REG - MyCelx Tech. Corp. MyCelx Tech. Corp.. - Half Year Results Statement <Origin Href="QuoteRef">MYXR.L</Origin> - Part 2
13/09/2017 07:07
- Part 2: For the preceding part double click ID:nRSM5671Qa
products are shipped and risk of loss has
transferred to customers, collection is probable, persuasive evidence of an
arrangement exists, and the sales price is fixed or determinable. The Company
offers customers the option to lease or purchase their equipment. Lease
agreements range from one to twenty-four months in length and are renewed at
the end of each agreement, if necessary. The lease agreements meet the
criteria for classification as operating leases; accordingly, revenue on lease
agreements is recognised as income over the lease term. Revenues on long-term
contracts related to construction of equipment are recognised, net of sales
tax, on the percentage-of-completion basis using costs incurred compared to
total estimated costs. Costs are recognised and considered for
percentage-of-completion as they are incurred in the manufacture of the
equipment. Therefore, revenues may not be related to the progress billings to
customers. Revenues are based on estimates, and the uncertainty inherent in
estimates initially is reduced progressively as work on the contract nears
completion. Revenues on sales in which equipment is pre-fabricated and stocked
in inventory are recognised, net of sales tax, upon shipment of the equipment
to the customer.
Contract costs include all direct labor and benefits, materials unique to or
installed to the project, subcontractor costs, as well as costs relative to
contract performance such as travel to a customer site and shipping charges.
Provision for estimated losses on uncompleted contracts is recorded in the
period in which such losses are probable and estimable. No such provisions
have been recognised as of 30 June 2017 and 2016, and 31 December 2016.
Changes in job performance, job conditions, and estimated profitability may
result in revisions to costs and income, which are recognised in the period in
which the revisions are determined. Actual results could vary from estimates
used in the financial statements.
Unbilled accounts receivable represents revenues recognised in excess of
amounts billed. Deferred revenue represents billings in excess of revenues
recognised. Contract retentions are recorded as a component of accounts
receivable.
Impairment of long-lived assets - Long-lived assets to be held and used,
including property and equipment and intangible assets with definite useful
lives, are assessed for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. If the
total of the expected undiscounted future cash flows is less than the carrying
amount of the asset, a loss, if any, is recognised for the difference between
the fair value and carrying value of the assets. Impairment analyses, when
performed, are based on the Company's business and technology strategy,
management's views of growth rates for the Company's business, anticipated
future economic and regulatory conditions, and expected technological
availability. For purposes of recognition and measurement, the Company groups
its long-lived assets at the lowest level for which there are identifiable
cash flows, which are largely independent of the cash flows of other assets
and liabilities. No impairment charges were recorded in the six months ended
30 June 2017 and 2016, and the year ended 31 December 2016.
Shipping and handling costs - Consistent with Financial Accounting Standards
Board ("FASB") Accounting Standards Codification ("ASC") 605-45-50 Shipping
and Handling Fees and Costs, the Company classifies shipping and handling
amounts billed to customers as revenue, and shipping and handling costs as a
component of costs of goods sold.
Research and development costs - Research and development costs are expensed
as incurred. There was no Research and development expense for the six months
ended 30 June 2017 and 2016, and the year ended 31 December 2016.
Advertising costs - The Company expenses advertising costs as incurred.
Advertising expense for the six months ended 30 June 2017 and 2016, and the
year ended 31 December 2016 was approximately $nil, $nil and $4,000,
respectively, and is recorded in selling, general and administrative
expenses.
Rent expense - The Company records rent expense on a straight-line basis for
operating lease agreements that contain escalating rent clauses. The deferred
rent liability included in other current liabilities in the accompanying
balance sheet represents the cumulative difference between rent expense
recognised on the straight-line basis and the actual rent paid.
Income taxes - The provision for income taxes for interim and annual periods
is determined using the asset and liability method, under which deferred tax
assets and liabilities are calculated based on the temporary differences
between the financial statement carrying amounts and income tax bases of
assets and liabilities using currently enacted tax rates. The deferred tax
assets are recorded net of a valuation allowance when, based on the weight of
available evidence, it is more likely than not that some portion or all of the
recorded deferred tax assets will not be realised in future periods. Decreases
to the valuation allowance are recorded as reductions to the provision for
income taxes and increases to the valuation allowance result in additional
provision for income taxes. The realisation of the deferred tax assets, net of
a valuation allowance, is primarily dependent on the ability to generate
taxable income. A change in the Company's estimate of future taxable income
may require an addition or reduction to the valuation allowance.
The benefit from an uncertain income tax position is not recognised if it has
less than a 50 percent likelihood of being sustained upon audit by the
relevant authority. For positions that are more than 50 percent likely to be
sustained, the benefit is recognised at the largest amount that is
more-likely-than-not to be sustained. An uncertain income tax position is not
recognised if it has less than a 50 percent likelihood of being sustained.
Where a net operating loss carried forward, a similar tax loss or a tax credit
carry forward exists, an unrecognised tax benefit is presented as a reduction
to a deferred tax asset. Otherwise, the Company classifies its obligations for
uncertain tax positions as other non-current liabilities unless expected to be
paid within one year. Liabilities expected to be paid within one year are
included in the accrued expenses account.
The Company recognises interest accrued related to tax in interest expense and
penalties in selling, general and administrative expenses. During the six
months ending 30 June 2017 and 2016, and the year ended 31 December 2016 the
Company recognised no interest or penalties.
Earnings per share - Basic earnings per share is computed using the weighted
average number of common shares outstanding during the period. Diluted
earnings per share is computed using the weighted average number of common and
potentially dilutive shares outstanding during the period. Potentially
dilutive shares consist of the incremental common shares issuable upon
conversion of the exercise of common stock options. Potentially dilutive
shares are excluded from the computation if their effect is antidilutive.
Total common stock equivalents that were excluded from computing diluted net
loss per share were approximately 1,043,441, 1,106,645, and 1,125,640 for the
six months ended 30 June 2017 and 2016, and the year ended 31 December 2016,
respectively.
Fair value of financial instruments - The Company uses the framework in ASC
820, Fair Value Measurements and Disclosures, to determine the fair value of
its financial assets. ASC 820 establishes a fair value hierarchy that
prioritises the inputs to valuation techniques used to measure fair value and
expands financial statement disclosures about fair value measurements.
The hierarchy established by ASC 820 gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3
measurements).
The three levels of the fair value hierarchy under ASC 820 are described
below:
· Level 1: Unadjusted quoted prices in active markets for identical assets
or liabilities that the Company has the ability to access at the measurement
date.
· Level 2: Inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly or indirectly.
· Level 3: Unobservable inputs for the asset or liability.
There were no significant transfers into or out of each level of the fair
value hierarchy for assets measured at the fair value for the six months ended
30 June 2017 and 2016, and the year ended 31 December 2016.
All transfers are recognised by the Company at the end of each reporting
period.
Transfers between Levels 1 and 2 generally relate to whether a market becomes
active or inactive. Transfers between Levels 2 and 3 generally relate to
whether significant relevant observable inputs are available for the fair
value measurement in their entirety.
The Company's financial instruments as of 30 June 2017 and 2016, and 31
December 2016 include cash and cash equivalents, accounts receivable, accounts
payable, the line of credit, and the note payable. The carrying values of cash
and cash equivalents, accounts receivable, accounts payable, and the line of
credit approximate fair value due to the short-term nature of those assets and
liabilities. The Company believes it is impractical to disclose the fair value
of the note payable as it is an illiquid financial instrument.
Foreign currency transactions - From time to time the Company transacts
business in foreign currencies (currencies other than the United States
Dollar). These transactions are recorded at the rates of exchange prevailing
on the dates of the transactions. Foreign currency transaction gains or losses
are included in selling, general and administrative expenses.
Share-based compensation - The Company issues equity-settled share-based
awards to certain employees, which are measured at fair value at the date of
grant. The fair value determined at the grant date is expensed, based on the
Company's estimate of shares that will eventually vest, on a straight-line
basis over the vesting period. Fair value for the share awards representing
equity interests identical to those associated with shares traded in the open
market is determined using the market price at the date of grant. Fair value
is measured by use of the Black Scholes valuation model (see Note 10).
Recently issued accounting standards - In May 2014, the FASB issued Accounting
Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers
(Topic 606)", as subsequently amended, which is the new comprehensive revenue
recognition standard that will supersede all existing revenue recognition
guidance under U.S. GAAP. The standards' core principle is that a company will
recognise revenue when it transfers promised goods or services to a customer
in an amount that reflects the consideration to which the company expects to
be entitled in exchange for those goods or services. In August 2015, the FASB
issued ASU 2015-14, which defers the effective date of ASU 2014-09 for all
entities by one year. Accordingly, the standard is effective for annual
periods beginning after 15 December 2018, and interim periods therein, with
early adoption permitted. Entities will have the option of using either a full
retrospective approach or a modified approach to adopt the guidance. The
Company is currently evaluating the impact of adopting this guidance but does
not expect it to have a material impact on the Company's financial
statements.
In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which
requires lessees to recognise on the balance sheet the assets and liabilities
for the rights and obligations created by the leases with lease terms of more
than twelve months. The recognition, measurement, and presentation of expenses
and cash flows arising from a lease by a lessee will continue to primarily
depend on its classification as a finance or operating lease. However, unlike
current U.S. GAAP, which requires only capital leases be recognised on the
balance sheet, the new standard will require both types of leases to be
recognised on the balance sheet. The new standard also requires disclosures
about the amount, timing, and uncertainty of cash flows arising from leases.
These disclosures include qualitative and quantitative requirements, providing
additional information about the amounts recorded in the financial statements.
The new standard is effective for fiscal years beginning after 15 December
2019, and for interim and annual periods thereafter, with early application
permitted. The Company is currently evaluating the impact of adopting this
guidance but does not expect it to have a material impact on the Company's
financial statements.
In March 2016, the FASB issued ASU 2016-09, "Stock Compensation (Topic 718):
Improvements to Employee Share-Based Payment Accounting", which amends several
aspects of the accounting for employee share-based payment transactions
including the accounting for income taxes, forfeitures and statutory tax
withholding requirements, as well as classification in the statement of cash
flows. The standard is effective for annual reporting periods beginning after
15 December 2017, and interim periods within annual periods beginning after 15
December 2018, with early application permitted. The Company is currently
evaluating the impact of adopting this guidance but does not expect it to have
a material impact on the Company's financial statements.
3. Accounts receivable
Accounts receivable and their respective allowance amounts at 30 June 2017 and
2016, and 31 December 2016:
30 June2017US$000 30 June2016US$000 31 December2016US$000
Accounts receivable 4,074 2,502 2,084
Less: allowance for doubtful accounts (208) - (143)
Total receivable - net 3,866 2,502 1,941
4. Inventories
Inventories consist of the following at 30 June 2017 and 2016, and 31 December
2016:
30 June2017US$000 30 June2016US$000 31 December2016US$000
Raw materials 735 797 756
Work-in-progress 4 1 -
Finished goods 2,331 2,471 2,434
Total inventory - net 3,070 3,269 3,190
5. Property and equipment
Property and equipment consists of the following at 30 June 2017 and 2016, and
31 December 2016:
30 June2017US$000 30 June2016US$000 31 December2016US$000
Land 709 709 709
Building 2,724 2,724 2,724
Leasehold improvements 341 340 341
Office equipment 718 745 723
Manufacturing equipment 854 917 854
Research and development equipment 514 514 514
Purchased software 222 222 222
Equipment leased to customers 8,464 8,884 8,837
Construction in progress 443 826 730
14,989 15,881 15,654
Less: accumulated depreciation (5,690) (4,668) (5,167)
Property and equipment - net 9,299 11,213 10,487
During the six months ended 30 June 2017 and 2016, and the year ended 31
December 2016, the Company removed property, plant and equipment and the
associated accumulated depreciation of approximately $71,000, $48,000 and
$183,000, respectively, to reflect the disposal of property, plant and
equipment.
Depreciation expense for the six months ended 30 June 2017 and 2016, and the
year ended 31 December 2016 was approximately $594,000, $708,000 and
$1,342,000, respectively, and includes depreciation on equipment leased to
customers. Depreciation expense on equipment leased to customers included in
cost of goods sold for the six months ended 30 June 2017 and 2016, and the
year ended 31 December 2016 was $401,000, $460,000 and $885,000,
respectively.
6. Intangible assets
During 2009, the Company entered into a patent rights purchase agreement with
a shareholder. The agreement provided for the immediate payment of $28,000 in
2009 with the possibility of an additional $72,000 based on profits on the
sales of a particular product. During 2010, the Company paid $22,000 based on
profits on the sales of the product and paid the remaining $50,000 in 2011.
The patent is amortised utilising the straight-line method over a useful life
of 17 years which represents the legal life of the patent from inception.
Accumulated amortisation on the patent was approximately $42,000, $36,000 and
$39,000 as of 30 June 2017 and 2016, and 31 December 2016, respectively.
In addition to the purchased patent, the Company has internally developed
patents. Internally developed patents include legal and registration costs
incurred to obtain the respective patents. The Company currently holds various
patents and numerous pending patent applications in the United States, as well
as numerous foreign jurisdictions outside of the United States.
Intangible assets as of 30 June 2017 and 2016, and 31 December 2016 consist of
the following:
Weighted AverageUseful lives 30 June2017US$000 30 June2016US$000 31 December2016US$000
Internally developed patents 15 years 1,255 1,177 1,240
Purchased patents 17 years 100 100 100
1,355 1,277 1,340
Less accumulated amortisation (511) (466) (488)
Intangible assets - net 844 811 852
Approximate aggregate future amortisation expense is as follows:
Year ending 31 December (USD, in thousands)
2017 23
2018 46
2019 42
2020 41
2021 41
Thereafter 223
Amortisation expense for the six months ended 30 June 2017 and 2016, and the
year ended 31 December 2016 was approximately $23,000, $20,000 and $42,000,
respectively.
7. Income taxes
The components of income taxes shown in the consolidated statements of
operations are as follows:
30 June2017US$000 30 June2016US$000 31 December2016US$000
Current:
Federal - - -
Foreign 152 116 197
State - - 2
Total current provision 152 116 199
Deferred:
Federal - - -
Foreign - - -
State - - -
Total deferred provision - - -
Total provision for income taxes 152 116 199
The provision for income tax varies from the amount computed by applying the
statutory corporate federal tax rate of 34 percent, primarily due to the
effect of certain nondeductible expenses, foreign withholding tax, and changes
in valuation allowances.
A reconciliation of the differences between the effective tax rate and the
federal statutory tax rate is as follows:
30 June2017 30 June2016 31 December2016
Federal statutory income tax rate 34.0% 34.0% 34.0%
State tax rate, net of federal benefit (0.4%) 0.7% (0.1%)
Valuation allowance (47.9%) (37.5%) (36.2%)
Other (0.4%) (0.1%) 0.1%
Foreign withholding tax (28.5%) (5.5%) (4.2%)
Effective income tax rate (43.2%) (8.4%) (6.4%)
The significant components of deferred income taxes included in the balance
sheets are as follows:
30 June2017US$000 30 June2016US$000 31 December2016US$000
Deferred tax assets
Net operating loss 7,289 6,586 7,140
Equity compensation 424 424 413
Research and development credits 159 159 159
Allowance for bad debts 72 - 49
Accrued liability 4 8 7
Charitable contributions 10 9 10
Other 37 24 37
Total gross deferred tax asset 7,995 7,210 7,815
Deferred tax liabilities
Property and equipment (982) (962) (971)
Total gross deferred tax liability (982) (962) (971)
Net deferred tax asset before valuation allowance 7,013 6,248 6,844
Valuation allowance (7,013) (6,248) (6,844)
Net deferred tax asset (liability) - - -
Deferred tax assets and liabilities are recorded based on the difference
between an asset or liability's financial statement value and its tax
reporting value using enacted rates in effect for the year in which the
differences are expected to reverse, and for other temporary differences as
defined by ASC-740, Income Taxes. At 30 June 2017, the Company has recorded a
valuation allowance of $7.0 million for which it is more likely than not that
the Company will not receive future tax benefits due to the uncertainty
regarding the realisation of such deferred tax assets.
As of 30 June 2017, the Company has approximately $20.4 million of gross U.S.
federal net operating loss carry forwards and $5.3 million of gross state net
operating loss carry forwards that will begin to expire in the 2019 tax year.
The FASB issued Interpretation ASC-740-10-25, Income Taxes, an interpretation
of ASC-740 which clarifies the accounting for income taxes by prescribing the
minimum recognition threshold a tax position is required to meet before being
recognised in the financial statements. Under ASC-740, the impact of an
uncertain income tax position on the income tax return must be recognised at
the largest amount that is more likely than not to be sustained upon audit by
the relevant taxing authority. ASC-740 also provides guidance on
derecognition, measurement, classification, interest and penalties, accounting
in interim periods, disclosure and transition. ASC-740 applies to all tax
positions related to income taxes.
As a result of the adoption and implementation of ASC-740, a tax position is
recognised as a benefit only if it is "more likely than not" that the tax
position would be sustained in a tax examination, with a tax examination being
presumed to occur. The amount recognised is the largest amount of tax benefit
that has a greater than 50 percent likelihood of being realised on
examination. For tax positions not meeting the "more likely than not" test, no
tax benefit is recorded. The Company recognises interest and penalties related
to tax positions in income tax expense. At 30 June 2017 and 2016, and 31
December 2016, there was no accrual for uncertain tax positions or related
interest.
The Company's tax years 2013 through 2016 remain subject to examination by
federal, state and foreign income tax jurisdictions.
8. Line of credit
In October 2014, the Company entered into a bank line of credit that allows
for borrowings up to $500,000. The line of credit is revolving and is payable
on demand. There was no balance on the line of credit at 30 June 2017 and
2016, and 31 December 2016. The facility matures in October 2017 and is
secured by the assignment of a deposit account held by the lender. The line of
credit carries a variable interest rate of 0.5 percentage points under an
independent index which is the Wall Street Journal Prime and is calculated by
applying the ratio of the interest rate over a year of 360 days multiplied by
the outstanding principal balance multiplied by the actual number of days the
principal balance is outstanding. The interest rate on 30 June 2017 and 2016,
and 31 December 2016 was 3.75 percent, 3.00 percent and 3.25 percent,
respectively. There was no interest expense related to this loan for the six
months ended 30 June 2017 and 2016, and the year ended 31 December 2016.
9. Note payable
On 27 March 2013, the Company entered into a term loan agreement with a lender
for the purchase of property and a building for its manufacturing operations
and corporate offices. The note is secured by the property and building. The
Company borrowed proceeds of $2,285,908 at a fixed interest rate of 4.45
percent. The loan has a ten year term with monthly payments based on a twenty
year amortisation. There is a one-time payment at the end of the term of the
note of approximately $1,400,000. In accordance with the terms of the
agreement, the Company is required to keep $500,000 in a deposit account with
the lending bank. As of 30 June 2017 and 2016, and 31 December 2016, the
Company had restricted cash of $500,000 related to the loan agreement. Future
maturities of long-term debt are as follows as of 30 June 2017:
Year ending 31 December (USD, in thousands)
2017 43
2018 89
2019 93
2020 97
2021 102
Thereafter 1,540
1,964
10. Stock compensation
Stock options
In July 2011, the Company's shareholders approved the Conversion Shares and
the Directors' Shares, as well as the Plan Shares and Omnibus Performance
Incentive Plan ("Plan"). This included the termination of all outstanding
stock incentive plans, cancellation of all outstanding stock incentive
agreements, and the awarding of stock incentives to Directors and certain
employees and consultants. The Company established the Plan to attract and
retain Directors, officers, employees and consultants. The Company reserved an
amount equal to 10 percent of the Common Shares issued and outstanding
immediately following the Public Offering.
Upon the issuance of these additional shares, an award of share options was
made to the Directors and certain employees and consultants, and a single
award of restricted shares was made to a former Chief Financial Officer. In
addition, additional stock options were awarded in each year subsequent. The
awards of stock options and restricted shares made upon issuance were in
respect of 85 percent of the Common Shares available under the Plan,
equivalent to 8.5 percent of the Public Offering. The total number of shares
reserved for stock awards and options under this Plan is 1,877,011 with
1,192,042 shares allocated as of 30 June 2017. The shares are all allocated to
employees, executives and consultants.
The options granted to Non-Executive Directors, unless otherwise agreed, vest
contingent on continuing service with the Company at the vesting date and
compliance with the covenants applicable to such service.
Employee options either vest over three years with a third vesting ratably
each year, or partially on issuance and partially over the following 24 month
period. Vesting accelerates in the event of a change of control. Options
granted to Non-Executive Directors and one executive vest partially on
issuance and will vest partially one to two years later. The remaining
Non-Executive Director options expired at the end of 2016.
As discussed in Note 2, the Company uses the Black Scholes valuation model to
measure the fair value of options granted. Since the Company does not have a
sufficient trading history from which to calculate its historical volatility,
the Company's expected volatility is based on a basket of comparable
companies' historical volatility. As the Company's initial options were
granted in 2011, the Company does not have sufficient history of option
exercise behavior from which to calculate the expected term. Accordingly, the
expected terms of options are calculated based on the short-cut method
commonly utilised by newly public companies. The risk free interest rate is
based on a blended average yield of two and five year United States Treasury
Bills at the time of grant. The assumptions used in the Black Scholes option
pricing model for options granted in 2016 and 2017 were as follows:
Number of Options Granted Grant Date Risk-Free Interest Rate Expected Term Volatility Exercise Price Fair Value Per Option
2016 25,000 01/02/2016 1.62% 5.75 years 56.00% $0.34 $0.18
345,000 14/03/2016 1.70% 5.75 years 54.50% $0.40 $0.20
2017 205,000 26/05/2017 1.69% 5.75 years 56.70% $0.75 $0.39
The Company assumes a dividend yield of 0.0%.
The following table summarises the Company's stock option activity for the six
months ended 30 June 2017:
Stock Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Average Grant Date Fair Value
Outstanding at 31 December 2016 1,139,556 $2.56 5.9 $1,372,852
Granted 205,000 $0.75 5.8 $79,950
Forfeited (152,514) $2.04
Outstanding at 30 June 2017 1,192,042 $2.31 5.9 $1,300,481
Exercisable at 30 June 2017 769,292 $3.15 6.4
A summary of the status of unvested options as of 30 June 2017 and changes
during the six months ended 30 June 2017 is presented below:
Unvested Options Shares Weighted-Average Fair Value at Grant Date
Unvested at 31 December 2016 341,833 $0.65
Granted 205,000 $0.39
Vested (54,000) $1.16
Forfeited (70,083)
Unvested at 30 June 2017 422,750 $0.41
As of 30 June 2017, total unrecognised compensation cost of $151,000 was
related to unvested share-based compensation arrangements awarded under the
Plan.
11. Commitments and contingencies
Operating leases - The Company leases certain facilities and equipment under
non-cancelable operating leases which expire at varying times between January
2018 and May 2019. Certain of these leases have escalating rent payments which
result in the Company recording a deferred rent liability.
Future minimum lease payments under the operating leases, together with the
present value of minimum lease payments as of 30 June 2017 are as follows:
Future Lease Payments
US$000
Year Ending 31 December 201720182019 9911645
Total future lease payments 260
Rent expense for the six months ended 30 June 2017 and 2016, and the year
ended 31 December 2016 was approximately $165,000, $172,000 and $337,000,
respectively.
12. Related party transactions
The Company has held a patent rights purchase agreement since 2009 with a
shareholder as described in Note 6.
13. Segment and geographic information
ASC 280-10, Disclosures About Segments of an Enterprise and Related
Information (ASC 280-10), establishes standards for reporting information
about operating segments. ASC 280-10 requires that the Company report
financial and descriptive information about its reportable operating segments.
Operating segments are components of an enterprise for which separate
financial information is available that is evaluated regularly by the chief
operating decision maker (CODM) in deciding how to allocate resources and in
assessing performance. The Company's CODM is the Chief Executive Officer
(CEO). While the CEO is apprised of a variety of financial metrics and
information, the business is principally managed on an aggregate basis as of
30 June 2017. For the six months ended 30 June 2017, the Company's revenues
were generated primarily in the Middle East and the United States (U.S.).
Additionally, the majority of the Company's expenditures and personnel either
directly supported its efforts in the Middle East and the U.S., or cannot be
specifically attributed to a geography. Therefore, the Company has only one
reportable operating segment.
Revenues from customers by geography are as follows:
(USD, in thousands) Six months ended 30 June2017 Six months ended 30 June2016 Year ended 31 December2016
Middle East 2,767 2,609 3,989
United States 816 811 1,766
Other 2,294 525 2,168
Total 5,877 3,945 7,923
Equipment leased to customers by geography is as follows:
(USD, in thousands) Six months ended 30 June2017 Six months ended 30 June2016 Year ended 31 December2016
Middle East 6,391 6,391 6,391
United States 1,698 2,118 2,071
Other 375 375 375
Total 8,464 8,884 8,837
14. Concentrations
At 30 June 2017, two customers, one with four contracts with three separate
plants represented 84 percent of accounts receivable. During the six months
ended 30 June 2017, the Company received 81 percent of its gross revenue from
two customers, one with four contracts with three separate plants.
At 30 June 2016, two customers, one with three contracts with three separate
plants represented 78 percent of accounts receivable. During the six months
ended 30 June 2016, the Company received 62 percent of its gross revenue from
one customer with three contracts with three separate plants.
At 31 December 2016, two customers, one with three contracts with three
separate plants, represented 61 percent of accounts receivable. During the
year ended 31 December 2016, the Company received 67 percent of its gross
revenue from two customers, one with three separate plants.
15. Subsequent events
The Company discloses material events that occur after the balance sheet date
but before the financials are issued. In general, these events are recognised
in the financial statements if the conditions existed at the date of the
balance sheet, but are not recognised if the conditions did not exist at the
balance sheet date. Management has evaluated subsequent events through 13
September 2017, the date the interim results were available to be issued, and
no events have occurred which require further disclosure.
Forward Looking Statements
This release contains certain statements that are or may be "forward-looking
statements". These statements typically contain words such as "intends",
"expects", "anticipates", "estimates" and words of similar importance. All the
statements other than statements of historical facts included in this
announcement, including, without limitation, those regarding the Company's
financial position, business strategy, plans and objectives of management for
future operations (including development plans and objectives relating to the
Company's products and services) are forward-looking statements. By their
nature, forward-looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future and
therefore undue reliance should not be placed on such forward-looking
statements. There are a number of factors that could cause the actual results,
performance or achievements of the Company to be materially different from
future results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding the Company's present and future business
strategies and the environment in which the Company will operate in the future
and such assumptions may or may not prove to be correct. Forward-looking
statements speak only as at the date they are made. Neither the Company nor
any other person undertakes any obligation (other than, in the case of the
Company, pursuant to the AIM Rules for Companies) to update publicly any of
the information contained in this announcement, including any forward-looking
statements, in the light of new information, change in circumstances or future
events.
This information is provided by RNS
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See all newsREG - MyCelx Tech. Corp. MyCelx Tech. Corp.. - Application for Block Admission <Origin Href="QuoteRef">MYXR.L</Origin>
AnnouncementREG - MyCelx Tech. Corp. MyCelx Tech. Corp.. - Closure of Restricted Stock Line <Origin Href="QuoteRef">MYXR.L</Origin>
AnnouncementREG - MyCelx Tech. Corp. MyCelx Tech. Corp.. - Consolidation of Stock Lines <Origin Href="QuoteRef">MYXR.L</Origin>
AnnouncementREG - MyCelx Tech. Corp. MyCelx Tech. Corp.. - Half Year Results Statement <Origin Href="QuoteRef">MYXR.L</Origin> - Part 1
AnnouncementREG - MyCelx Tech. Corp. MyCelx Tech. Corp.. - Half Year Results Statement <Origin Href="QuoteRef">MYXR.L</Origin> - Part 2
Announcement