SatixFy(US:SATX)2023-05-26 12:00Q1 2023 Financial and Operational Highlights SatixFy reported a 12% revenue increase to $2.4 million in Q1 2023, with improved operating and adjusted net losses, despite a significant IFRS net loss driven by derivative revaluation - CEO Ido Gur stated the company is moving in the right direction by reducing expenses while continuing R&D investment, and remains on track for revenue growth in 2023 with an associated improvement in the bottom line3 Q1 2023 Key Financial Metrics (in million USD) | Metric | Q1 2023 | Q1 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenues | $2.4 | $2.1 | +12% | | Gross Profit | $1.0 | $1.2 | -16% | | Gross Margin | 41.0% | 54.7% | -13.7 percentage points | | Operating Loss | $6.0 | $6.4 | Improved | | Net Loss (IFRS) | $32.4 | $10.0 | Worsened | | Adjusted Net Loss (Non-IFRS) | $6.1 | $6.5 | Improved | | Cash and Cash Equivalents | $14.1 | $28.7 | -51% | - The significant IFRS net loss was primarily driven by a $26.3 million net finance expense, including a $43.7 million expense from the valuation of the Forward Purchase Agreement, partially offset by $19.6 million in finance income from Price Adjustment Shares valuation6 Consolidated Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements, highlighting changes in financial position, comprehensive loss, and cash flows for the period Consolidated Statements of Financial Position As of March 31, 2023, total assets significantly decreased, total liabilities slightly declined, and the shareholders' deficit widened due to the net loss for the period Key Balance Sheet Items (in thousand USD) | Account | March 31, 2023 | Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 14,138 | 11,934 | +2,204 | | Total Assets | 37,214 | 76,325 | -39,111 | | Total Current Liabilities | 26,917 | 29,329 | -2,412 | | Total Liabilities | 101,023 | 107,947 | -6,924 | | Total Shareholders' Deficit | (63,809) | (31,622) | -32,187 | Consolidated Statements of Comprehensive Loss For Q1 2023, revenues increased driven by development services, but gross profit declined, leading to a substantial net loss primarily due to derivative revaluation Q1 Income Statement Summary (in thousand USD) | Account | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Revenues | 2,387 | 2,137 | | Gross Profit | 979 | 1,168 | | Loss from Operations | (6,003) | (6,430) | | Derivatives Revaluation | (24,141) | - | | Loss for the Period | (32,407) | (9,982) | | Basic and Diluted Loss per Share | ($0.40) | ($0.52) | Consolidated Statements of Cash Flows In Q1 2023, the company experienced significant cash usage from operating activities, offset by a net inflow from financing activities, resulting in a net cash increase for the quarter Q1 Cash Flow Summary (in thousand USD) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (8,369) | (8,574) | | Net Cash Used in Investing Activities | (19) | (2) | | Net Cash Provided by Financing Activities | 10,447 | 33,589 | | Net Increase in Cash | 2,059 | 25,013 | | Cash at End of Period | 14,138 | 28,658 | Non-IFRS Financial Measures and Reconciliation The company uses non-IFRS adjusted net loss as a supplemental metric to reflect core business performance by excluding non-cash items and derivative revaluations, showing an improved adjusted net loss for Q1 2023 - Non-IFRS adjusted net loss is defined as IFRS net loss excluding depreciation, amortization, and net finance expenses (including derivative revaluations), used by management to evaluate ongoing performance1213 Reconciliation of IFRS Net Loss to Non-IFRS Adjusted Net Loss (in thousand USD) | Line Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | IFRS Net Loss | (32,407) | (9,982) | | Depreciation and amortization | 58 | 44 | | Finance Expenses, net | 26,293 | 3,444 | | Non-IFRS Adjusted Net Loss | (6,056) | (6,494) | | Non-IFRS Adjusted EPS | ($0.08) | ($0.34) |