
| 8,933 |
| Revenue from services |
| 32,616 |
| 459 |
| 1,185 |
| 34,959 |
| 2,393 |
| 10,118 |
| Cost of revenues: |
| Products |
| 1,933 |
| 1,587 |
| 4,938 |
| Revenue from services |
| 26,834 |
| 202 |
| 379 |
| 28,767 |
| 1,789 |
| 5,317 |
| Gross Profit |
| 6,192 |
| 604 |
| 4,801 |
| Research and development expenses |
| 2,047 |
| 755 |
| 1,045 |
| Sales and marketing expenses |
| 2,112 |
| 624 |
| 1,988 |
| General and administrative expenses |
| 5,638 |
| 4,417 |
| 9,964 |
| Net change in fair value of financial assets at fair value through profit or loss |
| 813 |
| (583 |
| ) |
| (713 |
| ) |
| Share of net loss of associates accounted for using the equity method |
| 1,910 |
| 419 |
| 2,149 |
| Amortization of excess purchase price of an associate |
| - |
| - |
| 263 |
| Operating loss |
| (6,328 |
| ) |
| (5,028 |
| ) |
| (9,895 |
| ) |
| Gain upon loss of control in a subsidiary |
| - |
| (11,502 |
| ) |
| 11,465 |
| ) |
| Gain from initial recognition of assets and liabilities upon control obtained in an associate |
| (2,300 |
| ) |
| - |
| - |
| Gain from sale of investments |
| (68 |
| ) |
| (2,025 |
| ) |
| 2,025 |
| ) |
| Other income |
| (176 |
| ) |
| (299 |
| ) |
| 494 |
| ) |
| Changes in fair value of warrants issued to investors |
| 99 |
| 474 |
| (484 |
| ) |
| Changes in fair value of commitment to issue shares |
| 63 |
| - |
| 75 |
| Financial loss, net |
| 793 |
| 403 |
| 347 |
| Profit (Loss) before taxes on income |
| (4,739 |
| ) |
| 7,921 |
| 4,151 |
| Tax benefit (expense) |
| (9 |
| ) |
| 6 |
| (105 |
| ) |
| Net profit (loss) for the period |
| (4,748 |
| ) |
| 7,927 |
| 4,046 |
| Other comprehensive income (loss) |
| Items that may be reclassified to profit or loss |
| Share of other comprehensive income (loss) of associates accounted for using the equity method |
| (125 |
| ) |
| (104 |
| ) |
| 191 |
| Share of other comprehensive loss of currency translation of subsidiaries |
| (836 |
| ) |
| - |
| - |
| Items that will not be reclassified to profit or loss |
| Share of other comprehensive income (loss) of associates accounted for using the equity method |
| - |
| 37 |
| (29 |
| ) |
| Other comprehensive income (loss) for the period |
| (961 |
| ) |
| (67 |
| ) |
| 162 |
| Total comprehensive income (loss) for the period |
| (5,709 |
| ) |
| 7,860 |
| 4,208 |
| Net profit (loss) for the period is attributable to: |
| Owners of Medigus |
| (3,590 |
| ) |
| 9,785 |
| 6,794 |
| Non-controlling interest |
| (1,158 |
| ) |
| (1,858 |
| ) |
| (2,748 |
| ) |
| (4,748 |
| ) |
| 7,927 |
| 4,046 |
| Total comprehensive income (loss) for the period is attributable to: |
| Owners of Medigus |
| (4,275 |
| ) |
| 9,746 |
| 6,881 |
| Non-controlling interest |
| (1,434 |
| ) |
| (1,886 |
| ) |
| (2,673 |
| ) |
| (5,709 |
| ) |
| 7,860 |
| 4,208 |
| Earning (Loss) per ordinary share attributed to Medigus ltd |
| Basic |
| (0.15 |
| ) |
| 0.02 |
| 0.01 |
| Diluted |
| (0.15 |
| ) |
| 0.04 |
| 0.01 |
| Weighted average ordinary shares outstanding (In thousands) |
| Basic |
| 24,109 |
| *22,212 |
| *23,035 |
| Diluted |
| 24,109 |
| *22,212 |
| *23,035 |
| * |
| Restated to reflect the reverse split at a ratio of 20:1 occurred effected on July 8, 2022 – see also note 8 to our Interim Condensed Consolidated Financial Statements (unaudited) as of June 30, 2022. |