MICT Files Extension to Report 2021 Year-End Audited Financial Results Due to COVID Lockdowns in Chinese Branch Offices
Subject to Completion of the Audit, MICT Expects its Insurance Business to Report Continued Margin Improvement and its First Profitable Quarter in Q4 2021 With an Overall Significant Cash Position
MONTVALE, N.J., April 01, 2022 (GLOBE NEWSWIRE) -- MICT, Inc. (Nasdaq: MICT) (“MICT” or the "Company"), today announces it has filed an extension to reporting its fourth quarter and year-end 2021 financial results to the Securities and Exchange Commission.
The extension is required due to the extremely strict COVID-19 lockdown protocols in three key Chinese provinces, which are preventing the completion of sampling in a small number of MICT’s approximately 120 branch offices. These lockdowns have currently prohibited all residents in these areas from leaving their homes and gaining access to their workplaces. As a result of such prohibitions, neither MICT’s employees nor employees of MICT’s independent registered accounting firm can gain access to the impacted branch offices to complete audit procedures for the fiscal year ended December 31, 2021.
Darren Mercer, MICT’s Chief Executive Officer, commented, “Although beyond our control, we regret the delay in announcing our fourth quarter and yearly audited financial results for 2021. That said, we are very pleased with the thoroughness and attentiveness of our new audit firm, and we are hopeful that the stringent lockdown policies in place can be lifted soon so the required audit sampling work (the vast majority of which has already been done) can be completed.
“In the meantime, when we do announce our fourth quarter and year end results, we expect to show significant overall revenue and gross profit growth for MICT, as well as a significant cash position at year end. Importantly, we currently believe we will be able to report that our key insurance business could well show its first quarter of profit in the fourth quarter of 2021, which would be an important milestone for us.
“Moreover, we can announce that considerable progress is being made on a number of key potential acquisitions that we believe, if consummated, would have a significant positive impact on our business. These acquisitions have the potential to add varying levels of profitability to MICT, which is a key part of our strategy going forward,” continued Mr. Mercer.
“We very much look forward to sharing both our year-end 2021 results and our vision for 2022 pending the completion of our audit, which, as indicated, is dependent upon authorized and safe access to our branch offices. We will keep our investors apprised as to our progress in this regard,” Mr. Mercer concluded.
About MICT, Inc.
MICT, Inc. (NasdaqCM: MICT) operates through its subsidiaries, GFH Intermediate Holdings Ltd ("GFHI"), its various fully owned subsidiaries or VIE structures. GFHI's versatile proprietary trading technology platform is designed to serve a large number of high growth sectors in the global fintech space. Primary areas of focus include online brokerage for equities trading and sales of insurance products in several high-growth foreign markets including Asia where GFH owns a substantial propriety database of users.
Cautionary Note Regarding Forward-Looking Statements
This press release contains express or implied “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. All statements other than statements of historical fact contained in this press release are forward-looking statements. The words “potential,” “believe,” “may” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. The Company has based these forward-looking statements on management’s current expectations and projections about future events and financial trends that management believes may affect the Company financial condition, results of operations, business strategy, business prospects, growth strategy and liquidity. Such forward-looking statements and their implications involve significant known and unknown risks, uncertainties and other factors that may cause actual results or performance (including, without limitation, the Company’s results of operations for the fourth quarter and year ended December 31, 2021, as well as potential future acquisitions by the Company, each as described herein) to differ materially or even substantially from those contemplated by the forward-looking statements. In particular, the Company can offer no assurances that the COVID-19 lockdowns currently in place will be lifted in sufficient time to allow the Company to report its year end 2021 audited results on a timely basis. All forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the “Risk Factors” section and elsewhere in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Released April 1, 2022