REG - T42 IOT Tracking Sol - Interim Results
29/08/2025 07:05
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RNS Number : 2100X T42 IOT Tracking Solutions PLC 29 August 2025
29 August 2025
t42 IoT Tracking Solutions Plc
("t42", the "Company" or, together with its subsidiaries, the "Group")
Interim Results
t42 IoT Tracking Solutions plc (AIM: TRAC) ("t42" or the "Company"), which
provides real-time tracking, security, and monitoring solutions for the global
supply chain, logistics, container, and freight market, announces its
unaudited results for the six months ended 30 June 2025.
Business Overview Highlights
• On track to achieve at least 200% year-over-year growth in Lokies
revenues, reflecting strong demand and market confidence in our products.
• Sales agreements announced since the beginning of the year are
progressing as expected, contributing to our solid commercial performance.
• The maturity date of the Company's two outstanding secured
convertible loan notes ("CLNs") has been extended until the end of 2027,
enhancing financial flexibility.
• Production cost reduction process has contributed to an increased
gross margin ("GM") of 48% in the first half of 2025 (H1 2024: 45%, FY 2024:
38%). This cost reduction is expected to further improve, targeting a further
GM increase to 55% in the second half of 2025.
H1 2025 Financials Highlights
• Revenues increased to $2.3 million (H1 2024: $2.0 million).
• Adjusted EBITDA improved to $239,000 (H1 2024: loss of $25,000).
Avi Hartmann, CEO of t42, commented:
"I opened the 2024 Annual Report with the following statement:"2024 has
already marked a significant turning point for t42, with new supply agreements
surpassing those of the entire previous year.". The first half of 2025
strongly reinforces this trend, showing improvement across key metrics -
revenue, sales volumes, and adjusted EBITDA. We have deferred both convertible
loans to the end of 2027, with one of them already being repaid in instalments
until then. This step enhances our financial flexibility and supports
sustainable growth. Our focus on improving product performance, particularly
in energy efficiency, continues to resonate with our customers and adds
significant value to their operations. With this momentum, we are confident in
our ability to drive innovation, expand our market presence, and lead the
container tracking industry in the years ahead."
Contacts:
t42 IoT Tracking Solutions Plc
Michael Rosenberg, Chairman 07785 727595
Avi Hartmann, CEO +972 5477 35663
Strand Hanson Limited (Nominated Adviser and Financial Adviser) James Harris / 020 7409 3494
Richard Johnson / Imogen Ellis
Peterhouse Capital Limited (Joint Broker) 020 7469 0930
Lucy Williams / Charles Goodfellow / Eran Zucker
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
CHAIRMAN'S STATEMENT
The first half of 2025 has marked a genuine step-change for the Company, with
commercial, operational, and financial achievements that strengthen our
position as a leading provider of supply chain monitoring and security
solutions worldwide.
Major $2.5 Million Contract
As reported post-period, on 12 August 2025, we signed a significant contract
for orders valued at in excess of $2.5 million. A portion of the revenue will
be recognised in the current year, making a meaningful contribution to our
2025 results, while the majority will be realised in 2026, contributing to a
year in which we anticipate further substantial growth. Importantly, all
purchases under this contract are paid in advance, delivering a positive
impact on our cash flow and supporting our growth strategy.
Strong Growth in Lokies Sales
One of the clearest indicators of the transformation underway is the growth in
Lokies sales. In the first half of 2024, we sold 1,800 units. In the first
half of 2025, sales rose sharply to 5,000 units - almost a threefold increase.
This not only drives immediate hardware revenue but also lays the foundation
for ongoing SaaS subscription income.
Loan Extensions - Strengthening Financial Flexibility
Towards the end of the first half, we signed two important agreements with our
principal lenders:
1. £0.925 million CLN - Loan repayment postponed until the end of 2027,
with monthly capital and interest repayments. Several payments have already
been completed under the new terms.
2. $1.35 million CLN - Loan repayment similarly postponed until the end
of 2027, with interest payments only.
These extension agreements allow additional resources to be channeled into
business investment.
Accelerated Product Development - Expanding the Portfolio
We continued to invest in complementary products for the supply chain market:
1. Kylos M - A compact tracking solution for boxes, pallets, and
trailers. Following a successful pilot, the product is now available for
commercial sales with strong demand.
2. Kylos Solar - Designed for rail freight and shipping containers, with
permanent installation and self-sustaining power supply, enabling long-term
security and management without ongoing maintenance. This system is already in
pilot use with several customers and is expected to receive commercial sales
approval shortly.
3. Kylos Label - A single-use tracking solution for one-way shipments,
disposed of at the end of the journey. Development is ongoing, with expected
portfolio inclusion in Q4 2025.
In addition, we have initiated development of a new solution for managing
access to gas storage facilities, allowing authorised supplier control and
alerting in cases of irregular activity.
EBITDA Improvement - Continuing Positive Momentum
Our multi-year focus on increasing sales, improving operational efficiency,
and restructuring financing is delivering tangible results. For the first half
of 2025, we achieved a positive adjusted EBITDA of $239,000, compared to an
adjusted EBITDA loss of $25,000 in the first half of 2024.
Progress on Previously Announced Contracts
1. Ecuador - The integration phase has been completed, with initial
vehicles already connected to our platform. We expect a continued increase in
deployments in the second half of the year.
2. Mexico - Approximately half of the contract has been executed, with
the remaining portion currently on hold. We will update the market once there
is more clarity on the implementation timeline.
OUTLOOK
We close the first half of 2025 with strong momentum - supported by major
contracts, improved liquidity, an expanded product range approaching
commercial launch, and a growing global demand for our solutions. Our team
remains fully focused on driving further expansion and delivering results that
will strengthen the Company's position and create lasting value for our
shareholders.
Michael Rosenberg OBE
Non-Executive Chairman
T42 IOT TRACKING SOLUTIONS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2025
T42 IOT TRACKING SOLUTIONS PLC
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
JUNE 30, 2025
INDEX
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: PAGE
Independent Auditors' report on review of interim financial information 5
Interim Condensed Consolidated Statements of Financial Position 6
Interim Condensed Consolidated Statements of Comprehensive Loss 7
Interim Condensed Consolidated Statements of Changes in Deficit 8
Interim Condensed Consolidated Statements of Cash Flows 9
Notes to the Interim Condensed Consolidated Financial Statements 10-19
Review Report of Independent Auditors
Introduction
We have reviewed the accompanying condensed consolidated interim statements of
financial position of t42 IoT Tracking Solutions PLC and its consolidated
companies (hereinafter - "the Group") as of June 30, 2025 and the related
condensed consolidated interim statements of comprehensive loss, changes in
shareholders' equity and cash flows for the six months then ended. Preparation
and presentation of these condensed consolidated financial statements in
conformity with International Accounting Standard No. 34 "Interim Financial
Reporting" are the responsibility of the Group's board of directors and
management. Our responsibility is to express a conclusion on these interim
consolidated financial statements based on our review.
Scope of Review
We conducted our review in accordance with Review Standard (Israel) No. 2410
of the Israel Accounting Standards Board, "Review of Interim Financial
Information for Interim Periods Performed by the Auditor of an Entity". A
review consists principally of inquiries of Company personnel, analytical
procedures applied to the financial data and other review procedures. A review
is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, we are not aware of any material modifications that
should be made to these interim consolidated financial statements in order for
them to be in conformity with International Accounting Standard No. 34.
Without qualifying our conclusion, we draw attention to the disclosure in Note
1B regarding the Company's financial position. As of June 30, 2025, the
Company has a deficit in capital and working capital of $3.3 million and $4.5
million, respectively. The Company's business results during the reporting
period amounted to an operating loss and negative cash flow from operating
activities.
At the date of approval of the financial statements, the Company's management
prepared forecasts of the Group's expected cash flows from its business
activities for the foreseeable future. Based on these forecasts, the Company's
management believes that the Company and its subsidiaries will be able to
continue their operations in the foreseeable future and to meet their existing
and expected liabilities, based, among other things, on efficiency made in
production, purchase agreements with customers and the provisions of Note 9 to
the financial statements.
Shtainmetz Aminoach & Co.
Certified public accountants (Israel)
A member of UHY worldwide
Tel Aviv, August 29, 2025
T42 IOT TRACKING SOLUTIONS PLC
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. Dollars in thousands
June 30 December 31
Note 2025 2024 2024
Unaudited Unaudited Audited
ASSETS
NON-CURRENT ASSETS :
Property, plant and equipment 301 384 341
Rights-of-use assets 919 1,080 1,039
Intangible assets 669 931 759
Trade receivables 72 202 136
Bank deposit 10 - 9
Total Non-Current Assets 1,971 2,597 2,284
CURRENT ASSETS :
Cash and cash equivalents 207 135 147
Inventory 6 868 1,273 1,117
Trade receivables 649 792 740
Other accounts receivable 235 108 86
Deposit - 8 -
Total Current Assets 1,959 2,316 2,090
6,124
TOTAL ASSETS 3,930 4,913 4,374
DEFICIT AND LIABILITIES
DEFICIT 3 (3,254) (2,314) (2,682)
NON-CURRENT LIABILITIES:
Long-term bank loans, net of current maturities - 50 13
Leasehold liabilities 717 791 770
Total Non-Current Liabilities 717 841 783
CURRENT LIABILITIES:
Short-term bank credit 70 46 68
Current maturities of long-term bank loans 55 69 74
Financial liabilities in fair value 4 9 1,026 238
Trade payables 799 906 1,106
Related parties 5 938 734 770
Other accounts payable 1,248 701 1,070
Current maturities of leasehold liabilities 209 173 202
Amortized cost of loans 9 3,139 2,731 2,745
Total Current Liabilities 6,467 6,386 6,273
TOTAL DEFICIT AND LIABILITIES 3,930 4,913 4,374
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
29 August 2025
Date of Approval Aviran Sabag Avi Hartmann
CFO
of the Financial Statements CEO
T42 IOT TRACKING SOLUTIONS PLC
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
U.S. Dollars in thousands
Six Months Ended June 30 Year Ended December 31
Note 2025 2024 2024
Unaudited Unaudited Audited
Revenues 2,293 2,039 4,158
Cost of revenues 6 (1,201) (1,124) (2,565)
Gross profit 1,092 915 1,593
Operating expenses:
Research and development (127) (54) (159)
Sales and marketing (192) (186) (366)
General and administrative (918) (947) (1,888)
Other expenses, net (52) (8) (64)
(1,289) (1,195) (2,477)
Operating loss (197) (280) (884)
Finance income 229 368 262
Finance expenses (923) (1,467) (1,126)
Net finance expenses 7 (694) (1,099) (864)
(891) (1,379) (1,748)
Total comprehensive loss for the year
Loss per share:
Basic and diluted loss per share (in dollars) 3 (0.014) (0.025) (0.032)
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
T42 IOT TRACKING SOLUTIONS PLC
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
U.S. Dollars in thousands
Premium on Shares Capital Reserve Reserve from Share-Based Payments Accumulated Loss
Share Total
Capital *
(Unaudited) - 13,543 89 1,258 (17,572) (2,682)
Balance- January 1, 2025
Issuance of share capital (See note 3) - 319 - - - 319
Comprehensive loss for the period - - - - (891) (891)
Balance - June 30, 2025 - 13,862 89 1,258 (18,463) (3,254)
(Unaudited)
Balance- January 1, 2024 - 13,543 89 1,253 (15,824) (939)
Share-based payment - - - 4 - 4
Comprehensive loss for the period - - - - (1,379) (1,379)
Balance- June 30, 2024 - 13,543 89 1,257 (17,203) (2,314)
(Audited)
Balance- January 1, 2024 - 13,543 89 1,253 (15,824) (939)
Share-based payment - - - 5 - 5
Comprehensive loss for the year - - - - (1,748) (1,748)
Balance- December 31, 2024 - 13,543 89 1,258 (17,572) (2,682)
* An amount less than one thousand.
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
T42 IOT TRACKING SOLUTIONS PLC
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. Dollars in thousands
Six Months Ended Year Ended December 31
June 30
2025 2024 2024
CASH FLOWS FOR OPERATING ACTIVITIES: Unaudited Unaudited Audited
Comprehensive loss (891) (1,379) (1,748)
Adjustments for:
Depreciation and amortization 232 243 523
Financial expense, changes in fair value of financial liabilities 418 1,145 700
and exchange rate differences, net
Share-based payment expense - 4 5
Gain from modification of debt terms - (190)
Intangible assets impairment - - 122
Changes in assets and liabilities:
Decrease in inventories 249 166 322
Decrease (Increase) in trade receivables, net 155 (101) 17
Increase in other receivables (149) (58) (35)
Increase (Decrease) in trade payables (308) 38 166
Increase in other account payables 179 242 720
Net cash provided by (used in) operating activities (115) 300 602
CASH FLOWS FOR INVESTING ACTIVITIES:
Purchases of property and equipment (1) (12) (10)
Increase in deposits - (3) -
Investment in intangible assets - (73) (142)
Net cash used in investing activities (1) (88) (152)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in short-term bank credit, net (3) (101) (77)
Repayment of loans (60) (101) (240)
Proceeds from related parties, net 27 26 19
Payments of leasehold liability (107) (87) (191)
Consideration of the issue of shares, net 319 - -
Net cash provided by (used in) financing activities 176 (263) (489)
Increase (Decrease) in cash and cash equivalents 60 (51) (39)
Cash and cash equivalents at the beginning of the period 147 186 186
Cash and cash equivalents at the end of the period 207 135 147
Additional Information
Interest paid during the period 148 113 338
The accompanying notes are an integral part of the interim condensed
consolidated financial statements.
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 1 - GENERAL INFORMATION
a. The Reporting Entity
t42 IoT Tracking Solutions PLC ("the Company") was incorporated in Jersey on
November 28, 2012. The Company and its subsidiaries ("the Group") is a global
supplier in the field of advanced, automated real-time systems, specializing
in the remote tracking and management of vehicles, containers, and assets.
The Company fully owns t42 Ltd., an Israeli company, and Starcom Systems
Limited, a company incorporated in Jersey.
The Company's shares are admitted for trading on the AIM market of the London
Stock Exchange.
The address of the official Company office is in Israel at t42 IoT Tracking
Solutions offices, which are located at 96 Dereh Ramatayim Street, Hod
Hasharon, Israel.
The address of the Company's registered office is at Starcom Systems Limited
offices, which is: Forum 4, Grenville Street, St. Helier, Jersey, Channel
Islands, JE4 8TQ.
b. Company's financial position:
As of June 30, 2025, the Company has a deficit in capital and working capital
amounting to approximately $3.25 million and $4.5 million, respectively. In
addition, during the 6-month period ended June 30, 2025, the Company incurred
an operating loss and negative cash flow from operating activities in the
amount of $0.2 million and $0.12 million, respectively.
As described in Note 9 to the financial statements, in July 2025, after the
date of the statement of financial position, the Company reached agreements
with lenders regarding the extension of the repayment date of the convertible
loans, the balance of which as of June 30, 2025 amounts to approximately $2.8
million, including accrued interest.
The Company's management has prepared cash flow forecasts, which take into
account the Company's estimates of sales growth, based on existing
engagements, and the Company's operating expense structure.
Based on these forecasts, the company's management estimates that it will be
able to meet all of its existing and future obligations in the foreseeable
future and that it will be able to continue its operations in its current
format.
c. Exchange rates:
As of June 30 As of December 31
2025 2024 2024
Exchange rate of NIS in U.S. $ 0.297 0.266 0.274
Exchange rate of GBP in U.S. $ 1.371 1.264 1.254
Year Ended December 31
Six Months Ended June 30
2025 2024 2024
Change in Exchange Rate of U.S. $ 8.39% (3.62%) (0.72%)
Change in Exchange Rate of GBP 9.33% (0.78%) (1.57%)
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 2 - BASIS OF PREPARATION AND CHANGE IN THE GROUP'S ACCOUNTING POLICIES
a. Basis of preparation
The interim consolidated financial statements have been prepared in accordance
with generally accepted accounting principles for the preparation of financial
statements for interim periods, as prescribed in International Accounting
Standard No. 34 ("Interim Financial Reporting").
The interim consolidated financial information should be read in conjunction
with the annual financial statements as of December 31, 2024 and for the year
ended on that date and with the notes thereto.
The significant accounting policies applied in the annual financial statements
of the Company as of December 31, 2024 are applied consistently in these
interim consolidated financial statements.
New standard yet adopted
b.
IFRS 18, Presentation and Disclosure in Financial Statements
This standard replaces IAS 1, Presentation of Financial Statements. The
purpose of the standard is to provide improved structure and content to the
financial statements, particularly the income statement.
The standard includes new disclosure and presentation requirements that were
taken from IAS 1, Presentation of Financial Statements, with small changes.
As part of the new disclosure requirements, companies will be required to
present two subtotals in the income statement: operating profit and profit
before financing and taxes. Furthermore, for most companies, the results in
the income statements will be classified into three categories: operating
profit, profit from investments and profit from financing.
In addition to the changes in the structure of the income statements, the
standard also includes a requirement to provide separate disclosure in the
financial statements regarding the use of management-defined performance
measures (non-GAAP measures).
Furthermore, the standard adds specific guidance for aggregation and
disaggregation of items in the financial statements and in the notes. The
standard will encourage companies to avoid classifying items as 'other' (for
example, other expenses), and using this classification will lead to
additional disclosure requirements. The standard is effective from annual
reporting periods beginning on or after 1 January 2027 with earlier
application being permitted. The Group is examining the effects of the
standard on its financial statements with no plans for early adoption.
Use of estimates and judgments
c.
The preparation of financial statements in conformity with IFRS requires
management of the Company to make judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these
estimates.
The judgment of management, when implementing the Group accounting policies
and the basic assumptions utilized in the estimates that are bound up in
uncertainties are consistent with those that were utilized to prepare the
annual financial statements.
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 3 - SHARE CAPITAL
a. Composition : Ordinary shares of no-par value, issued and outstanding:
June 30 December 31
June 30
2025 2024 2024
Unaudited Unaudited Audited
65,626,357 55,106,807 55,126,357
b. A Company share grants to its holder voting rights, rights to receive
dividends and rights to net assets upon dissolution.
c. Weighted average number of shares used for calculation of basic and diluted
loss per share:
June 30 December 31
June 30
2025 2024 2024
Unaudited Unaudited Audited
62,826,357 55,106,807 55,117,182
b.
A Company share grants to its holder voting rights, rights to receive
dividends and rights to net assets upon dissolution.
c.
Weighted average number of shares used for calculation of basic and diluted
loss per share:
June 30
June 30
December 31
2025
2024
2024
Unaudited
Unaudited
Audited
62,826,357
55,106,807
55,117,182
The following table lists the number of share options and warrants and the
exercise prices of such during the current and prior reported period :
Six months ended Year Ended
June 30, 2025 December 31, 2024
Unaudited Audited
Number of options and warrants Weighted average Number of options Weighted average
exercise price exercise price
£ £
Share options & warrants outstanding beginning of period 7,584,014 0.156 10,876,650 0.166
Options & Warrants exercised during the period - - (209,302) -
Options & Warrants issued during the period (*) 10,500,000 0.05
Options & Warrants expired during the period (38,708) 0.125 (3,083,334) 0.18
Share options & warrants outstanding at end of period 18,045,306 0.098 7,584,014 0.156
Share options & warrants exercisable at end of period (**) 18,045,306 0.098 7,584,014 0.156
(*) In February 17, 2025 the Company completed a capital raising in a total
(gross) amount of £262,500, in which the Company issued to investors
10,500,000 shares of the Company and 10,500,000 warrants. The warrants are
convertible into shares of the Company in a ratio of 1:1 in exchange for
£0.05 per warrant for a period of 3 years from the date of their issuance.
The proceeds of the offering, net of issuance expenses, amounted to
approximately £253,375.
(**) In addition, the Group also has two convertible loans, which can be
converted as of June 30, 2025, into a maximum total amount of 117.1 million
shares.
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 4 - FAIR VALUE OF THE FINANCIAL INSTRUMENTS
The table hereunder presents a reconciliation from the opening balance to the
closing balance of financial instruments carried at fair value level 3 of the
fair value hierarchy:
Anti-dilution and Conversion components
Warrants Total
Balance as of January 1, 2025 204 34 238
Additions during the year - - -
Finance income, net (204) (25) (229)
Conversions - - -
Balance as of June 30, 2025 - 9 9
Anti-dilution and Conversion components
Warrants Total
Balance as of January 1, 2024 31 12 43
Additions during the year 350 - 350
Finance expenses, net 171 22 193
Settlements (348) - (348)
Conversions - - -
Balance as of December 31, 2024 204 34 238
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 5 - CONTROLLING SHAREHOLDERS AND RELATED PARTIES
a. Related parties that own the controlling shares in the Group are:
Mr. Avraham Hartmann who serves as a director and CEO (8.78%) and Mr. Uri
Hartmann, a son of Mr. Avi Hartmann, who serves as CTO (4.68%) .
b. Current debit (credit) balances:
June 30 December 31
2025 2024 2024
Unaudited Unaudited Audited
Debit (Credit) balance:
Avi Hartmann (9) 65 36
Uri Hartmann (686) (550) (585)
Total Credit balance (695) (485) (549)
Loans:
Uri Hartmann (243) (249) (221)
Total Loans (243) (249) (221)
Total balances, net (938) (734) (770)
c. Transactions: Six Months Ended Year Ended
June 30 December 31
2025 2024 2024
Unaudited Unaudited Audited
Total salaries and related expenses for Mr. Avi Hartman and Mr. Uri Hartman,
including car maintenance
221 215 426
Salaries and related expenses for Mr. Igor Vatenmacher, including car
maintenance (*)
59 82 171
Total share-based payment expenses
- 2 4
Non-executive directors' fees 49 48 108
Interest to related parties 4 5 10
(*) Since May 2025 Mr. Igor Vatenmacher has been a non-executive director.
Until this date he served as a CFO.
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 6 - COST OF REVENUES
Six Months Ended Year Ended December 31
June 30
2025 2024 2024
Unaudited Unaudited Audited
Purchases and manufacturing 891 653 1,687
Communication Suppliers and Others 119 211 343
Amortization 91 94 213
Decrease in Inventory (*) 100 166 322
1,201 1,124 2,565
(*) In 2025, the
Company wrote off inventories in the amount of $149k.
The expense
was recognized in other expenses.
NOTE 7 - NET FINANCE INCOME (EXPENSES)
Six Months Ended Year Ended December 31
June 30
2025 2024 2024
Unaudited Unaudited Audited
Exchange rate differences, net (466) 368 72
Gain from modification of debt terms
- - 190
Changes in fair value of financial liabilities
229 (980) (193)
Bank charges (26) (16) (37)
Loans interest (367) (396) (768)
Interest to suppliers (36) (70) (71)
Interest to related parties (4) (5) (10)
Others (24) - (47)
Net finance expenses (694) (1,099) (864)
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 8 - SEGMENTATION REPORTING
The Group has two reportable segments: Hardware and SaaS, which form the
Group's strategic business units.
The accounting policy regarding segments reporting is as described in Note 25
to the annual financial statement
Hardware SaaS Total
Six months ended 30.06.2025: (Unaudited)
Segment revenues 1,321 972 2,293
Cost of revenues (1,071) (130) (1,201)
Gross profit 250 842 1,092
six months ended 30.06.2024: (Unaudited)
Segment revenues 1,031 1,008 2,039
Cost of revenues (912) (212) (1,124)
Gross profit 119 796 915
Year Ended 31.12.2024: (Audited)
Segment revenues 2,036 2,122 4,158
Cost of revenues (2,182) (383) (2,565)
Gross profit (Loss) (146) 1,739 1,593
T42 IOT TRACKING SOLUTIONS PLC
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. Dollars in thousands
NOTE 9 - SIGNIFICANT EVENTS AFTER THE REPORTED PERIOD
1) Further to notes 11 (a) to the annual financial statements, the
Company, on 28 July 2025, signed a collaboration agreement with the lender,
among alia, to extend the convertible loan period until December 10, 2027.
There was no change in the other terms of the loan. The loan balance as of
June 30, 2025 is $1.3 million.
2) Further to notes 11 (b) to the annual financial statements, the
Company, on end of July 2025, signed an additional addendum, with the lenders
as follows:
(a) As of June 30, 2025, the total amount of the principle together with the
capitalized interest is $1,476,896 which will be repaid in 30 unequal monthly
payments starting in July 2025 amounting $20,000-$75,000 per month.
The total payments the company has committed to repay during the coming year
and the year after is approximately $0.4$ million and $0.7 million,
respectively.
(b) The convertible loan period will be extended till December 10, 2027.
(c) In the event that the Company fails to meet two consecutive repayments,
then without derogating from any other remedy, lenders shall be entitled to
60% of the Helios Saas sales revenue until repayments are resumed.
(d) To secure the lender's rights and in addition the existed securities,
the company shall grant the lenders a second ranking fixed deposit over all
its rights and assets - whether existing or future - in connection with its
Helios division. The fixed charge will be subordinated only to a charge
registered in favor of an Israeli bank, as described in notes 10 and 13(1),(2)
to the annual financial statements. Registration of the charge with the
relevant government authorities is one of the prerequisites for the agreements
to enter into force.
(e) The company shall be intitled to enter into negotiations for sale of the
Helios division provided that the proceeds from sale are sufficient to repay
all the outstanding principal and interest.
(f) All other provisions of the convertible loan agreement and its addendum
from February 2024 remain unchanged and in full force and effect.
3) On August 12, 2025, a monetary claim was filed in the Court against the
T42 Israel by a former employee, alleging bodily injury in October 2018. The
case has been referred to the t42 Israel's employers' liability insurer, which
has assumed conduct of the defense while reviewing coverage and liability. The
former employee estimates the damages she suffered from at 400 K Israeli
shekels in addition to general damages and demands, among alia, adequate
compensation for these damages. At this stage, and pending completion of the
insurer's review, the company legal advisors are unable to assess the
likelihood of the claim's success.
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. END IR GUGDIXUDDGUCRecent news on t42 IoT Tracking Solutions
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