Revenue and Financial Performance - Revenues for the year ended December 31, 2024, amounted to $8,257,000, an increase of 18.1% compared to $6,996,000 for the year ended December 31, 2023, primarily driven by Orgad sales[241] - Operating loss for the year ended December 31, 2024, was $3,944,000, a decrease of 41.5% from the operating loss of $6,741,000 in 2023[248] - Net loss for the year ended December 31, 2024, was $3,995,000, down from $6,380,000 in 2023, reflecting improved operational performance[251] Expenses - Cost of revenues for the year ended December 31, 2024, was $4,934,000, up from $4,265,000 in 2023, with an inventory markdown of $643,000 due to a fire in Orgad's warehouse[242] - Research and development expenses decreased by approximately 55.96% to $429,000 in 2024 from $974,000 in 2023, mainly due to reduced headcount and subcontractor expenses[243] - Sales and marketing expenses decreased by 19.2% to $3,114,000 in 2024 from $3,856,000 in 2023, attributed to lower salaries and consultant expenses[244] - General and administrative expenses decreased by 15.2% to $3,368,000 in 2024 from $3,971,000 in 2023, primarily due to reduced professional services and insurance costs[245] - An impairment charge of $631,000 was recorded for the SaaS Solutions reporting unit, as its carrying value exceeded its fair value[268] Cash Flow and Financing - As of December 31, 2024, the company had cash, cash equivalents, and restricted cash of $4,880,000, an increase from $2,264,000 as of December 31, 2023, primarily due to a warrant repricing transaction and proceeds from exercised warrants[253] - Net cash used in operating activities decreased to $3,092,000 for the year ended December 31, 2024, compared to $6,106,000 for the previous year, mainly due to a reduction in net loss and changes in inventory[255] - Net cash provided by financing activities was $5,594,000 for the year ended December 31, 2024, down from $6,134,000 in 2023, primarily due to warrant repricing and proceeds from exercised warrants, offset by loan repayments of $735,000[257] - The net cash flow from investing activities was $53,000 for the year ended December 31, 2024, compared to $7,000 in 2023, primarily from proceeds from short-term deposits and investments in a joint venture[256] Future Outlook and Concerns - The company expects to continue generating losses and negative cash flows from operations for the foreseeable future, indicating substantial doubt about its ability to continue as a going concern without raising additional capital[258] - Current capital market conditions may limit the company's ability to raise additional capital on favorable terms, which could adversely affect its business and financial condition[259] - The company may face substantial dilution for existing stockholders if additional equity or convertible debt securities are issued in future capital transactions[260] Other Income and Adjustments - Other income for the year ended December 31, 2024, was $275,000, resulting from post-closing adjustments related to the Orgad acquisition[246] - Impairment of goodwill recorded was $631,000 for the year ended December 31, 2024, compared to $671,000 in 2023[247] Strategic Focus - The company is focused on commercializing Naiz Fit technology to enhance online shopping experiences and reduce return rates[221] - The company has entered into an At The Market Offering Agreement to sell up to $4.1 million in common stock, with 60,589 shares sold for approximately $142,000 as of the report date[254] - The company has not entered into any transactions with unconsolidated entities that expose it to material continuing risks or contingent liabilities[261]
My Size(MYSZ) - 2024 Q4 - Annual Report