Revenue up ~4X YoY in H1 2023 and expects continued growth in
H2 2023
Management to hold investor webinar to discuss results later
today at 9am ET
PETAH TIKVAH, Israel,
Aug. 29,
2023 /PRNewswire/ -- 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 first half ended June 30,
2023 and shared some of its recent business updates.
Recent Highlights
- SaverOne is successfully executing on its
land-and-expand strategy by broadening
initial penetrations locally to full fleets, as well as initial
wins internationally including pilot projects in the United States, Europe and the Gulf region;
- ~4,300 systems have been ordered by
customers as of August
29, 2023, of which approximately 3,000 have been
installed;
- SaverOne plans to advance development
activities with IVECO during the fourth quarter subject to entry
into formal agreement, with sales to customers planned for
2024.
Financial Highlights
- ~4X (286%) year-over-year growth in revenue to
NIS 1.5 million (~$399 thousand) in the first half of 2023;
- Gross margin of 32% in the first half of 2023 versus 30% in the
first half of 2022;
- Net loss of NIS 17.8 million
(~$4.8 million) in H1 2023 versus
NIS 11.9 million in H1 2022
(~$3.2 million) with higher net loss
due to higher operating expenses given increased business
activities in the current year;
- June 30, 2023 cash and cash
equivalents and short-term bank deposits of NIS 18.6 million (~$5.0
million).
Management Comment
Commented Mr. Ori Gilboa, CEO
of SaverOne, "We are very pleased with our performance so far
in 2023. Building on the momentum we achieved last year, we
continue to see our business advance well and in-line with our
strategy. In particular, we are especially pleased with the
broadening of our footprint amongst existing customers following
the successful completion of our pilot projects with them,
demonstrating their satisfaction with our solution. Furthermore, in
line with our strategy to expand into international markets, we are
very happy with the recent initiation of key pilot projects in
the United States, Europe and the Gulf region. These are all key
milestones for our business and given our strong pipeline, we see
further potential to expand internationally."
"Given our solid results and the clear potential ahead of us, we
are ever more optimistic about our long-term growth. Looking to the
second half of 2023, we expect to continue the growth trend from
our encouraging first half of the year," concluded Mr.
Gilboa.
Recent Developments Summary
- Further recent international expansion: a new pilot
project on buses of an additional county in the Gulf region; a
second pilot project in the United
States with a new customer, a fueling transportation
company; and SaverOne's first pilot in Europe marking an expansion with an existing
customer.
- SaverOne Strengthens Senior Management with Focus on Global
Sales and Business Development: announced the appointment of
Omri Hagai, as new CFO; Yoav Zilber appointed as Head of Business
Development, US and Europe After-Market Product; Alon Refaeli appointed as Head of Business
Development, Global OEM Market and Hila Vyzer appointed as Head of
Israel Market Sales. The
appointments augment and strengthen SaverOne's management team and
its go-to-market efforts in international markets as well as the
local market in Israel.
- Diplomat, a leading importer and distributor of consumer
goods throughout Israel, signed an agreement with SaverOne for an
initial pilot program on 20 trucks out of Diplomat's full fleet of
45.
- Cemex Group, a global leader in the building materials
industry to install the SaverOne system across its entire employee
car fleet and trucks in Israel.
This follows two prior orders covering portions of the fleet
and the system is now being deployed on over 380 of Cemex'
vehicles. There remains significant further potential in Cemex
Group around the world.
- Garbage collection and recycling leader, Argaman Ichut
Hasviva in Israel, to install
the SaverOne System across its entire fleet of 20 garbage
trucks operating throughout the country.
- SaverOne expanded its footprint among private bus fleets
with over 160 new installations for various customers in the
private bus fleet sector in Israel.
- Universal Trucks Israel, importer of Isuzu Trucks to
Israel, to install SaverOne's in-cabin DDPS on additional 40
Isuzu vehicles. This follows the successful implementation of the
system in 100 Isuzu trucks in the first half of 2023. UTI
represents significant further potential with a fleet of over
13,000 trucks and buses in Israel.
- A pilot demonstration with Abu
Dhabi's Ministry of Transport was successfully concluded
on a number of public buses in Abu
Dhabi. The potential for this project is the installation of
the SaverOne system on the entire 900 bus fleet of Abu Dhabi's public transportation system.
There is further potential given the thousands of school buses
operated daily throughout the country, and ultimately SaverOne aims
to provide the SaverOne System throughout the United Arab Emirates.
- The Regional Council of Lev Hasharon to install the SaverOne
system on its 14 school buses. The vertical of public transport
is important in SaverOne's global penetration strategy.
- Shaltal, one of the largest vehicle transport fleets in
Israel, to install the SaverOne
systems across its fleet of 150 trucks. Following an initial
pilot phase of 25 vehicles, the agreement provides that the
SaverOne system will be installed on the remaining 125 trucks.
- EzFill Holdings in Miami,
Florida, started a pilot program with SaverOne, its first in
the United States on selected
fuel delivery trucks.
- Moviley Dror a leader in logistics and shipping for the
Israeli supply chain market, to install the SaverOne protection
system across its full fleet of 150 vehicles. Moviley Dror
works closely with leading international logistics companies,
representing further potential for SaverOne.
- SaverOne joins the European Union's regulatory committee on
driver distraction, the committee responsible for setting EU
regulations for vehicle manufacturers (OEMs) for in-vehicle
technologies that help detect driver distractions and improve road
safety. SaverOne will participate in discussions, provide feedback
and help craft regulations by contributing its strong expertise and
insights to reduce driver distractions and better protect
vulnerable road users.
- Electra Afikim to install the SaverOne System across its
entire bus fleet of ∼1,200 vehicles: Electra
Afikim is one of the largest public transportation operators in
Israel. The public transportation sector is a key vertical,
with potential to protect millions of vehicles, drivers, passengers
and VRUs worldwide.
- Leading Israeli construction group, Shapir Engineering,
specializing in infrastructure projects which operates a fleet of
hundreds of vehicles, including heavy trucks and cement trucks,
ordered the SaverOne System for an initial pilot of 20
trucks.
- Kfar Giladi Quarries installs SaverOne System on its full
fleet of trucks: One of the biggest companies in the quarrying
industry in Israel installed the
SaverOne System on its fleet of heavy trucks. This win brings an
additional heavy-industry customer, an important vertical, where
the potential fleet size just in Israel is estimated in the
tens of thousands.
- Emek Yizrael regional council installs SaverOne System on
all of its school buses: The full potential for this vertical
in Israel is 54 regional
councils. Furthermore, this vertical holds much more
significant potential with a goal of providing protection for
students traveling on school buses in the
United States, Europe and
elsewhere.
- SaverOne System Installed on the large food delivery trucks
of Shufersal – Israel's leading supermarket: The installation
of the SaverOne System was completed on a group of 19 large
delivery trucks with potential of the entire Shufersal truck fleet
of 150 delivery trucks. This vertical of delivery trucks is a key
growth area for SaverOne.
- New collaboration with Colmobil – Israel Importer for
Mercedez-Benz, Mitsubishi & Hyundai – to equip vehicles with
SaverOne protection system. Under the collaboration
agreement, Colmobil will work together with SaverOne to sell and
install the SaverOne System into vehicles that it leases to its
customers in order to prevent driver distraction from mobile phone
use. This collaboration adds another key player in the Israeli
market that will be able to lease vehicles to their customers with
a SaverOne System pre-installed.
- SaverOne System installed on 30 delivery trucks of Tempo
beverages- Israel's leading beverage company, out of the local
fleet of 120. Tempo represents leading global brands such as
PepsiCo, Nestle's premium water and iced tea brands, Nestea,
Perrier water, and many more. The vertical of delivery trucks
represents significant growth potential for SaverOne as well as
further potential with international brands.
Financial Summary for the First Half of 2023
Revenues increased by 286% to NIS 1,475 thousand (~$399
thousand) in the first half of 2023 compared to NIS 382 thousand (~$103
thousand) for the first half of 2022. This increase was
mainly the result of increased sales of the SaverOne System with
new and existing customers throughout the past year.
Gross profit increased by 306% to NIS 467 thousand (~$126
thousand), representing gross margin of 32% in the first
half of 2023 compared to NIS 115
thousand (~$31 thousand),
representing gross margin of 30%, in the first half of 2022.
Research and development expenses, net were
NIS 12.2 million (~$3.3 million) in the first half of 2023 compared
to NIS 10.2 million (~$2.8 million) in the first half of 2022. This
increase was due to the development of the Company's next
generation technology geared for international markets.
Selling and marketing expenses were NIS 1.4 million (~$392
thousand) in the first half of 2023 compared to NIS 0.5 million (~$130
thousand) in the first half of 2022. The increase is
attributable mainly to higher payroll and marketing expenses, as
part of the Company's efforts to increase sales.
General and administrative expenses were NIS 4.5 million (~$1.2
million) in the first half of 2023, compared to NIS 2.5 million (~$679
thousand) in the first half of 2022. The increase in
these expenses was mainly due to additional costs associated with
being a US listed public company as well as higher insurance
expenses.
Operating loss was NIS 17.6
million (~$4.8 million) in the
first half of 2023 compared to NIS 13.1
million (~$3.5 million) in the
first half of 2022, primarily due to increased operating expenses
as detailed above.
Financing expense, net, was NIS
115 thousand (~$31 thousand)
for the first half of 2023 compared to financing income, net, of
NIS 1.2 million (~$314 thousand) in the first half of 2022. The
increase is derived primarily from the higher appreciation of the
USD against the NIS in the first half of 2022 compared to the
appreciation of the USD against the NIS in the first half of
2023.
Net loss in the first half of 2023 was NIS 17.8 million (~$4.8
million), compared to NIS 11.9
million (~$3.2 million) for
the first half of 2022.
Cash and cash equivalents and short-term bank deposits as
of June 30, 2023, amounted to
NIS 18.6 million (~$5.0 million), compared with NIS 29.3 million (~$7.9
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 3.70 to
$1.00, based on the representative
exchange rate reported by the Bank of Israel on June 30, 2023.
Investor Webinar
The Company will also host a video conference call later today
via Zoom, starting at 9:00am ET.
Management will be available to answer questions after presenting
the results.
To participate in the Zoom call, please register at the
following link:
https://us06web.zoom.us/webinar/register/WN_eYAOJW7RRo22F9fQE7lnNA
Following registration, you will be sent the link to the
conference call which is accessible either via the Zoom app, or
alternatively from a dial-in telephone number. If you have an issue
with registration, please contact the investor relations team well
in advance of the call.
For those unable to participate, the call will be available for
replay through the same link, or from a link to the recording on
the Company's website beginning 24 hours after the call.
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 (navigation as an example), without user
intervention or consent, creating a safer driving
environment.
SaverOne's primary target markets include commercial and private
vehicle fleets 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 conditionand 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 our
technology to substantially improve the safety of drivers; our
planned level of revenues and capital expenditures and our ability
to continue as a going concern; the ability of our technology to
substantially improve the safety of drivers; our ability to market
and sell our products; our plans to continue to invest in research
and development to develop technology for both existing and new
products; our intention to advance our technologies and
commercialization efforts; our intention to use local distributors
in each country or region that we will conduct business to
distribute our products or technology; our plan to seek patent,
trademark and other intellectual property rights for our products
and technologies in the United States and
internationally, as well as our ability to maintain and protect the
validity of our currently held intellectual property rights; our
expectations regarding future changes in our cost of revenues and
our operating expenses; our expectations regarding our tax
classifications; interpretations of current laws and the passage of
future laws; acceptance of our 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 we operate; projected
capital expenditures and liquidity; our intention to retain key
employees, and our belief that we maintain good relations with all
of our employees; any resurgence of the COVID-19 pandemic and its
impact on our business and industry; 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 April 27,
2023 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.
STATEMENTS OF
FINANCIAL POSITION
|
(New Israeli Shekels
in thousands)
|
|
|
As of June
30,
|
As of December
31,
|
|
|
2023
|
2022
|
2022
|
|
|
Unaudited
|
Audited
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
14,773
|
41,075
|
19,240
|
Short-term bank
deposits
|
|
3,805
|
-
|
10,070
|
Trade
receivables
|
|
1,860
|
374
|
1,097
|
Other current
assets
|
|
921
|
958
|
1,016
|
Inventory
|
|
3,451
|
855
|
2,026
|
Total current
assets
|
|
24,810
|
43,262
|
33,449
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property and equipment,
net
|
|
252
|
211
|
218
|
Restricted
deposits
|
|
206
|
197
|
201
|
Right of use asset,
net
|
|
354
|
780
|
567
|
Total non-current
assets
|
|
812
|
1,188
|
986
|
Total
assets
|
|
25,622
|
44,450
|
34,435
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
loan
|
|
7,097
|
-
|
-
|
Current maturities of
leasing liabilities
|
|
429
|
467
|
467
|
Trade
payables
|
|
2,896
|
778
|
1,956
|
Other current
liabilities
|
|
2,456
|
3,642
|
2,872
|
Derivative warrants
liability
|
|
1,819
|
4,023
|
1,151
|
Liability in respect of
government grants
|
|
401
|
109
|
335
|
Total current
liabilities
|
|
15,098
|
9,019
|
6,781
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Liability in respect of
government grants
|
|
970
|
1,173
|
919
|
Leasing liability, net
current
|
|
-
|
395
|
181
|
Total non-current
liabilities
|
|
970
|
1,568
|
1,100
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Share capital and
premium
|
|
118,559
|
112,708
|
118,284
|
Capital reserve in
respect of share-based payment
|
|
10,523
|
9,868
|
10,045
|
Accumulated
deficit
|
|
(119,528)
|
(88,713)
|
(101,775)
|
Total shareholders'
equity
|
|
9,554
|
33,863
|
26,554
|
Total liabilities
and shareholders' equity
|
|
(25,622)
|
44,450
|
34,435
|
STATEMENTS OF
COMPREHENSIVE LOSS
|
(New Israeli Shekels
in thousands, except per share and share data)
|
|
|
Six Months Ended
June 30,
|
Year Ended
December 31,
|
|
|
2023
|
2023
|
2022
|
|
|
Unaudited
|
Audited
|
|
|
|
|
|
Revenues
|
|
1,475
|
382
|
1,193
|
Cost of
revenues
|
|
1,008
|
(267)
|
(829)
|
Gross
profit
|
|
467
|
115
|
364
|
|
|
|
|
|
Research and
development expenses, net
|
|
(12,188)
|
(10,184)
|
(21,490)
|
Selling and marketing
expenses
|
|
(1,449)
|
(481)
|
(1,591)
|
General and
administrative expenses
|
|
(4,468)
|
(2,511)
|
(6,492)
|
Operating
loss
|
|
(17,638)
|
(13,061)
|
(29,209)
|
|
|
|
|
|
Financing
expenses
|
|
(800)
|
(869)
|
(852)
|
Financing
income
|
|
685
|
2,030
|
5,099
|
Financing income
(expenses), net
|
|
(115)
|
1,161
|
4,247
|
Loss for the
period
|
|
(17,753)
|
(11,900)
|
(24,962)
|
Comprehensive loss
for the period
|
|
(17,753)
|
(11,900)
|
(24,962)
|
|
|
|
|
|
Basic and
diluted loss per share
|
|
(0.64)
|
(1.15)
|
(1.44)
|
Weighted average of
number of shares
used to calculate the basic and diluted loss per
share
|
|
27,839,012
|
10,334,303
|
17,300,596
|
CASH FLOW
STATEMENT
|
(New Israeli Shekels
in thousands)
|
|
|
Six Months Ended
June 30,
|
Year Ended
December 31,
|
|
|
2023
|
2022
|
2022
|
|
|
Unaudited
|
Audited
|
|
|
|
|
|
Cash flow from
operating activity
|
|
|
|
|
Comprehensive loss for
the period
|
|
(17,753)
|
(11,900)
|
(24,962)
|
Adjustments required to
present cash flows from
operating activities (Appendix A)
|
|
(214)
|
(12)
|
(3,408)
|
Net cash used in
operating activities
|
|
(17,967)
|
(11,912)
|
(28,370)
|
|
|
|
|
|
Cash flows from
investment activity
|
|
|
|
|
Change in restricted
deposits
|
|
(5)
|
(6)
|
-
|
Changes in short-term
deposits
|
|
6,265
|
5,012
|
(5,058)
|
Purchase of property
and equipment
|
|
(75)
|
(4)
|
(62)
|
Net cash provided by
(used in) investment activity
|
|
6,185
|
5,002
|
(5,120)
|
|
|
|
|
|
Cash flows from
financing activity
|
|
|
|
|
Loans
Received
|
|
7,170
|
-
|
-
|
Proceeds from issuance
of ADS through private
placement transaction
|
|
-
|
-
|
5,141
|
Proceeds from issuance
of ADS resulted from exercise
of equity-line
|
|
188
|
-
|
-
|
Net proceeds from
issuance of ADS, pre-funded
warrants and warrants through initial public offering
|
|
-
|
37,578
|
37,298
|
Repayment of principal
in respect of lease liability
|
|
(234)
|
(234)
|
(467)
|
Net cash provided by
financing activity
|
|
7,124
|
37,344
|
41,972
|
|
|
|
|
|
|
|
|
|
|
Change in balance of
cash and cash equivalents
|
|
(4,658)
|
30,434
|
8,482
|
|
|
|
|
|
Exchange differences
on cash and cash equivalents
|
|
191
|
1,958
|
2,075
|
|
|
|
|
|
Balance of cash and
cash equivalents, beginning of period
|
|
19,240
|
8,683
|
8,683
|
|
|
|
|
|
Balance of cash and
cash equivalents, end of period
|
|
14,773
|
41,075
|
19,240
|
International
Investor Relations Contact:
Ehud Helft
+1 212 378 8040
saverone@ekgir.com
Israeli
Investors Contact:
Jonathan
Eilat
John@theinvestor.co.il
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