SatixFy(SATX) - 2023 Q4 - Annual Report

markdown SatixFy Full Year 2023 Results [Financial Highlights for the Full Year 2023](index=1&type=section&id=Financial%20Highlights%20for%20the%20Full%20Year%202023) SatixFy's 2023 saw revenues rise 1% to $10.7 million, but operating loss widened to $41.8 million due to increased R&D and G&A expenses Full Year 2023 vs 2022 Financial Performance (in millions) | Financial Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $10.7 | $10.6 | +1% | | Gross Profit | $4.8 | $6.1 | -22% | | Operating Loss | $(41.8) | $(22.3) | +87% | | R&D Expenses | $29.1 | $16.8 | +73% | | G&A Expenses | $14.6 | $9.2 | +58% | | Finance Expenses | $12.0 | $10.0 | +20% | | Cash and Cash Equivalents | $14.0 | $11.9 | +18% | - **Higher R&D Expenses:** A significant increase to **$29.1 million** was driven by investment in developing space-grade ASICs and a decrease in offsetting grants[3](index=3&type=chunk) - **Higher G&A Expenses:** An increase to **$14.6 million** was primarily driven by a **$2.3 million** legal settlement with Alta Partners, LLC, and increased legal and insurance costs[3](index=3&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management emphasized strategic progress in 2023, including a $60 million MDA agreement and advanced customer sampling of key chipsets - A key strategic achievement was the **$60 million** agreement with MDA, which provides advanced payments for the sale of space-grade ASICs and strengthens a long-term partnership[4](index=4&type=chunk) - Product development progressed significantly, with the Prime 2.0 and Sx4000 chips reaching advanced customer sampling stages, bringing them closer to commercialization[4](index=4&type=chunk) - The company is focused on the fast-growing Low Earth Orbit (LEO) market and believes its Digital Beam Former technology will be a key component for upcoming Direct to Device LEO constellations[4](index=4&type=chunk) [About SatixFy](index=2&type=section&id=About%20SatixFy) SatixFy, an Israel-based company, develops end-to-end satellite communication systems leveraging proprietary in-house chipsets - SatixFy's business model is centered on developing end-to-end satellite communication systems, including antennas, terminals, and modems, all based on its proprietary, in-house developed chipsets[5](index=5&type=chunk) - Key products include modems with Software Defined Radio (SDR) supporting the DVB-S2X standard and Electronically Steered Multi Beam Antennas (ESMA) optimized for mobile applications on LEO, MEO, and GEO systems[6](index=6&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents SatixFy's comprehensive loss, balance sheets, and cash flow statements for the reported periods [Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) SatixFy reported total revenues of $10.7 million and a net loss of $29.7 million in 2023, significantly narrowed from 2022 - The net loss for 2023 was **$29.7 million**, a substantial improvement from the **$397.8 million** loss in 2022, primarily due to a **$333.3 million** one-time, non-cash listing expense in 2022[11](index=11&type=chunk) Consolidated Statements of Comprehensive Loss (in USD thousands) | | 2023 | 2022 | | :--- | :--- | :--- | | **Total revenues** | **$10,730** | **$10,626** | | Gross profit | $4,792 | $6,128 | | Research and development expenses, Net | $29,126 | $16,842 | | Selling and marketing expenses | $2,866 | $2,335 | | General and administrative expenses | $14,561 | $9,249 | | **Loss from operations** | **$(41,761)** | **$(22,298)** | | Finance Expenses | $(12,129) | $(9,919) | | Derivatives revaluation | $(17,217) | $(37,377) | | Other Income | $41,657 | $5,474 | | Listing Expenses | - | $(333,326) | | **Loss for the period** | **$(29,715)** | **$(397,789)** | | **Basic and diluted loss per share (in dollars)** | **$(0.37)** | **$(13.25)** | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets decreased to $54.7 million, liabilities increased, and shareholders' deficit widened Balance Sheet Summary (in USD thousands) | | As of Dec 31, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $13,979 | $11,934 | | **Total Assets** | **$54,702** | **$76,325** | | Total Current Liabilities | $50,019 | $29,329 | | Total Non-Current Liabilities | $63,469 | $78,618 | | **Total Liabilities** | **$113,488** | **$107,947** | | **Total shareholders' deficit** | **$(58,786)** | **$(31,622)** | - A significant increase in current liabilities was driven by a rise in 'Advanced payments from MDA against future orders' to **$28.1 million** from **$8.9 million** in 2022[13](index=13&type=chunk) - Non-current assets decreased significantly, primarily because 'Derivatives FPA' valued at **$28.1 million** in 2022 was no longer on the books in 2023[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements regarding strategic plans and product potential, subject to various risks and uncertainties - The report includes forward-looking statements regarding strategic collaborations, commercialization efforts, potential product benefits, and market position[9](index=9&type=chunk) - These statements are subject to significant risks and uncertainties, including the company's ability to obtain funding, market its products, maintain supplier relationships, and geopolitical instability in Israel[9](index=9&type=chunk)