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Published: 2022-02-15 07:21:18 ET

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6-K 1 zk2227319.htm 6-K

FORM 6 – K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report on Foreign Issuer

Pursuant to Rule 13a – 16 or 15d – 16

of the Securities Exchange Act of 1934

For the Month of February, 2022

Gilat Satellite Networks Ltd.

(Translation of Registrant’s Name into English)

Gilat House, Yegia Kapayim Street

Daniv Park, Kiryat Arye, Petah Tikva, Israel

(Address of Principal Corporate Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

Attached hereto is Registrant’s press release dated February 15, 2022, announcing Gilat’s unaudited Fourth Quarter and Full Year 2021 Results.

The attached press release is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

We consent to the incorporation by reference of the GAAP financial information included herein, in the Registration Statements on Form S-8 (Registration Nos. 333-180552, 333-187021, 333-204867, 333-210820, 333-217022, 333-221546, 333-223839, 333-231442, 333-236028, 333-253972 and 333-255740) and on Form F-3 (Registration No. 333-232597).

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Gilat Satellite Networks Ltd.
	(Registrant)

Dated February 15, 2022	By: /s/ Yael Shofar
	Yael Shofar
	General Counsel

Gilat Reports Strong Fourth Quarter and Full Year 2021 Results;

Resumes Yearly Guidance with Continued Strong Growth in 2022

Fourth quarter revenue of $67.3 million, up 58% YoY; GAAP operating income of $5.6

million; Adjusted EBITDA of $10.6 million;

Petah Tikva, Israel – February 15, 2022 – Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter Financial Highlights

•	Revenues of $67.3 million, up 58% compared with $42.6 million in Q4 2020 and up 35% compared with $49.9 million in the previous quarter;

•

GAAP operating income of $5.6 million compared with $62.7 million in Q4 2020 which included a one-time net income of $64.8 million related to the settlement with Comtech. Excluding this item, Q4 2020 operating loss would have been $2.1 million. GAAP operating income in the previous quarter was $0.9 million;

•	Non-GAAP operating income of $6.8 million, compared with Non-GAAP operating loss of $1.6 million in Q4 2020, and Non-GAAP operating income of $1.5 million in the previous quarter;

•

GAAP net income of $2.4 million, or $0.04 per diluted share, compared with net income of $62.4 million, or $1.12 per diluted share in Q4 2020. GAAP net income for Q4 2020 included the above-mentioned net income from the Comtech settlement; GAAP net income in the previous quarter was $0.2 million, or $0.00 per diluted share;

•	Non-GAAP net income of $5.9 million, or $0.10 per diluted share, compared with Non-GAAP net loss of $1.9 million, or loss of $0.03 per share in Q4 2020 and Non-GAAP net income of $0.7 million, or $0.01 per diluted share, in the previous quarter;

•	Adjusted EBITDA of $10.6 million, compared with $1.1 million in Q4 2020 and $4.0 million in the previous quarter;

Full year 2021 Financial Highlights

•	Revenue of $218.9 million, up by 32% compared with $165.9 million in 2020;

•	GAAP operating income of $2.5 million compared to $37.6 million in 2020; GAAP operating income in 2020 includes net income of $53.6 million related to the settlement with Comtech;

•	Non-GAAP operating income of $4.7 million compared with Non-GAAP operating loss of $13.7 million in 2020;

•	GAAP net loss of $2.7 million, or $0.05 per share, compared with GAAP net income of $34.9 million in 2020, or $0.63 per diluted share; GAAP net income in 2020 includes the above-mentioned Comtech settlement net income;

•	Non-GAAP net income of $1.8 million, or $0.03 per diluted share, compared to Non-GAAP net loss of $16.4 million, or $0.30 per share, in 2020;

•	Adjusted EBITDA was $15.7 million compared with adjusted EBITDA loss of $3.3 million in 2020;

Forward-Looking Expectations

Guidance for 2022 is for revenues of between $245 to $265 million, representing year-over-year growth of between 12% and 21%, GAAP operating income of between $5 to $9 million and adjusted EBITDA of between $20 to $24 million, representing year-over-year growth of between 27% to 53%.

Management Commentary

Adi Sfadia, Gilat's CEO, commented: “Our results in the quarter showed significant revenue growth of 58% year-over-year which translated into adjusted EBITDA of over $10 million, 10 times our levels in Q4 last year, an impressive achievement in a challenging year. These results, among others, reflect the opportunities and trends we are witnessing and have mentioned several times over the past year.”

"We recently launched SkyEdge IV, Gilat's next-generation multi-orbit, software-centric platform, that will improve operational efficiencies. I am proud to report that we recently closed major deals on this new platform with both Intelsat and SES, of which a significant portion were software licenses. We expect that with SkyEdge IV we will further increase our market share and strengthen our leadership position in our major focus areas of Mobility, 4G/5G Cellular Backhaul, Enterprise and Defense.

“Looking back at 2021, it was a remarkable year due to four major accomplishments. First, in the NGSO and VHTS segments we had two outstanding achievements: we were awarded a sizeable deal for a multi-year contract with the potential of hundreds of millions of dollars, to customize and provide our leading technology for NGSO constellations. Upon signing this contract, we received the first multi-million-dollar purchase order for initial units. We also received more than $40 million dollars in orders from a leading satellite operator to support a Low Earth Orbit Constellation.

"The second major accomplishment in 2021 was in fortifying our Mobility leadership in a multimillion dollar deal for SkyEdge IV, which provides Gilat access to top cruise lines and maritime service providers that will use SES’s O3b mPOWER as well as their geostationary fleet.

"The third major accomplishment during the year was in Peru, where we reached, ahead of our stated objectives, our goal of a $50 million run rate in annual recurring revenue. We expect that in 2022 we will turn the corner in Peru and our business there will become significantly profitable.

"And finally, we expanded our strategic relationship with Intelsat for commercial aviation in North America and Asia, demonstrating continued IFC market recovery."

Mr. Sfadia concluded, “As we enter 2022, I am very encouraged by our strong backlog, solid visibility and the pipeline we see ahead of us. We therefore feel confident in resuming our annual objectives which show strong growth in revenues and significant improvement in profitability for 2022.”

Page 2

Key Recent Announcements

o	Intelsat Makes Strategic Selection with a Significant Initial Order of Gilat's New SkyEdge IV Platform for Its Newest High Throughput Satellite

o	SES and Gilat Expand Strategic Partnership with the Selection of Gilat's SkyEdge IV Platform for SES-17

o	Gilat Announces Launch of SkyEdge IV, Next Generation SATCOM Ground System, Aiming to Capture a Leading Position of the Multibillion-Dollar Emerging VHTS Market Opportunity

o	Gilat and Intelsat Expand Their Strategic Partnership in Commercial Aviation

o	Gilat Captures Greater Maritime Market Share in New Deal with Eurasian Satellite Service Provider

o	Leading Mobile Operator in Mexico Extends 4G Cellular Backhaul Recurring Revenue Managed Services Project with Gilat

o	Tier-1 Mobile Network Carrier in Japan Expanding Their 4G Cellular Network with Gilat’s Backhaul over Satellite

o	One of World’s Largest MNOs to Deploy Gilat’s 4G Cellular Backhaul over Satellite Technology

o	Gilat Signs Multi-Million Dollar Deal to Modernize and Expand Satellite Communications in Eurasia for Multiple Applications

o	Tier-1 US Global Military Terminal Provider Places Order of Over $5M with Gilat for Solid State Amplifiers

o	Africa’s Largest Satellite Cellular Backhaul Network Extends Coverage with Gilat’s Technology to a Dozen Countries in Africa

Conference Call Details

Gilat’s management will discuss its fourth quarter and full year 2021 results and business achievements and participate in a question and answer session:

Date:	Tuesday, February 15, 2022
Start:	09:30 AM EST / 16:30 IST
Dial-in:	US: 1-866-744-5399
	International: (+972) 3-918-0610

A simultaneous webcast of the conference call will be available on the Gilat website at www.gilat.com and through this link: https://veidan.activetrail.biz/gilatq4-2021

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

Page 3

Unaudited Results

The attached summary unaudited financial statements represent the most current information available to management. Audited results will be reported in our annual report on Form 20-F.

Non-GAAP Measures

The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance. Non-GAAP financial measures mainly exclude the effect of stock based compensation, amortization of purchased intangibles, lease incentive amortization, litigation expenses, income related to trade secrets claims, restructuring and reorganization costs, merger, acquisition and related litigation expense (income), impairment of held for sale assets, and one-time changes of deferred tax assets.

Adjusted EBITDA is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's Operating income and Adjusted EBITDA is presented in the attached summary financial statements.

Non-GAAP presentations of net income, operating income, Adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity.

About Gilat

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With 30 years of experience, we design and manufacture cutting-edge ground segment equipment, and provide comprehensive solutions and end-to-end services, powered by our innovative technology. Delivering high value competitive solutions, our portfolio comprises of a cloud based VSAT network platform, high-speed modems, high performance on-the-move antennas and high efficiency, high power Solid-State Amplifiers (SSPA) and Block Upconverters (BUC).

Gilat’s comprehensive solutions support multiple applications with a full portfolio of products to address key applications including broadband access, Cellular Backhaul, enterprise, in-flight connectivity, maritime, trains, defense and public safety, all while meeting the most stringent service level requirements. Gilat controlling shareholders are the FIMI Private Equity Funds. For more information, please visit: www.gilat.com

Page 4

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, risks associated with the outbreak and global spread of the coronavirus (COVID-19) pandemic; changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:

Gilat Satellite Networks

Doreet Oren, Senior Director Corporate Communications

DoreetO@gilat.com

Ehud Helft

GK Investor & Public Relations

gilat@gkir.com

+1 212 378 8040

Page 5

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and per share data)

	Three months ended					Twelve months ended
	December 31,					December 31,
	2021		2020			2021			2020
	Unaudited					Unaudited			Audited

Revenues	$	67,271	$	42,627		$	218,818		$	165,885
Cost of revenues		42,328		29,329			147,198			124,670

Gross profit		24,943		13,298			71,620			41,215

Research and development expenses		9,357		7,474			33,031			27,689
Less - grants		905		454			1,695			1,386
Research and development expenses, net		8,452		7,020			31,336			26,303
Selling and marketing expenses		5,685		4,534			21,512			16,871
General and administrative expenses		4,545		3,794			15,587			14,063
Merger, acquisition and related litigation expenses (income), net		-		(64,782	)		-			(53,633	)
Impairment of held for sale asset		651		-			651			-

Total operating expenses (income)		19,333		(49,434	)		69,086			3,604

Operating income		5,610		62,732			2,534			37,611

Financial expenses, net		264		192			1,722			1,907

Income before taxes on income		5,346		62,540			812			35,704

Taxes on income		2,969		98			3,492			793

Net income (loss)	$	2,377	$	62,442		$	(2,680	)	$	34,911

Basic and Diluted earnings (loss) per share	$	0.04	$	1.12		$	(0.05	)	$	0.63

Weighted average number of shares used in computing earnings (loss) per share
Basic		56,539,237		55,545,654			56,401,074			55,516,113
Diluted		56,627,907		55,815,099			56,401,074			55,583,474

Page 6

GILAT SATELLITE NETWORKS LTD.

RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS

FOR COMPARATIVE PURPOSES

U.S. dollars in thousands (except share and per share data)

	Three months ended							Three months ended
	December 31, 2021							December 31, 2020
	GAAP		Adjustments (1)			Non-GAAP		GAAP			Adjustments (1)			Non-GAAP
	Unaudited							Unaudited

Gross profit	$	24,943		71		$	25,014	$	13,298			42		$	13,340
Operating expenses (income)		19,333		(1,147	)		18,186		(49,434	)		64,389			14,955
Operating income (loss)		5,610		1,218			6,828		62,732			(64,347	)		(1,615	)
Income (loss) before taxes on income		5,346		1,218			6,564		62,540			(64,347	)		(1,807	)
Net income (loss)	$	2,377		3,517		$	5,894	$	62,442			(64,347	)	$	(1,905	)

Earnings (loss) per share (basic and diluted)	$	0.04		0.06		$	0.10	$	1.12		$	(1.15	)	$	(0.03	)

Weighted average number of shares used in
computing earnings per share
Basic		56,539,237					56,539,237		55,545,654						55,545,654
Diluted		56,627,907					56,928,169		55,815,099						55,545,654

(1) Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions, trade secrets and other litigation expenses, merger, acquisition and related litigation expenses (income), net , impairment of held for sale asset and one-time changes to deferred tax assets.

	Three months ended		Three months ended
	December 31, 2021		December 31, 2020
	Unaudited		Unaudited

GAAP net income	$	2,377	$	62,442

Gross profit
Non-cash stock-based compensation expenses		66		39
Amortization of intangible assets related to acquisition transactions		5		3
		71		42
Operating expenses
Non-cash stock-based compensation expenses		445		254
Amortization of intangible assets related to acquisition transactions		51		54
Merger, acquisition and related litigation expenses (income), net		-		(64,782	)
Impairment of held for sale asset		651		-
Trade secrets and other litigation expenses		-		85
		1,147		(64,389	)

One-time changes to deferred tax assets		2,299		-

Non-GAAP net income (loss)	$	5,894	$	(1,905	)

Page 7

GILAT SATELLITE NETWORKS LTD.

RECONCILIATION BETWEEN GAAP AND NON-GAAP STATEMENTS OF OPERATIONS

FOR COMPARATIVE PURPOSES

U.S. dollars in thousands (except share and per share data)

	Twelve months ended								Twelve months ended
	December 31, 2021								December 31, 2020
	GAAP			Adjustments (1)			Non-GAAP		GAAP		Adjustments (1)			Non-GAAP
	Unaudited								Audited		Unaudited

Gross profit	$	71,620		$	297		$	71,917	$	41,215	$	186		$	41,401
Operating expenses		69,086			(1,882	)		67,204		3,604		51,502			55,106
Operating income (loss)		2,534			2,179			4,713		37,611		(51,316	)		(13,705	)
Income (loss) before taxes on income		812			2,179			2,991		35,704		(51,316	)		(15,612	)
Net income (loss)		(2,680	)		4,478			1,798		34,911		(51,316	)		(16,405	)

Earnings (loss) per share (basic and diluted)	$	(0.05	)	$	0.08		$	0.03	$	0.63	$	(0.93	)	$	(0.30	)

Weighted average number of shares used in
computing earnings per share
Basic		56,401,074						56,401,074		55,516,113					55,516,113
Diluted		56,401,074						56,878,852		55,583,474					55,516,113

(1) Adjustments reflect the effect of non-cash stock-based compensation as per ASC 718, amortization of intangible assets related to shares acquisition transactions, trade secrets and other litigation expenses, merger, acquisition and related litigation expenses (income), net, impairment of held for sale asset, restructuring and re-organization costs and one-time changes to deferred tax assets.

	Twelve months ended			Twelve months ended
	December 31, 2021			December 31, 2020
	Unaudited			Unaudited

GAAP net income (loss)	$	(2,680	)	$	34,911

Gross profit
Non-cash stock-based compensation expenses		277			166
Amortization of intangible assets related to acquisition transactions		20			20
		297			186
Operating expenses
Non-cash stock-based compensation expenses		1,029			1,114
Amortization of intangible assets related to acquisition transactions		202			204
Merger, acquisition and related litigation expenses (income), net		-			(53,633	)
Impairment of held for sale asset		651			-
Trade secrets and other litigation expenses		-			96
Restructuring and re-organization costs		-			717
		1,882			(51,502	)

One-time changes to deferred tax assets		2,299			-

Non-GAAP net income (loss)	$	1,798		$	(16,405	)

Page 8

GILAT SATELLITE NETWORKS LTD.

SUPPLEMENTAL INFORMATION

U.S. dollars in thousands

ADJUSTED EBITDA:

	Three months ended					Twelve months ended
	December 31,					December 31,
	2021		2020			2021		2020
	Unaudited					Unaudited

GAAP operating profit	$	5,610	$	62,732		$	2,534	$	37,611
Add:
Non-cash stock-based compensation expenses		511		293			1,306		1,280
Trade secrets and other litigation expenses		-		85			-		96
Restructuring and re-organization costs		-		-			-		717
Merger, acquisition and related litigation expenses (income), net		-		(64,782	)		-		(53,633	)
Impairment of held for sale asset		651		-			651		-
Depreciation and amortization (*)		3,848		2,729			11,214		10,653

Adjusted EBITDA	$	10,620	$	1,057		$	15,705	$	(3,276	)

(*) Including amortization of lease incentive

SEGMENT REVENUE:

	Three months ended				Twelve months ended
	December 31,				December 31,
	2021		2020		2021		2020
	Unaudited				Unaudited		Audited

Fixed Networks	$	36,994	$	25,085	$	115,449	$	92,671
Mobility Solutions		24,988		11,751		77,614		54,169
Terrestrial Infrastructure Projects		5,289		5,791		25,755		19,045

Total revenue	$	67,271	$	42,627	$	218,818	$	165,885

Page 9

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	December 31,		December 31,
	2021		2020
	Unaudited		Audited

ASSETS

CURRENT ASSETS:
Cash and cash equivalents	$	81,859	$	88,754
Short-term deposits		2,159		-
Restricted cash		2,592		27,162
Trade receivables, net		38,744		27,976
Contract assets		24,220		41,573
Inventories		28,432		31,304
Other current assets		14,607		16,637
Held for sale asset		4,587		-

Total current assets		197,200		233,406

LONG-TERM ASSETS:
Restricted cash		12		42
Severance pay funds		6,795		6,665
Deferred taxes		17,551		19,295
Operating lease right-of-use assets		4,478		4,879
Other long term receivables		10,456		7,797

Total long-term assets		39,292		38,678

PROPERTY AND EQUIPMENT, NET		72,391		77,172

INTANGIBLE ASSETS, NET		640		1,082

GOODWILL		43,468		43,468

TOTAL ASSETS	$	352,991	$	393,806

Page 10

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS (Cont.)

U.S. dollars in thousands

	December 31,			December 31,
	2021			2020
	Unaudited			Audited

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Current maturities of long-term loans	$	-		$	4,000
Trade payables		19,776			20,487
Accrued expenses		49,202			46,387
Advances from customers and deferred revenues		25,472			26,244
Operating lease liabilities		1,818			1,911
Dividend payable		-			35,003
Other current liabilities		13,339			13,322

Total current liabilities		109,607			147,354

LONG-TERM LIABILITIES:
Accrued severance pay		7,292			7,136
Long-term advances from customers		1,595			1,890
Operating lease liabilities		2,283			2,985
Other long-term liabilities		120			631

Total long-term liabilities		11,290			12,642

SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 0.2 par value		2,706			2,647
Additional paid-in capital		929,871			928,626
Accumulated other comprehensive loss		(6,357	)		(6,017	)
Accumulated deficit		(694,126	)		(691,446	)

Total shareholders' equity		232,094			233,810

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	352,991		$	393,806

Page 11

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Three months ended						Twelve months ended
	December 31,						December 31,
	2021			2020			2021			2020
	Unaudited						Unaudited			Audited
Cash flows from operating activities:
Net income (loss)	$	2,377		$	62,442		$	(2,680	)	$	34,911
Adjustments required to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization		3,789			2,534			10,991			10,291
Capital loss from disposal of property and equipment and impairment of held for sale asset		651			147			651			181
Stock-based compensation of options		511			293			1,306			1,282
Accrued severance pay, net		203			205			26			242
Deferred taxes, net		1,694			(966	)		1,647			(867	)
Decrease (increase) in trade receivables, net		(9,032	)		(1,520	)		(10,789	)		19,332
Decrease (increase) in contract assets		249			(3,471	)		17,353			(17,875	)
Decrease (increase) in other assets (including short-term, long-term
and deferred charges)		5,238			1,021			(247	)		8,941
Decrease (increase) in inventories		2,796			100			2,449			(5,050	)
Increase (decrease) in trade payables		2,007			3,178			(712	)		(157	)
Increase (decrease) in accrued expenses		861			(7,356	)		2,012			(7,549	)
Increase (decrease) in advance from customers and deferred revenue		(5,491	)		2,218			(1,122	)		(1,898	)
Increase (decrease) in current and non current liabilities		(681	)		1,596			(1,982	)		1,376
Net cash provided by operating activities		5,172			60,421			18,903			43,160

Cash flows from investing activities:
Purchase of property and equipment		(3,909	)		(1,976	)		(8,933	)		(4,716	)
Investment in short term deposits		(2,159	)		-			(2,159	)		-
Net cash used in investing activities		(6,068	)		(1,976	)		(11,092	)		(4,716	)

Cash flows from financing activities:
Dividend payment		-			(19,999	)		(35,003	)		(19,999	)
Repayment of long-term loans		-			-			(4,000	)		(4,096	)
Net cash used in financing activities		-			(19,999	)		(39,003	)		(24,095	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash		(51	)		270			(303	)		(360	)

Increase (decrease) in cash, cash equivalents and restricted cash		(947	)		38,716			(31,495	)		13,989

Cash, cash equivalents and restricted cash at the beginning of the period		85,410			77,242			115,958			101,969

Cash, cash equivalents and restricted cash at the end of the period	$	84,463		$	115,958		$	84,463		$	115,958

Page 12

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.