Financial Performance - Total revenues from product sales for the six months ended June 30, 2023, were 118,710 for the same period in 2022[20] - Gross profit for the six months ended June 30, 2023, was 63,863 and a gross margin of 53.8% for the same period in 2022[20] - The net loss attributable to the company's stockholders for the six months ended June 30, 2023, was 2,586,420 for the same period in 2022[20] - For the six months ended June 30, 2023, the net loss was 2,603,774 in the same period of 2022, representing a decrease of approximately 6.4%[27] - The company reported a basic and diluted loss per share of 0.91 for the same period in 2022[20] Expenses - Research and development expenses for the six months ended June 30, 2023, were 322,738 for the same period in 2022[20] - Selling and marketing expenses decreased to 323,049 in the same period of 2022, reflecting a cost reduction strategy[20] - The company reported a decrease in general and administrative expenses, totaling 446,737 in 2022, with directors' compensation rising to 156,913[79] - Share-based compensation expenses for the six months ended June 30, 2023, totaled 14,247 related to stock-options compensation for employees and directors for the six months ended June 30, 2023[75] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2023, were 5,700,709 as of December 31, 2022[18] - Net cash used in operating activities was 2,355,007 in the prior year, indicating a decrease of about 30.6%[27] - The cash, cash equivalents, and restricted cash at the end of the period stood at 4,428,720 at the end of the same period in 2022, a decline of approximately 31.9%[27] - Management anticipates that existing cash will be sufficient to fund operations until the middle of the third quarter of 2024, indicating a potential liquidity concern[34] Assets and Investments - Total assets decreased to 6,492,213 as of December 31, 2022[18] - The fair value of the investment in Plantify as of June 30, 2023, was reported at 26,429 since initial recognition[51] - The convertible loan's fair value increased to 128,600 during the period[51] - The Company holds a 16.6% equity investment in Plantify, which is accounted for under the equity method, with fair value changes recognized in earnings[57] - As of June 30, 2023, Plantify's current assets were 2,365,000, indicating a working capital deficit[63] Strategic Partnerships and Agreements - The company is focused on establishing strategic partnerships and expanding its global distribution network to enhance market presence and product acceptance[12] - The company entered into a Securities Exchange agreement with Plantify on March 31, 2023, resulting in the issuance of 1,164,374 shares of common stock to Plantify, representing 19.99% of Save Foods' outstanding capital stock[54] - Save Foods agreed to lend C1,124,000) to Plantify under a debenture with an 8% annual interest rate, repayable over approximately 18 months[56] - A Standby Equity Purchase Agreement was entered into on July 23, 2023, allowing for the purchase of up to 1.2 million in three conditional installments[93] Sales Performance - Sales in Mexico significantly increased to 71,549,000 in 2022[83] - Sales to single customers exceeding 10% of total sales amounted to 107,497,000 in 2022[84]
Save Foods(SVFD) - 2023 Q2 - Quarterly Report