Adcore : Interim Financial Report

ADCORE INC.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2022

UNAUDITED

ADCORE INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS AS OF JUNE 30, 2022

TABLE OF CONTENTS

	Page
Unaudited Interim Condensed Consolidated Statements of Financial Position	2
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income	3
Unaudited Interim Condensed Consolidated Statements of Changes in shareholders' equity	4-5
Unaudited Interim Condensed Consolidated Statements of Cash Flows	6-7
Notes to the Unaudited Interim Condensed Consolidated Financial Statements	8-14

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ADCORE INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS

OF FINANCIAL POSITION

				June 30,		December 31,
	Note	2022		2021
CURRENT ASSETS:		US $ in		thousands
		6,987		11,057
Cash and cash equivalents
Trade accounts receivable, net			3,022		2,911
Other accounts receivable				484			619
Total current assets			10,493		14,587
NON-CURRENT ASSETS:
Long term deposit			26		29
Property, plant and equipment, net			581		691
Intangible assets, net			2,303		1,977
Total non-current assets				2,910			2,697
TOTAL ASSETS			13,403		17,284
CURRENT LIABILITIES:
Trade accounts payable			1,491		3,499
Other accounts payable			858		673
Lease liability			213		221
Total current liabilities				2,562			4,393
NON-CURRENT LIABILITIES:
Accrued severance pay, net			16		18
Deferred tax liability, net			248		263
Derivative liability - warrants			1		202
Lease liability			103		213
Total non-current liabilities				368			696
SHAREHOLDERS' EQUITY:	3
Share capital			*		*
Additional paid in capital			10,605		10,355
Treasury shares			(350)		-
Actuarial reserve			(80)		(80)
Retained earnings			298		1,920
Total Equity				10,473			12,195
TOTAL LIABILITIES AND EQUITY				13,403			17,284

* Represents an amount lower than $ 1 thousand.

"Omri Brill"		"Roy Nevo"		August 10, 2022
Omri Brill		Roy Nevo		Date of approval of the
Director		Director		financial statements

2

The accompanying notes are an integral part of the condensed interim financial statements.

ADCORE INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME

		Three months		Three months		Six months			Six months
		ended June		ended June		ended June			ended June
	Note	30, 2022			30, 2021			30, 2022			30, 2021 (*)
						Unaudited	$ in thousands
Revenues	4	4,057		5,694		7,763		12,501
Cost of revenues			2,417			3,074			4,522			8,305

Gross profit

Research and development expenses

Selling ,general and administrative expenses

Operating profit (Loss)

Finance expenses

Finance income

Profit (Loss) before taxes on income

Tax expenses

Total comprehensive Profit (Loss) for the period

Basic Profit (Loss) per share attributable to shareholders Diluted Profit (Loss) per share attributable to shareholders

Weighted average number of Common Shares

Weighted average number of dilutive Common Shares

(*) Restated, See note 7.

1,640	2,620	3,241		4,196
284	278	592		633
1,816		2,139		3,461			3,332
(460)	203	(812)		231
641	467	1,124		669
(156)		-		(329)		(36)
(945)	(264)	(1,607)		(402)
15		294		15			416
(960)			(558)		(1,622)			(818)
(0.015)		(0.009)	(0.025)		(0.014)
(0.015)		(0.009)	(0.025)		(0.014)
63,696,703	58,907,725	63,667,152	58,907,725
63,696,703	58,907,725	63,667,152	58,907,725

3

The accompanying notes are an integral part of the condensed interim financial statements.

ADCORE INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN

SHAREHOLDERS' EQUITY

For the six months period ended June 30, 2022:

							Additional												Total
		Number of		Share		paid in	Treasury		Actuarial	Retained	Shareholders'
		Shares		capital		capital			shares			reserve	earnings		equity
									$ In thousands
Balance at January 1, 2022	63,481,445		**		10,355			-		(80)		1,920		12,195
Changes during the period:
Share-based compensation	-		-		250			-		-		-		250
Exercise of options	-		-		-			-		-		-		-
Exercise of warrants	-		-		-			-		-		-		-
Exercise of RSUs	308,226		-		-			-		-		-		-
Issuance of shares, net	-		-		-			-		-		-		-
Repurchase of shares	(2,238,900)									(350)									(350)
Comprehensive income for
the period	-		-		-	-		-		(1,622)		(1,622)
Balance at June 30, 2022	61,550,771			**			10,605				(350)			(80)			298			10,473

For the six months period ended June 30, 2021:

										Additional									Total
		Number of			Share			paid in		Actuarial	Retained		Shareholders'
		Shares			capital			capital			reserve		earnings		equity
										$ In thousands
Balance at January 1, 2021	56,329,336		**		4,771		(83)		2,197		6,885
Changes during the period:
Share-based compensation	-		-		435		-		-		435
Exercise of options	677,500		-		262		-		-		262
Exercise of warrants	2,957,609		-		(*) 1,914		-		-		1,914
129,125
Exercise of RSUs		-		-		-		-		-
Issuance of shares, net	3,100,000		-		2,574		-		-		2,574
Comprehensive income for the period	-		-		-		-		(*)(818)		(818)
Balance at June 30, 2021	63,193,570		**		9,956		(83)		1,379		11,252
(*) Restated, See note 7.

(**) Represents an amount lower than $ 1 thousand.

4

The accompanying notes are an integral part of the condensed interim financial statements.