Orbit Technologies : CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

ORBIT TECHNOLOGIES LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2023

U.S. DOLLARS IN THOUSANDS

UNAUDITED

INDEX
	Page
Consolidated Balance Sheets	3 - 2
Consolidated Statements of Income	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Changes in Equity	6 - 8
Consolidated Statements of Cash Flows	10 - 9
Note to Consolidated financial Statements	11

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

		September 30,	December 31,
		2023			2022		2022
		Unaudited		Audited
ASSETS	U.S. dollars in tho	usands
CURRENT ASSETS:	20,279
Cash and cash equivalents			20,349		21,746
Short term deposit	16,388			-		12,815
Accounts receivable	10,187			10,944		11,615
Amounts due for construction contracts	18,961			14,762		16,620
Other accounts receivable	1,827			1,659		2,731
Inventories	12,288			8,548		9,528
		79,930			56,262		75,055
NON-CURRENT ASSETS:	10
Other assets			10		10
Fixed assets	18,836			15,278		18,248
Intangible assets	14,445			(*) 10,934		11,809
Goodwill	785			(*) 785		785
Deferred taxes	194			75		217
		34,270			(*) 27,082		31,069
		114,200			(*) 83,344		106,124

The accompanying note is an integral part of the interim consolidated financial statements.

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

		September 30,			December 31,
		2023		2022		2022
		Unaudited			Audited
LIABILITIES AND EQUITY	U.S. dollars in thousands
CURRENT LIABILITIES:	9,417
Trade payables	9,528	11,032
Income taxes payable	1,024	198	258
Other accounts payable	14,729		12,945		13,309
		25,170	22,671	24,599
NON-CURRENT LIABILITIES:	553
Liability for Government grants	556	518
Employee benefit liability	205	330	212
Lease payments liability	8,778	7,661	9,925
Warranty liability	1,230	742	713
Contingent liability related to acquisition	237	762	467
Deferred taxes	790		(*) 368		349
		11,793	10,419	12,184
EQUITY:	8,201
Share capital	6,515	8,196
Paid-in capital	36,733	21,252	36,603
Warrants	-	1,761	-
Retained earnings	30,731	19,973	23,373
Reserve for share-based payment	2,295	1,716	1,907
Foreign currency translation adjustments	(577)	(747)	(592)
Reserve for defined benefit plans	721	651	721
Treasury shares	(867)		(867)		(867)
Total equity	77,237		50,254		69,341
		114,200	(*) 83,344	106,124

The accompanying note is an integral part of the interim consolidated financial statements.

November 22, 2022
Date of approval of the		Yitzchak Gat		D. Eshchar		R. Wirth
financial statements		Chairman of the Board		CEO		CFO

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF INCOME

Nine months ended		Three months ended		Year ended
September 30,		September 30,		December 31,
2023		2022		2023		2022		2022
		Unaudited				Audited

U.S. dollars in thousands (except per share data)

Revenues from sales and contracts performed

Cost of sales and contracts performed

Gross profit

Research and development costs, net Selling and marketing expenses General and administrative expenses

Operating income before other expenses Other expenses

Operating income after other expenses

Finance income

Finance expenses

Income before taxes on income tax expense

Net profit

Net profit per share attributable to equity holders of the Company (in U.S. dollars):

Basic profit per share

Diluted profit per share

45,408

28,631

16,777

1,481

4,859

2,721

7,716

-

7,716

1,659

587

8,788

1,429

7,358

0.298

0.294

42,570 16,426

27,007 10,026

15,563 6,400

2,533 444

4,017 1,620

3,018 996

5,995 3,340

231 -

5,764 3,340

2,185	705
256		178
7,693	3,867
1,416		713
6,277	3,154

0.337 0.128

0.282 0.126

16,017 59,006

9,917 37,177

6,100 21,829

935 3,531

1,494 5,216

1,041 3,788

2,630 9,294

• 271

2,630 9,023

1. 2,501

1. 349

2,948 11,175

552 1,498

2,396 9,677

0.129 0.493

0.107 0.426

The accompanying note is an integral part of the interim consolidated financial statements.

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

		Nine months ended			Three months ended			Year ended
		September 30,			September 30,			December 31,
		2023		2022			2023		2022		2022
					Unaudited					Audited
					U.S. dollars in thousands
Net profit	7,358	6,277	3,154	2,396	9,677
Other comprehensive income (net of tax
effect):
Actuarial loss from defined benefit plans	-	-	-	-	70
Foreign currency translation adjustments
of foreign operation	15		(389)		(86)		(158)		(234)
Total other comprehensive profit (loss)	15		(389)		(86)		(158)		(164)
Total comprehensive income	7,373	5,888	3,038	2,238	9,513

The accompanying note is an integral part of the interim consolidated financial statements.

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Balance at January 1, 2023 (audited)

Net Income

Other comprehensive Income Total comprehensive income Exercise of warrants into shares Cost of share based-payment

Balance at September 30, 2023

Balance at January 1, 2022 (audited)

Net Income

Other comprehensive loss

Total comprehensive income (loss) Exercise of warrants into shares Cost of share based-payment

Balance at September 30, 2022

														Foreign		Reserve
											Reserve for	currency		for defined
		Share			Paid-in				Retained		share-based	translation		benefit			Treasury				Total
		capital			capital			Warrants	earnings		payment	adjustments		plans			shares				equity
											U.S. dollars in thousands
											Unaudited
8,196	36,603	-	23,373	1,907			(592)	-	721	(867)	69,341
-	-	-	7,358	-			-		-	-	7,358
-	-	-	-	-			15		-	-	15
		-			-			-	7,358	-			15		-			-				7,373
						-	-	(61)			-		-	-	74
	-		-		-	-	499			-		-		-		499
8,201	36,733	-	30,731	2,295			(577)		721	(867)	77,237

Equity attributable to equity holders of the Company

							Reserve for		Foreign currency		Proceeds from
Share		Paid-in			Retained		share-based		translation		conversion		Treasury		Total
capital		capital		Warrants	earnings		payment		adjustments		option		shares		equity
							Unaudited
							U.S. dollars in thousands
6,493	21,039	1,761	13,696	1,118	(358)	651	(867)	43,533
-	-	-	6,277	-	-	-	-	6,277
-		-		-	-		-		(389)		-		-		(389)
-	-	-	6,277	-	(389)	-	-	5,888
22	213	-	-	(72)	-	-	-	163
-		-		-	-		670		-		-		-		670
6,515	21,252	1,761	19,973	1,716	(747)	651	(867)	50,254

The accompanying note is an integral part of the interim consolidated financial statements.

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Balance at July 1, 2023

Net Income

Other comprehensive Income Total comprehensive income (loss) Exercise of warrants into shares Cost of share based-payment

Balance at September 30, 2023

Balance at July 1, 2022

Net Income

Other comprehensive loss

Total comprehensive income (loss) Exercise of warrants into shares Cost of share based-payment

Balance at September 30, 2022

															Foreign	Reserve
											Reserve for	currency	for defined
		Share			Paid-in				Retained		share-based	translation	benefit			Treasury			Total
		capital			capital			Warrants	earnings		payment	adjustments	plans			shares			equity
										U.S. dollars in thousands
											Unaudited
8,201	36,706	-	27,577	2,170				(491)			721	(867)	74,017
-	-	-	3,154	-				-			-	-	3,154
-	-	-	-	-				(86)		-	-	(86)
		-			-			-	3,154	-				(86)			-			-			3,068
-	27	-	-	(27)				-			-	-	-
	-		-		-	-	152				-			-		-		152
8,201	36,733	-	30,731	2,295				(577)			651721	(867)	77,237

Equity attributable to equity holders of the Company

							Reserve for		Foreign currency		Proceeds from
Share		Paid-in			Retained		share-based		translation		conversion		Treasury		Total
capital		capital		Warrants	earnings		payment		adjustments		option		shares		equity
							Unaudited
							U.S. dollars in thousands
6,501	21,089	1,761	17,577	1,526	(589)	651	(867)	47,649
-	-	-	2,396	-	-	-	-	2,396
-		-		-	-		-		(158)		-		-		(158)
-	-	-	2,396	-	(158)	-	-	2,238
14	163	-	-	(22)	-	-	-	155
-		-		-	-		212		-		-		-		212
6,515	21,252	1,761	19,673	1,716	(747)	651	(867)	50,254

The accompanying note is an integral part of the interim consolidated financial statements.

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

															Foreign		Reserve
												Reserve for	currency		for defined
			Share			Paid-in				Retained share-based translation		benefit			Treasury				Total
			capital			capital			Warrants	earnings		payment	adjustments		plans			shares				equity
												U.S. dollars in thousands
												Audited
Balance at December 31, 2021	6,493	21,039	1,761	13,696	1,118			(358)		651	(867)	43,533
Net Income	-	-	-	9,677	-			-		-	-	9, 677
Other comprehensive loss	-	-	-	-	-			(234)		-	-	(164)
Total comprehensive income (loss)			-			-			-	9,677	-			(234)		-			-				9,513
Exercise of warrants into shares by controlling shareholder	1,681	15,335	(1,761)	-	-			-		-	-	15,255
Forfeiture of options	23	229	-	-	(75)									177
Cost of share based-payment		-		-		-	-	863			-		-		-		863
Balance at December 31, 2022	8,196	36,603	-	23,373	1,907			(592)	-	721	(867)	69,341

The accompanying note is an integral part of the interim consolidated financial statements.

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Nine months ended	Three months ended	Year ended
		September 30,	September 30,	December 31,
		2023		2022		2023		2022			2022
				Unaudited					Audited
Cash flows from operating activities:			U.S. dollars in thousands
Net income	7,358		6,277	3,154	2,396		9,677
Adjustments to reconcile loss to net cash
provided by operating activities:
Adjustments to the profit or loss items:
Depreciation and amortization	2,578		2,494	940	930		3,227
Capital Gain from sale of fixed assets	-		-			-			57
Cost of share-based payment	449		670	152	212		863
Tax expense	1,429		1,416	712	552		1,498
Interest expenses, net	(417)		135	(204)	15		90
Change in employee benefit liability, net	(7)		(117)		(3)	(16)			(173)
Adjustment to current accounts with
foreign operation	6		(116)		(9)	8		(323)
Changes in operating asset and liability
items:	4,038		4,482	1,588	1,701		5,239
Decrease (increase) in trade receivables
1,428		877	3,280	(2,078)			206
Increase in amounts due for construction
contracts	(2,341)		(7,708)		(787)	(3,856)			(9,566)
Decrease (increase) in other accounts
receivable	903		(515)		624	172		(125)
increase in inventories	(2,891)		(2,143)		(1,316)	(916)			(3,239)
Increase (decrease)in trade payables	(952)		933	1,255	336		2,748
Increase (decrease) in other accounts
payable	925		(4,780)		(115)		172		(4,406)
Cash paid and received during the period	(2,928)		(13,336)		2,941		(6,170)			(14,382)
for:
Interest paid	(588)		(248)		(179)	(90)			(349)
Interest received	1,005		113	383	77		259
Taxes paid	(115)		(84)		(40)		(26)			(307)
		302		(219)		164	(39)			(397)
Net cash provided by (used in) operating
activities		8,770		(2,796)		7,847		(2,112)			137

The accompanying note is an integral part of the interim consolidated financial statements.

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ORBIT TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Nine months ended			Three months ended			Year ended
		September 30,			September 30,			December 31,
		2023		2022			2023		2022		2022
					Unaudited					Audited
Cash flows from investing activities:				U.S. dollars in thousands
Purchase of fixed assets	(2,977)	(981)	(1,373)	(249)	(3,757)
Capitalization of research and development
costs	(3,110)	(3,421)	(1,129)	(1,116)	(4,434)
Net cash used to activity acquisition	-	(1,352)	-	-	(1,352)
Deposit in banking corporations	(2,938)		-		(3,000)		-		(12,787)
Net Used in investing activities	(9,025)	(5,754)	(5,502)	(1,365)	(22,330)
Cash flows from financing activities:
Payments for Government grants	(4)	(4)	-	(4)	(5)
Payments of lease liability	(1,277)	(1,261)	(419)	(435)	(1,696)
Exercise of warrants into shares by
controlling shareholder	-	-	-	-	15,255
Exercise of warrants into shares	74	163	-	155	177
Net cash provided by (used in) financing
activities	(1,207)	(1,102)	(419)	(284)	13,731
Translation differences on balances of cash
and cash equivalents	(6)	116	9	(8)	323
Increase (decrease) in cash and cash
equivalents	(1,467)	(9,536)	1,937	(3,769)	(8,139)
Cash and cash equivalents at the beginning
of the period	21,746	29,885	18,342	24,118	29,885
Cash and cash equivalents at the end of the
period	20,279	20,349	20,279	20,349	21,746
Significant non-cash transaction:
Purchase of fixed assets on suppliers credit	227	1,200	102	1,097	890
Recognition of the right of use against a
lease liability	249	490	87	96	2,634

The accompanying note is an integral part of the interim consolidated financial statements.

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