Nano Dimension Reports First Quarter Financial Results

• Research and development (R&D) expenses for the first quarter of 2016 were $436,000 (NIS 1,642,000), compared to $483,000 (NIS 1,921,000) in the first quarter of 2015. The change was primarily due to presenting the R&D expenses for the first quarter of 2016 net of government grants in the amount of $58,000 (NIS 217,000) and net of development expenses recognized as intangible assets in the amount of $1,488,000 (NIS 5,604,000).

Taking into account the capitalized amount, the change in the R&D expenses was attributable to an increase of $697,000 (NIS 2,626,000) in salaries and related personnel expenses, reflecting an increase in the number of employees (the company had nine R&D employees as of March 31, 2015 and 46 R&D employees as of March 31, 2016), an increase of $370,000 (NIS 1,394,000) in options expenses, and an increase of $256,000 (NIS 965,000) in purchase of materials.

• General and administrative (G&A) expenses for the first quarter of 2016 were $1,176,000 (NIS 4,429,000), compared to $257,000 (NIS 1,023,000) in the first quarter of 2015. The increase resulted primarily from an increase of $227,000 (NIS 853,000) in options expenses. The increase was also due to an increase of $189,000 (NIS 711,000) in professional services expenses mainly for investor relations, accounting and legal services, and an increase of payroll in the amount of $158,000 (NIS 593,000), reflecting an increase in the number of employees (the company had two G&A employees as of March 31, 2015 and nine G&A employees as of March 31, 2016).    

• Net loss for the first quarter of 2016 was $1,790,000 (NIS 6,741,000), or $0.05 (NIS 0.18) per share, compared to $766,000 (NIS 3,047,000), or $0.04 (NIS 0.15) per share, in the first quarter of 2015, mainly due to the above described increase in G&A expenses.   

• Cash and cash equivalents totaled $7,628,000 (NIS 28,727,000) as of March 31, 2016, compared to $8,665,000 (NIS 33,811,000) on December 31, 2015. The decrease compared to December 31, 2015 reflects the cash used in operations during the first quarter of 2016, net of proceeds received from exercise of warrants during the period.

• Shareholders' equity totaled $12,435,000 (NIS 46,831,000) as of March 31, 2016, compared to $12,047,000 (NIS 47,004,000) on December 31, 2015.

• On January 20, 2016, the company announced that it has signed an agreement with Flextronics International Ltd. to serve as the primary manufacturer and supplier of the DragonFly2020 3D Printer.

• On February 23, 2016, the company announced that it has signed a collaboration agreement with Ramot at Tel Aviv University Ltd., under which a group of researchers headed by Professor Gil Markovich, head of the department of Chemistry at the Tel Aviv University, will collaborate on the development of an application method for a nanoparticle nickel material developed at the university's laboratories. This collaboration with Ramot at Tel Aviv University Ltd., in combination with Nano Dimension's intellectual property and know-how, will help advance development of new ink formulations tailored to Nano Dimension's printing technologies and a wide range of new 3D printing applications.

• On March 7, 2016, the company's American Depositary Shares started trading on the NASDAQ Capital Market under the symbol "NNDM."

• On March 22, 2016, the company announced that it signed an agreement to collaborate with FATHOM, an industry-leading advanced manufacturer, distributer and service provider with expertise in 3D printing, to introduce the company's 3D printer to Silicon Valley and the greater West Coast area.

Nano Dimension Ltd.

Consolidated Statements of Financial Position

March 31

March 31

December 31

2016

2016

2015

Thousand USD

Convenience translation into
US dollars

(NIS 3.766 = $1)

Thousand NIS

Thousand NIS

Assets

Cash and cash equivalents

7,628

28,727

33,811

Restricted deposits

133

500

500

Other receivables

219

827

1,030

Total current assets

7,980

30,054

35,341

Restricted deposits

113

425

428

Property plant and equipment, net

1,458

5,491

4,414

Intangible assets

4,503

16,958

11,355

Total non-current assets

6,074

22,874

16,197

Total assets

14,054

52,928

51,538

Liabilities

Trade payables

465

1,750

1,727

Other payables

778

2,932

1,814

Total current liabilities

1,243

4,682

3,541

Liability in respect of government grants

376

1,415

993

Total liabilities

1,619

6,097

4,534

Equity

Share capital

1,133

4,267

3,863

Share premium

18,539

69,817

63,054

Treasury shares

(1,397)

(5,260)

(5,260)

Warrants

1,228

4,623

6,934

Capital reserve from transactions with controlling shareholders

495

1,866

1,866

Capital reserve for share-based payments

3,822

14,393

12,681

Accumulated loss

(11,385)

(42,875)

(36,134)

Total equity

12,435

46,831

47,004

Total liabilities and equity

14,054

52,928

51,538

Nano Dimension Ltd.

Consolidated Statements of Profit or Loss and Other Comprehensive Income

 For the three months ended March 31

For the year ended December 31

2016

2015

2016

2015

Thousand USD
Convenience translation into
US dollars

(NIS 3.766 = $1)

Thousand NIS

Thousand NIS

Thousand NIS

Research and development expenses, net

436

1,921

1,642

11,153

General and administrative expenses

1,176

1,023

4,429

11,229

Other income

-

-

-

6

Operating loss

(1,612)

(2,944)

(6,071)

(22,376)

Finance income

-

-

-

1,529

Finance expense

178

103

670

145

Total comprehensive loss

(1,790)

(3,047)

(6,741)

(20,992)

Basic and diluted loss per share (in NIS / USD)

(0.05)

(0.15)

(0.18)

(0.78)

Nano Dimension Ltd.

Consolidated Statements of Changes in Equity

Share capital

Share premium

Treasury shares

Warrants

Capital reserve from transactions with controlling shareholders

Capital reserve for share- based payments

Accumulated loss

Total equity

Convenience translation into US dollars

(NIS 3.766 = $1)

Thousand NIS

Thousand NIS

Thousand NIS

Thousand NIS

Thousand NIS

Thousand NIS

Thousand NIS

Thousand NIS

Thousand USD

For the three months ended March 31, 2016:

Balance as of January 1, 2016

3,863

63,054

(5,260)

6,934

1,866

12,681

(36,134)

47,004

12,481

Exercise of warrants and options

404

6,763

-

(2,311)

-

(1,145)

-

3,711

985

Share-based payments

-

-

-

-

-

2,857

-

2,857

759

Net loss

-

-

-

-

-

-

(6,741)

(6,741)

(1,790)

Balance as of March 31, 2016

4,267

69,817

(5,260)

4,623

1,866

14,393

(42,875)

46,831

12,435