Audited Full Year Results

SimiGon Ltd

(“SimiGon” or the “Company")

Audited Full Year Results

SimiGon Ltd (LSE: SIM), a global leader in providing simulation and training solutions, announces its audited full year results for the year ended 31 December 2020 (the “Period”).

Financial Highlights

  • Revenues of $3.22 million (2019: $4.88 million), the decrease reflecting slower progress in delivering against project milestones due to COVID-19 restrictions and limitations on securing expected new business wins

  • Consequential small impact on gross margin of 57% (2019: 63%)

  • Operating loss of $2.13 million (2019: $1.45 million) mitigated by reducing operating expenses by 13% to $3.95 million (2019: $4.53 million)

  • Net loss of $2.18 million (2019: $1.45 million)

  • Basic and diluted loss per share of $0.04 (2019: loss per share $0.03)

  • Liquid cash and cash equivalents of $4.95 million (2019: $6.04 million)

Operational Highlights

  • Continued to support major military flight training programs including:

  1. The USAF Air Education and Training Command Undergraduate Remotely Piloted Aircraft Training (“URT”);

  2. Support for Lockheed Martin's UK Military Flight Training System ("UKMFTS"); and

  • Providing software and services as part of long-term relationship with a strategic European customer.

  • SimiGon successfully completed milestone deliveries for the following military aviation training programs,:

  1. SIMbox-based F-15E Mixed Reality training devices for USAF

  2. F-16 Maintenance Trainer Program for the Israeli Air Force (IAF)

  • T-6A Simulation Based Trainers to the IAF

  1. C-130 Virtual Maintenance Training solution for strategic partner

  • Secured additional software and hardware warranties and support services for the United States Air Force T-6A Level 5 FAA Compliant Flight Training Device

  • Awarded with additional $0.5 million extension to its C-130 Virtual Maintenance Training contract previously announced in 2 December 2020 by a large international defense company

  • Awarded contract to deliver its Commercial Off the Shelf SIMbox Virtual Reality Aircraft De-icing Simulator to USAF maintenance squadron.

  • Selected as the Flight Simulation Training Device (FSTD) provider for the United States Air Force Recruiting Service (AFRS) AIM HIGH Flight Academy.

  • During the Period, SimiGon has continued its ongoing R&D efforts to enhance simulation-based training and position the Company to capitalize on new high growth market opportunities mainly in maintenance training technologies.

  • Establishment of a Mergers & Acquisitions (M&A) team, seeking strategic acquisition opportunities for the Company to increase SimiGon’s near term revenues as well as improve long term growth prospects.

  • Promoted the Chief Operating Officer, Mr. Jack Sarnicki, to President of SimiGon Inc., the main trading subsidiary of the Company.

Ami Vizer, SimiGon's Chief Executive Officer and Executive Chairman, commented: “SimiGon has worked through multiple challenges presented by the COVID-19 global pandemic, delaying numerous expected contracts and subcontracts in 2020 for SimiGon’s core business supporting military aircrew training. We have continued to meet programme deliveries and received additional program work while improving revenue during the second half of the year.

We are currently encouraged by the changes in the simulation and training environment, where ongoing programs that were delayed due to the pandemic are returning to the fold and programs that have been postponed are back on the agenda. The Company’s ongoing R&D efforts in XR, maintenance training and data analytics are creating significant future growth potential together with SimiGon’s strategic programs and existing strong long-term relationships, we are confident in the longer-term prospects for the business”.

Legal actions:

On January 13, 2020 D.D Goldstein Real Estates and Investment Ltd., which to the Company's knowledge acquired 1,500,000 shares in the Company during 2019, has filed two legal actions in the Tel Aviv District Court - a petition for leave to file a monetary claim concerning salaries on behalf of the Company and an action for prerogative relief concerning resolutions approved at the Company's annual general meeting held on December 30, 2019 regarding the appointment of directors and the determination of their compensation. The Company filed its response in each of the proceedings. According to the court's decision, the petition for leave to file a monetary claim will resume after a judgment in the action for prerogative relief will be given.

On December 16,2020, the trial took place in the above-mentioned action for prerogative relief and on February 9, 2021, at which closing arguments were heard. The parties are now awaiting the judgment in the action for prerogative relief, after which the petition for leave to file a monetary claim will be resumed.

Coronavirus (COVID-19)

In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. COVID19 threatens to be a disruptor to companies, supply chains and the world economy. During the Period there has been an impact on the Company’s operations resulting from the COVID-19 outbreak. Though the Company had not received any cancelation notices from its customers in respect of active purchase orders as a result of COVID-19, the restrictions imposed in response to the pandemic have slowed the ability of the Company to deliver during the Period, and whilst this business has been delayed rather than lost, it is clear that the rate of winning new business opportunities has been negatively impacted during the Period.


SimiGon Ltd

Ami Vizer, Chief Executive Officer and Executive Chairman

+1 (407) 951 5548

Efi Manea, Chief Financial Officer

finnCap (NOMAD & Broker)

+44 (0) 207 220 0500

Henrik Persson


During the Period impacted by COVID-19 pandemic, the Company achieved successful delivery milestones of its strategic contracts. This includes milestones on the IAF F-16 Maintenance Trainer, C-130 virtual maintenance training solution and T-6A Simulation Based Training programs, contractor logistics support to the USAF’s URT program and continued support for the UKMFTS. Advanced proven technology, together with successful deliveries, have led SimiGon to be contracted with programs throughout the period which solidified SIMbox as a major training technology platform.

SimiGon’s unique technologies offering supports industry demand for more realistic training and depth perception provided with XR solutions. As an integrated all-in-one system with a native Learning Management System and Virtual Instructor, trainees receive high value, self-paced training, saving end user organizations time and money.

Over the Period, the Company continued its strategic focus on its three main areas:

  • Product Support- Successfully delivering Distributed Learning Solutions to our core strategic partners worldwide. SimiGon, directly and through its partners, now has training sites in North America, Europe, Middle East and in the Asia Pacific markets.

  • New domains- Expand the utilization of our SIMbox technology to multiple domains. This was successfully achieved by targeting several high opportunity markets such as maintenance training providers, commercial equipment operators, as well as training and research labs that utilize SIMbox as part of their research.

  • R&D capabilities- Improve the technological capabilities of SIMbox technology to enable the growth of the Company. Beyond the expansion of our graphics engine, simulation and learning management system, we have added and delivered XR solutions to multiple clients around the globe.

The R&D efforts in the Period have focused on advancing the Company’s maintenance training technologies, improving XR performance, enabling plug&play capability with consumer VR headsets, together with continued development of the Company’s simulation software development tools, high fidelity Image Generator, user monitoring and performance tracking with simulation data analytics. This comprehensive solution developed by SimiGon not only provides an immersive, high fidelity training environment, it also provides organizations the ability to see trainee(s) progression rate and areas of difficulty, enabling the curriculum to be tweaked for better training results. SIMbox technologies accelerating training are increasing the Company’s opportunities and market penetration across military and civilian training markets.

Operational Review

SimiGon’s core technology platform, SIMbox, and support services were developed for large simulation training programmes for the Government and Commercial sectors. As the Company evolves into a training systems integrator, SimiGon remains at the forefront of designing, developing, implementing and supporting advanced simulation and training solutions to accelerate learning. Increased operational proficiency lowers safety risks and better prepares operators for real operations, whether they are flights, weapons systems operations, flight line maintenance tasks or deep sea oil rig operations. Leveraging the robust SIMbox ecosystem, SimiGon and its partners are delivering XR capable simulation-based training content across multiple domains and across the hardware spectrum, from tablets and laptops/PCs to high fidelity training devices.

SimiGon’s strategic, simulation-based training solutions offer flexible licensing models with traditional software licensing or SaaS. SimiGon’s technologies and capabilities provide significant added value to multiple industries.


Virtual Training and Simulation

According to Allied Market Research, the virtual training and simulation market is poised for double digit growth. Valued at $204.41 billion in 2019, the market is projected to reach $601.85 billion by 2027. Virtual training is a cost-effective training methodology where a simulated, virtual environment allows trainees to learn and master new skills and procedures. Virtual training is widely used in military and civilian flight simulation, healthcare training, energy, transportation training, e-learning, digital manufacturing, and others.

Aerospace and defense related industry

SimiGon’s core market is military aviation, where the Company is a preferred technology supplier to the world’s largest military training programs and Government contractor.

The Company’s track record of delivering on time and within budget has led to winning multiple military-related contracts around the world, as well as serving to further entrench the Company with existing customers into new programs.

Civilian and Commercial vertical markets

SimiGon’s significant capabilities, proven in the defense sector, are being leveraged to pursue new civilian training contracts. SimiGon’s civilian training market opportunities range from education, maintenance, safety, energy and other industrial operations skills. The Company’s efforts to grow vertical Government and Civilian training are proceeding. The Company recognizes the growth potential in XR training solutions and is developing and marketing relevant solutions to support this fundamental shift in the training world.

The global Smart Education and Learning market is projected to grow with a CAGR of 20.3% from 2021 to 2027, according to Market Insight Solutions, and reach $142 billion by 2027.’s Extended Reality Market report states the global extended reality (XR) market is projected to grow from $42.55 billion in 2020 to $333.16 billion by 2025, at a CAGR of 50.9% from 2020 to 2025. This growth will stem from demand for AR, VR and MR.

User learning experiences are transforming the training industry as traditional ways of teaching are upended by new technologies. Adaptive learning, Artificial Intelligence (AI) driven simulation-based learning, analytics, blended learning, and collaborative learning, all part of SimiGon products, are continuously evolving offer users enhanced learning methodologies and experiences.

The simulation-based learning segment is anticipated to continued its fast paces growth, enabling professional organizations and educational institutions to virtually experience real world environments for trainees to practice, navigate, explore, and obtain more information through a virtual medium before they start working on real-life tasks. Growing awareness among people and rising popularity of smart education are encouraging solution providers to invest in research and development for creating more reliable, better, and cost-effective solutions.

As an Open System Architecture (“OSA”) software framework, SimiGon’s ability to integrate with new technologies makes its viable long-term training simulation software fully capable of leveraging the immersive training needs of the XR civilian markets. SimiGon software offers an advanced solution to organizations seeking to teach visual and interactive problem solving in far ranging markets such as civilian aviation, technician training, language training, customer service training and corporate leadership. The Company’s technology, experience and personnel, place it in a unique position to take advantage of the cultural shifts democratizing learning and training to reach the wider consumer market.


SimiGon has significantly boosted its digital marketing efforts during the pandemic with a full-time, dedicated digital marketing specialist. The Company is creating and posting new videos and other media for social channels consumption on a regular basis. The Company has been able to rapidly grow its presence on LinkedIn and YouTube as well as Instagram, Facebook and Twitter. SimiGon is expecting to continue this marketing push along with traditional outreach at industry conferences in the US and Europe and participation in smaller industry demos for select end users.


The Company continues to further develop its disruptive, baseline, commercial off-the-shelf (“COTS”) product with additional top layer application content and capabilities to reach more end users and vertical markets.

Targeted verticals such as commercial aviation maintenance training, security training, language training and vocational training have common requirements to the defense-related industries the Company continues to target. Specifically, they are highly regulated, require complex and specialized skill training and have zero tolerance for error. SimiGon is seeking to increase market share and broaden the end user applications for its base line SIMbox software platform in new domains.

Business Model

The Company's strategy, is to focus on long-term, high value, stable SaaS license contracts and services that provide better revenue and profit visibility as a result of distributing over the Period in which they are provided rather than lumpy license sales.

With SaaS-based contracts, the recurring maintenance and support stream is already included in the contract terms. In addition, the Company maintains flexibility with its traditional perpetual license fee model where the Company is paid for software license and support, as well as providing turnkey solutions for customers and partners as a Prime contractor or Sub-contractor.

Growth Strategy

The Company is focused on organic growth with its existing customer base, offering continuous product developments and services; leveraging its experience and IP developed from existing contracts as a Prime Contractor and Subcontractor to win new business and capture sales in established segments; and expanding its core technology’s applicability for new market domains, directly and indirectly.

SimiGon’s highly scalable, COTS technology training management system makes it an ideal solution to address new training domains with little customization required. New projects and markets continue to utilize the product infrastructure and developer tools to create the new application content; once developed, they are leveraged to target the wider market.

In addition, SimiGon is seeking to acquire simulation & training businesses that are aligned with the Company’s strategic focus in the Government and Commercial training and simulation market. SimiGon is in the enviable position of having both the financial ability and trust of our key shareholders to make strategic business acquisitions that will help us expand in our key market segments.

Long term contracts

The Company maintained its solid portfolio of long-term partnerships:

  • On December 2019, the Company has been awarded a $1.8 million contract from a large international defense electronics company (“Defense Company”) to design, develop and implement a C-130 virtual maintenance training solution (the “Contract”). The Contract for the C-130 training system is a new product complementing SimiGon’s current range of VMT solutions, including the F-16 training system which is already used by the IAF. This Contract, along with other ground based training systems using SimiGon technologies in the IAF, including T-6A Virtual Reality systems and the M-346 Advanced Jet Trainer, further solidifies SimiGon technologies as the IAF’s primary training technology platform for aircrew academy members. The Contract’s period of performance (excluding 12 months warranty and support) is approximately eighteen (18) months. During the Period, SimiGon has successfully delivered programs milestones. On October 2020, the Company has been awarded with additional $0.5 million extension to thIS Contract.

  • The Company has been awarded in year 2019 with a Blanket Purchase Agreement from the USAF for the supply of Virtual and Mixed Reality Systems (BPA). The BPA, has a contract ceiling of $6 million over a two-year period, which and the Company continued to deliver upon during year 2020. This allows the U.S. Government to rapidly order Virtual Reality (VR) and Mixed Reality (MR) solutions. SimiGon was one of four contractors awarded.

  • SimiGon continues its successful support for UKMFTS as a technology and services provider to Lockheed Martin. The Company continues to deliver under this long term contract, now in its ninth year of support, exceeding partner and end user expectations of SimiGon's technologies and performance.

  • Ongoing USAF contracts for the continued maintenance and support including onsite hardware and software support for the sixteen SIMbox-based T-6A Level 5 FTDs.

  • SimiGon completed multiple delivery milestones for the $2 million IAF F16 Maintenance Trainer contract announced in June 2016 to provide F-16 maintenance simulation based training systems to the IAF’s technician school in Haifa, Israel. This contract, in the maintenance training domain, is a new, lucrative vertical for SimiGon and will provide us with the experience and credentials to leverage for similar new business opportunities in other regions and other sectors.

  • The Company continues to support and has further expanded its long-term relationship with a major existing European customer that it has been supplying with software and services since 2009.

  • SimiGon continues its successful support of the SIMbox-based T-6A Simulation Based Trainers units provided to the IAF Flight Academy.

Financial Performance

Revenue for the year ended 31 December 2020 was $3.22 million, compared to $4.88 million in 2019. 47.16% of SimiGon's revenues came from North America (2019: 41.5%), 52.84% from Europe, Middle East, South America, Australia and Far East (2019: 58.5%). This decrease was attributable to the operational difficulties and delays in delivering against contracts during the COVID-19 pandemic and slowing of new business opportunities.

During the Period, loss before income taxes were $2.18 million (2019: loss before tax expenses of $1.45 million).

Gross profit for the year ended 31 December 2020 was $1.82 million, as compared to $3.09 million for the year ended 31 December 2019. Accordingly, gross margins decrease to 57% for the year ended 31 December 2020 as compared to 63% for the year ended 31 December 2019.

Total operating expenses for the year ended 31 December 2020 decreased by 13% to $3.95 million as compared to $4.53 million for the year ended 31 December 2019. R&D expenses for year ended 31 December 2020 decreased by 15% to $1.85 million as compared to $2.18 million for the year ended 31 December 2019. Without considering the impact of the adoption of IFRS 16 on the financial reports for year 2019, the decrease in the R&D expenses was mainly due to reductions in salary and related benefits expenses. Marketing expenses for the year ended 31 December 2020 increased by 12% to $1.04 million as compared to $1.19 million for the year ended 31 December 2019 mainly due to salary expenses as part of the Company intention to increase marketing efforts.

General and administration expenses for the year ended 31 December 2020 decreased by 9% to $1.06 million as compared to $1.17 million the year ended 31 December 2019 mainly due to salary and related benefits expenses.

Operating loss for the year ended 31 December 2020 was $2.13 million, as compared to $1.45 million for the year ended 31 December 2019.

As a consequence of the factors above, the loss for the fiscal year was $2.18 million (2019: loss of $1.45 million).

Basic and diluted loss per share was $0.04 for the year ended 31 December 2020 as compared to basic and diluted loss per share of $0.03 for the year ended 31 December 2019.

As at 31 December 2020 the Company had cash and cash equivalents of $4.95 million as compared to $6.04 million as at 31 December 2019, with trade receivables net of $0.96 million, out of which, a total of $0.5 million has been collected since the year end.

Despite the uncertainty as to the severity and duration of COVID-19 global pandemic, and its impact that has been and might be on the Company’s operation, the financial statements have been prepared on a going concern basis which assumes that the Company will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. In arriving at this determination, the Company has undertaken a thorough review of the Company’s cash flow forecast and potential liquidity risks. Cash flow projections have been prepared which show that the Company will have sufficient funds to finance its operations and meet its obligations during the period of at least 12 months from the date of approval of the financial statements.

The following has been performed by the Company as part of its ongoing activities to reduce the impact of COVID19 on its financials:

  • On April 24 2020, the Company’s subsidiary SimiGon Inc. has received a loan in a total of $0.23 million from the US Small Business Administration (SBA) as part of their Paycheck Protection Program that helps businesses keep their workforce employed during COVID-19 crisis. The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses (“PPP Loan”).

On February 2021, SimiGon Inc. has received a full forgiveness from the SBA.

  • On April 15 2021, the Company’s subsidiary SimiGon Inc. has received additional PPP Loan in a total of $0.24 million from the SBA.

  • The Company receive a state-guaranteed bank loan in a total amount of $0.23 million following the announcement made by the State of Israel of the opening of dedicated small business financial aid funds following the COVID-19 crisis.


SimiGon’s long term outlook remains positive as we have weathered the worst of the pandemic’s disruption. SimiGon technologies, coupled with pent-up demand for military aviation aircrew and maintainer training, ability to leverage existing training content with heightened XR capable user experiences, provide the pathway to growth and profitability.

The Company looks forward to putting the COVID-19 drag affect behind us and press forward on its agility and ability to rapidly scale to support new business and deliver its vision and business strategy to shareholders.

23 Final Results Announcement

This final results announcement, which has been agreed with the auditors, was approved by the Board of Directors on 27 April 2021. It is not the Company’s statutory accounts for the year ended 31 December 2020 but is extracted from those financial statements. Copies of SimiGon’s audited statutory accounts for the year ended 31 December 2020 will be available at the Company's website,, as soon as practicable after the release of this announcement.








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