Odysight.ai Inc(ODYS) - 2024 Q3 - Quarterly Report

Financial Performance - Revenues for the nine months ended September 30, 2024, reached $2,660,000, a significant increase of 145$1,087,000 for the same period in 2023[21]. - Gross profit for the three months ended September 30, 2024, was $405,000, compared to a gross loss of$211,000 in the same quarter of 2023, indicating a turnaround in profitability[21]. - The net loss for the nine months ended September 30, 2024, was $8,211,000, slightly higher than the net loss of$8,104,000 for the same period in 2023[21]. - For the nine months ended September 30, 2024, the net loss was $8,211 thousand compared to a net loss of$8,104 thousand for the same period in 2023, reflecting a slight increase in losses[31]. - Operating loss for the nine months ended September 30, 2024, was $8,744,000, a slight improvement from an operating loss of$8,770,000 in the prior year[99]. - For the three months ended September 30, 2024, revenues surged by 1,075% to $1,292,000, compared to$110,000 in the same quarter of 2023[108][109]. - Operating loss for the three months ended September 30, 2024, was $3,016,000, an increase of$144,000 or 5% compared to a loss of $2,872,000 in the prior year[123]. Assets and Liabilities - As of September 30, 2024, total assets increased to$26,173,000 from $22,829,000 as of December 31, 2023, representing a growth of approximately 14.5$20,906,000 as of September 30, 2024, up from $8,945,000 at the end of 2023, reflecting improved liquidity[16]. - Total current liabilities rose to$2,924,000 as of September 30, 2024, from $2,082,000 at the end of 2023, reflecting increased operational commitments[19]. - The accumulated deficit increased to$42,418,000 as of September 30, 2024, compared to $34,207,000 at the end of 2023, highlighting ongoing challenges in achieving profitability[19]. - As of September 30, 2024, the company had total lease liabilities of$1,069 thousand[50]. Cash Flow - Cash flows used in operating activities for the nine months ended September 30, 2024, were $5,522 thousand, an improvement from$7,338 thousand in the same period of 2023[31]. - The company reported a net cash inflow from investing activities of $7,962 thousand for the nine months ended September 30, 2024, compared to a net outflow of$594 thousand in the same period of 2023[31]. - Cash provided by financing activities was $9,850,000 for the nine months ended September 30, 2024, compared to$13,835,000 in the previous year[107]. - Cash used in operating activities was $2,199,000 for the three months ended September 30, 2024, compared to$2,255,000 in the same period of 2023[128]. - Cash provided by financing activities was $9.9 million for the three months ended September 30, 2024, compared to cash used of$78,000 in the same period of 2023[133]. Research and Development - Research and development expenses for the nine months ended September 30, 2024, were $4,705,000, compared to$4,107,000 for the same period in 2023, indicating continued investment in innovation[21]. - Research and development expenses increased by 15% to $4,705,000 for the nine months ended September 30, 2024, compared to$4,107,000 in 2023[91]. - Research and development expenses rose to $1,730,000, an increase of$376,000 or 28% from $1,354,000 in the same period last year[117]. - The company expects to continue incurring significant research and development costs, necessitating additional funding to sustain operations until profitability is achieved[38]. Share Issuance and Stock Options - The company issued 2,145,000 shares during the nine months ended September 30, 2024, contributing to an increase in additional paid-in capital to$63,319,000[24]. - The weighted average ordinary shares outstanding increased to 11,054,000 for the nine months ended September 30, 2024, compared to 9,395,000 for the same period in 2023, indicating dilution from share issuances[21]. - The company granted 760,500 stock options during the nine months ended September 30, 2024, with a weighted average exercise price of $4.76[62]. - The fair value of stock options granted during the nine months ended September 30, 2024, is estimated to be approximately$3,692 thousand[60]. - The company recognized total stock-based payment expenses of $1,500 thousand for the nine months ended September 30, 2024, compared to$1,056 thousand in the same period of 2023, an increase of 42.0%[65]. Revenue Breakdown - Development services revenues for the nine months ended September 30, 2024, amounted to $843 thousand, compared to$317 thousand in the same period of 2023, reflecting a growth of 165.3%[66]. - Product revenues reached $1,817 thousand for the nine months ended September 30, 2024, up from$770 thousand in the same period of 2023, indicating an increase of 135.5%[66]. - Total revenues for the nine months ended September 30, 2024, were $2,660 thousand, a significant increase from$1,087 thousand in the same period of 2023, representing a growth of 145.5%[66]. - Cost of revenues for the nine months ended September 30, 2024, was $1,964,000, an increase of 19$1,648,000 in the prior year[86]. - Gross profit for the nine months ended September 30, 2024, was $696,000, a turnaround from a gross loss of$561,000 in the same period of 2023[88].