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6-K 1 zk2329786.htm 6-K


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2023
Commission File Number: 001-41641

SATIXFY COMMUNICATIONS LTD.
 (Translation of registrant’s name into English)

12 Hamada Street, Rehovot 670315
Israel
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ⌧             Form 40-F ☐


EXPLANATORY NOTE

  
Exhibit 99.1 (solely with respect to “First Quarter 2023 Results” (but not including those items entitled “Adjusted net loss on a non-IFRS basis” set forth therein), "Unaudited Interim Condensed Consolidated Statements of Financial Position" and "Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss") is hereby incorporated by reference into the Registrant’s Registration Statement on Form S-8 filed with the Securities and Exchange Commission on October 25, 2022 (Registration No. 333-268005), its Registration Statements on Form F-1/A filed with the Securities and Exchange Commission on May 11, 2023 (File No. 333-268835) and January 19, 2023 (File No. 333-268510) and its Registration Statement on Form F-4/A filed with the Securities and Exchange Commission on September 21, 2022 (File No. 333-267015).



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  SatixFy Communications Ltd.  
       

By:
/s/ Oren Harari  
    Oren Harari  
    Interim Chief Financial Officer  
       

May 26, 2023


EXHIBIT INDEX

Exhibit
Description
 
99.1



EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1


SatixFy Announces First Quarter 2023 Results

Rehovot, Israel – May 26, 2023 – SatixFy Communications Ltd. (“SatixFy”) (NYSE AMERICAN: SATX), a leader in next-generation satellite communication systems based on in-house developed chipsets, today announced its consolidated financial results for the first quarter of 2023.
 
Ido Gur, CEO of SatixFy, commented: “Satixfy’s first quarter results demonstrate that Satixfy is moving in the right direction. We have taken steps to reduce expenses while continuing our investment in R&D to maintain our edge and advance our satellite communication systems and chipsets. Our results demonstrate that we remain on track for revenue growth in 2023, with an associated improvement in the bottom line.”
 
First Quarter 2023 Results
 
Total revenues for the first quarter of 2023 were $2.4 million, an increase of 12% compared to $2.1 million in the first quarter of 2022. The vast majority of the revenues were from development services and pre-production.

Gross profit for the first quarter of 2023 was $1.0 million (at a gross margin of 41.0%), a 16% decline compared with $1.2 million (at a gross margin of 54.7%) in the first quarter of 2022. The decline in gross margin was attributed to the revenue mix, which favored a higher level of development services and preproduction that has a higher cost of services and sales.

Operating expenses declined to $7.0 million in the first quarter of 2023 from $7.6 million in the first quarter of 2022, reflecting a steady level of research and development (R&D) expenses, a $0.3 million increase in selling and marketing expenses, and a $1.0 million decrease in general and administrative (G&A) expenses, reflecting the impact in the first quarter of 2022 of a $2.0 million special management bonus, partially offset by public company costs following our business combination with Endurance Acquisition Corp. and listing on the NYSE in the first quarter of 2023.

Operating loss was $6.0 million in the first quarter of 2023, down from $6.4 million in the first quarter of 2022.
 
Finance expenses, net for the first quarter of 2023 were $26.3 million, reflecting expense of $43.7 million derived from the valuation of the Forward Purchase Agreement, based on a decrease in the market price of the Company’s ordinary shares, partially offset by $19.6 million in finance income derived from the valuation of Price Adjustment Shares, based on the same reason.

Net loss on an IFRS basis for the first quarter of 2023 was $32.4 million, or $0.40 per basic and diluted share, compared with a net loss of $10.0 million, or $0.52 per basic and diluted share, in the first quarter of 2022.

Adjusted net loss on a non-IFRS basis for the first quarter of 2023 was $6.1 million, or $0.08 per basic and diluted share compared with a non-IFRS adjusted net loss of $6.5 million, or $0.34 per basic and diluted share, in the first quarter of 2022.
 
Cash and cash equivalents as of March 31, 2023 totaled $14.1 million, compared to $11.9 million as of December 31, 2022.


About SatixFy
 
SatixFy develops end-to-end next-generation satellite communications systems, including satellite payloads, user terminals and modems, based on powerful chipsets that it develops in house.
 
SatixFy’s products include modems that feature Software Defined Radio (SDR) and Fully Electronically Steered Multi Beam Antennas (ESMA) that support the advanced communications standard DVB-S2X. SatixFy’s innovative ASICs improve the overall performance of satellite communications systems, reduce the weight and power requirements of terminals and payloads, and save real estate for gateway equipment. SatixFy’s advanced VSATs and multi-beam fully electronically steered antenna arrays are optimized for a variety of mobile applications and services, using LEO, MEO and GEO satellite communications systems, for aero/in-flight connectivity systems, communications-on-the-move applications, satellite-enabled Internet-of-Things, and consumer user terminals.
 
SatixFy is headquartered in Rehovot, Israel with additional offices in the U.S., U.K. and Bulgaria. For more information, please visit www.SatixFy.com.
 
Non-IFRS Financial Measures:
 
Non-IFRS adjusted net loss is defined as IFRS net loss after excluding depreciation and amortization and finance expenses, net (including the impact or revaluation of derivatives).
 
This non-IFRS measure is not a measure of the Company’s financial performance under IFRS and is presented for supplemental information purposes only and should be considered in addition to, and not as a substitute for, the comparable IFRS measures. The Company urges investors to treat this measure with caution and review the reconciliation of its non-IFRS financial measure to the most closely comparable IFRS measure included below together with the Company’s financial information presented in accordance with IFRS. The Company is providing non-IFRS adjusted net income because it believes it presents a better measure of the Company's core business activities, excluding certain non-cash and non-recurring items, and management uses this non-IFRS measure internally to evaluate the Company's ongoing performance. Accordingly, the Company believes they are useful to investors in enhancing an understanding of the Company's operating performance.  However, the Company’s calculation and presentation of non-IFRS adjusted net income may differ materially from similar measures presented by other companies, including in the Company’s industry and in other industries.
 
Forward-Looking Statements
 
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning possible or assumed future results of operations and descriptions of our business plan and strategies and may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of SatixFy’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. The forward-looking statements are subject to and involve risks, uncertainties and assumptions and you should not place undue reliance on these forward-looking statements. Important factors that could cause such differences include, but are not limited to, the matters described in our SEC filings and Annual Report on Form 20-F, in particular in the section “Risk Factors.”  Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of SatixFy. Forward-looking statements set forth herein speak only as of the date of this press release. SatixFy has no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event that any forward-looking statement is updated, no inference should be made that SatixFy will make additional updates with respect to that statement, related matters, or any other forward-looking statements. Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from forward-looking statements, including discussions of significant risk factors, may appear in SatixFy’s public filings with the SEC, which are or will be (as appropriate) accessible at www.sec.gov, and which you are advised to consult.
 
Contacts
 
Media Contacts:
Helena Itzhak, SatixFy, info@satixfy.com
 
Investor Contacts:
Ehud Helft, EK Global IR, satixfy@ekglobal.com
 
 
2

SATIXFY COMMUNICATIONS LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of USD)

   
March 31,
   
March 31,
   
December 31,
 
   
2023
   
2022
   
2022
 
                   
ASSETS:
                 
CURRENT ASSETS:
                 
Cash and cash equivalents
   
14,138
     
28,658
     
11,934
 
Trade accounts receivable
   
704
     
165
     
1,295
 
Contract assets
   
4,185
     
4,665
     
5,035
 
Prepaid expenses and other
   
4,738
     
2,689
     
3,648
 
Government departments and agencies receivables
   
5,471
     
3,431
     
6,156
 
Related parties
   
82
     
85
     
157
 
Derivatives FPA
   
531
     
-
     
12,775
 
Inventory
   
1,156
     
631
     
831
 
Total current assets
   
31,005
     
40,324
     
41,831
 
                         
NON-CURRENT ASSETS:
                       
Right-of-use assets, net
   
2,736
     
2,868
     
2,794
 
Property, plant and equipment, net
   
1,590
     
930
     
1,643
 
Investment in Jet Talk
   
1,665
     
2,029
     
1,777
 
Long term deposits
   
218
     
273
     
203
 
Derivatives FPA
   
-
     
-
     
28,077
 
Total non-current assets
   
6,209
     
6,100
     
34,494
 
                         
TOTAL ASSETS
   
37,214
     
46,424
     
76,325
 
 

3
 
SATIXFY COMMUNICATIONS LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of USD)

   
March 31,
   
March 31,
   
December 31,
 
   
2023
   
2022
   
2022
 
 
                 
LIABILITIES AND SHAREHOLDERS’ DEFICIT:
                 
CURRENT LIABILITIES:
                 
Trade payables
   
2,365
     
5,377
     
1,459
 

                       
Contract liabilities
   
408
     
358
     
622
 
ESA advance payments
   
4,920
     
11,385
     
5,800
 
Prepayment from customer
   
12,686
     
11,156
     
12,176
 
Lease liabilities
   
1,021
     
985
     
1,021
 
Other accounts payable and accrued expenses
   
5,136
     
5,359
     
7,843
 
Related parties
   
381
     
517
     
408
 
Total current liabilities
   
26,917
     
35,137
     
29,329
 
                         
NON-CURRENT LIABILITIES:
                       
Long term loans from financial institutions
   
56,621
     
50,200
     
54,926
 
Lease liabilities
   
2,181
     
2,618
     
2,280
 

                       
Derivatives instruments liabilities
   
728
     
1,392
     
20,305
 
Liability for royalties payable
   
1,153
     
1,423
     
1,107
 
Derivatives FPA
   
13,423
     
-
     
-
 
 Total non-current liabilities
   
74,106
     
55,633
     
78,618
 
                         
SHAREHOLDERS’ DEFICIT:
                       
Share Capital
   
-
     
-
     
-
 
Share Premium
   
446,761
     
48,403
     
446,488
 
Capital reserves
   
3,445
     
1,056
     
3,498
 
Accumulated deficit
   
(514,015
)
   
(93,805
)
   
(481,608
)
 Total shareholders’ deficit
   
(63,809
)
   
(44,346
)
   
(31,622
)
                         
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT
   
37,214
     
46,424
     
76,325
 


4
 
SATIXFY COMMUNICATIONS LTD.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands of USD)

   
Three months ended
 
   
March 31,
 
   
2023
   
2022
 
Revenues:
           
Development services and preproduction
   
2,387
     
1,840
 
Sale of products
   
-
     
297
 
      Total revenues
   
2,387
     
2,137
 
                 
Cost of sales and services:
               
Development services and preproduction
   
1,408
     
832
 
Sale of products
   
-
     
137
 
      Total cost of sales and services
   
1,408
     
969
 
                 
Gross profit
   
979
     
1,168
 
                 
Research and development expenses, net
   
4,184
     
4,159
 
Selling and marketing expenses
   
780
     
483
 
General and administrative expenses
   
2,018
     
2,956
 
Loss from operations
   
6,003
     
6,430
 
                 
Finance income
   
2
     
54
 
Finance expenses
   
(2,154
)
   
(3,498
)
Derivatives revaluation
   
(24,141
)
   
-
 
Company's share in the loss of a company accounted by equity method, net
   
(111
)
   
(108
)
Loss before income taxes
   
(32,407
)
   
(9,982
)
Income taxes
   
-
     
-
 
Loss for the period
   
(32,407
)
   
(9,982
)
                 
Other comprehensive income (loss) net of tax:
               
Items that will or may be reclassified to profit or loss:
               
Exchange gain (loss) arising on translation of foreign operations
   
(53
)
   
827
 
Total comprehensive loss for the period
   
(32,460
)
   
(9,155
)
                 
Basic and diluted loss per share (in dollars)
   
(0.40
)
   
(0.52
)
Basic and diluted weighted average ordinary shares outstanding
   
80,684
     
19,260
 



5
 
SATIXFY COMMUNICATIONS LTD.
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of USD)

   
Three months ended
 
   
March 31,
 
   
2023
   
2022
 
Cash flows from operating activities:
           
Loss for the year
   
(32,407
)
   
(9,982
)
Adjustments to reconcile net profit to net cash provided by operating activities:
               
Depreciation and amortization
   
293
     
346
 
Company's share in the loss of a company accounted by equity method, net
   
113
     
108
 
Finance expenses on loans
   
1,027
     
1,222
 
Change in the fair value of derivatives
   
24,141
     
-
 
Share based payments
   
246
     
158
 
Decrease (Increase) in trade accounts receivable
   
613
     
649
 
Decrease (Increase) in contract assets
   
958
     
1,242
 
Increase in inventory
   
(325
)
   
54
 
Increase (Decrease) in other current assets
   
(181
)
   
(2,852
)
Increase in trade payables
   
871
     
(3,162
)
Increase in ESA prepayments
   
(1,014
)
   
(3,205
)
Increase in other accounts payable and accrued expenses
   
(2,992
)
   
(2,907
)
Increase in prepayments from customers
   
241
     
9,652
 
Increase (decrease) in liability for royalties payable
   
47
     
103
 
Net cash used in operating activities
   
(8,369
)
   
(8,574
)
                 
Cash flows from investing activities
               
Decrease (Increase) in long-term bank deposit
   
(19
)
   
(2
)
Net cash used in investing activities
   
(19
)
   
(2
)
                 
Cash flows from financing activities
               
Receipt of long-term loans from a financial institution
   
1,424
     
52,837
 
Repayment of loan to shareholder
   
-
     
(5,000
)
Repayment of loans from banks
   
-
     
(13,818
)
Repayment of royalty liability
   
-
     
(48
)
Payments of lease liabilities
   
(1,029
)
   
(402
)
Issuance of shares (FPA)
   
10,026
     
-
 
Option exercises to shares by employees
   
26
     
20
 
Net cash provided by financing activities
   
10,447
     
33,589
 
Increase (decrease) in cash and cash equivalents
   
2,059
     
25,013
 
Cash and cash equivalents balance at the beginning of the year
   
11,934
     
3,854
 
Effect of changes in foreign exchange rates on cash and cash equivalents
   
145
     
(209
)
Cash and cash equivalents balance at the end of the year
   
14,138
     
28,658
 
                 
Appendix A - Cash paid and received during the year for:
               
                 
Interest paid
   
44
     
35
 
                 
Appendix B - Non Cash transactions during the year for:
               
                 
Issuance of shares against loan
   
-
     
1,978
 

6
 
SATIXFY COMMUNICATIONS LTD.
RECONCILIATION OF NON-IFRS ADJUSTED NET LOSS TO IFRS NET LOSS
(in thousands of USD)

   
Three months ended
 
   
March 31,
 
   
2023
   
2022
 
             
IFRS Net Loss
   
(32,407
)
   
(9,982
)
Depreciation and amortization
   
58
     
44
 
Finance Expenses, net
   
26,293
     
3,444
 
Non-IFRS Adjusted Net Loss(1)
   
(6,056
)
   
(6,494
)
                 
IFRS Basic and diluted loss per share
   
(0.40
)
   
(0.52
)
Non-IFRS Adjusted Basic and diluted loss per share
   
(0.08
)
   
(0.34
)
Basic and diluted weighted average ordinary shares outstanding
   
80,684
     
19,260
 
 
 (1) The Company did not record income tax benefit or expense in the periods and the adjustments above had no income tax effect.
 
7