Financial Performance - Total revenues for the three months ended March 31, 2024, were $187,000, a decrease of 38.3% compared to $303,000 for the same period in 2023[19]. - The net loss for the three months ended March 31, 2024, was $3,162,000, compared to a net loss of $2,686,000 in the same period of 2023, representing an increase of 17.7%[19]. - Operating loss for the three months ended March 31, 2024, was $3,364,000, an increase of $585,000 or 21% compared to an operating loss of $2,779,000 in 2023[80]. - Cash used in operating activities was $1,230,000 for the three months ended March 31, 2024, compared to $2,474,000 in the same period of 2023[82]. Revenue Breakdown - Development services revenue from a Fortune 500 customer amounted to $106 thousand, while product revenue was $81 thousand, down from $197 thousand in the previous year[51]. - For the three months ended March 31, 2024, total revenue was $187 thousand, a decrease of 38.3% compared to $303 thousand for the same period in 2023[51]. - Revenues for the three months ended March 31, 2024, were $187,000, a decrease of $116,000 or 38% compared to $303,000 in the same period of 2023[64]. Expenses - Research and development expenses increased to $1,567,000 in Q1 2024, up 12.1% from $1,398,000 in Q1 2023[19]. - Sales and marketing expenses rose to $234,000, an increase of $58,000 or 33% compared to $176,000 in the same period of 2023[76]. - General and administrative expenses increased to $1,340,000, up $382,000 or 40% from $958,000 in the prior year[79]. - The company reported total stock-based payment expenses of $500 thousand for the three months ended March 31, 2024, compared to $348 thousand in the same period of 2023[50]. Assets and Equity - Total assets decreased to $20,541,000 as of March 31, 2024, down 10.0% from $22,829,000 as of December 31, 2023[15]. - Cash and cash equivalents decreased to $7,362,000 as of March 31, 2024, down 17.7% from $8,945,000 at the end of 2023[15]. - Total shareholders' equity decreased to $15,145,000 as of March 31, 2024, down 15.0% from $17,807,000 as of December 31, 2023[18]. Future Outlook - The company expects to continue incurring significant research and development costs, requiring additional funding to sustain future operations until profitability is achieved[31]. - The company expects to incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution as it continues to develop its I4.0 solutions[90]. Contractual Obligations - Remaining Performance Obligations (RPO) as of March 31, 2024, totaled $2.2 million, expected to be recognized over the product's manufacturing term[54]. - Contract liabilities decreased to $2,247 thousand from $2,322 thousand, with revenue recognized during the period amounting to $75 thousand[53]. - As of March 31, 2024, total contract fulfillment assets were $1,196 thousand, a decrease from $1,256 thousand at the end of 2023[52]. Lease Obligations - Monthly lease payments for the original office space are approximately $7 thousand, while the Ramat Gan office space incurs monthly payments of about $25 thousand[39]. - The total future lease payments under operating leases amount to $1,547 thousand, with a total lease liability balance of $1,251 thousand as of March 31, 2024[41]. - The company has an option to terminate the lease for the original office space after three years, with the lease extended until December 31, 2028[38].
Odysight.ai Inc(ODYS) - 2024 Q1 - Quarterly Report