SaverOne 2014 Ltd. — FY2022 Form 20-F
Reporting period: Year ended December 31, 2022. This is an annual report, not a standalone Q4 report; separate fourth-quarter results are not provided. Financial statements are prepared under IFRS in NIS; dollar equivalents are approximate.
Business context
SaverOne is an Israeli development-stage transportation-safety technology company. Its driver-distraction prevention system detects phones near the driver and restricts selected applications. Generation 1.0 and 2.0 aftermarket systems were in early commercialization; Generation 2.0 was released in Q4 2022. OEM and vulnerable-road-user detection products remained in development.
Financial results and liquidity
| Metric | FY2022 | FY2021 |
|---|---|---|
| Revenue | NIS 1.193m (about $0.34m) | NIS 0.450m |
| Gross profit / margin | NIS 0.364m / 30.5% | NIS 0.162m / 36.0% |
| Research and development expense, net | NIS 21.490m | NIS 18.847m |
| Operating loss | NIS 29.209m | NIS 26.265m |
| Net loss | NIS 24.962m (about $7.1m) | NIS 26.490m |
| Cash used in operating activities | NIS 28.370m | NIS 23.133m |
Revenue rose 165%, mainly from new Generation 1.0 agreements, while cost of revenue grew faster, reducing gross margin. The net loss narrowed 6% despite a higher operating loss, primarily because of NIS 4.247m net finance income, including warrant-liability revaluation and foreign-exchange gains; these items are not evidence of improved operating performance.
At year-end, cash and cash equivalents were NIS 19.240m and short-term deposits NIS 10.070m. Working capital was NIS 26.424m. Current assets were NIS 33.449m and current liabilities NIS 6.781m. Cash from financing was NIS 41.972m, principally reflecting net U.S. IPO proceeds of NIS 37.298m and private-placement proceeds of NIS 5.141m. Total assets were NIS 34.435m and equity NIS 26.554m.
The filing reports no conventional borrowing balance, but liabilities included lease obligations (NIS 0.648m), government-grant obligations (NIS 1.254m) and derivative warrant liability (NIS 1.151m), in addition to trade and other payables. No material off-balance-sheet arrangements were reported.
Changes, outlook and risks
- R&D spending increased 14% year over year, mainly for Generation 2.0; operating cash outflow increased 23%.
- Management said existing funds were insufficient to support operations for 12 months from the report’s issuance and planned to seek additional funding and grow product revenue. The auditor highlighted substantial doubt about the company’s ability to continue as a going concern; the financial statements contain no adjustments for that uncertainty.
- No quantified financial guidance was provided. Management expected continued losses and significant R&D investment. The company targeted an OEM product launch in 2024, while the VRU solution was at an early development stage and its development cost was not yet estimable.
- Commercialization evidence cited after year-end included more than 40 pilot programs and about 3,200 systems ordered as of March 31, 2023; these are post-year-end figures, not FY2022 revenue or installations.
- Key risks include reliance on future capital raising, limited commercial revenue, product and customer adoption uncertainty, competition, supply-chain and component delays, automotive regulatory requirements, patent opposition, and political/security conditions in Israel.
- A material weakness in internal control over financial reporting remained for 2021 and 2022, involving insufficient accounting staff, segregation of duties, and IT, entity-level and transaction-level controls. Management described remediation plans but gave no assurance they would fully resolve it.
Important facts for investors to verify
- Current cash runway and subsequent financing, given the going-concern warning and management’s stated funding need.
- Conversion of pilot activity and orders into paid installations, recurring revenue and improved gross margins.
- Progress, costs and timing for Generation 2.0, OEM integration and the VRU product, including any customer or regulatory milestones.
- Status of the Israeli patent opposition and the effectiveness of internal-control remediation.
- Potential dilution and warrant-related effects; 27,780,896 ordinary shares were outstanding at December 31, 2022, and the filing reported 3,276,682 IPO warrants outstanding.