HERZLIYA, Israel, March 31, 2020 (GLOBE NEWSWIRE) -- Safe-T® Group Ltd. (Nasdaq, TASE: SFET), a provider of secure access solutions for on-premise and hybrid cloud environments, today announced its financial results for the fourth quarter and the full year ended December 31, 2019.
Revenues for the year ended December 31, 2019 totaled $3,284,000, an increase of 124% compared to $1,466,000 in the year ended December 31, 2018.
Revenues for the three-month period ended December 31, 2019 totaled $1,114,000, an increase of 141% compared to $463,000 in the three-month period ended December 31, 2018.
The Company’s cash balance as of December 31, 2019 was $4,341,000.
Shachar Daniel, Chief Executive Officer, commented on the results: “We are pleased to present a year of growth and expansion. This year we were able to show a reduction in overall expenses alongside a substantial increase in revenues, while we successfully changed our business model to a SaaS model. We invested great efforts in expanding our global presence, with new partners and customers in the United States and Europe. We are cautious with our outlook in light of the Coronavirus pandemic, especially because the economic implications are too uncertain to even speculate at this stage. However, as we provide cloud-based security solutions, our products enable and support the remote work environment that organizations require to successfully and securely ride through these challenging times as well as in the future and we look forward to bringing our efforts to fruition in the long-term.”
Recent Developments:
2019 Selected Highlights:
Fourth Quarter 2019 Capital-Related Highlights:
Financial results for the year ended December 31, 2019:
Financial results for the three months ended December 31, 2019:
The following table presents the reconciled effect of the non-cash expenses and one-time expenses on the Company’s net loss for the years and three-month periods ended December 31, 2019 and 2018:
For the Year Ended December 31, | For the Three-Month Period Ended December 31, | |||||||||||||||
(thousands of U.S. dollars) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net loss for the period | 12,998 | 11,753 | 11,292 | 3,231 | ||||||||||||
Issuance and acquisition costs | 790 | 517 | 602 | - | ||||||||||||
Amortization and impairment of intangible assets and goodwill | 2,105 | 276 | 1,588 | 75 | ||||||||||||
Share-based compensation | 454 | 381 | 109 | 66 | ||||||||||||
Finance liabilities at fair value | 2,596 | 1,891 | 7,022 | 818 | ||||||||||||
Total adjustment | 5,945 | 3,065 | 9,321 | 959 | ||||||||||||
Non-IFRS net loss | 7,053 | 8,688 | 1,971 | 2,272 | ||||||||||||
Balance Sheet Highlights
Use of Non-IFRS Financial Results
In addition to disclosing financial results calculated in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board, this press release contains non-IFRS financial measures of net loss for the periods presented that exclude the effect of share-based compensation expenses, amortization of intangible assets, non-cash issuance and acquisition expenses and the revaluation of finance liabilities at fair value. The Company’s management believes the non-IFRS financial information provided in this release is useful to investors’ understanding and assessment of the Company’s ongoing operations. Management also uses both IFRS and non-IFRS information in evaluating and operating its business internally, and as such deemed it important to provide this information to investors. The non-IFRS financial measures disclosed by the Company should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with IFRS, and the financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated. Investors are encouraged to review the reconciliations of these non-IFRS measures to their most directly comparable IFRS financial measures provided in the financial statement tables herein.
About Safe-T® Group Ltd.
Safe-T Group Ltd. (Nasdaq, TASE: SFET) is a provider of Zero Trust Access solutions which mitigate attacks on enterprises’ business-critical services and sensitive data, while ensuring uninterrupted business continuity. Safe-T’s cloud and on-premises solutions ensure that an organization’s access use cases, whether into the organization or from the organization out to the internet, are secured according to the “validate first, access later” philosophy of Zero Trust. This means that no one is trusted by default from inside or outside the network, and verification is required from everyone trying to gain access to resources on the network or in the cloud.
Safe-T’s wide range of access solutions reduce organizations’ attack surface and improve their ability to defend against modern cyberthreats. As an additional layer of security, our integrated business-grade global proxy solution cloud service enables smooth and efficient traffic flow, interruption-free service, unlimited concurrent connections, instant scaling and simple integration with our services.
With Safe-T’s patented reverse-access technology and proprietary routing technology, organizations of all size and type can secure their data, services and networks against internal and external threats.
Safe-T’s SDP solution on AWS Marketplace is available here.
For more information about Safe-T, visit www.safe-t.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal 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. For example, Safe-T is using forward-looking statements in this press release when we address our outlook for the future and long-term expectations. Because such statements deal with future events and are based on Safe-T’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Safe-T could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Safe-T’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 31, 2020, and in any subsequent filings with the SEC. Except as otherwise required by law, Safe-T undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 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. Safe-T is not responsible for the contents of third-party websites.
CONTACT INVESTOR RELATIONS:
Michal Efraty
+972-(0)52-3044404
michal@efraty.com
Consolidated Statements of Financial Position (In thousands of USD) | |||||||||
December 31, | |||||||||
2019 | 2018 | ||||||||
(Audited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 4,341 | 3,717 | |||||||
Restricted deposits | 29 | 104 | |||||||
Trade receivables | 680 | 854 | |||||||
Other receivables | 470 | 231 | |||||||
Total current assets | 5,520 | 4,906 | |||||||
Non-current assets: | |||||||||
Long-term restricted deposits | 82 | - | |||||||
Long-term deposit | 44 | - | |||||||
Property, plant and equipment, net | 266 | 143 | |||||||
Right of use assets | 441 | - | |||||||
Goodwill | 6,877 | 523 | |||||||
Intangible assets, net | 4,607 | 796 | |||||||
Total non-current assets | 12,317 | 1,462 | |||||||
Total assets | 17,837 | 6,368 | |||||||
Liabilities and equity | |||||||||
Current liabilities: | |||||||||
Short-term loan | 4 | - | |||||||
Trade payables | 237 | 103 | |||||||
Other payables | 1,553 | 951 | |||||||
Contract liabilities | 562 | 495 | |||||||
Contingent consideration | 2,170 | - | |||||||
Convertible Debentures | 7,151 | - | |||||||
Derivative financial instruments | 1,637 | 729* | |||||||
Short-term lease liabilities | 184 | - | |||||||
Liability in respect of the Israeli Innovation Authority | 8 | 49 | |||||||
Total current liabilities | 13,506 | 1,598 | |||||||
Non-current liabilities: | |||||||||
Contract liabilities | 82 | 249 | |||||||
Long-term lease liabilities | 324 | - | |||||||
Deferred tax liabilities | 1,040 | - | |||||||
Liability in respect of the Israeli Innovation Authority | 108 | 82 | |||||||
Total non-current liabilities | 1,554 | 331 | |||||||
Total liabilities | 15,060 | 2,658 | |||||||
Equity: | |||||||||
Ordinary shares | - | - | |||||||
Share premium | 52,394 | 41,594 | |||||||
Other equity reserves | 13,070 | 11,805 | |||||||
Accumulated deficit | (62,687 | ) | (49,689 | ) | |||||
Total equity | 2,777 | 3,710 | |||||||
Total liabilities and equity | 17,837 | 6,368 |
*Early adoption of "Classification of Liabilities as Current or Non-Current" (Amendments to IAS 1).
Consolidated Statements of Profit or Loss (In thousands of USD, except per share amounts) | ||||||||||||||||
For the Year Ended December 31, | For the Three-Month Period Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Audited) | (Audited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenues | 3,284 | 1,466 | 1,114 | 463 | ||||||||||||
Cost of revenues | 1,889 | 791 | 869 | 184 | ||||||||||||
Gross profit | 1,395 | 675 | 245 | 279 | ||||||||||||
Research and development expenses | 2,485 | 2,414 | 549 | 777 | ||||||||||||
Sales and marketing expenses | 3,783 | 5,542 | 1,096 | 1,273 | ||||||||||||
General and administrative expenses | 3,757 | 1,925 | 1,300 | 561 | ||||||||||||
Impairment of goodwill | 1,002 | - | 1,002 | - | ||||||||||||
Contingent consideration measurement | 159 | - | (64 | ) | - | |||||||||||
Operating expenses | (11,186 | ) | (9,881 | ) | (3,883 | ) | (2,611 | ) | ||||||||
Operating loss | (9,791 | ) | (9,206 | ) | (3,638 | ) | (2,332 | ) | ||||||||
Finance expenses, net | (3,184 | ) | (2,541 | ) | (7,599 | ) | (899 | ) | ||||||||
Taxes on income | (23 | ) | (6 | ) | (55 | ) | - | |||||||||
Net loss | (12,998 | ) | (11,753 | ) | (11,292 | ) | (3,231 | ) | ||||||||
Basic loss per share | (0.96 | ) | (6.66 | ) | (0.42 | ) | (1.00 | ) | ||||||||
Diluted loss per share | (1.03 | ) | (6.99 | ) | (0.48 | ) | (1.00 | ) |
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