We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Albert Technologies Ltd | LSE:ALB | London | Ordinary Share | IL0011354904 | ORD NIS0.01 (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 8.00 | 6.50 | 9.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMALB
RNS Number : 6377R
Albert Technologies Ltd
25 September 2017
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.
25 September 2017
Albert Technologies Ltd.
("Albert Technologies" or the "Company")
Interim results for the six months ended 30 June 2017
Albert Technologies (AIM: ALB) today announces half year results for the six months ended 30 June 2017. The Company continues to execute its core development strategy, with revenue from its pioneering AI-based SaaS marketing platform on a good growth trajectory.
Operational highlights
-- Good progress deploying SaaS artificial intelligence marketing platform
o Increase of 240% in monthly recurring revenues, 180% in average monthly revenue per customer, and growing number of paying customers, during the period December 2016 to June 2017
o 12-month rolling contract with global nutrition company announced in March 2017
o Strategic partnership with leading business services group in Australia and NZ
o Expansion of sales, marketing and R&D activity to support future growth
o Industry recognition for Albert technology- International Business Award for "Best New Product"
-- As expected, continued market challenges significantly impacted revenues and margins of Indirect and Performance Sales channels, which operate through the Company's wholly owned subsidiary, All Aspect
o Net loss from this business during the first half of the year
o The Board is currently reviewing the quality of earnings of this business and its prospects and is considering a disposal of All Aspect. It is expected that a disposal of All Aspect will result in a fundamental change of business of the Company under Rule 15 of the AIM Rules and would therefore be conditional on the approval of shareholders. It is anticipated that a nominal value would be attributed to All Aspect given its reliance the Company's technology, which would remain proprietary to the Company.
Financial summary
-- Overall performance reflects continuing challenges in Indirect Sales and Performance Sales channels, combined with rapid revenue growth in SaaS
o Revenues lower at $4.4m (H1 2016: $8.7m)
o Adjusted EBITDA loss of $(6.2m) (H1 2016: $(2.7m))
o SaaS revenues for the period represent 10% of total revenues
o SaaS gross profit represents 45% of total gross profit
-- Continued close cash control - net cash balance, including short-term bank deposits of $16.9m (30 June 2016: $28.1m), representing $0.27 cash per share.
Current trading
-- Continued growth in SaaS monthly recurring revenues post period-end
-- Number of customers, as well as average monthly revenue per customer, continued to grow post period-end
-- SaaS gross profit currently tracking at more than 50% of total gross profit
Or Shani, Chief Executive Officer of Albert Technologies, commented:
"The first half of 2017 marked an important transition for Albert Technologies. The rollout of Albert 2.0 - our AI-based market platform - was highly successful and has delivered significant contract wins and partnerships. This reflects the long-term structural demand for the automated, efficient marketing solutions we offer.
As expected, our Indirect and Performance Sales businesses continued to be impacted by market challenges and showed weak results in the first half of the year. Our strategic focus is on developing the high-quality earnings SaaS platform and therefore, the Board is currently reviewing the quality of earnings, as well as the prospects of the Indirect and Performance Sales businesses."
"We have developed AI-based marketing technology which is attracting growing market recognition and we continue to develop Albert's customer base with an increasing number of SaaS pilots now underway with leading global brands. We therefore expect to further expand Albert's customer base during the remainder of the financial year and the Board is focused on delivering growth and building shareholder value."
For further information, please contact:
Hot Features
Premium
Albert Technologies Tel: +972
Ltd. 3537 7137
Or Shani, Chief Executive
Officer
Yoram Freund, Chief
Financial Officer
https://albert.ai/
Liberum (NOMAD and Tel: +44 20
Broker) 3100 2000
Neil Patel / Chris
Clarke
Joanna Davidson (PR) Tel: +44 77
3190 2092
OPERATIONAL REVIEW
INTRODUCTION
The first half of 2017 was an important period in the transition and evolution of Albert Technologies. We continued our rollout of our SaaS marketing platform, Albert, which is our core driver of future growth.
Initial deployment of Albert 2.0 has been successful. Having launched the new product in 2016 and established our sales and marketing office in New York, in the first half of 2017 we secured significant contract wins, as well as strategic partnerships. This reflects the long-term structural demand for the automated, efficient marketing solutions we offer. We will seek further partnerships as an effective way of accelerating market penetration while maintaining good cost control.
To ensure the scalability of our business model and support further growth, we have continued to increase investment in Sales and Marketing and R&D activity. During the period, we doubled our sales team in the United States, as well as increased our R&D efforts to enhance the scalability and performance of our SaaS solution.
As previously announced, the ecosystem in which the Indirect business operates experienced severe disruption commencing in late 2015. Advertising exchanges purged a significant portion of media running through their platforms in order to seek to reduce the amount of fraudulent inventory. Many exchanges consolidated or merged. In parallel, the market started to shift from using open exchanges to private and self-serve exchanges, mainly being the relatively "walled" platforms of Google and Facebook. This disruption resulted in loss of supply for major online advertising exchanges and a loss of demand from major media buyers, the result of which was a dramatic decrease in transaction volumes and significant pressure on margins in the industry.
As a result, the Company continues to witness a decline in its revenues from the Indirect and Performance Sales businesses, accompanied by a continued decline in margins, which resulted in losses from these businesses for the first half of 2017.
Our overall financial performance reflects these pressures, accompanied by the rapid growth in SaaS, with total revenues lower at $4.4m (H1 2016: $8.7m), and adjusted gross margin of 19%, compared to 26% in H1 2016.
The challenging market conditions in Indirect Sales, as well as investment for long-term growth in our SaaS business, resulted in a loss before interest, tax, depreciation and amortization of $6.2m (H1 2016: $2.7m loss). Adjusted R&D investment increased to $3.0m (H1 2016: $2.2m), and Adjusted Sales and Marketing expenses increased to $2.9m (H1 2016: $1.5m).
We continued to maintain close cash control, with a net cash balance of $16.9m (30 June 2016: $28.1m). We believe we have sufficient resources to continue our investment in growth of our SaaS business.
In July 2017, the Directors of the Company changed the name of the Company from Adgorithms Ltd. to Albert Technologies Ltd.. The Directors believe this better reflects the Company's core business of developing and promoting the Albert technology behind its Software as a Service product. It also comes as a result of increasing recognition for Albert, both in terms of his growing customer base and recent awards.
The management team was strengthened with the appointment of Yoram Freund as Chief Financial Officer in April 2017. Mr Freund comes with significant financial leadership experience within the technology industry, having held senior finance positions within Radware Ltd. (a large NASDAQ listed company).
Adjusted* Financial Review
Year ended
Six months ended 30 June 31 December
2017 2016 2016
$'000 $'000 Diff $'000
Revenues 4,393 8,691 (4,298) 16,403
Cost of revenues* (3,547) (6,453) 2,906 (13,247)
gross profit 846 2,238 (1,392) 3,156
-------- -------- -------- ------------
% of revenues 19% 26% 19%
Research and Development
expenses* (3,033) (2,195) (838) (5,096)
Selling and Marketing
expenses* (2,895) (1,485) (1,410) (4,161)
General and Administrative
expenses* (1,139) (1,225) 86 (1,821)
Total operating
expenses (7,067) (4,905) (2,162) (11,078)
-------- -------- -------- ------------
Operating profit
(loss)* (6,221) (2,667) (3,554) (7,922)
-------- -------- -------- ------------
* Non-IFRS and unaudited, excludes share based compensation expenses of $221K (COGS-$5K, R&D-$72K, S&M-$115K and G&A-$29K), $774K (COGS-$13K, R&D-$430K, S&M-$127K and G&A-$204K) and $1,064K (COGS-$20K, R&D-$519K, S&M-$366K and G&A-$159K) for the six months ended 30 June 2017 and 30 June 2016 and for the year 2016, respectively, depreciation expenses of $47K (R&D-$34K, S&M-$11K and G&A-$2K), $37K (COGS-$1K, R&D-$26K, S&M-$6K and G&A-$4K) and $85K (COGS-$1K, R&D-$45K, S&M-$9K and G&A-$30K) for the six months ended 30 June 2017 and 30 June 2016 and for the year 2016, respectively.
PROGRESS WITH GROWTH STRATEGY
Albert's recent SaaS contract wins underlines our confidence and belief in this pioneering platform, and has translated into meaningful SaaS revenues and momentum.
Central to Albert's strategy has been the adoption of its "Land and Expand" approach, supported by an extended sales team. Brands benefit from the opportunity to test Albert in a relatively small, controllable setting such as a trial in one channel (e.g. Facebook) or one sub-brand or geographical market. Brand managers have been able to access Albert's dashboard and trial its effectiveness in terms of speed and cost. A key advantage of Albert, as opposed to the more established "marketing clouds" for example, is its ease of implementation. Whereas a brand would need to invest significant time and financial resource to implement an established marketing cloud, Albert can be connected in days, with no external set up costs to the brand.
BUSINESS SUMMARY
SaaS channel
The Board is highly encouraged by the progress in the SaaS business. Monthly recurring revenues have more than tripled in the period, and SaaS revenues now represent 10% of total revenues for the six months to 30 June 2017.
Recent business wins underline the success of the Company's SaaS rollout, and validates the significant value the platform can generate.
In March 2017, we secured a 12-month rolling contract with one of the world's largest nutrition, health and wellness companies. As part of this agreement, Albert Technologies will deploy Albert across all this customer's online advertising campaigns, focusing on its leading brand within its largest South American market. Management expects this contract to generate a minimum of $0.3m of annual SaaS fees. This contract win followed a four-month pilot in which Albert was compared with the customer's existing advertising agency, which is a subsidiary of a leading global network. During the pilot, Albert consistently delivered superior return on investment metrics when compared to previous campaigns managed by the incumbent agency. In addition, Albert provided greater transparency, control and valuable marketing insight during the pilot.
After the period end, in July 2017, the Company announced a strategic partnership with a leading business services group in Australia and New Zealand. Under the agreement, the business services group has the right to distribute Albert to brands direct and to agencies. This guarantees minimum SaaS revenues during the first year of $0.8m, and carries the potential to become a significant revenue opportunity in the second and third years of activity. As with the contract win outlined above, this partnership was agreed following a successful trial period. Within 24 hours of deployment, Albert identified and executed thousands of marketing actions, which could have taken a human marketing expert up to a year. Furthermore, the partner's customer acquisition costs were reduced by more than a quarter within 30 days.
SaaS revenues are becoming increasingly meaningful, supported by these recent contract wins and ongoing sales and marketing activity. As a result of the rapid market acceptance to Albert, during the first half of the year we've changed some of our sales policies and client minimal thresholds. This is in order to focus on bigger clients that represent higher revenue per client. Such changes resulted in increase of 180% in the average monthly revenue per customer and 25% in the number of paying customers, during the period December 2016 to June 2017.
SaaS gross profit represents 45% of total gross profit for the 6 months to 30 June 2017.
Indirect channel
As previously set out, the ecosystem in which the Indirect business operates experienced severe disruption commencing in late 2015. This disruption resulted in a dramatic decrease in transaction volumes and significant pressure on margins in the industry.
The decline in revenues from the Indirect and Performance Sales business, , which operate through the Company's wholly owned subsidiary (All Aspect), accompanied by continued decline in margins, resulted in losses from this business for the first half of 2017.
The Board is currently reviewing the quality of earnings of this business and its prospects and is considering a disposal of All Aspect. It is expected that a disposal of All Aspect will result in a fundamental change of business of the Company under Rule 15 of the AIM Rules and would therefore be conditional on the approval of shareholders. It is anticipated that a nominal value would be attributed to All Aspect given its reliance the Company's technology, which would remain proprietary to the Company.
SUMMARY AND OUTLOOK
Albert Technologies achieved some important milestones in the first half of 2017 in the rollout of Albert - our AI-based SaaS market platform. We believe the significant contract wins and partnership agreements secured during the period reflects the long-term structural demand for the technology-led simple and efficient marketing solutions we offer.
We have invested for long-term growth, and as we continue to develop Albert's customer base and conduct pilots with leading global brands, we expect to report further progress in the rollout of the SaaS product second half of the year. The Board is focussed on building shareholder value and remains confident in the overall long-term growth prospects of the Company.
About Albert Technologies Ltd.
Albert (AIM: ALB.L) is the first-ever fully autonomous artificial intelligence marketing platform, driving digital marketing campaigns from start to finish for some of the world's leading brands. Albert's mission is to liberate businesses from the complexities of digital marketing-not just by replicating their existing efforts, but by executing them at a pace and scale not previously possible. He serves as a highly intelligent and sophisticated member of brands' marketing teams, wading through mass amounts of data, converting this data into insights, and autonomously acting on these insights, across channels, devices and formats, in real time. This eliminates the manual and time-consuming tasks that currently limit the effectiveness and results of modern digital advertising and marketing. Brands such as Harley Davidson, EVISU, The Big Red Group, and Dole Asia credit Albert with significantly increased sales, an accelerated path to revenue, the ability to make more informed investment decisions, and reduced operational costs.
The Company operates an Indirect Sales Channel, where its technology is deployed in advertising exchanges to match undervalued inventory with suitable demand as well as the strategically significant SaaS Sales Channel, which offers its artificial intelligence-based software, Albert, to brands using a SaaS model. Albert Technologies Ltd. listed in 2015 to accelerate both investment into and commercialisation of Albert.
The Company and Albert have received many awards in its short existence, including two platinum MarCom awards and silver in the Best in Biz awards 2016 for best new product of the year. Albert was also named AI Application of the Year by The Global Annual Achievement Awards for Artificial Intelligence.
About Albert
Albert replaces the human campaign manager in managing a brand's online advertising campaigns. A brand provides Albert with access to its Google, Facebook, Bing, Twitter and other online marketing channels. When a brand manager wishes to launch a new online advertising campaign, she simply logs into Albert and deploys that new campaign, which is usually no more than a 15 minute task.
Albert autonomously creates hundreds of micro campaigns across all relevant online marketing channels (Google, Facebook, Bing, Twitter, Instagram, Display, Email, etc), then reviews these hundreds of micro campaigns every few minutes and optimises each of them as needed. Albert works in very much the same way that a human campaign manager would, making correlation and cost/benefit based decisions.
Where an experienced campaign manager could possibly make circa 100 decisions per day, Albert can make thousands per minute. Albert's ability to launch hundreds of micro strategies and review and amend them all every few minutes typically brings about a significant increase in ROI. In addition, all learnings from the decisions made remain in house, so the brand has full and instant transparency and can easily scale up marketing activity through larger budgets or application to new brands and new geographies without hiring new expert campaign managers.
FORWARD LOOKING STATEMENT
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect Albert Technologies' view with respect to future events as at the date of this announcement. Save as required by law or by the AIM Rules for Companies, Albert Technologies undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect events or circumstances after the date of this announcement.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands
30 June 31 December
2017 2016
--------- -----------
Unaudited Audited
--------- -----------
CURRENT ASSETS:
Cash and cash equivalents $7,877 $22,577
Short-term bank deposits 9,043 -
Restricted cash 192 187
Trade receivables, net 2,311 3,239
Other accounts receivable and prepaid
expenses 505 361
--------- -----------
Total current assets 19,928 26,364
--------- -----------
NON-CURRENT ASSETS:
Property and equipment, net 236 228
Total non-current assets 236 228
--------- -----------
Total assets $20,164 $26,592
========= ===========
The accompanying notes are an integral part of the interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands
30 June 31 December
2017 2016
--------- -----------
Unaudited Audited
--------- -----------
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade payables $1,823 $2,306
Other accounts payable and accrued
expenses 1,274 981
--------- -----------
Total current liabilities 3,097 3,287
--------- -----------
NON-CURRENT LIABILITIES:
Employee benefit liabilities, net 115 112
--------- -----------
EQUITY:
Share capital -
Ordinary shares 161 160
Share premium 39,367 39,146
Capital reserve (193) (193)
Accumulated deficit (22,383) (15,920)
--------- -----------
Total equity 16,952 23,193
--------- -----------
Total liabilities and equity $20,164 $26,592
========= ===========
The accompanying notes are an integral part of the interim consolidated financial statements.
22 September 2017
-------------------- ---------------- ----------------
Date of approval Or Shani Yoram Freund
of the
financial statements CEO and Director CFO and Director
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share data)
Six months ended Year ended
30 June 31 December
----------------------
2017 2016 2016
---------- ---------- ------------
Unaudited Audited
---------------------- ------------
Revenues $4,393 $8,691 $16,403
Cost of revenues 3,552 6,467 13,268
---------- ---------- ------------
Gross profit 841 2,224 3,135
---------- ---------- ------------
Operating expenses:
Research and development 3,139 2,651 5,710
Sales and marketing 3,021 1,687 4,536
General and administrative 1,170 1,433 2,010
Total operating expenses 7,330 5,771 12,256
---------- ---------- ------------
Operating loss (6,489) (3,547) (9,121)
Financial income 100 55 105
Financial expenses (11) (86) (148)
Loss before taxes on income (6,400) (3,578) (9,164)
Taxes on income (63) - (50)
---------- ---------- ------------
Net loss $(6,463) $(3,578) $(9,214)
---------- ---------- ------------
Net loss per share attributable
to the Company's shareholders
(in $)
Basic and diluted loss per
Ordinary share $(0.10) $(0.06) $(0.15)
========== ========== ============
Weighted average number of
shares of Common stock used
in computing basic and diluted
net loss per share 61,744,259 61,698,853 61,703,256
========== ========== ============
The accompanying notes are an integral part of the interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands
Share Capital Accumulated Total
Share capital premium reserve deficit equity
------------- -------- -------- ------------ -------
Balance as of 1
January 2016 (audited) $160 $38,082 $(193) $(6,706) $31,343
Exercise of options *) - - - - *) -
Cost of share-based
payment, net - 1,064 - - 1,064
Total comprehensive
loss - - - (9,214) (9,214)
Balance as of 31
December 2016
(audited) 160 39,146 (193) (15,920) 23,193
Exercise of options 1 - - - 1
Cost of share-based
payment, net - 221 - - 221
Total comprehensive
loss - - - (6,463) (6,463)
Balance as of 30
June 2017 (unaudited) 161 39,367 (193) (22,383) 16,952
============= ======== ======== ============ =======
*) Represents an amount lower than $ 1.
The accompanying notes are an integral part of the interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands
Share Capital Accumulated Total
Share capital premium reserve deficit equity
------------- -------- -------- ----------- -------
Balance as of 1
January 2016 (audited) 160 38,082 (193) (6,706) 31,343
Cost of share-based
payment - 774 - - 774
Total comprehensive
loss - - - (3,578) (3,578)
------------- -------- -------- ----------- -------
Balance as of 30
June 2016 (unaudited) 160 38,856 (193) (10,284) 28,539
============= ======== ======== =========== =======
The accompanying notes are an integral part of the interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six months ended Year ended
30 June 31 December
------------------
2017 2016 2016
-------- -------- ------------
Unaudited Audited
------------------ ------------
Cash flows from operating
activities:
Net loss $(6,463) $(3,578) $(9,214)
-------- -------- ------------
Adjustments to reconcile net
income to net cash provided
by operating activities:
Adjustments to the profit
or loss items:
Share-based payment 221 774 1,064
Tax expense 63 - 50
Depreciation 47 37 85
Exchange rate differences
in respect of cash and cash
equivalents (53) 77 105
-------- -------- ------------
278 888 1,304
-------- -------- ------------
Changes in asset and liability
items:
Increase in restricted cash (5) (1) -
Decrease in trade receivables 928 854 1,501
Decrease (increase) in other
accounts receivable 47 (148) (104)
Decrease in trade payables (483) (1,679) (1,511)
Increase in other accounts
payable 230 932 90
Accrued interest on short-term
bank deposits (43) - -
Change in employee benefit
liabilities, net 3 12 27
677 (30) 3
-------- -------- ------------
Cash paid and received during
the year for:
Taxes paid (191) (94) (229)
-------- -------- ------------
Net cash used in operating
activities (5,699) (2,814) (8,136)
-------- -------- ------------
The accompanying notes are an integral part of the interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six months ended Year ended
30 June 31 December
------------------
2017 2016 2016
--------- ------- ------------
Unaudited Audited
------------------ ------------
Cash flows from investing
activities:
Purchase of property and equipment $(55) $(133) $(195)
Investment in short-term bank
deposits (9,000) - -
Investment in restricted cash - - (136)
Net cash used in investing
activities (9,055) (133) (331)
--------- ------- ------------
Cash flows from financing
activities:
Exercise of options 1 - *) -
IPO proceeds, net - (40) (40)
--------- ------- ------------
Net cash provided by (used
in) financing activities 1 (40) (40)
--------- ------- ------------
Exchange rate differences
in respect of cash and cash
equivalents 53 (77) (105)
--------- ------- ------------
Decrease in cash and cash
equivalents (14,700) (3,064) (8,612)
Cash and cash equivalents
at the beginning of the period 22,577 31,189 31,189
--------- ------- ------------
Cash and cash equivalents
at the end of the period $7,877 $28,125 $22,577
========= ======= ============
Significant non-cash transactions:
IPO expenses $- $- $40
========= ======= ============
The accompanying notes are an integral part of the interim consolidated financial statements.
NOTE 1:- GENERAL a. Company description:
Albert Technologies Ltd. (formerly: Adgorithms Ltd.) ("the Company") was incorporated under the laws of Israel and commenced operations in September 2010. The Company's registered address is 20 Lincoln Street, Tel-Aviv, Israel.
The Company offers Artificial Intelligence-based software ("Albert") to brands using a SaaS model, as well as engaged in the field of solutions for online advertising. The Company develops and deploys algorithmic solutions aiming to maximize return on income ("ROI") for the brand advertiser. The Company operates across the channels of video, display, social, search and e-mail marketing on the platforms of desktop and mobile.
The Company's shares are admitted for trading on AIM, commencing June 2015, under the symbol "ALB" (formerly "ADGO").
b. The Company has a wholly-owned subsidiary in the United States, Adgorithms Inc., which is engaged in the distribution of the Company's products and services in the United States, as well as provides the Company with advisory and management services.
The Company also has a wholly-owned subsidiary in Israel, AA Digital Media (All Aspects) Ltd. which commenced operating in November 2016, and is engaged in trading media in various strategies with an array of participants in the online advertising value chain.
In May 2017, the Company established a wholly-owned subsidiary in Brazil, Adgorithms Brasil Internet Ltda, which commenced operating in May 2017, and is engaged in the distribution of the Company's products and services in Brazil.
c. The interim consolidated financial statements were approved for issuance by the Board of Directors on 22 September 2017.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the interim consolidated financial statements have been applied consistently with those followed in the annual consolidated financial statements for all periods presented, unless otherwise stated.
a. Revenues
The Company generates direct (performance) and in-direct revenues, as well as SaaS ("Software as a Service") revenues which are being recognized ratably over the term of the service period and are reported on a net basis based on the Company's evaluation of the accounting guidance for principal-agent considerations.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) b. Unaudited interim financial information
The accompanying unaudited interim consolidated financial statements have been prepared in a condensed format in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS as adopted by the EU") for interim financial information. Accordingly, they do not include all the information and footnotes required by IFRS as adopted by the EU for complete financial statements, and therefore, they should be read in conjunction with the annual consolidated financial statements as of 31 December 2016. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six-month period ended 30 June 2017 are not necessarily indicative of the results that may be expected for the year ended 31 December 2017.
c. Disclosure of new standards in the period prior to their adoption
As discussed in Note 2q to the 2016 annual consolidated financial statements, the Company is currently analyzing the potential impacts of IFRS 15, "Revenue from Contracts with Customers", while working on the transition. A specific analysis is in progress regarding the accounting of principal vs agent considerations and the disclosures required by IFRS 15 in the financial statements. The Company will comment on the impacts of IFRS 15 in its results for the second half of 2017 and confirm its choice in respect of the transition method.
NOTE 3:- COMMITMENTS
On 6 September 2016, a statement of claim was filed against the Company, the Company's CEO and founder, Mr. Or Shani, and the Company's former CFO, Mr. Ron Stern (the "Defendants") by Mr. Tal Saar (the "Plaintiff"), a former service provider of the Company, with the Magistrate Court of Tel-Aviv, Israel (the "Court") claiming, among other things, that the Defendants are liable for certain fees due to such service provider (the "Claim"). A statement of defense and a motion to dismiss the Claim were filed by the Defendants with the Court on 20 November 2016 and 30 December 2016, respectively. A pre-trial hearing was held on 22 March 2017 and a second pre-trial hearing is scheduled for 24 September 2017.
On 29 March 2017, the Plaintiff filed with the Court a "statement of status and position", in which he requested to amend the remedy initially requested under the statement of claim, so that it will be NIS 600 thousands (approximately $ 171, based on the exchange rate as of 30 June 2017). On 18 May 2017, the Defendants filed a response to the Plaintiff's statement, requesting the Court to deny the Plaintiff's request. On 29 May 2017, the Court ruled that this matter will be discussed in the pre-trial hearing scheduled for 24 September 2017.
No provision in respect of the Claim was recorded in the financial statements as of 30 June 2017, as the Company's current position is that all allegations are groundless and it is unlikely that any allegations brought against the Company, Mr. Shani and Mr. Stern will be accepted by the Court. However, due to the early stages of the proceedings, the Company cannot predict with certainty as to the final outcome of the Claim.
NOTE 4:- EQUITY a. Share-based payments:
In October 2013, the Board of Directors of the Company adopted the Company's 2013 Share Option Plan ("Plan"). The Plan provides for the grant of options to purchase Ordinary shares of the Company to employees, officers, directors, consultants and advisors of the Company.
The share-based payment transactions that the Company granted to its employees are described below.
b. Option issued to employees:
Options granted under the Plan expire 10 years from the vesting commencing date. The options generally vest over three years (1/3 at each year).
The following table lists the number of share options, the weighted average exercise prices of share options and movement in options during the period:
Year ended
Six months ended 31 December
30 June 2017 2016
---------------------- ----------------------
Weighted Weighted
average average
Number exercise Number exercise
of options Price of options Price
----------- --------- ----------- ---------
Outstanding at
beginning of year 5,395,912 $0.489 4,536,448 $1.399
Granted 1,297,253 0.312 3,072,981 0.219
Exercised (488,262) 0.003 (26,418) 0.003
Forfeited (1,047,794) 0.862 (2,187,099) 1.504
----------- --------- ----------- ---------
Outstanding at
end of period 5,157,109 $0.444 5,395,912 $0.489
=========== ========= =========== =========
Exercisable at
end of period 1,747,973 0.683 1,217,125 0.606
=========== ========= =========== =========
NOTE 4:- EQUITY (Cont.)
The weighted average fair value of options granted for the six months ended 30 June 2017 is $ 0.26.
c. Option issued to non-employees:
The following table lists the number of share options, the weighted average exercise prices of share options and movement in options during the period:
Year ended
Six months ended 31 December
30 June 2017 2016
---------------------- ----------------------
Weighted Weighted
average average
Number exercise Number exercise
of options Price of options Price
----------- --------- ----------- ---------
Outstanding at
beginning of year 506,975 $0.003 506,975 $0.003
Granted 158,504 0.003 - -
Exercised - - - -
Forfeited - - - -
----------- --------- ----------- ---------
Outstanding at
end of period 665,479 $0.003 506,975 $0.003
=========== ========= =========== =========
Exercisable at
end of period 480,557 0.003 242,801 0.003
=========== ========= =========== =========
d. Cost of share-based payment:
The cost of share based payments recognized in profit or loss for services received from employees and consultants is shown in the following table:
Six months ended Year ended
30 June 31 December
------------------
2017 2016 2016
-------- -------- ------------
Unaudited Audited
------------------ ------------
Cost of revenues $5 $13 $20
Research and development,
net 72 430 519
Selling and marketing 115 127 366
General and administrative 29 204 159
-------- -------- ------------
$221 $ 774 $1,064
======== ======== ============
NOTE 5:- REPORTABLE SEGMENTS
In the six-month period ended 30 June 2017, revenues from the in-direct channel amounted to $ 3,110 (compared to revenues of $ 8,190 in the first six months of 2016, and $ 15,063 in fiscal year 2016), revenues from the performance channel amounted to $ 832 (compared to revenues of $ 422 in the first six months of 2016, and $ 1,130 in fiscal year 2016), and revenues from the SaaS channel amounted to $ 451 (compared to revenues of $ 79 in the first six months of 2016, and $ 210 in fiscal year 2016).
In the six-month period ended 30 June 2017, no single customer represented 10% or more of the Company's revenues. In the six-month period ended 30 June 2016, one single customer represented 49% of the Company's revenues, the second largest customer represented 11% of the Company's revenues, and all other customers represented individually less than 10% of the Company's revenues. In fiscal year 2016, one single customer represented 39% of the Company's revenues, the second largest customer represented 12% of the Company's revenues, and all other customers represented individually less than 10% of the Company's revenues.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LIMPTMBTTBPR
(END) Dow Jones Newswires
September 25, 2017 02:01 ET (06:01 GMT)
1 Year Albert Technologies Chart |
1 Month Albert Technologies Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
