Maris-Tech Ltd. (Nasdaq: MTEK) (“Maris-Tech” or the “Company”), a
B2B provider of edge computing artificial intelligence (“AI”)
accelerated video solutions for edge platforms, today issued the
following letter to its shareholders from the Company’s Chief
Executive Officer, Mr. Israel Bar.
Dear Fellow Shareholders,
After about a year and a half since we completed
our IPO, I would like to update you on certain business
developments of the Company, and to provide a revenue forecast for
2023.
Since the completion of our IPO, we have focused
on video-based edge computing solutions, which we consider to be
one of the most rapidly growing markets. Our “Maris Edge,” for
remote platforms, provides AI acceleration capabilities for
customers’ AI applications.
We provide our solutions either as original
equipment manufacturer (“OEM”) modules to be integrated within our
customer’s platforms or as final products within enclosure serving
a variety of applications.
In July 2022, we launched our new flagship
product - our Jupiter-AI, a high-end multiple-stream video platform
with AI acceleration. Since then, we have also created a range of
derivatives for this platform as well as launching new final
defense and homeland security (“HLS”) products.
In January 2023, we began the development of our
Uranus-AI, our next generation ultra-HD, high-end multiple-stream
video platform with AI acceleration, as well as our Callisto, a
final product based on our Uranus-AI specially designed for safe
city applications. Both were launched in the third quarter of
2023.
The Jupiter-AI product line has already been
presented at exhibitions, and is creating a wave of enthusiasm
among potential customers all over the world. We have also received
inquiries from new potential customers, some of which are large
international companies. As a result of our marketing activities,
we have already received orders and delivered the Jupiter-AI OEM
platform as well as its associated final products to new
customers.
During the past year, we have managed to
penetrate what we believe to be the largest and most important
territories in the world and our products have been sold in the
U.S., Australia, Western Europe, China, Turkey, India, South Africa
and South Korea.
Also, during the past year, we entered into
several strategic cooperation agreements with international
companies (including Hailo Technologies Ltd., Art of logic Pty
Ltd., Precision Electronics Ltd., IMCA Electronics and Information
Industry and Trade Inc.), which yielded orders from new customers
around the world (including an order received from a partner in
Australia for the Callisto for $7.5 million in products).
Now, we are addressing our marketing efforts
mainly towards the defense, HLS, civilian, safe cities and new
space markets.
We foresee significant business opportunities in
the new space market. For example, in June 2023, we entered into an
international collaboration agreement with Sidus Space Inc., a U.S.
company, to develop video-based edge computing solutions for
nanosatellites, and equally as impressive, we received funding from
the Israeli Innovation Authority in cooperation with Space Florida
for this project.
Our products address a wide range of
applications such as: unmanned aerial vehicles, aircraft, armored
vehicles, indoor and outdoor drones, unmanned ground vehicles, nano
satellites, military dogs, autonomous vehicles, sniper sights,
infantry soldiers, missiles, and unmanned sea vehicles.
Operationally, since day-one, we have been
dedicated to the recruitment of qualified and experienced
personnel. In addition to our highly experienced management team
with extensive knowledge of the field, we announced that Mr. Nir
Ben Moshe, a former director of security for the Israel defense
establishment (Ministry of Defense, industries, manufacturers, and
R&D organizations) and Mr. Leslie G. Litwin, a managing
director and founder of Zilica Limited, industry-leading video
encoders and decoders and a business partner of the Company for
many years, joined the our Advisory Board.
Revenue Forecast for 2023
Despite the ambition of our management to make
timely deliveries of products, delivery dates are determined by a
variety of factors, including the volume of orders placed by our
customers, and the negotiations with us during the supply period
regarding specifications, volume of orders, and other factors.
Since in most cases these are large customers with changing needs
over time, we do make tremendous effort to address the needs of our
customers. Concurrently, we are faced with the challenges that
still exist in the market for component parts, despite our efforts
to minimize them. This is an important reminder of the lingering
effects of the COVID-19 pandemic on the supply chain. These
remaining supply chain deficiencies may delay the complete delivery
of our pending orders for up to several months.
Our revenues for the six-month period ended June
30, 2023 were approximately $474,000.
From July 1, 2023 through September 30, 2023, we
delivered additional products in the total amount of approximately
$1.7 million, resulting in aggregate delivered products from
January 1, 2023 to date of approximately $2.1 million.
In accordance with our forecast for 2023, based
both on orders received from our customers and on anticipated
orders, we believe our total revenues for the year ending December
31, 2023 will be in the range of approximately $3.7 to $4.2
million, an increase of approximately 48% to 68% compared to the
total revenues for the year ended December 31, 2022. This unaudited
preliminary financial information regarding our revenues in the for
the year ended December 31, 2023, is based upon our estimates and
subject to completion of our year-end financial results. Moreover,
this financial information has been prepared solely on the basis of
currently available information by, and is the responsibility of,
management. Our independent registered public accounting firm has
not audited, reviewed or performed any procedures with respect to
such preliminary estimates or the accounting treatment thereof and
does not express an opinion or any other form of assurance with
respect thereto. This preliminary financial information is not a
comprehensive statement of our financial results for this
period.
In addition, our backlog of orders as of
September 30, 2023 is approximately $9.4 million, an historic high
for us since our inception. We define backlog as the accumulation
of all pending orders with a later fulfillment date for which
revenue has not been recognized and we consider valid. Part of our
backlog is comprised of executed purchase orders from customers
with which we have had long-standing relationships and governmental
agencies. The increase in backlog and sales is a result of the
Company’s products reaching maturity and validation among our
customers. Our management estimates that such backlog and sales
will continue in the coming years. However, because revenue will
not be recognized until we have fulfilled our obligations to a
customer, there may be a significant amount of time between
executing an agreement or purchase order with a customer and
delivery of the product to the customer and revenue recognition. In
addition, backlog is not necessarily indicative of future
earnings.
We hope this provides some insight on how
much we’ve accomplished since our IPO and why we continue to
believe we provide optimal value for our shareholders, while
continuing to innovate at the highest level.
Thank you for your belief and support in
Maris-Tech Ltd.
Sincerely,
Israel Bar, CEO
Forward-Looking Statement
Disclaimer
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, that are intended to be covered by the “safe
harbor” created by those sections. Forward-looking statements,
which are based on certain assumptions and describe our future
plans, strategies and expectations, can generally be identified by
the use of forward-looking terms such as “believe,” “expect”,”
“may”, “should,” “could,” “seek, ” “intend, ” “plan, ” “goal, ”
“estimate, ” “anticipate” or other comparable terms. For example,
we are using forward-looking statements when we discuss our future
business opportunities and potential customers; our belief that
video-based edge computing solutions is one of the most rapidly
growing markets; our belief that the Company’s revenues for the
year ending December 31, 2023 will be in the range of approximately
$3.7 to $4.2 million and our belief that we provide optimal value
for our shareholders. Forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they are based only on our current beliefs, expectations and
assumptions regarding the future of our business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict
and many of which are outside of our control. Our actual results
and financial condition may differ materially from those indicated
in the forward-looking statements. Therefore, you should not rely
on any of these forward-looking statements. Important factors that
could cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following: our ability to successfully
market our products and services, including in the United States;
the acceptance of our products and services by customers; our
continued ability to pay operating costs and ability to meet demand
for our products and services; the amount and nature of competition
from other security and telecom products and services; the effects
of changes in the cybersecurity and telecom markets; our ability to
successfully develop new products and services; our success
establishing and maintaining collaborative, strategic alliance
agreements, licensing and supplier arrangements; our ability to
comply with applicable regulations; and the other risks and
uncertainties described in the Annual Report on Form 20-F for the
year ended December 31, 2022, filed with the SEC on March 6, 2023,
and our other filings with the SEC. We undertake no obligation to
publicly update any forward-looking statement, whether written or
oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
Investor Relations:
Nir Bussy, CFO
Tel: +972-72-2424022
Nir@maris-tech.com
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