Actelis(US:ASNS)2024-11-14 14:06Revenue Performance - Revenues for Q3 2024 reached $2.54 million, a significant increase from $0.85 million in Q3 2023, primarily driven by a $1.4 million increase in North America due to volume growth and contract renewals[139] - For the nine months ended September 30, 2024, revenues totaled $6.7 million, up from $4.6 million in the same period last year, with a $3.4 million increase in North America offset by a $1.3 million decrease in Asia Pacific and EMEA[140] - Revenue for the nine months ended September 30, 2024, was $6.7 million, a 46.0% increase from $4.6 million for the same period in 2023[155] Cost and Profitability - Cost of revenues for Q3 2024 was $0.8 million, compared to $0.6 million in Q3 2023, attributed to increased revenues and changes in product mix[141] - Gross profit for Q3 2024 was $1.74 million, a substantial increase from $0.23 million in Q3 2023, reflecting improved operational efficiency[138] - Operating loss for Q3 2024 was $0.32 million, significantly reduced from a loss of $2.13 million in Q3 2023, indicating better cost management[138] - Operating loss for the nine months ended September 30, 2024, was $2.1 million, a 63.2% improvement compared to an operating loss of $5.7 million for the same period in 2023[150] - Net loss for the nine months ended September 30, 2024, was $2.6 million, a 40.9% decrease from a net loss of $4.4 million for the same period in 2023[154] Expenses - Research and development expenses for Q3 2024 were $0.54 million, down from $0.69 million in Q3 2023, suggesting a focus on cost control[138] - Research and development expenses for the nine months ended September 30, 2024, were $1.7 million, down 19.0% from $2.1 million for the same period in 2023[144] - General and administrative expenses for the nine months ended September 30, 2024, were $2.4 million, a 14.3% decrease from $2.8 million for the same period in 2023[147] Cash Flow and Financial Position - Cash on hand as of September 30, 2024, was approximately $2.3 million, with additional long-term deposits and restricted cash of $300,000[166] - The company has incurred significant losses, with an accumulated deficit of $42.2 million as of September 30, 2024[165] - Net cash used in operating activities decreased to $4.7 million for the nine months ended September 30, 2024, from $5.2 million for the same period in 2023, primarily due to cost reduction measures[168] - Net cash provided by investing activities improved to $0.2 million for the nine months ended September 30, 2024, compared to cash used of $1.4 million in the prior year, mainly due to a reduction in short-term bank deposits[169] - Net cash provided by financing activities was $1.6 million for the nine months ended September 30, 2024, down from $2.6 million in the same period of 2023, attributed to long-term loan repayments offset by funds raised from an investor warrant exercise[170] - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $2.5 million, a decrease from $3.1 million as of September 30, 2023[167] Strategic Initiatives - The company is focused on expanding its IoT business while maintaining commitments to existing telecommunications customers, with new product offerings introduced in 2023[133] - The company received a delist determination letter from Nasdaq in March 2024 but subsequently demonstrated compliance with listing requirements by August 2024[134][135] - The ongoing conflict in Israel has not impacted clinical and business development activities, which remain on track[135] - The company is exploring potential acquisitions, having entered into a term sheet for acquiring 61% to 75% of Quality Industrial Corp, although the term sheet was later terminated[136] Other Income - Other income for the nine months ended September 30, 2024, amounted to $163,000, compared to none for the same period in 2023, due to a government grant received[148] - Financial income, net for the nine months ended September 30, 2024, was $138,000, down from $1.9 million for the same period in 2023[152] Securities Offering - The company filed a shelf registration statement allowing for the potential offering of securities up to $50.0 million[164]