Ability’s New Directors and Disappointing Results
18 May, 2017
Revenues for the full-year 2016 were $16.5 million compared with $52.2 million for 2015. The company warns: "substantial doubt about its ability to continue"
Ability’s stock price in NASDAQ rocks restlessly between hopes and despair. Yesterday, when the company announced new director, the trade price jumped from $0.68 to approximately $0.9. But the disappointing annual report dropped it back to $0.7. It all started in April 2017 with a group resignation of five independent directors: Amnon Dick, Efraim Halevy, Amos Malka, Meir Moshe and Shalom Singer, who left the company following disagreements with the founders regarding Ability’s financial operations. Their resignation dropped the stock price from $1.2 to $0.7.
This week Israeli provider of tactical communications intercepting solutions, Ability Inc. (NASDAQ: ABIL) has appointed Levi Ilsar as Chairman of the Board. Levi Ilsar is an independent financial and business consultant to private and public companies with more than four decades of accounting and finance experience including capital raising, public offerings, corporate mergers and acquisitions, as well as treasury operations and purchasing and budgetary monitoring. He served as a member of the board of directors of U. Dori Engineering Works, a company listed on the Tel Aviv Stock Exchange. Beside Ilsar, Ability has also appointed Brigadier General (Ret.) Eli Polak and Nimrod Schwartz as an independent directors.
Chairman from the Army
During his military career he served as a commander and as an intelligence officer in various operational units in combat zones and during war time. Brigadier General Polak brings extensive experience with technology-rich intelligence and information gathering in complex and ever-changing work environments. Nimrod Schwartz is an entrepreneur and investor and has served as a director for many startups, some of which have gone public or have been acquired by leading multinational companies.
At first, the investors loved the newcomers, but when the annual report was published, the trade price sunk again. The numbers are gloomy with a small beam of hope: Revenues for the full-year 2016 were $16.5 million compared with $52.2 million for 2015. Revenues for the fourth quarter of 2016 were $2.5 million compared with $2.0 million for the fourth quarter of 2015. Revenues include the contribution from the first ULIN sale, which amounted to approximately $1.3 million in the fourth quarter of 2016. ULIN is the most advanced product of Ability. It acronyms Ultimate Interception, and is a SaaS interception system with voice, text and Geo location capabilities.
Cash and cash equivalents at December 31, 2016 totaled $11.8 million compared to $25.8 million as of December 31, 2015. The company added a warning to its report: “Due to the significant decline in revenues and an increase in legal and professional services fees, the Company has suffered losses from operations, and has a net capital deficiency that, along with other matters, raises a substantial doubt about its ability to continue as a going concern.”