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Odysight.ai Inc(ODYS) - 2024 Q1 - Quarterly Report
ODYSOdysight.ai Inc(ODYS)2024-05-15 20:06

Financial Performance - Total revenues for the three months ended March 31, 2024, were 187,000,adecreaseof38.3187,000, a decrease of 38.3% compared to 303,000 for the same period in 2023[19]. - The net loss for the three months ended March 31, 2024, was 3,162,000,comparedtoanetlossof3,162,000, compared to a net loss of 2,686,000 in the same period of 2023, representing an increase of 17.7%[19]. - Operating loss for the three months ended March 31, 2024, was 3,364,000,anincreaseof3,364,000, an increase of 585,000 or 21% compared to an operating loss of 2,779,000in2023[80].−Cashusedinoperatingactivitieswas2,779,000 in 2023[80]. - Cash used in operating activities was 1,230,000 for the three months ended March 31, 2024, compared to 2,474,000inthesameperiodof2023[82].RevenueBreakdown−DevelopmentservicesrevenuefromaFortune500customeramountedto2,474,000 in the same period of 2023[82]. Revenue Breakdown - Development services revenue from a Fortune 500 customer amounted to 106 thousand, while product revenue was 81thousand,downfrom81 thousand, down from 197 thousand in the previous year[51]. - For the three months ended March 31, 2024, total revenue was 187thousand,adecreaseof38.3187 thousand, a decrease of 38.3% compared to 303 thousand for the same period in 2023[51]. - Revenues for the three months ended March 31, 2024, were 187,000,adecreaseof187,000, a decrease of 116,000 or 38% compared to 303,000inthesameperiodof2023[64].Expenses−Researchanddevelopmentexpensesincreasedto303,000 in the same period of 2023[64]. Expenses - Research and development expenses increased to 1,567,000 in Q1 2024, up 12.1% from 1,398,000inQ12023[19].−Salesandmarketingexpensesroseto1,398,000 in Q1 2023[19]. - Sales and marketing expenses rose to 234,000, an increase of 58,000or3358,000 or 33% compared to 176,000 in the same period of 2023[76]. - General and administrative expenses increased to 1,340,000,up1,340,000, up 382,000 or 40% from 958,000intheprioryear[79].−Thecompanyreportedtotalstock−basedpaymentexpensesof958,000 in the prior year[79]. - The company reported total stock-based payment expenses of 500 thousand for the three months ended March 31, 2024, compared to 348thousandinthesameperiodof2023[50].AssetsandEquity−Totalassetsdecreasedto348 thousand in the same period of 2023[50]. Assets and Equity - Total assets decreased to 20,541,000 as of March 31, 2024, down 10.0% from 22,829,000asofDecember31,2023[15].−Cashandcashequivalentsdecreasedto22,829,000 as of December 31, 2023[15]. - Cash and cash equivalents decreased to 7,362,000 as of March 31, 2024, down 17.7% from 8,945,000attheendof2023[15].−Totalshareholders′equitydecreasedto8,945,000 at the end of 2023[15]. - Total shareholders' equity decreased to 15,145,000 as of March 31, 2024, down 15.0% from 17,807,000asofDecember31,2023[18].FutureOutlook−Thecompanyexpectstocontinueincurringsignificantresearchanddevelopmentcosts,requiringadditionalfundingtosustainfutureoperationsuntilprofitabilityisachieved[31].−Thecompanyexpectstoincursignificantcommercializationexpensesrelatedtoproductsales,marketing,manufacturing,anddistributionasitcontinuestodevelopitsI4.0solutions[90].ContractualObligations−RemainingPerformanceObligations(RPO)asofMarch31,2024,totaled17,807,000 as of December 31, 2023[18]. Future Outlook - The company expects to continue incurring significant research and development costs, requiring additional funding to sustain future operations until profitability is achieved[31]. - The company expects to incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution as it continues to develop its I4.0 solutions[90]. Contractual Obligations - Remaining Performance Obligations (RPO) as of March 31, 2024, totaled 2.2 million, expected to be recognized over the product's manufacturing term[54]. - Contract liabilities decreased to 2,247thousandfrom2,247 thousand from 2,322 thousand, with revenue recognized during the period amounting to 75thousand[53].−AsofMarch31,2024,totalcontractfulfillmentassetswere75 thousand[53]. - As of March 31, 2024, total contract fulfillment assets were 1,196 thousand, a decrease from 1,256thousandattheendof2023[52].LeaseObligations−Monthlyleasepaymentsfortheoriginalofficespaceareapproximately1,256 thousand at the end of 2023[52]. Lease Obligations - Monthly lease payments for the original office space are approximately 7 thousand, while the Ramat Gan office space incurs monthly payments of about 25thousand[39].−Thetotalfutureleasepaymentsunderoperatingleasesamountto25 thousand[39]. - The total future lease payments under operating leases amount to 1,547 thousand, with a total lease liability balance of $1,251 thousand as of March 31, 2024[41]. - The company has an option to terminate the lease for the original office space after three years, with the lease extended until December 31, 2028[38].