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spk01: Good day and thank you for standing by. Welcome to the Actelis Network's full year 2022 earnings conference call. All participants are in a listen-only mode. As a reminder, this call is being recorded. Joining us today from Actelis are Tuvia Barlev, CEO, and Yoav Efron, CFO. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, including but not limited to statements of expectations, future events or future financial performance. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the risk factors section of our final prospectus filed pursuant to Rule 424 with the SEC. All non-GAAP financial measures referenced in today's call are reconciled in our earnings press release to the most directly comparable GAAP measure. This call also contains time-sensitive information that is accurate only as of the date of this broadcast, March 29, 2023. Finally, I would like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on our investor relations website at ir.actelis.com. I will now turn the call over to our CEO, Tuvia Bailiv. Tuvia?
spk04: Thank you, Operator, and welcome, everyone, and thank you for joining us today on our earnings call. I'll begin today's call with a brief overview of our business, then discuss our recent operational updates and financial highlights for the full year, ended December 31st, 2022. Then I'll turn the call over to Actelis CFO Yoav Efron to discuss our financial results in detail. And after that, I will share some closing remarks. At Actelis, our mission is to enable rapid deployment of fast, cyber-hardened, cost-effective IoT networking over wide areas such as cities, campuses, industrial parks, airports, military bases, roads, and rail systems. Our networking solutions use a hybrid combination of newly deployed fiber infrastructure and existing copper and coaxial lines in the ground that we are able to enhance to fiber-like performance to significantly cut costs and speed up deployment of such secure IoT networks, accelerating IoT projects around the world and making them more affordable and predictable to plan and implement, even in hard-to-reach locations. We achieved that by applying our unique signal processing software package to existing infrastructure lines that are readily available in the billions. And by doing so, making the existing lines deliver fast, secure, reliable data to IoT devices. Our software packages also offer smart management of large IoT networks and automation of networking services across wide areas such as cities, industrial parks, airports, and highway systems, which saves our customers much headache and manual labor. Our software package implements our Triple Shield end-to-end network security package to protect critical IoT data. These solutions have been tested for performance and security by the U.S. Department of Defense laboratories, approved for deployment, and already deployed with U.S. federal government and U.S. defense forces, as well as with various IoT operators around the world for mission-critical applications. And just recently, we've completed our development and started the certification process for federal information processing standards, FIPS capabilities, making the operating systems in our products encryption-hardened per U.S. Department of Defense requirements. Actelis has continued to invest in generating sales growth in all of our IoT markets during 2022. We are creating company awareness all around the world, and are building strong strategic channel partnerships to distribute our cutting-edge products and services. The necessary transition of our focus from slower-growing telecommunications markets to the IoT markets sets our company up for long-term sustainable growth. And while some of these efforts will show more visibility over the coming years, I'm happy to report that we were able to increase our delivery of sales to IoT customers by as much as 31% for the full year ended December 31, 2022. On that note, I'd like to highlight and update you on some of the important customer milestones we've announced since our IPO in May last year. In August 2022, we announced a contract win with a world-leading partner specializing in airport operations management systems operating over 200 countries. Only recently, we were allowed to mention that this partner is CETA, the largest global provider of airport management infrastructure. We have received over $500,000 in orders as part of a three-year contract that aims at eventually modernizing digitizing operations in hundreds of airports worldwide, and we continue to receive new orders. Thus far, our solutions have been deployed in 39 airports throughout North America, Europe, and Asia via this engagement. We also saw an acceleration of customer growth of cities choosing our solution to modernize and update their transportation systems. We were chosen by the city of San Jose, Silicon Valley's tech capital, and are deploying our solutions for the city as part of a multi-year citywide smart traffic infrastructure upgrade to modernize and extend state-of-the-art intelligent transportation systems, ITS, over hybrid fiber-copper networks. The total city budget is estimated to be $3 million. We also announced our selection by the city of Eugene, the second largest city in Oregon, As part of the traffic modernization project, Actelis' hybrid fiber-copper solutions are integrated with new traffic controllers to manage traffic flow through various IoT devices, including cameras and radar sensors. We also reported a win of a major deployment project with an energy company providing power to the capital of one of Europe's largest countries. In addition, we won multiple cities and other organizations that were not announced and keep expanding our install base that has reached hundreds of cities around the world. Demonstrating the various use cases of our products across different market segments, Actela solutions were selected by Northern Ireland Railways, a division of TransLink, for a large-scale safety-critical project to enable high-speed connectivity delivering data to signaling centers. Our solutions were chosen for their high-speed media flexibility and reliability. With the addition of North Ireland Railways, As a new customer, we continue to enable new applications for both passengers and freight railway systems around the globe in Canada, Italy, Japan, Switzerland, and the United States. We also successfully conducted the first trial of our new GL800, Gigalight 800, a multi-gigabit encrypted platform in a real-life environment of a rail application. We're very excited about the benefit of Gigalight 800 platform and what it will bring to all of our customers when it's formally released, expected in the second quarter of 2023. Our efforts with the U.S. government and related sales partner have also gained traction throughout the year into 2023. We've partnered with Norseman Defense Technologies as our latest U.S. government focus channel partner, adding to the existing network of partners. And towards the end of the year, we entered the final phase of deployment of cyber-hardened, fiber-grade networking solutions to on-base facilities of various divisions of the United States military and extending existing infrastructure. An important driver for business in our space is our partner network. We have focused on expanding our global partner network in 2022 and will continue to do so in 2023. Our win with CETA alone is introducing our solutions to CETA partners in tens of countries. Let me now give you some updates on the operational front. We have been busy examining potential opportunities for inorganic growth, as we mentioned during our IPO, making this one of our growth engines. Our focus has been on the adjacent areas of cyber defense capabilities related to physical elements involved in the IoT networks with the intent to enhance our offerings and introduce to the market a novel concept of cyber-aware networking. and I'm happy to report that we're making progress. The potential targets we're looking at will complement and extend our cybersecurity offering and will fit squarely into our go-to-market strategy, being able to introduce such capabilities onto our vast install base in 30-plus countries, and moreover, adding recurring software and services sales to our model. We will tell you more about it as soon as we can. As we continue to grow our sales efforts, we have bolstered our global sales team. We have appointed Saha Givati as Regional Vice President of Asia Pacific to lead the company's business development and channel partner expansion efforts in the region and further strengthen our global footprint. Saha also has over 20 years of experience in networking and cybersecurity. The hire of Sahi, as well as other additions to our sales team during the year, are testimonials of our commitment to invest in sales and marketing to take advantage of the rapidly expanding IoT market and to advance into the cyber safety space for IoT networking. On a different note, Jan Ruderman, former Chief Revenue Officer of North America, left the company to pursue other endeavors. As a public company, we also look to protect our investors and maximize shareholder value. Therefore, we have entered into a service agreement with shareholder intelligence services to review and analyze the trading patterns of the company's common stock, particularly associated with possible naked short-selling of the company's stock. With that, Axelis joins a growing number of micro-cap companies examining anomalies in trading patterns of their stock to investigate potentially illegal short-selling activities. We've also filed with the SEC a reverse stock split expecting that the reverse stock split, which was approved by our board of directors and the necessary voting power of the company, will increase the market price per share of the company's common stock, bringing the Octelis share price into compliance with the Nasdaq Capital Market's $1 minimum bid price requirement. Moving now on to financial highlights. As I mentioned earlier, during the full year of 2022, we grew sales delivery to IoT customers by 31% compared to 2021, offsetting a decline in telecom sales as our strategic shift to IoT continues. As a result, our revenues increased 3.3% year-over-year to $8.8 million for the full year ended December 31, 2022, despite the challenging supply chain issues and other challenges that global economies experienced this year. And as such, during 2022, we were able to deliver 85% of remaining open orders from previous year and improved lead times for delivery significantly within 10% over our pre-COVID-19 levels. Our gross margin remained consistent at 47% for the full year, despite pressure from semiconductor and electronic component lead times and purchase price variance. With that, I will turn the call over to our CFO, Yoav Efron, to discuss financial results in greater detail. Yoav?
spk02: Thank you, Tuvia. Before I provide an overview of our financial performance for the full year of 2022, I'd like to provide a brief summary of our balance sheet. The company reported a balance sheet with $14.8 million of total assets, compared to $4.7 million as of December 31, 2021. $11.5 million of total liabilities compared to $24.3 million as of December 31, 2021, and $3.3 million of shareholders' equity compared to a capital deficiency of a negative $19.6 million as of December 31, 2021. Turning now to our financial results for the full year 2022, ended December 31, 2022. Revenues for the full year amounted to $8.8 million compared to $8.5 million for the year ended December 31, 2021. The increase from the corresponding period was primarily attributed to an increase of $626,000 of revenues generated from Europe, the Middle East, and Africa, offset by a decrease of $340,000 in revenue generated from North America and Asia Pacific. The decline was primarily attributed to telecom customers' revenue. Cost of revenue for the full year ended December 31, 2022 amounted to $4.7 million compared to $4.6 million for the year ended December 31, 2021. Gross profit for the full year ended December 31, 2022, was $4.1 million, or 47% of revenue, compared to $4.0 million, or 46% of revenue, for the full year ended December 31, 2021. As mentioned earlier, we were able to slightly grow gross margin despite component cost pressures. Research and development expenses for the full year ended December 31, 2022, amounted to $2.8 million compared to $2.4 million for the year ended December 31, 2021. The increase was mainly due to an increase in payroll expense for research and development personnel in the amount of $256,000, and an increase in professional services related to research and development in the amount of $64,000. Sales and marketing expenses for the full year ended December 31, 2022 amounted to $3.3 million compared to $2.2 million for the year ended December 31, 2021. The increase from the corresponding period was mainly a result of our increased investment in sales and marketing, including imperil expenses for additional personnel in the amount of $595,000 and increase in commission expenses in the amount of $249,000. We also had an increase in travel expenses in the amount of $181,000. General and administrative expenses for the full year ended December 31, 2022, amounted to $4.2 million. compared to $1.2 million for the year ended December 31, 2021. This increase was mainly due to payroll, insurance expenses, and professional services expenses in connection with the IPO completed in May 2022 and our status as a public company thereafter. Operating loss for the full year ended December 31, 2022 was $6.1 million compared to an operating loss of $1.9 million for the year ended December 31, 2021. The increase was mainly due to higher expenses associated primarily with investment in sales and marketing and expenses attributed to the IPO completed in May 2022 and costs associated with our status as a public company thereafter. Financial expenses net for the full year ended December 31, 2022 was 4.9 million, including 0.8 million interest expense compared to 3.4 million, including 0.7 million interest expense for the year ended December 31, 2021. This increase during the year ended December 31, 2022 is due to us incurring financial expenses in connection with increases in fair value of various financial instruments, such as convertible loan, note, and warrants in the amount of $4.5 million up until the IPO when such instruments converted to equity. Additionally, during the year ended December 31, 2022, we had income in the amount of $0.5 million from exchange rate differences, Since all convertible loans and nearly all warrants we had outstanding converted to equity in connection with the IPO, we do not expect additional material financial expenses going forward for these loans and warrants. Net loss for the full year ended December 31, 2022, was $11 million, compared to a net loss of $5.3 million for the year ended December 31, 2021. This increase was primarily due to increase in financial expenses resulting from the increases in fair value of various financial instruments, as well as an increase in operating expenses mainly due to investment in sales and marketing, as well as expenses attributed to our IPO in May 2022 and our status as a public company thereafter. Adjusted EBITDA loss, a non-GAAP measurement of operating performance reconciled below to net loss for the full year ended December 31, 2022, was $4.1 million compared to $1.1 million in the comparable year-ago period. This was primarily due to increase in operating expenses. That completes my summary. I now would like to turn the call back over to Tuvia for closing comments. Tuvia?
spk04: Thank you, Yoav. Following our IPO in May of 2022, we've been increasing our market presence and impact in many of our verticals. Our investments in sales and marketing teams have already paid dividends and we're making significant progress in penetrating the international IoT markets. The recently announced additions to our sales team will help us to further capture market share in the growing IoT markets. Despite macroeconomic headwinds affecting components market during 2022, we've successfully maintained margins and quality of service while closing the gaps in our backlog. I'm pleased with the strong interest we're gaining, excited by the prospects of our company resulting from US federal, state, and local agencies, as well as airports, transportation, and utility companies, increasing their demand for IoT digitization. As the offering enables highly efficient use of existing infrastructure, it meets their needs to move rapidly, grow, and conserve budget at the same time. We're looking forward to further assisting our customers extend and do more with their budgets, moving faster towards a digital world. I want to thank our dedicated and growing team for their ongoing contributions and our customer community for their continued partnerships. Our goal is to make you successful. I also want to thank our investors for their continued support. Thank you for joining us today. It is truly an exciting time for Actelis. Operator?
spk01: Thank you for joining us today for Actelis Network's Fiscal Full Year 2022 Earnings Conference Call. You may now disconnect. Thank you. you Thank you. Thank you. Thank you. Bye. Thank you. Good day and thank you for standing by. Welcome to the Actelis Network's full year 2022 earnings conference call. All participants are in a listen-only mode. As a reminder, this call is being recorded. Joining us today from Actelis are Tuvia Barlev, CEO, and Yoav Efron, CFO. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, including but not limited to statements of expectations, future events or future financial performance. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the risk factors section of our final prospectus filed pursuant to Rule 424 with the SEC. All non-GAAP financial measures referenced in today's call are reconciled in our earnings press release to the most directly comparable GAAP measure. This call also contains time-sensitive information that is accurate only as of the date of this broadcast, March 29, 2023. Finally, I would like to remind everyone that this conference call is being webcast, and a recording will be made available for replay on our investor relations website at ir.actelis.com. I will now turn the call over to our CEO, Tuvia Bailiv. Tuvia?
spk04: Thank you, Operator, and welcome, everyone, and thank you for joining us today on our earnings call. I'll begin today's call with a brief overview of our business, then discuss our recent operational updates and financial highlights for the full year ended December 31st, 2022. Then I'll turn the call over to Actelis CFO Yoav Efron to discuss our financial results in detail. And after that, I will share some closing remarks. At Actelis, our mission is to enable rapid deployment of fast, cyber-hardened, cost-effective IoT networking over wide areas such as cities, campuses, industrial parks, airports, military bases, roads, and rail systems. Our networking solutions use a hybrid combination of newly deployed fiber infrastructure and existing copper and coaxial lines in the ground that we are able to enhance to fiber-like performance to significantly cut costs and speed up deployment of such secure IoT networks, accelerating IoT projects around the world and making them more affordable and predictable to plan and implement, even in hard-to-reach locations. We achieved that by applying our unique signal processing software package to existing infrastructure lines that are readily available in the billions. And by doing so, making the existing lines deliver fast, secure, reliable data to IoT devices. Our software packages also offer smart management of large IoT networks and automation of networking services across wide areas such as cities, industrial parks, airports, and highway systems which saves our customers much headache and manual labor. Our software package implements our Triple Shield end-to-end network security package to protect critical IoT data. These solutions have been tested for performance and security by the U.S. Department of Defense laboratories, approved for deployment, and already deployed with U.S. federal government and U.S. defense forces, as well as with various IoT operators around the world for mission-critical applications. And just recently, we've completed our development and started the certification process for federal information processing standards, FIPS capabilities, making the operating systems in our products encryption-hardened per U.S. Department of Defense requirements. Actelis has continued to invest in generating sales growth in all of our IoT markets during 2022. We are creating company awareness all around the world, and are building strong strategic channel partnerships to distribute our cutting-edge products and services. The necessary transition of our focus from slower-growing telecommunications markets to the IoT markets sets our company up for long-term sustainable growth. And while some of these efforts will show more visibility over the coming years, I'm happy to report that we were able to increase our delivery of sales to IoT customers by as much as 31% for the full year ended December 31, 2022. On that note, I'd like to highlight and update you on some of the important customer milestones we have announced since our IPO in May last year. In August 2022, we announced a contract win with a world-leading partner specializing in airport operations management systems operating over 200 countries. Only recently, we were allowed to mention that this partner is CETA, the largest global provider of airport management infrastructure. We have received over $500,000 in orders as part of a three-year contract that aims at eventually modernizing digitizing operations in hundreds of airports worldwide, and we continue to receive new orders. Thus far, our solutions have been deployed in 39 airports throughout North America, Europe, and Asia via this engagement. We also saw an acceleration of customer growth of cities choosing our solution to modernize and update their transportation systems. We were chosen by the city of San Jose, Silicon Valley's tech capital, and are deploying our solutions for the city as part of a multi-year city-wide smart traffic infrastructure upgrade to modernize and extend state-of-the-art intelligent transportation systems, ITS, over hybrid fiber-copper networks. The total city budget is estimated to be $3 million. We also announced our selection by the city of Eugene, the second largest city in Oregon, As part of the traffic modernization project, Actelis' hybrid fiber-copper solutions are integrated with new traffic controllers to manage traffic flow through various IoT devices, including cameras and radar sensors. We also reported a win of a major deployment project with an energy company providing power to the capital of one of Europe's largest countries. In addition, we won multiple cities and other organizations that were not announced and keep expanding our install base that has reached hundreds of cities around the world. Demonstrating the various use cases of our products across different market segments, Accela Solutions were selected by Northern Ireland Railways, a division of TransLink, for a large-scale safety-critical project to enable high-speed connectivity delivering data to signaling centers. Our solutions were chosen for their high-speed media flexibility and reliability. With the addition of North Ireland Railways, As a new customer, we continue to enable new applications for both passengers and freight railway systems around the globe in Canada, Italy, Japan, Switzerland, and the United States. We also successfully conducted the first trial of our new GL800, Gigalight 800, a multi-gigabit encrypted platform in a real-life environment of a rail application. We're very excited about the benefit of Gigalight 800 platform and what it will bring to all of our customers when it's formally released, expected in the second quarter of 2023. Our efforts with the U.S. government and related sales partner have also gained traction throughout the year into 2023. We've partnered with Norseman Defense Technologies as our latest U.S. government focus channel partner, adding to the existing network of partners. And towards the end of the year, we entered the final phase of deployment of cyber-hardened, fiber-grade networking solutions to on-base facilities of various divisions of the United States military and extending existing infrastructure. An important driver for business in our space is our partner network. We have focused on expanding our global partner network in 2022 and will continue to do so in 2023. Our win with CETA alone is introducing our solutions to CETA partners in tens of countries. Let me now give you some updates on the operational front. We have been busy examining potential opportunities for inorganic growth, as we mentioned during our IPO, making this one of our growth engines. Our focus has been on the adjacent areas of cyber defense capabilities related to physical elements involved in the IoT networks with the intent to enhance our offerings and introduce to the market a novel concept of cyber-aware networking. and I'm happy to report that we're making progress. The potential targets we're looking at will complement and extend our cybersecurity offering and will fit squarely into our go-to-market strategy, being able to introduce such capabilities onto our vast install base in 30-plus countries, and moreover, adding recurring software and services sales to our model. We will tell you more about it as soon as we can. As we continue to grow our sales efforts, we have bolstered our global sales team. We have appointed Saha Givati as Regional Vice President of Asia Pacific to lead the company's business development and channel partner expansion efforts in the region and further strengthen our global footprint. Saha also has over 20 years of experience in networking and cybersecurity. The hire of Sahi, as well as other additions to our sales team during the year, are testimonials of our commitment to invest in sales and marketing to take advantage of the rapidly expanding IoT market and to advance into the cyber safety space for IoT networking. On a different note, Jan Ruderman, former Chief Revenue Officer of North America, left the company to pursue other endeavors. As a public company, we also look to protect our investors and maximize shareholder value. Therefore, we have entered into a service agreement with shareholder intelligence services to review and analyze the trading patterns of the company's common stock, particularly associated with possible naked short-selling of the company's stock. With that, Actelis joins a growing number of micro-cap companies examining anomalies in trading patterns of their stock to investigate potentially illegal short-selling activities. We've also filed with the SEC a reverse stock split expecting that the reverse stock split, which was approved by our board of directors and the necessary voting power of the company, will increase the market price per share of the company's common stock, bringing the Octelis share price into compliance with the Nasdaq Capital Market's $1 minimum bid price requirement. Moving now on to financial highlights. As I mentioned earlier, during the full year of 2022, we grew sales delivery to IoT customers by 31% compared to 2021, offsetting a decline in telecom sales as our strategic shift to IoT continues. As a result, our revenues increased 3.3% year-over-year to $8.8 million for the full year ended December 31, 2022, despite the challenging supply chain issues and other challenges that global economies experienced this year. And as such, during 2022, we were able to deliver 85% of remaining open orders from previous year and improved lead times for delivery significantly within 10% of our pre-COVID-19 levels. Our gross margin remained consistent at 47% for the full year, despite pressure from semiconductor and electronic component lead times and purchase price variance. With that, I will turn the call over to our CFO, Yoav Efron, to discuss financial results in greater detail.
spk02: Yoav? Thank you, Tuvia. Before I provide an overview of our financial performance for the full year of 2022, I'd like to provide a brief summary of our balance sheet. The company reported a balance sheet with $14.8 million of total assets, compared to $4.7 million as of December 31, 2021. $11.5 million of total liabilities compared to $24.3 million as of December 31, 2021, and $3.3 million of shareholders' equity compared to a capital deficiency of a negative $19.6 million as of December 31, 2021. Turning now to our financial results for the full year 2022, ended December 31, 2022. Revenues for the full year amounted to $8.8 million, compared to $8.5 million for the year ended December 31, 2021. The increase from the corresponding period was primarily attributable to an increase of $626,000 of revenues generated from Europe, the Middle East, and Africa, offset by a decrease of $340,000 in revenue generated from North America and Asia Pacific. The decline was primarily attributed to telecom customers' revenue. Cost of revenue for the full year ended December 31, 2022 amounted to $4.7 million compared to $4.6 million for the year ended December 31, 2021. Gross profit for the full year ended December 31, 2022, was $4.1 million, or 47% of revenue, compared to $4.0 million, or 46% of revenue, for the full year ended December 31, 2021. As mentioned earlier, we were able to slightly grow gross margin despite component cost pressures. Research and development expenses for the full year ended December 31, 2022, amounted to $2.8 million compared to $2.4 million for the year ended December 31, 2021. The increase was mainly due to an increase in payroll expense for research and development personnel in the amount of $256,000 and an increase in professional services related to research and development in the amount of $64,000. Sales and marketing expenses for the full year ended December 31, 2022 amounted to $3.3 million compared to $2.2 million for the year ended December 31, 2021. The increase from the corresponding period was mainly a result of our increased investment in sales and marketing, including imperil expenses for additional personnel in the amount of $595,000 and increase in commission expenses in the amount of $249,000. We also had an increase in travel expenses in the amount of $181,000. General and administrative expenses for the full year ended December 31, 2022, amounted to $4.2 million. compared to $1.2 million for the year ended December 31, 2021. This increase was mainly due to payroll, insurance expenses, and professional services expenses in connection with the IPO completed in May 2022 and our status as a public company thereafter. Operating loss for the full year ended December 31, 2022 with $6.1 million compared to an operating loss of $1.9 million for the year ended December 31, 2021. The increase was mainly due to higher expenses associated primarily with investment in sales and marketing and expenses attributed to the IPO completed in May 2022 and costs associated with our status as a public company thereafter. Financial expenses net for the full year ended December 31, 2022 was 4.9 million, including 0.8 million interest expense compared to 3.4 million, including 0.7 million interest expense for the year ended December 31, 2021. This increase during the year ended December 31, 2022 is due to us incurring financial expenses in connection with increases in fair value of various financial instruments, such as convertible loan, note, and warrants in the amount of $4.5 million up until the IPO when such instruments converted to equity. Additionally, during the year ended December 31, 2022, we had income in the amount of $0.5 million from exchange rate differences, Since all convertible loans and nearly all warrants we had outstanding converted to equity in connection with the IPO, we do not expect additional material financial expenses going forward for these loans and warrants. Net loss for the full year ended December 31, 2022, was $11 million, compared to a net loss of $5.3 million for the year ended December 31, 2021. This increase was primarily due to increase in financial expenses resulting from the increases in fair value of various financial instruments, as well as an increase in operating expenses, mainly due to investment in sales and marketing, as well as expenses attributed to our IPO in May 2022, and our status as a public company thereafter. Adjusted EBITDA loss, a non-GAAP measurement of operating performance reconciled below to net loss for the full year ended December 31, 2022, was $4.1 million compared to $1.1 million in the comparable year-ago period. This was primarily due to increase in operating expenses. That completes my summary. I now would like to turn the call back over to Tuvia for closing comments. Tuvia?
spk04: Thank you, Yoav. Following our IPO in May of 2022, we've been increasing our market presence and impact in many of our verticals. Our investments in sales and marketing teams have already paid dividends and we're making significant progress in penetrating the international IoT markets. The recently announced additions to our sales team will help us to further capture market share in the growing IoT markets. Despite macroeconomic headwinds affecting components market during 2022, we've successfully maintained margins and quality of service while closing the gaps in our backlog. I'm pleased with the strong interest we're gaining, excited by the prospects of our company resulting from U.S. federal, state, and local agencies, as well as airports, transportation, and utility companies, increasing their demand for IoT digitization. As the offering enables highly efficient use of existing infrastructure, it meets their needs to move rapidly, grow, and conserve budget at the same time. We're looking forward to further assisting our customers extend and do more with their budgets, moving faster towards a digital world. I want to thank our dedicated and growing team for their ongoing contributions and our customer community for their continued partnerships. Our goal is to make you successful. I also want to thank our investors for their continued support. Thank you for joining us today. It is truly an exciting time for Actelis. Operator?
spk01: Thank you for joining us today for Actelis Network's Fiscal Full Year 2022 Earnings Conference Call. You may now disconnect.
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