Revenue and Profit - Revenue for the year ended December 31, 2024, was 3,180,565,representinganincreaseof986,774 or 45% compared to 2,193,791in2023,primarilydrivenbyincreasedordersfordefensepurposes[228].−GrossprofitfortheyearendedDecember31,2024,was1,831,854, with a gross margin of 58%, slightly down from 59% in 2023, attributed to high-end IP-based technology and effective cost-reduction strategies [231]. Expenses and Losses - Total expenses for the year ended December 31, 2024, were 10,342,492,anincreaseof3,716,140 compared to 6,626,352in2023,largelyduetofairvaluelossesfromfinancialliability[232].−Fairvaluelossesfromfinancialliabilitysurgedto4,251,756 in 2024, a dramatic increase of 3,921,548or1,088330,208 in 2023, linked to revaluation of warrants issued during public offerings [237]. - As of December 31, 2024, the company incurred a net loss of 8.0millionandhasaccumulatedlossesof30.4 million since inception [251]. Research and Development - Research and development expenses increased by 190,607or102,127,409 in 2024, mainly due to higher costs associated with new product development and increased subcontractor expenses [234]. - The company is focused on developing new products, including a comprehensive security solution for uncrewed missions, to enhance its market position in the SUAV and robotics sectors [234]. Cash Flow and Financing - Cash and cash equivalents as of December 31, 2024, were 8.6million,withtotalreceivablesrecognizedat949,225, indicating adequate financial resources for at least 12 months [253]. - Net cash used in operating activities decreased to 3,206,549in2024from4,162,587 in 2023, primarily due to an increase in receipts from customers of 1,424,409[257].−Netcashprovidedbyfinancingactivitieswas3,475,156 for the year ended December 31, 2024, compared to a net cash used of 271,616in2023,mainlyfromshareissuances[261].−ThecompanyenteredintoanAt−The−MarketSalesAgreementinFebruary2025toofferADSswithanaggregateofferingpriceofupto10.0 million [265]. - The January 2024 Offering generated gross proceeds of 2.95millionfromtheissuanceofADSsandwarrants[266].GrantsandIncome−GovernmentgrantsfromIIAfortheyearendedDecember31,2024,were187,718, a decrease of 9,323or5197,041 in 2023 [228]. - Interest income decreased by 23,707or8269,771 in 2024, primarily due to lower levels of funds invested in interest-bearing bank deposits [229]. Market Strategy - The company aims to expand its global customer base by increasing design wins and pilot projects, targeting the commercial segment leveraging experience from the defense sector [225]. - Sales and marketing expenses decreased by 122,774or61,965,426 in 2024, attributed to changes in headcount and lower overhead costs [233]. Risk Factors - The company is exposed to liquidity risk but believes existing funds will cover operating expenses for the next twelve months [416]. - A 10% devaluation of the USDtotheNIScouldincreasethenetlossbyapproximately329,000, while a 10% appreciation could decrease it by approximately $269,000 [415].
