voxeljet AG (NASDAQ: VJET) (the ‘Company’, ‘voxeljet’, or ‘we’),
a provider of high-speed, large-format 3D printers and on-demand
parts services to industrial and commercial customers, today
announced consolidated financial results for the third quarter
ended September 30, 2023.
Highlights - Third Quarter 2023 compared to the Third Quarter
2022
- Total revenues for the third quarter increased 7.5% to kEUR
6,167 from kEUR 5,735
- Gross profit margin decreased to 26.8% from 28.7%
- Systems revenues increased 25.2% to kEUR 3,386 from kEUR
2,704
- Services revenues decreased 8.2% to kEUR 2,781 from kEUR
3,031
- Refine in part our full year 2023 guidance, to reflect the
upper end of our prior revenue guidance and lowered
expenditures
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented:
“Demand for our products remains at a high level in all regions.
Supply chain issues are becoming less critical; accordingly, we are
targeting the upper end of our full-year sales guidance for 2023.
Everyone at voxeljet is fully focused on making the fourth quarter
of this year our best quarterly result ever. Another key priority
in this market environment is to preserve cash: we have launched an
initiative to reduce costs without jeopardizing our growth targets.
This took effect in the third quarter of this year and includes
lower OPEX, CapEx and personnel costs. Our goal is to achieve
break-even adjusted EBITDA on a full-year basis by 2025 at the
latest.”
Three Months Ended September 30, 2023 Results
Revenues for the third quarter of 2023 increased by 7.5% to kEUR
6,167 compared to kEUR 5,735 in the third quarter of 2022.
Revenues from our Systems segment, which focuses on the
development, production and sale of 3D printers, increased 25.2% to
kEUR 3,386 in the third quarter of 2023 from kEUR 2,704 in last
year’s third quarter. The Company sold three new 3D printers in the
third quarter of 2023 compared to one new and one used and
refurbished 3D printer in last year’s third quarter resulting in
significantly higher revenue from the sale of 3D printers. Systems
revenues also include all Systems-related revenues from
consumables, spare parts and maintenance. Those Systems-related
revenues slightly decreased in the third quarter year-over-year.
Systems revenues represented 54.9% of total revenues in the third
quarter of 2023 compared to 47.1% in last year’s third quarter.
Revenues from our Services segment, which focuses on the
printing of on-demand parts for our customers, decreased 8.2% to
kEUR 2,781 in the third quarter of 2023 from kEUR 3,031 in the
comparative period of 2022. This was due to lower revenue
contributions from our subsidiary voxeljet America Inc. (‘voxeljet
America’), our German service center as well as our subsidiary
voxeljet China Co. Ltd. (‘voxeljet China’). The decrease reflected
a lower market demand in all of our sales regions in the third
quarter of 2023, compared to last year’s same period.
Cost of sales were kEUR 4,515 for the third quarter of 2023
compared to kEUR 4,089 for the third quarter of 2022.
Gross profit and gross profit margin were kEUR 1,652 and 26.8%,
respectively, in the third quarter of 2023 compared to kEUR 1,646
and 28.7%, respectively, in the third quarter of 2022.
Gross profit for our Systems segment increased to kEUR 829 in
the third quarter of 2023 from kEUR 651 in the third quarter of
2022. Additionally, gross profit margin for this segment increased
to 24.5% in the third quarter of 2023 compared to 24.1% in the
third quarter of 2022. Gross profit from the sale of 3D printers
increased in line with the increase in revenue, while gross profit
margin decreased due to a less favorable product mix.
Systems-related revenues gross profit and gross profit margin
improved significantly mainly due to lower quarter over quarter
expenses from the change in valuation allowance for inventories
following the Company’s inventory reserve policy amounting to kEUR
77 negative for the third quarter of 2023 compared to kEUR 263
negative in last year’s same period.
Gross profit for our Services segment decreased to kEUR 823 in
the third quarter of 2023 compared to kEUR 995 in the third quarter
of 2022. Additionally, gross profit margin for this segment
decreased to 29.6% in the third quarter of 2023 from 32.8% in the
third quarter of 2022. The main driver for the decline in gross
profit, and gross profit margin were lower contributions from our
German operation and from our Chinese service center. This was a
result of lower utilization of both service centers in line with
the substantial decreases in revenues. Gross profit contributions
from our American service center decreased related to the decline
in revenues, while gross profit margin was almost flat.
Selling expenses were kEUR 1,790 for the third quarter of 2023
compared to kEUR 2,015 in the third quarter of 2022. This decrease
was mainly related to lower distribution expenses. Distribution
expenses such as shipping and packaging are a main driver of
selling expenses, and not only depend on the amount of revenue, but
also on quantities and types of products sold and the destinations
of where those goods are being delivered. Therefore, distribution
expenses can vary noticeably from quarter to quarter.
Administrative expenses were kEUR 1,782 for the third quarter of
2023 compared to kEUR 1,566 in the third quarter of 2022. This
increase was mainly related to higher advisor fees related to
communication with financial institutions in connection with
funding activities.
Research and development (‘R&D’) expenses decreased to kEUR
1,534 in the third quarter of 2023 from kEUR 1,673 in the third
quarter of 2022. The decrease of kEUR 139 was mainly due to lower
usage of external services, lower material consumption as well as
lower personnel expenses. R&D expenses can vary from quarter to
quarter and are usually driven by variations in project types and
phases.
Other operating expenses in the third quarter of 2023 were kEUR
181 compared to kEUR 159 in the prior year period. This was mainly
due to higher losses from foreign currency transactions of kEUR 171
for the third quarter of 2023 compared to kEUR 100 for the third
quarter of 2022.
Other operating income was kEUR 837 for the third quarter of
2023 compared to kEUR 1,227 in the third quarter of 2022. The
decrease was mainly due to lower gains from foreign currency
transactions, which decreased to kEUR 349 for the third quarter of
2023 from kEUR 763 in last year’s third quarter. This was partially
offset by higher cost reimbursements for R&D expenses amounting
to kEUR 259 for the third quarter of 2023, compared to kEUR 104 for
the third quarter of 2022. Furthermore, other operating income
included government grants awarded for R&D projects of kEUR 179
(third quarter 2022: kEUR 158).
The changes in foreign currency gains were primarily driven by
the valuation of the intercompany loans granted by the parent
company to our U.S. subsidiary. The changes in foreign currency
losses were mainly driven by the valuation of the promissory note
issued to Anzu in January 2023.
Operating loss was kEUR 2,798 in the third quarter of 2023
compared to an operating loss of kEUR 2,540 in the comparative
period in 2022. This was mainly due to a lower positive net impact
from other operating expenses and other operating income amounting
to kEUR 656 for the third quarter of 2023 compared to a positive
net impact amounting to kEUR 1,068 for the third quarter of 2022,
in combination with higher administrative expenses in the third
quarter of 2023 compared to the third quarter of 2022. This was
partially offset by lower selling expenses as well as lower
research and development expenses, while gross profit was almost
flat.
Financial result was negative kEUR 381 in the third quarter of
2023, compared to a financial result of negative kEUR 6,167 in the
comparative period in 2022. The primary components of the financial
result are described below.
In October 2022, the loan granted by the European Investment
Bank (the ‘EIB Loan') including all interest was early settled and
consequently the loan and the related derivative financial
instruments were derecognized, therefore there is no finance
income/expense from EIB Loan/derivatives for the third quarter of
2023. The derecognition in October 2022 resulted in the write-down
of the bifurcated embedded derivative financial instruments
relating to the performance participation interest for tranches A
and B1 of the EIB Loan amounting to kEUR 4,664 for the third
quarter of 2022. Those derivative financial instruments were
revalued on each balance sheet date, with changes in the fair value
between reporting periods recorded within the financial result of
the consolidated statements of comprehensive loss. An increase in
our share price resulted in a finance expense, while a decrease led
to a finance income, keeping other parameters constant.
Additionally, in the course of the early settlement of the EIB
Loan, we recognized a finance expense of kEUR 907 in the third
quarter of 2022 related to the revision of estimated future cash
flows from tranches A and B1 of the EIB Loan that led to an
adjustment of the carrying amounts of the two tranches.
This decrease in the above-mentioned interest and fair value
expenses was partially offset by increased interest expense on
lease liabilities amounting to kEUR 286 for the third quarter of
2023, compared to kEUR 33 for the comparative period in 2022
related to the sale and leaseback transaction regarding voxeljet
AG’s properties located in Friedberg, Bavaria, Germany. The
transaction closed on October 31, 2022 and the lease term commenced
on November 1, 2022.
Financial result also included finance income from revaluation
of derivative financial instruments related to the Anzu Note (as
described in Note 1) amounting to a finance income of kEUR 7 for
the third quarter of 2023, compared to kEUR 0 for the comparative
period. For further information, see Note 7.
Net loss for the third quarter of 2023 was kEUR 3,179 or EUR
0.34 per share, as compared to net loss of kEUR 8,702, or EUR 1.23
per share, in the third quarter of 2022.
Nine Months Ended September 30, 2023 Results
Revenues for the nine months ended September 30, 2023 increased
by 11.4% to kEUR 19,019 from kEUR 17,066 for the prior year
period.
Systems revenues were kEUR 10,570 for the first nine months of
2023 compared to kEUR 7,732 for the same period last year. The
Company sold seven new 3D printers during the first nine months of
2023, compared to four new and two used and refurbished 3D printers
during the prior year period. Systems revenues also include all
Systems-related revenues from consumables, spare parts and
maintenance. The increase in revenues from our Systems segment was
mainly related to a significant increase in revenues from the sale
of 3D printers due to a higher number of units sold in combination
with a more favorable product mix which included more larger scale
platforms. In addition, Systems-related revenues increased due to
higher market demand in our after-sales activities in connection
with an increased installed base of our 3D printers. Systems
revenues represented 55.6% of total revenue for the nine months
ended September 30, 2023 compared to 45.3% for the same period in
the prior year.
Services revenues were kEUR 8,449 for the nine months ended
September 30, 2023 compared to kEUR 9,334 for the same period last
year. This decrease of 9.5% was mainly due to lower revenue
contributions from our German service center and our subsidiary
voxeljet China. This was negligibly offset by slightly higher
revenue contributions from our American service center, and we see
continuing strong market demand in our Services segment from the
Americas region. After a particularly strong fiscal year 2022 in
the EMEA region, in 2023 we have witnessed a relative decrease in
market demand in this region, but a considerable level of demand,
in absolute terms, remained for the nine months ended September 30,
2023.
Cost of sales for the nine months ended September 30, 2023 were
kEUR 13,597, an increase of kEUR 1,859 compared to cost of sales of
kEUR 11,738 for the same period in 2022.
Gross profit and gross profit margin for the nine months ended
September 30, 2023 were kEUR 5,422 and 28.5%, respectively,
compared to kEUR 5,328 and 31.2%, respectively, for the prior year
period.
Gross profit for our Systems segment increased to kEUR 2,804 for
the nine months ended September 30, 2023 from kEUR 1,765 for the
same period in 2022. This improvement was mainly driven by an
increase in revenues. Gross profit margin for our Systems segment
also increased, amounting to 26.5% for the nine months ended
September 30, 2023 compared to 22.8% for the prior year period,
mainly due to a more favorable product mix, especially regarding
Systems-related revenues but also related to the sale of 3D
printers. The sale of larger scale platforms usually provides
higher gross profit (margins) compared to smaller platforms. In
addition, we recognized a change in valuation allowance for
inventories following the Company’s inventory reserve policy
amounting to kEUR 233 negative for the nine months ended September
30, 2023, compared to kEUR 597 negative for last year’s same
period.
Gross profit for our Services segment decreased to kEUR 2,618
for the nine months ended September 30, 2023 from kEUR 3,563 in the
same period in 2022. Also gross profit margin for this segment
decreased to 31.0% for the first nine months of 2023 from 38.2% in
the same period in 2022. Both decreases were mainly related to
lower gross profit as well as gross profit margin contributions
from our German operation and from our Chinese subsidiary,
reflecting the lower utilization of both service centers in line
with the declined revenues. This was partially offset by our
subsidiary voxeljet America, where gross profit as well as gross
profit margin improved as a result of a higher utilization of the
American service center, reflecting the increase in revenues.
Selling expenses were kEUR 5,822 for the nine months ended
September 30, 2023 compared to kEUR 5,540 for the same period in
2022. The year-over-year increase was mainly due to higher
personnel expenses as well as higher expenses for trade fairs and
exhibitions including travel expenses. This was partially offset by
lower distribution expenses in spite of increased revenues.
Shipping and packaging expenses as a main driver of selling
expenses vary noticeably from quarter to quarter depending on
quantities and types of products sold and the destinations where
those goods are being delivered.
Administrative expenses increased by kEUR 176 to kEUR 4,924 for
the first nine months of 2023 from kEUR 4,748 for the prior year
period. This was mainly related to higher personnel expenses.
R&D expenses slightly decreased to kEUR 4,671 for the nine
months ended September 30, 2023 from kEUR 4,767 for the same period
in 2022, a decrease of kEUR 96. This was mainly due to lower
expenses for usage of external services as well as lower personnel
and material expenses. This was partially offset by higher
maintenance expenses as well as higher depreciation. R&D
expenses can vary from quarter to quarter and are usually driven by
variations in project types and phases.
Other operating expenses for the nine months ended September 30,
2023 were kEUR 795 compared to kEUR 573 for the prior year period.
This was mainly due to higher losses from foreign currency
transactions amounting to kEUR 722 for the nine months ended
September 30, 2023 compared to kEUR 357 for the prior year
period.
Other operating income was kEUR 2,214 for the nine months ended
September 30, 2023 compared to kEUR 4,685 for the prior year
period. This decrease was mainly due to the reclassification of the
foreign currency translation reserve in the first quarter of 2022,
which was previously recognized in other comprehensive income on
consolidation of the accounts of our UK subsidiary voxeljet UK Ltd.
(‘voxeljet UK’), to profit and loss account on deconsolidation
amounting to kEUR 1,475, related to the finalization of the wind-up
of voxeljet UK on February 17, 2022. In addition, we recorded lower
gains from foreign exchange transactions amounting to kEUR 619 for
the nine months ended September 30, 2023 compared to kEUR 2,171 for
the comparative period in 2022. This was partially offset by higher
cost reimbursements for R&D expenses amounting to kEUR 830 for
the nine months ended September 30, 2023 compared to kEUR 299 for
last year’s same period. Furthermore, other operating income
included government grants awarded for R&D projects of kEUR 527
(nine months ended September 30, 2022: kEUR 293).
The changes in foreign currency gains and losses were primarily
driven by the valuation of the intercompany loans granted by the
parent company to our U.S. subsidiary.
Operating loss was kEUR 8,576 in the nine months ended September
30, 2023 compared to an operating loss of kEUR 5,615 in the
comparative period in 2022. This was mainly due to a lower positive
net impact from other operating expenses and other operating income
amounting to kEUR 1,419 for the nine months ended September 30,
2023 compared to a positive net impact amounting to kEUR 4,112 for
last year’s same period in combination with higher selling and
administrative expenses. This was partially offset by a slight
improvement of gross profit and slightly lower research and
development expenses.
Financial result was negative kEUR 1,479 for the nine months
ended September 30, 2023, compared to a financial result of
negative kEUR 5,723 for the comparative period in 2022. The primary
components of the financial result are described below.
In October 2022, the EIB Loan including all interest was early
settled and consequently the loan as well as the related derivative
financial instruments were derecognized, therefore there is no
finance income/expense from EIB Loan/derivatives for the nine
months ended September 30, 2023. The derecognition in October 2022
resulted in the write-down of the bifurcated embedded derivative
financial instruments relating to the performance participation
interest for tranche A of the EIB Loan, which resulted in finance
expense amounting to kEUR 2,827 for the nine months ended September
30, 2022. This was partially offset by the write-down of the
bifurcated embedded derivative financial liability for the
performance participation interest for tranche B1 of the EIB Loan,
which resulted in finance income of kEUR 516 for the nine months
ended September 30, 2022.
Additionally, in the course of the early settlement of the EIB
Loan, we recognized a finance expense of kEUR 907 in the third
quarter of 2022 related to the revision of estimated future cash
flows from tranches A and B1 of the EIB loan that led to an
adjustment of the carrying amounts of the two tranches.
Finance expense related to long term debt amounted to kEUR 395
for the nine months ended September 2023, compared to kEUR 2,625
for the nine months ended September 30, 2022, including the kEUR
907 adjustment of the carrying amounts of tranches A and B1 of the
EIB Loan as described above.
The decrease in the above-mentioned interest and fair value
expenses was partially offset by increased interest expense on
lease liabilities amounting to kEUR 866 for the nine months ended
September 30, 2023, compared to kEUR 103 for the comparative period
in 2022, mainly related to the sale and leaseback transaction
regarding voxeljet AG’s properties located in Friedberg, Bavaria,
Germany. The transaction closed on October 31, 2022 and the lease
term commenced on November 1, 2022.
In addition, finance expense related to the change in fair value
of bond funds decreased from kEUR 773 for the nine months ended
September 30, 2022 to kEUR 0 for the nine months ended September
30, 2023.
Financial result also included finance expense from revaluation
of derivative financial instruments related to the Anzu Note
amounting to kEUR 325 for the nine months ended September 30, 2023,
compared to kEUR 0 for the comparative period. For further
information, see Note 7.
Net loss for the nine months ended September 30, 2023 was kEUR
10,067, or EUR 1.09 per share, as compared to net loss of kEUR
11,254, or EUR 1.59 per share for the prior year period.
Business Outlook
Our revenue guidance for the fourth quarter of 2023 is expected
to be in the range of kEUR 10,000 to kEUR 13,500.
We refine in part and reaffirm in part our guidance for the full
year ending December 31, 2023:
- Full year revenue is expected to be in the
range of kEUR 29,000 to kEUR 32,500 (range is refined to the upper
end of our earlier guidance)
- Gross profit margin remains expected to be
above 31.5%
- Operating expenses for the full year are
expected as follows: selling and administrative expenses remain
expected to be in the range of kEUR 14,000 to kEUR 16,000 and
R&D expenses are projected to be between approximately kEUR
6,750 and kEUR 7,000 (slightly lowered from our earlier guidance).
Depreciation and amortization expense remains expected to be
between kEUR 3,000 and kEUR 3,250.
- Adjusted EBITDA for the fourth quarter of
2023 remains expected to be slightly negative to neutral. Adjusted
EBITDA is defined as net income (loss), as calculated under IFRS
accounting principles before interest (income) expense, provision
(benefit) for income taxes, depreciation and amortization, and
excluding other operating (income) expense resulting from foreign
exchange gains or losses on the intercompany loans granted to the
subsidiaries.
- Capital expenditures are projected to be in
the range of kEUR 1,500 to kEUR 1,750 (lowered from our earlier
guidance), which primarily includes ongoing investments in our
global subsidiaries.
Our total backlog of 3D printer orders as of September 30, 2023
was kEUR 11,737, which represents fifteen 3D printers. This
compares to a backlog of kEUR 9,975 representing eleven 3D
printers, December 31, 2022. As production and delivery of our
printers are generally characterized by lead times ranging between
three to nine months, the conversion rate of order backlog into
revenue is dependent on the equipping process for the respective 3D
printer, as well as the timing of customers’ requested
deliveries.
As of September 30, 2023, we had cash and cash equivalents of
kEUR 4,968, and additionally held kEUR 2,988 of restricted cash and
kEUR 1,891 of term deposits, which are included in current other
financial assets on our consolidated statements of financial
position.
Webcast and Conference Call Details
The Company will host a conference call and webcast to review
the results for the third quarter of 2023 on Friday, November 17,
2023 at 8:30 a.m. Eastern Time. Participants from voxeljet will
include its Chief Executive Officer, Dr. Ingo Ederer, and its Chief
Financial Officer, Rudolf Franz, who will provide a general
business update and respond to investor questions.
Interested parties may access the live audio broadcast by
dialing 1-877-704-4453 in the United States/Canada, or
1-201-389-0920 for international, Conference Title “voxeljet AG
Third Quarter 2023 Financial Results Conference Call”. Investors
are requested to access the call at least five minutes before the
scheduled start time in order to complete a brief registration. An
audio replay will be available approximately two hours after the
completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay
Conference ID number 13742023. The recording will be available for
replay through November 24, 2023.
A live webcast of the call will also be available on the
investor relations section of the Company’s website. Please go to
the website https://events.q4inc.com/attendee/670347144 at least
fifteen minutes prior to the start of the call to register,
download and install any necessary audio software. A replay will
also be available as a webcast on the investor relations section of
the Company’s website.
Non-IFRS Measure
Management regularly uses both IFRS and non-IFRS results and
expectations internally to assess its overall performance of the
business, making operating decisions, and forecasting and planning
for future periods. Management believes that Adjusted EBITDA is a
useful financial measure to the Company’s investors as it helps
investors better understand and evaluate the projections our
management board provides. The Company’s calculation of Adjusted
EBITDA may not be comparable to similarly titled financial measures
reported by other peer companies. Adjusted EBITDA should not be
considered as a substitute to financial measures prepared in
accordance with IFRS.
The Company uses Adjusted EBITDA as a supplemental financial
measure of its financial performance. Adjusted EBITDA is defined as
net income (loss), as calculated under IFRS accounting principles,
interest (income) expense, provision (benefit) for income taxes,
depreciation and amortization, and excluding other (income) expense
resulting from foreign exchange gains or losses on the intercompany
loans granted to the subsidiaries. Management believes Adjusted
EBITDA to be an important financial measure because it excludes the
effects of fluctuating foreign exchange gains or losses on the
intercompany loans granted to its subsidiaries. We are unable to
reasonably estimate the potential full-year financial impact of
foreign currency translation because of volatility in foreign
exchange rates. Therefore, we are unable to provide a
reconciliation to our forward-looking guidance for non-GAAP
Adjusted EBITDA without unreasonable effort as certain information
necessary to calculate such measure on an IFRS basis is
unavailable, dependent on future events outside of our control and
cannot be predicted without unreasonable efforts by the
Company.
About voxeljet
voxeljet is a leading provider of high-speed, large-format 3D
printers and on-demand parts services to industrial and commercial
customers. The Company’s 3D printers employ a powder binding,
additive manufacturing technology to produce parts using various
material sets, which consist of particulate materials and
proprietary chemical binding agents. The Company provides its 3D
printers and on-demand parts services to industrial and commercial
customers serving the automotive, aerospace, film and
entertainment, art and architecture, engineering and consumer
product end markets. For more information, visit
http://www.voxeljet.de/en/.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements
concerning our business, operations and financial performance. Any
statements that are not of historical facts may be deemed to be
forward-looking statements. You can identify these
forward-looking statements by words such as ‘‘believes,’’
‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘projects,’’
‘‘plans,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘could,’’ ‘‘might,’’ ‘‘will,’’
‘‘should,’’ ‘‘aims,’’ or other similar expressions that convey
uncertainty of future events or outcomes. Forward-looking
statements include statements regarding our intentions, beliefs,
assumptions, projections, outlook, analyses or current expectations
concerning, among other things, our results of operations,
financial condition, business outlook, the industry in which we
operate and the trends that may affect the industry or us. Although
we believe that we have a reasonable basis for each forward-looking
statement contained in this press release, we caution you that
forward-looking statements are not guarantees of future
performance. All of our forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that are
in some cases beyond our control and that may cause our actual
results to differ materially from our expectations, including those
risks identified under the caption “Risk Factors” in the Company’s
Annual Report on Form 20-F and in other reports the Company files
with the U.S. Securities and Exchange Commission, as well as the
risk that our revenues may fall short of the guidance we have
provided in this press release. Except as required by law, the
Company undertakes no obligation to publicly update any
forward-looking statements for any reason after the date of this
press release whether as a result of new information, future events
or otherwise.
voxeljet AG
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
Notes
9/30/2023
12/31/2022
(€ in thousands)
unaudited
Current assets
31,543
35,481
Cash and cash equivalents
7
4,968
12,119
Other financial assets
7
4,889
2,047
Trade receivables, net
7
4,753
6,165
Inventories
4
13,736
11,136
Income tax receivables
46
23
Other assets
3,151
3,991
Non-current assets
17,724
19,639
Other financial assets
7
4
944
Intangible assets
826
819
Property, plant and equipment
5
16,843
17,799
Other assets
51
77
Total assets
49,267
55,120
Notes
9/30/2023
12/31/2022
(€ in thousands)
Current liabilities
12,565
11,182
Trade payables
7
2,426
2,683
Contract liabilities
7,053
4,877
Other financial liabilities
7
945
1,161
Other liabilities and provisions
6
2,141
2,461
Non-current liabilities
22,122
19,216
Contract liabilities
220
281
Other financial liabilities
7
21,701
18,743
Other liabilities and provisions
6
201
192
Equity
14,580
24,722
Subscribed capital
9,135
9,135
Capital reserves
113,098
112,996
Accumulated deficit
(107,236)
(97,240)
Accumulated other comprehensive income
(loss)
(641)
(464)
Equity attributable to the owners of
the company
14,356
24,427
Non-controlling interest
224
295
Total equity and liabilities
49,267
55,120
See accompanying notes to unaudited condensed
consolidated interim financial statements.
voxeljet AG
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
Three months ended September
30,
Nine months ended September
30,
Notes
2023
2022
2023
2022
(€ in thousands except share
and share data)
Revenues
9, 10
6,167
5,735
19,019
17,066
Cost of sales
9
(4,515
)
(4,089
)
(13,597
)
(11,738
)
Gross profit
9
1,652
1,646
5,422
5,328
Selling expenses
(1,790
)
(2,015
)
(5,822
)
(5,540
)
Administrative expenses
(1,782
)
(1,566
)
(4,924
)
(4,748
)
Research and development expenses
(1,534
)
(1,673
)
(4,671
)
(4,767
)
Other operating expenses
(181
)
(159
)
(795
)
(573
)
Other operating income
837
1,227
2,214
4,685
Thereof income (expense) from changes in
impairment allowance included in other operating income
(expense)
(10
)
9
(57
)
(120
)
Operating loss
(2,798
)
(2,540
)
(8,576
)
(5,615
)
Finance expense
8
(425
)
(6,175
)
(1,586
)
(6,333
)
Finance income
8
44
8
107
610
Financial result
8
(381
)
(6,167
)
(1,479
)
(5,723
)
Loss before income taxes
(3,179
)
(8,707
)
(10,055
)
(11,338
)
Income tax income (expense)
—
5
(12
)
84
Net loss
(3,179
)
(8,702
)
(10,067
)
(11,254
)
Other comprehensive income (loss) that may
be reclassified subsequently to profit or loss
(53
)
(276
)
(177
)
(2,047
)
Total comprehensive loss
(3,232
)
(8,978
)
(10,244
)
(13,301
)
Loss attributable to:
Owners of the Company
(3,147
)
(8,659
)
(9,996
)
(11,170
)
Non-controlling interests
(32
)
(43
)
(71
)
(84
)
(3,179
)
(8,702
)
(10,067
)
(11,254
)
Total comprehensive loss attributable
to:
Owners of the Company
(3,200
)
(8,935
)
(10,173
)
(13,217
)
Non-controlling interests
(32
)
(43
)
(71
)
(84
)
(3,232
)
(8,978
)
(10,244
)
(13,301
)
Weighted average number of ordinary shares
outstanding
9,134,724
7,026,711
9,134,724
7,026,711
Loss per share - basic/ diluted (EUR)
(0.34
)
(1.23
)
(1.09
)
(1.59
)
See accompanying notes to unaudited condensed
consolidated interim financial statements.
voxeljet AG
CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
Attributable to the owners of
the company
Accumulated
other
Subscribed
Capital
Accumulated
comprehensive
Non-controlling
(€ in thousands)
capital
reserves
deficit
gain (loss)
Total
interests
Total equity
Balance at December 31, 2021
7,027
110,264
(85,974
)
1,400
32,717
(230
)
32,487
Loss for the period
--
--
(11,170
)
--
(11,170
)
(84
)
(11,254
)
Foreign currency translations
--
--
--
(572
)
(572
)
--
(572
)
Reclassification to profit or loss on
deconsolidation of subsidiary
--
--
--
(1,475
)
(1,475
)
--
(1,475
)
Equity-settled share-based payment
--
49
--
--
49
--
49
Change of non-controlling interests due to
capital increase
--
(668
)
--
--
(668
)
668
--
Balance at September 30, 2022
7,027
109,645
(97,144
)
(647
)
18,881
354
19,235
Attributable to the owners of
the company
Accumulated
other
Subscribed
Capital
Accumulated
comprehensive
Non-controlling
(€ in thousands)
capital
reserves
deficit
gain (loss)
Total
interests
Total equity
Balance at December 31, 2022
9,135
112,996
(97,240
)
(464
)
24,427
295
24,722
Loss for the period
--
--
(9,996
)
--
(9,996
)
(71
)
(10,067
)
Foreign currency translations
--
--
--
(177
)
(177
)
--
(177
)
Equity-settled share-based payment
--
102
--
--
102
--
102
Balance at September 30, 2023
9,135
113,098
(107,236
)
(641
)
14,356
224
14,580
See accompanying notes to unaudited condensed
consolidated interim financial statements.
voxeljet AG
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine months ended September
30,
2023
2022
(€ in thousands)
Cash Flow from operating
activities
Loss for the period
(10,067
)
(11,254
)
Depreciation and amortization
2,198
2,174
Foreign currency exchange differences
including loan to subsidiaries
(82
)
(1,589
)
Foreign currency translation reserve
reclassified to profit or loss
--
(1,475
)
Change in fair value of bond funds
--
773
Share-based compensation expense
102
49
Change in impairment of trade receivables
and other receivables
57
120
Non-cash interest expense on long-term
debt
333
2,540
Change in fair value of derivative equity
forward
--
2,311
Change in fair value of derivative put
option
325
--
Change in inventory allowance
233
597
Loss on disposal of property, plant and
equipment and intangible assets
--
23
Interest paid
928
129
Interest received
(88
)
(75
)
Interest accrued
(13
)
--
Other
(1
)
(87
)
Change in working capital
(666
)
(1,635
)
Trade and other receivables, inventories
and current assets
(2,343
)
(6,163
)
Trade payables
(143
)
773
Other liabilities, contract liabilities
and provisions
1,842
3,776
Income tax payable/receivables
(22
)
(21
)
Total
(6,741
)
(7,399
)
Cash Flow from investing
activities
Payments to acquire property, plant and
equipment and intangible assets
(534
)
(574
)
Proceeds from disposal of financial
assets
1,873
12,581
Payments to acquire financial assets
(3,715
)
--
Interest received
88
75
Total
(2,288
)
12,082
Cash Flow from financing
activities
Repayment of lease liabilities
(761
)
(356
)
Repayment of long-term debt
(79
)
(1,522
)
Proceeds long-term debt
3,028
--
Debt transaction cost
(124
)
--
Proceeds from issue of ordinary shares in
the form of ADS
860
--
Share issue cost
(71
)
--
Change in restricted cash
--
294
Interest paid
(931
)
(129
)
Total
1,922
(1,713
)
Net increase (decrease) in cash and
cash equivalents
(7,107
)
2,970
Cash and cash equivalents at beginning
of period
12,119
7,027
Changes to cash and cash equivalents due
to foreign exchanges rates
(44
)
240
Cash and cash equivalents at end of
period
4,968
10,237
See accompanying notes to unaudited condensed
consolidated interim financial statements.
voxeljet AG
NOTES TO THE CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS (UNAUDITED)
1. Preparation of financial statements
Our condensed consolidated interim financial statements include
the accounts of voxeljet AG (‘voxeljet’ or the ‘Company’) and its
wholly-owned subsidiaries voxeljet America Inc. (‘voxeljet
America’) and voxeljet India Pvt. Ltd. (‘voxeljet India’), as well
as voxeljet China Co. Ltd. (‘voxeljet China’), where voxeljet AG
holds 88.52%, which are collectively referred to herein as the
‘Group’ or the ‘Company’, which is listed on the NASDAQ Capital
Market (‘NASDAQ’). The liquidation of voxeljet UK Ltd. (‘voxeljet
UK’), our UK subsidiary, was finalized on February 17, 2022, upon
submission of final account by liquidators to the Companies House,
the affairs of voxeljet UK were fully wound up. Therefore, voxeljet
UK accounts were deconsolidated in the first quarter of 2022.
The condensed consolidated interim financial statements were
prepared in compliance with all applicable measurement and
presentation rules contained in International Financial Reporting
Standards (‘IFRS’) as set forth by the International Accounting
Standards Board (‘IASB’) and Interpretations of the IFRS
Interpretations Committee (‘IFRIC’). The designation IFRS also
includes all valid International Accounting Standards (‘IAS’); and
the designation IFRIC also includes all valid interpretations of
the Standing Interpretations Committee (‘SIC’). Specifically, these
financial statements were prepared in accordance with the
disclosure requirements and the measurement principles for interim
financial reporting purposes specified by IAS 34. The condensed
consolidated interim financial statements should be read in
conjunction with the audited consolidated financial statements and
notes thereto that are included in the Company’s Annual Report on
Form 20-F for the year ended December 31, 2022. The results of
operations for the three and nine months ended September 30, 2023,
are not necessarily indicative of the results that may be expected
for the fiscal year ending December 31, 2023.
The IASB issued a number of new IFRS standards which are
required to be adopted in annual periods beginning after December
31, 2022.
Standard
Effective date
Descriptions
IFRS 17
01/2023
Amendments to IFRS 17 Insurance
Contracts
IAS 1
01/2023
Amendments to IAS 1 and IFRS Practice
Statement 2 Making Materiality Judgments
IAS 8
01/2023
Amendment to IAS 8 - Definition of
Accounting Estimate
IAS 12
01/2023
Amendments to IAS 12 - Deferred Taxes in
Connection with Assets and Liabilities arising from a single
transaction
IFRS 17 and IFRS 9
01/2023
Initial Application of IFRS 17 and IFRS
9―Comparative Information (Amendment to IFRS 17)
IAS 12
01/2023
International Tax Reform—Pillar Two Model
Rules
IAS 1
01/2024
Classification of Liabilities as Current
or Non-current and Non-current Liabilities with Covenants
(Amendments to IAS 1)
IFRS 16
01/2024
Lease Liability in a Sale and
Leaseback
IAS 7 and IFRS 7
01/2024
Supplier Finance Arrangements
IFRS S1
01/2024
General Sustainability-related
Disclosures
IFRS S2
01/2024
Climate-related Disclosures
IAS 21
01/2025
Lack of Exchangeability
The adoption of standards effective 01/2023 did not have a
material impact on the interim financial statements as of and for
the three and nine months ended September 30, 2023. The Company has
not yet conclusively determined what impact the new standards,
amendments or interpretations effective 01/2024 or later will have
on its financial statements, but does not expect they will have a
significant impact.
The condensed consolidated interim financial statements as of
and for the three and nine months ended September 30, 2023 and 2022
were authorized for issue by the Management Board on November 16,
2023.
Reclassification
Certain prior year amounts have been reclassified in the
condensed consolidated statement of financial position to conform
to the current period presentation. These reclassifications had no
effect on reported total assets and equity attributable to the
owners of the company.
Going concern
The financial statements have been prepared on the basis of
going concern which contemplates continuity of normal business
activities and the realization of assets and settlement of
liabilities in the ordinary course of business.
voxeljet has recognized continuous net losses during the nine
months ended September 30, 2023, full year 2022, 2021 and 2020
amounting to kEUR 10,067, kEUR 11,409, kEUR 10,586 and kEUR 15,481,
respectively. Additionally, voxeljet had negative cash flows from
operating activities in the nine months ended September 30, 2023,
full year 2022, 2021 and 2020 of kEUR 6,741, kEUR 9,184, kEUR 6,537
and kEUR 6,598, respectively, mainly due to continuous net
losses.
During 2021, in January, February and July, the Company
completed three registered direct offerings and sales of a total of
2,190,711 ADSs, which provided voxeljet with total gross proceeds
of approximately USD 32.0 million (€ 26.6 million) before deducting
fees and expenses. Further, on October 13, 2022, the Company
announced that it has completed another registered direct offering
and sale of 1,279,070 ordinary shares in the form of ADSs at a
purchase price of USD 3.44 (€ 3.60) per share. The gross proceeds
of the offering amounted to approximately USD 4.4 million (€ 4.6
million).
On October 31, 2022 the Company closed a sale and leaseback
transaction (the ’Sale-Leaseback‘) regarding voxeljet AG’s
properties located in Friedberg, Free State of Bavaria, Germany
with IntReal International Real Estate
Kapitalverwaltungsgesellschaft mbH, which was initiated on August
11, 2022. Under this agreement, voxeljet was entitled to receive
proceeds from the sale amounting to € 26.5 million and entered into
a long-term lease contract. Simultaneously, on August 11, 2022,
voxeljet initiated the full settlement of the Finance Contract
entered into with the European Investment Bank (the ’EIB‘), dated
November 9, 2017 (the “Finance Contract”), including the repayment
of tranche A and B1 thereunder, including all interest for a fixed
amount of € 22.0 million. In addition, the Company initiated the
early settlement of certain loans for which the sold properties
were collateralized, which were granted by Sparkasse
Schwaben-Bodensee, Germany (formerly Kreissparkasse Augsburg)
(‘Sparkasse‘) with a settlement of € 0.8 million in August 2022 and
€ 3.1 million in October 2022. Consequently, the Company has
written down the bifurcated embedded derivative financial
instruments relating to the performance participation interest for
tranche A and tranche B. The write-down resulted from the early
repayment of the Finance Contract in October 2022. The write-down
of the bifurcated embedded derivative financial asset relating to
the performance participation interest for tranche A resulted in
finance expense amounting to kEUR 2,827, and the bifurcated
embedded derivative financial liability for the performance
participation interest for tranche B1 resulted in finance income of
kEUR 516.
The closing process of the transaction, which began through the
initiation of the Sale-Leaseback at the notary on August 11, 2022,
was successfully finalized on October 31, 2022. The closing
included the receipt of the proceeds from IntReal International
Real Estate Kapitalverwaltungsgesellschaft mbH, the settlements
with EIB and Sparkasse and the subsequent initiation of the release
process for land charges and commencement of the long-term lease
contract on November 1, 2022. These steps further improved
voxeljet’s liquidity and financial flexibility, and released the
Company from all covenants in the Finance Contract, including a
Minimum Cash/Cash Equivalents requirement (the ’Minimum Cash
Covenant’).
In December 2022, the Company privately placed 828,943 ADSs,
each representing one ordinary share, at a purchase price of USD
2.16 (€ 2.04), with the institutional investor Anzu Ventures II LLC
(‘Anzu‘). The capital increase was registered on December 22, 2022
and the private placement was completed when voxeljet received the
remaining portion of the related funds amounting to USD 0.9 million
(€ 0.9 million) in January 2023. The first portion of USD 0.9
million (€ 0.8 million) was received in December 2022. This capital
increase provided the Company with gross proceeds of USD 1.8
million (€ 1.7 million) before deducting fees and expenses.
In January 2023, the Company issued a promissory note to Anzu
(the ’Anzu Note‘), in a principal amount of USD 3.2 million (€ 3.0
million). The Anzu Note matures on January 3, 2028, and includes
interest payable monthly at a rate of 3% per annum. In addition,
the Anzu Note includes a voluntary prepayment right for voxeljet,
and, in the case of fundamental changes including a change of
control in voxeljet, a right by voxeljet to repay the Anzu Note and
a right by Anzu to require that voxeljet repurchases the Anzu Note.
The aforementioned rights are considered to be embedded derivatives
that have to be bifurcated. A one-time interest payment equal to
the above principal amount of USD 3.2 million (as of September 30,
2023: € 3.0 million) is required to be paid upon maturity or at
time of prepayment. The terms of the Anzu Note include certain
covenants and events of default.
The capital increases described above improved voxeljet’s
liquidity as well as equity ratio significantly. Also, the
financing received through the Anzu Note had a positive impact on
the Company’s cash reserves. In addition, the closing of the
Sale-Leaseback in connection with the early settlement of certain
loans, released voxeljet from significant financial obligations
mainly related to the repayment of tranche A thereunder, including
the performance participation interest from the loan received from
the EIB. Tranche A would have become due in December 2022 amounting
to approximately € 14.6 million reduced or increased by the fair
value of the performance participation interest. The early
settlement further released the Company from all the covenants in
the Finance Contract, including the Minimum Cash Covenant.
In spite of this success, according to the Group’s current
liquidity forecasts, voxeljet will require further funding in the
near short term to maintain its operations. Therefore, management
is taking steps to raise additional funds, including meetings with
potential new and existing investors and banks, which may include
debt and/or equity financing, and there can be no assurance that
the Company will be able to raise further funds on terms favorable
to the Company, if at all.
The ongoing conflict between Russia and Ukraine raises further
risks and uncertainties. The heightened use of trade restrictions
and sanctions, including tariffs or prohibitions on technology
transfers to achieve diplomatic ends could impact voxeljet’s
ability to conduct its business as planned. A spill-over of the
conflict to neighboring countries, the European Union or NATO
members could result in further adverse impacts on the Company’s
business, including a drop in market demand, price increases for
raw materials and energy or delays in the global supply chain.
Currently management does not anticipate any material risks to the
Company’s business, operations and financial performance resulting
from the Israel-Hamas conflict which broke out in early October
2023.
These events and conditions described above raise material
uncertainties that may cast significant doubt upon voxeljet’s
ability to continue as a going concern. Despite the ongoing losses,
reduced cash flow as well as with the existing financial
obligations, management assumes that voxeljet will continue as a
going concern. However, the going concern is dependent upon
management and the Company being successful in:
- achievement of budgeted sales, and
- successful fundraising in form of equity
and/or debt
Those assumptions are included in the Company’s current
liquidity forecasts, and management believes that the Company has
the ability to meet its financial obligations for at least the next
12 months from the authorization for issuance of these condensed
consolidated interim financial statements as of and for the three
and nine months ended September 30, 2023 by the Management Board on
November 16, 2023 and therefore continues as a going concern.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of
these interim financial statements are set out in the Company’s
financial statements as of December 31, 2022, which can be found in
its Annual Report on Form 20-F that was filed with the U.S.
Securities and Exchange Commission on March 30, 2023. These
policies have been applied to all financial periods presented.
3. Share based payment arrangements
Option Plan 2017
On April 7, 2017, voxeljet AG established a share option plan
(Option Plan 2017) that entitles key management personnel and
senior employees of voxeljet AG and its subsidiaries to purchase
shares of the parent company.
Total options available under the share option plan are 372,000.
279,000 options (75%, tranche 1) were granted on April 7, 2017.
93,000 options (25%, tranche 2) were granted on April 12, 2018.
The vesting conditions include a service condition (the options
vest after a period of four years of continued service from the
respective grant date) and a market condition (the options may only
be exercised if the share price exceeds the exercise price over a
period of 90 consecutive days by at least 20% in the period between
the grant date and the respective exercise time frame) of which
both conditions must be met. The options from tranche 1 and tranche
2 have an expiration date of April 7, 2027 and April 12, 2028,
respectively.
In order to avoid insider trading, there are defined trading
windows during which the options can be exercised. When those
trading windows are closed, the exercise of options is not
possible.
The fair value of the employee share option plan has been
measured for tranches 1 and 2 using a Monte Carlo simulation. The
market condition has been incorporated into the fair value at grant
date.
The inputs used in the measurement of the fair value at grant
date are as follows:
Option Plan 2017
Tranche 1
Tranche 2
Parameter
Share price at grant date
USD 13.80
USD 16.15
Exercise price
USD 13.90
USD 16.15
Expected volatility
55.00%
58.40%
Expected dividends
--
--
Risk-free interest rate
2.49%
2.85%
Fair value at grant date
USD 8.00
USD 9.74
The respective expected volatility has been based on an
evaluation of the historical volatility of the Company’s share
price as of the grant date. As of September 30, 2023 265,050
options are exercisable and 353,400 options are outstanding. The
weighted-average contractual life of the options as of September
30, 2023 amounts to 3.8 years (September 30, 2022: 4.8 years).
The expenses recognized in the profit and loss statement in
relation to the share-based payment arrangements amounted to kEUR 0
in the three months and kEUR 0 in the nine months ended September
30, 2023 (three months and nine months ended September 30, 2022:
kEUR 0 and kEUR 49, respectively).
Option Plan 2022
On November 21, 2022, voxeljet AG established a second share
option plan (Option Plan 2022) that entitles key management
personnel and senior employees of voxeljet AG and its subsidiaries
to purchase shares of the parent company.
Total options available under this share option plan are
330,671. 330,669 options were granted on November 23, 2022. The
remaining two options will not be granted.
The vesting conditions include a service condition (the options
vest after a period of four years of continued service from the
respective grant date) and a market condition (the options may only
be exercised if the share price exceeds the exercise price over a
period of 90 consecutive days by at least 20% in the period between
the grant date and the respective exercise time frame) of which
both conditions must be met. The options have an expiration date of
November 23, 2032.
In order to avoid insider trading, there are defined trading
windows during which the options can be exercised. When those
trading windows are closed, the exercise of options is not
possible.
The fair value of the employee share option plan has been
measured using a Monte Carlo simulation. The market condition has
been incorporated into the fair value at grant date.
The inputs used in the measurement of the fair value at grant
date are as follows:
Option Plan 2022
Parameter
Share price at grant date
USD 3.04
Exercise price
USD 3.04
Expected volatility
66.80%
Expected dividends
--
Risk-free interest rate
3.68%
Fair value at grant date
USD 1.90
The respective expected volatility has been based on an
evaluation of the historical volatility of the Company’s share
price as of the grant date. As of September 30, 2023, 0 options are
exercisable and 302,326 options are outstanding. The
weighted-average contractual life of outstanding options as of
September 30, 2023 amounts to 9.2 years.
The expenses recognized in the profit and loss statement in
relation to Option Plan 2022 amounted to kEUR 27 in the three
months and kEUR 102 in the nine months ended September 30, 2023
(three months and nine months ended September 30, 2022: kEUR 0 and
kEUR 0, respectively).
Item 7 of voxeljet’s annual general meeting on May 25, 2023
resolved the extension of the authorization to issue stock option
rights (Option Plan 2022). The authorization of the Management
Board or - insofar as subscription rights are issued to members of
the Management Board - of the Supervisory Board to issue share
option rights resolved by the Annual General Meeting on June 2,
2022 under Item 7 was amended to the extent that the number of
subscription rights to be issued is increased by 210,801 from
330,671 to 541,472.
4. Inventories
9/30/2023
12/31/2022
(€ in thousands)
Raw materials and merchandise
4,223
3,116
Work in progress
9,513
8,020
Total
13,736
11,136
5. Property, plant and equipment, net
9/30/2023
12/31/2022
(€ in thousands)
Land, buildings and leasehold
improvements
11,356
12,038
Plant and machinery
4,724
4,900
Other facilities, factory and office
equipment
747
784
Assets under construction and prepayments
made
16
77
Total
16,843
17,799
Thereof pledged assets of Property, Plant
and Equipment
242
310
As of September 30, 2023, the pledged assets consist of three
(December 31, 2022: three) 3D printers that serve as collateral for
certain credit lines and loan agreements.
6. Other liabilities and provisions
9/30/2023
12/31/2022
(€ in thousands)
Accruals for vacation and overtime
352
294
Employee bonus
332
623
Liabilities from payroll
301
301
Accruals for compensation of Supervisory
board
158
180
Liabilities from VAT
143
164
Management compensation
130
167
Accruals for commissions
55
21
Accruals for licenses
35
46
Customers with a credit balance
19
22
Others
157
171
Other liabilities
1,682
1,989
Accrual for warranty
430
358
Accruals for management compensation
201
192
Labour dispute
29
114
Provisions
660
664
Total
2,342
2,653
Non-current portion of variable compensation for 2023 and 2022
of kEUR 201 and kEUR 192, respectively, are included in non-current
other liabilities and provisions.
7. Financial instruments
The following tables show the carrying amounts and fair values
of financial assets and financial liabilities, including their
levels in the fair value hierarchy.
Carrying amount
Fair Value
(€ in thousands)
Assets at
Liabilities
Total
FVTPL
FVOCI
amortized
at amortized
carrying
9/30/2023
cost
cost
amount
Level 1
Level 2
Level 3
Total
Total assets
—
4
14,610
—
14,614
Current assets
—
—
14,610
—
14,610
Cash and cash equivalents
—
—
4,968
—
4,968
Other financial assets
—
—
4,889
—
4,889
—
—
—
—
Term Deposit
—
—
1,891
—
1,891
—
—
—
—
Restricted cash
—
—
2,988
—
2,988
—
—
—
—
Accrued interest
—
—
10
—
10
—
—
—
—
Trade receivables, net
—
—
4,753
—
4,753
Non-current assets
—
4
—
—
4
Other financial assets
—
4
—
—
4
4
—
—
4
Equity securities
—
4
—
—
4
4
—
—
4
Total liabilities
869
—
—
5,195
25,072
Current liabilities
—
—
—
2,564
3,371
Trade payables
—
—
—
2,426
2,426
Other financial liabilities
—
—
—
138
945
—
—
137
137
Current portion of long-term debt
—
—
—
138
138
—
—
137
137
Lease liability
—
—
—
—
807
—
—
—
n/a
Non-current liabilities
869
—
—
2,631
21,701
Other financial liabilities
869
—
—
2,631
21,701
—
—
3,387
3,387
Derivative financial instruments
869
—
—
—
869
—
—
869
869
Long-term debt
—
—
—
2,631
2,631
—
—
2,518
2,518
Lease liability
—
—
—
—
18,185
—
—
—
n/a
Security deposit
—
—
—
—
16
—
—
—
n/a
Carrying amount
Fair Value
(€ in thousands)
Assets at
Liabilities
Total
FVTPL
FVOCI
amortized
at amortized
carrying
12/31/2022
cost
cost
amount
Level 1
Level 2
Level 3
Total
Total assets
—
4
21,271
—
21,275
Current assets
—
—
20,331
—
20,331
Cash and cash equivalents
—
—
12,119
—
12,119
Other financial assets
—
—
2,047
—
2,047
—
—
—
—
Restricted cash
—
—
2,047
2,047
—
—
—
—
Trade receivables, net
—
—
6,165
—
6,165
Non-current assets
—
4
940
—
944
Other financial assets
—
4
940
—
944
4
—
—
4
Equity securities
—
4
—
—
4
4
—
—
4
Restricted cash
—
—
940
—
940
Total liabilities
—
—
—
2,837
22,587
Current liabilities
—
—
—
2,789
3,844
Trade payables
—
—
—
2,683
2,683
Other financial liabilities
—
—
—
106
1,161
—
—
106
106
Current portion of long-term debt
—
—
—
106
106
—
—
106
106
Lease liability
—
—
—
—
1,055
—
—
—
n/a
Non-current liabilities
—
—
—
48
18,743
Other financial liabilities
—
—
—
48
18,743
—
—
45
45
Long-term debt
—
—
—
48
48
—
—
45
45
Lease liability
—
—
—
—
18,679
—
—
—
n/a
Security deposit
—
—
—
—
16
—
—
—
n/a
The valuation techniques used to determine the fair value of
financial instruments include the use of quoted market prices as
well as discounted cash flow analysis.
The fair value of equity securities is determined by multiplying
their quoted share price and the number of shares held.
In January 2023, the Company issued the Anzu Note to the
institutional investor Anzu Ventures II LLC ('Anzu’) in a principal
amount of USD 3.2 million (€ 3.0 million). The Anzu Note matures on
January 3, 2028, and includes interest payable monthly at a rate of
3% per annum. In addition, the Anzu Note includes a voluntary
prepayment right for voxeljet, and, in the case of fundamental
changes including a change of control in voxeljet, a right by
voxeljet to repay the Anzu Note and a right by Anzu to require that
voxeljet repurchases the Anzu Note. The aforementioned rights are
considered to be embedded derivatives that have to be bifurcated. A
one-time interest payment equal to the above principal amount of
USD 3.2 million (as of September 30, 2023: € 3.0 million) is
required to be paid upon maturity or at time of prepayment. The
terms of the Anzu Note include certain covenants and events of
default.
The Anzu Note contains an early prepayment right for the Company
(call option) and a conditional early prepayment right for the
lender (put option dependent on the occurrence of a fundamental
change event). The initial analysis of the derivative financial
instruments in connection with the early prepayment rights embedded
in the Anzu Note was based on the analysis of the market rate of
interest implied in the contract and the contractual strike
interest rate underlying the call and put option. This qualitative
analysis yielded a fair value of zero for the call option and a
fair value equal to the intrinsic value of the put option. The
result was confirmed by a Hull-White model using the U.S. Treasury
yield curve, the volatility thereof, the expected recovery rate and
the default intensity (credit spread) as well as the mean reversion
as input parameters. The fair value of the conditional put option
at inception was derived in an iterative process based on the
contractual terms of the Anzu Note, the strike price of the put
option, likelihood of occurrence of a fundamental change event and
the fair value of the combined instrument including the
derivatives. The equilibrium (i.e. matching of the total fair value
of the instrument with the funds received under the Anzu Note)
yields the fair value of the put and the implied interest rate of
the note without the put. The subsequent valuation of the call
option is based on a qualitative assessment of changes in the
credit conditions of the Company; the subsequent valuation of the
conditional put option is based on the likelihood of occurrence of
a fundamental change event and the updated implied interest rate
using market yield curves. As of September 30, 2023, management
assessed the likelihood of occurrence of a fundamental change event
to be at 25%.
The fair value of embedded derivative financial instruments from
the Anzu Note is measured using inputs that are mostly not
observable in the market and it has therefore been classified in
level 3. The fair value of the conditional put option might
increase (decrease) based on an increase (decrease) in the
estimated likelihood of occurrence of a fundamental change event.
An increase (decrease) in the likelihood of one percentage point
would lead to an increase (decrease) in the fair value of the put
of kEUR 35.
For the revaluation of the put option voxeljet uses an external
expert. The voxeljet team receives and reviews the calculation and
makes appropriate postings on each balance sheet date. The external
expert provides the calculation to the voxeljet team on a quarterly
basis.
The following table presents the changes in level 3 instruments
for the nine months ended September 30, 2023, which were related to
the Anzu Note as described above:
Non-current
liabilities
(€ in thousands)
Derivative financial
instruments
Balance at December 31, 2022
—
Addition
535
(Gains)/losses from revaluation recognized
in income statement
325
(Gains)/losses from foreign currency
translation recognized in income statement
9
Balance at September 30, 2023
869
Derivative financial instruments are initially measured at fair
value. Subsequent to initial recognition, derivatives are measured
at fair value, and changes therein are generally recognized in
profit or loss as finance income or finance expense. Finance
expense amounting to kEUR 325 was recognized for the nine months
ended September 30, 2023. Further, a loss from foreign currency
valuation of kEUR 9 was recognized in other operating expenses for
the nine months ended September 30, 2023. These effects are
attributable to changes in unrealized gains/losses relating to
financial liabilities held at the end of the reporting period
September 30, 2023.
The fair value of the other long-term debt was determined using
discounted cash flow models based on the relevant forward interest
rate yield curves, considering the credit risk of voxeljet.
Due to their short maturity and the current level of interest
rates, the carrying amounts of cash and cash equivalents,
restricted cash, trade receivables, trade payables, term deposits
and current portions of long-term debt approximate their fair
values.
The Group’s policy is to recognize transfers into and transfers
out of fair value hierarchy levels as of the end of each quarter.
As of September 30, 2023, and December 31, 2022, there were no
transfers of financial instruments measured at fair value between
level 1, level 2 and level 3.
As of September 30, 2023, the Company was in compliance with all
covenants.
8. Financial result
Three months ended September
30,
2023
2022
(€ in thousands)
Finance
expense
(425
)
(6,175
)
Interest expense on lease liabilities
(286
)
(33
)
Interest expense from the application of
the effective interest rate method
(139
)
(1,475
)
Expense from revaluation of derivative
financial instruments
--
(4,664
)
Other
--
(3
)
Finance
income
44
8
Interest income from term deposits
34
--
Income from revaluation of derivative
financial instruments
7
--
Other
3
8
Financial result
(381
)
(6,167
)
Nine months ended September
30,
2023
2022
(€ in thousands)
Finance
expense
(1,586
)
(6,333
)
Interest expense on lease liabilities
(866
)
(103
)
Interest expense from the application of
the effective interest rate method
(395
)
(2,625
)
Expense from revaluation of derivative
financial instruments
(325
)
(2,827
)
Fair value valuation of financial
assets
--
(773
)
Other
--
(5
)
Finance
income
107
610
Payout of bond funds
--
77
Interest income from term deposits
100
--
Income from revaluation of derivative
financial instruments
--
516
Other
7
17
Financial result
(1,479
)
(5,723
)
9. Segment reporting
The following table summarizes segment reporting. The sum of the
amounts of the two segments equals the total for the Group in each
of the periods.
Three months ended September
30,
2023
2022
(€ in thousands)
CONSO
CONSO
SYSTEMS
SERVICES
LIDATION
GROUP
SYSTEMS
SERVICES
LIDATION
GROUP
Revenues
3,503
2,781
(117
)
6,167
2,874
3,031
(170
)
5,735
Third party
3,386
2,781
6,167
2,704
3,031
--
5,735
Intra-segment
117
--
(117
)
—
170
--
(170
)
—
Cost of sales
(2,557
)
(1,958
)
(4,515
)
(2,053
)
(2,036
)
(4,089
)
Gross profit
829
823
1,652
651
995
1,646
Gross profit in %
24.5
%
29.6
%
26.8
%
24.1
%
32.8
%
28.7
%
Operating Expenses
(5,106
)
(5,254
)
Other operating expenses
(181
)
(159
)
Other operating income
837
1,227
Operating loss
(2,798
)
(2,540
)
Finance expense
(425
)
(6,175
)
Finance income
44
8
Financial result
(381
)
(6,167
)
Loss before income taxes
(3,179
)
(8,707
)
Income tax income (expense)
—
5
Net loss
(3,179
)
(8,702
)
Nine months ended September
30,
2023
2022
(€ in thousands)
CONSO
CONSO
SYSTEMS
SERVICES
LIDATION
GROUP
SYSTEMS
SERVICES
LIDATION
GROUP
Revenues
10,730
8,449
(160
)
19,019
8,486
9,334
(754
)
17,066
Third party
10,570
8,449
--
19,019
7,732
9,334
--
17,066
Intra-segment
160
--
(160
)
—
754
--
(754
)
—
Cost of sales
(7,766
)
(5,831
)
(13,597
)
(5,967
)
(5,771
)
(11,738
)
Gross profit
2,804
2,618
5,422
1,765
3,563
5,328
Gross profit in %
26.5
%
31.0
%
28.5
%
22.8
%
38.2
%
31.2
%
Operating Expenses
(15,417
)
(15,055
)
Other operating expenses
(795
)
(573
)
Other operating income
2,214
4,685
Operating loss
(8,576
)
(5,615
)
Finance expense
(1,586
)
(6,333
)
Finance income
107
610
Financial result
(1,479
)
(5,723
)
Loss before income taxes
(10,055
)
(11,338
)
Income tax income (expense)
(12
)
84
Net loss
(10,067
)
(11,254
)
10. Revenues
Three months ended September
30,
2023
2022
2023
2022
SYSTEMS
SERVICES
(€ in thousands)
Primary geographical markets
EMEA
1,586
847
1,783
1,731
Asia Pacific
720
1,252
134
326
Americas
1,080
605
864
974
3,386
2,704
2,781
3,031
Timing of revenue recognition
Products transferred at a point in
time
3,161
2,461
2,781
3,031
Products and services transferred over
time
225
243
--
--
Revenue from contracts with
customers
3,386
2,704
2,781
3,031
Nine months ended September
30,
2023
2022
2023
2022
SYSTEMS
SERVICES
(€ in thousands)
Primary geographical markets
EMEA
4,249
2,997
5,186
5,852
Asia Pacific
2,442
2,540
541
868
Americas
3,879
2,195
2,722
2,614
10,570
7,732
8,449
9,334
Timing of revenue recognition
Products transferred at a point in
time
9,698
6,705
8,449
9,334
Products and services transferred over
time
872
1,027
--
--
Revenue from contracts with
customers
10,570
7,732
8,449
9,334
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
(€ in thousands)
EMEA
3,369
2,578
9,435
8,849
Germany
922
1,257
3,714
4,275
France
286
296
679
797
Great Britain
681
490
1,870
1,681
United Arab Emirates
706
--
1,357
2
Others
774
535
1,815
2,094
Asia Pacific
854
1,578
2,983
3,408
China
296
537
1,229
1,923
South Korea
154
139
1,112
409
India
365
39
388
70
Others
39
863
254
1,006
Americas
1,944
1,579
6,601
4,809
United States
1,916
1,566
6,484
4,777
Others
28
13
117
32
Total
6,167
5,735
19,019
17,066
11. Commitments, contingent assets and liabilities
In connection with the enforcement of voxeljet’s intellectual
property rights, the acquisition of third-party intellectual
property rights, or disputes related to the validity or alleged
infringement of the Company’s or a third party’s intellectual
property rights, including patent rights, voxeljet has been and may
in the future be subject or party to claims, negotiations or
complex, protracted litigation.
In March 2018, ExOne GmbH, a subsidiary of The ExOne Company,
notified voxeljet of its intent not to pay its annual license fees
under an existing intellectual property-related agreement and
asserted its rights to claim damages pursuant to an alleged
material breach of the agreement. At this time, the Company cannot
reasonably estimate a contingency, if any, related to this matter.
On November 12, 2021, The ExOne Company and its affiliates were
acquired by DESKTOP METAL, INC. Management expects that the cash
outflow towards settlement of claims is very unlikely.
In September 2023, a company which develops software for
businesses (the ‘software provider’), notified the Company that
unlicensed software owned and copyrighted by the software provider
was installed on certain computers within a voxeljet subsidiary’s
network (the ‘License Matter’). Relatedly, the software provider
proposed a compensation package including the purchase of license
and software maintenance by the applicable voxeljet subsidiary. As
of November 16, 2023, the parties have not yet commenced
negotiations over the settlement of the License Matter and at this
time, the Company cannot reasonably estimate a contingency, if any,
related to this matter. Management expects that cash outflow
towards such a settlement of claims, if any, will not have a
material impact on the Company’s financial position, results of
operations and liquidity.
voxeljet AG issued letters of support to its subsidiaries
voxeljet China and voxeljet America to provide financial support to
enable the companies to meet its obligation or liabilities as and
when they fall due. The guarantee is irrevocable for at least 12
months from the date on which financial statements for the
financial year ended December 31, 2022 are issued.
Further, voxeljet AG issued a letter of support to voxeljet
India on July 12, 2023 to provide financial support to enable the
subsidiary to meet its obligation or liabilities as and when they
fall due. The guarantee is irrevocable for at least 12 months from
the date of issue of this letter.
Management assessed that it is unlikely that the subsidiaries
would exercise these letters of support, including in view of the
License Matter.
12. Related party transactions
Name
Nature of relationship
Duration of
relationship
Franz Industriebeteiligungen AG,
Augsburg
Lessor
10/01/2003 - Current
Schlosserei und Metallbau Ederer,
Dießen
Supplier
05/01/1999 - Current
DSCS Digital Supply Chain Solutions GmbH,
Gersthofen
Customer
05/11/2017 - 07/10/2023
Michele Neuber
Employee
07/01/2019 - 03/31/2022
Lisa Franz
Employee
10/01/2021 - 02/18/2022
Romy Ederer
Employee
03/06/2023 - 04/14/2023
Transactions with Franz Industriebeteiligungen AG comprise the
rental of office space in Augsburg, Germany. Rental expenses
amounted to kEUR 2 in each of the nine months ended September 30,
2023 and September 30, 2022.
Further, voxeljet acquired goods amounting to kEUR 0 and kEUR 0
in the nine months ended September 30, 2023 and September 30, 2022,
respectively from ‘Schlosserei und Metallbau Ederer’, which is
owned by the brother of Dr. Ingo Ederer, the Chief Executive
Officer of voxeljet.
Further, voxeljet received orders amounting to kEUR 0 and kEUR 0
in the nine months ended September 30, 2023 and September 30, 2022,
respectively from DSCS Digital Supply Chain Solutions GmbH
('DSCS’), which was an associated company where the Company owned
33.3%. Shareholders of DSCS initiated the wind-up of DSCS in 2020,
which was finalized by DSCS’s removal from the commercial register
on July 10, 2023.
In addition, voxeljet employed Michele Neuber as an intern
between July 2019 and March 2022. Michele Neuber is the son of
Volker Neuber, who has been a member of voxeljet’s supervisory
board since July 2020. Michele Neuber received a salary of kEUR 1
in the first quarter of 2022.
In addition, voxeljet employed Lisa Franz, who is the daughter
of Rudolf Franz, the Chief Operating Officer and Chief Financial
Officer of voxeljet, as an intern between October 2021 and February
2022. She received a salary of kEUR 1 in the first quarter of
2022.
Further, voxeljet employed Romy Ederer, who is the daughter of
Dr. Ingo Ederer, the Chief Executive Officer of voxeljet, as an
intern between March and April 2023. She received a salary of kEUR
1 in the nine months ended September 30, 2023.
All related party transactions voxeljet entered into were made
on an arm's length basis.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231116709477/en/
Investors and Media Johannes Pesch Director Investor
Relations and Business Development johannes.pesch@voxeljet.de
Office: +49 821 7483172 Mobile: +49 176 45398316
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