Financial Performance - Revenues from product sales for the three months ended March 31, 2025, were $66,000, compared to $44,000 for the same period in 2024, marking a 50% increase [20]. - Gross profit for the first quarter of 2025 was $52,000, significantly up from $16,000 in Q1 2024, indicating a gross margin improvement [20]. - Operating loss narrowed to $619,000 in Q1 2025 from $899,000 in Q1 2024, reflecting a 31.1% reduction in operating losses [20]. - Net loss attributable to the Company's stockholders was $1,193,000 for Q1 2025, compared to $769,000 in Q1 2024, representing a 55.2% increase in net loss [20]. - The Company reported a comprehensive loss of $1,263,000 for Q1 2025, compared to $822,000 in Q1 2024, reflecting a 53.6% increase in comprehensive losses [20]. - Total revenue for the three months ended March 31, 2025, was $66,000, an increase of $22,000 or 50% compared to $44,000 for the same period in 2024 [146]. - Total comprehensive loss for the three months ended March 31, 2025, was $1,257,000, an increase of $435,000 or 53% compared to $822,000 for the same period in 2024 [153]. Assets and Liabilities - Total assets increased to $7,365,000 as of March 31, 2025, up from $5,465,000 at December 31, 2024, representing a 34.7% growth [18]. - Total liabilities surged to $3,667,000 as of March 31, 2025, compared to $892,000 at December 31, 2024, indicating a significant increase in financial obligations [18]. - As of March 31, 2025, total assets measured at fair value amount to $3.087 million, with $1.012 million in Level 1 assets and $2.075 million in Level 3 assets [61]. - As of March 31, 2025, the company's total liabilities measured at fair value amounted to $3,091 million, with Level 3 liabilities including stock purchase warrants and credit facilities [63]. Cash Flow and Financing - Cash and cash equivalents increased to $2,724,000 as of March 31, 2025, from $2,185,000 at December 31, 2024, a rise of 24.7% [18]. - Cash flows from financing activities provided $2,532,000 in Q1 2025, compared to $40,000 in Q1 2024, indicating a substantial increase in financing support [26]. - The company incurred a net cash used in operating activities of $809,000 for the three months ended March 31, 2025, a decrease of 19.7% compared to $1,008,000 for the same period in 2024 [165]. - Net cash used in investing activities was $1,176,000 for the three months ended March 31, 2025, compared to $0 for the same period in 2024, primarily due to investments in renewable energy projects [166]. - Net cash provided by financing activities increased significantly to $2,532,000 for the three months ended March 31, 2025, compared to $40,000 for the same period in 2024, driven by proceeds from a private offering of common stock and warrants [167]. Investments and Subsidiaries - The Company formed a new Israeli subsidiary, NTWO OFF Ltd., focusing on nitrous oxide, which has significant global warming implications [34]. - The Company entered into a securities exchange agreement with Plantify Foods, Inc., focusing on clean-label plant-based products [33]. - The investment in Plantify increased from $603,000 as of December 31, 2024, to $782,000 as of March 31, 2025 [61]. - The investment in Solterra also increased from $307,000 to $230,000 during the same period [61]. - The solar photovoltaic joint venture project has a fair value of $1.252 million as of March 31, 2025, up from $808,000 at the end of 2024 [61]. - The Company entered into a shareholders agreement on February 24, 2025, acquiring 70% of SBI4 shares, making it a majority-owned subsidiary [102]. Operational Challenges - The ongoing Israel-Hamas conflict has severely impacted operations, particularly affecting Plantify's subsidiary, Piece of Bean, leading to voluntary insolvency proceedings [43]. - Management expects continued losses and negative cash flows for the foreseeable future, with existing cash projected to fund operations until the end of Q4 2025 [39]. - The Company has an accumulated deficit of $36 million since inception, indicating significant losses and negative cash flows from operations [38]. Future Plans and Capital Needs - The Company plans to secure financing through the sale of additional equity securities or strategic partnerships, with substantial doubt regarding its ability to continue as a going concern if financing is not secured [40]. - The company plans to seek additional capital to support growth or strategic initiatives through debt or equity issuance, but there is no assurance of success in raising capital on favorable terms [163]. - The company has a remaining balance of approximately $16 million available under the standby equity purchase agreement [160]. Expenses and Cost Management - Research and development expenses decreased by $96,000 or 83% to $20,000 for the three months ended March 31, 2025, compared to $116,000 for the same period in 2024 [149]. - Selling and marketing expenses decreased by $10,000 or 19% to $47,000 for the three months ended March 31, 2025, compared to $57,000 for the same period in 2024 [150]. - General and administrative expenses decreased by $138,000 or 19% to $604,000 for the three months ended March 31, 2025, compared to $742,000 for the same period in 2024 [151]. - Financing expenses, net for the three months ended March 31, 2025, was $813,000, an increase of $818,000 or 16,360% compared to financing income, net of $5,000 for the same period in 2024 [152]. Legal and Compliance - There were no changes in internal control over financial reporting that materially affected the company's controls during the reporting period [171]. - The company has no pending legal proceedings that could materially affect its operations [173].
Save Foods(SVFD) - 2025 Q1 - Quarterly Report