Actelis(ASNS) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenues for Q1 2025 were stable at $0.72 million, flat compared to $0.72 million in Q1 2024, with a seasonal focus on growing the pipeline [3] - Revenues for the three months ended March 31, 2025, were $721 million, a slight decrease of 0.7% compared to $726 million in the same period of 2024 [26] - A 31% decline in revenues from the EMEA region was noted, offset by a 23% increase in revenues from North America [7] Profitability and Loss - Gross margin improved to 35% in Q1 2025, up from 30% in Q1 2024, driven by higher margins in Federal and Military sectors and disciplined cost management [3] - Operating loss decreased to $1.81 million in Q1 2025, a 3% improvement from $1.87 million in Q1 2024, attributed to enhanced gross margins and expense control [3] - Net loss per share improved by 56% to $(0.22) in Q1 2025, compared to $(0.50) in the same period last year [3] - The net comprehensive loss for the period was $1,860 million, an improvement from a loss of $1,986 million in the prior year [26] - The net loss per share attributable to common shareholders improved to $(0.22) from $(0.50) year-over-year [26] - The company reported a GAAP net loss margin of (257.97)% for the period, an improvement from (273.55)% in the prior year [37] Expenses and Investment - Research and development expenses rose to $681,000 in Q1 2025, up from $647,000 in Q1 2024, primarily due to increased utilization of professional services [10] - Research and development expenses increased to $681 million, up from $647 million year-over-year, indicating continued investment in innovation [26] - Total operating expenses decreased to $2,063 million from $2,091 million, reflecting a reduction of 1.3% [26] Cash Flow and Balance Sheet - Cash flows from operating activities showed a significant increase in net cash used, totaling $2,174 million compared to $203 million in the previous year [33] - The balance of cash, cash equivalents, and restricted cash at the end of the period was $1,424 million, down from $5,145 million year-over-year [35] - The balance sheet strengthened with shareholders' equity increasing to $2.61 million, maintaining compliance with Nasdaq listing requirements [3] Business Development - New orders were received from multiple regions including the Nordic region, Hungary, the US, UK, and Japan, validating the company's value proposition [2] - The company engaged with multi-billion dollar partners to expand its presence in Intelligent Transportation Systems markets [6] - The company continues to focus on its three main business areas: Federal and Military, Multi-Dwelling Units, and Intelligent Transportation Systems [6]