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ABILITY INC: Ziv Haft Raises Substantial Going Concern Doubt

Ability Inc. filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F, disclosing a net and comprehensive loss of $7,737,000 on $1,885,000 of revenues for the year ended Dec. 31, 2019, compared to a net and comprehensive loss of $10,189,000 on $539,000 of revenues for the year ended in 2018.

The audit report of Ziv Haft states that the Company has an accumulated deficit, working capital deficit, suffered recurring losses and has negative operating cash flow. Additionally, the Company is under an investigation of the Israeli Ministry of Defense, which ordered a suspension of certain export licenses. Additionally, severe restrictions imposed by many countries on global travel as a result of the coronavirus disease of 2019 (“COVID-19″) outbreak have impeded the Group’s ability to complete the phase of the systems acceptances. These matters, along with other reasons, raise substantial doubt about the Company’s ability to continue as a going concern.

The Company’s balance sheet at Dec. 31, 2019, showed total assets of $17,215,000, total liabilities of $20,080,000, and $2,865,000 in total shareholders’ deficit.

A copy of the Form 20-F is available at:

https://is.gd/QE3TdX

Ability Inc., through its subsidiaries, provides interception, geolocation, and cyber intelligence products and solutions for security and intelligence agencies, military forces, law enforcement agencies, and homeland security agencies worldwide. It specializes in off-air interception of voice, SMS, and data communication from cellular and satellite communication networks; and deciphering solutions for cellular and satellite communications. The company offers strategic and tactical cellular interception systems for intercepting mobile phone traffic and tracking mobile phone users; and satellite interception systems. It also provides geolocation systems to geographically target mobile phones; and cyber solutions that enable the user to extract and view information from mobile phones. Ability Inc. was founded in 1994 and is headquartered in Tel Aviv, Israel.

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