Revenue Performance - Revenues for the nine months ended September 30, 2024, amounted to $6,802,000, an increase of 63.5% compared to $4,166,000 for the same period in 2023, primarily due to increased Orgad sales[89]. - Revenues for the three months ended September 30, 2024, were $1,839,000, a decrease of 14.7% from $2,156,000 for the same period in 2023, attributed to lower Orgad sales due to low inventory and seasonality[90]. Cost and Expenses - Cost of revenues for the nine months ended September 30, 2024, was $3,831,000, up 42.0% from $2,698,000 in the same period in 2023, mainly due to increased revenues and a $643,000 inventory markdown[91]. - Research and development expenses for the nine months ended September 30, 2024, were $352,000, a decrease of 56.6% from $811,000 in the same period in 2023, due to reduced headcount and subcontractor expenses[93]. - General and administrative expenses for the nine months ended September 30, 2024, were $2,572,000, down 19.8% from $3,210,000 in the same period in 2023, primarily due to decreased professional services and insurance expenses[97]. - Sales and marketing expenses for the nine months ended September 30, 2024, were $2,670,000, an increase of 2.8% from $2,598,000 in the same period in 2023, driven by higher Amazon fees[96]. - Financial expenses, net for the nine months ended September 30, 2024, amounted to $26,000, a decrease from $78,000 in the same period in 2023, mainly due to reduced exchange rate differences[101]. Loss and Impairment - Operating loss for the nine months ended September 30, 2024, was $3,254,000, a decrease of 36.8% compared to $5,151,000 for the same period in 2023[100]. - A goodwill impairment charge of $631,000 was recorded for the three months ended September 30, 2024, as the carrying value of the SaaS Solution reporting segment exceeded its expected fair value[99]. - The net loss for the nine months ended September 30, 2024, was $3,280,000, a decrease from a net loss of $5,077,000 for the same period in 2023, indicating improved financial performance[103]. - For the three months ended September 30, 2024, the net loss increased to $1,300,000 from $1,132,000 in the same period of 2023, reflecting ongoing challenges[104]. - An impairment charge of $631,000 was recorded for the SaaS Solutions reporting unit due to a decline in fair value, while no impairment was identified for other long-lived assets[121]. Cash Flow and Financial Position - Cash used in operating activities decreased to $2,523,000 for the nine months ended September 30, 2024, compared to $4,910,000 for the same period in 2023, showing better cash management[107]. - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash of $2,371,000, up from $2,264,000 as of December 31, 2023, primarily due to a warrant repricing transaction[106]. - Net cash provided by financing activities was $2,626,000 for the nine months ended September 30, 2024, down from $6,230,000 for the same period in 2023, indicating reduced capital raising activities[109]. Future Outlook and Risks - The company expects to continue generating losses and negative cash flows from operations for the foreseeable future, raising concerns about its ability to sustain operations beyond 12 months[110]. - The company may face challenges in raising additional capital due to unfavorable market conditions, which could adversely affect its business and financial condition[111]. - The security situation in Israel has had an immaterial effect on operations and financial results, attributed to the company's global footprint and reliance on Amazon for inventory fulfillment[87]. - The company has not entered into transactions with unconsolidated entities that expose it to material risks or contingent liabilities[113]. Valuation and Growth Assumptions - The discount rate for the SaaS Solutions reporting unit remained at 25% as of September 30, 2024, while the revenue growth rate was adjusted to a range of 4%-32%[120].
My Size(MYSZ) - 2024 Q3 - Quarterly Report