Revenue Performance - Revenues for the nine months ended September 30, 2024, amounted to 6,802,000,anincreaseof63.54,166,000 for the same period in 2023, primarily due to increased Orgad sales[89]. - Revenues for the three months ended September 30, 2024, were 1,839,000,adecreaseof14.72,156,000 for the same period in 2023, attributed to lower Orgad sales due to low inventory and seasonality[90]. Cost and Expenses - Cost of revenues for the nine months ended September 30, 2024, was 3,831,000,up42.02,698,000 in the same period in 2023, mainly due to increased revenues and a 643,000inventorymarkdown[91].−ResearchanddevelopmentexpensesfortheninemonthsendedSeptember30,2024,were352,000, a decrease of 56.6% from 811,000inthesameperiodin2023,duetoreducedheadcountandsubcontractorexpenses[93].−GeneralandadministrativeexpensesfortheninemonthsendedSeptember30,2024,were2,572,000, down 19.8% from 3,210,000inthesameperiodin2023,primarilyduetodecreasedprofessionalservicesandinsuranceexpenses[97].−SalesandmarketingexpensesfortheninemonthsendedSeptember30,2024,were2,670,000, an increase of 2.8% from 2,598,000inthesameperiodin2023,drivenbyhigherAmazonfees[96].−Financialexpenses,netfortheninemonthsendedSeptember30,2024,amountedto26,000, a decrease from 78,000inthesameperiodin2023,mainlyduetoreducedexchangeratedifferences[101].LossandImpairment−OperatinglossfortheninemonthsendedSeptember30,2024,was3,254,000, a decrease of 36.8% compared to 5,151,000forthesameperiodin2023[100].−Agoodwillimpairmentchargeof631,000 was recorded for the three months ended September 30, 2024, as the carrying value of the SaaS Solution reporting segment exceeded its expected fair value[99]. - The net loss for the nine months ended September 30, 2024, was 3,280,000,adecreasefromanetlossof5,077,000 for the same period in 2023, indicating improved financial performance[103]. - For the three months ended September 30, 2024, the net loss increased to 1,300,000from1,132,000 in the same period of 2023, reflecting ongoing challenges[104]. - An impairment charge of 631,000wasrecordedfortheSaaSSolutionsreportingunitduetoadeclineinfairvalue,whilenoimpairmentwasidentifiedforotherlong−livedassets[121].CashFlowandFinancialPosition−Cashusedinoperatingactivitiesdecreasedto2,523,000 for the nine months ended September 30, 2024, compared to 4,910,000forthesameperiodin2023,showingbettercashmanagement[107].−AsofSeptember30,2024,thecompanyhadcash,cashequivalents,andrestrictedcashof2,371,000, up from 2,264,000asofDecember31,2023,primarilyduetoawarrantrepricingtransaction[106].−Netcashprovidedbyfinancingactivitieswas2,626,000 for the nine months ended September 30, 2024, down from $6,230,000 for the same period in 2023, indicating reduced capital raising activities[109]. Future Outlook and Risks - The company expects to continue generating losses and negative cash flows from operations for the foreseeable future, raising concerns about its ability to sustain operations beyond 12 months[110]. - The company may face challenges in raising additional capital due to unfavorable market conditions, which could adversely affect its business and financial condition[111]. - The security situation in Israel has had an immaterial effect on operations and financial results, attributed to the company's global footprint and reliance on Amazon for inventory fulfillment[87]. - The company has not entered into transactions with unconsolidated entities that expose it to material risks or contingent liabilities[113]. Valuation and Growth Assumptions - The discount rate for the SaaS Solutions reporting unit remained at 25% as of September 30, 2024, while the revenue growth rate was adjusted to a range of 4%-32%[120].
