SaverOne 2014 .(SVRE) - 2024 Q4 - Annual Report

Financial Performance - Total revenue decreased by NIS 1,037 thousand (~ $284 thousand), or 38$461 thousand) for the year ended December 31, 2024, compared to NIS 2,720 thousand (~ $746 thousand) for the year ended December 31, 2023[299]. - Cost of revenues decreased by NIS 899 thousand (~$247 thousand), or 46%, to NIS 1,069 thousand (~ $293 thousand) for the year ended December 31, 2024, compared to NIS 1,968 thousand (~$540 thousand) for the year ended December 31, 2023[300]. - Research and development expenses, net decreased by NIS 3,464 thousand (~ $950 thousand), or 15$5,319 thousand) for the year ended December 31, 2024, compared to NIS 22,861 thousand (~ $6,268 thousand) for the year ended December 31, 2023[301]. - Selling and marketing expenses increased by NIS 1,009 thousand (~$277 thousand), or 27%, to NIS 4,796 thousand (~ $1,315 thousand) for the year ended December 31, 2024, compared to NIS 3,787 thousand (~$1,038 thousand) for the year ended December 31, 2023[302]. - General and administrative expenses increased by NIS 1,346 thousand (~ $369 thousand), or 16$2,652 thousand) for the year ended December 31, 2024, compared to NIS 8,327 thousand (~ $2,283 thousand) for the year ended December 31, 2023[303]. - Net loss increased by NIS 1,103 thousand (~$302 thousand), or 3%, to NIS 34,938 thousand (~ $9,580 thousand) for the year ended December 31, 2024, compared to NIS 33,835 thousand (~$9,277 thousand) for the year ended December 31, 2023[305]. - For the year ended December 31, 2024, the company reported a comprehensive loss of approximately $9.4 million (NIS 34.4 million) and negative cash flow from operating activities of approximately$9.4 million (NIS 34.9 million)[314]. Cash and Financing Activities - As of December 31, 2024, the company had cash and cash equivalents of approximately $3.64 million (NIS 13.3 million) and an accumulated deficit of approximately$46.1 million (NIS 170.5 million)[312][314]. - Net cash used in operating activities decreased by approximately $168 thousand (NIS 614 thousand), or 2$9.43 million (NIS 34.406 million) for the year ended December 31, 2024[326]. - Net cash provided by financing activities increased by approximately $2.21 million (NIS 8.045 million), or 36$8.37 million (NIS 30.535 million) for the year ended December 31, 2024[328]. - On June 25, 2024, the company raised approximately $1.13 million through the issuance of 12,555,555 ordinary shares[319]. - The company entered into a SEPA with Yorkville, committing to purchase up to$15 million of ADSs over a three-year period[320]. - As of the date of the annual report, the company had issued an aggregate of approximately $5.84 million in ordinary shares to YA as Advance Shares[321]. - On January 31, 2025, the company sold an aggregate of 195,428,970 ordinary shares at an offering price of$9.331 per ADS, raising approximately $1.5 million[324]. Market and Product Development - The global automotive RF-sensor market for VRU detection is projected to potentially reach$1.5 billion annually by 2035[284]. - Approximately 5,400 systems have been ordered as of March 19, 2025, with about 4,000 systems installed[280]. - The second-generation DDPS product was released in Q4 2022 and is intended for the global automobile market, with significant improvements over the first generation[281]. Risks and Challenges - The company anticipates continuing to incur net losses for the foreseeable future as it develops and commercializes its products[317]. - The company has identified material weaknesses in its internal control over financial reporting and is taking steps to address these issues[310]. - A 5% change in the U.S. dollar/NIS exchange rate would increase/decrease operating expenses by approximately 1% for the year ended December 31, 2024[500]. - The exchange rate between the U.S. dollar and the NIS increased by 0.5% during the year ended December 31, 2024, and by 3% during the year ended December 31, 2023[501]. - The company does not hedge foreign currency exchange risk currently but may consider formal currency hedging transactions in the future[500]. - The company assesses credit risk primarily through the quality of customers and recognizes provisions for credit losses based on specific customers not meeting payment terms[495]. - The company believes minimal credit risk exists with cash and cash equivalents held at a major financial institution in Israel[494]. - The company does not believe that changes in equity prices pose a material risk to its holdings, but a decrease in market price could affect future fundraising[496]. - The company is exposed to risks from changes in the quoted price of warrants issued during its IPO, which are treated as a derivative financial liability[497]. - The company does not expect inflation to materially affect its business or financial condition in the reporting period[499]. - The company may face challenges in offsetting higher costs due to inflationary pressures through hedging transactions[499].