Actelis Networks Reports Q3 2024 Results: 200% Quarterly Revenue Growth; 46% Year-to-Date Growth Reaching $6.7 Million
Actelis Networks (NASDAQ: ASNS) reported strong Q3 2024 results with revenue reaching $2.54 million, a 200% year-over-year increase. Nine-month revenue grew 46% to $6.7 million. Gross margin improved significantly to 69% in Q3 2024, up from 27% in Q3 2023. Operating expenses decreased by 12% in Q3 2024, while net loss narrowed by 41% to $511,000. The company secured nearly $5 million in funding in June 2024, with shareholders' equity reaching $2.8 million. Notable achievements include a $1.4 million two-year software and services contract renewal with a major North American customer and continued expansion in transportation and infrastructure projects across the US and Europe.
Actelis Networks (NASDAQ: ASNS) ha riportato risultati solidi nel terzo trimestre del 2024, con ricavi che hanno raggiunto i 2,54 milioni di dollari, con un incremento del 200% rispetto allo stesso periodo dell'anno precedente. I ricavi nei nove mesi sono aumentati del 46%, raggiungendo i 6,7 milioni di dollari. Il margine lordo è migliorato significativamente, passando al 69% nel terzo trimestre del 2024, rispetto al 27% dello stesso trimestre del 2023. Le spese operative sono diminuite del 12% nel terzo trimestre del 2024, mentre la perdita netta si è ridotta del 41%, attestandosi a 511.000 dollari. L'azienda ha ottenuto quasi 5 milioni di dollari di finanziamenti a giugno 2024, con il patrimonio netto degli azionisti che ha raggiunto i 2,8 milioni di dollari. Tra i risultati significativi si annoverano il rinnovo di un contratto biennale per software e servizi del valore di 1,4 milioni di dollari con un importante cliente nordamericano e l'espansione continua nei progetti di trasporto e infrastruttura negli Stati Uniti e in Europa.
Actelis Networks (NASDAQ: ASNS) reportó resultados sólidos en el tercer trimestre de 2024, con ingresos que alcanzaron los 2,54 millones de dólares, un aumento del 200% en comparación con el mismo período del año anterior. Los ingresos de nueve meses crecieron un 46%, alcanzando los 6,7 millones de dólares. El margen bruto mejoró significativamente al 69% en el tercer trimestre de 2024, en comparación con el 27% en el tercer trimestre de 2023. Los gastos operativos disminuyeron un 12% en el tercer trimestre de 2024, mientras que la pérdida neta se redujo en un 41%, quedando en 511,000 dólares. La compañía aseguró casi 5 millones de dólares en financiamiento en junio de 2024, con el capital contable de los accionistas alcanzando los 2,8 millones de dólares. Los logros destacables incluyen la renovación de un contrato de software y servicios por 1,4 millones de dólares durante dos años con un importante cliente de América del Norte y la continua expansión en proyectos de transporte e infraestructura en los Estados Unidos y Europa.
Actelis Networks (NASDAQ: ASNS)는 2024년 3분기 실적이 강력하게 보고되었으며, 수익이 254만 달러에 달하고, 전년 대비 200% 증가했습니다. 9개월 동안의 수익은 46% 증가하여 670만 달러에 도달했습니다. 2024년 3분기의 총 이익률은 2023년 3분기 27%에서 69%로 크게 개선되었습니다. 운영 비용은 2024년 3분기에 12% 감소하였고, 순손실은 41% 축소되어 51만 1천 달러로 줄었습니다. 회사는 2024년 6월에 거의 500만 달러의 자금을 확보하였으며, 주주의 자본금이 280만 달러에 도달했습니다. 주목할만한 성과로는 북미의 주요 고객과 함께하는 140만 달러 규모의 2년 소프트웨어 및 서비스 계약 갱신과 미국 및 유럽 전역의 교통 및 인프라 프로젝트에서의 지속적인 확장이 포함됩니다.
Actelis Networks (NASDAQ: ASNS) a publié des résultats solides pour le troisième trimestre 2024, avec des revenus atteignant 2,54 millions de dollars, soit une augmentation de 200 % par rapport à l'année précédente. Les revenus sur neuf mois ont augmenté de 46 %, atteignant 6,7 millions de dollars. La marge brute s'est considérablement améliorée pour atteindre 69 % au troisième trimestre 2024, contre 27 % au troisième trimestre 2023. Les dépenses d'exploitation ont diminué de 12 % au troisième trimestre 2024, tandis que la perte nette a diminué de 41 % pour s'établir à 511 000 dollars. L'entreprise a sécurisé près de 5 millions de dollars de financement en juin 2024, avec des capitaux propres des actionnaires atteignant 2,8 millions de dollars. Parmi les réalisations notables figure le renouvellement d'un contrat de logiciels et de services de 1,4 million de dollars sur deux ans avec un important client nord-américain et l'expansion continue dans des projets de transport et d'infrastructure aux États-Unis et en Europe.
Actelis Networks (NASDAQ: ASNS) berichtete über starke Ergebnisse im dritten Quartal 2024, mit Einnahmen von 2,54 Millionen Dollar, was einem Anstieg von 200% im Vergleich zum Vorjahr entspricht. Die Einnahmen in den ersten neun Monaten stiegen um 46% auf 6,7 Millionen Dollar. Die Bruttomarge verbesserte sich im dritten Quartal 2024 erheblich auf 69%, verglichen mit 27% im dritten Quartal 2023. Die Betriebsausgaben sanken im dritten Quartal 2024 um 12%, während der Nettoverlust um 41% auf 511.000 Dollar zurückging. Das Unternehmen sicherte sich im Juni 2024 nahezu 5 Millionen Dollar an Finanzierung, wobei das Eigenkapital der Aktionäre 2,8 Millionen Dollar erreichte. Zu den bemerkenswerten Erfolgen zählen die Verlängerung eines zwei-jährigen Software- und Dienstleistungsvertrags im Wert von 1,4 Millionen Dollar mit einem wichtigen nordamerikanischen Kunden sowie die fortgesetzte Expansion in Verkehrs- und Infrastrukturprojekten in den USA und Europa.
- 200% year-over-year revenue growth in Q3 2024 to $2.54 million
- 46% revenue growth for nine months to $6.7 million
- Gross margin improvement from 27% to 69% in Q3 2024
- Operating expenses reduced by 12% in Q3 2024
- Net loss decreased by 41% to $511,000
- $5 million funding secured in June 2024
- $1.4 million contract renewal with major customer
- Continuing net losses despite improvements
- Decrease of $1.3 million in revenues from Asia Pacific and EMEA regions
- Implementation of ATM facility potentially leading to future dilution
Insights
The Q3 results demonstrate remarkable financial improvement across key metrics. Revenue surged 200% year-over-year to
Cost optimization efforts are yielding results, with operating expenses down
Actelis' strategic pivot towards cyber-hardened networking solutions for IoT applications is gaining traction in critical infrastructure sectors. The expansion into Intelligent Transportation Systems, military installations and European infrastructure projects demonstrates strong market validation. The new AI-powered 'Cyber Aware Networking' initiative positions the company well in the growing IoT security market.
The termination of the Quality Industrial Corp. deal shows disciplined M&A approach, while the successful contract renewals indicate strong customer retention. The company's ability to maintain operations despite regional tensions adds resilience to its business model.
Strong revenue growth and a significant increase in gross margin from
FREMONT, Calif., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Actelis Networks, Inc. (NASDAQ: ASNS) (“Actelis” or the “Company”), a market leader in cyber-hardened, rapid deployment networking solutions for wide area IoT applications, today reported financial results for the fiscal third quarter ended September 30, 2024.
Financial Highlights for the Third Quarter and nine months ending September 30:
- Robust Revenue Growth, Surpassing Full-Year 2023 in Nine Months: Revenue reached
$2.54 million in Q3 2024, a200% year-over-year increase from$0.85 million in Q3 2023. For the nine months ending September 30, 2024, revenue grew to$6.7 million —up46% from the prior-year period—driven by accelerated execution of large contracts, including$1.1 million of software and support revenues out of a two-year software and services renewal with one of our largest customers. - Significant Improvement in Gross Margin: Gross margin soared to
$1.74 million , or69% , in Q3 2024, a substantial increase from$0.2 million , or27% , in the same quarter last year. This boost was driven by an increase in revenues driving lower indirect costs as a percentage of revenues, and the significant software component of revenue. For the nine months ending September 30, 2024, gross margin increased to$3.9 million , or58% , up from$1.55 million , or34% , in the prior-year period. This substantial improvement is driven by higher software and services revenue and other high margin sales, along with stable, low indirect costs. - Continued Reduction in Operating Expenses: Operating expenses continued their downward trend, totaling
$2.0 million in Q3-2024, a12% reduction compared to the same quarter last year. For the nine months ending September 30, 2024, operating expenses reached$6.0 million , down17% , or$1.22 million , from the prior-year period, aligning with the company’s cost reduction commitment made last year. - Significant Reduction in Net Loss and Non-GAAP Adjusted EBITDA: Net loss narrowed substantially to
$511,000 in Q3 2024, a41% decrease compared to the prior-year quarter, and by41% to$2.57 million for the nine months ending September 30, 2024. Non-GAAP Adjusted EBITDA improved sharply, down87% to$233,000 in Q3 2024, and down56% to$2.0 million for the nine-month period. These improvements reflect the successful impact of increased revenue, gross margin growth, and ongoing operating cost reductions. - Liquidity and Nasdaq Compliance Secured: With nearly
$5 million raised in June 2024 and a significant reduction in net loss, shareholders’ equity reached$2.8 million as of September 30, 2024. In September, the Company also filed a shelf prospectus and now has an effective At-The-Market (ATM) facility in place.
“Our third-quarter results underscore Actelis’ strong financial performance and continued growth trajectory,” said Tuvia Barlev, Chairman and CEO of Actelis. “With robust revenue growth, a dramatic increase in gross margins, and disciplined cost management, we are achieving the financial resilience needed to support our expanding role in critical sectors. This progress reflects the value of our cyber-hardened, rapid-deployment networking solutions and our commitment to driving sustainable long-term growth for our shareholders.”
Recent Company Highlights
- Actelis continues to gain strong traction with significant contract renewals and new orders across strategic markets. In Q3 2024, Actelis secured the 1.4 million renewal of a two-year software and services contract with one of its largest North American customers out of which recognized 1.1 million in Q3, underscoring the long-standing trust and value Actelis provides while further enhancing our recurring revenue base.
- The Company also received substantial new orders across diverse sectors, solidifying Actelis' position as a leading provider of cyber-hardened, rapid-deployment networking solutions. Key projects include modernization initiatives for Intelligent Transportation Systems (ITS) in major U.S. cities and counties, deployments for U.S. military bases, and expansion into European markets like Italy’s national highway infrastructure and German utilities.
- Recent follow-on orders with the U.S. Department of Transportation and municipalities in Germany demonstrate Actelis’ capability to serve critical infrastructure, transportation, and government applications with its secure, hybrid-fiber technology.
- Actelis’ expense reduction program continues to yield positive results, with operating expenses for the nine months ending June 30, 2024, reduced by
17% year-over-year, aligning with our strategic cost structure optimization plan, and preparing the Company for a strong trajectory towards 2025. - Actelis continues to advance its ‘Cyber Aware Networking’ initiative, an AI-powered SaaS layer designed to enhance the security of IoT networks by providing comprehensive threat monitoring and automated response capabilities directly at the network edge. As part of this initiative, and as reported on August 19, 2024, the Company is collaborating with an advanced cybersecurity provider to further develop and deliver these capabilities.
- Following extensive due diligence, Actelis issued a termination notice on October 12, 2024, for its agreement with Quality Industrial Corp., concluding that the deal did not align with our objective to maximize shareholder value.
- Despite ongoing tensions and conflicts in the Middle East, Actelis’ operations remain unaffected. We are closely monitoring the situation and are prepared to make necessary adjustments as events unfold.
“Our third quarter concluded positively, meeting and exceeding key expectations,” noted Tuvia Barlev, Chairman and CEO of Actelis. “Our unique ability to deliver fiber-grade hardware, software, and services across key verticals—such as Intelligent Transportation, Smart Cities, Federal and Military agencies, and Multi-Dwelling Units—positions us well to maximize revenue growth and advance towards profitability. Looking ahead, we remain focused on driving organic growth while also exploring strategic opportunities that align with our strengths and enhance the value we bring to our customers.”
Fiscal Third Quarter and First nine months 2024 Financial Results:
- Revenues: Q3 2024 revenues were
$2.54 million , reflecting a200% year-over-year increase from$0.85 million in Q3 2023. The increase from the corresponding period was primarily attributable to an increase of$1.4 million of revenues generated from North America driven by volume increase and a renewal of a service and software contract and an increase of$0.3 million of revenues generated from Asia Pacific and Europe, the Middle East and Africa driven by volume increase.
For the nine months ended September 30, 2024, revenues were$6.7 million , compared to$4.6 million for the nine months ended September 30, 2023. The increase from the corresponding period was primarily attributable to an increase of$3.4 million in revenues generated from North America associated with volume increase and a renewal of a service and software contract offset by decrease of$1.3 million in revenues generated from Asia Pacific and Europe, the Middle East and Africa associated with completed projects in the prior year period.
- Cost of Revenues: Cost of revenues for Q3 2024 was
$0.8 million , compared to$0.6 million in Q3 2023. The increase from the corresponding period was primarily attributable to the increase in revenues as well as change in the product mix.
For the nine months ended September 30, 2024, the cost of revenues was$2.8 million , compared to$3.0 million for the nine months ended September 30, 2023. The decrease from the corresponding period was primarily attributable to the change in regional mix of revenue of an increase in North America revenues, which are more profitable, and a decrease in Europe, Middle East and Africa revenues which are less profitable
- Gross Profit: Gross profit for Q3 2024 was
$1.7 million , up from$0.23 in Q3 2023. For the nine months ended September 30, 2024, gross profit reached$3.9 million , compared to$1.5 million in the nine months ended September 30, 2023. - Research and Development Expenses: R&D expenses for Q3 2024 were
$0.5 , down from$0.7 in Q3 2023. For the nine months ended September 30, 2024, R&D expenses were$1.8 million , compared to$2.1 million in the same period last year. The decrease is primarily attributable to cost reduction measures taken. - Sales and Marketing Expenses: Sales and marketing expenses for Q3 2024 were
$0.72 , compared to$0.69 in Q3 2023. For the nine months ended September 30, 2024, these expenses totaled$2.0 million , down from$2.3 million in the nine months ended September 30, 2023.The decrease was mainly due to cost reduction measures taken. - General and Administrative Expenses: G&A expenses were
$0.79 in Q3 2024, down from$0.97 in Q3 2023. For the nine months ended September 30, 2024, G&A expenses were$2.4 million , compared to$2.80 million for the same period last year. The decrease was mainly due to cost reduction measures taken. - Other Income: Other Income was
$0 in Q3 2024. For the nine months ended September 30, 2024, Other Income was$163,000 driven by a government grant from the state of Israel associated with the Swords of Iron war. - Operating Profit/Loss: Operating profit for Q3 2024 was
$0.32 million , compared to an operating loss of$2.13 million in Q3 2023. For the nine months ended September 30, 2024, the operating loss was reduced to$2.12 million , down from$5.70 million in the nine months ended September 30, 2023. The decrease was mainly due to the increase in revenues, improved gross margin due to regional revenue mix, and cost reduction measures taken, reducing operating expenses. - Financial Income/(expense) and Interest Expenses: Our financial income, net was
$52,000 and our interest expense was$0.2 million for the three months ended September 30, 2024 compared to financial income, net of$1.4 million and$0.2 million interest expenses for the three months ended September 30, 2023. The increase is mainly due to financial income in the prior year from bank deposits and exchange rate differences not repeated in current period.
Our financial income, net was$138,000 and our interest expense was$0.6 million for the nine months ended September 30, 2024 compared to financial income, net of$1.9 million and interest expense of$0.5 million interest expenses for the nine months ended September 30, 2023. The increase is mainly due to financial income in the prior year from bank deposits and exchange rate differences not repeated in current period.
- Net Comprehensive Profit/(Loss): Net comprehensive Loss for Q3 2024 was
$0.51 million , a significant turnaround from a net loss of$0.87 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was$2.57 million , compared to a net loss of$4.35 million in the nine months ended September 30, 2023. This decrease was primarily due to the increase in revenues, improved gross margin due to regional revenue mix, and cost reduction measures taken, reducing operating expenses, partially offset by financial income in the prior year not repeating itself. - Non-GAAP EBITDA: Non-GAAP EBITDA loss was
$233,000 in Q3-2024, compared to a non-GAAP EBITDA loss of$1.76 million in the year ago period, driven by increased revenue, better gross margin and reduced operating expenses. For the nine months ended September 30, 2024, non-GAAP EBITDA loss was$2.0 million , from$4.6 million in the year ago period. This decrease was primarily due to the increase in revenues, improved gross margin due to regional revenue mix, and cost reduction measures taken, reducing operating expenses.
About Actelis Networks, Inc.
Actelis Networks, Inc. (NASDAQ: ASNS) is a market leader in hybrid fiber-copper, cyber-hardened networking solutions for rapid deployment in wide-area IoT applications, including government, ITS, military, utility, rail, telecom, and campus networks. Actelis’ innovative portfolio offers fiber-grade performance with the flexibility and cost-efficiency of hybrid fiber-copper networks. Through its "Cyber Aware Networking" initiative, Actelis also provides AI-based cyber monitoring and protection for all edge devices, enhancing network security and resilience. For more information, please visit www.actelis.com.
Use of Non-GAAP Financial Information
Non-GAAP Adjusted EBITDA, and backlog of open orders are Non-GAAP financial measures. In addition to reporting financial results in accordance with GAAP, we provide Non-GAAP operating results adjusted for certain items, including: financial expenses, which are interest, financial instrument fair value adjustments, exchange rate differences of assets and liabilities, stock based compensation expenses, depreciation and amortization expense, tax expense, and impact of development expenses ahead of product launch. We adjust for the items listed above and show Non-GAAP financial measures in all periods presented, unless the impact is clearly immaterial to our financial statements. When we calculate the tax effect of the adjustments, we include all current and deferred income tax expense commensurate with the adjusted measure of pre-tax profitability.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov.
Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Actelis is not responsible for the contents of third-party websites.
Media Contact:
Sean Renn
Global VP Marketing & Communications
srenn@actelis.com
Investor Contact:
ARX | Capital Markets Advisors
North American Equities Desk
actelis@arxadvisory.com
-Financial Tables to Follow-
| ACTELIS NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (U. S. dollars in thousands) | |||
| September 30, 2024 | December 31, 2023 | ||
| Assets | |||
| CURRENT ASSETS: | |||
| Cash and cash equivalents | 2,241 | 620 | |
| Short term deposits | - | 197 | |
| Restricted cash equivalents | 300 | 1,565 | |
| Trade receivables, net of allowance for credit losses of | 1,828 | 664 | |
| Inventories | 2,372 | 2,526 | |
| Prepaid expenses and other current assets, net of allowance for doubtful debts of | 481 | 340 | |
| TOTAL CURRENT ASSETS | 7,222 | 5,912 | |
| NON-CURRENT ASSETS: | |||
| Property and equipment, net | 52 | 61 | |
| Prepaid expenses | 592 | 592 | |
| Restricted cash and cash equivalents | - | 3,330 | |
| Restricted bank deposits | 91 | 94 | |
| Severance pay fund | 200 | 238 | |
| Operating lease right of use assets | 515 | 918 | |
| Long term deposits | 78 | 78 | |
| TOTAL NON-CURRENT ASSETS | 1,528 | 5,311 | |
| TOTAL ASSETS | 8,750 | 11,223 | |
| ACTELIS NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (continued) UNAUDITED (U. S. dollars in thousands) | ||||
| September 30, 2024 | December 31, 2023 | |||
| Liabilities, Mezzanine Equity and shareholders’ equity | ||||
| CURRENT LIABILITIES: | ||||
| Credit line | 927 | - | ||
| Current maturities of long-term loans | - | 1,335 | ||
| Trade payables | 893 | 1,769 | ||
| Deferred revenues | 277 | 389 | ||
| Employee and employee-related obligations | 760 | 737 | ||
| Accrued royalties | 1,033 | 1,062 | ||
| Current maturities of operating lease liabilities | 450 | 498 | ||
| Other current liabilities | 735 | 1,122 | ||
| TOTAL CURRENT LIABILITIES | 5,075 | 6,912 | ||
| NON-CURRENT LIABILITIES: | ||||
| Long-term loan, net of current maturities | 150 | 3,154 | ||
| Deferred revenues | 160 | 71 | ||
| Operating lease liabilities | 62 | 405 | ||
| Accrued severance | 226 | 270 | ||
| Other long-term liabilities | 16 | 23 | ||
| TOTAL NON-CURRENT LIABILITIES | 614 | 3,923 | ||
| TOTAL LIABILITIES | 5,689 | 10,835 | ||
| COMMITMENTS AND CONTINGENCIES (Note 10) | ||||
| MEZZANINE EQUITY | ||||
| Redeemable convertible preferred stock - | - | - | ||
| WARRANTS TO PLACEMENT AGENT (Note 7) | 228 | 159 | ||
| SHAREHOLDERS' EQUITY : | ||||
| Common stock, | 1 | 1 | ||
| Non-voting common stock, | - | - | ||
| Additional paid-in capital | 45,095 | 39,916 | ||
| Accumulated deficit | (42,263 | ) | (39,688 | ) |
| TOTAL SHAREHOLDERS’ EQUITY | 2,833 | 229 | ||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | 8,750 | 11,223 | ||
| ACTELIS NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (U. S. dollars in thousands) | |||||||||||||||
| Nine months ended September 30, | Three months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| REVENUES | 6,698 | 4,589 | 2,541 | 845 | |||||||||||
| COST OF REVENUES | 2,792 | 3,043 | 798 | 619 | |||||||||||
| GROSS PROFIT | 3,906 | 1,546 | 1,743 | 226 | |||||||||||
| OPERATING EXPENSES: | |||||||||||||||
| Research and development expenses | 1,793 | 2,117 | 543 | 691 | |||||||||||
| Sales and marketing expenses | 2,001 | 2,332 | 727 | 691 | |||||||||||
| General and administrative expenses | 2,398 | 2,805 | 790 | 971 | |||||||||||
| Other income | (163 | ) | - | - | - | ||||||||||
| TOTAL OPERATING EXPENSES | 6,029 | 7,254 | 2,060 | 2,353 | |||||||||||
| OPERATING LOSS | (2,123 | ) | (5,708 | ) | (317 | ) | (2,127 | ) | |||||||
| Interest expense | (590 | ) | (512 | ) | (246 | ) | (161 | ) | |||||||
| Other Financial income, net | 138 | 1,865 | 52 | 1,421 | |||||||||||
| NET COMPREHENSIVE LOSS FOR THE PERIOD | (2,575 | ) | (4,355 | ) | (511 | ) | (867 | ) | |||||||
| Net loss per share attributable to common shareholders – basic and diluted | $ | (0.59 | ) | $ | (1.93 | ) | $ | (0.09 | ) | $ | (0.32 | ) | |||
| Weighted average number of common stocks used in computing net loss per share – basic and diluted | 4,429,738 | 2,254,235 | 6,014,548 | 2,685,626 | |||||||||||
Non-GAAP Financial Measures
| (U.S. dollars in thousands) | Three months Ended September 30, 2024 | Three months Ended September 30, 2023 | Nine months Ended September 30, 2024 | Nine months Ended September 30, 2023 | ||||||||||||
| Revenues | $ | 2,541 | $ | 845 | $ | 6,698 | $ | 4,589 | ||||||||
| GAAP net loss | (511 | ) | (867 | ) | (2,575 | ) | (4,355 | ) | ||||||||
| Interest Expense | 246 | 161 | 590 | 512 | ||||||||||||
| Other Financial expenses (income), net | (52 | ) | (1,421 | ) | (138 | ) | (1,865 | ) | ||||||||
| Tax Expense | 1 | 18 | 33 | 58 | ||||||||||||
| Fixed asset depreciation expense | 3 | 7 | 10 | 20 | ||||||||||||
| Stock based compensation | 80 | 106 | 259 | 298 | ||||||||||||
| Research and development, capitalization | - | 113 | - | 371 | ||||||||||||
| Other one-time costs and expenses (income) | - | 120 | (189 | ) | 343 | |||||||||||
| Non-GAAP Adjusted EBITDA | (233 | ) | (1,763 | ) | (2,010 | ) | (4,618 | ) | ||||||||
| GAAP net loss margin | (20.11 | )% | (102.60 | )% | (38.44 | )% | (94.90 | )% | ||||||||
| Adjusted EBITDA margin | (9.17 | )% | (208.64 | )% | (30.00 | )% | (100.63 | )% | ||||||||
| ACTELIS NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||
| Nine months ended September 30, | |||||
| 2024 | 2023 | ||||
| U.S. dollars in thousands | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
| Net loss for the period | (2,575 | ) | (4,355 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||
| Depreciation | 11 | 20 | |||
| Changes in fair value related to warrants to lenders and investors | - | (1,658 | ) | ||
| Warrant issuance costs | - | 223 | |||
| Inventories write-downs | 39 | 132 | |||
| Interest expenses | (56 | ) | - | ||
| Exchange rate differences | (58 | ) | (365 | ) | |
| Share-based compensation | 259 | 298 | |||
| Financial income from short and long term bank deposit | (11 | ) | (78 | ) | |
| Changes in operating assets and liabilities: | |||||
| Trade receivables | (1,164 | ) | 2,319 | ||
| Net change in operating lease assets and liabilities | 12 | 25 | |||
| Inventories | 115 | (1,651 | ) | ||
| Prepaid expenses and other current assets | (140 | ) | 62 | ||
| Long term prepaid expenses | - | (100 | ) | ||
| Trade payables | (875 | ) | 411 | ||
| Deferred revenues | (23 | ) | (262 | ) | |
| Other current liabilities | (350 | ) | (185 | ) | |
| Other long-term liabilities | 35 | (30 | ) | ||
| Net cash used in operating activities | (4,781 | ) | (5,194 | ) | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
| Short term deposits | 198 | 1,363 | |||
| Long term Restricted bank deposits | - | 75 | |||
| Long term deposits | - | (2 | ) | ||
| Purchase of property and equipment | (1 | ) | (6 | ) | |
| Net cash provided by investing activities | 197 | 1,430 | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
| Proceeds from exercise of options | 32 | 10 | |||
| Proceeds from issuance of common stocks, pre-funded warrants and warrants | * | 3,500 | |||
| Proceeds from issuance common stock, net of offering costs | 316 | - | |||
| Proceeds from credit lines with bank, net | 927 | - | |||
| Proceeds from Warrant inducement agreement | 5,248 | ||||
| Underwriting discounts and commissions and other offering costs | (668 | ) | (291 | ) | |
| Early repayment of long-term loan | (4,038 | ) | |||
| Repayment of long-term loan | (193 | ) | (583 | ) | |
| Repurchase of common stock | - | (50 | ) | ||
| Net cash provided by financing activities | 1,624 | 2,586 | |||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | (14 | ) | (12 | ) | |
| DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | (2,974 | ) | (1,190 | ) | |
| BALANCE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 5,515 | 4,279 | |||
| BALANCE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 2,541 | 3,089 | |||
* Represents an amount less than
FAQ
What was Actelis Networks (ASNS) revenue growth in Q3 2024?
How much did Actelis Networks (ASNS) improve its gross margin in Q3 2024?
What was ASNS's net loss in Q3 2024?
How much funding did Actelis Networks (ASNS) secure in June 2024?
