Benzinga | Jul 9, 2021 12:02PM EDT

WISeKey Sees H1 2021 Cash, Cash Equivalents $27.9M

* Revenue of $9.9 million increased by 24% as compared to H1 2020 revenue of $8.0 million.

* Strong cash position: cash and cash equivalents increased to $27.9 million at June 30, 2021, as compared to cash and cash equivalents together with restricted cash of $17.4 million at June 30, 2020, and $21.8 million at December 31, 2020. As of July 9, 2021, WISeKey's cash reserves amount to $35.9 million. This improved financial position enables WISeKey to make investments in growth initiatives and support its development into Artificial Intelligence of Things ("AIoT").

* Made significant investments in R&D and new microchips design in order to maintain our leading-edge technology position and the competitive advantage of our product offerings.

* Put strong requirements in place to reduce general corporate spending and effectively manage the needs for working capital to maintain a positive free cash flow position.

* Completed the acquisition of a controlling interest in arago GmbH ("arago"), investing a further $4.7 million cash in the first half of 2021, bringing our total investment to $8.2 million of cash into the arago operations. This investment led to a combination of the businesses of WISeKey and arago and the consolidation of revenues starting February 2021. arago provides Artificial Intelligence to enterprise customers globally through Knowledge Automation. Knowledge Automation and Data platform HIRO(tm), developed by arago, takes a unique approach to process automation by using AI to autonomously and independently determine how to complete and then automate end-to-end tasks based on real time contextual data. Fully auditable and only using steps defined and approved by the customer, Knowledge Automation delivers significantly higher automation rates at a much lower operational cost. This acquisition was strategic for WISeKey to establish a foothold into the AIoT market.

* Took urgent and decisive actions to reduce the operational costs of arago and streamline their processes with significant reductions of G&A.

* Made significant investments in new talent and have expanded our sales force including the appointment of a new CRO to take advantage of higher demand for strong security, authentication, brand protection and anti-counterfeiting services for segments such as connected devices, connected cars, luxury products, pharmaceuticals, and banking/financial sector.

* Developed WISe.ART, an NFT platform for the collectible and luxury market under the brand name WISe.ART ( https://www.wise.art). The global market for non-fungible tokens (NFTs) surged to new highs in the second quarter of 2021, with $2.5 billion in sales so far this year, up from just $13.7 million in the first half of 2020, as marketplace data showed. Although the NFT market decreased last month, it is expected to surge again especially on the high-end NFT market which is the market segment where the WISe.ART platform operates. WISeKey's WISe.ART NFT platform follows a series of market tests -- selling high value NFTs and testing the appetite of the art and collectible community -- and incorporates the needs of this exclusive and high-volume marketplace. Following the needs of buyers and sellers of high-value goods the WISe.ART platform evolves the original collection of WISe.Art and is a fully fledged marketplace with its own digital currency, the ability to include curators and multipliers, white-labeling options and a special NFT design. The NFT design of the WISe.ART platform ensures that besides an authenticated and signed version of the actual digital asset, an irreversible link to a physical object is set up, in addition to proof of ownership, provenance and a set of contracts describing future use and monetization streams. NFTs and platform are secured by WISeKey's various security technologies enabling the authentication of physical objects as well as digital assets in a safe end-to-end process. The WISe.ART platform allows trading of NFTs into WISeKey's own TrustECoin cryptocurrency, enabling market participants to stay anonymous -- if they so choose -- while ensuring the necessary KYC processes to avoid unwanted activity on the marketplace.

* Adapted to the new teleworking environment by developing a special edition of WISeID Digital Identification and Cloud that is now available as a free download. The WISeID app secures interactions of locked-down teleworkers around the globe and help companies reduce cybersecurity risks. PKI and Digital Certificates secure email messages and reduce risks by ensuring authenticity of messages and enabling encryption of confidential data. The WISeID Platform is available for anyone to obtain a digital certificate and immediately protect their email.

* Developed NanoSealRT, an NFC Forum Type 5 semiconductor chip that works with both Android and IOS 12 (and above) devices: 1 essential patent has been granted in March 2021 to this product by the E.U. and the Chinese Patent Offices, which will further reinforce our position as a major Smart Label system provider, in traceability, anti-counterfeiting and consumer engagement applications. Reinforced our strategic partnerships as we joined the SAP(r) PartnerEdge Program. The program gives partners access to resources, services and benefits that will help WISeKey build and maintain a successful partnership with SAP and optimize business results for clients. WISeKey has been working on IoT security by integrating OISTE/WISeKey's Managed Cryptographic Root of Trust secure IoT Devices with devices leveraging SAP Leonardo(r) IoT.