Maris(MTEK) - 2022 Q4 - Annual Report

Full Year 2022 Financial Results & Highlights Maris-Tech reported strong 2022 financial results, including significant revenue and backlog growth, driven by strategic initiatives and an IPO Financial Performance Overview Maris-Tech announced significant financial growth for the year ended December 31, 2022, with revenues increasing over 20% and backlog growing by over 215%, alongside a substantial increase in cash and cash equivalents Key Financial Metrics (Year Ended December 31) | Metric | 2022 ($) | 2021 ($) | Change (YoY) (%) | | :----------------------- | :----------- | :----------- | :----------- | | Revenues | $2,504,896 | $2,075,755 | +20.68% | | Cash & Cash Equivalents | $9,339,612 | $49,126 | +18909.9% | | Backlog (as of Jan 1) | $1,900,000 | $608,000 | +212.5% | - Backlog as of March 6, 2023, was approximately $2,600,000, with the majority expected to be delivered and recognized as revenue by the end of 2023[4] CEO's Strategic Review CEO Israel Bar emphasized the 2022 IPO's $17.8 million proceeds, accelerating R&D and marketing, driving significant revenue and backlog growth, and a $1 million share repurchase plan - Completed Initial Public Offering (IPO) in February 2022, raising $17.8 million in gross proceeds to accelerate R&D and marketing efforts[5] - Achieved major milestones in 2022, including significant growth in revenue and backlog, attracting new top customers, and increasing revenue from repeat customers[7] - Announced a share repurchase plan to buy back up to $1 million of ordinary shares, reflecting confidence in the company's future[7] Operational & Strategic Highlights Maris-Tech achieved significant operational and strategic milestones in 2022 and early 2023, including securing major purchase orders, forging new collaborations, launching advanced products, expanding its management team, and enhancing global market presence Revenue Growth & Customer Acquisition The company strengthened its market position by securing substantial purchase orders from leading defense organizations and expanding its customer base to include a major U.S. surveillance manufacturer and a significant direct customer in Australia - Received an aggregate of $1,900,000 in purchase orders from leading defense organizations in March, September, and December 2022 for advanced video recording and interrogation system technology[8] - Secured a $300,000 purchase order from a top U.S. surveillance manufacturer in April 2022, marking its first major U.S. customer[8] - Announced its first significant direct customer in Australia in January 2023, receiving a purchase order for $660,000[8] Strategic Collaborations & Partnerships Maris-Tech expanded its strategic alliances, notably partnering with SpaceIL for the 'Beresheet 2 Lunar Mission' and collaborating with Hailo Technologies to develop the Jupiter-AI platform, alongside strengthening its reseller network and securing R&D grants - Chosen by SpaceIL for the 'Beresheet 2 Lunar Mission' to develop a video recording, streaming, and image processing solution[10] - Collaborated with Hailo Technologies Ltd. to develop the Jupiter-AI platform, a high-end multiple-stream video platform with edge AI acceleration[10] - Received a joint grant with Ben Gurion University for the development of an advanced system for drone fault prediction[10] Product Development & Innovation The company launched its flagship Jupiter-AI platform and initiated the development of the Uranus-AI, demonstrating continuous innovation in high-performance video solutions - Launched the flagship Jupiter-AI, a high-end multiple-stream video platform with edge AI acceleration, in July 2022[10] - Initiated the development of the Uranus-AI in January 2023, an up to 8K Ultra-HD video platform supporting multiple HD/Ultra-HD streams[10] Corporate Development & Market Presence Maris-Tech strengthened its leadership with the formation of an advisory board and key management appointments, while also significantly expanding its global awareness through participation in leading international tech and defense events - Formed an advisory board in February 2023, appointing Mr. Leslie G. Litwin and Mr. Nir Ben Moshe[10] - Appointed Mr. Avi Gilor as U.S. sales and marketing manager in March 2022 to lead product rollout in the United States[10] - Showcased Jupiter-AI at major global events including CES 2023, Commercial UAV Expo, and Eurosatory 2022, enhancing global awareness[10] Capital Markets & Shareholder Initiatives The company completed its initial public offering in February 2022, securing significant capital, and later announced a share repurchase plan to enhance shareholder value - Completed initial public offering (IPO) in February 2022, receiving $17.8 million in gross proceeds[10] - Announced a share repurchase plan in June 2022, authorizing the repurchase of up to $1 million of ordinary shares[10] Company Information This section provides an overview of Maris-Tech's business, its intelligent video transmission technology, and important legal disclaimers for investors About Maris-Tech Ltd. Maris-Tech is a B2B provider of intelligent video transmission technology, founded by Israeli tech veterans, specializing in high-performance, compact, low-power, and low-latency solutions for commercial and tactical applications, serving defense, HLS, and communication sectors globally - Maris-Tech is a B2B provider of intelligent video transmission technology, founded by veterans of the Israel technology sector[11] - Products are designed for commercial and tactical applications, delivering high-performance, compact, low power, and low latency solutions[11] - Serves leading electro-optical payload, RF datalink, and unmanned platform manufacturers, as well as defense, HLS, and communication companies worldwide[11] Forward-Looking Statement Disclaimer This section provides a standard legal disclaimer regarding forward-looking statements, outlining that such statements are based on current beliefs and assumptions, subject to inherent uncertainties and risks, and may differ materially from actual results, advising against undue reliance and stating no obligation to update these statements - The press release contains forward-looking statements based on current beliefs, expectations, and assumptions, subject to inherent uncertainties, risks, and changes in circumstances[12] - Actual results and financial condition may differ materially from those indicated, and readers should not rely on these statements[12] - The company undertakes no obligation to publicly update any forward-looking statement[12] Investor Relations This section provides contact information for investor relations inquiries - Investor Relations contact: Michal Efraty, Adi and Michal PR- IR, Israel, +972-72-2424022, ir@maris-tech.com[13] Consolidated Financial Statements This section presents Maris-Tech's detailed financial position and performance for 2022, including the balance sheet and statements of operations Balance Sheet As of December 31, 2022, Maris-Tech's balance sheet shows a significant increase in total assets, primarily driven by a substantial rise in cash and short-term bank deposits, with total liabilities decreasing, leading to a positive shift from a capital deficiency to positive shareholders' equity Maris-Tech Ltd. Balance Sheet (Amounts in U.S. dollars) | ASSETS | December 31, 2022 ($) | December 31, 2021 ($) | | :----------------------------------- | :---------------- | :---------------- | | Cash and cash equivalents | $221,961 | $785 | | Short-term bank deposits | $9,084,082 | - | | Trade receivables | $1,606,495 | $571,482 | | Other receivables | $359,591 | $2,873 | | Inventories | $981,729 | $391,484 | | Total current assets | $12,253,858 | $966,624 | | Restricted deposits | $33,569 | $48,341 | | Deferred issuance costs | - | $871,171 | | Property, plant and equipment, net | $283,790 | $16,511 | | Severance pay deposits | $156,723 | $136,620 | | Operating lease right-of-use assets | $635,976 | - | | Total non-current assets | $1,110,058 | $1,072,643 | | Total Assets | $13,363,916 | $2,039,267 | | LIABILITIES AND EQUITY | | | | Short-term bank credit and current maturities of long-term bank loans | - | $410,324 | | Trade payables | $1,083,345 | $463,653 | | Other current liabilities | $727,560 | $791,038 | | Short-term liabilities due to a shareholder and a related party | - | $296,459 | | Total current liabilities | $1,810,905 | $1,961,474 | | Long-term loans, net of current maturities | - | $744,769 | | Long-term loans from related party | $1,088,250 | $1,088,250 | | Warrants to purchase ordinary shares | - | $351,845 | | Non-current operating lease liabilities | $442,166 | - | | Accrued severance pay | $425,742 | $272,509 | | Total long-term liabilities | $1,956,158 | $2,457,373 | | Total Liabilities | $3,767,063 | $4,418,847 | | Additional paid-in capital | $17,789,380 | $2,124,601 | | Accumulated deficit | ($8,192,527) | ($4,504,181) | | Total Shareholders' equity (capital deficiency) | $9,596,853 | ($2,379,580) | | Total Liabilities and equity (net of capital deficiency) | $13,363,916 | $2,039,267 | - Total Assets increased significantly from $2,039,267 in 2021 to $13,363,916 in 2022, primarily due to a surge in cash and short-term bank deposits[15] - Total Liabilities decreased from $4,418,847 in 2021 to $3,767,063 in 2022, driven by reductions in short-term bank credit and long-term loans[15] - Shareholders' equity shifted from a deficit of ($2,379,580) in 2021 to a positive $9,596,853 in 2022, largely due to an increase in additional paid-in capital[15] Statements of Operations For the year ended December 31, 2022, Maris-Tech reported a 20.68% increase in revenues to $2.5 million, but gross profit decreased, and a substantial rise in operating expenses, particularly general and administrative costs, led to a significant increase in net loss to $3.69 million Maris-Tech Ltd. Statements of Operations (U.S. dollars) | Metric | Year ended December 31, 2022 ($) | Year ended December 31, 2021 ($) | Year ended December 31, 2020 ($) | | :-------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenues | $2,504,896 | $2,075,755 | $987,883 | | Cost of revenues | $1,722,104 | $1,106,447 | $500,696 | | Gross profit | $782,792 | $969,308 | $487,187 | | Research and development, net | $1,021,869 | $706,021 | $781,417 | | Sales and marketing | $604,114 | $241,114 | $22,551 | | General and administrative | $2,840,660 | $595,074 | $74,169 | | Total operating expenses | $4,466,643 | $1,542,209 | $878,138 | | Loss from operations | $3,683,851 | $572,901 | $390,951 | | Financial expenses, net | $4,495 | $251,323 | $249,392 | | Net loss | $3,688,346 | $824,224 | $640,343 | | Basic and diluted net loss attributable to shareholders per ordinary share | $0.49 | $0.24 | $0.26 | | Weighted average number of ordinary shares used in computing loss per ordinary share | 7,528,038 (Shares) | 3,464,470 (Shares) | 2,483,988 (Shares) | - Revenues increased by 20.68% to $2,504,896 in 2022 from $2,075,755 in 2021[17] - Gross profit decreased by 19.24% to $782,792 in 2022 from $969,308 in 2021, despite revenue growth[17] - Net loss significantly widened to $3,688,346 in 2022, compared to $824,224 in 2021, primarily due to a substantial increase in total operating expenses, particularly general and administrative costs[17]