3D printed circuit boards

Nano Dimension’s (‌$Nano Dimension(NNDM)$‌) vision: To transform Additive Manufacturing electronics & adjacent Additive Manufacturing sectors into an environmentally friendly & economically efficient additive manufacturing Industry 4.0 – enabling a one production-step-conversion of digital designs into functioning mechanical & electronic devices, On Demand, anytime, anywhere.

NNDM has three main product lines:

1 - DragonFly IV precision system: can print sensors, conductive geometries, RF devices, antennas, professional multilayer PCBs, and molded connected devices for rapid prototyping and custom additive manufacturing

2- proprietary ink products: Conductive Ink, Dielectric Ink (will be part of recurring revenue)

3 - software: the ‘FLIGHT’, which is used to manage the design file and printing process.

There are some advantages of DragonFly IV precision system, shorten the time for iterative development, IP safety, fast time-to-market, device performance gains and limiting environmental pollution and chemical waste. Yet currently it is good for in-house prototypes and low volume production. From 2019-2021, NNDM sold 36 systems worldwide. However, NNDM is working to make the system capable of mass production.

The vision is great. How about its financial status?

Net loss for the year ended December 31, 2021, was $200,777,000, or $0.81 per share,

compared to $48,494,000 or $1.13 per share, in the year ended December 31, 2020.

This included impairment losses of $140,290,000. as explained in NNDM 2021 annual report: “During 2021, there was a decline in our share price, such that as of December 31, 2021, the fair value of the Company, which is based on the share price, is lower than its book value of equity.”

Total revenues for the year ended December 31, 2021, were $10,493,000, compared to $3,399,000 in the year ended December 31, 2020. The increase is attributed mostly to the consolidation of Essemtec, which NNDM purchased in November 2021, and contributed to the revenues. Essemtec contributed revenue of $6,283 thousand and profit of $969 thousand to the Group’s results.

Weighted average number of ordinary shares used to calculate diluted loss per share has increased from 42.947mil to 248.132mil. Therefore, we saw the net loss per share in 2021 was lesser than that in 2020. Yet the price/sale ratio (P/S) will tell the reality, NNDM is overvalued. At current share price of $2.9, the P/S for 2021 is 68x, for 2020 is 36x. For 2019, at share price of $7.5, the P/S was only 3.7x!

NNDM has cash and cash equivalents, together with short and long-term bank deposits, totaled

$1,355,595,000 as of December 31, 2021. This is enough to cover 6 years of losses made in 2021.

The management commented Covid-19 has impacted the business negatively. Nowadays, most countries have relieved from Covid-19. If there is still no improvement in the business on coming quarter result, I believe, there is much room to go downward.