ViewBix Inc(VBIX) - 2022 Q4 - Annual Report

Financial Performance - Revenues for the year ended December 31, 2022, were $96,603 thousand, a 114% increase from $45,224 thousand in 2021, primarily due to the full-year inclusion of Cortex's financial results following its acquisition [244]. - Traffic acquisition and related costs for 2022 were $83,011 thousand, up 121% from $37,442 thousand in 2021, reflecting the same reason of Cortex's full-year financial results inclusion [245]. - Research and development costs increased to $3,255 thousand in 2022 from $2,369 thousand in 2021, attributed to the inclusion of Cortex's financial statements [246]. - Net financial expense for 2022 was $1,456 thousand, compared to net financial income of $140 thousand in 2021, mainly due to increased interest rates and expenses related to the Financing Agreement [251]. Cash Flow - Positive cash flow from operations for 2022 was $3,237 thousand, driven by a net income of $1,117 thousand and positive adjustments to operating activities [262]. - Negative cash flow from investing activities was $74 thousand in 2022, significantly reduced from $10,765 thousand in 2021, primarily due to the Cortex Acquisition [264]. - Negative cash flow from financing activities in 2022 was $4,224 thousand, mainly due to repayment of long-term loans and dividends paid to non-controlling interests [265]. Assets and Liabilities - As of December 31, 2022, current assets totaled $29,841 thousand, with cash and cash equivalents at $4,196 thousand, while current liabilities were $28,522 thousand, resulting in positive working capital of $1,319 thousand [254][261]. Financing and Debt - Gix Media's financial covenants under the Financing Agreement require a debt to EBITDA ratio not to exceed 2.4 in the first two years and 1.75 in the following two years, with compliance as of December 31, 2022 [271]. - The company may seek additional financing through equity or convertible debt, which could adversely affect the trading price of its common stock [272]. - Adverse conditions in financial markets could hinder future financing efforts, potentially leading to unexpected costs and cash requirements [272]. Acquisitions and Valuation - The Cortex Acquisition involved a payment of NIS 35 million (approximately $11 million) for 70% of the share capital, with an obligation to acquire the remaining shares [242]. - The company allocates purchase prices of acquired assets based on estimated fair values, with residual amounts recorded as goodwill [275]. - Significant estimates and assumptions are required for the valuation of intangible assets, including discount rates and future cash flows [275].