Exhibit 99.1
HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
Unaudited | Audited | |||||||
USD in thousands | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | 2,727 | 3,994 | ||||||
Restricted cash | 1,177 | 59 | ||||||
Restricted bank deposit | 372 | 1,516 | ||||||
Trade receivables, net | 13,926 | 24,057 | ||||||
Other accounts receivable | 3,957 | 1,672 | ||||||
Inventories | 904 | 1,900 | ||||||
23,063 | 33,198 | |||||||
NON-CURRENT ASSETS: | ||||||||
Long-term receivables | - | 872 | ||||||
Long-term restricted deposit | 2,835 | 3,002 | ||||||
Property, plant and equipment | 1,253 | 1,314 | ||||||
Right-of-use assets | 5,728 | 6,507 | ||||||
Goodwill | 9,685 | 13,702 | ||||||
Intangible assets | 10,255 | 16,198 | ||||||
29,756 | 41,595 | |||||||
52,819 | 74,793 |
HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
June 30, | December 31, | |||||||||||
2023 | 2022 | |||||||||||
Unaudited | Audited | |||||||||||
USD in thousands | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Short term loans | 22,948 | 13,432 | ||||||||||
Trade payables | 11,284 | 13,771 | ||||||||||
Current maturities of lease liabilities | 1,390 | 1,472 | ||||||||||
Current maturities of other liabilities | 4,978 | 3,839 | ||||||||||
Other accounts payable | 26,609 | 25,322 | ||||||||||
67,209 | 57,836 | |||||||||||
NON-CURRENT LIABILITIES: | ||||||||||||
Long term liabilities | 761 | 887 | ||||||||||
Warrant liabilities | 7,531 | - | ||||||||||
Conversion components | 9,834 | - | ||||||||||
Other long term liabilities | 629 | 1,064 | ||||||||||
Lease liabilities | 4,321 | 4,995 | ||||||||||
Deferred tax liabilities | 153 | 161 | ||||||||||
Net employee defined benefit liabilities | 969 | 1,040 | ||||||||||
24,198 | 8,147 | |||||||||||
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY: | ||||||||||||
Share capital and premium | 96,986 | 81,620 | ||||||||||
Share options | 10,918 | 10,367 | ||||||||||
Treasury shares | (1,230 | ) | (1,230 | ) | ||||||||
Other reserves | 19,946 | 14,698 | ||||||||||
Accumulated deficit | (168,708 | ) | (99,042 | ) | ||||||||
(42,088 | ) | 6,413 | ||||||||||
Non-controlling interests | 3,500 | 2,397 | ||||||||||
Total equity | (38,588 | ) | 8,810 | |||||||||
52,819 | 74,793 |
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
Six months ended | ||||||||
2023 | 2022 | |||||||
Unaudited | ||||||||
USD in thousands (except per share data) | ||||||||
Revenues | 30,712 | 37,418 | ||||||
Cost of revenues | 31,718 | 33,399 | ||||||
Gross profit | (1,006 | ) | 4,019 | |||||
Research and development expenses, net | 2,759 | 2,810 | ||||||
Selling and marketing expenses | 4,866 | 4,071 | ||||||
General and administrative expenses | 36,066 | 16,883 | ||||||
Other expenses | 18,442 | - | ||||||
Operating loss | (63,139 | ) | (19,745 | ) | ||||
Finance expenses | (7,403 | ) | (151 | ) | ||||
Finance income | 1,866 | 59 | ||||||
Loss before taxes on income | (68,676 | ) | (19,837 | ) | ||||
Taxes on income | - | 394 | ||||||
Net loss | (68,676 | ) | (20,231 | ) | ||||
Attributable to: | ||||||||
Equity holders of the Company | (69,666 | ) | (21,441 | ) | ||||
Non-controlling interests | 990 | 1,210 | ||||||
(68,676 | ) | (20,231 | ) | |||||
Net loss per share attributable to equity holders of the Company (USD): | ||||||||
Basic and diluted net loss per share | (7.7 | )*) | (2.6 | )*) |
*) | Restated due to accounting’s reverse splits entry. |
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six month ended June 30, | ||||||||
2023 | 2022 | |||||||
Unaudited | ||||||||
USD in thousands | ||||||||
Net loss | (68,676 | ) | (20,231 | ) | ||||
Other comprehensive loss, net of taxes: | ||||||||
Amounts that will not be reclassified subsequently to profit or loss: | ||||||||
Foreign currency translation loss from functional currency to presentation currency | 1,693 | (7,026 | ) | |||||
Total other comprehensive loss | 1,693 | (7,026 | ) | |||||
Total comprehensive loss | (66,983 | ) | (27,257 | ) | ||||
Attributable to: | ||||||||
Equity holders of the Company | (68,086 | ) | (28,329 | ) | ||||
Non-controlling interests | 1,103 | 1,072 | ||||||
(66,983 | ) | (27,257 | ) |
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||||||||||
Share | Treasury shares | Share options | Warrants payable | Reserve for share-based payment transactions | Reserve for remeasurement of defined benefit plan | Foreign currency translation adjustments | Accumulated deficit | Total | Non-controlling interests | Total | ||||||||||||||||||||||||||||||||||
USD in thousands | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2023 | 81,620 | (1,230 | ) | 10,291 | 76 | 18,172 | (762 | ) | (2,712 | ) | (99,042 | ) | 6,413 | 2,397 | 8,810 | |||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | - | - | (69,666 | ) | (69,666 | ) | 990 | (68,676 | ) | ||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | - | 1,580 | - | 1,580 | 113 | 1,693 | |||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | - | - | - | - | - | - | 1,580 | (69,666 | ) | (68,086 | ) | 1,103 | (66,983 | ) | ||||||||||||||||||||||||||||||
Exercise of warrants and option | 2,923 | - | (52 | ) | - | (804 | ) | - | - | - | 2,067 | - | 2,067 | |||||||||||||||||||||||||||||||
Issuance of Ordinary shares, net in connection with the closing of the RNER Transaction | 2,591 | - | - | - | - | - | - | - | 2,591 | - | 2,591 | |||||||||||||||||||||||||||||||||
Share listing expenses | 6,788 | - | - | - | - | - | - | - | 6,788 | - | 6,788 | |||||||||||||||||||||||||||||||||
Reclassification of liabilities to equity upon issuing of shares | 1,494 | - | 679 | (76 | ) | - | - | - | - | 2,097 | - | 2,097 | ||||||||||||||||||||||||||||||||
Issuance of Ordinary shares in connection with ELOC agreement | 1,570 | - | - | - | - | - | - | - | 1,570 | - | 1,570 | |||||||||||||||||||||||||||||||||
Cost of share-based payment | - | - | - | - | 4,472 | - | - | - | 4,472 | - | 4,472 | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | 96,986 | (1,230 | ) | 10,918 | - | 21,840 | (762 | ) | (1,132 | ) | (168,708 | ) | (42,088 | ) | 3,500 | (38,588 | ) |
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company | ||||||||||||||||||||||||||||||||||||||||
Share | Treasury shares | Share options | Reserve for share- based payment transactions | Reserve for re- measurement of defined benefit plan | Foreign currency translation adjustments | Accumulated deficit | Total | Non- controlling interests | Total equity | |||||||||||||||||||||||||||||||
USD in thousands | ||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | 70,762 | (1,230 | ) | 1,102 | 9,574 | (608 | ) | 2,634 | (17,447 | ) | 64,787 | 991 | 65,778 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | - | - | (21,441 | ) | (21,441 | ) | 1,210 | (20,231 | ) | |||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (6,888 | ) | - | (6,888 | ) | (138 | ) | (7,026 | ) | ||||||||||||||||||||||||||
Total comprehensive loss | - | - | - | - | - | (6,888 | ) | (21,441 | ) | (28,329 | ) | 1,072 | (27,257 | ) | ||||||||||||||||||||||||||
Issue of shares and share options (net of issuance expenses of USD 3.8 million) | 10,709 | - | 4,903 | - | - | - | - | 15,612 | - | 15,612 | ||||||||||||||||||||||||||||||
Exercise of options | 770 | - | - | (585 | ) | - | - | - | 185 | - | 185 | |||||||||||||||||||||||||||||
Cost of share-based payment | - | - | - | 1,385 | - | - | - | 1,385 | - | 1,385 | ||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 82,241 | (1,230 | ) | 6,005 | 10,374 | (608 | ) | (4,254 | ) | (38,888 | ) | 53,640 | 2,063 | 55,703 |
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended June 30, | ||||||||
2023 | 2022 | |||||||
Unaudited | ||||||||
USD in thousands | ||||||||
Cash flows from operating activities: | ||||||||
Net loss | (68,676 | ) | (20,231 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Adjustments to the profit or loss items: | ||||||||
Finance expenses, net | 2,173 | 149 | ||||||
Impairment of Goodwill and Intangible assets | 3,703 | 368 | ||||||
Depreciation and amortization | 6,117 | 2,987 | ||||||
Change in employee benefit liabilities, net | (21 | ) | 192 | |||||
Issuance expenses converted to short term loans | 7,648 | - | ||||||
Warrants measurements- long term liabilities | (812 | ) | - | |||||
Revaluation of long-term loans from banks | - | 2 | ||||||
Revaluation of conversion components | 3,896 | - | ||||||
Change in deferred tax | - | 602 | ||||||
Share Listing expenses | 16,506 | - | ||||||
Equity line of credit | 1,570 | |||||||
Cost of share-based payment | 4,472 | 1,385 | ||||||
45,252 | 5,685 | |||||||
Changes in asset and liability items: | ||||||||
Decrease in trade receivables | 9,229 | 2,541 | ||||||
Decrease (increase) in other accounts receivable | (3,106 | ) | 5,277 | |||||
Increase (decrease) in trade payables | (1,868 | ) | (7,998 | ) | ||||
Decrease in inventories | 931 | 231 | ||||||
Increase (decrease) in other accounts payable | 6,122 | 600 | ||||||
11,308 | 651 | |||||||
Cash paid and received during the year for: | ||||||||
Taxes paid | (80 | ) | (49 | ) | ||||
Interest paid, net | (258 | ) | (287 | ) | ||||
(338 | ) | (336 | ) | |||||
Net cash used in operating activities | (12,454 | ) | (14,231 | ) |
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended June 30, | ||||||||
2023 | 2022 | |||||||
Unaudited | ||||||||
USD in thousands | ||||||||
Cash flows from investing activities: | ||||||||
Investment in restricted bank deposit | 1,102 | (1,733 | ) | |||||
Investment in restricted cash | (1,155 | ) | - | |||||
Purchase of property, plant and equipment | (210 | ) | (273 | ) | ||||
Net cash used in investing activities | (263 | ) | (2,006 | ) | ||||
Cash flows from financing activities: | ||||||||
Issue of shares, net of issue expenses | 1,775 | 15,611 | ||||||
Exercise of options and warrants | 2,066 | - | ||||||
Receipt of short- term loans | 3,942 | - | ||||||
Repayment of short-term loans | (2,510 | ) | (291 | ) | ||||
Long-term loans, net | 6,288 | 194 | ||||||
Repayment of lease liabilities | (1,041 | ) | (1,020 | ) | ||||
Net cash provided by financing activities | 10,520 | 14,494 | ||||||
Exchange rate differences on cash and cash equivalents | 930 | (1,347 | ) | |||||
Increase (decrease) in cash and cash equivalents | (1,267 | ) | (3,090 | ) | ||||
Cash and cash equivalents at the beginning of the year | 3,994 | 13,974 | ||||||
Cash and cash equivalents at the end of the period | 2,727 | 10,884 |
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
Results of Operations
The following table sets forth HUB Security’s operating results for the six months ended June 30, 2023 and 2022. The results of historical periods are not necessarily indicative of the results of operations for any future period.
Six Months Ended June 30 | ||||||||||||||||
2023 | 2022 | Change | % Change | |||||||||||||
Revenue | 30,712 | 37,418 | (6,706 | ) | (17.92 | )% | ||||||||||
Cost of Revenue | 31,718 | 33,399 | (1,681 | ) | (5.03 | )% | ||||||||||
Gross Profit | (1,006 | ) | 4,019 | (5,025 | ) | (125.03 | )% | |||||||||
Research and development expenses, net | 2,759 | 2,810 | (51 | ) | (1.81 | )% | ||||||||||
Sales and marketing expenses | 4,866 | 4,071 | 795 | 19.53 | % | |||||||||||
General and administrative expenses | 36,066 | 16,883 | 19,183 | 113.62 | % | |||||||||||
Other expenses | 18,442 | - | 18,442 | 100 | % | |||||||||||
Operating loss | (63,139 | ) | (19,745 | ) | (43,394 | ) | 219.77 | % | ||||||||
Finance expenses | 7,403 | 151 | 7,252 | 4802.65 | % | |||||||||||
Financial income | 1,866 | 59 | 1,807 | 3602.71 | % | |||||||||||
Loss before taxes on income | (68,676 | ) | (19,837 | ) | (48,839 | ) | 246.20 | % | ||||||||
Taxes on income | - | 394 | (394 | ) | (100 | )% | ||||||||||
Net loss | (68,676 | ) | (20,231 | ) | (48,445 | ) | 239.46 | % |
Comparison of the Six Months Ended June 30, 2023 and 2022
Revenue
Revenue was $30,712 thousand and $37,418 thousand for the six months ended June 30, 2023 and 2022, respectively, resulting in a decrease of $6,706 thousand for the six months ended June 30, 2023.
This reduction is mainly attributed to a reduced volume of commercial transactions driven by activity of the Company’s Comsec Distribution Ltd. subsidiary in the amount of $6,654.
The table below sets forth a breakdown of HUB Security’s revenue by customer location for the six months ended June 30, 2023.
Six Months Ended, | Year ended December 31, | |||||||||||||||
2023 | 2022 | |||||||||||||||
(In thousands) | (In thousands) | Change % | Change | |||||||||||||
Israel | 28,627 | 76,127 | (47,500 | ) | (62.39 | )% | ||||||||||
America | 265 | 339 | (74 | ) | (21.83 | )% | ||||||||||
Europe | 1,599 | 2,983 | (1,384 | ) | (46.39 | )% | ||||||||||
Asia Pacific | 221 | 294 | (73 | ) | (24.83 | )% | ||||||||||
Total | $ | 30,712 | $ | 79,743 | (49,031 | ) | (61.49 | )% |
Cost of Revenue
Cost of revenue was $31,718 thousand and $33,399 thousand for the six months ended June 30, 2023 and 2022, respectively, resulting in a decrease of $1,681 thousand for the six months ended June 30, 2023.
The decrease is mainly attributed to the reduction in the volume of commercial transactions driven by activity of Comsec Distribution Ltd. and license costs in an amount of $6,470, which is partially offset by an increase in amortization of intangible assets in an amount of $3,787, as well as an increase in salaries and related expenses in an amount of $1,002.
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
Research and Development Expenses
Research and development expenses were $2,759 thousand and $2,810 thousand for the six months ended June 30, 2023 and 2022, respectively, resulting in a decrease of $51 thousand for the six months ended June 30, 2023. The decrease is mainly attributed to changes in the exchange rate of the salaries and related expenses denominated in NIS to U.S. dollars.
Sales and Marketing Expenses
Sales and marketing expenses were $4,866 thousand and $4,071 thousand for the six months ended June 30, 2023 and 2022, respectively, resulting in an increase of $795 thousand for the six months ended June 30, 2023. The increase is primarily attributed to an increase of $559 thousand as a result of impairment of intangible assets.
General and Administrative Expenses
General and administrative expenses were $36,066 thousand and $16,883 thousand for the six months June 30, 2023 and 2022, respectively, resulting in an increase of $19,183 thousand. The increase is due to the following: issuance expenses relating to the SPAC merger in an amount of $7,883 thousand, an increase of goodwill impairment and other $11,300 thousand.
Other Expenses
Other expenses were $18,422 thousand and nil for the six months June 30, 2023 and 2022, respectively, resulting in an increase of $18,442 thousand. The increase is due to the following: integration expenses relating to the SPAC merger in an amount of $16,873 thousand and expenses relating to ELOC value in an amount of $1,569 thousand.
Finance Income and Finance Expenses
Financial income was $1,866 thousand and $59 thousand for the six months June 30, 2023 and 2022, respectively, and finance expenses were $7,403 thousand and $151 thousand for the six months June 30, 2023 and 2022, respectively, resulting in a net increase of $5,445 thousand of finance expenses, The increase is primarily attributed to convertible components measurement, warrants measurement and interest expenses.
Taxes on Income
Taxes on income (tax benefit) were nil and $394 thousand for the six months June 30, 2023 and 2022, respectively. This tax primarily derived from decrease of deferred tax liabilities due to the intangible assets amortization offsets by tax assets.
Key Performance Indicators and Non-IFRS Financial Metrics
HUB Security monitors the key business metrics set forth below to help it evaluate its business and growth trends, establish budgets, measure the effectiveness of its sales and marketing efforts, and assess operational efficiencies. The calculation of the key metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts or investors.
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
Key Performance Indicators
The following table summarizes the key performance indicators that HUB Security uses to evaluate its business for the periods presented.
Six Months Ended June 30 | ||||||||||||||||
2023 | 2022 | Change | % Change | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | ||||||||||||||||
Products and Technology Segment (1) | 570 | 796 | (226 | ) | (28.39 | )% | ||||||||||
Professional Services Segment (2) | 30,142 | 36,622 | (6,480 | ) | (17.69 | )% | ||||||||||
Total | $ | 30,712 | $ | 37,418 | (6,706 | ) | (17.92 | )% |
(1) | The Products and Technology Segment develops and markets integrated cybersecurity hardware and software solutions that allow organizations to protect their RAM or confidential computing data to create a reliable work environment. |
(2) | The Professional Services Segment offers data and cybersecurity and system security and reliability solutions and related services such as consulting, planning, training, integrating and ongoing servicing of cybersecurity, risk management, system quality, reliability and security projects and full managed corporate cybersecurity services. In addition, this segment also includes distribution and marketing of security products procured from the manufacturers of information security products to sub-distributors (integrators) who market them to end users. |
Six Months Ended June 30 | ||||||||||||||||
2023 | 2022 | Change | % Change | |||||||||||||
(in thousands) | ||||||||||||||||
Segment results (operating loss) | ||||||||||||||||
Products and Technology Segment | (13,917 | ) | (9,893 | ) | (4,024 | ) | 40.67 | % | ||||||||
Professional Services Segment | (49,222 | ) | (9,852 | ) | (39,370 | ) | 399.61 | % | ||||||||
Total | $ | (63,139 | ) | $ | (19,745 | ) | (43,394 | ) | 219.77 | % |
Non-IFRS Financial Metrics
In addition to HUB Security’s results determined in accordance with IFRS, HUB Security’s management believes that the following non-IFRS financial measures are useful in evaluating HUB Security’s operating performance.
Adjusted EBITDA
HUB Security defines Adjusted EBITDA as net loss as adjusted for income taxes, finance income, finance expenses, depreciation and amortization, impairments, share-based compensation expense, SPAC transaction cost and other one-time costs. Adjusted EBITDA is included in this Interim Report because it is a key metric used by management and HUB Security’s board of directors to assess its financial performance. Adjusted EBITDA is frequently used by analysts, investors and other interested parties to evaluate companies in HUB Security’s industry. Management believes that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate directly to the performance of the underlying business.
Adjusted EBITDA is not an IFRS measure of HUB Security’s financial performance or liquidity and should not be considered as alternatives to net income or loss as a measure of financial performance, as alternatives to cash flows from operations as a measure of liquidity, or as alternatives to any other performance measure derived in accordance with IFRS. Adjusted EBITDA should not be construed as an inference that HUB Security’s future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect HUB Security’s tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized.
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HUB CYBER SECURITY LTD.
(Formerly: HUB CYBER SECURITY LTD. and ALD Advanced Logistics Developments Ltd.)
Management compensates for these limitations by relying on HUB Security’s IFRS results in addition to using Adjusted EBITDA as a supplemental measure. HUB Security’s measure of Adjusted EBITDA is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.
Six Months Ended June 30 | Year ended December 31, | |||||||||||||||
2023 | 2022 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Net loss | $ | (68,676 | ) | $ | (80,000 | ) | 11,324 | (14 | )% | |||||||
Adjusted EBITDA | $ | (5,291 | ) | $ | (21,128 | ) | 15,837 | (75 | )% |
Adjusted EBITDA increased significantly in the six months ended June 30, 2023, primarily as a result of solid execution of the Company’s operational activity. The Company invested significant effort in order to maintain the positive trend of its Adjusted EBITDA.
The following table reconciles Adjusted EBITDA to the most directly comparable IFRS financial performance measure, net loss:
Six Months Ended June 30 | Year ended December 31, | |||||||||||||||
2023 | 2022 | Change | % Change | |||||||||||||
(In thousands) | ||||||||||||||||
Net loss | $ | (68,676 | ) | $ | (80,000 | ) | 11,324 | (14 | )% | |||||||
Finance income | (1,866 | ) | (469 | ) | (1,397 | ) | 298 | % | ||||||||
Finance expenses | 7,403 | 1,701 | 5,702 | 335 | % | |||||||||||
Taxes on income | 0 | (739 | ) | 739 | (100 | )% | ||||||||||
Depreciation and amortization(1) | 6,117 | 7,791 | (1,674 | ) | (21 | )% | ||||||||||
Share-based compensation expense(2) | 4,472 | 10,516 | (6,044 | ) | (57 | )% | ||||||||||
Acquisition-related costs(3) | 5,130 | 15,829 | (10,699 | ) | (68 | )% | ||||||||||
One-time cost(4) | 35,375 | 887 | 34,488 | 3888 | % | |||||||||||
Impairment of Goodwill and other assets (5) | 6,754 | 23,356 | (16,602 | ) | (71 | )% | ||||||||||
Adjusted EBITDA | $ | (5,291 | ) | (21,128 | ) | 15,837 | (75 | )% |
1. | Represents $4,950 thousand and $5,341 thousand in intangible assets amortization, $207 thousand and $309 thousand in fixed assets depreciation, and $960 thousand and $2,141 thousand in right of use asset depreciation for the six months ended June 30, 2023 and for the year ended December 31, 2022, respectively. |
2. | Represents non-cash share-based compensation expenses. |
3. | Represents costs incurred in connection with the SPAC merger. These costs include legal and consulting expenses. |
4. | Represents costs incurred in connection with the SPAC merger. These costs include recording entry, convertible loans, share issuance and a special audit. |
5. | Represents technology goodwill, intangibles and tangibles assets. |
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