Financial Position and Funding - As of December 31, 2022, the company had an accumulated deficit of €97.24 million and cash and cash equivalents totaling €14.2 million[42]. - The company expects to incur losses and negative cash flows from operations for at least the next 12 months following the issuance of the financial statements[42]. - The company anticipates requiring further funding in the second half of 2023 to maintain operations[51]. - The company received proceeds of €26.5 million from a sale and leaseback transaction finalized on October 31, 2022, improving liquidity and financial flexibility[46]. - In 2021, the company completed three registered direct offerings, raising approximately USD 32 million (€26.6 million) before fees and expenses[44]. - On October 13, 2022, the company completed a registered direct offering raising approximately USD 4.4 million (€4.6 million) before fees and expenses[45]. - A private placement in December 2022 provided voxeljet with gross proceeds of $1.8 million (€1.7 million) from the sale of 828,943 ADSs at $2.16 per ADS[166]. - The Anzu Note issued in January 2023 has a principal amount of $3.2 million (€3.0 million) and matures on January 3, 2028, with a 3% annual interest rate[167]. Market and Operational Risks - The ongoing conflict between Russia and Ukraine poses risks that could impact market demand and supply chains[52]. - Future growth may be affected by global economic conditions, including geopolitical uncertainties and trade restrictions[80]. - The company faces challenges in attracting and retaining key management and skilled employees, which is critical for growth strategy[65]. - Competition in the 3D printing market is intense, with competitors having greater financial and operational resources[68]. - The company relies heavily on sales agents for product sales, and loss of these agents could adversely impact revenues[67]. - Price competition and decreased demand may adversely affect profitability, especially if the company cannot offset price reductions with improved efficiencies[93]. - Disruptions in manufacturing facilities or service centers could result in loss of revenues and increased costs, impacting overall financial performance[102]. - The long sales cycle for 3D printers complicates revenue prediction, potentially leading to significant variability in operating results[92]. - The company relies heavily on sales from the automotive, foundry, aerospace, and art industries, making it vulnerable to downturns in these sectors[109]. Compliance and Regulatory Environment - The company has identified material weaknesses in internal control over financial reporting, which could affect the accuracy of financial statements[54]. - Regulatory changes in privacy and data protection could increase compliance costs and limit business opportunities[105]. - The company is facing increased compliance costs due to new privacy and data protection laws in the U.S. and Europe, which could adversely affect profitability[106]. - Compliance with the GDPR has introduced additional requirements, including a 72-hour data breach reporting mandate, which may lead to significant fines for non-compliance[107]. - The company faces potential liabilities due to non-compliance with environmental laws, which could result in penalties and operational restrictions[84]. - The company may also be strictly liable for environmental damages under the Act on Liability for Environmental Damage, applicable in cases of harm to natural habitats or water[228]. - The company's operations are subject to numerous international laws and regulations, including data privacy, labor relations, and environmental regulations, which could result in fines or sanctions for violations[229]. - The company faces risks related to violations of anti-bribery laws in various jurisdictions, despite having policies in place to ensure compliance[230]. Intellectual Property and Competitive Position - The company relies on a combination of patents, trademarks, and trade secrets to protect its intellectual property, but faces risks of competitors infringing on these rights[143]. - The company may not be able to adequately protect its trade secrets and intellectual property, especially in fast-growing markets like China and India[145]. - The company faces risks related to patent expirations, which could affect its competitive position in the additive manufacturing market[148]. - voxeljet may incur significant costs related to defending against third-party intellectual property claims, which could disrupt operations and financial performance[150]. - The company has exclusive and non-exclusive license rights to certain patents, but the expiration of these patents may allow competitors to enter the market[148]. Operational Performance and Development - The company has expanded operations significantly in Germany, the U.S., and China, with plans for further expansion in Asia and North America[63]. - Sales outside of Germany represented 80%, 83%, and 78% of total sales in 2022, 2021, and 2020, respectively[72]. - The company has an installed base of 224 3D printers worldwide as of December 31, 2022, with service centers in Germany, the United States, and China[174]. - The company is developing new material sets, including PMMA-based plastics and silicon carbide, to meet customer needs[171]. - Research and development expenses for the year ended December 31, 2022, were €6.9 million, compared to €6.1 million in 2021 and €6.5 million in 2020, indicating a year-over-year increase of approximately 13% from 2021 to 2022[195]. - The company expects to continue significant investments in research and development in the future, focusing on proprietary systems, processes, and materials[196]. - The company has received various grants and subsidies from authorities, including the German Federal Ministry of Economics and Technology, aimed at supporting small and medium enterprises[195]. Shareholder and Market Considerations - The company issued 1,279,070 new ordinary shares in October 2022 and 828,943 new ordinary shares in December 2022, which may affect the market price of its ADSs[114]. - The Management Board is authorized to increase registered share capital by up to €3,513,355 until June 1, 2027, which could dilute existing shareholders' interests[119]. - Significant shareholders, including members of the Management Board, own 9.2% of ordinary shares, allowing them to exert considerable influence over corporate decisions[123]. - The company has no current intention to pay dividends on ordinary shares, meaning returns for investors will rely solely on potential price appreciation of ADSs[126]. - As a foreign private issuer, the company is exempt from certain U.S. disclosure requirements, potentially limiting the information available to ADS holders[127]. - U.S. investors may face difficulties enforcing civil liabilities against the company or its board members due to their non-resident status and asset location outside the U.S.[135]. Environmental and Safety Regulations - The company is subject to environmental regulations in Germany, including emissions control laws that limit the processing of resins to 25 kilograms per hour for certain facilities[215]. - The company has a risk prevention officer to ensure compliance with regulations related to the handling of hazardous materials and waste[219]. - The company’s products are subject to the German Product Safety Act, ensuring that only safe products are made available on the market[220]. - The company regularly applies for research and development grants and subsidies, with the majority being non-refundable[195]. - The company must adhere to occupational health and safety laws, influenced by EU regulations, ensuring employee safety in the workplace[224]. - All companies in Germany, including the company, are required to be members of the employers' liability insurance association, which monitors compliance with occupational health and safety requirements[225]. - The company may face product liability and environmental damage liabilities under the German Civil Code, which includes fault-based compensation for breaches of contract[226].
voxeljet(VJET) - 2022 Q4 - Annual Report