MTI WIRELESS EDGE LTD. (An Israeli Corporation)

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

AS OF MARCH 31, 2024

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

AS OF MARCH 31, 2024

TABLE OF CONTENTS

Page

Interim Consolidated Statements of Comprehensive Income

2

Interim Consolidated Statements of Changes in Equity

3-5

Interim Consolidated Statements of Financial Position

6-7

Interim Consolidated Statements of Cash Flows

8-9

Notes to Interim Consolidated Financial Statements

10-14

______________________

_____________

______

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME

Three month period ended

Year ended

March 31,

December 31,

2024

2023

2022

U.S. $ in thousands

(Except per share data)

Unaudited

Revenues

11,240

11,285

45,634

Cost of sales

7,770

7,666

30,963

Gross profit

3,470

3,619

14,671

Research and development expenses

229

293

1,047

Distribution expenses

893

947

3,709

General and administrative expenses

1,231

1,324

5,278

Loss (profit) from sale of property, plant and equipment

)67(

)10(

13

Profit from operations

1,184

1,065

4,650

Finance expenses

238

105

342

Finance income

)198(

(155)

)527(

Profit before income tax

1,144

1,115

4,835

Tax expenses

209

233

759

Profit

935

882

4,076

Other comprehensive income (loss) net of tax:

Items that will not be reclassified to profit or loss:

Re-measurement of defined benefit plans

-

-

62

Items that may be reclassified to profit or loss:

Adjustment arising from translation of financial

)112(

(98)

)216(

statements of foreign operations

Total other comprehensive income (loss)

)112(

(98)

)154(

Total comprehensive income

823

784

3,922

Profit attributable to:

Owners of the parent

932

894

4,045

Non-controlling interests

3

(12)

31

935

882

4,076

Total comprehensive income attributable to:

Owners of the parent

820

796

3,891

Non-controlling interests

3

(12)

31

823

784

3,922

Earnings per share (dollars)

Basic and Diluted (dollars per share)

0.0106

0.0101

0.0458

Weighted average number of shares outstanding

Basic and Diluted (dollars per share)

88,123,635

88,510,072

88,283,490

The accompanying notes form an integral part of the financial statements.

- 2 -

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY

For the three month period ended March 31, 2024 (Unaudited):

Attributable to owners of the parent

Total

Additional

attributable

Non-

Share

paid-in

Translation

Retained

to owners of

controlling

Total

capital

capital

differences

earnings

the parent

interest

equity

U.S. $ in thousands

Balance at January 1, 2024

209

23,061

(466)

5,226

28,030

1,222

29,252

Changes during the three month period

ended March 31, 2023:

Comprehensive income

Profit for the period

-

-

-

932

932

3

935

Other comprehensive income

Translation differences

-

-

(112)

-

(112)

-

(112)

Total comprehensive income for the period

-

-

(112)

932

820

3

823

Acquisition and disposal of treasury shares

-

(300)

-

-

(300)

-

80

Dividend

-

-

-

-

-

-

-

Balance at March 31, 2024

209

22,761

(578)

6,158

28,550

1,225

29,775

The accompanying notes form an integral part of the financial statements.

- 3 -

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CHANGES IN EQUITY (CONT.)

For the three month period ended March 31, 2023 (Unaudited):

Attributable to owners of the parent

Total

Additional

attributable

Non-

Share

paid-in

Translation

Retained

to owners of

controlling

Total

capital

capital

differences

earnings

the parent

interest

equity

U.S. $ in thousands

Balance at January 1, 2023

209

23,078

(250)

3,775

26,812

1,226

28,038

Changes during the three month period

ended March 31, 2023:

Comprehensive income

Profit for the period

-

-

-

894

894

(12)

882

Other comprehensive income

Translation differences

-

-

)98(

-

(98)

-

(98)

Total comprehensive income for the period

-

-

)98(

894

796

(12)

784

Acquisition and disposal of treasury shares

-

80

-

-

80

-

80

Dividend

-

-

-

-

-

-

-

Balance at March 31, 2023

209

23,158

(348)

4,669

27,688

1,214

28,902

The accompanying notes form an integral part of the financial statements.

- 4 -

MTI WIRELESS EDGE LTD. (An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONT.)

For the year ended December 31, 2023:

Attributable to owners of the parent

Total

Additional

attributable

Non-

Share

paid-in

Translation

Retained

to owners of controlling

Total

capital

capital

differences

earnings

the parent

interests

equity

U.S. $ in thousands

Balance as at January 1, 2023

209

23,078

(250)

3,775

26,812

1,226

28,038

Changes during 2023:

Comprehensive income

Profit for the year

-

-

-

4,045

4,045

31

4,076

Other comprehensive income (loss)

Re measurements on defined benefit plans

-

-

-

62

62

-

62

Translation differences

-

-

)216(

-

(216)

-

(216)

Total comprehensive income (loss) for the year

-

-

)216(

4,107

3,891

31

3,922

Dividend

-

-

-

(2,656)

(2,656)

-

(2,656)

Acquisition of minority holdings in subsidiary

-

-

-

-

-

(35)

(35)

Acquisition and disposal, net of treasury shares

*

)17(

-

-

)17(

-

)17(

Balance as at December 31, 2023

209

23,061

)466(

5,226

28,030

1,222

29,252

(*) Less than US$ 1 thousand

The accompanying notes form an integral part of the financial statements.

- 5 -

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

31.03.2024 31.03.2023 31.12.2023

U.S. $ in thousands

Unaudited

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

8,832

8,640

8,454

Trade and other receivables

12,782

10,384

14,284

Unbilled revenue

4,672

3,597

4,190

Current tax receivables

378

467

381

Inventories

7,674

7,502

7,484

34,338

30,590

34,793

NON-CURRENT ASSETS:

Long term prepaid expenses

28

32

37

Property, plant and equipment

5,479

5,415

5,398

Deferred tax assets

969

1,140

968

Intangible assets

3,467

3,819

3,507

9,943

10,406

9,910

Total assets

44,281

40,996

44,703

The accompanying notes form an integral part of the financial statements.

-6 -

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

31.03.2024 31.03.2023 31.12.2023

U.S. $ In thousands

Unaudited

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Current maturities and short term bank credit and loans

436

76

314

Trade payables

6,941

5,465

7,882

Other accounts payable

4,347

3,638

4,558

Current tax payables

352

433

283

12,076

9,612

13,037

NON- CURRENT LIABILITIES:

Contingent consideration

Lease liabilities

Loans from banks, net of current maturities

Employee benefits, net

Total liabilities

EQUITY

Equity attributable to owners of the parent

Share capital

Additional paid-in capital

Translation differences

Retained earnings

Non-controlling interest

Total equity

Total equity and liabilities

May 19, 2024

Date of approval of

Moshe Borovitz

financial statements

Chief Executive Officer

1,117

1,432

1,117

518

206

514

55

91

64

740

753

719

2,430

2,482

2,414

14,506

12,094

15,451

209

209

209

22,761

23,158

23,061

(578)

)348(

(466)

6,158

4,669

5,226

28,550

27,688

28,030

1,225

1,214

1,222

29,775

28,902

29,252

44,281

40,996

44,703

Elhanan Zeira

Zvi Borovitz

Controller

Non-executive Chairman

of the Board

The accompanying notes form an integral part of the financial statements.

-7 -

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS

Three month period ended

Year ended

March 31,

December 31,

2024

2023

2023

U.S. $ in thousands

Unaudited

Cash Flows from Operating Activities:

Profit for the period

935

882

4,076

Adjustments for:

Depreciation and amortization

492

326

1,511

Loss (Gain) from sale of property, plant and equipment

(63)

)10(

(13)

Finance (income) expenses, net

(14)

)33(

(5)

Changes in Contingent consideration and Put option liability

-

-

(315)

Tax expenses

209

233

759

Changes in operating assets and liabilities:

Decrease (increase) in inventories

(234)

247

158

Decrease (increase) in trade receivables

1,343

)181(

)2,477(

Decrease (increase) in other accounts receivables

92

719

)897(

Increase in unbilled revenues

(482)

)1,393(

)1,986(

Increase (decrease) in trade and other accounts payables

(1,070)

(140)

3,228

Increase (decrease) in employee benefits, net

21

1

29

Cash from operations

1,229

651

4,068

Interest received

174

19

69

Interest paid

(9)

(10)

(59)

Income tax paid

(140)

(122)

(540)

Net cash provided by operating activities

1,254

538

3,538

The accompanying notes form an integral part of the financial statements.

-8 -

MTI WIRELESS EDGE LTD.

(An Israeli Corporation)

INTERIM CONSOLIDATED STATEMENTS OF

CASH FLOWS (cont.)

Three month period ended

Year ended

March 31,

December 31,

2024

2023

2023

U.S. $ in thousands

Unaudited

Cash Flows From Investing Activities:

Proceeds from sale of property, plant and equipment

62

11

62

Purchase of property, plant and equipment

(282)

)145(

(426)

Net cash used in investing activities

(220)

)134(

(364)

Cash Flows From Financing Activities:

Dividend

-

-

)2,656(

Payments of lease liabilities

(485)

)116(

)485(

Treasury shares acquired

(300)

-

(516)

Treasury shares sold

-

80

499

Acquisition of non-controlling interest in subsidiary

-

-

(35)

Receipt of loans from banks

169

-

460

Repayment of long-term loans from banks

(9)

27

(247)

Net cash used in financing activities

(625)

(9)

(2,980)

(Decrease)/Increase in cash and

cash equivalents during the period

409

395

194

Cash and cash equivalents

at the beginning of the period

8,454

8,279

8,279

Exchange differences on balances of cash and

(31)

)34(

(19)

cash equivalents

Cash and cash equivalents

8,832

8,640

8,454

at the end of the period

The accompanying notes form an integral part of the financial statements.

-9 -

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MTI Wireless Edge Limited published this content on 19 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 06:43:14 UTC.