Odysight.ai Inc(ODYS) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues for the six months ended June 30, 2024, increased to $1,368,000 compared to$977,000 for the same period in 2023, representing a growth of 40%[21] - Gross profit for the three months ended June 30, 2024, was $514,000, a significant improvement from a loss of$103,000 in the same period of 2023[21] - The net loss for the six months ended June 30, 2024, was $5,344,000, compared to a net loss of$5,562,000 for the same period in 2023, indicating a reduction in losses[21] - For the six months ended June 30, 2024, the net loss was $5,344,000, a slight improvement from a net loss of$5,562,000 in the same period of 2023, representing a 3.9% decrease in losses[30] - Total revenues for the six months ended June 30, 2024, were $1.368 million, a 40$977 thousand in the same period of 2023[63] - Product revenues during the six months ended June 30, 2024, amounted to $1.157 million, up 51$766 thousand in the prior year[63] Expenses and Costs - Research and development expenses for the six months ended June 30, 2024, were $2,975,000, slightly higher than$2,753,000 in the same period of 2023[21] - Total stock-based payment expenses for the six months ended June 30, 2024, were $963 thousand, compared to$685 thousand in the same period of 2023, reflecting an increase of 41%[62] - The company expects to continue incurring significant research and development costs, necessitating additional funding to sustain operations until profitability is achieved[36] Cash Flow and Assets - Cash and cash equivalents increased to $13,238,000 as of June 30, 2024, from$8,945,000 as of December 31, 2023, representing a growth of approximately 48%[15] - Net cash flows used in operating activities for the six months ended June 30, 2024, were $3,323,000, compared to$5,083,000 in the same period of 2023, indicating a 34.6% reduction in cash outflow[30] - The company reported a significant increase in cash flows from investing activities, with net cash flows provided amounting to $7,970,000 for the six months ended June 30, 2024, compared to a cash outflow of$15,557,000 in the same period of 2023[30] - Total current assets decreased to $15,406,000 as of June 30, 2024, down from$19,349,000 as of December 31, 2023, reflecting a decline of approximately 20%[15] - The company’s cash and cash equivalents at the beginning of the period were $8,945,000, down from$10,099,000 in the previous year[30] Liabilities and Equity - Total liabilities increased slightly to $5,148,000 as of June 30, 2024, compared to$5,022,000 as of December 31, 2023[18] - Shareholders' equity decreased to $13,426,000 as of June 30, 2024, down from$17,807,000 as of December 31, 2023, a decline of approximately 25%[18] - As of June 30, 2024, the company had accumulated a deficit of approximately $39.5 million since its incorporation[36] Stock and Shares - The company reported a weighted average of 10,447,000 ordinary shares for the six months ended June 30, 2024, compared to 8,864,000 for the same period in 2023[21] - The company granted 91,000 stock options during the six months ended June 30, 2024, with a fair value cost estimated at approximately$435 thousand[57] - The company had outstanding warrants to purchase 5,763,273 shares of common stock as of June 30, 2024[50] - The company issued 2,144,583 shares of Common Stock at a price of $4.80 per share, raising approximately$10.3 million in the 2024 Private Placement[72][73] Inventory and Assets Management - Inventory as of June 30, 2024, totaled $439 thousand, a decrease from$504 thousand at the end of 2023[67] - As of June 30, 2024, the company's contract fulfillment assets were $1.136 million, down from$1.256 million at the end of 2023[64] - The total remaining performance obligations (RPO) as of June 30, 2024, amounted to $2.2 million, expected to be recognized over the product's manufacturing term[66] Lease and Operating Activities - Right-of-use assets obtained in exchange for operating lease liabilities amounted to$120,000 for the six months ended June 30, 2024, compared to $465,000 in the same period of 2023[32] - The company has a weighted average remaining lease term of 0.86 years for its operating leases as of June 30, 2024[46] - Monthly lease payments for the original office space in Omer, Israel, are approximately$7,000, while payments for the Ramat Gan office space are about $25,000[45] Development and Future Outlook - The company has been approved by the Israel Innovation Authority to enhance its production line and capabilities over the next 24 months, with a royalty obligation of 3% on the funding received[71] - The company has no assurance that forward-looking statements will occur due to various risks and uncertainties associated with its business[10]