The Company does note that the current price of its Ordinary Shares means that any conversions made by the Investors related to the outstanding balance of the third tranche, as per the terms and conditions of the Agreements, would be below the floor price. The Agreements set the floor price at $0.55 whilst stating that the floor price can be adjusted upon a mutual agreement between the Company and the Investors. Whilst the Company has not formally amended the floor price, it has done so previously, and the Company considers it would be inclined to agree to a reduction in the floor price should one be requested. Based upon the terms of the Agreements, the Company has calculated that the total number of shares registered under the third tranche registration statement would still exceed the number of shares likely to be issued if the entire remaining balance were to be converted today.
MOVING FORWARD
Market Outlook and Growth Projections
SEALSQ is well-positioned to capitalize on evolving cybersecurity requirements globally. The Company expects its post-quantum chips to play a crucial role in securing IoT devices, smart homes, autonomous vehicles, and industrial applications in the future.
Key growth areas for SEALSQ over the next five years include:
1. VaultIC chip sales to Consumer IoT, Smart Grid and Automotive Charging
device makers and operators.
2. PKI and RoT Services: Recurring revenue is expected from device
attestation and certificate lifecycle management services as well as from
the GSMA eUICC manufacturers and service providers.
3. Quantum-Resistant Semiconductor Sales: SEALSQ anticipates significant
sales growth starting in 2025 as new chips enter full production.
4. ASICS & custom solutions: Strategic partnerships for custom
quantum-resistant chips will generate revenue through development
contracts and licensing fees.
SEALSQ's continued focus on innovation and security ensures it remains a leader in the cybersecurity and semiconductor industries, driving long-term growth and value for shareholders.
CONFERENCE CALL
The company will host a conference call to review its results on Thursday, September 26, at 9:00 am ET (3:00 pm CET). If you wish to join the conference call, please use the dial-in information below:
-- Toll-Free Dial-In Number: 877-445-9755 -- International Dial-In Number: 201-493-6744
A simultaneous webcast of the call may be accessed online via the Investors section of the company's website, https://www.sealsq.com/investors/events.
The archived call will also be available on the Investors section of the company's website, https://www.sealsq.com/investors/events.
FILING OF HALF YEAR REPORT ON FORM 6-K
SEALSQ filed its Condensed Consolidated Financial Statements in the Form 6-K for the six-month period ended June 30, 2024, with the U.S. Securities and Exchange Commission on September 25, 2024. The Form 6-K can be accessed by visiting the Company's website at www.sealsq.com.
In addition, the Company's stockholders may receive a hard copy of the Form 6-K, which includes complete unaudited financial statements, free of charge by contacting its Investor Relations Representative at lcati@equityny.com or +1 212 836-9611.
ADDITIONAL FINANCIAL & OPERATIONAL DATA
Consolidated Statements of Comprehensive Income/(Loss) [as reported]
Unaudited 6 months ended June 30,
USD'000, except earnings per share 2024 2023
----------------------------------- ---------------- -------------
Net sales 4,828 14,751
Cost of sales (3,667) (6,760)
Depreciation of production assets (228) (201)
Gross profit 933 7,790
Other operating income - 9
Research & development expenses (2,393) (1,492)
Selling & marketing expenses (2,653) (2,441)
General & administrative expenses (4,777) (4,145)
Total operating expenses (9,823) (8,069)
---------------- -------------
Operating loss (8,890) (279)
---------------- -------------
Non-operating income 465 180
Gain / (loss) on debt
extinguishment (100) -
Interest and amortization of debt
discount (557) (143)
Non-operating expenses (372) (313)
Loss before income tax expense (9,454) (555)
Income tax (expense) / income (1,304) (320)
Net loss (10,758) (875)
================ =============
Earnings per ordinary share $(USD)$
Basic (0.37) (0.06)
Diluted (0.37) (0.06)
Earnings per F share $(USD.AU)$
Basic (1.87) (0.29)
Diluted (1.87) (0.29)
Other comprehensive income /
(loss), net of tax:
Foreign currency translation
adjustments (8) (4)
Other comprehensive loss (8) (4)
---------------- -------------
Comprehensive loss (10,766) (879)
================ =============
The notes are an integral part of our consolidated financial statements.
Consolidated Balance Sheets [as reported]
As at June 30, As at December 31,
USD'000, except par value 2024 (unaudited) 2023 (unaudited)
-------------------------------------- ---------------- ------------------
ASSETS
Current assets
Cash and cash equivalents 18,858 6,895
Accounts receivable, net of allowance
for credit losses 1,565 5,053
Inventories 2,772 5,231
Prepaid expenses 471 605
Government assistance 1,826 1,718
Other current assets 625 765
Total current assets 26,117 20,267
Noncurrent assets
Deferred income tax assets 1,775 3,077
Deferred tax credits 63 -
Property, plant and equipment, net of
accumulated depreciation 3,013 3,230
Intangible assets, net of accumulated
amortization - -
Operating lease right-of-use assets 1,181 1,278
Other noncurrent assets 85 83
Total noncurrent assets 6,117 7,668
---------------- ------------------
TOTAL ASSETS 32,234 27,935
================ ==================
LIABILITIES
Current Liabilities
Accounts payable 6,904 6,963
Indebtedness to related parties,
current - 1,278
Deferred revenue, current 2 -
Current portion of obligations under
operating lease liabilities 355 336
Income tax payable - 2
Other current liabilities 34 138
Total current liabilities 7,295 8,717
Noncurrent liabilities
Bonds, mortgages and other long-term
debt 1,734 1,654
Convertible note payable, noncurrent 9,313 1,519
Indebtedness to related parties,
noncurrent 7,478 9,695
Operating lease liabilities,
noncurrent 754 893
Employee benefit plan obligation 436 426
Total noncurrent liabilities 19,715 14,187
---------------- ------------------
TOTAL LIABILITIES 27,010 22,904
================ ==================
Commitments and contingent liabilities
SHAREHOLDERS' EQUITY
Common stock - Ordinary Shares 227 154
Par value - USD 0.01
Authorized - 200,000,000 and 200,000,000
Issued and outstanding - 22,734,630 and 15,446,807
Common stock - F Shares 75 75
Par value - USD 0.05
Authorized - 10,000,000 and 10,000,000
Issued and outstanding - 1,499,700 and 1,499,700
Additional paid-in capital 35,616 24,730
Accumulated other comprehensive income / (loss) 776 784
Accumulated deficit (31,470) (20,712)
Total shareholders' equity 5,224 5,031
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September 25, 2024 16:05 ET (20:05 GMT)
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