MTMY.L Regulatory News (MTMY)

Three months ended

31 March

Year ended December 31

2019

2018

2018

Cash flows from operating activities:

Net loss

$ (15,362)

$ (7,352)

$ (46,645)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

492

2,794

8,647

Stock-based compensation

75

192

102

Impairment of intangible assets, goodwill, and capitalized research and development

15,984

-

38,580

Change in deferred tax, net

(2,090)

(234)

(664)

Change in accrued interest and effect of foreign exchange differences on long term loans

(52)

81

(167)

Changes in operating leases, net

(23)

-

-

Gain on remeasurement to fair value, gain from sale of affiliated companies and equity losses of affiliated companies, net

-

-

(75)

Fair value revaluation - convertible bond

1,288

527

(11,390)

Decrease in trade receivables

3,203

8,801

22,679

Decrease (Increase) in other receivables and prepaid expenses

705

(2,832)

(186)

Decrease in other assets

7

47

57

Decrease in trade payables

(3,404)

(8,438)

(17,796)

Changes in fair value of payment obligation related to acquisitions recognized in earnings

955

182

260

Decrease (increase) in tax receivable

3,166

-

(3,399)

Decrease in employees and payroll accruals

(378)

(1,091)

(2,294)

Decrease in accrued expenses and other liabilities

(1,531)

(144)

(4,818)

Loss from sale of activity

-

-

1,835

Loss (gain) from disposal of property and equipment and domains

(53)

-

847

Other

-

50

(57)

Net cash provided by (used in) operating activities

2,982

(8,471)

(14,484)

Cash flows from investing activities:

Sale of activity

1,740

-

6,510

Change in long term deposit

-

-

66

Sale of investment in affiliated company

-

-

149

Purchase of property and equipment

(16)

(67)

(206)

Purchase of domains

-

(51)

(1,134)

Proceeds from sale of domains and property and equipment

-

-

76

Capitalization of research and development costs

(156)

(733)

(2,258)

Net cash provided by (used in) investing activities

$ 1,568

$ (851)

$ 3,203

Three months ended

31 March

Year ended December 31

2019

2018

2018

Cash flows from financing activities:

Short-term bank credit, net

$ (2,851)

$ 755

$ (4,322)

Issuance of convertible bond

-

29,930

29,930

Repayment of bank loans

(1,103)

(3,049)

(10,019)

Additional payments related to previous acquisitions

-

(110)

(681)

Acquisition of non-controlling interest

-

(20,146)

(20,146)

Dividend paid to non-controlling interest

-

(2,711)

(2,711)

Net cash provided by (used in) financing activities

(3,954)

4,669

(7,949)

Effect of exchange rate differences on cash

-

(2)

-

Increase (decrease) in cash, cash equivalents and restricted cash

596

(4,655)

(19,230)

Cash, cash equivalents and restricted cash at beginning of period

10,301

29,531

29,531

Cash, cash equivalents and restricted cash at end of period

$ 10,897

$ 24,876

$ 10,301

Non-cash investing activities:

Receivable in connection with acquisitions

$ 99

$ -

$ 1,839

Matomy Media Group Ltd. - Sources and Expected Uses of Funds Statement (Solo, excluding Team Internet) - through March 2021

 מטומי מדיה גרופ בע"מ - דוח מקורות ושימושים צפויים - (סולו, ללא טים אינטרנט) - עד 31 במרץ 2021

in thousands of USD

באלפי דולר

Q2-2019

Q3-2019

Q4-2019

2020

Q1-2021

actual

projected

projected

projected

projected

Opening balance

 $ 7,347

 $ 5,451

 $ (10,742)

 $ (7,455)

 $ (16,356)

יתרת פתיחה

Sources:

מקורות:

Cash flow from Operations:

תזרים מפעילות שוטפת:

Working Capital Mobfox activity

 $ (144)

 $ (710)

הון חוזר מובפוקס

Tax Receivable - Matomy USA

 $ 625

 $ 920

החזר מס משלטונות המס האמריקאיים

Tax Receivable - Matomy KG

 $ 3,237

 $ 1,180

 $ -

החזר מס משלטונות המס הגרמניים

Tax paid in UK and USA

 $ (75)

מסים ששולמו באנגליה ובארצות הברית

Dividend from Mobfox Austria

 $ 85

דיבידנד מובפוקס אוסטריה

Dividend from Team Internet

 $ 3,710

 $ 3,504

 $ 8,073

 $ 2,018

דיבידנד מטים אינטרנט

Withholding tax on Team Internet Dividend

 $ (607)

 $ (573)

 $ (1,320)

 $ (330)

ניכוי מס במקור דיבידנד טים אינטרנט

Cash flow from Finance activity:

תזרים מפעילות מימון:

Rights Issue

 none

הנפקת זכויות

Bond Series A Expansion

 none

הרחבת סדרת האגח

Issuance Cost

 $ (427)

עלויות הנפקה

Cash flow from Investment activity:

תזרים מפעילות השקעה:

Sale of myDSP - last payment

 $ 250

 מכירת myDSP

 $ 314

 $ 3,313

 $ 6,168

 $ 7,933

 $ 1,688

Expected Usage of Funds:

שימושים צפויים:

Cash used for Operations:

 $ (490)

 $ (438)

 $ (438)

 $ (1,100)

 $ (275)

תזרים לפעילות שוטפת:

One-time Cost of Operations

 $ (523)

 $ (191)

עלות תפעולית חד-פעמית

Legal cost of bond settlement

 $ (243)

 $ (86)

עלות הסדר החוב - משפטיות

Bond interest due

 $ (954)

 $ (905)

 $ (1,810)

 $ -

ריבית חצי שנתית לבעלי האגח

Cash flow used for Financing activity:

תזרים לפעילות מימון:

Bond principal payment

 $(13,923)

 $ -

החזר קרן לאג"ח

Rainmaker payments

 $ (18,791)

 $ (1,539)

תשלומים ל-Rainmaker

 $ (2,209)

 $ (19,506)

 $ (2,882)

 $(16,833)

 $ (275)

Closing balance

 $ 5,451

 $ (10,742)

 $ (7,455)

 $(16,356)

 $ (14,943)

יתרת סגירה

Assumptions:

1. The Company's previous Sources and Expected Uses of Funds Statement was based on a proposed plan for a settlement between the Company, the bondholders, Rainmaker and any other relevant stakeholder, which was based on the updated key features published on January 9, 2019, and the clarifications that were published on January 23, 2019 ("Proposed plan"). Due to uncertainty regarding the feasibility of the execution of the Proposed Plan in its current structure and that the Proposed Plan will require adjustments in order to adapt it to the current and anticipated activity, the Company adopted a conservative approach and the Proposed Plan was not implemented. In addition and as a result, the Company included the payment to Rainmaker under the "Cash flow used for Financing activity".

In accordance with the share purchase agreement with Rainmaker, in which the Company, through its UK and German subsidiaries, currently holds 90% of the share capital, the Company was required to buy the remaining 10% stake in Team Internet (the "Third Sale Exit") from Rainmaker on November 30, 2018. The Company failed to pay the amount due on 30 November 2018. Failure by the Company to pay the consideration for the Third Sale Exit, triggers certain rights of Rainmaker, among other remedies, such as interest on late payment and a right to repurchase some or all of the Company's shares in Team Internet, at Rainmaker's discretion, at a price of 60% of the original purchase price paid by the Company on such shares. Such price, after giving effect to the foregoing discount and assuming all shares are purchased is approximately EUR 31,688 thousand.

The agreement with Rainmaker also provides that in the event that it can be demonstrated that the failure by the Company, through its UK and German subsidiaries, to make the payment is due to lack of funds despite any and all necessary efforts of the Company to obtain such funds (including by taking loans and selling assets), then the sole remedy available to Rainmaker is the exercise of the repurchase option.

2. The amounts of dividends that may be distributed by Team Internet to Matomy depend on the percentage holdings of Matomy in Team Internet and on the dividend policy at the relevant time.

3. Timing of distribution of Team Internet's dividends may vary based on liquidity limitations

4. With respect to future dividend distributions by Team Internet, the Company adopted a conservative approach: (a) the Company adjusted the dividend distributions from Team Internet during 2019 and 2020 according to and based on the actual results of Team Internet in 2018; (b) the dividend distribution were adjusted to reflect a conservative scenario that take into account the recent developments in the Company's activity, as were reported by the Company on June 20, 2019.

5. With respect to the payment of Bond Principal, we have assumed that the Bonds continue to be repaid according to its payment schedule, therefore, 50% of the Bond Principal will be paid On December 31, 2020.

Unreviewed Statement

The statement contains unreviewed financial measures that do not have a standardized meaning prescribed by GAAP.

Cautionary statement regarding forward-looking statements

This statement includes certain forward-looking statements, forecasts, estimates, projections and opinions. These forward-looking statements may be identified by the fact that they do not relate only to historical or current facts or the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements include statements regarding the business strategy, objectives, financial condition, results of operations and market data of the Company and its subsidiaries (the "Group"), as well as any other statements that are not historical facts. These statements reflect the Company's current view with respect to future events and are based on assumptions made the Company (including, without limitation, assumptions concerning currency exchange rate fluctuations, requirements of additional capital, costs of closure of various operations and changes to regulations) and information currently available to the Company.

Although the Company considers that these views and assumptions are reasonable, by their nature, forward-looking statements involve unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Group. These factors, risks, uncertainties and assumptions could cause actual outcomes and results to be materially different from those projected. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. No representation is made or will be made that any forward-looking statements will be achieved or will prove to be correct. These factors, risks, assumptions and uncertainties expressly qualify all subsequent oral and written forward-looking statements attributable to the Company or persons acting on its behalf.

The forward-looking statements speak only as of the date of this announcement. Each of the Company and its respective affiliates expressly disclaim any obligation or undertaking to update, review or revise any forward-looking statement and disclaims any obligation to update its view of any risks or uncertainties described herein or to publicly announce the result of any revisions to the forward-looking statements made in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or otherwise, except as required by law.

No statement in this announcement is intended, or is to be construed, as a profit forecast or estimate or to be interpreted to mean that earnings per Company share or overall earnings for the current or future financial years will necessarily match or exceed the historical published earnings per Company share or overall earnings.

Matomy Media Group Ltd. - Gap analysis - comparison of Q2, 2019 actual cash flow compared to the Sources and Expected Uses of Funds Statement projection published on March 31, 2019

 מטומי מדיה גרופ בע"מ - טבלת השוואה בין נתוני רבעון 2 של שנת 2019 לעומת דוח מקורות ושימושים צפויים שפורסם ב-31 במרץ 2019

in thousands of USD

באלפי דולר

Q2 - 2019

Q2 - 2019

Projected

Actual

Sources:

מקורות:

Cash flow from Operations:

תזרים מפעילות שוטפת:

Working Capital Mobfox activity

Note 1 below

 $ (854)

 $ (144)

הערה 1 למטה

הון חוזר מובפוקס

Tax Receivable - Matomy USA

Note 2 below

 $ 658

 $ 625

הערה 2 למטה

החזר מס משלטונות המס האמריקאיים

Tax paid in UK and USA

Note 8 below

 $ -

 $ (75)

הערה 8 למטה

מסים ששולמו באנגליה ובארצות הברית

Dividend from Team Internet

Note 3 below

 $ 3,710

 $ -

הערה 3 למטה

דיבידנד מטים אינטרנט

Withholding tax on Team Internet Dividend

Note 3 below

 $ (607)

 $ -

הערה 3 למטה

ניכוי מס במקור דיבידנד טים אינטרנט

Cash flow from Finance activity:

תזרים מפעילות מימון:

Rights Issue

Note 9 below

 $ 10,000

 $ -

הערה 9 למטה

הנפקת זכויות

Bond Series A Expansion

Note 9 below

 $ 2,000

 $ -

הערה 9 למטה

הרחבת סדרת האגח

Issuance Cost

Note 7 below

 $ (1,000)

 $ (427)

הערה 7 למטה

עלויות הנפקה

Expected Usage of Funds:

שימושים צפויים:

Ongoing operations

Note 6 below

 $ (438)

 $ (490)

הערה 6 למטה

עלות תפעולית שוטפת

One-time Cost of Operations

Note 4 below

 $ (714)

 $ (523)

הערה 4 למטה

עלות תפעולית חד-פעמית

Legal cost of bond settlement

Note 4 below

 $ (329)

 $ (243)

הערה 4 למטה

עלות הסדר החוב - משפטיות

Bond interest due

Note 5 below

 $ (1,057)

 $ (954)

הערה 5 למטה

ריבית חצי שנתית לבעלי האגח

Cash flow used for Financing activity:

תזרים לפעילות מימון:

Bond principal payment

Note 9 below

 $ (3,500)

 $ -

הערה 9 למטה

החזר קרן לאג"ח

Rainmaker payments

Note 9 below

 $ (13,500)

 $ -

הערה 9 למטה

תשלומים ל-Rainmaker

Note:

הסבר

1. The company paid suppliers less than expected in Q2, and will pay outstanding debts during Q3

1. החברה שילמה לספקים פחות מהמצופה, ותשלם חובות שנשארו פתוחים במהלך רבעון 3

2. Company collected an amount which was slightly lower than expected

2. החברה גבתה סכום נמוך במעט מהצפוי

3. Due to continued discussions regarding Team Internet, this was postponed from Q2 to Q3

3. בשל התמשכות השיחות בנושא טים אינטרנט חלוקת הדיבידנד נדחתה מרבעון 2 לרבעון 3

4. Partial amount was paid in Q2, the rest will be paid in Q3

4. חלק מהסכום שולם ברבעון 2, השאר ישולם ברבעון 3

5. The interest payment to the bondholders was lower than expected as the Proposed Plan was not implemented

5. תשלום הריבית היה נמוך מהצפוי מכיוון שלא התממש הסדר החוב במתכונת שעיקריה פורסמו ביום 9 בינואר 2019 וההבהרות שפורסמה לה ביום 23 בינואר 2019 ("תכנית ההסדר המוצעת").

6. This cost was slightly higher than planned

6. עלות זו הייתה גבוהה במעט מהצפוי

7. This is the partial cost of preparing the prospectus which was required for the execution of the Proposed Plan; this process was put on hold after the company received the Purchase Offer, as was published on April 2019.

7. עלות הכנת התשקיף שנדרש לצורך הוצאתה לפועל של תכנית ההסדר המוצעת. תהליך זה לא הושלם עקב קבלת הצעת הרכישה מריינמייקר, כפי שפורסמה באפריל 2019.

8. Unanticipated tax expenses

8. הוצאות מס לא צפויות

9. Due to uncertainty regarding the feasibility of the execution of the Proposed Plan, in its current structure, its key features were removed from the statement above, including the anticipated Capital Raise from the Shareholders, anticipated Early Payment to the Bondholders and the amount that the Company anticipated paying Rainmaker in Q2. instead, the full payment to Rainmaker according to the original agreement, was added in Q3

9. עקב אי הודאות לגבי הוצאתה לפועל של תכנית הסדר המוצעת במתכונותה הנוכחי תנאיה לא נכללו במסגרת התזרים לעיל. בהתאם, הוסרה ההתייחסות לגיוס ההון מבעלי מניות, הפרעון המוקדם למחזיקי האגח, נמחק הסכום שהיה צריך להיות משולם לריינמייקר, וברבעון 3 נכלל סכום ההתחייבות לריינמייקר על פי ההסכם עימם.