PETAH TIKVAH, Israel, March 25, 2024 (GLOBE NEWSWIRE) -- SaverOne 2014 Ltd. (Nasdaq: SVRE, TASE: SVRE), a company developing and deploying transportation safety and advanced driver-assistance systems (ADAS) technologies and solutions, today presented its results for the full year 2023, and shared recent business updates.
Recent Highlights
Financial Highlights
Management Comment
Commented Mr. Ori Gilboa, CEO of SaverOne, “We are pleased with continued solid performance in 2023, both from the financial perspective by growing revenues at more than 100%, and particularly from the strategic perspective. We are especially pleased with the broadening of our footprint amongst our existing customers, and a prime example is the growth of our relationship with Cemex, expanding our offerings into the trucks of Cemex Spain. We are also reaching new customers internationally, demonstrated by the initiation of some key pilot projects in North America, Europe and elsewhere. In particular, our first OEM penetration with Volvo Bus Corporation, a Mexican subsidiary of leading car manufacture Volvo, is a highly strategic customer win for us and we believe opens additional potential for similar such wins in the near future.”
“We continue to remain optimistic and we expect to maintain our strong momentum into 2024 and beyond,” concluded Mr. Gilboa.
Recent Developments Summary
Financial Summary for 2023
Revenues increased by 128% to NIS 2.720 million (~$0.75 million) in 2023 compared to NIS 1.193 million (~$0.329 million) for 2022. This increase was mainly the result of increased sales of the SaverOne System in Israel with new and existing customers as well as new sales with customers in international regions.
Of the revenues in 2023, 93% of revenues were from Israel while 7% of revenues were from Europe. In 2022, 100% of revenues were from Israel.
Gross profit increased by 107% to NIS 0.752 million (~$0.207 million), representing gross margin of 27.6% in 2023 compared to NIS 364 thousand (~$0.1 million), representing gross margin of 30.5%, in 2022.
Research and development expenses, net were NIS 22.9 million (~$6.3 million) in 2023 compared to NIS 21.5 million (~$5.9 million) in 2022.
Selling and marketing expenses were NIS 3.8 million (~$1.0 million) in 2023 compared to NIS 1.6 million (~$0.439 million) in 2022. The increase is attributable mainly to higher payroll and investor relations expenses, as part of the Company’s efforts to increase sales and marketing efforts.
General and administrative expenses were NIS 8.3 million (~$2.3 million) in 2023, compared to NIS 6.5 million (~$1.8 million) in 2022. The increase in these expenses was mainly due to additional costs associated with being a US listed public company.
Operating loss was NIS 34.2 million (~$9.4 million) in 2023 compared to NIS 29.2 million (~$8.1 million) in 2022, primarily due to increased operating expenses as detailed above.
Financing income, net, was NIS 0.388 million (~$0.107 million) for 2023 compared to financing income, net, of NIS 4.2 million (~$1.2 million) in 2022. The decrease is due primarily due to fluctuations in exchange rates and other effects impacting the value of financial assets and liabilities that the Company holds less interest paid.
Net loss in 2023 was NIS 33.8 million (~$9.3 million), compared to NIS 26.5 million (~$6.9 million) for 2022.
Cash and cash equivalents and short-term bank deposits as of December 31, 2023, amounted to NIS 17.1 million (~$4.7 million), compared with NIS 19.2 million (~$5.3 million) as of December 31, 2022.
The Company’s financial results are presented in accordance with IFRS as issued by the IASB.
*Unless otherwise noted, for the purposes of the presentation of financial data, all conversions from New Israeli Shekels (NIS) to U.S. dollars and from U.S. dollars to NIS were made at the rate of NIS 3.627 to $1.00, based on the representative exchange rate reported by the Bank of Israel on December 29, 2023.
A copy of SaverOne’s annual report on Form 20-F for the year ended December 31, 2023 has been filed with the U.S. Securities and Exchange Commission at https://www.sec.gov/ and posted on SaverOne’s investor relations website at https://ir.saver.one/. SaverOne will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at [email protected].
About the SaverOne System
SaverOne’s system is installed in vehicles to provide a solution to the problem of driver distraction, as a result of drivers using distracting applications on the mobile phone while driving, in a way that endangers their safety and the safety of their passengers. This phenomenon is considered one of the main causes of road accidents in the world. According to the US National Highway Traffic Safety Administration, the annual cost of road accidents just in the United States, stands at about $870 billion each year, excluding the costs of serious injury or death, with a quarter of those accidents estimated to be related to the use of the mobile phones while driving. SaverOne's technology specifically recognizes the driver area in the vehicle and prevents the driver from accessing distracting applications such as messaging, while allowing others (e.g. navigation, calls), without user intervention or consent, creating a safer driving environment.
SaverOne’s primary target markets include commercial and private vehicle fleets, including public transportation and buses, that are interested in reducing potential damages and significant cost, vehicle manufacturers that are interested in integrating safety solutions to their vehicles, and insurance and leasing companies. SaverOne initially addresses car fleets with focus on the Israeli, European and US markets, as well as other markets around the world. SaverOne believes that ultimately increased focus on monitoring and prevention of cellular distraction systems in vehicles, in particular driven by upcoming expected EU regulation, will likely have a dramatic positive impact on the demand for its systems in the future.
The Company’s strategy is to provide its technology for installation to customers in the aftermarket as well as address OEM vehicle manufacturers, to install the Company's protection technologies during the vehicle manufacturing process.
About SaverOne
SaverOne is a technology company engaged in the design, development and commercialization of OEM and aftermarket solutions and technologies, to lower the risk of, and prevent, vehicle accidents.
SaverOne’s initial line of products is a suite of solutions that saves lives by preventing car accidents resulting from distraction from the use of mobile phones while driving. SaverOne is also developing a sensor system for early location and direction detection under all visibility conditions of vulnerable road users (VRU) through their cellphone footprint.
To learn more about the company, please visit: https://saver.one/
For the corporate video, please visit: https://saver.one/media/
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements regarding SaverOne's strategic and business plans, technology, relationships, objectives and expectations for its business, growth, the impact of trends on and interest in its business, intellectual property or product and its future results, operations and financial performance and condition and may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on SaverOne's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Many factors could cause SaverOne's actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements. Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to: the ability of SaverOne’s technology to substantially improve the safety of drivers; SaverOne’s planned level of revenues and capital expenditures; SaverOne’s ability to market and sell its products; SaverOne’s plans to continue to invest in research and development to develop technology for both existing and new products; SaverOne’s intention to advance its technologies and commercialization efforts; SaverOne’s intention to use local distributors in each country or region that it will conduct business to distribute our products or technology; SaverOne’s plan to seek patent, trademark and other intellectual property rights for our products and technologies in the United States and internationally, as well as its ability to maintain and protect the validity of its currently held intellectual property rights; SaverOne’s expectations regarding future changes in its cost of revenues and our operating expenses; interpretations of current laws and the passage of future laws; acceptance of SaverOne’s business model by investors; the ability to correctly identify and enter new markets; the impact of competition and new technologies; general market, political and economic conditions in the countries in which SaverOne operates; projected capital expenditures and liquidity; SaverOne’s intention to retain key employees, and our belief that we maintain good relations with all of its employees; any resurgence of the COVID-19 pandemic and its impact on SaverOne’s business and industry; security, political and economic instability in the Middle East that could harm SaverOne’s business, including due to the current war between Israel and Hamas; and other risks and uncertainties, including, but not limited to, the risks detailed in the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") on March 25, 2024 and in subsequent filings with the SEC. Forward-looking statements contained in this announcement are made as of this date, and SaverOne undertakes no duty to update such information except as required under applicable law.
International Investor Relations Contact: Ehud Helft +1 212 378 8040 [email protected] Israeli Investors Contact: Jonathan Eilat [email protected] |
As of December 31, | ||||||
2023 | 2022 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 17,112 | 19,240 | ||||
Short-term bank deposits | - | 10,070 | ||||
Trade receivables, net | 1,054 | (*) | 762 | |||
Other current assets | 1,509 | 1,016 | ||||
Inventory | 4,534 | 2,026 | ||||
Total current assets | 24,209 | 33,114 | ||||
Non-current assets | ||||||
Trade receivables, net | 1,051 | (*) | 335 | |||
Property and equipment, net | 248 | 218 | ||||
Restricted deposits | 211 | 201 | ||||
Right of usage asset, net | 1,271 | 567 | ||||
Total non-current assets | 2,781 | 1,321 | ||||
Total assets | 26,990 | 34,435 | ||||
Current liabilities | ||||||
Current maturities of leasing liability | 352 | 467 | ||||
Trade payables | 4,303 | 1,956 | ||||
Other current liabilities | 2,042 | 2,872 | ||||
Liability in respect of government grants | 694 | 335 | ||||
Derivative warrants liability | 274 | 1,151 | ||||
Promissory notes, net | 7,139 | - | ||||
Total current liabilities | 14,804 | 6,781 | ||||
Non-current liabilities | ||||||
Leasing liability, net current | 980 | 181 | ||||
Liability in respect of government grants | 634 | 919 | ||||
Total non-current liabilities | 1,614 | 1,100 | ||||
Commitments | ||||||
Shareholders' equity | ||||||
Share capital and premium | 135,243 | 118,284 | ||||
Capital reserve in respect of share-based payment | 10,939 | 10,045 | ||||
Accumulated deficit | (135,610 | ) | (101,775 | ) | ||
Total shareholders’ equity | 10,572 | 26,554 | ||||
Total liabilities and shareholders’ equity | 26,990 | 34,435 |
(*) Reclassified.
Year Ended December 31, | ||||||||
2023 | 2022 | 2021 | ||||||
Revenues | 2,720 | 1,193 | 450 | |||||
Cost of revenues | (1,968 | ) | (829 | ) | (288 | ) | ||
Gross profit | 752 | 364 | 162 | |||||
Research and development expenses, net | (22,861 | ) | (21,490 | ) | (18,847 | ) | ||
Selling and marketing expenses, net | (3,787 | ) | (1,591 | ) | (2,431 | ) | ||
General and administrative expenses | (8,327 | ) | (6,492 | ) | (5,149 | ) | ||
Operating loss | (34,223 | ) | (29,209 | ) | (26,265 | ) | ||
Financing expenses | (1,219 | ) | (852 | ) | (228 | ) | ||
Financing income | 1,607 | 5,099 | 3 | |||||
Financing income (expenses), net | 388 | 4,247 | (225 | ) | ||||
Loss for the year | (33,835 | ) | (24,962 | ) | (26,490 | ) | ||
Comprehensive loss for the year | (33,835 | ) | (24,962 | ) | (26,490 | ) | ||
Loss per share attributed to shareholders of company shares, par value NIS 0.01 each | ||||||||
Basic and diluted loss per share: | ||||||||
Basic and diluted loss per share | (1.08 | ) | (1.44 | ) | (3.33 | ) | ||
Weighted average of number of shares used to calculate the basic and diluted loss per share | 31,380,359 | 17,300,596 | 7,960,239 | |||||
Year ended December 31, | ||||||||||
2023 | 2022 | 2021 | ||||||||
Cash flow from current operations | ||||||||||
Comprehensive loss for the year | (33,835 | ) | (24,962 | ) | (26,490 | ) | ||||
Adjustments required to present cash flows from operating activities (Appendix A) | (1,185 | ) | (3,408 | ) | 3,357 | |||||
Net cash used in operating activities | (35,020 | ) | (28,370 | ) | (23,133 | ) | ||||
Cash flows from investment activity | ||||||||||
Change in deposits restricted as to withdrawal | - | - | (41 | ) | ||||||
Changes in short-term deposits | 10,070 | (5,058 | ) | (5,012 | ) | |||||
Purchase of property and equipment | (128 | ) | (62 | ) | (144 | ) | ||||
Net cash provided by (used in) investment activity | 9,942 | (5,120 | ) | (5,197 | ) | |||||
Cash flows from financing activity | ||||||||||
Deferred offering expenses | - | - | (750 | ) | ||||||
Net proceeds received from issuance of units including put options, first promissory note and ADSs as Commitment Shares in transaction of equity line granted | 7,170 | - | - | |||||||
Proceeds received from issuance of ADSs resulted from partial exercise of Commitment Amount under equity line | 9,259 | - | - | |||||||
Repayment of first promissory note (principal and interest) | (754 | ) | - | - | ||||||
Net proceeds received from issuance of second promissory note | 3,597 | - | - | |||||||
Receipt of government grants | - | - | 579 | |||||||
Net proceeds received from issuance of ADSs through private placement transaction | - | 5,141 | - | |||||||
Net proceeds received from issuance of ADSs as part of shelf prospectus through public offering transaction | 3,685 | - | - | |||||||
Repayment of principal in respect of leasing | (467 | ) | (467 | ) | (440 | ) | ||||
Net proceeds received from issuance of units consist of ADSs, pre-funded warrants and warrants through U.S. IPO transaction | - | 37,298 | - | |||||||
Exercise of non-registered rights into ordinary shares | - | - | (*) | - | ||||||
Exercise of restricted share units into ordinary shares | (*) | - | - | - | ||||||
Net cash provided by (used in) financing activity | 22,490 | 41,972 | (611 | ) | ||||||
Change in balance of cash and cash equivalents | (2,588 | ) | 8,482 | (28,941 | ) | |||||
Exchange differences on cash and cash equivalents | 460 | 2,075 | - | |||||||
Balance of cash and cash equivalents, beginning of year | 19,240 | 8,683 | 37,624 | |||||||
Balance of cash and cash equivalents, end of year | 17,112 | 19,240 | 8,683 |
(*) Representing amount lower than NIS 1.
Year ended December 31, | ||||||||
2023 | 2022 | 2021 | ||||||
Appendix A - Adjustments required to present cash flows from operating activities | ||||||||
Income and expenses not involving cash flows | ||||||||
Depreciation | 98 | 82 | 61 | |||||
Amortization of right for usage asset | 425 | 425 | 398 | |||||
Interest expense in respect of leasing | 22 | 43 | 61 | |||||
Share-based payment to employees and service providers | 978 | 1,157 | 3,348 | |||||
Revaluation of derivative warrant liability | (877 | ) | (2,954 | ) | - | |||
Recognition of discount, interest and exchange differences expenses related to promissory notes | 526 | - | - | |||||
Finance expenses incurred from partial exercise of Commitment Amount under equity line | 531 | - | - | |||||
Direct and incremental issuance cost allocated to derivative warrant liability through U.S IPO | - | 723 | - | |||||
Exchange differences on cash and cash equivalent and restricted deposits | (470 | ) | (2,085 | ) | - | |||
Changes in liability in respect of government grants | 74 | 86 | (213 | ) | ||||
1,307 | (2,523 | ) | 3,655 | |||||
Changes in asset and liability items | ||||||||
Decrease (increase) in other current assets | (493 | ) | 143 | (647 | ) | |||
Increase in trade receivables | (1,008 | ) | (596 | ) | (142 | ) | ||
Increase in inventory | (2,508 | ) | (1,201 | ) | (715 | ) | ||
Increase in trade payables | 2,347 | 1,014 | 54 | |||||
Increase (decrease) in other current liabilities | (830 | ) | (245 | ) | 1,152 | |||
(2,492 | ) | (885 | ) | (298 | ) | |||
(1,185 | ) | (3,408 | ) | 3,357 | ||||
Appendix B - Non-cash investment and financing activities | ||||||||
Recognition of right for usage asset against a leasing liability | 1,129 | - | 532 | |||||
Deferred offering expenses not yet paid | - | - | 405 | |||||
Direct and incremental stock-based payment expenses allocated to ADSs and pre-fund warrants through U.S. IPO | - | 960 | - | |||||
Classification of equity amount to derivative warrants liability due to partial exercise of over-allotment option into warrants | - | 158 | - | |||||
Repayment of first promissory note (principal and interest) through issuance of ADSs resulted from partial exercise of Commitment Amount under equity line | 3,313 | - | - | |||||
Appendix C - Additional information pertaining to cash flows | ||||||||
Interest paid | - | - | - | |||||
Interest received | 271 | 85 | - |