A Walk-Through Elsight’s Performance during the First Half of FY20


  • Elsight achieved a significant milestone with over 15 extensive POC trials currently progressing across several key verticals.
  • Elsight took advantage of the new opportunities that arose concerning the healthcare infrastructure amid COVID-19 and received an initial order for Halo from Kinetx Prime, LLC (US$1.6 million) and Alrena Technologies (US$0.3 million), its strategic partner since 2017.
  • Elsight’s strengthened cash and cash equivalents, net asset position and working capital for first half of FY20 was backed by a capital raise of US$1,975,723 in the March quarter as well as US$350,306 received in the June quarter on the exercise of options.
  • Following proceeds from placement and aggressive cost-cutting steps, Elsight is well-placed to face significant economic challenges, while modifying numerous strategic moves to take advantage of both new as well as notable opportunities primarily in the rural, drones, remote healthcare, and working environment.

Elsight Limited (ASX:ELS), a top-notch technology solutions provider reinventing real-time data transmission, on 31 August 2020, has released its half-year financial report for the period ended 30 June 2020 (1H FY20).

The financial release for 1H FY20 outlined operational review concerning financial performance, review of activities as well as significant milestones achieved subsequent to the half-year ended 30 June 2020.

Did you read; Elsight’s connectivity platform is bridging the digital divide

Skimming through Elsight’s financial highlights

Elsight Limited offers products that are reliable, secured, and facilitate real-time data transmission over multiple links. The Company witnessed a remarkable improvement in its net asset position, cash and cash equivalents and working capital at the end of 30 June 2020.

  • Elsight’s net assets were recorded at US$2,017,984 in 1H FY20, demonstrating an increase of US$602,722 (y-o-y).
  • ELS’s cash and cash equivalents were noted of US$1,786,809 at the end of 30 June 2020 versus US$933,517 noted at the end of December 2019.
  • In 1H FY20, the Company’s working capital was noted at US$1,631,491.

Notably, Elsight’s enhanced net asset position, cash and cash equivalents and working capital for 1H FY20 were ascribed to receipt of proceeds from net share placement of US$1,975,723 in the March quarter as well as US$350,306 received in the June quarter on the exercise of options.

Elsight’s net loss after income tax for the half-year ended 30 June 2020 was recorded at US$1,811,052, including non-cash share-based payments of US$ 148,566 and selling, general and administrative expenses of US$1,644,467.

Did you read; Casting an eye over the breakthrough Connectivity Platform of Elsight – Halo

During the first half of FY20, Elsight focused on Proof-of-Concept (POC) trials for Halo v1.1 with 15 widespread POCs currently progressing in all key areas as on 30 June 2020, despite travel restrictions and limitations amid Lockdown. Moreover, ELS has also achieved remarkable milestones by leveraging the opportunities that arose due to COVID-19.

Significant milestones achieved in the wake of COVID-19 crisis

It is worth mentioning that Elsight did not experience any considerable impact on its cash flow, operations and financial performance because of the challenges stemming from COVID-19 pandemic. Furthermore, the Company’s operations continued to run well with the adequate supply to operate and maintain crucial equipment.

Elsight took full advantage of the business slowdown prompted by pandemic to make extensive efforts for obtaining a large set of key certifications such as full FCC, CE, US carriers’ certifications, FCC SDoC, and privatisation certifications including CCPA, HIPPA, GDPR.

Importantly, these certifications that are already concluded or are still under the process would further facilitate in locking of expansive sales deal for Halo platform in Europe, the US, and other markets in the Far East.

Furthermore, Elsight prioritized numerous opportunities that arose amidst COVID-19 pandemic in light of its capability to supply as well as deliver the product in the short-term vs the requirement of the Company’s focus on long-term repeat orders.

Noteworthy, new opportunities arose in relation to the healthcare infrastructure.

ELS Partnership with US-based Kinetx Prime, LLC addressing challenges in “rural health clinics”

On 30 July 2020, Elsight announced a strategic partnership with Kinetx Prime with the receipt of an initial purchase order worth US$1.6 million (A$2.3 million), with the view of material repeat orders of similar size over the next three years.

The partnership has created a noteworthy opportunity to mass distribute direct-to-consumer telehealth services for rural communities in North America.

Related read; Elsight Reaches Major Milestone with significant Halo order received from Kinetx Prime, Stock Rallies Above 63%

Receipt of First Halo Order of US$300k for Portable Telemedicine Technology from Alrena Technologies

On 17 August 2020, Elsight announced the receipt of an initial order of US$300,000 for its Halo units that were noted to be incorporated in an ultra-light and ultra-portable version of Alrena’s “Smartmedicase” branded as the “Smartmedibag. This Smartmedibag solution was projected to empower independent nurses across France to supply lifesaving treatment through telemedicine in remote areas.

Moreover, Alrena’s Smartmedicase is witnessing the ongoing demand in France, though the challenge of manufacturing as well as securing adequate supply parts to meet demand, remains.

Must Read; Impressive! Elsight Received First Halo Order of US$300k for Portable Telemedicine Technology, Stock Up 9.7% on ASX

Elsight has also received numerous product inquiries, globally, concerning “always on” low latency communication empowering businesses to function as a result of the situation, which has endorsed refining as well as refocusing of the core value of Elsight’s technology and its applicability further than the COVID-19 crisis.

Did you read; A Lens over Elsight’s Cutting-Edge Technology

Other activities undertaken subsequent to the current reporting period

Elsight undertook numerous activities succeeding the period ended 30 June 2020. Following are some of the activities:

  • On 4 August 2020, the Company had issued 100,000 Employee Share Plan to Susana Gabay which is excisable at a per-share price of A$0.28 on or before 23 April 2025 post satisfaction of the two vesting conditions, i.e. 50% on 23 April 2021 and 6.25% at the end of every quarter of continuous service thereafter.
  • On 30 June 2020, Elsight had borrowings classified as a current liability of US$49,095 which were due maturity on 27 July 2020. These borrowings were renegotiated after 1H FY20 and resulted in an amount that was to be repaid in equal instalments over three years.

Did you read; Scan through Elsight’s Remarkable June Quarter Performance

Way forward

Despite the fact that the turbulent waves of COVID-19 did not have any material impact on the firm until the end of June 2020, the pandemic is still prevailing and is developing rapidly.

However, Subsequent to A$2.880 million placement in January 2020 and aggressive cost-cutting measures during April and May (comprising of 50% cut to the salaries of founders, suppliers and board fees as well), Elsight is well-placed to meet substantial economic challenges, while modifying few strategic moves to take advantage of new as well as remarkable opportunities predominantly in the remote healthcare and working environment.

On 3 September 2020, ELS was trading at A$0.600 at 12:10 PM AEST.

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