Financial Performance - The company reported revenues from product sales of $60,377 for the six months ended June 30, 2024, a decrease of 61.7% compared to $157,618 for the same period in 2023[11]. - Gross profit for the six months ended June 30, 2024, was $26,615, down 69.7% from $87,865 in the prior year[11]. - The company incurred a net loss of $1,622,500 for the six months ended June 30, 2024, compared to a net loss of $2,436,484 for the same period in 2023, representing a 33.5% improvement[11]. - The company reported a basic and diluted loss per share of $0.49 for the six months ended June 30, 2024, compared to $2.8 for the same period in 2023[11]. - The company reported a comprehensive loss of $787,448 for the period ending June 30, 2024, compared to a loss of $1,713,678 for the same period in 2023, indicating a decrease in losses[16]. - The company reported a net loss of $(611,311) for the six months ended June 30, 2024, compared to a net loss of $(1,765,274) for the same period in 2023[70]. Assets and Liabilities - Total current assets as of June 30, 2024, were $5,463,727, slightly down from $5,465,621 as of December 31, 2023[9]. - Total liabilities increased to $1,594,040 as of June 30, 2024, compared to $785,653 at the end of 2023[10]. - The company’s accumulated deficit reached $30,917,247 as of June 30, 2024, up from $29,360,235 at the end of 2023[10]. - The company’s cash and cash equivalents were $4,467,529 as of June 30, 2024, compared to $4,447,003 at the end of 2023[9]. - As of June 30, 2024, the company's cash, cash equivalents, and restricted cash totaled $4,490,266, an increase from $3,017,403 at the end of the same period in 2023[23]. - The Company holds a convertible loan with a fair value of $1,164,500 as of June 30, 2024, which is part of its total assets valued at $1,931,129[44]. Operational Changes and Corporate Actions - The company changed its name from "Save Foods, Inc." to "N2OFF, Inc." and its trading symbol from "SVFD" to "NITO" on March 19, 2024[6]. - The company entered into a merger agreement on November 6, 2023, which was approved by stockholders and became effective on November 10, 2023, resulting in a change of corporate structure[25]. - A reverse stock split of one for seven was executed on October 5, 2023, affecting the outstanding common stock[28]. - The Company approved a credit facility of up to $250,000 to Plantify, of which $162,000 was borrowed as of June 30, 2024, at an interest rate of 8% per annum[54]. - The Company entered into a Loan Agreement to loan Solterra €500,000 (approximately $541,541) at an interest rate of 7% per annum[57]. Research and Development - The company’s research and development expenses for the six months ended June 30, 2024, were $127,556, a decrease from $135,765 in the same period of 2023[11]. Strategic Partnerships and Investments - The company has engaged in new strategic partnerships, including a securities exchange agreement with Plantify Foods, Inc., focusing on plant-based products[26]. - The Company entered into a Securities Exchange Agreement with Plantify, exchanging 19.99% of each other's capital stock[47]. - Following a rights offering, the Company increased its ownership in Plantify to approximately 23% by acquiring an additional 55,004,349 common shares[49]. - The Company agreed to lend C$1,500,000 (approximately US$1,124,000) to Plantify under a debenture with an 8% annual interest rate, repayable by October 4, 2024[48]. Impact of Geopolitical Conditions - The company’s operations are significantly impacted by geopolitical conditions in Israel, where most of its business activities are conducted[31]. - Following the attacks in October 2023, Israel's economic activity decreased, leading to supply chain disruptions and a rise in foreign currency exchange rates against the New Israel Shekel[34]. - Save Foods Ltd. experienced delays in pilots and packaging activities due to the war, impacting potential collaborations with packing houses[35]. - The ongoing conflict may lead to further disruptions in operations and financial results for the Company[34]. - The Company is monitoring the situation and assessing its impact on operations and asset values[36]. Cash Flow and Financing Activities - The company incurred a net cash used in operating activities of $2,037,468 for the six months ended June 30, 2024, compared to $1,634,418 for the same period in 2023, reflecting increased operational costs[23]. - The company reported a significant decrease in cash flows from investing activities, with net cash used amounting to $161,886 for the six months ended June 30, 2024, compared to $1,101,669 in the same period of 2023[23]. Stock and Compensation - The Company issued 1,170,813 shares of common stock valued at $977,044 under the Standby Equity Purchase Agreement during the six months ended June 30, 2024[59]. - The Company recorded share-based compensation expenses of $187,935 related to shares issued to service providers during the six months ended June 30, 2024[63]. - The outstanding stock options as of June 30, 2024, were 27,518, with a weighted average exercise price of $23.69[65]. - Directors' compensation for the six months ended June 30, 2024, was $170,275, a decrease from $192,789 in the same period of 2023[67]. Revenue Sources - Revenue from Israel increased significantly to $19,303 for the six months ended June 30, 2024, compared to $5,221 in the same period of 2023[70]. - The company reported a significant increase in sales from Peru, generating $2,100 for the six months ended June 30, 2024, compared to no sales in the same period of 2023[70]. - Sales to Customer B were $38,974 for the six months ended June 30, 2024, compared to $41,554 in the same period of 2023[72].
Save Foods(SVFD) - 2024 Q2 - Quarterly Report