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Save Foods(SVFD) - 2022 Q3 - Quarterly Report
SVFDSave Foods(SVFD)2022-11-14 21:30

Financial Performance - Revenues from product sales for the nine months ended September 30, 2022, were 169,943,adecreaseof31.7169,943, a decrease of 31.7% from 248,840 in the same period of 2021[23] - Gross profit for the nine months ended September 30, 2022, was 90,694,down50.190,694, down 50.1% from 180,909 in the prior year[23] - The operating loss for the nine months ended September 30, 2022, was 4,390,447,comparedto4,390,447, compared to 3,131,966 in the same period of 2021, indicating an increase of 40.2%[23] - Net loss attributable to the Company's stockholders' equity for the nine months ended September 30, 2022, was 4,345,833,comparedto4,345,833, compared to 3,260,924 in the same period of 2021, reflecting a rise of 33.2%[23] - The net loss for the nine months ended September 30, 2022, was 4,372,949,comparedtoalossof4,372,949, compared to a loss of 3,295,803 for the same period in 2021, representing an increase of approximately 32.7%[28] - Total revenue for the nine months ended September 30, 2022 was 169,943,adecreaseof169,943, a decrease of 78,897, or 32%, compared to 248,840forthesameperiodin2021[95]−GrossprofitforthethreemonthsendedSeptember30,2022was248,840 for the same period in 2021[95] - Gross profit for the three months ended September 30, 2022 was 26,831, an increase of 9,112,or519,112, or 51%, compared to 17,719 for the same period in 2021[88] - Total comprehensive loss for the three months ended September 30, 2022 was 1,769,175,anincreaseof1,769,175, an increase of 468,892, or 36%, compared to 1,300,283forthesameperiodin2021[93]Expenses−Researchanddevelopmentexpensesincreasedto1,300,283 for the same period in 2021[93] Expenses - Research and development expenses increased to 521,239 for the nine months ended September 30, 2022, compared to 363,003inthesameperiodof2021,representingariseof43.7363,003 in the same period of 2021, representing a rise of 43.7%[23] - Research and development expenses for the three months ended September 30, 2022 were 198,501, an increase of 132,031,or199132,031, or 199%, compared to 66,470 for the same period in 2021[89] - Selling and marketing expenses for the three months ended September 30, 2022 were 117,107,anincreaseof117,107, an increase of 48,088, or 70%, compared to 69,019forthesameperiodin2021[90]−GeneralandadministrativeexpensesforthethreemonthsendedSeptember30,2022were69,019 for the same period in 2021[90] - General and administrative expenses for the three months ended September 30, 2022 were 1,495,395, an increase of 320,658,or27320,658, or 27%, compared to 1,174,737 for the same period in 2021[91] - The company recorded 105,358inshare−basedcompensationexpensesrelatedtotheFebruary2022WarrantduringtheninemonthsendedSeptember30,2022[41]−Thecompanyrecordedshare−basedcompensationexpensesof105,358 in share-based compensation expenses related to the February 2022 Warrant during the nine months ended September 30, 2022[41] - The company recorded share-based compensation expenses of 136,000 during the nine months ended September 30, 2022, related to a consulting agreement[49] - The company incurred stock-based compensation costs of 65,270fortheninemonthsendedSeptember30,2022,comparedto65,270 for the nine months ended September 30, 2022, compared to 202,966 for the same period in 2021, indicating a decrease of approximately 67.8%[57] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2022, were 6,689,979,slightlydownfrom6,689,979, slightly down from 6,750,938 as of December 31, 2021[21] - The total cash and cash equivalents at the end of the period was 6,739,686,adecreasefrom6,739,686, a decrease from 7,826,045 at the end of the same period in 2021, representing a decline of about 13.9%[29] - Cash used in operating activities for the nine months ended September 30, 2022, was 4,126,702,upfrom4,126,702, up from 3,189,906 in 2021, indicating a year-over-year increase of about 29.4%[29] - Net cash used in operating activities was 4,126,702fortheninemonthsendedSeptember30,2022,comparedto4,126,702 for the nine months ended September 30, 2022, compared to 3,189,906 for the same period in 2021, reflecting an increase primarily due to a net loss of 4,372,949[111]−Netcashusedininvestingactivitieswas4,372,949[111] - Net cash used in investing activities was 35,430 for the nine months ended September 30, 2022, up from 23,760forthesameperiodin2021,mainlyduetoincreasedpurchasesofpropertyandequipment[112]−Netcashprovidedbyfinancingactivitieswas23,760 for the same period in 2021, mainly due to increased purchases of property and equipment[112] - Net cash provided by financing activities was 4,097,441 for the nine months ended September 30, 2022, a decrease from 10,766,033forthesameperiodin2021,attributedtolowerproceedsfromtheAugust2022UnderwrittenOfferingcomparedtotheMay2021UnderwrittenOffering[112]−Thecompanyanticipatesthatitscashbalanceswillbesufficienttoconductoperationsforatleasttwelvemonthsfromthedateofthefinancialstatements[109]ShareholderEquityandStock−Totalstockholders′equityincreasedto10,766,033 for the same period in 2021, attributed to lower proceeds from the August 2022 Underwritten Offering compared to the May 2021 Underwritten Offering[112] - The company anticipates that its cash balances will be sufficient to conduct operations for at least twelve months from the date of the financial statements[109] Shareholder Equity and Stock - Total stockholders' equity increased to 7,016,578 as of September 30, 2022, from 6,412,611asofDecember31,2021,markinganincreaseof9.46,412,611 as of December 31, 2021, marking an increase of 9.4%[21] - Loss per share (basic and diluted) for the nine months ended September 30, 2022, was (1.39), compared to (1.49)inthesameperiodof2021[23]−Thecompanyissued1,600,000shares,netofissuancecostsof(1.49) in the same period of 2021[23] - The company issued 1,600,000 shares, net of issuance costs of 696,670, during the reporting period[26] - The company completed a public offering of 1,600,000 shares at a price of 3.00pershareonAugust15,2022[71]−Thecompanyraised3.00 per share on August 15, 2022[71] - The company raised 4,800,000 from a public offering of 1,600,000 shares at 3.00pershareonAugust15,2022[33]−Thecompanyplanstoissue50,000sharesofCommonStocktoaconsultantunderaninvestorrelationsconsultingagreement,withquarterlyissuancesof9,000sharescommencingJanuary1,2023[66]−Thecompanyadoptedthe2022ShareIncentivePlan,allowingforthegrantofupto1,000,000optionstoserviceproviders[62]−Thecompanyhad234,674stockoptionsoutstandingasofSeptember30,2022,withaweightedaverageexercisepriceof3.00 per share on August 15, 2022[33] - The company plans to issue 50,000 shares of Common Stock to a consultant under an investor relations consulting agreement, with quarterly issuances of 9,000 shares commencing January 1, 2023[66] - The company adopted the 2022 Share Incentive Plan, allowing for the grant of up to 1,000,000 options to service providers[62] - The company had 234,674 stock options outstanding as of September 30, 2022, with a weighted average exercise price of 3.00[56] - The aggregate intrinsic value of the stock options outstanding as of September 30, 2022, was 27,364,basedonthecompany′sstockpriceof27,364, based on the company's stock price of 1.90[56] Risks and Uncertainties - The company continues to face uncertainties due to the COVID-19 pandemic, impacting global supply chains and economic activity, although manufacturing operations remain uninterrupted[34] - The company faces various risks that could materially impact its business operations or financial results, as outlined in its 2021 Annual Report[122] Internal Controls - As of September 30, 2022, the company's disclosure controls and procedures were evaluated and deemed effective by the Chief Executive Officer and Chief Financial Officer[119] - There were no changes in internal control over financial reporting during the period covered by this report that materially affected the company's internal control[120]