SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
          

F O R M  6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 18, 2020

MER TELEMANAGEMENT SOLUTIONS LTD.
(Name of Registrant)

14 Hatidhar Street, P.O. BOX 2112 Ra'anana 43665, Israel
 (Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes *☐          No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- __________


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
MER TELEMANAGEMENT SOLUTIONS LTD.
               (Registrant)
  
       
Date:  November 18, 2020
By:
/s/ Ofira Bar  
    Name: Ofira Bar  
    Title: Chief Financial Officer  


MTS Announces 2020 Second quarter Financial Results

Powder Springs, Georgia, USA / Ra’anana, Israel - November 18, 2020 - Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), call accounting and contact centre software, today released its financial results for the three and six months ended June 30, 2020.

The Company recorded revenues of $948,000 for the three months ended June 30, 2020, compared with $1,317,000 for the three months ended June 30, 2019. Net loss from continuing operation, including one-time non-cash impairment charges of $617,000, amounted to $628,000 or $0.11 per diluted share for the three months ended June 30, 2020 compared with a net loss from continuing operation of $76,000, or $0.02 per diluted share, for the comparable period in 2019. On a non-GAAP basis (as described and reconciled below), the Company incurred a net loss of $4,000 or $0.00 per diluted share, for the three months ended June 30, 2020 compared with a net loss of $65,000, or $0.01 per diluted share, for the comparable period in 2019.

The Company recorded revenues of $2.1 million for the six months ended June 30, 2020 compared with $2.6 million for the comparable period in 2019. Net loss from continuing operation, including one-time, non-cash impairment charges of $617,000 amounted to $660,000, or $0.12 per diluted share, for the six months ended June 30, 2020 compared with a net loss from continuing operation of $206,000, or $0.04 per diluted share for the comparable period in 2019. On a non-GAAP basis (as described and reconciled below), the Company posted a net loss of $29,000, or $0.01 per diluted share for the six months ended June 30, 2020 compared with a net loss of $183,000, or $0.03 per diluted share for the comparable period in 2019.

During 2018 an institutional investor invested, $1.5 million in a newly-created class of convertible preferred shares and $0.2 million in ordinary shares of the Company. During 2020 and 2019, the institutional investor partially exercised its greenshoe option and purchased additional $1.5 million of the convertible preferred shares, which are convertible into ordinary shares on a one for one basis.

Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, “Our results in 2020 reflect the efficiency plan we implemented during 2019 in order to adjust our operating expenses attributable to the declining sales and to improve our operating margins.  Excluding the impact of the one-time non-cash impairment charges, our net loss for the quarter was $4,000 on a non-GAAP basis In June 2019, we introduced Omnis - Contact Center Software with “Out-Of-The-Box” capabilities and open channel architecture. We have begun to see initial revenues from this new product, whose introduction has been hampered by the constraints arising from the spread of COVID-19. As previously reported, we are also continuing our efforts to find a suitable M&A candidate for our company which will enhance shareholder value.”


About MTS

Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM), call accounting and contact center software. Headquartered in Israel, MTS markets its solutions through wholly-owned subsidiaries in Israel, the U.S and Hong Kong, as well as through distribution channels. For more information please visit the MTS web site: www.mtsint.com.

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s ability to achieve  profitable operations, its ability  to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements,  customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel,  general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission.

Contacts:
 
Ofira Bar
CFO
Tel: +972-9-7777-540
Email: ofira.bar@mtsint.com          


CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

   
June 30,
   
December, 31
  
   
2020
    
2019
  
   
(Unaudited)
    
(Audited)
  
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
2,210
    
$
1,732
  
Restricted cash
    
431
      
1,464
  
Trade receivables
    
414
      
499
  
Other accounts receivable and prepaid expenses
    
221
      
236
  
Assets of discontinued operations
    
178
      
172
  
                 
Total current assets
    
3,454
      
4,103
  
                 
SEVERANCE PAY FUND
    
350
      
653
  
                 
PROPERTY AND EQUIPMENT, NET
    
49
      
62
  
                 
 GOODWILL
    
2,608
      
3,225
  
                 
Total assets
  
$
6,461
    
$
8,043
  

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)

   
June 30,
    
December 31,
  
   
2020
    
2019
  
   
(Unaudited)
    
(Audited)
  
             
LIABILITIES AND SHAREHOLDERS' EQUITY
            
             
CURRENT LIABILITIES:
            
Trade payables
  
$
110
    
$
149
  
Deferred revenues
    
1,020
      
962
  
Accrued expenses and other liabilities
    
1,202
      
2,317
  
Liabilities of discontinued operations
    
488
      
516
  
                 
Total current liabilities
    
2,820
      
3,944
  
                 
LONG-TERM LIABILITIES:
                
Accrued severance pay
    
417
      
831
  
Deferred tax liability
    
55
      
163
  
                 
Total long-term liabilities
    
472
      
994
  
                 
COMMITMENTS AND CONTINGENT LIABILITIES
                
                 
SHAREHOLDERS' EQUITY:
                
Share capital -
                
Ordinary shares
    
37
      
30
  
Preferred Shares
    
15
      
16
  
Additional paid-in capital
    
31,354
      
30,635
  
Treasury shares at cost
    
(29
)
    
(29
)
Accumulated deficit
    
(28,208
)
    
(27,547
)
                 
Total shareholders' equity
    
3,169
      
3,105
  
                 
Total liabilities and shareholders' equity
  
$
6,461
    
$
8,043
  


CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)

   
Six months ended
June 30,
    
Three months ended
June 30,
  
   
2020
    
2019
    
2020
    
2019
  
   
Unaudited
  
Revenues:
                        
Services
  
$
1,815
    
$
2,258
    
$
913
    
$
1,120
  
Product sales
    
288
      
342
      
35
      
197
  
                                 
Total revenues
    
2,103
      
2,600
      
948
      
1,317
  
                                 
Cost of revenues:
                                
Services
    
693
      
785
      
321
      
393
  
Product sales
    
173
      
196
      
80
      
98
  
                                 
Total cost of revenues
    
866
      
981
      
401
      
491
  
                                 
Gross profit
    
1,237
      
1,619
      
547
      
826
  
                                 
Operating expenses:
                                
Research and development
    
-
      
268
      
-
      
135
  
Selling and marketing
    
459
      
553
      
194
      
267
  
General and administrative
    
937
      
978
      
482
      
484
  
Goodwill impairment
    
617
      
-
      
617
      
-
  
                                 
Total operating expenses
    
2,013
      
1,799
      
1,293
      
886
  
                                 
Operating loss
    
(776
)
    
(180
)
    
(746
)
    
(60
)
Financial income (expenses), net
    
8
      
(25
)
    
10
      
(15
)
                                 
Loss before taxes on income
    
(768
)
    
(205
)
    
(736
 )
   
(75
)
Taxes on income (tax benefit), net
    
(108
)
    
1
      
(108
 )
   
1
  
                                 
Net loss from continuing operations
    
(660
)
    
(206
)
    
(628
 )
   
(76
)
Loss from discontinued operations
    
(1
)
    
(14
)
    
(13
 )    
(16
)
                                 
Net loss
  
$
(661
)
  
$
(220
)
  
$
(641
 )
 
$
(92
)
                                 
Net loss per share:
                                
Basic and diluted net loss per share from continuing operations
  
$
(0.12
)
  
$
(0.04
)
  
$
(0.11
)
  
$
(0.02
)
Basic and diluted net loss per share from discontinued operations
    
(0.00
)
    
(0.00
)
    
(0.00
)
    
(0.00
)
Basic and diluted net loss per share
  
$
(0.12
)
  
$
(0.04
)
  
$
(0.11
)
  
$
(0.02
)
Weighted average number of shares used in computing basic and diluted net loss per share
    
5,645,400
      
4,698,440
      
5,669,621
      
4,783,115
  

RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except share and per share data)

   
Six months ended
June 30,
    
Three months ended
June 30,
  
   
2020
    
2019
    
2020
    
2019
  
         
Unaudited
        
GAAP net loss from continuing operations
    
(660
)
    
(206
)
    
(628
)
    
(76
)
Stock-based compensation expenses
    
14
      
13
      
7
      
6
  
Intangible assets amortization, net of tax effects
    
-
      
10
      
-
      
5
  
Goodwill impairment, net of tax effect
    
617
      
-
      
617
      
-
  
                                 
Non-GAAP net loss
  
$
(29
)
  
$
( 183
)
  
$
(4
)
  
$
( 65
)
                                 
Net loss per share:
                                
                                 
GAAP basic and diluted net loss per share
  
$
(0.12
)
  
$
(0.04
)
  
$
(0.11
)
  
$
(0.02
)
                                 
Non-GAAP basic and diluted net loss per share
  
$
(0.01
)
  
$
(0.03
)
  
$
(0.00
)
  
$
(0.01
)
                                 
Weighted average number of shares used in computing non-GAAP basic and diluted net loss per share
    
5,645,400
      
4,698,440
      
5,669,621
      
4,783,115