Page | |
F - 2 - F - 3 | |
F - 4 | |
F - 5 - F - 6 | |
F - 7 | |
F - 8 - F - 17 |
June 30,
|
December 31,
|
|||||||||||
Note |
2023
|
2022
|
||||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS:
|
||||||||||||
Cash and cash equivalents
|
|
|
||||||||||
Trade accounts receivable, net
|
|
|
||||||||||
Contract Assets
|
|
|
||||||||||
Prepaid expenses and other
|
|
|
||||||||||
Government departments and agencies receivables
|
|
|
||||||||||
Related parties
|
4
|
|
|
|||||||||
Derivatives FPA
|
5,6
|
|
|
|||||||||
Inventory
|
|
|
||||||||||
Total current assets
|
|
|
||||||||||
NON-CURRENT ASSETS:
|
||||||||||||
Right-of-use assets, net
|
|
|
||||||||||
Property, plant and equipment, net
|
|
|
||||||||||
Investment in Jet Talk
|
|
|
||||||||||
Long term deposits
|
|
|
||||||||||
Derivatives FPA
|
5,6
|
|
|
|||||||||
Total non-current assets
|
|
|
||||||||||
TOTAL ASSETS
|
|
|
June 30,
|
December 31,
|
|||||||||||
Note |
2023
|
2022
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
||||||||||||
CURRENT LIABILITIES:
|
||||||||||||
Trade payables
|
|
|
||||||||||
Contract Liabilities
|
|
|
||||||||||
ESA advance payments
|
|
|
||||||||||
Prepayments from Customers
|
|
|
||||||||||
Lease liabilities
|
|
|
||||||||||
Other accounts payable and accrued expenses
|
|
|
||||||||||
Related parties
|
4
|
|
|
|||||||||
Derivatives FPA
|
5,6
|
|
|
|||||||||
Total current liabilities
|
|
|
||||||||||
NON-CURRENT LIABILITIES:
|
||||||||||||
Long term loans from financial institutions
|
|
|
||||||||||
Lease liabilities
|
|
|
||||||||||
Derivatives instruments liabilities
|
5
|
|
|
|||||||||
Liability for royalties payable
|
|
|
||||||||||
Derivatives FPA
|
5,6
|
|
|
|||||||||
Total non-current liabilities
|
|
|
||||||||||
SHAREHOLDERS’ DEFICIT:
|
||||||||||||
Share capital
|
|
|
||||||||||
Share premium
|
|
|
||||||||||
Capital reserves
|
|
|
||||||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||||||
Total shareholders’ deficit
|
(
|
)
|
(
|
)
|
||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
|
|
September 3, 2023
|
||||||
Date of approval of the
financial statements
|
Nir Barkan
Acting CEO
|
Oren Harari
Interim CFO
|
Yoav Leibovitch
Chairman of Board
|
For the six-month period ended June 30
|
||||||||||||
Note
|
2023
|
2022
|
||||||||||
Revenues:
|
||||||||||||
Development services and preproduction
|
|
|
||||||||||
Sale of products
|
|
|
||||||||||
Total revenues
|
|
|
||||||||||
Cost of sales and services:
|
||||||||||||
Development services and preproduction
|
|
|
||||||||||
Sale of products
|
|
|
||||||||||
Total cost of sales and services
|
|
|
||||||||||
Gross profit
|
|
|
||||||||||
Research and development expenses, net
|
|
|
||||||||||
Selling and marketing expenses
|
|
|
||||||||||
General and administrative expenses
|
|
|
||||||||||
Loss from operations
|
(
|
)
|
(
|
)
|
||||||||
Finance Income
|
|
|
||||||||||
Finance Expenses
|
3.d |
(
|
)
|
(
|
)
|
|||||||
Derivatives Revaluation
|
(
|
)
|
(
|
)
|
||||||||
Company's share in the loss of a company accounted by equity method, net
|
(
|
)
|
(
|
)
|
||||||||
Loss before income taxes
|
(
|
)
|
(
|
)
|
||||||||
Income taxes
|
|
|
||||||||||
Loss for the period
|
(
|
)
|
(
|
)
|
||||||||
Other comprehensive income (loss) net of tax:
|
||||||||||||
Exchange gain (loss) arising on translation of foreign operations
|
(
|
)
|
|
|||||||||
Total comprehensive loss for the period
|
(
|
)
|
(
|
)
|
||||||||
Basic and diluted loss per share (in dollars)
|
(
|
)
|
*(
|
)
|
||||||||
Basic and diluted weighted average common shares outstanding
|
|
*
|
Ordinary shares
|
Preferred Shares A
|
Preferred Shares B
|
Preferred Shares C
|
Share capital
|
Share premium
|
Accumulated deficit
|
Capital reserves
|
Total
|
||||||||||||||||||||||||||||
Number of shares
|
In USD thousand
|
|||||||||||||||||||||||||||||||||||
Balance as of January 1, 2023
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||||||
Exercise of options
|
|
-
|
-
|
-
|
|
|
|
|
||||||||||||||||||||||||||||
Share based payments
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||||
Balance as of June 30, 2023
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
SATIXFY COMMUNICATIONS LTD.
Ordinary shares
**
|
Preferred Shares A **
|
Preferred Shares B **
|
Preferred Shares C **
|
Share capital
|
Share premium
|
Accumulated deficit
|
Capital reserves
|
Total
|
||||||||||||||||||||||||||||
Number of shares
|
In USD thousand
|
|||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||||||
Exercise of options
|
|
-
|
-
|
-
|
(*
|
|
|
|
|
|||||||||||||||||||||||||||
Shares issued to Financial Institutions
|
|
-
|
-
|
-
|
(*
|
|
|
-
|
-
|
|
||||||||||||||||||||||||||
Warrant exercised
|
-
|
-
|
-
|
|
(*
|
|
|
-
|
-
|
|
||||||||||||||||||||||||||
Stock-based compensation
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loss for the period
|
-
|
-
|
-
|
-
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||||||||
Balance as of June 30, 2022
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
For the six-month period ended June 30
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Loss for the period
|
(
|
)
|
(
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Company's share in the loss of a company accounted by equity method, net
|
|
|
||||||
Finance expenses on loans
|
|
|
||||||
Change in the fair value of warrant liabilities
|
|
(
|
)
|
|||||
Stock-based compensation
|
|
|
||||||
Decrease (Increase) in trade accounts receivable
|
|
(
|
)
|
|||||
Decrease in contract assets
|
|
|
||||||
Decrease (Increase) in inventory
|
|
(
|
)
|
|||||
Increase in other current assets
|
(
|
)
|
(
|
)
|
||||
Increase (Decrease) in trade payables
|
|
(
|
)
|
|||||
Decrease in ESA prepayments
|
(
|
)
|
(
|
)
|
||||
Decrease in other accounts payable and accrued expenses
|
(
|
)
|
(
|
)
|
||||
Increase in prepayments from customers
|
|
|
||||||
Increase in liability for royalties payable
|
|
|
||||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
Cash flow from investing activities
|
||||||||
Decrease (Increase) in long-term bank deposit
|
(
|
)
|
|
|||||
Purchase of property, plant and equipment
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities
|
||||||||
Receipt of long-term loans from a financial institution, net |
|
|||||||
Issuance of shares to a financial institution
|
|
|
||||||
Repayment of loan from shareholder
|
|
(
|
)
|
|||||
Repayment of loans from banks
|
|
(
|
)
|
|||||
Repayment of royalty liability
|
|
(
|
)
|
|||||
Payments of lease liabilities
|
(
|
)
|
(
|
)
|
||||
Cash received from Derivatives FPA
|
|
|
||||||
Issuance of shares
|
|
|
||||||
Option exercises to shares by employees
|
|
|
||||||
Net cash provided by financing activities
|
|
|
||||||
Increase (decrease) in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents balance at the beginning of the period
|
|
|
||||||
Effect of changes in foreign exchange rates on cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents balance at the end of the period
|
|
|
For the six-month period ended June 30
|
||||||||
2023
|
2022
|
|||||||
Appendix A - Cash paid and received during the period for:
|
||||||||
Interest paid
|
|
|
SATIXFY COMMUNICATIONS LTD.
a. |
The Company and its subsidiaries are engaged in the development and marketing of integrated circuit products for specific applications, antennas and terminals used for satellite communications. The Company has developed a new generation of integrated silicon chips for modems and antennas based on its own proprietary technology and provides end-to-end solutions for the satellite communications industry, including terminals, payloads and hubs. The Company develops its advanced chips (Application Specific Integrated Circuit chips (ASICs) and Radio Frequency Integrated Circuit chips (RFICs) based on technology designed to meet a variety of applications and services, such as broadband aviation, IOT, mobility and maritime, and operating on GEO, LEO and MEO satellites. The Company’s technology includes electronically steered antenna arrays, forming and design of digital beams, beam hopping, on-board processing payload chips and software-defined radio (SDR) modem chips.
|
b. |
Business Combination Agreement SPAC Transaction ("Business Combination Agreement" OR "Transactions"):
|
F - 8
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
c. |
As of June 30, 2023, we had incurred accumulated losses of $
|
F - 9
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
F - 10
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
d. |
The affiliated company "Jet Talk" is engaged in the development and marketing of a unique antenna for IFC passenger aircraft and computers that receive broadband video transmissions from satellites.
|
e. |
The Company operates primarily through six wholly owned subsidiaries: Satixfy Israel Ltd, Satixfy UK, Satixfy Space Systems UK, Satixfy Bulgaria, SatixFy US LLC and Satixfy MS ("Group"), all of which have been consolidated in these consolidated financial statements.
|
Name
|
Holding Percentage
|
Held By
|
Country of Incorporation
|
||||||||
June 30, 2023
|
December 31,
2022
|
||||||||||
Satixfy Israel Ltd.
|
|
%
|
|
%
|
Satixfy Communications
|
Israel
|
|||||
Satixfy UK
|
|
%
|
|
%
|
Satixfy Communications
|
UK
|
|||||
Satixfy Space Systems UK (*)
|
|
%
|
|
%
|
Satixfy Communications
|
UK
|
|||||
Satixfy Bulgaria
|
|
%
|
|
%
|
Satixfy UK
|
Bulgaria
|
|||||
Satixfy US LLC
|
|
%
|
|
%
|
Satixfy Communications
|
USA
|
|||||
Endurance Acquisition Corp.
|
|
%
|
|
Satixfy Communications
|
Cayman Islands
|
Name
|
Holding Percentage
|
Held By
|
Country of Incorporation
|
||||||||
June 30, 2023
|
December 31,
2022
|
||||||||||
Jet talk
|
|
%
|
|
%
|
Satixfy UK
|
UK
|
F - 11
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
A. |
Basis of preparation
|
B. |
Changes in accounting policies
|
1. |
IFRS 17 Insurance Contracts
|
2. |
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
|
3. |
Definition of Accounting Estimates – Amendments to IAS 8
|
4. |
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
|
F - 12
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
F - 13
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
a. | In February 2023, the Company’s board of directors approved for the first time the grant of RSU to its employees, with vesting period of 4 years - first year cliff and equal quarterly vesting thereafter. No RSUs were vested during the period. |
b. |
On April 23, 2023, the Company and FP entered into the Waiver and Second Amendment to the Credit Agreement (the “Amendment”), which, among other things, (i) provided a waiver of certain defaults or potential defaults, (ii)
|
c. |
On June 5, 2023, the Company received a $
|
d. |
The Company accounted for the modified loan as a derecognition of the existing loan and recognition of the modified loan at fair value with any differences as finance expenses. The finance expenses resulted from the modification amounted to $ |
F - 14
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
a. |
Transactions with related parties
|
|
For the period ended
June 30
|
|||||||
|
2023
|
2022
|
||||||
Revenues from iDirect (*)
|
|
|
b. |
Outstanding balances with related parties
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
Assets
|
||||||||
Contract assets (Jet Talk)
|
|
|
||||||
Jet Talk
|
|
|
||||||
Total Assets
|
|
|
||||||
Liabilities
|
||||||||
Raysat Israel Ltd.
|
|
|
||||||
Ilan Gat Engineers Ltd
|
|
|
||||||
Management Bonus Accrued
|
|
|
||||||
Jet Talk
|
|
|
||||||
Total Liabilities
|
|
|
F - 15
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
a. |
Fair value of financial instruments measured at fair value on a periodic basis
|
Level
|
June 30,
2023
|
December 31,
2022
|
||||||||||
Financial Assets:
|
||||||||||||
Derivative FPA (*)
|
3
|
|
|
|||||||||
Total
|
|
|
||||||||||
Financial Liabilities:
|
||||||||||||
Warrants
|
3
|
|
|
|||||||||
SPAC Public Warrants
|
1
|
|
|
|||||||||
SPAC Private Warrants
|
2
|
|
|
|||||||||
Price Adjustment shares
|
3
|
|
|
|||||||||
Derivative FPA (*)
|
3
|
|
|
|||||||||
Total
|
|
|
b. |
Classification of financial instruments by fair value hierarchy:
|
Warrants
Level 3
|
||||
For the period ended
June 30, 2022
|
||||
Balance at January 1, 2022
|
|
|||
Changes in fair value recognized in finance expenses
|
(
|
)
|
||
Balance at June 30, 2022
|
|
SPAC Warrants
Level 1
|
||||
For the period ended
June 30, 2023
|
||||
Balance at January 1, 2023
|
(
|
)
|
||
Changes in fair value recognized in finance expenses
|
|
|||
Balance at June 30, 2023
|
(
|
)
|
F - 16
SATIXFY COMMUNICATIONS LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
(in thousands of USD)
PAS
Level 3
|
||||
For the period ended
June 30, 2023
|
||||
Balance at January 1, 2023
|
(
|
)
|
||
Changes in fair value recognized in finance expenses
|
|
|||
Balance at June 30, 2023
|
(
|
)
|
Derivatives FPA (*)
Level 3
|
||||
For the period ended
June 30, 2023
|
||||
Balance at January 1, 2023
|
|
|||
Cash received
|
(
|
)
|
||
Changes in fair value recognized in finance expenses
|
(
|
)
|
||
Balance at June 30, 2023
|
(
|
)
|
The Company entered into the Forward Purchase Transaction with the Seller. Pursuant to the Forward Purchase Agreement, the Seller thereunder purchased, through a broker in the open market shares and will sell the shares under certain conditions. Vellar will pay directly, out of the funds held in Endurance’s trust account, approximately $
F - 17