GlucoTrack(GCTK) - 2019 Q1 - Quarterly Report

Financial Performance - Revenues for the three-month period ended March 31, 2019, were $25,562, a decrease from $28,209 in the prior-year period, indicating a decline of approximately 5.8%[101] - Research and development expenses decreased to $425,117 for the three-month period ended March 31, 2019, from $592,697 in the prior-year period, a reduction of approximately 28.3%[102] - Selling and marketing expenses were $125,343 for the three-month period ended March 31, 2019, down from $308,637 in the prior-year period, reflecting a decrease of approximately 59.3%[104] - General and administrative expenses decreased to $500,155 for the three-month period ended March 31, 2019, compared to $1,036,684 in the prior-year period, a decline of approximately 51.7%[106] - Net loss for the three-month period ended March 31, 2019, was $1,021,653, down from $1,847,794 in the prior-year period, representing a decrease of approximately 44.7%[109] - Net cash used in operating activities was $821,023 for the three-month period ended March 31, 2019, compared to $1,426,868 in the prior-year period, a reduction of approximately 42.4%[113] - Net cash provided by financing activities was $756,111 for the three-month period ended March 31, 2019, down from $1,697,700 in the prior-year period, a decrease of approximately 55.5%[115] - As of March 31, 2019, cash on hand was approximately $31,000, indicating a critical liquidity position[110] Research and Development - The company is focusing on four strategic pillars for R&D: Wireless Connectivity, Digital Health Applications, Self-Personalization, and Miniaturization[77][78][79][80] - The wireless module developed will enable data transmission to a cloud-based server, enhancing user interaction with glucose data[77] - The development of self-calibration for the GlucoTrack® DF-F aims to reduce costs for distributors and improve user experience[79] - The next generation of GlucoTrack® is in design, with expectations for improved user acceptance and lower manufacturing costs[80] - The company expects research and development expenses to increase in 2019 and beyond, primarily due to hiring additional personnel and developing its product line[103] Product Development and Approval - The GlucoTrack® model DF-F glucose monitoring device has received CE Mark approval, allowing it to be marketed in EU member countries[70] - Improvements to the GlucoTrack® model DF-F have reduced the initial calibration process from approximately 2.5 hours to about 30 minutes, expanding the potential user market to include pre-diabetics[71] Capital and Financing - The company reported net proceeds of approximately $756 thousand from the issuance and sale of 200,652 Series D Units in a private placement transaction during Q1 2019[73] - The company issued a ten-year non-qualified stock option for the purchase of 75,000 shares at an exercise price of $4.50 per share[76] - The company anticipates that its income from operations will not be sufficient to sustain operations in the next 12 months, necessitating the need to raise additional capital[110] Accounting and Compliance - The adoption of ASU 2018-07 did not significantly impact the company's consolidated financial statements[90] - The company has not generated material revenues and has incurred a substantial accumulated deficit, raising concerns about its ability to continue as a going concern[83]