Mobilicom has expanded its offering and total addressable market (TAM) beyond small-sized drones into the mid-sized uncrewed aerial vehicle (UAV) market with its newly released MCU-70 & MCU-300 products Major milestone delivering live HD video and broadband data from high-speed jet UAV over long range operations up to 100 km Shoham, Israel, April 18, 2024 (GLOBE NEWSWIRE) --  Mobilicom Limited (NASDAQ:MOB, MOBBW))), a provider of cybersecurity and robust solutions for drones and robotics, today announced th ...

Revenue Performance - Revenue for the year ended December 31, 2023, was AUD$3,301,887, an increase of AUD$974,829 or 42% compared to AUD$2,327,058 in 2022, primarily due to initial scaled production by Tier-1 customers and increased defense orders [240]. - Total revenue and other income decreased to AUD$4,593,140 in 2023 from AUD$8,363,135 in 2022, a decline of AUD$3,769,995 [239]. Profitability and Expenses - Gross profit for 2023 was AUD$1,944,273, with a gross margin of 59%, down from 62% in 2022, attributed to high-end IP-based technology and effective cost-reduction strategies [245]. - General and administrative expenses increased by AUD$1,341,534 or 50% to AUD$4,032,454 in 2023, mainly due to higher costs associated with being a public company and increased U.S. operations [249]. - The company incurred a net loss of AUD$6.9 million (approximately $4.7 million) for the year ended December 31, 2023, with accumulated losses of AUD$30.9 million since inception [252]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, were AUD$12.3 million (approximately $8.4 million), with total receivables recognized at AUD$1.4 million (approximately $977,578) [254]. - Net cash used in operating activities for 2023 was AUD$6,207,518, an increase from AUD$4,468,304 in 2022, primarily due to decreased customer receipts and increased payments to suppliers [258]. - The company believes its existing funds will cover operating expenses and capital expenditures for the next twelve months despite liquidity risks associated with operational expansion [418]. Research and Development - Research and development expenses rose by AUD$351,518 or 14% to AUD$2,936,825 in 2023, driven by higher material costs and new product development [248]. Financing and Future Plans - The company plans to satisfy future cash needs through debt or equity financings and governmental grants until significant recurring revenues are generated [255]. - The company raised gross proceeds of $2.95 million (approximately AUD$4.3 million) from the January 2024 Offering, which included the issuance of 486,871 ADSs and warrants [265]. Economic and Market Conditions - The company continues to monitor macro-economic conditions, including supply chain issues and inflation, which may impact operations and costs, with potential price increases considered to offset cost pressures [267]. - The company does not currently hedge foreign currency exchange risk but may consider formal hedging transactions in the future to mitigate exposure from AUD$/NIS fluctuations [417]. - A 10% devaluation of the AUD$ against the NIS could increase the company's net loss by approximately AUD$434,000, while a 10% appreciation could decrease the net loss by approximately AUD$355,000 [417]. - The company is not aware of any trends or events likely to materially affect its net revenue or profitability from January 1, 2023, to the present [267]. Liabilities and Obligations - As of December 31, 2023, the company has operating lease obligations of AUD$696,800 (approximately $476,611) and net employee benefits obligations of AUD$295,542 (approximately $202,151) not reflected as liabilities in the balance sheet [264]. - The company measures governmental liabilities on grants received based on discounted cash flows from anticipated future revenues [271]. - The lease term is a significant factor in measuring right-of-use assets and lease liabilities, with management exercising judgment on lease extension options [272]. Share-Based Remuneration - The company has a share-based remuneration scheme, with the fair value of share options estimated using the Black-Scholes model, impacting the financial statements over the vesting period [270].

Financial Performance - Customer revenue in 2022 decreased by 35% compared to 2021, totaling $2.3 million, primarily due to supply chain challenges affecting production capabilities [18] - Sales revenue for the year ended December 31, 2022, was $2,327,058, a decrease from $3,578,603 in 2021 [83] - The profit after income tax for 2022 was a loss of $341,469, an improvement compared to a loss of $2,704,845 in 2021 [83] - Total revenue for the year ended 31 December 2022 was $2,327,058, a decrease of 35% from $3,578,603 in 2021 [106] - The company reported a loss after income tax expense of $341,469 for 2022, compared to a loss of $2,704,845 in 2021, indicating an improvement [106] - Total comprehensive income for the year was a loss of $910,094, which includes other comprehensive losses of $568,625 [110] - The company reported a loss before income tax of $327,483 for 2022, significantly improved from a loss of $2,695,679 in 2021 [170] Cash and Liquidity - The company ended 2022 with a cash balance of $19.0 million, providing a healthy runway for operations [21] - Cash and cash equivalents rose to $18,917,416, compared to $3,947,156 in the previous year, reflecting a strong liquidity position [107] - Cash at bank increased to $18,976,542 as of December 31, 2022, compared to $3,996,300 in 2021, indicating improved liquidity [170] - Cash flows from operating activities resulted in a net cash outflow of $4,468,304, compared to a smaller outflow of $1,806,179 in the previous year [110] Research and Development - Government R&D grants increased by 17.2% compared to 2021, amounting to $0.9 million [20] - Mobilicom secured $408,000 in a new U.S. Space Florida R&D program for existing innovation projects [31] - Research and development expenses for the year were $2,516,922, slightly higher than $2,374,700 in 2021, indicating continued investment in innovation [106] - Research and development expenses increased to $2,516,922 in 2022 from $2,374,700 in 2021, highlighting ongoing commitment to innovation [168] Product Development and Market Position - Mobilicom achieved 44 design wins, including 12 new wins in 2022, with 8 being Tier-1 customers [22] - The company successfully launched the SkyHopper Micro, designed for mass deployment of small drone fleets, which has been selected for integration by a Tier-1 manufacturer [22] - The AI-based Immunity Cybersecurity and Encryption (ICE) Cybersecurity Suite is positioned to serve a market forecasted to grow at a CAGR of 63% to $27 billion by 2028 [6] - Mobilicom's strategic partnership with Mistral aims to integrate its solutions into the U.S. defense industry [8] - The company expects 2023 to be a growth year, anticipating additional design wins and a ramp-up in manufacturing to scale revenues [12] - Mobilicom launched the SkyHopper Micro product, designed for mass deployment of small drone fleets, featuring ICE Cybersecurity software [28] Financial Position and Assets - Total assets increased significantly to $21,206,246 as of 31 December 2022, up from $5,945,599 in 2021 [107] - The total assets of the consolidated entity as of December 31, 2022, were $21,206,246, with net assets amounting to $17,860,907 [131] - The company recognized a net gain on fair value movement of warrants amounting to $3,768,466, contributing to total income [106] Executive Compensation - The executive remuneration framework includes fixed and variable components, with a focus on aligning executive rewards with shareholder interests [62] - Non-executive directors' fees were capped at a maximum annual aggregate remuneration of $250,000 as approved in February 2017 [61] - The short-term incentives (STI) program is linked to specific annual targets and key performance indicators (KPIs) such as profit contribution and customer satisfaction [65] - The long-term incentives (LTI) include share-based payments awarded over a three-year period based on shareholder value increases [66] - Key management personnel remuneration includes non-recurring payments totaling $244,551 related to the period from May to December 2021 [71] Shareholder Information - The company completed an oversubscribed $19 million IPO in August 2022, issuing 3.22 million units at $4.13 per unit [25] - The share price at the end of the financial year decreased to $0.01 from $0.04 at the start of the year [83] - Basic earnings per share for 2022 was a loss of $0.05, compared to a loss of $0.91 in 2021 [83] - The company has a total of 96,546,734 unissued ordinary shares under option as of the report date [89] Expenses and Liabilities - Total liabilities increased to $3,345,339 from $2,616,480 in 2021, primarily due to the addition of warrants financial liability [107] - Selling and marketing expenses rose to $2,415,883 in 2022, up from $1,657,958 in 2021, indicating increased investment in marketing efforts [166] - General and administration expenses also increased to $2,532,033 in 2022, compared to $1,376,829 in 2021, driven by higher salaries and professional fees [169] - The company incurred payments to suppliers and employees amounting to $8,231,267, which is an increase from $6,572,578 in the previous year [110]

Revenue and Income - Revenue for the year ended December 31, 2022, was AUD$2,327,058 (approximately $1,580,881), a decrease of AUD$1,251,545 or 35% compared to AUD$3,578,603 in 2021 due to supply chain challenges [224]. - Interest income surged to AUD$168,843 (approximately $114,703) in 2022, a significant increase of AUD$167,263 or 7,260% from AUD$1,580 in 2021, attributed to short-term deposits from the August 2022 IPO [226]. - Foreign exchange gains were AUD$1,175,735 (approximately $798,733) in 2022, compared to AUD$nil in 2021, reflecting favorable currency exchange rate changes [227]. - Fair value gains from financial liability amounted to AUD$3,768,466 (approximately $2,560,099) in 2022, compared to AUD$nil in 2021, linked to the revaluation of warrants from the August 2022 IPO [228]. - Government grants from IIA increased to AUD$923,033 (approximately $627,060) in 2022, up AUD$135,489 or 17% from AUD$787,544 in 2021 [225]. Expenses - Total expenses increased to AUD$7,807,135 in 2022, up AUD$1,987,312 or 34% from AUD$5,819,823 in 2021, driven by higher sales and marketing, and general administrative costs [230]. - Sales and marketing expenses rose to AUD$2,464,936 (approximately $1,674,550) in 2022, an increase of AUD$772,862 or 46% from AUD$1,692,074 in 2021, due to expanded activities in the US and Europe [231]. - General and administrative expenses surged to AUD$2,690,920 (approximately $1,828,071) in 2022, an increase of AUD$1,260,058 or 88% from AUD$1,430,862 in 2021, primarily due to costs related to the IPO [233]. Profit and Loss - Gross profit for 2022 was AUD$1,443,575, down AUD$891,445 from AUD$2,335,020 in 2021, with a gross margin of 62% compared to 65% in 2021 [229]. - As of December 31, 2022, the company incurred a net loss of AUD$341,469 (approximately $231,978) and has accumulated losses of AUD$24.1 million (approximately $16.3 million) since inception [249]. Cash Flow and Financial Position - As of December 31, 2022, the company had cash and cash equivalents of AUD$19.0 million (approximately $12.9 million) and receivables of AUD$828,351 (approximately $562,740) [250]. - For the year ended December 31, 2022, net cash used in operating activities was AUD$4,468,304, an increase from AUD$1,806,179 in 2021, primarily due to decreased receipts from customers and increased payments to suppliers [254]. - Net cash provided by financing activities for the year ended December 31, 2022, was AUD$19,475,174, significantly higher than AUD$3,368,358 in 2021, mainly due to proceeds from the August 2022 initial public offering [257]. - For the year ended December 31, 2022, net cash used in investing activities was AUD$26,628, a slight decrease from AUD$30,534 in 2021 [256]. - The company estimates it has adequate financial resources for at least 12 months from December 31, 2022, based on current cash and trade receivable balances [250]. - The company is exposed to liquidity risk but believes existing funds will cover operating expenses and capital expenditures for the next twelve months [413]. - The company may need to seek additional funds in the future, depending on its ability to generate significant recurring revenues [251]. Economic and Risk Factors - The company continues to monitor macro-economic conditions, including inflation and supply chain issues, which may impact operations and cash flow [263]. - The company does not currently hedge foreign currency exchange risk but may consider formal currency hedging transactions in the future [411]. - The company has contractual obligations totaling AUD$743,123 as of December 31, 2022, primarily related to operating leases and employee benefits [260].