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Save Foods(SVFD) - 2023 Q1 - Quarterly Report
SVFDSave Foods(SVFD)2023-05-15 20:05

Financial Performance - Revenues from product sales for Q1 2023 were 121,010,comparedto121,010, compared to 87,630 in Q1 2022, representing an increase of 38%[20] - Gross profit for Q1 2023 was 78,264,upfrom78,264, up from 45,781 in Q1 2022, indicating a growth of 71%[20] - Operating loss for Q1 2023 was 1,743,653,comparedtoalossof1,743,653, compared to a loss of 1,345,674 in Q1 2022, reflecting an increase in losses of approximately 30%[20] - Net loss attributable to the Company's stockholders' equity for Q1 2023 was 1,713,678,comparedto1,713,678, compared to 1,329,750 in Q1 2022, which is an increase of about 29%[20] - For the three months ended March 31, 2023, the net loss was 1,721,549,comparedtoanetlossof1,721,549, compared to a net loss of 1,339,770 for the same period in 2022, representing an increase of approximately 28.5%[25] Cash and Assets - Cash and cash equivalents as of March 31, 2023, were 4,595,838,downfrom4,595,838, down from 5,700,709 as of December 31, 2022, a decrease of approximately 19%[18] - Total assets decreased to 5,471,548asofMarch31,2023,from5,471,548 as of March 31, 2023, from 6,492,213 as of December 31, 2022, a decline of about 16%[18] - Total cash, cash equivalents, and restricted cash decreased from 5,699,882attheendofQ12022to5,699,882 at the end of Q1 2022 to 4,644,600 at the end of Q1 2023, a decline of approximately 18.5%[25] Liabilities and Equity - Total liabilities as of March 31, 2023, were 696,922,downfrom696,922, down from 754,872 as of December 31, 2022, a decrease of approximately 8%[18] - The number of shares outstanding increased to 4,658,726 as of March 31, 2023, from 4,614,726 as of December 31, 2022[18] Expenses - Research and development expenses for Q1 2023 were 118,908,downfrom118,908, down from 209,362 in Q1 2022, a reduction of approximately 43%[20] - Selling and marketing expenses decreased to 69,146inQ12023from69,146 in Q1 2023 from 178,136 in Q1 2022, a decrease of about 61%[20] Future Outlook - The company has an accumulated deficit of 25millionandexpectstocontinuegeneratinglossesandnegativecashflowsfortheforeseeablefuture[31][32]−Managementbelievesexistingcashwillbesufficienttofundoperationsuntilmid−Q32024,indicatingsubstantialdoubtaboutthecompany′sabilitytocontinueasagoingconcern[32]−Thecompanyplanstosecureadditionalfinancingthroughthesaleofequitysecuritiesorstrategicpartnerships[33]StockandFinancingActivities−AsofMarch31,2023,thecompanyhad234,674stockoptionsoutstandingwithanaverageexercisepriceof25 million and expects to continue generating losses and negative cash flows for the foreseeable future[31][32] - Management believes existing cash will be sufficient to fund operations until mid-Q3 2024, indicating substantial doubt about the company's ability to continue as a going concern[32] - The company plans to secure additional financing through the sale of equity securities or strategic partnerships[33] Stock and Financing Activities - As of March 31, 2023, the company had 234,674 stock options outstanding with an average exercise price of 3.00[44] - The company issued 1,000,000 shares of Common Stock in April 2023, valued at approximately 678,000basedonthesharepriceatthetimeofissuance[43]−OnMarch31,2023,theCompanyenteredintoaSecuritiesExchangeagreementwithPlantify,resultingintheissuanceof1,164,374sharesofCommonStocktoPlantify,representing19.99678,000 based on the share price at the time of issuance[43] - On March 31, 2023, the Company entered into a Securities Exchange agreement with Plantify, resulting in the issuance of 1,164,374 shares of Common Stock to Plantify, representing 19.99% of Save Foods' outstanding capital stock prior to the Closing[58] - Plantify issued 30,004,349 common shares to the Company, also representing 19.99% of Plantify's outstanding capital stock prior to the Closing[58] - The Company agreed to lend C1,500,000 (approximately 1,124,000)toPlantifyatanannualinterestrateof81,124,000) to Plantify at an annual interest rate of 8%, repayable over approximately 18 months[59] - The Debenture has a maturity date of October 4, 2024, with the Principal convertible into common shares of Plantify at C0.05 per share within the first year[59] - On April 3, 2023, the Company issued 147,059 restricted shares of Common Stock to EU Agritech[60] - The Company issued 19,000 shares of Common Stock following Board approval on April 3, 2023[60] - An equity grant of 1,000,000 shares of Common Stock was approved for executive officers, employees, directors, and consultants on April 3, 2023[60]