WISeKey Announces Q1 2021 Unaudited Revenue of $4.9 Million and Ends the Quarter with a Strong Cash Position of $25 Million

WISeKey Announces Q1 2021 Unaudited Revenue of $4.9 Million and Ends the Quarter with a Strong Cash Position of $25 Million

Record demand and backlog, new revenue streams and strategic partnerships have positioned WISeKey well for a strong 2022

Geneva, Switzerland, May 11, 2022 – Ad-Hoc announcement pursuant to Art. 53 of SIX Listing Rules – WISeKey International Holding Ltd– WISeKey International Holding Ltd. (“WISeKey” or “Company”) (SIX: WIHN, NASDAQ: WKEY), a leading global cybersecurity, AI, Blockchain and IoT company, announced today its Q1 2022 unaudited revenues of $4.9 million, an increase of more than 4%, from the same period of last year. Furthermore, WISeKey ended the quarter with a strong cash position of $25 million as of March 31, 2022.

In 2022, WISeKey will continue making significant investments in the IoT Chip segment to maintain its position as a strategic European and USA player and to increase the production volume of semiconductors. Of note, the Global IoT Chip market was valued at $12.2 billion in 2021 and projected to reach $32.1 billion by 2030, growing at a CAGR of 14.8% during the forecast period, 2022-2030.

Carlos Moreira, WISeKey’s CEO noted, “Q1 2022 was a strong quarter for WISeKey despite the volatile geopolitical and macro conditions and demonstrates our ability to maintain sustainable growth.   In particular, our core IoT business grew at 15% in Q1 2022, from $3.3 million in Q1 2021 to $3.8 million in Q1 2022, as we continue to deliver on the increasing demand for our IoT products. We are now in a very strong position to handle the increased demand from our clients. Our backlog at the end of April increased by more than 170%, as compared to the same period of last year, and was higher than our revenues for full year 2021. The higher demand, increased backlog and several new customers are now positively impacting revenues and the Company’s expectations for full year 2022 which is set to be another strong year for WISeKey on several fronts. Demand for our IoT products remains very high and we have already started scheduling deliveries for 2023. While we continue to face semiconductors supply chain shortages, we are looking at every option to further shorten customer delivery times. WISeKey is positioning itself as a strong, reliable and customer-focused supplier. We are progressing well on our two new revenue streams with the launch of the first WISeSat PocketQube Satellite in January 2022 and the expansion of the NFT portfolio available on our WISe.ART NFT platform which already includes over 300 artists.”

“We expect strong demand for our cybersecurity IoT products during 2022 calendar year and sustained revenue derived from the increase in demand for our technology. It is anticipated that Cybersecurity companies like WISeKey with strong technology-IP assets will recover much faster from the current crisis. Overall, continued adoption of IoT technologies connected to secure clouds, and ultimately 5G, will be tremendous catalysts for security companies given the related risk of adoption,” concluded Mr. Moreira.

WISeKey’s strong financial position of $25 million cash at the end of Q1 2022 allows the Company to support investments in new products, IP, and faster growing IoT/Cybersecurity markets. During 2021, WISeKey made significant investments in R&D and new microchips design in order to maintain its leading-edge technology position and the competitive advantage of product offerings. WISeKey is also making progress with its investment in FOSSA Systems allowing their satellite technology to integrate into the WISeKey IoT platform connecting all IoT sectors through the development of a WISeSat PocketQube Satellite. The WISeSat Satellite will be a security-IoT hardened FOSSASAT-2E satellite designed to further drive down satellite costs for the already-small Cubesat size.

WISeKey will offer this technology to its IoT clients in a SaaS model allowing both remote and redundant urban IoT communications for companies seeking to securely connect their assets. WISeKey Trust and Security solutions offer unique integration into an end-to-end platform that communicates in real-time with the WISeSat Satellite by ensuring the authenticity, confidentiality, and integrity of the devices, objects, data and transactions.

Finally, after the successful deployment of several NFT Luxury watch projects, WISeKey has developed WISe.ART one of the most reliable and secure NFT platforms for businesses, in a strategic partnership to bring trust to NFT. This NFT platform will provide a dedicated, secure marketplace for buying and selling NFTs, including artwork and luxury goods.

2022 KEY GROWTH AREAS

  • The launch of the WISe.ART NFT platform in 2021 is expected to provide new WISe.ART revenue streams in the shape of commissions on the sales carried out on the platform, and the sale of a white label version of the WISe.ART platform for clients that wish to have their own branded platform for auctions and sales.
  • The launch of the first WISeSaT PocketQube Satellite in January 2022 is the result of the investment of WISeKey in FOSSA Systems to integrate their picosatellite technology into the WISeKey IoT Connect & Trust model and improve IoT communication in remote and poor connectivity areas.
  • New strategic partnerships to strengthen its position as IoT cybersecurity provider and to develop new use cases based on our established technologies (refer to page 29 of the FY 2021 financial report for details).
  • Investments in post-quantum cryptography that are resistant against quantum cryptanalysis so as to anticipate future cybersecurity threats, working in collaboration with the American National Institute of Standards and Technology (NIST) and the European Union Agency for Cybersecurity (ENISA).
  • Planned significant investment into new equipment to increase the production volume of semiconductors.
  • Investment in R&D to expand its patent portfolio.

More information on WISeKey’s FY 2021 financial results and new business initiatives are available at https://cdn.wisekey.com/uploads/WISeKey-International-Holding.mp3

About WISeKey
WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey microprocessors secure the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an install base of over 1.6 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.).  WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors produce a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.

Our technology is Trusted by the OISTE/WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.

Press and investor contacts:

WISeKey International Holding Ltd 
Company Contact:  Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
info@wisekey.com
WISeKey Investor Relations (US) 
Contact:  Lena Cati
The Equity Group Inc.
Tel: +1 212 836-9611
lcati@equityny.com

Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FInSa’s predecessor legislation or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.


Disclaimer
This document contains forward-looking statements which are based on the current estimates and assumptions made by the assembly team of SiLLC. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by SiLLC and its affiliated groups depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside SiLLC‘s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. SiLLC neither plans nor undertakes to update forward-looking statements.

All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed.Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC International.

WISeKey Announces the Sale of its 51% Stake in ARAGO for EUR 25.5 Million

WISeKey Announces the Sale of its 51% Stake in ARAGO for EUR 25.5 Million

April 25, 2022 12:30 ET | Source: Wisekey International Holding SA

WISeKey Announces the Sale of its 51% Stake in ARAGO for EUR 25.5 Million

WISeKey Realizes More than 5x Return on Initial Cash Investment in Arago While Preserving Strategic Cooperation on AI for IoT Applications

Geneva, Switzerland – April 25, 2022 – Ad-Hoc announcement pursuant to Art. 53 of SIX Listing Rules – WISeKey International Holding Ltd (NASDAQ: WKEY / SIX: WIHN) (“WISeKey” or the “Company”), a leading global cybersecurity, AI, Blockchain and IoT company, today announced the sale of its 51% stake in arago, a German Artificial Intelligence (“AI”) Platform company, after having received assurances about the source and the timing of the funding.

In August 2020, WISeKey and arago started a combined journey to conquer the application of AI in the IoT space. After a careful consideration, due to different business approaches and go to market strategies for WISeKey’s and arago’s Automation platform, a decision was made to separate the companies while keeping the strategic partnership and technology integration WISeAI intact.

WISeKey is selling its 51% stake in arago back to a German consortium of investors led by arago’s founder through his investment company, OGARA GmbH, for EUR 25.5 million, which is over 5 times the initial investment made by WISeKey to acquire its 51% stake. WISeKey signed a Share Purchase and Transfer Agreement on March 14, 2022 and, as stated in the Annual Report, this Agreement was only effective upon the Company receiving sufficient proof of the availability of the funding.

Since its acquisition, WISeKey has made significant investments to explore the integration of arago AI with WISeKey’s Trust and IoT applications. When taking into account these investments, the net cash proceeds from the sale to WISeKey is EUR 17 million.

The continuing partnership between WISeKey and arago will ensure that both companies can use each other’s technology to add to their businesses. For WISeKey this means having the license to use HIRO AI as part of the IoT solutions offered to its customer base. WISeKey’s certification ability and trust platform will make arago’s platform more secure and allow the application of enterprise AI with less pre-requirements of data. Both companies will continue working together on the increasing adoption of AI and IoT convergence as one of the primary factors that is driving the growth of the IoT market. Over the past five years, a rapid surge in the adoption of AI IoT cloud services has been witnessed. It is driven by its capabilities to provide enterprise-wide array of resources they can utilize to scale, orchestrate, and support their operations.

“The business combination has now evolved into a strategic partnership to deploy WISeAI,” said Carlos Moreira, WISeKey’s CEO. “After finding good technical integration of assets, the challenges of and required investment in maintaining both WISeKey and arago operations under one roof neither justified the increased overhead nor allowed us to fully deploy the valuation potential in both companies.”

“The sale of arago whilst retaining a strategic partnership makes complete sense for both parties,” said Peter Ward, WISeKey’s CFO. “The immediate benefit to WISeKey will be a significant reduction in our cash burn, whilst providing us with an influx of funds to support future business development in the areas of Cybersecurity, IoT and NFT technologies. This sale will also reduce our operational losses and enable us to move faster towards profitability.”

Following the sale, all WISeKey options given to Hans-Christian Boos to exchange his remaining 49% in arago representing 12.3 million WISeKey Class B shares will be cancelled and returned back to WISeKey as part of the deal thus reducing substantially the dilution for WISeKey shareholders. Hans-Christian Boos will also step down as board member of WISeKey to be replaced by an industry expert focused on WISeKey’s IoT Cybersecurity solutions.

A separate announcement on the details of the future strategic cooperation between WISeKey and arago will follow in due time.

Mr. Moreira added, “With AI being the driver of the post-industrial world, we were able to make a great return on our investment and we are on track to making AI an important building block in our solutions though the strategic partnership with arago deploying the WISeAI solution.”

About arago

arago GmbH, (AG Frankfurt, HRB 100909) is a German technology leader providing the benefits of Artificial Intelligence to enterprise customers globally through Knowledge Automation. Founded in Frankfurt am Main 1995 the company uses cutting edge AI algorithms to automatically operate any business process.

 

About WISeKey:

WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey microprocessors secure the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an install base of over 1.6 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.). WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors produce a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.

Our technology is Trusted by the OISTE/WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.

Press and investor contacts:

WISeKey International Holding Ltd
Company Contact: Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
info@wisekey.com

WISeKey Investor Relations (US)
Contact: Lena Cati
The Equity Group Inc.
Tel: +1 212 836-9611
lcati@equityny.com

Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FInSa’s predecessor legislation or advertising within the meaning of the FinSA, or within the meaning of any other securities regulation. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

The securities offered will not be, and have not been, registered under the United States of America Securities Act of 1933, as amended, and may not be offered or sold in the United States of America, absent registration or an applicable exemption from the registration requirements of said Act.


Disclaimer
This document contains forward-looking statements which are based on the current estimates and assumptions made by the assembly team of SiLLC. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, forecast and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by SiLLC and its affiliated groups depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside SiLLC‘s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. SiLLC neither plans nor undertakes to update forward-looking statements.

All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed.Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC International.

WISeKey Reports FY 2021 Audited Consolidated Financial Results

WISeKey Reports FY 2021 Audited Consolidated Financial Results

Schedules conference call for Friday, April 29 at 3:00 pm CET (9:00 am ET)

  • Revenue growth: 51% increase in FY 2021 revenue to $22.3 million, as compared to $14.8 million in FY 2020.
  • Increase in gross profit margin: FY 2021 gross profit margin increased to 41% from 37% in FY 2020.
  • Strong cash position: cash and cash equivalents together with restricted cash increased to $34.4 million at December 31, 2021, from $21.8 million at December 31, 2020.

Geneva, Switzerland, April 14, 2022 – Ad-Hoc announcement pursuant to Art. 53 of SIX Listing Rules– WISeKey International Holding Ltd. (NASDAQ: WKEY / SIX: WIHN) (“WISeKey” or the “Company” or the “Group”), a leading cybersecurity and IoT company, announced today its audited consolidated financial results for full year (FY) 2021 (period ended December 31, 2021).

Carlos Moreira, WISeKey’s Founder and CEO, noted, “In 2021, demand for WISeKey’s products and services substantially increased. With a 51% increase in revenue, the Group is back on its growth path, supported by investments in R&D aiming to remain at the edge of technology, and investments focused on strengthening our sales force. A large part of our revenue increase came from the new AI revenue stream after the acquisition of a 51% controlling interest in arago GmbH (“arago”) in February 2021. During the year, we invested significantly in arago to streamline its operations and to try to get the company to improve its operational efficiencies.”

Mr. Moreira added, “2022 is set to be another strong year for WISeKey on several fronts. Demand for our IoT products remains very high and we have already started scheduling deliveries for 2023. While we continue to face semiconductors supply chain shortages, we are looking at every option to further shorten customer delivery times. WISeKey is positioning itself as a strong, reliable and customer-focused supplier. We are progressing well on our two new revenue streams with the launch of the first WISeSaT PocketQube Satellite in January 2022 and the expansion of the NFT portfolio available on our WISe.ART NFT platform which already includes over 300 artists.”

As regards to operational costs, in 2022 we will continue to invest strongly in research and development, following $7.0 million of investments made in 2021, as we have re-focused our efforts on software components that form the USP for our IoT products.

The final significant movement on the balance sheet is the increase in the balance of our convertible notes, which relates to the issuance of two new convertible bonds for a total of $22 million in June 2021. This balance has been currently reduced to just over $10 million, and under the terms of the agreement, we have an additional $11.5 million available to draw down.

WISeKey’s FY21 audited consolidated financial results are available at https://www.wisekey.com/company/investors/financial-reports/.

2021 KEY FINANCIAL AND OPERATIONAL HIGHLIGHTS:

  • Revenue growth: 51% increase in revenue to $22.3 million for FY 2021, compared to $14.8 million in FY 2020.
  • Increase in gross profit margin: FY 2021 gross profit margin increased to 41% from 37% in FY 2020.
  • Strong cash position: cash and cash equivalents together with restricted cash increased to $34.4 million at December 31, 2021, from $21.8 million at December 31, 2020.
  • Acquired 51% controlling interest in arago GmbH (arago) on February 1, 2021: arago’s leading technology provides AI to enterprises, globally, through Knowledge Automation provides WISeKey with an opportunity to approach the fast-growing AIoT market. The combination of arago’s AI based Knowledge Automation and Data platform HIRO and WISeKey’s Cybersecurity, European Root of Trust and IoT/semiconductors technologies creates the AIoT offering that integrates semiconductors, smart sensors, IoT systems, Artificial Intelligence and a data cloud to deliver to customers a unique offering to power innovation and digital transformation. Using WISeKey’s cybersecurity technology and IoT network, data will be collected in HIRO where it can be processed and through automation acted upon in real time in a highly secure environment.
  • Development and launch of the WISe.ART NFT auction platform: an innovative platform where WISeKey adds identification to the emerging NFT trade market, therefore ensuring that NFTs sold on its platform are genuine. Our WISe.ART NFT platform provides the most secure and scalable blockchain back-end for creating real digital twins for valuable objects and trading high-value NFTs from the collectible and luxury space, incorporating vetting, provenance, proof of ownership, and follow-on monetization control into the NFTs. The revenue streams arising from WISeArt will be split across two key areas.
    • Firstly, we are charging commissions on the sales that are carried out on the WISeArt platform. This is a percentage of the total sale and will depend upon multiple factors but, ultimately, will be a relatively straight-forward revenue transaction.
    • Secondly, we are offering a white label version of the WISeArt platform that can be taken by clients that wish to have their own branded platform for auctions and sales. Here we would generate a one-off fee for the platform sale, as well as fees for the set-up and installation, with an ongoing hosting, maintenance and support packages being added with a separate annual fee. Our intention is that, with the hosting still being carried out by WISeKey, commission fees would also still apply to the sales on the platform.

2022 KEY GROWTH AREAS

  • The launch of the WISe.ART NFT platform in 2021 is expected to provide new WISe.ART revenue streams in the shape of commissions on the sales carried out on the platform, and the sale of a white label version of the WISe.ART platform for clients that wish to have their own branded platform for auctions and sales.
  • The launch of the first WISeSaT PocketQube Satellite in January 2022 is the result of the investment of WISeKey in FOSSA Systems to integrate their picosatellite technology into the WISeKey IoT Connect & Trust model and improve IoT communication in remote and poor connectivity areas.
  • New strategic partnerships to strengthen its position as IoT cybersecurity provider and to develop new use cases based on our established technologies (refer to page 29 of the financial report for details).
  • Investments in post-quantum cryptography that are resistant against quantum cryptanalysis so as to anticipate future cybersecurity threats, working in collaboration with the American National Institute of Standards and Technology (NIST) and the European Union Agency for Cybersecurity (ENISA).
  • Planned significant investment into new equipment to increase the production volume of semiconductors.
  • Investment in R&D to expand its patent portfolio.

FY 2021 RESULTS CONFERENCE CALL
Carlos Moreira, CEO and Peter Ward, CFO will host a conference call on Friday, April 29, 2022, at 3:00 p.m. CET / 9:00 a.m. ET to discuss these results, recent business developments and growth initiatives. A Q&A session will follow the prepared remarks.

Interested parties may participate in the call by dialing:

United States (Toll)877-445-9755
United States (Toll Free)201-493-6744
Spain (fixed) ATT:900 834 236
Spain (mobile) ATT:900 834 876
United Kingdom (fixed) ATT:0 800 756 3429
France (fixed) ATT /excl. Monaco:0 800 912 848
Switzerland (fixed) ATT:0 800 835 525
Switzerland (mobile) ATT:0 800 891 374
Italy (fixed) ATT:800 791 612
Italy (mobile) ATT:800 796 508
Netherlands (fixed) ATT:0 800 023 4340
Netherlands (mobile) ATT:0 800 022 3580
Germany (fixed) ATT:0 800 182 0040
Germany (mobile) ATT:0 800 184 4713

To access the call, please dial-in approximately five minutes before the start time. The call will also be simultaneously webcasted over the Internet via this link and such link will also be made available in the “Investor Relations” section of WISeKey’s website http://wisekey.com/investors/.

An archived version of the webinar will be available on WISeKey’s website following the live presentation. For any questions regarding the event, please email Lcati@equityny.com.

ADDITIONAL FINANCIAL & OPERATIONAL DATA

FY 2021 Key Financials – WISeKey Group

(Million US$)
US GAAP 20212020
Net sales22.314.8
Gross profit9.15.5
Operating loss as reported(26.7)(18.5)
Net income attributable to WISeKey as reported(20.3)(28.7)
Non-GAAP 20212020
EBITDA(25.7)(16.9)
Adjusted EBITDA(20.7)(15.8)
Total Cash and restricted cash34.421.8

Consolidated Statements of Comprehensive Income/(Loss) [as reported]

 12 months ended December 31,
USD’0002021 2020 2019
     
Net sales22,25814,77922,652
Cost of sales(12,869)(8,578)(12,871)
Depreciation of production assets(301)(736)(325)
Gross profit9,088  5,465  9,456
Other operating income18343180
Research & development expenses(7,007)(6,012)(6,422)
Selling & marketing expenses(10,226)(7,355)(7,929)
General & administrative expenses(18,726)(10,673)(15,789)
Total operating expenses(35,776) (23,997) (29,960)
Operating loss(26,688) (18,532) (20,504)
 
Non-operating income8,6381,1271,918
Debt conversion expense(325)
Gain on derivative liability44214
Gain / (loss) on debt extinguishment(233)
Interest and amortization of debt discount(1,057)(458)(742)
Non-operating expenses(4,755)(11,079)(3,670)
Loss from continuing operations before income tax expense(24,187) (28,898) (23,017)
 
Income tax expense93(9)(13)
Loss from continuing operations, net(24,094) (28,907) (23,030)
 
Discontinued operations: 
Net sales from discontinued operations1,934
Cost of sales from discontinued operations(791)
Total operating and non-operating expenses from discontinued operations(1,801)
Income tax recovery from discontinued operations42
Gain on disposal of a business, net of tax on disposal31,100
Income / (loss) on discontinued operations  30,484
 
Net income / (loss)(24,094) (28,907) 7,454
 
Less: Net income / (loss) attributable to noncontrolling interests(3,754)(248)(733)
Net income / (loss) attributable to WISeKey International Holding AG(20,340) (28,659) 8,187
Earnings per share
Earnings from continuing operations per share – Basic(0.34)(0.68)(0.64)
Earnings from continuing operations per share – Diluted(0.34)(0.68)(0.64)
Earnings from discontinued operations per share – Basic0.84
Earnings from discontinued operations per share – Diluted0.81
Earning per share attributable to WISeKey International Holding AG
Basic(0.28)(0.67)0.23
Diluted(0.28)(0.67)0.23
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments(1,534)1,729516
Change in unrealized gains related to available-for-sale debt securities1,9655,385
Defined benefit pension plans:
Net gain (loss) arising during period1,5721,189(2,199)
Reclassification adjustments(7,350)
Other comprehensive income / (loss)(5,347) 8,303  (1,683)
Comprehensive income / (loss)(29,441) (20,604) 5,771
Other comprehensive income / (loss) attributable to noncontrolling interests186(95)(127)
Other comprehensive income / (loss) attributable to WISeKey International Holding AG(5,533) 8,398  (1,556)
 
Comprehensive income / (loss) attributable to noncontrolling interests(3,567)(343)(860)
Comprehensive income / (loss) attributable
to WISeKey International Holding AG
(25,874) (20,261) 6,631

The notes are an integral part of our consolidated financial statements.

Consolidated Balance Sheets [as reported]

 As at December 31,
USD’0002021 2020
ASSETS   
Current assets   
Cash and cash equivalents34,24919,650
Restricted cash, current1102,113
Accounts receivable, net of allowance for doubtful accounts3,2612,900
Notes receivable from employees6837
Available-for-sale debt security9,190
Inventories2,7102,474
Prepaid expenses1,435649
Deferred charges, current836
Other current assets677814
Total current assets                       42,510  38,663
 
Noncurrent assets
Notes receivable, noncurrent190183
Deferred income tax assets63
Deferred tax credits8481,312
Property, plant and equipment net of accumulated depreciation5871,000
Intangible assets, net of accumulated amortization9,1869
Finance lease right-of-use assets171246
Operating lease right-of-use assets3,7062,502
Goodwill30,8418,317
Deferred charges, noncurrent169
Equity securities, at cost501
Equity securities, at fair value1301
Other noncurrent assets258176
Total noncurrent assets 46,295   14,218
TOTAL ASSETS 88,805   52,881
    
LIABILITIES
Current Liabilities
Accounts payable16,44813,099
Notes payable6,2494,115
Convertible note payable, current5,633
Deferred revenue, current487302
Current portion of obligations under finance lease liabilities55119
Current portion of obligations under operating lease liabilities950601
Income tax payable113
Other current liabilities5521,105
Total current liabilities24,752  24,977
Noncurrent liabilities
Bonds, mortgages, convertible note payable and other long-term debt458646
Convertible note payable, noncurrent9,0493,710
Deferred revenue, noncurrent10019
Finance lease liabilities, noncurrent67
Operating lease liabilities, noncurrent2,8781,901
Indebtedness to related parties, noncurrent2,395
Employee benefit plan obligation4,7696,768
Deferred income tax liability2,906
Other deferred tax liabilities6238
Other noncurrent liabilities57329
Total noncurrent liabilities22,674  13,478
TOTAL LIABILITIES47,426  38,455
SHAREHOLDERS’ EQUITY
Common stock – Class A400400
CHF 0.01 par value
           Authorized – 40,021,988 and 40,021,988 shares
Issued and outstanding – 40,021,988 and 40,021,988 shares
Common stock – Class B4,6852,490
CHF 0.05 par value
           Authorized – 138,058,468 and 63,234,625
           Issued – 88,120,054 and 47,622,689
           Outstanding – 80,918,390 and 42,839,554
Share subscription in progress1
Treasury stock, at cost (7,201,664 and 4,783,135 shares held)(636)(505)
Additional paid-in capital268,199224,763
Accumulated other comprehensive income / (loss)1,4076,940
Accumulated deficit(238,160)(217,820)
Total shareholders’equity attributable to WISeKey shareholders35,895  16,269
Noncontrolling interests in consolidated subsidiaries5,484(1,843)
Total shareholders’equity41,379  14,426
TOTAL LIABILITIES AND EQUITY 88,805  52,881

The notes are an integral part of our consolidated financial statements.

Non-GAAP Financial Measures
In managing WISeKey’s business on a consolidated basis, WISeKey management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting WISeKey’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, certain non-cash expenses related to acquisitions and share-based compensation expense, which may obscure trends in WISeKey’s underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance and allows for greater transparency with respect to key metrics used by management.

These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in WISeKey’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).”

Non-GAAP to GAAP Reconciliations

Financial Reconciliation of GAAP to non-GAAP Results (unaudited)12 months to December 31,
(Million US$)20212020
Operating loss as reported(26.7)(18.5)
Non-GAAP adjustments:
      Depreciation expense0.51.0
      Amortization expense on intangibles0.50.6
EBITDA(25.7)(16.9)
Non-GAAP adjustments:
Stock-based compensation3.80.4
Expenses settled in equity0.1
M&A-related legal fees0.90.5
M&A-related professional fees0.1
Listing-related professional fees0.10.1
Adjusted EBITDA(20.7)(15.8)
GAAP to Non-GAAP Cash and Cash Equivalents As of December 31,
(Million US$)20212020
Cash and cash equivalents as reported34.3*19.7
Restricted cash, current as reported0.12.1
Total Cash and restricted cash34.421.8
* Rounded up

About WISeKey

WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey microprocessors secure the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an install base of over 1.5 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.).  WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors produce a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.

Our technology is Trusted by the OISTE/WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.

Press and investor contacts:

WISeKey International Holding Ltd
Company Contact:  Carlos Moreira
Chairman & CEO
Tel: +41 22 594 3000
info@wisekey.com
WISeKey Investor Relations (US)
Contact:  Lena Cati
The Equity Group Inc.
Tel: +1 212 836-9611
lcati@equityny.com

Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.


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