Mobilicom Ltd 6-K, filed Sep 9, 2024
Mobilicom Ltd (MOB)
About this 6-K
Mobilicom Ltd filed this 6-K on September 9, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of September
Commission File Number
(Translation of registrant’s name into English)
1 Rakefet Street
Shoham, Israel 6083705
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
CONTENTS
This Report of Foreign Private Issuer on Form 6-K consists of the Registrants (i) Interim Condensed Financial Statements as of June 30, 2024, which is attached hereto as Exhibit 99.1, (ii) Management’s Discussion and Analysis of Financial Condition and Results of Operations for the six months ended June 30, 2024, which is attached hereto as Exhibit 99.2 and (iii) press release issued on September 9, 2024, titled “Mobilicom Reports Financial Results for the Six Months Ended June 30, 2024; Revenues Up 232%”, which is attached hereto as Exhibit 99.3.
This Report on Form 6-K, including Exhibit 99.1, Exhibit 99.2 and the first paragraph, the sections titled “Financial Highlights for the Six Months Ended June 30, 2024”, “Recent Operational Highlights”, “Forward Looking Statements”, “Use of Non-IFRS Financial Information” and the Unaudited Interim Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income, Reconciliation table of EBITDA to Loss after income tax expenses and Unaudited Interim Condensed Consolidated Statements of Financial Position tables in the press release attached as Exhibit 99.3, is incorporated by reference into the Company’s Registration Statement on Form F-3 (File No. 333-274929), filed with the Securities and Exchange Commission, to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
1
EXHIBIT INDEX
| Exhibit No. | ||
| 99.1 | Mobilicom Ltd.’s Interim Consolidated Condensed Financial Statements as of June 30, 2024. | |
| 99.2 | Mobilicom Ltd.’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the six months ended June 30, 2024. | |
| 99.3 | Press release titled: “Mobilicom Reports Financial Results for the Six Months Ended June 30, 2024; Revenues Up 232%.” | |
| 101.INS | Inline XBRL Instance Document. | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MOBILICOM LIMITED | |||
| Date: September 9, 2024 | By: | /s/ Oren Elkayam | |
| Name: | Oren Elkayam | ||
| Title: | Chairman | ||
3
Exhibit 99.1
Mobilicom Limited
Unaudited interim condensed consolidated financial statements as of June 30, 2024
Mobilicom Limited Contents |
|
i
| Mobilicom Limited Unaudited interim condensed consolidated statement of profit or loss and other comprehensive income For the half-year ended June 30, 2024 |
|
Note | June 30, 2024 | Restated (*) June 30, 2023 | ||||||||||
| $ | $ | |||||||||||
| Unaudited | Unaudited | |||||||||||
| Revenue | 4 | |||||||||||
| Cost of sales | ( | ) | ( | ) | ||||||||
| Government grants | ||||||||||||
| Foreign exchange gains | 1,2 | |||||||||||
| Interest received | ||||||||||||
| Net gain on fair value movement of warrants | 6 | |||||||||||
| Total other income | ||||||||||||
| Expenses | ||||||||||||
| Selling and marketing expenses | ( | ) | ( | ) | ||||||||
| Research and development | ( | ) | ( | ) | ||||||||
| General and administration expenses | ( | ) | ( | ) | ||||||||
| Finance costs | ( | ) | ( | ) | ||||||||
| Loss before income tax expense | ( | ) | ( | ) | ||||||||
| Income tax expense | ( | ) | ( | ) | ||||||||
| Loss after income tax expense for the half-year attributable to the owners of Mobilicom Limited | ( | ) | ( | ) | ||||||||
| Other comprehensive income (loss) | ||||||||||||
| Items that will not be reclassified subsequently to profit or loss | ||||||||||||
| Re-measurement of defined benefit plans | 2,8 | |||||||||||
| Foreign currency translation | 2,8 | ( | ) | |||||||||
| Items that may be reclassified subsequently to profit or loss | ||||||||||||
| Foreign currency translation | 2,8 | ( | ) | ( | ) | |||||||
| Other comprehensive loss for the half-year, net of tax | ( | ) | ( | ) | ||||||||
| Total comprehensive loss for the half-year attributable to the owners of Mobilicom Limited | ( | ) | ( | ) | ||||||||
| Cents | Cents | |||||||||||
| Basic earnings/(losses) per share | 11 | ( | ) | ( | ) | |||||||
| Diluted earnings /(losses) per share | 11 | ( | ) | ( | ) | |||||||
| (*) |
The above unaudited interim condensed consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
1
| Mobilicom Limited Unaudited interim condensed consolidated statement of financial position As at June 30, 2024 |
|
| Note | June 30 2024 | Restated (*) December 31 2023 | ||||||||||
| $ | $ | |||||||||||
| Unaudited | ||||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Restricted cash | ||||||||||||
| Trade receivables | ||||||||||||
| Other receivables | ||||||||||||
| Inventories, net | ||||||||||||
| Total current assets | ||||||||||||
| Non-current assets | ||||||||||||
| Property, plant and equipment, net | ||||||||||||
| Right-of-use assets | ||||||||||||
| Total non-current assets | ||||||||||||
| Total assets | ||||||||||||
| Liabilities | ||||||||||||
| Current liabilities | ||||||||||||
| Trade payables | ||||||||||||
| Other payables | ||||||||||||
| Lease liabilities | 5 | |||||||||||
| Warrants financial liability | 6 | |||||||||||
| Total current liabilities | ||||||||||||
| Non-current liabilities | ||||||||||||
| Lease liabilities | 5 | |||||||||||
| Employee benefits | ||||||||||||
| Governmental liabilities on grants received | ||||||||||||
| Total non-current liabilities | ||||||||||||
| Total liabilities | ||||||||||||
| Net assets | ||||||||||||
| Equity | ||||||||||||
| Issued capital | 7 | |||||||||||
| Reserves | 8 | ( | ) | ( | ) | |||||||
| Accumulated losses | ( | ) | ( | ) | ||||||||
| Total equity | ||||||||||||
| (*) | Restated throughout for presentation in US Dollars. See note 1 to the unaudited interim condensed consolidated financial statements for further details. |
The above unaudited interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes
2
| Mobilicom Limited Unaudited interim condensed consolidated statement of changes in equity For the half-year ended June 30, 2024 | |
| Issued | Share based payments | Foreign currency translation | Remeasurement | Accumulated | ||||||||||||||||||||
| Consolidated | capital | reserve | reserve | reserve | losses | Total equity | ||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||||||
| Balance at January 1, 2023 (restated)(*) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Loss after income tax expense for the half-year | ( | ) | ( | ) | ||||||||||||||||||||
| Other comprehensive income for the half-year, net of tax | ( | ) | ( | ) | ||||||||||||||||||||
| Translation adjustments due to change in presentation currency | ( | ) | ( | ) | ||||||||||||||||||||
| Total comprehensive income for the half-year | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Share-based payments | ||||||||||||||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
| Forfeiture of options | ( | ) | ( | ) | ||||||||||||||||||||
| Expiry of options | ( | ) | ||||||||||||||||||||||
| Cancellation of shares | ( | ) | ( | ) | ||||||||||||||||||||
| Balance at June 30, 2023 (restated)(*) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| (*) |
The above unaudited interim condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes
3
| Mobilicom Limited Unaudited interim condensed consolidated statement of changes in equity For the half-year ended June 30, 2024 |
|
| Issued | Share based payments | Foreign currency translation | Remeasurement | Accumulated | ||||||||||||||||||||
| Consolidated | capital | reserve | reserve | reserve | losses | Total equity | ||||||||||||||||||
| $ | $ | $ | $ | $ | $ | |||||||||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||||||
| Balance at December 31, 2023(*) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Loss after income tax expense for the half-year | ( | ) | ( | ) | ||||||||||||||||||||
| Other comprehensive income for the half-year, net of tax | ( | ) | ( | ) | ||||||||||||||||||||
| Total comprehensive income for the half-year | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Share-based payments | ||||||||||||||||||||||||
| Transactions with owners in their capacity as owners: | ||||||||||||||||||||||||
| Contributions of equity, net of transaction costs (note 7) | ||||||||||||||||||||||||
| Expiry of options | ( | ) | ||||||||||||||||||||||
| Balance at June 30, 2024 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| (*) | Restated throughout for presentation in US Dollars. See note 1 to the unaudited interim condensed consolidated financial statements for further details. |
The above unaudited interim condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes
4
Mobilicom Limited Unaudited interim condensed consolidated statement of cash flows |
|
| June 30 2024 | Restated (*) June 30 2023 | |||||||
| $ | $ | |||||||
| Unaudited | Unaudited | |||||||
| Cash flows from operating activities | ||||||||
| Receipts from customers (inclusive of GST) | ||||||||
| Payments to suppliers and employees (inclusive of GST) | ( | ) | ( | ) | ||||
| Interest received | ||||||||
| Interest paid on lease liabilities | ( | ) | ( | ) | ||||
| Government grants received | ||||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities | ||||||||
| Payments for property, plant and equipment | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from shares issuance | ||||||||
| Capital raising costs | ( | ) | ||||||
| Shares buyback (Small parcel plan) payments | ( | ) | ||||||
| Repayment of lease liabilities | ( | ) | ( | ) | ||||
| Net cash provided by / (used in) financing activities | ( | ) | ||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | ( | ) | ||||||
| Cash and cash equivalents and restricted cash at the beginning of the financial half-year | ||||||||
| Cash and cash equivalents and restricted cash at the end of the financial half-year | ||||||||
| (*) |
The above unaudited interim condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes
5
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 1. General information
The consolidated condensed interim unaudited financial statements cover Mobilicom Limited (the “Company”) as a group consisting of the Company and the entities it controlled at the end of, or during, the half year ended June 30, 2023 (collectively, the “Group”).
On January 1, 2024, the Company transitioned from the Australian dollar (“AUD”) as its presentation currency to the U.S. dollar (‘USD”) as its presentation currency. The change was accounted as a change of accounting policy on a retrospective basis. In addition, commencing January 1, 2024, the Company transitioned from AUD as its functional currency to USD as its functional currency. See note 2 for further details.
The functional currency of the Company’s subsidiary, Mobilicom Ltd (“Mobilicom Israel”), is Israeli New Shekels.
Mobilicom Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are:
C/- JM Corporate Services Pty Ltd
Level 21, 459 Collins Street
Melbourne, Victoria, 3000
Australia
The company’s principal activities are design, develop and deliver of cybersecurity and smart robust solutions for drone, robotics and autonomous platforms.
The Company is an end-to-end provider of cybersecurity and robust solutions for drones, robotics & autonomous platforms. As a high-tech company it designs, develops, and delivers robust solutions focused primarily on global drone, robotics and autonomous system manufacturers. The Company holds patented technology & unique know-how for Mobile Mesh networking. It has a large, field proven portfolio of commercialized products used in a variety of applications. The Company is growing a global customer base with sales to high profile customers including corporates, governments, and military departments. Mobilicom’s competitive advantages include outstanding security capabilities and performance in harsh environmental conditions. The Company’s large solution portfolio is being deployed worldwide, seeing the Company derive revenue from hardware, software sales & licensing fees and professional support services for its solutions.
In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on the Israeli population and industrial centers located along Israel’s border with the Gaza Strip and in other areas within the State of Israel. These attacks resulted in thousands of deaths and injuries, and Hamas additionally kidnapped many Israeli civilians and soldiers. Following the attack, Israel’s security cabinet declared war against Hamas and commenced a military campaign against Hamas and other terrorist organizations in parallel to their continued rocket and terror attacks, which included call-up reservists for active military duty in the Israel Defense Forces. As the vast majority of the employees of the Company are situated in Israel, as of the date of the authorization of the financial statements by the directors, none of the Company’s members of management nor employees are in active military reserve duty. The Company’s product, research and development and business development activities remain on track.
The consolidated condensed interim unaudited financial statements were authorised for issue, in accordance with a resolution of directors, on September 6, 2024.
Note 2. Material accounting policy information
These general-purpose consolidated condensed interim unaudited financial statements for the interim half-year reporting period ended June 30, 2024, have been prepared in accordance with International Accounting Standards (“IAS”) 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board (‘IASB’).
These general-purpose consolidated condensed interim unaudited financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these consolidated condensed interim unaudited financial statements are to be read in conjunction with the annual report for the year ended December 31, 2023, and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Australian Corporations Act 2001.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.
6
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 2. Material accounting policy information (continued)
Financial statements in U.S. dollars (“USD”):
Since the Company’s listing on the Nasdaq Capital Market (“Nasdaq”) in August 2022, all capital raises have been denominated in USD. In addition, a majority of the Company’s current assets are in USD, as well as a portion of the costs incurred by the Company are in USD. Management believes that the USD is the primary currency of the economic environment in which the Company operates. On January 1, 2024, the Company moved to USD as its presentation currency. The change was accounted as a change of accounting policy on a retrospective application. The change in presentation currency was followed by change in the functional currency of the Company to USD, requiring re-measurement from the local currency into USD for each of these entities. All exchange gains and losses resulting from the re-measurement are reflected in the consolidated statement of profit or loss and other comprehensive income, as appropriate.
Prior to January 1, 2024, the functional currency of the Company was the AUD. Accordingly, the financial statements of the Company were translated into USD. All statement of financial position accounts were translated using the exchange rates in effect at the balance sheet date. Amounts recorded in the unaudited interim condensed consolidated statement of profit or loss and other comprehensive income were translated using the average exchange rate prevailing during the year. The resulting translation adjustments were reported as a component of shareholders’ equity under accumulated other comprehensive income.
Effective as of the Company’s fiscal year beginning January 1, 2024, the Company’s functional currency became the USD. IAS 21” The Effects of Changes in Foreign Exchange Rates”, requires a change in functional currency to be reported as of the date it is determined there has been a change, and it is generally accepted practice that the change is made at the start of the most recent period that approximates the date of the change. Management determined it would enact this change effective on January 1, 2024. While the change was based on a factual assessment, the determination of the date of the change required management’s judgement given the change in the primary economic and business environment, in which the Company operates, have evolved over time. As part of management’s functional currency assessment, changes in economic facts and circumstances were considered. This included analysis of changes in: management of operations, process, and in the composition of cash and equity balances. The Company has implemented budgeting in USD, whereas this was previously performed in AUD. The Company’s cash inflows consist primarily of USD cash balances and less of AUD, as also reflected in the budget. Following the Company’s delisting from the Australian Securities Exchange in November 2023, the Company focus its capital raise efforts primarily in USD. Assuming current business operating model stays constant, management believes that the USD cash balances will continue to increase, while AUD cash balances will continue to produce a net outflow.
Management re-evaluated
all indicators established in IAS 21 to determine the functional currency of the Company. Such indicators include i) cash flow, ii) expense,
iii) financing and iv) intercompany transactions and arrangements. Management determined that the cash flow and financing indicators
were most relevant to the Company operations and its primary economic environment. At the time of the assessment adopted on January 1,
2024, cash flows generated by the Company that relate to its assets and liabilities now directly affect the Company’s cash flows
and are readily available for remittance to the Company. The majority of cash flow of the Company’s operations is denominated in
USD. Significant asset and equity items on the Company balance sheet are comprised almost solely (greater than
When considering all relevant facts together, management concluded that the USD best reflects the currency of the primary economic environment in which the Company currently operates. Therefore, USD is the functional currency as a result of the change in the most significant economic facts and circumstances from cash flow and financing indicators. As a result, the Company adopted USD as the functional currency effective January 1, 2024.
The change was accounted for prospectively from the date of the change in accordance with IAS 21, “Foreign Currency Matters.” The translated balances of monetary and nonmonetary assets and liabilities recorded in the Company financial statements as of the end of the prior reporting period became the new accounting basis for those assets and liabilities in the period of the change. To the extent the entity had monetary assets and liabilities denominated in the old functional currency, such balances created transactional gains and losses subsequent to the change in functional currency. The amount recorded in the currency translation adjustment account for prior periods was not reversed upon the change in functional currency. The exchange rate on the date of the change became the historical rate for subsequent re-measurement of nonmonetary assets and liabilities into the new functional currency.
7
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 2. Material accounting policy information (continued)
| USD as Functional Currency (in USD) | AUD as Functional Currency (in USD)(*) (Unaudited Pro Forma) | |||||||
| Financial income, net - attributed to foreign translation gain | ||||||||
| Other comprehensive loss - attributed to foreign currency translation adjustments | ( | ) | ( | ) | ||||
(*)
New Accounting Standards and Interpretations not yet mandatory or early adopted
IFRS 18, “Presentation and Disclosure in Financial Statements”
In April 2024, the IASB issued IFRS 18, “Presentation and Disclosure in Financial statements”, a comprehensive new accounting standard which replaces existing IAS 1, “Presentation of Financial Statements”, carrying forward many of the requirements in IAS 1 unchanged and complementing them with new requirements. New requirements of IFRS 18 include mandates to:
| - | present specified categories and defined subtotals in the statement of profit or loss and other comprehensive loss; |
| - | provide disclosures on management-defined performance measures (MPMs) in the notes to the consolidated financial statements; and |
| - | improve aggregation and disaggregation of information in the consolidated financial statements. |
This standard is effective for annual reporting periods beginning on or after January 1, 2027. Earlier application is permitted but will need to be disclosed. The Company is currently assessing the impact of adopting IFRS 18 on the consolidated financial statements.
Other than the above IFRS 18, International Financial Reporting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the half-year ended June 30, 2024.
Liquidity
These unaudited interim condensed consolidated financial statements
have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the
foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. As of June 30, 2024,
the Company has not achieved positive cash flow from operations and incurred a net loss of $
Note 3. Operating segments
The company operates in
8
Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements |
|
Note 4. Revenue
June 30, 2024 | June 30, 2023 | |||||||
| $ | $ | |||||||
| Unaudited | Unaudited | |||||||
| Sales of goods | ||||||||
Revenue from contracts with customers
Revenue from the sale of goods is recognized at the point in time when the customer obtains control of the goods, which is generally at the time of delivery.
For the period ended June
30, | For the period ended June
30, | |||||||
| % of total income | % of total income | |||||||
| Israel | % | % | ||||||
| U.S. & Canada | % | % | ||||||
| Rest of the world | % | % | ||||||
Note 5. Lease liabilities
June 30, | December 31,
| |||||||
| $ | $ | |||||||
| Unaudited | ||||||||
| Current | ||||||||
| Non-current | ||||||||
| Lease liability | ||||||||
9
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 6. Current liabilities - Warrants financial liability
June 30, 2024 | December 31, | |||||||
| $ | $ | |||||||
| Unaudited | ||||||||
| Warrants at fair value | ||||||||
The Company accounts for warrants issued to investors in conjunction with IFRS 9 “Financial Instruments” accounting standards issued by IASB.
| (a) | On August 25, 2022, the Company completed its U.S. listing on the Nasdaq
via the issuance of |
In
addition, on August 25, 2022, in connection with the U.S listing, the
Company granted a total
The tradable pre-funded warrant and representative warrant are referred herein together as “August 2022 Warrants”. The August 2022 Warrants represent financial liabilities at fair value through profit or loss.
On June 30, 2023, the Company reassessed the valuation methodology applied to the valuation of the August 2022 Warrants, in conjunction with an independent valuation from a third party. The August 2022 Warrants are trading on Nasdaq and based on current market activity, it was deemed to be in an active market. The directors believe the quoted share price of the MOBBW security trading on the Nasdaq represents a more accurate valuation of the August 2022 Warrants based on the guidance of IFRS 13 Fair Value Measurement where the fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities. This has resulted in a change of valuation (moving from Level 2 fair value measurement type to Level 1) that was applied on December 31, 2022, as a change in accounting estimates
| Assumption | At December 31, 2023 | At June 30, 2024 | ||||||||||||||
| Value methodology | Level 1 | Level 1 | Level 1 | Level 1 | ||||||||||||
| Exercise price | $ | $ | $ | $ | ||||||||||||
| Share price | $ | $ | $ | $ | ||||||||||||
| Fair value per warrant | $ | $ | $ | $ | ||||||||||||
For the half-year ended June 30, 2024, the Company recorded
fair value gain, net of translation adjustments of $
| (b) | On January 30, 2024, the Company completed a registered direct offering via the issuance of |
During
April 2024,
In
addition, on January 30, 2024, in a concurrent private placement, the
Company issued to the investors in the registered direct offering warrants to purchase up to an aggregate of
10
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 6. Current liabilities - Warrants financial liability (continued)
In
addition, on January 30, 2024, in connection with the registered direct
offering, the Company granted a total
The pre-funded warrant, private placement warrants, and placement agent warrant are referred herein together as “January 2024 Warrants”. The January 2024 Warrants represent financial liabilities at fair value through profit or loss.
The following assumptions were based on observable market conditions that existed at issued date and of June 30, 2024:
| At issue date | At June 30, 2024 | |||||||||||||||
Assumption Value methodology | Level 2 | Level 2 | Level 2 | Level 2 | ||||||||||||
| Historical volatility | % | % | % | % | ||||||||||||
| Exercise price | $ | $ | $ | $ | ||||||||||||
| Share price | $ | $ | $ | $ | ||||||||||||
| Risk-free interest rate | % | % | % | % | ||||||||||||
| Dividend yield | % | % | % | % | ||||||||||||
| Fair value per warrant | $ | $ | $ | $ | ||||||||||||
For the half-year ended June 30, 2024, the Company recorded fair value
gain, net of translation adjustments of $
| Fair value measurements using input type | ||||||||||||
| Level 1 | Level 2 | Level 3 | ||||||||||
| Balance as of December 31, 2023 | $ | $ | ||||||||||
| Warrants issued during the period | ||||||||||||
| Transfer upon exercise of warrants | ( | ) | ||||||||||
| Fair value gain recognized in unaudited interim condensed consolidated statement of profit or loss and other comprehensive income | ( | ) | ( | ) | ||||||||
| Warrant liability as of June 30, 2024 | $ | $ | ||||||||||
11
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 7. Equity - issued capital
| Consolidated | ||||||||||||||||
| June 30, 2024 | December 31, 2023 | June 30, 2024 | December 31, 2023 | |||||||||||||
| Shares | Shares | $ | $ | |||||||||||||
| Unaudited | Unaudited | |||||||||||||||
| Ordinary shares - fully paid | ||||||||||||||||
| Details | Date | Shares | Issue price | $ | ||||||||||
| Balance | ||||||||||||||
| Issue of registered direct offering shares (net of warrant fair value)(*) | $ | |||||||||||||
| Exercise of pre-funded warrants(**) | $ | |||||||||||||
| Capital raising costs | ( | ) | ||||||||||||
| Expiry of options | ||||||||||||||
| Balance | ||||||||||||||
(*)
(**)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.
Note 8.
June 30, 2024 | December 31,
| |||||||
| $ | $ | |||||||
| Unaudited | ||||||||
| Foreign currency reserve | ( | ) | ( | ) | ||||
| Re-measurements reserve | ( | ) | ( | ) | ||||
| ( | ) | ( | ) | |||||
Foreign currency reserve
The reserve is used to recognise exchange differences arising from the translation of the condensed interim financial statements of foreign operations to Australian dollars.
Re-measurement reserve
The reserve is used for remeasurements comprising actuarial gains and losses on the net defined benefit liability.
12
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 8. Equity - reserves (continued)
Movements in reserves
Re-measurement | Foreign currency | |||||||||||
| Consolidated | reserve | reserve | Total | |||||||||
| $ | $ | $ | ||||||||||
| Unaudited | Unaudited | Unaudited | ||||||||||
| Balance on December 31, 2023 | ( | ) | ( | ) | ( | ) | ||||||
| Foreign currency translation | ( | ) | ( | ) | ||||||||
| Re-measurement of defined benefits plans | ||||||||||||
| Balance on June 30, 2024 | ( | ) | ( | ) | ( | ) | ||||||
Note 9. Equity - dividends
There were no dividends paid, recommended or declared during the current or previous financial half-year.
Note 10. Events after the reporting period
No matter or circumstance has arisen since June 30, 2024, that has significantly affected, or may significantly affect the company’s operations, the results of those operations, or the company’s state of affairs in future financial years.
13
| Mobilicom Limited Notes to the unaudited interim condensed consolidated financial statements June 30, 2024 |
|
Note 11. Earnings per share
| June 30, 2024 | June 30, 2023 | |||||||
| $ | $ | |||||||
| Unaudited | Unaudited | |||||||
| Loss after income tax attributable to the owners of Mobilicom Limited | ( | ) | ( | ) | ||||
| Number | Number | |||||||
| Weighted average number of ordinary shares used in calculating basic earnings/(losses) per share | ||||||||
| Weighted average number of ordinary shares used in calculating diluted earnings/(losses) per share | ||||||||
| Cents | Cents | |||||||
| Basic earnings/(losses) per share | ( | ) | ( | ) | ||||
| Diluted earnings/(losses) per share | ( | ) | ( | ) | ||||
The rights to options held by option holders have not been included in the weighted average number of ordinary shares for the purposes of calculating diluted EPS as they do not meet the requirements for inclusion under IASB 133 “Earnings per Share”. The rights to options are non-dilutive as the consolidated entity is loss generating.
14
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following selected financial data and discussion of the Company’s operating and financial condition and prospects in conjunction with the financial statements and the notes thereto included elsewhere in this 6-K and the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission, or the SEC, on March 25, 2024, or the Annual Report. The Company’s financial statements are prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and reported in U.S. dollars. The Company maintain its accounting books and records in U.S. dollars and its functional currency is the U.S. dollar. Certain amounts presented herein may not sum due to rounding. Unless the context requires otherwise, references in this report to “Mobilicom,” the “Company,” “we,” “us” and “our” refer to Mobilicom Limited, an Australian corporation, and to Mobilicom Ltd., the Company’s Israeli subsidiary. “$,” “US$,” “U.S. dollars” and “USD” mean United States dollars, “AUD$” or “AUD” means Australian dollars and “NIS” means New Israeli Shekel.
Cautionary Statement Regarding Forward-Looking Statements
Certain information included herein may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements are often characterized by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue,” “believe,” “should,” “intend,” “project” or other similar words, but are not the only way these statements are identified. These forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, statements that contain projections of results of operations or of financial condition, expected capital needs and expenses, statements relating to the research, development, completion and use of the Company’s products, and all statements (other than statements of historical facts) that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by the Company’s management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate.
Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things:
| ● | the ability to correctly identify and enter new markets; |
| ● | the overall global economic environment; |
| ● | the impact of competition and new technologies; |
| ● | general market, political and economic conditions in the countries in which the Company operates; |
| ● | projected cash flows, future revenues, capital expenditures and liquidity; and |
| ● | changes in the Company’s strategy. |
The foregoing list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s Annual Report and the other risk factors discussed from time to time by the Company in reports filed or furnished to the SEC.
Except as otherwise required by law, the Company 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.
General
The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with its consolidated financial statements and the related notes included in the Annual Report as well as the Company’s unaudited condensed consolidated financial statements and the related notes thereto for the six months ended June 30, 2024, included elsewhere in this Report on Form 6-K. The discussion below contains forward-looking statements that are based upon the Company’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to inaccurate assumptions and known or unknown risks and uncertainties. Commencing January 1, 2024, the Company moved from AUD as its functional and presentation currency to USD as its functional and presentation currency. See “Critical Accounting Judgements, Estimates and Assumptions” for more details.
Overview
Mobilicom is a provider of hardware products and software and cybersecurity solutions that it designs, develops and manufactures and are embedded into small drones or SUAVs, and into robotic systems, or robotics. Mobilicom holds both patented technology and unique know-how. It aims to further develop its global customer base by increasing the number of design wins and targeted pilot projects and ultimately cross-sell other solutions to those same customers in order to become a leading end-to-end provider to SUAV and robotics systems OEMs, who, in turn, sell their systems into the security and surveillance, process industry (processing of bulk resources into other products), infrastructure inspection, first responders, homeland security and courier market segments. “Design wins” are the large-scale and exclusive adoption of the component products by OEM customers on an ongoing basis. The “pilot projects” refers to initial small-scale sales and implementation. An “end-to-end” provider is one that provides all of the key components its customers need for their products.
Operating Results
Comparison of the periods ended June 30, 2024 and 2023
Revenue and Other income
| For the six months ended June 30, | ||||||||||||
| Revenue | 2024 | 2023 | Increase/Decrease | |||||||||
| Revenue | $ | 1,804,765 | $ | 543,431 | $ | 1,261,334 | ||||||
| Other income: | ||||||||||||
| Government grants from IIA | 45,977 | 72,980 | (27,003 | ) | ||||||||
| Interest income | 123,388 | 196,555 | (73,167 | ) | ||||||||
| Foreign exchange gains | 136,518 | 906,343 | (769,825 | ) | ||||||||
| Fair value gains from financial liability | 1,292,371 | 146,661 | 1,145,710 | |||||||||
| Total Revenue and Other income | $ | 3,403,019 | $ | 1,865,970 | $ | 1,537,049 | ||||||
Revenue
Revenues for the six months period ended June 30, 2024, were $1,804,765, compared to $543,431 for the six months period ended June 30, 2023, an increase of $1,261,334 or 132%. The increase resulted mainly from orders by US and Israeli Tier-1 customers delivered within the period.
Government grants from IIA
Grants received under IIA research and development supported programs for the period ended June 30, 2024, were $45,977, compared to $72,980 for the period ended June 30, 2023, a decrease of $27,003 or 37%. The decrease resulted primarily from the timing of submission of supported programs’ performance reports. The Company continues to seek additional supported programs.
Interest income
Interest income from short-term bank deposits, for the period ended June 30, 2024, was $123,388, compared to $196,555 for the period ended June 30, 2023, a decrease of $73,167 or 37%. Short-term deposits attributed to the outstanding cash balances, within each of the comparable periods, mainly from proceeds received from the Company’s January 2024 registered direct offering and August 2022 initial public offering.
2
Foreign Exchange gains
Foreign exchange gains were $136,518 for the period ended June 30, 2024, compared to $906,343 for the period ended June 30, 2023, a decrease of $769,825 or 85%. Foreign exchange gains are mainly due to the effect of changes in currency exchange rates between the USD, the New Israeli Shekel (NIS) and the AUD.
Fair value gains from financial liability
Fair value gains from financial liability were $1,292,371 for the period ended June 30, 2024, compared to $146,661 for the period ended June 30, 2023, an increase of $1,145,710 or 681%. Fair value gains from financial liability are attributed to revaluation gain between measured periods related with the warrants issued in the Company’s January 2024 registered direct offering and August 2022 initial public offering.
Cost of Goods Sold and Gross Profit
| For the six months ended June 30, | ||||||||||||
| 2024 | 2023 | Increase/Decrease | ||||||||||
| Revenue | $ | 1,804,765 | $ | 543,431 | $ | 1,261,334 | ||||||
| Cost of Goods Sold | (802,151 | ) | (227,074 | ) | (575,077 | ) | ||||||
| Gross Profit | $ | 1,002,614 | $ | 316,357 | $ | 686,257 | ||||||
The Company continued to maintain high gross margins for the period ended June 30, 2024, of 56% compared to 58% for the period ended June 30, 2023. The high gross margin is mostly explained by the Company’s products being high-end IP based technology (beyond the hardware value), as well as effective costs-reduction planning for components acquisitions including purchasing components and materials in advance to prepare for future orders. Increase in cost of goods sold was in-line with the increase in revenue.
Expenses
| For the six months ended June 30, | ||||||||||||
| 2024 | 2023 | Increase/Decrease | ||||||||||
| Expenses: | ||||||||||||
| Sales and Marketing | $ | 924,449 | $ | 935,840 | $ | (11,391 | ) | |||||
| Research and Development | 1,047,126 | 1,008,289 | 38,837 | |||||||||
| General and Administrative | 1,127,117 | 1,058,180 | 68,937 | |||||||||
| Finance costs | 1,099,051 | 16,971 | 1,082,080 | |||||||||
| Total expenses | $ | 4,197,743 | $ | 3,019,280 | $ | 1,178,463 | ||||||
Sales and Marketing expenses.
Sales and marketing expenses were $924,449 for the period ended June 30, 2024, compared to $935,840 for the period ended June 30, 2023, a decrease of $11,391 or 1%. The decrease is primarily due to a decrease in consultants’ costs.
Research and Development expenses.
Research and development expenses were $1,047,126 for the period ended June 30, 2024, compared to $1,008,289 for the period ended June 30, 2023, an increase of $38,837 or 4%. The increase is mainly due to continued investment in the development of new products, such as the Company’s recently released OS3 operations system, and additional features to other Company’s products.
3
General and Administrative expenses.
General and administrative expenses were $1,127,117 for the period ended June 30, 2024, compared to $1,058,180 for the period ended June 30, 2023, an increase of $68,937 or 7%. The increase is primarily related with differences under share-based compensation costs between the comparable periods, partially offset by a decrease in public company related costs following the Company’s transition from dual-listed company to a single-listed company (Nasdaq) after the Company delisted from Australian Securities Exchange, or ASX, in November 2023.
Financial costs.
Financial costs were $1,099,051 for the period ended June 30, 2024, compared to $16,971 for the period ended June 30, 2023, an increase of $1,082,080. Financial costs for the period ended June 30, 2024, are primarily related to valuation of warrants issued under private placement in January 2024, in connection with January 2024 registered direct offering. Financial costs for the period ended June 30, 2023, are primarily related to interest paid under the Company’s lease agreements.
Critical Accounting Judgements, Estimates and Assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue, and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. A comprehensive discussion of the Company’s critical accounting judgments, estimates and assumptions is included in “Item 5. Operating and Financial Review and Prospects – Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in the Annual Report, as well as the Company’s unaudited condensed consolidated financial statements and the related notes thereto for the six months ended June 30, 2024, included elsewhere in this Report Form 6-K.
Critical Accounting Policies
Financial statements in U.S. dollars
On January 1, 2024, the Company transitioned to USD as its presentation currency. The change was accounted as a change of accounting policy on a retrospective basis. The change in presentation currency was followed by a change in the functional currency of the Company to USD, requiring re-measurement from the local currency into USD. All exchange gains and losses resulting from the re-measurement are reflected in the consolidated statement of profit or loss and other comprehensive income, as appropriate.
Prior to January 1, 2024, the Company’s functional currency was the AUD. Accordingly, the Company’s financial statements were translated into USD. All statements of financial position accounts were translated using the exchange rates in effect at the balance sheet date. Amounts recorded in the unaudited interim condensed consolidated statement of profit or loss and other comprehensive income were translated using the average exchange rate prevailing during the year. The resulting translation adjustments were reported as a component of shareholders’ equity under accumulated other comprehensive income.
4
Effective as of the Company’s fiscal year beginning January 1, 2024, the Company’s functional currency became the USD. International Accounting Standards (“IAS”) 21 “The Effects of Changes in Foreign Exchange Rates” requires a change in functional currency to be reported as of the date it is determined there has been a change, and it is generally accepted practice that the change is made at the start of the most recent period that approximates the date of the change. Management determined it would enact this change effective on January 1, 2024. While the change was based on a factual assessment, the determination of the date of the change required management’s judgement given the change in the primary economic and business environment in which the Company operates, has evolved over time. As part of management’s functional currency assessment, changes in economic facts and circumstances were considered. This included analysis of changes in: management of operations, process and in the composition of cash and equity balances. The Company has implemented budgeting in USD, whereas this was previously performed in AUD. The Company’s cash inflows consist primarily of USD cash balances and less of AUD, as also reflected in the budget. Following its delisting from the ASX in November 2023, the Company focused its capital raise efforts primarily in USD. Assuming current business operating model stays constant, management believes that the USD cash balances will continue to increase, while AUD cash balances will continue to produce a net outflow.
Management re-evaluated all indicators established in IAS 21 to determine the Company’s functional currency. Such indicators include i) cash flow, ii) expense, iii) financing and iv) intercompany transactions and arrangements. Management determined that the cash flow and financing indicators were most relevant to the Company’s operations and its primary economic environment. At the time of the assessment adopted on January 1, 2024, cash flows generated by the Company that relate to its assets and liabilities now directly affect its cash flows and are readily available for remittance to the Company. The majority of cash flow of its operations is denominated in USD. Significant asset and equity items on the Company’s balance sheet are comprised almost solely (greater than 90%) of USD denominated transactions. Furthermore, most of the Company’s generated cash flows are now invested in USD based cash and cash equivalents. Since such investments are short-term, cash is readily available for the Company’s current needs. Thus, the USD is the primary currency from which the Company generates and accumulates cash.
When considering all relevant facts together, management concluded that the USD best reflects the currency of the primary economic environment in which the Company currently operates. Therefore, USD is the functional currency as a result of the change in the most significant economic facts and circumstances from cash flow and financing indicators. As a result, the Company adopted USD as the functional currency effective January 1, 2024.
The change was accounted for prospectively from the date of the change in accordance with IAS 21. The translated balances of monetary and nonmonetary assets and liabilities recorded in the Company’s financial statements as of the end of the prior reporting period became the new accounting basis for those assets and liabilities in the period of the change. To the extent the Company had monetary assets and liabilities denominated in the old functional currency, such balances created transactional gains and losses subsequent to the change in functional currency. The amount recorded in the currency translation adjustment account for prior periods was not reversed upon the change in functional currency. The exchange rate on the date of the change became the historical rate for subsequent re-measurement of nonmonetary assets and liabilities into the new functional currency.
The following table summarizes the impact on both consolidated net loss and other comprehensive income (loss) utilizing USD as the Company’s functional currency as of June 30, 2024, compared to the related impact if the Company’s functional currency would have remained AUD (excluding foreign exchange from transactions denominated in AUD recorded in the respective period):
USD as Functional Currency (in USD) | AUD as Functional Currency (in USD)(*) (Unaudited Pro Forma) | |||||||
| Financial income, net - attributed to foreign translation gain | 136,518 | 694,958 | ||||||
| Other comprehensive loss - attributed to foreign currency translation adjustments | (170,590 | ) | (476,413 | ) | ||||
(*) The conversion from AUD into USD was made at the exchange rate as of June 30, 2024, on which USD 1.00 equaled AUD 1.518.
5
Liquidity and Capital Resources
As of June 30, 2024, the Company has not achieved positive cash flow from operations and incurred a net loss of $1,653,875 for the period ended June 30, 2024, and generated $24.0 million of accumulated losses since inception.
The Company has financed its operations to date primarily from its January 2024 $2.95 million registered direct offering, its August 2022 $13.3 million initial public offering on Nasdaq Capital Market, public offerings on the ASX, and sales of the Company’s products.
As of June 30, 2024, the Company had cash and cash equivalents and restricted cash of $9.7 million. Additionally, the Company also recognized a total of $443,568 as receivables. The Company estimates that it has adequate financial resources for at least 12 months from the date of this report, based on its current cash and receivables balances and its current ongoing operations. The unaudited interim condensed consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations.
In addition, its operating plans may change as a result of many factors that may currently be unknown to it, and it may need to seek additional funds in the future. the Company’s future capital requirements will depend on many factors, including:
| ● | the progress and costs of its research and development activities; |
| ● | the costs of manufacturing its products; |
| ● | the costs of filing, prosecuting, enforcing and defending patent claims and other intellectual property rights; |
| ● | the costs of its expanding sales and marketing activities, as well as the potential costs of contracting with third parties to provide marketing and distribution services for it or for building such capacities internally; and |
| ● | the magnitude of its general and administrative expenses. |
Until the Company can generate significant recurring revenues, profit and cash flow provided by operating activity it expects to satisfy future cash needs through debt or equity financing as well as governmental grants. In the event that it requires additional financing, it may not be able to raise such financing on terms acceptable to it or at all. If the Company is unable to raise additional capital or generate cash flows necessary to expand its operations and invest in continued innovation, the Company may not be able to compete successfully, which would harm its business, results of operations, and financial condition.
6
Cash Flows
| For the six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Net cash used in operating activities | $ | (1,089,458 | ) | $ | (2,131,935 | ) | ||
| Net cash used in investing activities | (19,458 | ) | (4,304 | ) | ||||
| Net cash provided by / (used in) financing activities | 2,398,543 | (145,240 | ) | |||||
| Increase (decrease) in cash and cash equivalents and restricted cash | 1,289,627 | (2,281,479 | ) | |||||
| Cash and cash equivalents and restricted cash, at the beginning of the period | 8,444,709 | 12,891,672 | ||||||
| Cash and cash equivalents and restricted cash, at the end of the period | 9,734,336 | 10,610,193 | ||||||
Net cash used in operating activities
For the periods ended June 30, 2024, and 2023, net cash used in operating activities was $1,089,458 and $2,131,935, respectively. The increase between the periods is primarily due to an increase in receipts from customers, partially offset by an increase in payments to suppliers and employees.
Net cash used in investing activities
For the periods ended June 30, 2024, and 2023, the net cash used in investing activities was $19,458 and $4,304, respectively.
Net cash provided by financing activities
For the period ended June 30, 2024, the net cash provided by financing activities was $2,398,543. Net cash provided by is primarily attributed to proceeds from share issuances in the January 2024 registered direct offering, less capital raise costs. For the period ended June 30, 2023, the net cash used in financing activities was $145,240. Net cash used for is primarily attributed to repayment of lease liabilities.
7
Exhibit 99.3
Mobilicom Reports Financial Results for the Six Months Ended June 30, 2024; Revenues Up 232%
Strong cash position and growing revenues driven by initial production scale orders from U.S. and Israeli Tier-1 customers as gross margins and OPEX remain consistent, demonstrating business model scalability
SHOHAM, Israel, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Mobilicom Limited (Nasdaq: MOB, MOBBW), a provider of cybersecurity and robust solutions for drones and robotics, today announced its financial results and operational highlights for the six months ended June 30, 2024.
Financial Highlights for the Six Months Ended June 30, 2024
| ● | Revenues increased 232% year-over-year to $1.8 million driven by initial production scale orders from U.S. and Israeli Tier-1 customers |
| ● | OPEX remained steady, while H1 2024 revenue surged by approximately 3.3 times, pointing to the Company’s ability to ramp sales without increasing operational costs |
| ● | Operating net burn rate for the six months ended June 30, 2024 was $1.1 million averaging approximately $180,000 per month |
| ● | Strong cash position of $10 million with narrowing monthly burn rate affords Mobilicom a long cash runway to implement its strategic plans, capture market share, and further ramp revenues |
| ● | EBITDA improved by 37% to $(1.5) million compared to $(2.4) for the first six months of 2023 |
| ● | Gross margin remained high at 56%, reflecting strong high-end IP based technology and effective components costs-reduction planning |
| ● | Confirmed order backlog as of June 30, 2024 was $700,000 and it is expected be fulfilled in the second half of 2024; Backlog increased substantially following the end of H1 |
Recent Operational Highlights
| ● | Received follow-on initial production scale orders from one of the largest U.S. drone manufacturers for SkyHopper PRO to be sold to the U.S. Department of Defense (DoD); Additional larger orders expected as the drone manufacturer successfully competes and wins new government tenders for drones that may be integrated with our solution |
| ● | Received follow-on initial production scale order from one of the world’s largest loitering munitions providers, a prime vendor for Lockheed Martin and lead vendor for the European Union and NATO member countries |
| ● | Mobilicom’s combat-proven ICE Cybersecurity and SkyHopper Pro datalinks selected by Israel’s Ministry of Defense for its small-sized drone program |
| ● | Completed successful integration with Airbus in a collaboration that yields successful proof-of-concept for Mobilicom’s expansion into mid-sized jet UAVs for long-range operations |
| ● | Received initial production-scale order from Israel Aerospace Industries (IAI) for SkyHopper Pro Lite for its loitering drones deployed by Israel Defense Forces and to be evaluated by potential customers worldwide, including the U.S. DoD |
| ● | Launched groundbreaking OS3 Operations platform, a comprehensive software solution designed to deliver Operational Security, Safety, and Standards compliance for the commercial and defense uncrewed drones and robotics industry |
| ● | Launched new MCU-300 cybersecure software defined radio ground unit, expanding total addressable market into the mid-sized long-range drone segment, uncrewed ground, and maritime vehicles |
“Per our strategy, our Tier-1 customers won significant large and growing contracts with U.S. DoD and European Union programs. We believe this is a very strong indicator of Mobilicom’s growth potential for years to come,” stated Mobilicom CEO and Founder Oren Elkayam. “Conflicts across Europe and the Middle East, as well as tension between China and Taiwan are accelerating demand and budget allocations for autonomous systems. Moreover, the rise of electronic warfare underscores the critical importance of cybersecurity, putting our ICE Suite at the center of essential defense systems. All of these factors converge to drive increasing demand for Mobilicom’s systems.”
About Mobilicom
Mobilicom is a leading provider of cybersecure robust solutions for the rapidly growing defense and commercial drones and robotics market. Mobilicom’s large portfolio of field-proven technologies includes cybersecurity, software, hardware, and professional services that power, connect, guide, and secure drones and robotics. Through deployments across the globe with over 50 customers, including the world’s largest drone manufacturers, Mobilicom’s end-to-end solutions are used in mission-critical functions.
For investors, please use https://ir.mobilicom.com/
For company, please use www.mobilicom.com
Forward Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. For example, the Company is using forward-looking statements when it discusses its expectation to receive additional larger orders as its drone manufacturer customer successfully competes and wins new government tenders for drones that may be integrated with our solution, its belief that its Tier-1 customers winning significant large and growing contracts with U.S. DoD and European Union programs is a very strong indicator of Mobilicom’s growth potential for years to come and the increasing demand for Mobilicom’s systems. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Mobilicom Limited’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Mobilicom Limited undertakes no duty to update such information except as required under applicable law.
For more information on Mobilicom, please contact:
Liad Gelfer
Mobilicom Ltd
liad.gelfer@mobilicom.com
Use of Non-IFRS Financial Information
In addition to disclosing financial results calculated in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, this release also contains non-IFRS financial measures, which Mobilicom believes are the principal indicators of the operating and financial performance of its business.
Management believes the non-IFRS financial measures provided are useful to investors' understanding and assessment of Mobilicom’s ongoing core operations and prospects for the future, as the charges eliminated are not part of the day-to-day business or reflective of the core operational activities of the company. Management uses these non-IFRS financial measures as a basis for strategic decisions and evaluating the Company's current performance. The presentation of these non-IFRS financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with IFRS or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.
EBITDA is a non-IFRS financial measure that is defined as earnings before interest, taxes, depreciation, amortization, and other non-cash or one-time expenses.
2
Mobilicom Limited
Unaudited Interim Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income
| Restated* | ||||||||
| For the six months ended, June 30, | For the six months ended, June 30, | |||||||
| 2024 | 2023 | |||||||
| $ | $ | |||||||
| Revenue | $ | 1,804,765 | $ | 543,431 | ||||
| Cost of sales | 802,151 | 227,074 | ||||||
| Gross margin | 1,002,614 | 316,357 | ||||||
| Operating Expenses | ||||||||
| Selling and marketing expenses | 924,449 | 935,840 | ||||||
| Research and development, net | 1,001,149 | 935,309 | ||||||
| General and administration expenses | 1,127,117 | 1,058,180 | ||||||
| Total operating expenses | 3,052,715 | 2,929,329 | ||||||
| Operating loss | (2,050,101 | ) | (2,612,972 | ) | ||||
| Financial income, net | (453,226 | ) | (1,232,588 | ) | ||||
| Loss before income tax expenses | $ | (1,596,875 | ) | $ | (1,380,384 | ) | ||
| Income tax expenses | (57,000 | ) | (70,833 | ) | ||||
| Loss after income tax expenses | $ | (1,653,875 | ) | $ | (1,451,217 | ) | ||
| Loss per share - basic and diluted | (0.11 | ) | (0.11 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 1,555,961,075 | 1,329,652,095 | ||||||
| * | Restated throughout following transition from AUD to USD presentation and functional currency |
3
Mobilicom Limited
Reconciliation table of EBITDA to Loss after income tax expenses
| For the six months ended, June 30, | Restated* For the six months ended, | |||||||
| 2024 | 2023 | |||||||
| $ | $ | |||||||
| Loss after income tax expense | $ | (1,653,875 | ) | $ | (1,451,217 | ) | ||
| Financial income, net | (453,226 | ) | (1,232,588 | ) | ||||
| Depreciation | 129,303 | 118,353 | ||||||
| Share-based compensation | 428,066 | 113,145 | ||||||
| Income tax expense | 57,000 | 70,833 | ||||||
| EBITDA | $ | (1,492,732 | ) | $ | (2,381,474 | ) | ||
| * | Restated throughout following transition from AUD to USD presentation and functional currency |
4
Mobilicom Limited
Unaudited Interim Condensed Consolidated Statements of Financial Position
| June 30, | Restated* December 31, | |||||||
| 2024 | 2023 | |||||||
| $ | $ | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 9,676,328 | $ | 8,385,283 | ||||
| Restricted cash | 58,008 | 59,426 | ||||||
| Trade and other receivables, net | 443,568 | 977,578 | ||||||
| Inventories, net | 709,345 | 934,779 | ||||||
| Total current assets | 10,887,249 | 10,357,066 | ||||||
| Non-current assets | ||||||||
| Property, plant and equipment, net | 87,550 | 80,547 | ||||||
| Right-of-use assets | 328,310 | 460,300 | ||||||
| Total non-current assets | 415,860 | 540,847 | ||||||
| Total assets | $ | 11,303,109 | $ | 10,897,913 | ||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Trade and other payables | $ | 1,044,449 | $ | 1,420,018 | ||||
| Lease liabilities | 207,847 | 223,700 | ||||||
| Financial liability | 1,555,632 | 1,075,808 | ||||||
| Total current liabilities | 2,807,928 | 2,719,526 | ||||||
| Non-current liabilities | ||||||||
| Lease liabilities | 115,521 | 229,078 | ||||||
| Employee benefits | 203,409 | 202,151 | ||||||
| Governmental liabilities on grants received | 13,235 | 4,560 | ||||||
| Total non-current liabilities | 332,165 | 435,789 | ||||||
| Total liabilities | 3,140,093 | 3,155,315 | ||||||
| Net assets | $ | 8,163,016 | $ | 7,742,598 | ||||
| Equity | ||||||||
| Issued capital | 32,878,307 | 31,035,121 | ||||||
| Reserves | (680,372 | ) | (911,479 | ) | ||||
| Accumulated losses | (24,034,919 | ) | (22,381,044 | ) | ||||
| Total equity | $ | 8,163,016 | $ | 7,742,598 | ||||
| * | Restated throughout following transition from AUD to USD presentation and functional currency |
5