Acquisition and Investments - The company is acquiring MitoCareX Bio Ltd. for $700,000, resulting in MitoCareX becoming a wholly-owned subsidiary [337]. - The company will issue shares representing 15.5%, 7.75%, and 16.75% on a fully-diluted basis to key stakeholders in MitoCareX as part of the acquisition [337]. - The company has committed to an initial investment of $1,000,000 in MitoCareX for ongoing research and development [340]. - The company entered into a shareholder's agreement to acquire 70% of SBI4's shares for financing two battery storage projects in Sicily, Italy, with a loan of €2,300,000 at 7% interest [342][343]. - The company established NITO Renewable Energy, Inc. to manage investments in the solar energy sector [344]. - The company has a credit facility agreement with Pure Capital for financing up to €6,000,000, including a five-year warrant to purchase 1,850,000 shares at $1.00 per share [358]. - The company entered into a Purchase Agreement with an Investor to purchase up to $20 million of common stock over 36 months, with shares priced at 94% of the lowest VWAP for the three trading days following each Advance notice [391]. - The Investor pre-advanced $3 million of the $20 million commitment amount, subject to a 3% discount and an 8% annual interest rate on the outstanding principal [392]. Financial Performance - Revenues for the year ended December 31, 2024 were $210,000, a decrease of $53,000, or 20%, compared to $263,000 for 2023 [372]. - Cost of sales for the year ended December 31, 2024 was $165,000, an increase of $110,000, or 200%, compared to $55,000 for 2023 [373]. - Gross profit for the year ended December 31, 2024 was $45,000, a decrease of $163,000, or 78%, compared to $208,000 for 2023 [374]. - Research and development expenses for the year ended December 31, 2024 were $369,000, a decrease of $1,569,000, or 81%, compared to $1,938,000 for 2023 [375]. - Selling and marketing expenses for the year ended December 31, 2024 were $238,000, a decrease of $34,000, or 13%, compared to $272,000 for 2023 [376]. - General and administrative expenses for the year ended December 31, 2024 were $3,758,000, a decrease of $1,818,000, or 33%, compared to $5,576,000 for 2023 [377]. - Total net loss for the year ended December 31, 2024 was $5,347,000, compared to $7,260,000 for 2023, a decrease of $1,913,000, or 26% [379]. Cash Flow - Net cash used in operating activities was $3,419,000 for the year ended December 31, 2024, compared to $3,234,000 for 2023 [386]. - Net cash used in investing activities was $1,889,000 for the year ended December 31, 2024, compared to $1,519,000 for 2023 [387]. - Net cash provided by financing activities was $3,047,000 for the year ended December 31, 2024, compared to $3,473,000 for 2023 [388]. - As of March 29, 2024, the company has sold 28,333 shares of common stock at an average purchase price of $1.50 [391]. Financial Position and Concerns - The company has an accumulated deficit of $34,553,000 as of December 31, 2024, and expects to incur losses for the foreseeable future [393]. - The company believes existing capital resources will support operations through the beginning of Q4 2025, but additional capital may be needed for growth [394]. - There is substantial doubt about the company's ability to continue as a going concern if sufficient additional capital is not obtained [395]. - If additional funds are raised through equity sales, stockholder ownership may be diluted, and if debt securities are issued, negative covenants may restrict company activities [395]. - The financial statements do not include adjustments for assets and liabilities that may be required if the company fails to operate as a going concern [395]. - As a smaller reporting company, the company is not required to provide detailed market risk disclosures [396].
Save Foods(SVFD) - 2024 Q4 - Annual Report