Enhanced Investments - Financial Portal

Published: 2021-02-18 06:35:25 ET

EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1

NICE Reports Accelerated Cloud Revenue Growth for The Fourth Quarter and Full Year 2020

2020 Annual Cloud Revenue Growth Exceeds 30%

Company Exits 2020 with Greater than $900 Million Annualized Cloud Revenue Run Rate

Record Cash Flow from Operations of $480 Million for Full Year 2020

Hoboken, New Jersey, February 18, 2021 - NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Financial Highlights

GAAP	Non-GAAP
Cloud revenue of $219 million, growth of 31% year-over-year	Cloud revenue of $223 million, growth of 33% year-over-year
Total revenue of $435 million, growth of 1% year-over-year	Total revenue of $438 million, growth of 2% year-over-year
Cloud gross margin of 58.3% compared to 54.2% last year	Cloud gross margin of 67.6% compared to 63.8% last year
Operating income of $65 million compared to $78 million last year	Operating income of $132 million compared to $130 million last year
Operating margin of 15.0% compared to 18.0% last year	Operating margin of 30.1% compared to 30.2% last year
Diluted EPS of $0.83 compared to $0.95 last year	Diluted EPS of $1.61 compared to $1.58 last year
Operating cash flow of $167 million compared to $91 million last year

Full Year 2020 Financial Highlights

GAAP	Non-GAAP
Cloud revenue of $777 million, growth of 30% year-over-year	Cloud revenue of $786 million, growth of 31% year-over-year
Total revenue of $1,648 million, growth of 5% year-over-year	Total revenue of $1,657 million, growth of 5% year-over-year
Cloud gross margin of 56.3% compared to 51.3% last year	Cloud gross margin of 65.6% compared to 61.8% last year
Operating income of $242 million compared to $239 million last year	Operating income of $470 million compared to $434 million last year
Operating margin of 14.7% compared to 15.2% last year	Operating margin of 28.4% compared to 27.5% last year
Diluted EPS of $2.98 versus $2.88 last year, 3% growth year-over-year	Diluted EPS of $5.73 versus $5.31 last year, 8% growth year-over-year
Record cash flow from operations of $480 million compared to $374 million last year

“We are pleased to report another exceptional year at NICE highlighted by groundbreaking innovation and speed of execution in cloud, digital and artificial intelligence. We witnessed accelerated cloud growth, cloud exceeded more than 50% of our total revenue for the second half of the year, and we exited 2020 with more than $900 million in an annualized cloud revenue run rate propelled by the tremendous success of our CXone cloud platform. We saw a 100% year-over-year increase in our customers’ digital interactions volume and 50% of our new deals were driven by digital initiatives. Our market leading AI solution, Enlighten, experienced strong demand with many new deals and a fast growing pipeline,” said Barak Eilam, CEO of NICE.

Mr. Eilam continued, “2021 is shaping up to be a year of a changed reality, in which the events of 2020 have created a new normal, and at the same time provided new opportunities in cloud and digital. Enterprises are seeking to rapidly accelerate their innovation cycles and leap forward much faster than before while continuously adapting to changes. We are well-positioned to capitalize on this transition with our leading digital cloud platforms together with a large and fast growing total addressable market.”

GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

Revenues: Fourth quarter 2020 total revenues increased 1.0% to $434.6 million compared to $430.2 million for the fourth quarter of 2019.

Full year 2020 total revenues increased 4.7% to $1,648.0 million compared to $1,573.9 million for the full year 2019.

Gross Profit: Fourth quarter 2020 gross profit was $288.5 million compared to $292.9 million for the fourth quarter of 2019. Fourth quarter 2020 gross margin was 66.4% compared to 68.1% for the fourth quarter of 2019.

Full year 2020 gross profit increased to $1,086.1 million compared to $1,042.1 million for the full year 2019. Full year 2020 gross margin was 65.9% compared to 66.2% for the full year 2019.

Operating Income: Fourth quarter 2020 operating income was $65.1 million compared to $77.6 million for the fourth quarter of 2019. Fourth quarter 2020 operating margin was 15.0% compared to 18.0% for the fourth quarter of 2019.

Full year 2020 operating income increased to $242.0 million compared to $238.7 million for the full year 2019. Full year 2020 operating margin was 14.7% compared to 15.2% for the full year 2019.

Net Income: Fourth quarter 2020 net income was $55.0 million compared to $61.7 million for the fourth quarter of 2019. Fourth quarter 2020 net income margin was 12.6% compared to 14.4% for the fourth quarter of 2019.

Full year 2020 net income and net income margin increased to $196.3 million and 11.9%, respectively, compared to $185.9 million and 11.8%, respectively, for the full year 2019.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the fourth quarter of 2020 was $0.83 compared to $0.95 in the fourth quarter of 2019.

Fully diluted earnings per share for the full year 2020 increased to $2.98 compared to $2.88 for the full year 2019.

Operating Cash Flow and Cash Balance: Fourth quarter 2020 operating cash flow was $166.9 million and full year operating cash flow reached $480.3 million. In the fourth quarter, $20.7 million was used for share repurchases and $48.3 million was used for share repurchases for the full year of 2020. As of December 31, 2020, total cash and cash equivalents, short and long term investments were $1,463.9 million, and total debt was $681.2 million.

Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:

Revenues: Fourth quarter 2020 Non-GAAP total revenues increased to $438.4 million, up 1.7% from $431.1 million for the fourth quarter of 2019.

Non-GAAP total revenues for the full year 2020 increased 5.0% to $1,657.1 million compared to $1,577.5 million for the full year 2019.

Gross Profit: Fourth quarter 2020 Non-GAAP gross profit increased to $316.7 million compared to $313.8 million for the fourth quarter of 2019. Fourth quarter 2020 Non-GAAP gross margin was 72.2% compared to 72.8% for the fourth quarter of 2019.

Full year 2020 Non-GAAP gross profit increased to $1,181.6 million compared to $1,125.3 million and full year 2020 Non-GAAP gross margin was 71.3%, the same as Non-GAAP gross margin for full year 2019.

Operating Income: Fourth quarter 2020 Non-GAAP operating income increased to $131.7 million compared to $130.2 million for the fourth quarter of 2019. Fourth quarter 2020 Non-GAAP operating margin was 30.1% compared to 30.2% for the fourth quarter of 2019.

Full year 2020 Non-GAAP operating income and Non-GAAP operating margin increased to $470.4 million and 28.4%, respectively, from $434.3 million and 27.5%, respectively, for the full year 2019.

Net Income: Fourth quarter 2020 Non-GAAP net income and Non-GAAP net income margin increased to $106.9 million and 24.4%, respectively, from $102.6 million and 23.8%, respectively, for the fourth quarter of 2019.

Full year 2020 Non-GAAP net income and Non-GAAP net income margin increased to $378.2 million and 22.8%, respectively, from $343.4 million and 21.8%, respectively, for the full year 2019.

Fully Diluted Earnings Per Share: Fourth quarter 2020 Non-GAAP fully diluted earnings per share increased 1.9% to $1.61, compared to $1.58 for the fourth quarter of 2019.

Full year 2020 Non-GAAP fully diluted earnings per share increased 7.9% to $5.73 compared to $5.31 for the full year 2019.

First Quarter and Full Year 2021 Guidance:

First Quarter 2021: First quarter 2021 Non-GAAP total revenues are expected to be in a range of $445 million to $455 million. First quarter 2021 Non-GAAP fully diluted earnings per share are expected to be in a range of $1.42 to $1.52.

Full Year 2021: Full year 2021 Non-GAAP total revenues are expected to be in a range of $1,790 million to $1,810 million. Full year 2021 Non-GAAP fully diluted earnings per share are expected to be in a range of $6.12 to $6.32.

Quarterly Results Conference Call

NICE management will host its earnings conference call today February 18^th, 2021 at 8:30 AM ET, 13:30 GMT,

15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial into the following numbers: United States 1-877-407-4018 or +1-201-689-8471, United Kingdom 0-800-756-3429, Israel 1-809-406-247.

The call will be webcast live on the Company’s website at https://www.nice.com/investor-relations/upcoming-event.

Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of discount on debt and the tax effect of the Non-GAAP adjustments. Business combination accounting rules require the recognition of a legal performance obligation related to a revenue arrangement of an acquired entity as a liability. The amount assigned to such liability should be based on its fair value at the date of acquisition. The Non-GAAP adjustment for a revenue arrangement is intended to reflect the full amount of such revenue. The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business. We believe Non-GAAP financial measures are useful to investors as a measure of the ongoing performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

About NICE

NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Investors

Marty Cohen, +1 551 256 5354, ir@nice.com, ET

Yisca Erez, +972 9 775-3798, ir@nice.com, CET

Media Contact

Chris Irwin-Dudek, +1 (551) 256-5140, Chris.Irwin-Dudek@nice.com

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,” “plan,” and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud business.

Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on fourth-party cloud computing platform providers, hosting facilities and service partners, rapidly changing technology, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). In addition, COVID-19 is contributing to a general slowdown in the global economy. At this time, the extent and duration of the continued impact of the pandemic is unknown, and therefore we cannot predict how it may affect the Company’s future business, results of operations, financial condition and strategic plans. Furthermore, due to our subscription based business model, the effect of COVID-19 may not be fully reflected in our results of operations until future periods, if at all. You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this presentation speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.

###

NICE LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

	December 31,		December 31,
	2020		2019
	Audited		Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	442,267	$	228,323
Short-term investments		1,021,613		210,772
Trade receivables		303,100		319,622
Prepaid expenses and other current assets		175,340		116,972

Total current assets		1,942,320		875,689

LONG-TERM ASSETS:
Long-term investments		-		542,389
Property and equipment, net		137,785		141,647
Deferred tax assets		32,735		30,513
Other intangible assets, net		366,003		411,019
Operating lease right-of-use assets		97,162		106,196
Goodwill		1,503,252		1,378,418
Other long-term assets		153,660		124,034

Total long-term assets		2,290,597		2,734,216

TOTAL ASSETS	$	4,232,917	$	3,609,905

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	33,132	$	30,376
Deferred revenues and advances from customers		311,851		245,792
Current maturities of operating leases		22,412		21,519
Exchangeable senior notes		259,881		251,583
Accrued expenses and other liabilities		417,174		391,685

Total current liabilities		1,044,450		940,955

LONG-TERM LIABILITIES:
Deferred revenues and advances from customers		36,295		26,045
Operating leases		92,262		103,490
Deferred tax liabilities		32,109		52,509
Long-term debt		421,337		213,313
Other long-term liabilities		17,980		16,327

Total long-term liabilities		599,983		411,684

SHAREHOLDERS' EQUITY
NICE Ltd's equity		2,563,910		2,257,266
Non-controlling interests		24,574		-

Total shareholders' equity		2,588,484		2,257,266

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,232,917	$	3,609,905

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)

	Quarter ended				Year ended
	December 31,				December 31,
	2020		2019		2020			2019
	Audited		Audited		Audited			Audited

Revenue:
Product	$	41,542	$	80,101	$	183,153		$	269,100
Services		174,003		183,117		687,532			709,064
Cloud		219,036		166,990		777,331			595,748
Total revenue		434,581		430,208		1,648,016			1,573,912

Cost of revenue:
Product		5,453		6,076		22,164			22,926
Services		49,245		54,772		199,803			218,990
Cloud		91,357		76,434		339,985			289,852
Total cost of revenue		146,055		137,282		561,952			531,768

Gross profit		288,526		292,926		1,086,064			1,042,144

Operating expenses:
Research and development, net		56,163		52,165		218,182			193,718
Selling and marketing		112,104		106,221		406,436			399,304
General and administrative		45,421		46,841		180,733			168,022
Amortization of acquired intangible assets		9,715		10,107		38,666			42,383
Total operating expenses		223,403		215,334		844,017			803,427

Operating income		65,123		77,592		242,047			238,717

Financial and other expense, net		2,600		554		4,859			4,444

Income before tax		62,523		77,038		237,188			234,273
Taxes on income		7,549		15,295		40,842			48,369
Net income	$	54,974	$	61,743	$	196,346		$	185,904

Less: net income/(loss) attributable to non-controlling interests		51		-		(327	)		-

Net income attributable to NICE Ltd.'s shareholders	$	54,923	$	61,743	$	196,673		$	185,904

Earnings per share:
Basic	$	0.87	$	0.99	$	3.13		$	2.99
Diluted	$	0.83	$	0.95	$	2.98		$	2.88

Weighted average shares outstanding:
Basic		62,967		62,357		62,710			62,120
Diluted		66,600		65,161		65,956			64,661

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands

	Quarter ended						Year ended
	December 31,						December 31,
	2020			2019			2020			2019
	Audited			Audited			Audited			Audited

Operating Activities

Net income	$	54,974		$	61,743		$	196,346		$	185,904
Depreciation and amortization		46,893			44,486			182,026			173,230
Stock based compensation		32,828			24,275			101,667			80,864
Amortization of premium and discount and accrued interest on marketable securities		157			134			(633	)		(53	)
Deferred taxes, net		(16,588	)		18,899			(33,241	)		(12,208	)
Changes in operating assets and liabilities:
Trade Receivables		(5,343	)		(56,763	)		22,245			(29,863	)
Prepaid expenses and other assets		(49,028	)		11,977			(80,665	)		(76,180	)
Trade payables		(1,137	)		5,850			4,094			777
Accrued expenses and other current liabilities		51,459			(22,059	)		14,875			31,730
Operating lease right-of-use assets, net		5,241			7,262			18,167			19,104
Deferred revenue		48,585			499			63,202			13,810
Long term liabilities		-			(11	)		-			(311	)
Operating lease liabilities		(5,272	)		(6,844	)		(19,569	)		(18,839	)
Amortization of discount on long term debt		5,352			2,388			13,297			9,236
Other		(1,251	)		(387	)		(1,505	)		(3,043	)
Net cash provided by operating activities		166,870			91,449			480,306			374,158

Investing Activities

Purchase of property and equipment		(2,519	)		(5,767	)		(24,186	)		(27,294	)
Purchase of Investments		(277,038	)		(125,165	)		(583,115	)		(619,060	)
Proceeds from Investments		45,444			79,084			328,593			362,713
Capitalization of software development costs		(10,322	)		(8,739	)		(39,098	)		(34,679	)
Payments for business and asset acquisitions, net of cash acquired		-			-			(147,261	)		(25,972	)
Net cash used in investing activities		(244,435	)		(60,587	)		(465,067	)		(344,291	)

Financing Activities

Proceeds from issuance of shares upon exercise of share options		688			717			8,865			5,428
Purchase of treasury shares		(20,671	)		(24,664	)		(48,272	)		(47,276	)
Capital Lease payments		-			(185	)		(177	)		(816	)
Repayment of long term debt		(215,000	)		-			(215,000	)		-
Proceeds/(costs) from issuance of exchangeable notes		(48	)		-			451,421			-
Net cash provided by/(used in) financing activities		(235,031	)		(24,132	)		196,837			(42,664	)

Effect of exchange rates on cash and cash equivalents		1,747			754			1,868			(979	)

Net change in cash and cash equivalents		(310,849	)		7,484			213,944			(13,776	)
Cash and cash equivalents, beginning of period	$	753,116		$	220,839		$	228,323		$	242,099

Cash and cash equivalents, end of period	$	442,267		$	228,323		$	442,267		$	228,323

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)

	Quarter ended						Year ended
	December 31,						December 31,
	2020			2019			2020			2019
GAAP revenues	$	434,581		$	430,208		$	1,648,016		$	1,573,912
Valuation adjustment on acquired deferred product revenue		-			-			-			15
Valuation adjustment on acquired deferred services revenue		149			-			230			5
Valuation adjustment on acquired deferred cloud revenue		3,679			842			8,866			3,534
Non-GAAP revenues	$	438,409		$	431,050		$	1,657,112		$	1,577,466

GAAP cost of revenue	$	146,055		$	137,282		$	561,952		$	531,768
Amortization of acquired intangible assets on cost of product		(1,073	)		(1,134	)		(4,467	)		(4,106	)
Amortization of acquired intangible assets on cost of services		(1,225	)		(1,522	)		(4,566	)		(6,126	)
Amortization of acquired intangible assets on cost of cloud		(18,012	)		(15,323	)		(66,434	)		(60,441	)
Valuation adjustment on acquired deferred cost of cloud		194			532			931			2,425
Cost of product revenue adjustment (1)		(131	)		131			(336	)		(173	)
Cost of services revenue adjustment (1)		(2,593	)		(1,941	)		(7,550	)		(8,192	)
Cost of cloud revenue adjustment (1)		(1,457	)		(813	)		(4,058	)		(2,955	)
Non-GAAP cost of revenue	$	121,758		$	117,212		$	475,472		$	452,200

GAAP gross profit	$	288,526		$	292,926		$	1,086,064		$	1,042,144
Gross profit adjustments		28,125			20,912			95,576			83,122
Non-GAAP gross profit	$	316,651		$	313,838		$	1,181,640		$	1,125,266

GAAP operating expenses	$	223,403		$	215,334		$	844,017		$	803,427
Research and development (1,2)		(4,324	)		(2,896	)		(11,877	)		(8,078	)
Sales and marketing (1,2)		(10,769	)		(7,468	)		(30,392	)		(26,679	)
General and administrative (1,2)		(13,775	)		(11,327	)		(52,014	)		(35,705	)
Amortization of acquired intangible assets		(9,719	)		(10,107	)		(38,670	)		(42,383	)
Valuation adjustment on acquired deferred commission		89			62			195			307
Non-GAAP operating expenses	$	184,905		$	183,598		$	711,259		$	690,889

GAAP financial and other expense, net	$	2,600		$	554		$	4,859		$	4,444
Amortization of discount on debt		(5,353	)		(2,388	)		(13,297	)		(9,235	)
Non-GAAP financial and other income, net	$	(2,753	)	$	(1,834	)	$	(8,438	)	$	(4,791	)

GAAP taxes on income	$	7,549		$	15,295		$	40,842		$	48,369
Tax adjustments re non-GAAP adjustments		20,056			14,142			59,757			47,400
Non-GAAP taxes on income	$	27,605		$	29,437		$	100,599		$	95,769

GAAP net income	$	54,974		$	61,743		$	196,346		$	185,904
Valuation adjustment on acquired deferred revenue		3,828			842			9,096			3,554
Valuation adjustment on acquired deferred cost of cloud revenue		(194	)		(532	)		(931	)		(2,425	)
Amortization of acquired intangible assets		30,029			28,086			114,137			113,056
Valuation adjustment on acquired deferred commission		(89	)		(62	)		(195	)		(307	)
Share-based compensation (1)		33,049			24,314			102,304			80,939
Acquisition related expenses (2)		-			-			3,923			843
Amortization of discount on long term debt		5,353			2,388			13,297			9,235
Tax adjustments re non-GAAP adjustments		(20,056	)		(14,142	)		(59,757	)		(47,400	)
Non-GAAP net income	$	106,894		$	102,637		$	378,220		$	343,399

GAAP diluted earnings per share	$	0.83		$	0.95		$	2.98		$	2.88

Non-GAAP diluted earnings per share	$	1.61		$	1.58		$	5.73		$	5.31

Shares used in computing GAAP diluted earnings per share		66,600			65,161			65,956			64,661

Shares used in computing non-GAAP diluted earnings per share		66,600			65,161			65,956			64,661

NICE LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
U.S. dollars in thousands

(1) Share-based Compensation
	Quarter ended					Year ended
	December 31,					December 31,
	2020		2019			2020		2019

Cost of product revenue	$	131	$	(131	)	$	336	$	173
Cost of services revenue		2,593		1,941			7,550		8,192
Cost of cloud revenue		1,457		813			4,058		2,955
Research and development		4,324		2,896			11,877		8,073
Sales and marketing		10,769		7,468			30,262		26,649
General and administrative		13,775		11,327			48,221		34,897
	$	33,049	$	24,314		$	102,304	$	80,939

(2) Acquisition related expenses	Quarter ended				Year ended
	December 31,				December 31,
	2020		2019		2020		2019

Research and development	$	-	$	-	$	-	$	5
Sales and marketing		-		-		130		30
General and administrative		-		-		3,793		808
	$	-	$	-	$	3,923	$	843

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.