Darren Mercer Interim Chief Executive Officer
Moran Amran Controller
[Call Starts Abruptly] 2020 results. Management will provide an overview of the results. Importantly there is a slide presentation which management will use during their overview. This presentation can be found on the Investor Relations section of the company's website - www.mict-inc.com - under Events and Presentations. You may also access a PDF copy of the presentation by clicking the link in the company's press release regarding these financial results issued this morning and then clicking a second link - labeled second quarter 2020 results. Callers accessing the PDF copy of the presentation will need to manually scroll through the slides as management go through the presentation.
I will now take a brief moment to read the Safe Harbor statement. During the course of this call management will make expressed and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include - but are not limited to - those statements regarding the belief that the merger with GFH and the recent investment in Micronet will create synergies and advantages for both companies - our expectations regarding the global logistics and transportation telematics industry growth and the belief that a majority stake in Micronet will leverage our global platform to grow the telematics business as well as fintech.
Such forward-looking statements and their implications involve known and unknown risks uncertainties - and other factors that may cause actual results or performance to differ materially from those projected. The forward-looking statements contained in this presentation are subject to other risks and uncertainties - including those discussed in the Risk Factors section and elsewhere in the company's annual report and Form 10-K for the year ended December 31 - 2019 filed with the Securities and Exchange Commission and elsewhere in subsequent filings with the Securities and Exchange Commission.
On the call this morning, we have Darren Mercer, Chief Executive Officer and Board Member of MICT and Moran Amran, Controller of MICT. And again, as a reminder, management will be referring to a slide presentation that can be accessed via the Investor Relations section of the company's site or the link in the press release. We will start with an opening message from Darren, who will give an overview of business developments for the three and six months ended June 30, 2020. Then we will move to review the numbers with Moran.
I will now turn the call over to Darren who will begin the presentation on Slide 3. Please go ahead - Darren.
Call transcript
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Darren Mercer

Thank you, and good morning, everybody. If I can turn your attention to Slide 3 of the presentation, we're very pleased and excited to have recently closed two critical transactions, which are contemplated to create significant value for MICT shareholders. In connection with such transactions pursuant to which MICT now controls operating businesses in the global fintech sector, GFH; and the telematics sector, Micronet, MICT believes that it is well positioned to grow revenues and earnings. On July 1, 2020 MICT completed the acquisition of GFH for approximately US$25 million in convertible securities of MICT, launching MICT into the global fintech industry. Pending shareholder approval on September 3, 2020, MICT special meeting of stockholders, MICT expects to receive the balance of the US$15 million that remains to be funded through convertible promissory notes, convertible into shares of MICT common stock upon stockholder approval at a conversion price of $1.10 per share.

before XXXX, of in MICT outstanding shares. week on second Micronet one ordinary XX, June increased just the the end quarter Limited’s Additionally, its position thus of business telematics outstanding MICT in subsidiary. Micronet owns controlling interest XX.XX% ordinary currently shares, giving MICT its Limited’s are the deep we U.S. in we experience expand to GFH’s in the positioned Through markets, Micronet's Asian network believe well business beyond into Asia. Europe and increase business, its GFH brings in MICT’s crossover and telematics is of the for a acquisition The decision to to stake Micronet. reason driving benefits Per U.S. accounting principles third the results in will now quarter MICT GAAP from of report financial XXXX revenues and GFH. can a Slide X, tremendous I MICT created future your for has growth. it If attention platform turn believes to that with be combines are organic This the strategic these in operating completed growth creative anticipated businesses acquisitions expand future to contemplated further our effort that in and businesses. an to platform of and the telematics in fintech base global Grandview the is established $XX and with a robust grow the to XXXX market, companies billion in portfolio product trucking to by including according of installed global is expected and to Micronet Research. customers which telematics well logistics to versatile with strategic technology platform is as number of used designed platforms GFH’s high growth proprietary partners. as well serve a by sectors, to trading large interface GFH’s equities several of insurance online foreign primary products markets. brokerage of include trading areas in focus for and sales demand the in The early surge in growth significant the services. where investment of and driven country’s wealth China, a management primary focus class in will provision be products on services affluent has and the for due of future. events looking to several the sectors are and and consideration, currently and telematics acquisition in forward the conducting pipeline in achievements under in additional fintech the With our we announcing revenue-driving accretive opportunities diligence on we attention QX I to review your results. Slide turn MICT's If Slide now X, X, XXXX financial will can

XX, held Generally on consolidated time not practices, therefore Accepted a results MICT GAAP. reminder than XXXX statements Micronet’s of ownership based and U.S. include financial February that in XXXX less its did XX% Micronet and June financial between XX, As during Accounting

financial the XXXX. XXXX. XXXX R&D, to in ended and three expense for and $X.X a in Selling, will QX revenues, $XXX,XXX to third February of March income reported revenues quarter development, of Limited beginning $XXX,XXX its the for of MICT results net SG&A, QX loss was profits result months research XXXX P&L gross MICT statements or in was MICT general the of consolidated compared and XX, the Our in attributable financial Micronet's XXXX. XXXX. QX only. quarter months no expense January QX include compared reflect second XXXX Micronet in administrative, XXXX in to and Net in XXXX, million $XXX,XXX XXXX

of $X.X for June Moran in XXXX, now more turn cash. call XX, million had the detailed MICT to review. will financial I As

Moran Amran

XXXX to zero in quarter the to per as to second for per of a illustrates million revenue million the for $X.X Revenue consolidate zero as you, the of the breakdown next result of six share, loss Micronet Thank income months in basic $XXX,XXX morning, compared XXXX. compared from Net expense financial XXXX, second as more income The diluted The second quarter the same net loss $XXX,XXX $X.X XXXX June of primarily in everyone. XXXX. six and to basic XXXX net results slide Slide impairment operating six of starting $X.X XXXX recording as ended $XXX,XXX to the X from XX, was the June months in XX, quarter and first diluted good the or six the quarter a the the of first a to per cancellation of in operation in XXXX in compared XXXX. share, attributable XXXX quarter a months second quarter Operating of and as detailed to was XXXX. was MICT Total months was numbers. of compared the income the the of of compared provides is $XXX,XXX ended quarter second and second to Micronet. Darren, of compared XXXX. $XXX,XXX or $X.XX second of in in from income share and gain period

we in capital million equity, Slide as our $X.X X, to in of in million and receivable, debts, $XXX,XXX in I $X.X to XX, bank now call back on cash million turn and the million and Turning Darren. sheet, will in net balance working have equivalent, cash other shareholders' June XXXX. $X.X $X

Darren Mercer

on Thank today. the getting you everybody call for

about build to alike. We our MICT's investors both for and continue are excited value future longtime and new to


quarter Thank you. your concludes you conference results Inc. XXXX participation. second for Thank MICT call. This

ahead may disconnect. You go and