Odysight.ai Inc(ODYS) - 2023 Q2 - Quarterly Report

Financial Performance - Revenues for the six months ended June 30, 2023, were $977,000, a 163$372,000 for the same period in 2022[21]. - Revenues for the three months ended June 30, 2023, were $674,000, an increase of$304,000, or 82%, compared to $370,000 for the same period in 2022[100][101]. - Gross loss decreased to$350,000 for the six months ended June 30, 2023, compared to a gross loss of $477,000 for the same period in 2022, reflecting improved operational efficiency[21]. - Gross loss for the three months ended June 30, 2023, was$103,000, a decrease of $88,000, or 46$191,000 for the same period in 2022[100][105]. - Operating loss for the six months ended June 30, 2023, was $5,898,000, compared to an operating loss of$5,350,000 for the same period in 2022[21]. - Operating loss for the three months ended June 30, 2023, was $3,119,000, an increase of$538,000 compared to an operating loss of $2,581,000 for the same period in 2022[100][115]. - Net loss for the six months ended June 30, 2023, was$5,562,000, slightly higher than the net loss of $5,560,000 for the same period in 2022[21]. Expenses - Research and development expenses rose to$2,753,000 for the six months ended June 30, 2023, up 39.2% from $1,975,000 in the same period of 2022[21]. - Research and development expenses for the three months ended June 30, 2023, were$1,355,000, an increase of $334,000, or 33$1,021,000 for the same period in 2022[100][108]. - Sales and marketing expenses increased by 50% to $669,000 for the six months ended June 30, 2023, from$446,000 in 2022[86]. - Sales and marketing expenses for the three months ended June 30, 2023, were $493,000, an increase of$290,000, or 143%, compared to $203,000 for the same period in 2022[100][110]. - General and administrative expenses decreased by 13$2,126,000 for the six months ended June 30, 2023, compared to $2,452,000 in 2022[90]. - Total stock-based payment expenses for the six months ended June 30, 2023, amounted to$685,000, distributed across various expense categories[60]. Assets and Equity - Total assets increased to $26,409,000 as of June 30, 2023, up from$16,895,000 at the end of 2022, representing a 56.5% growth[15]. - Total shareholders' equity increased to $20,796,000 as of June 30, 2023, from$11,786,000 at the end of 2022, marking a 76.2% increase[18]. - Cash and cash equivalents decreased to $3,319,000 as of June 30, 2023, down from$10,099,000 at the end of 2022, indicating a cash outflow[15]. - The accumulated deficit as of June 30, 2023, was approximately $30.3 million, compared to$24.8 million as of December 31, 2022[122]. Funding and Capital - The company issued 3,294,000 shares and warrants, raising $13,887,000 in additional paid-in capital during the first half of 2023[24]. - The company raised$14 million through a private placement on March 16, 2023, selling 3,294,117 units at a price of $4.25 per unit[51]. - The company expects to incur significant research and development costs, necessitating additional funding to continue operations until profitability is achieved[39]. - The company expects to incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution[124]. Lease and Liabilities - As of June 30, 2023, the company had total lease liabilities of$571,000, with future lease payments totaling $622,000[50]. - The company has a weighted average remaining lease term of 0.9 years and a weighted average discount rate of 6$3.68[57]. Product and Technology - The company’s products utilize micro visualization technology for minimally invasive medical procedures, targeting various industries including aviation and energy[37]. - Remaining Performance Obligations (RPO) as of June 30, 2023, amounted to $2.9 million, expected to be recognized over the product's manufacturing term[64]. Cash Flow - Cash used in operating activities was$5,083,000 for the six months ended June 30, 2023, compared to $2,398,000 in 2022[93]. - Cash used in investing activities was$15,557,000 for the six months ended June 30, 2023, compared to cash provided of $1,458,000 in 2022[98]. - Cash used in operating activities for the three months ended June 30, 2023, was$2.6 million, consisting of a net loss of $2.9 million[116][118].