Odysight.ai Inc(ODYS) - 2024 Q4 - Annual Report

Financial Performance - Revenues for the year ended December 31, 2024, were $3,964,000, an increase of 31$3,033,000 in 2023[305] - Gross profit for 2024 was $1,157,000, reflecting a 127$509,000 in 2023[310] - Operating loss for 2024 was $12,507,000, an 18$10,633,000 in 2023[305] - The operating loss for the year ended December 31, 2024 was $12,507,000, an increase of$1,874,000, or 18%, compared to an operating loss of $10,633,000 for the year ended December 31, 2023[323] Expenses - Research and development expenses increased by 23$6,884,000 in 2024 from $5,602,000 in 2023, driven by new product development and increased payroll[314] - Sales and marketing expenses for the year ended December 31, 2024 were$1,218,000, an increase of $109,000, or 10$1,109,000 for the year ended December 31, 2023[317] - General and administrative expenses for the year ended December 31, 2024 were $5,562,000, an increase of$1,131,000, or 26%, compared to $4,431,000 for the year ended December 31, 2023[321] - Cost of revenues for 2024 was$2,807,000, an 11% increase from $2,524,000 in 2023, primarily due to increased revenues[308] Backlog and Demand - The backlog as of December 2024 was approximately$15 million, up from $2.6 million as of December 31, 2023, indicating strong demand from government and defense clients[287] - Backlog as of December 31, 2024 was approximately$15 million compared to approximately $2.6 million as of December 31, 2023[325] Cash Flow and Financial Position - As of December 31, 2024, the company had cash, cash equivalents, and restricted deposits of$18.5 million compared to $17 million as of December 31, 2023[326] - The accumulated deficit as of December 31, 2024 was approximately$46 million, compared to $34.2 million as of December 31, 2023[326] - Cash used in operating activities for the year ended December 31, 2024 was$8,217,000, compared to $10,009,000 for the year ended December 31, 2023[331] - Cash provided by investing activities for the year ended December 31, 2024 was$7,637,000, compared to cash used of $5,113,000 for the year ended December 31, 2023[331] - Cash provided by financing activities for the year ended December 31, 2024 was$9,818,000, compared to $13,809,000 for the year ended December 31, 2023[331] - The total future payments for operating lease obligations as of December 31, 2024 were approximately$1.2 million[337] Product and Market Focus - The Odysight TruVision solution is utilized by NASA and has applications in aerospace, Industry 4.0, and medical sectors, enhancing safety and reducing downtime[286] - The company is focusing on R&D activities in Industry 4.0, which is expected to further increase research and development expenses[316] External Factors - The ongoing conflict in Israel has not materially affected the company's business, although it has caused some minor disruptions and delays in transactions[290]