Medigus Announces Record 2022 First Half Financial Results

September 23, 2022

Record Revenues of $34.95 million, up over 1,300% Y-o-Y

/EIN News/ -- TEL AVIV, Israel, Sept. 23, 2022 (GLOBE NEWSWIRE) -- Medigus Ltd. (Nasdaq: MDGS) (“Medigus”), a technology company engaged in advanced medical solutions, innovative internet technologies and electric vehicle and charging solutions, today reported financial results for the six months ended June 30, 2022.

Key Highlights

“Our record first half of 2022 financial results are a direct result of our work over the past two years and clearly demonstrate the value in our approach to engage in innovative technology companies with high upside potential,” said Liron Carmel, CEO of Medigus. “As we continue to execute on our diversified business model and add value to our operating segments, we believe Medigus is in a great position to further grow shareholder value with multiple near-term catalysts.”

Recent Highlights:

H1 2022 Highlights:

About Medigus

Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is a technologies company that is focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce, and electric vehicle markets. Medigus’ affiliations in the medical solutions arena include the ownership in Polyrizon Ltd. The Company’s affiliates in digital commerce include Gix Internet Ltd. (TASE: GIX), Jeffs’ Brands and Eventer Technologies Ltd. In the electric vehicle market, Charging Robotics, Ltd. and Revoltz are also part of the Company’s portfolio of technology solution providers. Other affiliations of the Company include ScoutCam Inc. (OTCQB: SCTC). Parazero TechnologiesLtd. , Laminera Flow Optimization Ltd. Medigus is traded on the Nasdaq Capital Market. To learn more about Medigus’ advanced technologies, please visit http://www.medigus.com/investor-relations.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Medigus’ current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Medigus could differ materially from those described in or implied by the statements in this press release. For example, Medigus uses forward looking statements when describing its plans to increase its ownership in Gix and consolidate its and when describing potential activates and restructures in connection with other investments.

The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed in any filings with the SEC. Except as otherwise required by law, Medigus undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Medigus is not responsible for the contents of third-party websites.

Investor Relations Contact:
Dave Gentry
RedChip Companies Inc.
1-800-RED-CHIP (733-2447)
Or 407-491-4498
MDGS@redchip.com

 
MEDIGUS LTD.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
           
  June 30     December 31  
  2022     2021  
  Unaudited     Audited  
  USD in thousands  
Assets          
CURRENT ASSETS:          
Cash and cash equivalents   22,141       24,025  
Pledged deposit   219       -  
Trade accounts receivable   16,562       408  
Other receivables and prepaid expenses   1,863       415  
Inventory   1,831       1,227  
Loan to an associate   -       1,265  
Related party prepaid expenses   728       999  
Financial assets at fair value through profit or loss   2,614       3,315  
    45,958       31,654  
               
NON-CURRENT ASSETS:              
Property and equipment, net   407       77  
Right-of-use assets, net   667       -  
Investments accounted for using the equity method   13,407       17,240  
Intangible assets   29,376       8,321  
Deferred offering costs   863       836  
Deferred tax asset   119       -  
Financial assets at fair value through profit or loss   3,517       1,602  
    48,356       28,076  
               
TOTAL ASSETS   94,314       59,730  
               


 
MEDIGUS LTD.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
           
  June 30     December 31  
  2022     2021  
  Unaudited     Audited  
  USD in thousands  
Liabilities and equity          
CURRENT LIABILITIES:          
Trade accounts payable   10,450       702  
Short term loans   9,248       816  
Short term related party loan   56       111  
Current portion of long-term related party payable   520       506  
Lease liabilities   158       -  
Warrants at fair value   854       692  
Contract liability   108       108  
Liability to event producers   2,385       1,556  
Related parties   474       616  
Accrued expenses and other current liabilities   8,924       1,532  
    33,177       6,639  
NON-CURRENT LIABILITIES:              
Lease liabilities   536       -  
Long-term loans   4,083       -  
Loans from related parties   479       689  
Long-term related party payable   580       711  
Deferred tax liability   2,105       236  
Retirement benefit obligation, net   165       22  
    7,948       1,658  
TOTAL LIABILITIES   41,125       8,297  
               
SHAREHOLDERS’ EQUITY:              
Share capital – ordinary shares with no par value: authorized – June 30, 2022 and December 31, 2021 – 200,000,000 shares; issued and outstanding – June 30, 2022 – 24,591,470 shares December 31, 2021 – 23,850,128 shares *   -       -  
Share premium   111,322       110,562  
Other capital reserves   11,401       12,619  
Warrants   197       197  
Accumulated deficit   (77,778 )     (74,188 )
Equity attributable to owners of Medigus Ltd.   45,142       49,190  
Non-controlling interests   8,047       2,243  
TOTAL SHAREHOLDERS’ EQUITY   53,189       51,433  
               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   94,314       59,730  


*   Restated to reflect the reverse split at a ratio of 20:1 occurred on July 8, 2022 – see also note 8 to our Interim Condensed Consolidated Financial Statements (unaudited) as of June 30, 2022.
     


 
MEDIGUS LTD.
INTERIM CONSOLIDATED STATEMENTS OF INCOME/LOSS AND OTHER COMPREHENSIVE INCOME/LOSS
           
  Six months ended     Year ended  
  June 30,     December 31  
  2022     2021     2021  
  Unaudited     Audited  
  USD in thousands  
Revenues:                
Products   2,343       1,934       8,933  
Revenue from services   32,616       459       1,185  
    34,959       2,393       10,118  
Cost of revenues:                      
Products   1,933       1,587       4,938  
Revenue from services   26,834       202       379  
    28,767       1,789       5,317  
                       
Gross Profit   6,192       604       4,801  
Research and development expenses   2,047       755       1,045  
Sales and marketing expenses   2,112       624       1,988  
General and administrative expenses   5,638       4,417       9,964  
Net change in fair value of financial assets at fair value through profit or loss   813       (583 )     (713 )
Share of net loss of associates accounted for using the equity method   1,910       419       2,149  
Amortization of excess purchase price of an associate   -       -       263  
Operating loss   (6,328 )     (5,028 )     (9,895 )
                       
Gain upon loss of control in a subsidiary   -       (11,502 )     11,465 )
Gain from initial recognition of assets and liabilities upon control obtained in an associate   (2,300 )     -       -  
Gain from sale of investments   (68 )     (2,025 )     2,025 )
Other income   (176 )     (299 )     494 )
Changes in fair value of warrants issued to investors   99       474       (484 )
Changes in fair value of commitment to issue shares   63       -       75  
Financial loss, net   793       403       347  
Profit (Loss) before taxes on income   (4,739 )     7,921       4,151  
Tax benefit (expense)   (9 )     6       (105 )
Net profit (loss) for the period   (4,748 )     7,927       4,046  
Other comprehensive income (loss)                      
Items that may be reclassified to profit or loss                      
Share of other comprehensive income (loss) of associates accounted for using the equity method   (125 )     (104 )     191  
Share of other comprehensive loss of currency translation of subsidiaries   (836 )     -       -  
Items that will not be reclassified to profit or loss                      
Share of other comprehensive income (loss)  of associates accounted for using the equity method   -       37       (29 )
Other comprehensive income (loss) for the period   (961 )     (67 )     162  
Total comprehensive income (loss) for the period   (5,709 )     7,860       4,208  
                       
Net profit (loss) for the period is attributable to:                      
Owners of Medigus   (3,590 )     9,785       6,794  
Non-controlling interest   (1,158 )     (1,858 )     (2,748 )
    (4,748 )     7,927       4,046  
                       
Total comprehensive income (loss) for the period is attributable to:                      
Owners of Medigus   (4,275 )     9,746       6,881  
Non-controlling interest   (1,434 )     (1,886 )     (2,673 )
    (5,709 )     7,860       4,208  
Earning (Loss) per ordinary share attributed to Medigus ltd                      
Basic   (0.15 )     0.02       0.01  
Diluted   (0.15 )     0.04       0.01  
Weighted average ordinary shares outstanding (In thousands)                      
Basic   24,109       *22,212       *23,035  
Diluted   24,109       *22,212       *23,035  


*   Restated to reflect the reverse split at a ratio of 20:1 occurred effected on July 8, 2022 – see also note 8 to our Interim Condensed Consolidated Financial Statements (unaudited) as of June 30, 2022.