Contents |
Page |
Interim Unaudited Condensed Consolidated Balance Sheets |
F-3 |
Interim Unaudited Condensed Consolidated Statements of Comprehensive Loss |
F-4 |
Interim Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity |
F-5 |
Interim Unaudited Condensed Consolidated Statements of Cash Flows |
F-6 |
Notes to the Interim Unaudited Condensed Consolidated Financial Statements |
F-7 |
June 30 | December 31 | |||||||
2023 |
2022 | |||||||
Unaudited |
Audited | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents |
19,867 |
22,448 | ||||||
Short-term restricted cash |
298 |
346 | ||||||
Short-term deposits |
42,309 |
62,262 | ||||||
Marketable securities |
56,733 |
55,587 | ||||||
Trade receivables, net |
865 |
1,271 | ||||||
Other receivables and prepaid expenses |
1,166 |
3,043 | ||||||
Total current assets |
121,238 |
144,957 | ||||||
Non-current assets | ||||||||
Other long-term assets |
432 |
606 | ||||||
Property and equipment, net |
838 |
1,043 | ||||||
Operating lease right-of-use assets, net |
1,628 |
2,040 | ||||||
Total non-current assets |
2,898 |
3,689 | ||||||
Total assets |
124,136 |
148,646 | ||||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities | ||||||||
Account payables |
827 |
1,020 | ||||||
Other payables and accrued expenses |
5,246 |
10,958 | ||||||
Deferred revenue |
232 |
216 | ||||||
Current portion of operating lease liabilities |
642 |
729 | ||||||
Current portion of contingent consideration |
2,972 |
165 | ||||||
Total current liabilities |
9,919 |
13,088 | ||||||
Non-Current liabilities | ||||||||
Warrants for ordinary shares |
104 |
155 | ||||||
Operating lease liabilities, less current portion |
852 |
1,225 | ||||||
Contingent consideration, less current portion |
- |
746 | ||||||
Other non-current liabilities |
- |
4 | ||||||
Total non-current liabilities |
956 |
2,130 | ||||||
Total liabilities |
10,875 |
15,218 | ||||||
Shareholders' equity: | ||||||||
Ordinary shares, no par value; 30,000,000 shares authorized as of | ||||||||
June 30, 2023, and December 31, 2022; 9,650,266 and 9,458,682 shares issued | ||||||||
and outstanding as of June 30, 2023 and December 31, 2022, respectively; |
- |
- | ||||||
Additional paid-in capital |
373,658 |
370,412 | ||||||
Accumulated other comprehensive loss |
(5,466 |
) |
(4,850 |
) | ||||
Accumulated deficit |
(254,931 |
) |
(232,134 |
) | ||||
Total shareholders' equity |
113,261 |
133,428 | ||||||
Total liabilities and Shareholders' Equity |
124,136 |
148,646 |
Six-month |
Six-month | |||||||
period ended |
period ended | |||||||
June 30 |
June 30 | |||||||
2023 |
2022 | |||||||
Revenues |
3,465 |
2,951 | ||||||
Costs and operating expenses: | ||||||||
Cost of services |
1,644 |
1,341 | ||||||
Cloud infrastructure |
1,289 |
2,492 | ||||||
Research and development |
6,205 |
10,656 | ||||||
Sales and marketing |
6,512 |
10,503 | ||||||
General and administrative |
10,908 |
11,072 | ||||||
Depreciation and amortization |
148 |
1,728 | ||||||
Contingent consideration expense (income)
| 2,061 |
(1,541 |
) | |||||
Impairment of Goodwill |
- |
37,000 | ||||||
Impairment of intangible assets |
- |
8,785 | ||||||
Total costs and operating expenses |
28,767 |
82,036 | ||||||
Operating loss |
(25,302 |
) |
(79,085 |
) | ||||
Financial income, net |
2,581 |
428 | ||||||
Loss before income tax expense |
(22,721 |
) |
(78,657 |
) | ||||
Income tax expense |
(76 |
) |
(280 |
) | ||||
Net loss for the period |
(22,797 |
) |
(78,937 |
) | ||||
Net loss per share attributable to ordinary shareholders, basic and diluted |
(2.39 |
) |
(8.72 |
) | ||||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted |
9,558,418 |
9,048,392 | ||||||
Net loss for the period |
(22,797
| ) |
(78,937
| ) | ||||
Other comprehensive loss, net of tax: | ||||||||
Foreign currency translation adjustments |
(462 |
) |
(2,388 |
) | ||||
Unrealized gains on available-for-sale marketable securities, net |
(154 |
) |
- | |||||
Total comprehensive loss for the period |
(23,413 |
) |
(81,325 |
) |
Ordinary shares | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Total
equity | ||||||||||||||||||||
Number of Shares |
USD thousands |
USD thousands |
USD thousands |
USD thousands |
USD thousands | |||||||||||||||||||
Balance as of December 31, 2022 |
9,458,682 |
- |
370,412 |
(232,134 |
) |
(4,850 |
) |
133,428 | ||||||||||||||||
Issuance of shares in connection with stock-based compensation plans |
191,584 |
- |
69 |
- |
- |
69 | ||||||||||||||||||
Share based compensation |
- |
- |
3,177 |
- |
- |
3,177 | ||||||||||||||||||
Comprehensive loss |
- |
- |
- |
(22,797 |
) |
(616 |
) |
(23,413 |
) | |||||||||||||||
Balance as of June 30, 2023 |
9,650,266 |
- |
373,658 |
(254,931 |
) |
(5,466 |
) |
113,261 |
Balance as of January 1, 2022
| 8,814,316 |
349,825 |
(101,062 |
) |
- |
248,763 | ||||||||||||||||||
Shares issued related to the businessacquisitions |
430,806 |
- |
10,691 |
- |
- |
10,691 | ||||||||||||||||||
Issuance of shares in connection with stock-based compensation plans |
83,787 |
- |
135 |
- |
- |
135 | ||||||||||||||||||
Share based compensation |
- |
- |
4,881 |
- |
- |
4,881 | ||||||||||||||||||
Comprehensive loss |
- |
- |
- |
(78,937 |
) |
(2,388 |
) |
(81,325 |
) | |||||||||||||||
Balance as of June 30, 2022 |
9,328,909 |
- |
365,532 |
(179,999 |
) |
(2,388 |
) |
183,145 |
Six-month |
Six-month | |||||||
period ended |
period ended | |||||||
June 30 |
June 30 | |||||||
2023 |
2022 | |||||||
Cash flows from operating activities | ||||||||
Net loss |
(22,797 |
) |
(78,937 |
) | ||||
Adjustments to reconcile net loss to net cash
used in operating activities: | ||||||||
Depreciation and amortization |
148 |
1,728 | ||||||
Share based compensation |
3,177 |
4,881 | ||||||
Revaluation of warrants |
(51 |
) |
(1,451 |
) | ||||
Impairment of Goodwill |
- |
37,000 | ||||||
Impairment of intangible assets |
- |
8,785 | ||||||
Contingent consideration expense (income)
| 2,061 |
(1,541 |
) | |||||
Deferred tax expense (benefit) |
(23 |
) |
(12
| ) | ||||
Interest income and foreign currency translation loss
| (1,432 | ) |
804 | |||||
Other |
(2 |
) |
- | |||||
Changes in operating assets and liabilities: | ||||||||
Trade receivables, net |
424 |
(141 |
) | |||||
Other receivables and prepaid expenses |
1,427 |
1,279 | ||||||
Other payables and accrued expenses |
(5,764 |
) |
1,085 | |||||
Account payables |
(205 |
) |
319 | |||||
Other assets and liabilities |
150 |
(306 |
) | |||||
Net cash used inoperating activities |
(22,887 |
) |
(26,507 |
) | ||||
Cash flows from investing activities | ||||||||
Proceeds from sale of property and equipment |
71 |
- | ||||||
Purchases of property and equipment |
- |
(137 |
) | |||||
Proceeds from short-term bank deposits, net |
20,417 |
(98 |
) | |||||
Other long-term assets, net |
- |
(95 |
) | |||||
Payments for business acquisitions, net of cash acquired |
- |
(11,020 |
) | |||||
Net cash provided by (used in) investing activities |
20,488 |
(11,350 |
) | |||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of share options and warrants |
69 |
135 | ||||||
Net cash provided by financing activities |
69 |
135 | ||||||
Foreign currency effect on cash and cash equivalents and short-term restricted cash |
(299 |
) |
(886 |
) | ||||
Net increase (decrease) in cash and cash equivalents and short-term restricted cash |
(2,629 |
) |
(38,608 |
) | ||||
Cash and cash equivalents and short-term restricted cash at | ||||||||
the beginning of the period |
22,794 |
208,079 | ||||||
Cash and cash equivalents and short-term restricted cash | ||||||||
at the end of the period |
20,165 |
169,471 | ||||||
Appendix A - Material non-cash financing activities: | ||||||||
Shares issued related to the business acquisitions |
- |
10,691 |
A. | Otonomo Technologies Ltd. (together with its subsidiaries, "Otonomo", or the "Company") was incorporated as an Israeli corporation in December 2015. The Company provides an automotive data service platform enabling car manufacturers, drivers, insurance carriers and service providers to be part of a connected ecosystem as well as mobility intelligence which transforms vast amounts of anonymized data and activity signals into actionable, impactful, and valuable insights. |
B. | In the six months ended June 30, 2023, the Company sunsetted its connected vehicle data services ("CVD services"), which included services relating to multi-layered data, standardized and blurred to remove identifiers. The sunsetting of CVD services resulted in a further workforce reduction. The Company concluded that the services were not considered as a component according to ASC 205 and therefore were not considered as a discontinued operation. |
C. | On August 3, 2023, the Company executed a 1-for-15 reverse share split of its Ordinary Shares. As a result of the reverse share split, every 15 issued and outstanding Ordinary Shares were automatically converted into one Ordinary Share. The reverse share split is intended to increase the per share trading price of the Ordinary Shares to enable the Company to regain compliance with the minimum bid price requirement in Nasdaq Listing Rule 5450(a)(1). As a result of the reverse share split, all Ordinary Shares, convertible preferred shares and options for Ordinary Shares, exercise price per share, and net loss per share amounts were adjusted retroactively for all periods presented throughout this document. The number of Ordinary Shares underlying the warrants were adjusted retroactively for all periods presented in these financial statements as a result of the reverse share split. The number of options and restricted share units outstanding and the number of Ordinary Shares underlying the options and restricted share units were adjusted retroactively for all periods presented in these financial statements as a result of the reverse share split. |
F - 7
F - 8
(a) | Connected Vehicles - connected vehicle data platform, which provides customers access to vehicle data and other value-added services ("Connected Vehicle"), complemented by Mobility Intelligence platform ("MI services"). |
(b) | Insurance related Services - connected insurance technology to insurance carriers, comprised of The Floow acquired activity. |
A. | Segment information |
Six-month period ended June 30, 2023 | ||||||||||||
Connected Vehicles | Insurance related Services | Total | ||||||||||
USD thousands |
USD thousands |
USD thousands | ||||||||||
(Unaudited) | ||||||||||||
Revenues |
395 |
3,070 |
3,465 | |||||||||
Segment loss |
(16,581 |
) |
(3,335 |
) |
(19,916 |
) | ||||||
Amounts not allocated to segments: | ||||||||||||
Depreciation and amortization |
(148 |
) | ||||||||||
Contingent consideration expense |
(2,061
| ) | ||||||||||
Share-based compensation |
(3,177 |
) | ||||||||||
Operating loss |
(25,302 |
) | ||||||||||
Financial income, net |
2,581 | |||||||||||
Loss before income tax expense |
(22,721 |
) |
F - 9
A. | Segment information (cont'd) |
Six-month period ended June 30, 2022 | ||||||||||||
Connected
Vehicles | Insurance related Services | Total | ||||||||||
USD thousands |
USD thousands |
USD thousands | ||||||||||
(Unaudited) | ||||||||||||
Revenues |
1,794 |
1,157 |
2,951 | |||||||||
Segment loss |
(26,350 |
) |
(1,882 |
) |
(28,232 |
) | ||||||
Amounts not allocated to segments: | ||||||||||||
Depreciation and amortization |
(1,728 |
) | ||||||||||
Contingent consideration expense |
1,541 | |||||||||||
Impairment of Goodwill |
(37,000 |
) | ||||||||||
Impairment of intangible assets |
(8,785 |
) | ||||||||||
Share-based compensation |
(4,881 |
) | ||||||||||
Operating loss |
(79,085 |
) | ||||||||||
Financial income, net |
428 | |||||||||||
Loss before income tax expense |
(78,657 |
) |
B. | Revenue by geographical region of the Company's customers |
Six-month |
Six-month | |||||||
period ended |
period ended | |||||||
June 30 |
June 30 | |||||||
2023 |
2022 | |||||||
USD thousands |
USD thousands | |||||||
(Unaudited) | ||||||||
Americas |
1,590 |
1,316 | ||||||
APAC |
68 |
60 | ||||||
EMEA |
1,807 |
1,575 | ||||||
Total revenues |
3,465 |
2,951 |
F - 10
C. | Number of customers accounted for over 10% of the revenues |
June 30, 2023 |
December 31, 2022 | |||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Level 1 |
Level 2 |
Level 3 | |||||||||||||||||||
USD thousands | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Money Market funds (1) |
507 |
- |
- |
447 |
- |
- | ||||||||||||||||||
U.S. Treasury securities (1) |
2,267 |
- |
- |
4,197 |
- |
- | ||||||||||||||||||
Corporate bonds (1) |
- |
25,213 |
- |
- |
32,516 |
- | ||||||||||||||||||
Commercial papers (1) |
- |
11,928 |
- |
- |
7,030 |
- | ||||||||||||||||||
U.S. government agency securities (1) |
- |
16,564 |
- |
- |
9,399 |
- | ||||||||||||||||||
Foreign bonds (1) |
- |
- |
- |
- |
1,700 |
- | ||||||||||||||||||
Contingent consideration (2) |
- |
- |
(2,972 |
) |
- |
- |
(911 |
) | ||||||||||||||||
Warrants for ordinary shares (3) |
- |
- |
(104 |
) |
- |
- |
(155 |
) | ||||||||||||||||
2,774 |
53,705 |
(3,076 |
) |
4,644 |
50,645 |
(1,066 |
) |
(1) | The following tables summarize the composition of marketable securities as of June 30, 2023: |
June 30, 2023 | ||||||||||||
Amortized Cost |
Unrealized Gain/Losses |
Fair Value | ||||||||||
USD thousands | ||||||||||||
(Unaudited) | ||||||||||||
Money market funds |
507 |
- |
507 | |||||||||
Available-for-sale debt securities | ||||||||||||
Corporate bonds |
25,335 |
(122 |
) |
25,213 | ||||||||
Commercial papers |
11,928 |
- |
11,928 | |||||||||
U.S. government agency securities |
16,655 |
(91 |
) |
16,564 | ||||||||
U.S. Treasury securities |
2,272 |
(5 |
) |
2,267 | ||||||||
Total |
56,190 |
(218 |
) |
55,972 | ||||||||
56,697 |
(218 |
) |
56,479 |
June 30, 2023 | ||||||||
Amortized Cost |
Fair Value | |||||||
USD thousands | ||||||||
(Unaudited) | ||||||||
Due within one year |
48,054 |
47,911 | ||||||
Due after one year through two years |
8,136 |
8,061 | ||||||
Total |
56,190 |
55,972 |
F - 11
Note 4 - Fair Value Measurement (cont'd)
(2) | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a level 3 measurement within the fair value hierarchy. |
USD thousands | ||||
(Unaudited) | ||||
Fair value as of January 1, 2023 |
911 | |||
Change in fair value |
2,061 | |||
Fair value as of June 30, 2023 |
2,972 |
(3) | In connection with the recapitalization, on August 13, 2021, the Company issued 5,200,000 private warrants, each exercisable to 1/15 ordinary share of the Company. The warrants were classified as a liability measured at fair value, with changes in fair value each period reported in the consolidated statements of operations. Refer to note 6. |
Number of Options | Weighted Average exercise price | |||||||
Outstanding - Balance at January 1, 2023 |
535,737 |
$ |
10.05 | |||||
Forfeited |
(40,958 |
) |
$ |
10.15 | ||||
Exercised |
(72,777 |
) |
$ |
0.89 | ||||
Outstanding - Balance at June 30, 2023 |
422,002 |
$ |
11.67 |
F - 12
Weighted Average | ||||||||
Number of |
Grant Date | |||||||
RSUs |
Fair Value | |||||||
Unvested Balance at January 1, 2023 |
704,350 |
$ |
24.75 | |||||
Granted * |
143,620 |
$ |
6.04 | |||||
Vested |
(118,807 |
) |
$ |
36.02 | ||||
Forfeited |
(372,454 |
) |
$ |
22.30 | ||||
Unvested Balance at June 30, 2023 |
356,709 |
$ |
20.00 |
* | The RSU awards generally vest over four years, with no exercise price. |
The share-based compensation expenses by line item in the accompanying condensed consolidated statements of comprehensive loss is summarized as follows:
Six-months |
Six-months | |||||||
period ended |
period ended | |||||||
June 30 |
June 30 | |||||||
2023 |
2022 | |||||||
USD thousand |
USD thousand | |||||||
Cost of services |
31 |
13 | ||||||
Research and development |
502 |
1,138 | ||||||
Sales and marketing |
962 |
1,467 | ||||||
General and administrative |
1,682 |
2,263 | ||||||
3,177 |
4,881 |
June 30 |
December 31 | |||||||
2023 |
2022 | |||||||
Value of warrant per share |
$ |
0.30 |
$ |
0.45 | ||||
Number of ordinary shares issuable upon exercise of warrants |
346,667 |
346,667 | ||||||
Fair value of warrant liability (in USD thousand) |
$ |
104 |
$ |
155 |
F - 13
Note 6 - Warrants for ordinary shares (cont'd)
June 30 |
December 31 | |||||||
2023 |
2022 | |||||||
Volatility |
90.2 |
% |
89.1 |
% | ||||
Risk-free interest rate |
4.46 |
% |
4.1 |
% | ||||
Expected dividends |
0.0 |
% |
0.0 |
% | ||||
Expected life (in years) |
3.12 |
3.62 |
Six-months |
Six-months | |||||||
period ended |
period ended | |||||||
June 30 |
June 30 | |||||||
2023 |
2022 | |||||||
In USD thousands, except share data | ||||||||
Numerator: | ||||||||
Net loss |
(22,797 |
) |
(78,937 |
) | ||||
Denominator: | ||||||||
Weighted-average shares used in computing net loss per share | ||||||||
attributable to ordinary shareholders, basic and diluted |
9,558,418 |
9,048,392 | ||||||
Net loss per share attributable to ordinary shareholders, basic | ||||||||
and diluted |
(2.39 |
) |
(8.72 |
) |
Since the Company incurred net losses for each of the periods presented, diluted net loss per share is the same as basic net loss per share. All of the Company's outstanding stock options and RSUs, as well as the warrants, were excluded in the calculation of diluted net loss per share as the effect would be anti-dilutive.
F - 14
A. | Exchange Offer and Consent Solicitation |
In addition, pursuant to the consent solicitation, the Company received approval from the holders of a majority of the public warrants of an amendment to the warrant agreement governing the warrants (the "Warrant Amendment"). On August 23, 2023, the Company executed the Warrant Amendment and announced that it will exercise its right, in accordance with the terms of the Warrant Amendment, to exchange all remaining untendered warrants for ordinary shares at an exchange ratio of 0.01503 ordinary shares for each warrant. The Company has fixed the date for such exchange as September 7, 2023.
B. | Headquarters office lease |
F - 15
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Otonomo Technologies Ltd. published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 23:13:11 UTC.