Silynxcom(SYNX) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenue for the six-month period ended June 30, 2024, was $5,356,000, representing an increase of 73$3,096,000 for the same period in 2023[12] - Gross profit for the same period was $2,650,000, up from$1,195,000, indicating a gross margin improvement[12] - Operating profit for the six-month period was $267,000, a significant recovery from an operating loss of$2,328,000 in the prior year[12] - Net loss for the period was $696,000, compared to a net loss of$2,326,000 in the same period last year, showing a reduction in losses[12] - Revenue from Israel increased significantly to $3,613,000 in June 2024, up from$1,260,000 in June 2023, marking a 187% growth[72] - The loss for the six months ended June 30, 2024, is $696,000, a decrease from a loss of$2,326,000 for the same period in 2023[81] Assets and Liabilities - Total current assets increased to $8,682,000 as of June 30, 2024, from$5,961,000 at the end of 2023, reflecting a growth of 45%[6] - Total liabilities decreased to $2,310,000 as of June 30, 2024, down from$3,945,000 at the end of 2023, a reduction of 41%[10] - Shareholders' equity increased to $6,616,000 as of June 30, 2024, compared to$2,221,000 at the end of 2023, marking a growth of 198%[10] - Cash and cash equivalents at the end of the period were $668,000, up from$568,000 at the beginning of the year, indicating a positive cash flow[16] - The company has a marketable securities fair value of $2,991,000 as of June 30, 2024[65] IPO and Equity - The company issued common stock in the IPO, netting$4,254,000, which contributed to the increase in shareholders' equity[14] - On January 17, 2024, the company completed its IPO, raising gross proceeds of $5,000,000 from the sale of 1,250,000 ordinary shares at$4.00 per share[61] - The company incurred direct equity transaction costs of $575,000 in cash and$2,839,000 in non-cash costs related to the IPO[61] - On July 11, 2024, the company issued 36,982 ordinary shares as part of the SAFE conversion and investment agreement in connection with the IPO[82] Research and Development - Research and development expenses for the period were $259,000, down from$569,000 in the previous year, reflecting a focus on cost management[12] - Research and development expenses for the six months ended June 30, 2024, are $29,000, down from$69,000 in the same period in 2023[80] Market and Operational Conditions - The company experienced a significant increase in demand for its products from the Israel Defense Forces since October 7, 2023[39] - The ongoing geopolitical instability in Israel may adversely affect the company's operations and future sales[33] - The company has not experienced significant supply chain disruptions since the outbreak of hostilities on October 7, 2023[35] - The company’s commercial insurance does not cover losses from war and terrorism, which could materially affect its business[38] - The company’s management believes that its current resources are sufficient for the foreseeable future following the IPO[29] Other Financial Metrics - The company reported a gross profit increase driven by higher sales in the In-Ear Headset systems, which generated $3,389,000 in revenue for June 2024, compared to$2,143,000 in June 2023[72] - The company reported a current loss of $696,000 and an accumulated loss of$20,969,000[29] - The company exercised 456,000 SAFE and 165,000 warrants, impacting the balance of liabilities measured at level 3[70] - The expected volatility in Silynxcom's share price is estimated at 41%[66] - As of December 31, 2023, the estimated value of the SAFE is $409,000, while the value of the warrants is$165,000[69][66]