N2OFF, Inc(NITO) - 2023 Q1 - Quarterly Report

Financial Performance - Revenues from product sales for the three months ended March 31, 2023, were $121,010, compared to $87,630 for the same period in 2022, representing an increase of 38%[15] - Gross profit for the first quarter of 2023 was $78,264, up from $45,781 in the first quarter of 2022, indicating a significant improvement in profitability[15] - The net loss attributable to the Company's stockholders' equity for the three months ended March 31, 2023, was $1,713,678, compared to a net loss of $1,329,750 for the same period in 2022, representing an increase in losses of about 29%[15] - Basic and diluted loss per share for the first quarter of 2023 was $(0.37), compared to $(0.47) for the same period in 2022, showing an improvement in loss per share[15] - For the three months ended March 31, 2023, the company reported a loss of $1,721,549, compared to a loss of $1,339,770 for the same period in 2022, representing an increase in loss of approximately 28.5%[30] Expenses and Liabilities - Research and development expenses decreased to $118,908 in Q1 2023 from $209,362 in Q1 2022, reflecting a reduction of approximately 43%[15] - Total liabilities as of March 31, 2023, were $696,922, down from $754,872 as of December 31, 2022, indicating a reduction of about 8%[13] - The Company's accumulated deficit increased to $24,551,505 as of March 31, 2023, from $22,837,827 as of December 31, 2022, reflecting a rise of approximately 7%[14] - The company recorded share-based compensation expenses of $691,220 for employees and directors in Q1 2023, significantly higher than $11,822 in Q1 2022[30][51] - Directors' compensation for the three months ended March 31, 2023, was $98,773, compared to $60,533 in the same period of 2022, an increase of 62.9%[55] Cash Flow and Assets - Cash and cash equivalents decreased to $4,595,838 as of March 31, 2023, from $5,700,709 as of December 31, 2022, a decline of about 19%[12] - As of March 31, 2023, the company had cash, cash equivalents, and restricted cash totaling $4,644,600, down from $5,699,882 at the end of Q1 2022, indicating a decrease of approximately 18.5%[30] - Total current assets decreased to $5,280,341 as of March 31, 2023, from $6,272,444 as of December 31, 2022, a decline of approximately 16%[12] - Long-lived assets in Israel decreased to $180,989 as of March 31, 2023, down from $249,306 as of March 31, 2022, a decline of 27.4%[60] Equity and Financing - The company issued 44,000 shares to service providers during the period, reflecting ongoing efforts to manage equity compensation[22] - The company issued 1,000,000 shares of common stock as part of an equity grant to executive officers, employees, directors, and consultants, valued at approximately $678,000[49] - The company plans to secure additional financing through the sale of equity securities or strategic partnerships, but there is uncertainty regarding the availability of such funds[37] - The company entered into a securities exchange agreement with Plantify Foods, Inc., resulting in each party issuing 19.99% of its outstanding capital stock[33] - Save Foods agreed to lend C$1,500,000 (approximately $1,124,000) to Plantify, with an interest rate of 8% annually, repayable over approximately 18 months[64] Management and Employment - The company terminated the employment of its Chief Operating Officer and agreed to a termination bonus of approximately $17,000[53] - Research and development expenses for salaries and fees to officers were $23,544, down from $49,063, a decrease of 52.0%[55] Sales Performance - Total sales for the three months ended March 31, 2023, were $121,010, compared to $87,630 for the same period in 2022, representing an increase of 38.0%[58] - Sales in the United States increased to $41,554 from $35,948, a growth of 15.0% year-over-year[58] - Sales in Mexico surged to $73,215, up from $40,469, marking an increase of 80.8%[58]