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June 30,
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December 31,
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2022
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2021
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Unaudited
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Audited
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CURRENT ASSETS
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Cash and cash equivalents
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Restricted bank deposits
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Trade receivable, net
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Other accounts receivable and prepaid expenses
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Inventories, net (Note 3)
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Patents
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Total current assets
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LONG-TERM ASSETS
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Severance pay funds
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Deferred tax long term
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Property and equipment, net
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Other Intangible assets, net (Note 4)
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Goodwill
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Operating lease right-of-use asset
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Total non-current assets
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TOTAL ASSETS
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CURRENT LIABILITIES
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Trade payables
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Employees and payroll accruals
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Related parties
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Accrued expenses and other liabilities
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Deferred revenue
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Short-term loan and others
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Total current liabilities
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LONG-TERM LIABILITIES
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Long-term loan
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Deferred revenue
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Deferred tax liability LT
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Accrued severance pay
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Operating lease liabilities
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Total non-current liabilities
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SHAREHOLDERS' EQUITY:
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Ordinary shares
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Additional paid-in capital
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Accumulated deficit
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Total shareholders' equity
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Total Liabilities and Shareholders' Equity
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Six months ended June 30
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2022
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2021
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Unaudited
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Unaudited
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REVENUES
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COST OF REVENUES
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GROSS PROFIT
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OPERATING EXPENSES
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Research and development, net
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Sales and marketing
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General and administration
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Total operating expenses
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OPERATING (LOSS) INCOME
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FINANCIAL EXPENSES (INCOME), NET
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LOSS BEFORE INCOME TAX
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INCOME TAX BENEFIT
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NET LOSS FOR THE PERIOD
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NET LOSS PER SHARE
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Basic
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Diluted
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Weighted average number of ordinary shares used in computing basic net loss per share
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Weighted average number of ordinary shares used in computing diluted net loss per share
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Ordinary shares
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Additional
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Total
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Number of
Shares |
Share
capital |
paid-in
capital |
Accumulated
deficit |
shareholders'
equity |
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Balance as of December 31, 2020
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(
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Changes during the six months ended June 30, 2021 (unaudited):
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Net loss
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-
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(
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)
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(
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)
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Exercise of options and debt conversion
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Balance as of June 30, 2021 (unaudited)
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(
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Balance as of December 31, 2021
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(
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)
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Changes during the six months ended June 30, 2022 (unaudited):
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Net loss
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-
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(
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)
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(
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)
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Exercise of options and debt conversion
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Share Issuance
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Balance as of June 30, 2022 (unaudited)
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(
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)
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Six months ended June 30
|
|||||||
|
2022
|
2021
|
||||||
|
Unaudited
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Unaudited
|
||||||
Cash flows from operating activities:
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||||||||
Net loss
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(
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)
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(
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)
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||||
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||||||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
Depreciation and amortization
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Stock-based compensation
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Foreign Exchange differences
|
(
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) | ||||||
Increase in trade receivables, net
|
(
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)
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(
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)
|
||||
Decrease (Increase) in other accounts receivable and prepaid expenses
|
(
|
)
|
|
|||||
Increase in inventories, net
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(
|
)
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(
|
)
|
||||
Increase in other non-current assets
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|
||||||
Increase (decrease) in trade payables
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(
|
)
|
(
|
)
|
||||
Increase in employees and payroll accruals
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in accrued severance pay
|
(
|
)
|
(
|
)
|
||||
Increase in accrued expenses and other liabilities
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|
||||||
Net cash used in operating activities
|
(
|
)
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(
|
)
|
||||
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||||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(
|
)
|
(
|
)
|
||||
Purchase of Intangible assets
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|
||||||
Decrease (Increase) in severance pay fund
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|
||||||
Capitalization of software development costs
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(
|
)
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(
|
)
|
||||
Net cash provided by (used in) investing activities
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(
|
)
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(
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Issuance of share capital, net of issuance costs
|
|
|||||||
Proceeds from exercise of options and warrants, net
|
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|
||||||
Long-term debt, net
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|
||||||
Related parties
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) financing activities
|
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|
||||||
|
||||||||
Increase (decrease) in cash, cash equivalents and restricted cash
|
(
|
)
|
|
|||||
Cash, cash equivalents and restricted cash at the beginning of the year
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||||||
|
||||||||
Cash, cash equivalents and restricted cash at the end of the period
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NOTE 1: GENERAL
|
|
a. |
SuperCom Ltd. (the “Company”) is an Israeli resident company organized in 1988 in Israel. On January 24, 2013, the Company changed its name back to SuperCom Ltd, its original name, from Vuance Ltd. On September 12, 2013, the Company’s ordinary shares were approved for listing on the NASDAQ Capital Market and began trading under the ticker symbol “SPCB” on September 17, 2013. Previously, the Company’s ordinary shares traded on the OTCQB® electronic quotation service.
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b. |
Liquidity Analysis
|
The Company has experienced net losses and significant cash outflows from cash used in operating activities over the past 3 years. As of six months ended June 30, 2022, the Company had an accumulated deficit of $
Additionally, the Company secured financing of $
NOTE 1: GENERAL (Cont.)
|
c. |
Senior Secured Credit Facility
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NOTE 2: UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
NOTE 3: INVENTORIES, NET
|
|
June 30,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
|
|
$ |
|
$ | ||||
Raw materials, parts and supplies
|
|
|
||||||
Finished products
|
|
|
||||||
|
||||||||
|
|
|
NOTE 4: OTHER INTANGIBLE ASSETS, NET
|
|
June 30,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
|
|
$ | $ | |||||
Customer relationship & Other
|
|
|
||||||
Right of use
|
|
|
||||||
IP & Technology
|
|
|
||||||
Capitalized software development costs
|
|
|
||||||
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|
NOTE 5: COMMITMENTS AND CONTINGENT LIABILITIES – LITIGIATION
|
|