Mobilicom Limited — FY2023 Form 20-F
Reporting period: Fiscal year ended December 31, 2023; this is an annual report, not a standalone fourth-quarter filing. Mobilicom designs and sells hardware, software, and cybersecurity solutions for small drones, robotics, and autonomous platforms. Its audited consolidated financial statements use IFRS as issued by the IASB and are presented primarily in Australian dollars (AUD); U.S. dollar figures are convenience translations.
Financial performance and position
| Metric | FY2023 | FY2022 | Change / context |
|---|---|---|---|
| Revenue | AUD 3.302 million | AUD 2.327 million | Up 42%; attributed mainly to initial scaled production by several Tier-1 customers and higher defense-related orders and deliveries. |
| Gross profit / margin | AUD 1.944 million / 59% | AUD 1.444 million / 62% | Gross profit rose; margin declined 3 percentage points. |
| Net loss | AUD 6.872 million (about US$4.700 million) | AUD 341,469 | Loss widened substantially; FY2022 included a AUD 3.768 million non-cash warrant fair-value gain, versus a AUD 476,745 fair-value loss in FY2023. |
| Operating cash flow | Used AUD 6.208 million | Used AUD 4.468 million | Cash outflow increased by AUD 1.739 million. |
| Cash and restricted cash | AUD 12.346 million | AUD 18.977 million | Declined AUD 6.630 million during FY2023; includes AUD 86,880 of restricted cash. |
| Total assets / liabilities | AUD 15.933 million / AUD 4.613 million | AUD 21.206 million / AUD 3.345 million | Year-end equity was AUD 11.320 million; accumulated losses were AUD 30.925 million. |
Sales are primarily product sales; the company says cloud-based software and cybersecurity offerings were at an initial-sales stage. FY2023 revenue was geographically concentrated in Israel (66%); the U.S. and Canada contributed 17%, and the rest of the world 17%. Three customers represented 18%, 17%, and 11% of total income, respectively.
Expenses were AUD 9.986 million, up from AUD 7.807 million. Research and development rose 14% to AUD 2.937 million, and general and administrative expenses rose 50% to AUD 4.032 million, including higher public-company, U.S. operations, and share-based compensation costs. Sales and marketing was AUD 2.485 million, broadly flat. Basic and diluted loss per share was AUD 0.52 cents, compared with AUD 0.05 cents in FY2022.
Year-end current assets were AUD 15.142 million and current liabilities AUD 3.976 million. Liabilities included AUD 1.573 million of warrant financial liabilities and AUD 661,955 of lease liabilities; the filing does not identify conventional borrowings as a material balance. FY2023 financing cash flow was an outflow of AUD 421,496, primarily lease repayments. Management said cash, receivables, and ongoing operations were expected to fund at least 12 months from December 31, 2023, while noting that future financing may be needed.
Material changes, outlook, and risks
- Revenue grew, but the company remained loss-making and operating cash use increased. Gross margin eased from 62% to 59%.
- Management provided no numerical revenue or earnings guidance. It reported monitoring supply-chain constraints, inflation, interest rates, and geopolitical conditions, and said it was not aware of other trends reasonably likely to materially affect the business beyond matters disclosed in the filing.
- The company reported that Israel-related operations, product development, and business development remained on track after the October 2023 outbreak of war, with no disruption reported as of the filing. It cautioned that prolonged or expanded conflict could affect operations; most employees and its main R&D and manufacturing operations are in Israel.
- Other material risks include continued losses and potential need for additional capital; customer and geographic concentration; intense competition and technology changes; reliance on suppliers and outsourced manufacturing; export approvals and product certifications; government-contract risks; and cybersecurity, intellectual-property, and foreign-exchange exposure. The company does not currently hedge currency risk; it estimated that a 10% AUD devaluation against the NIS would increase annual net loss by about AUD 434,000.
- Israeli Innovation Authority grants carry potential royalties of 3%–3.5% on sales of grant-supported products, subject to repayment caps and other conditions. Restrictions may apply to transferring related technology or manufacturing outside Israel.
- Warrant revaluation is a notable non-cash item: the FY2023 warrant liability was AUD 1.573 million. Results include a AUD 476,745 fair-value loss, versus a AUD 3.768 million gain in FY2022. The auditor issued an unqualified opinion on the IFRS financial statements; it did not audit internal-control effectiveness. Management assessed disclosure controls and internal financial controls as effective.
- After year-end, a registered direct offering and concurrent private placement closed January 30, 2024, raising gross proceeds of approximately US$2.95 million before expenses. It included ADSs, pre-funded warrants, and five-year warrants exercisable at US$1.55 per ADS, creating potential dilution. The company also changed its functional currency to U.S. dollars effective January 1, 2024.
- Mobilicom voluntarily delisted from the ASX on October 19, 2023; its ADSs and warrants trade exclusively on Nasdaq. It has never paid dividends and does not anticipate doing so in the foreseeable future.
Important facts for investors to verify
- Whether revenue growth converts into repeat orders and whether customer and Israel-related revenue concentration changes.
- Actual cash burn and runway relative to management’s estimate, including the net proceeds and use of funds from the January 2024 offering.
- The potential dilution from the 2024 offering warrants and the substantial employee option pool; the filing reports 278.9 million options outstanding at year-end 2023.
- The assumptions and market-price inputs used to value warrant liabilities, and the resulting effect of future remeasurement on reported earnings.
- Whether cloud and cybersecurity products gain recurring commercial sales, and whether gross margins hold as sales scale.
- Compliance with IIA grant royalty and technology-transfer conditions, export controls, and required product certifications; U.S. investors should also assess the filing’s warning that Mobilicom may be a PFIC.