SaverOne 2014 .(SVRE) - 2024 Q4 - Annual Report

SaverOne 2024 Annual Report Management Commentary The company acknowledges 2024 challenges but highlights significant international progress and future growth from its VRU sensor solution - Despite challenges in the local Israeli market, the company achieved strong international progress in 2024 and expects a renewed growth trend in 2025[5] - The company is advancing its VRU sensor solution, with a market analysis projecting a potential $1.5 billion annual market[5] 2024 Highlights and Recent Developments The company expanded globally through new distribution agreements and key customer wins while advancing its VRU sensor business - As of March 20, 2025, 5,400 systems have been ordered by customers, with approximately 4,000 installed to date[6] - Expanded international presence by signing new distribution agreements in Germany, the UK, Spain/Portugal, and the United States[6][8][10] - Achieved a key milestone with the first U.S. commercial agreement with a FedEx Trucking Contractor, marking an important step in U.S. market expansion[6][8] - An external market analysis for the company's VRU sensor technology projected an annual $1.5 billion potential by 2035, prompting a future spinoff[6][16] - Strengthened its IP portfolio by being granted new patents, bringing its total to 13 granted patents out of a portfolio of 23[8] Financial Performance Analysis Financial results show a strategic shift to international markets, with improved gross margin despite lower revenue and a wider net loss Financial Summary Revenues decreased due to local challenges, but gross margin improved and international revenue share grew significantly to 29% | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | NIS 1.68M ($461k) | NIS 2.72M ($747k) | | Gross Profit | NIS 0.61M ($169k) | NIS 0.75M ($206k) | | Gross Margin | 36.5% | 27.6% | | Operating Loss | NIS 33.3M ($9.1M) | NIS 34.2M ($9.4M) | | Net Loss | NIS 34.9M ($9.6M) | NIS 33.8M ($9.3M) | - Revenue from outside Israel grew to 29% of total revenue in 2024, a significant increase from 7% in 2023, highlighting progress in the international expansion strategy[6][11] - Cash and cash equivalents decreased to NIS 13.3 million as of December 31, 2024, from NIS 17.1 million at the end of 2023[6][17] Statements of Financial Position The company's balance sheet reflects a decrease in total assets and liabilities, while shareholders' equity remained stable | Balance Sheet (NIS thousands) | As of Dec 31, 2024 | As of Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | 23,818 | 26,990 | | Total Current Assets | 21,618 | 24,209 | | Total Liabilities | 13,188 | 16,418 | | Total Current Liabilities | 11,861 | 14,804 | | Total Shareholders' Equity | 10,630 | 10,572 | Statements of Comprehensive Loss The company reported a slightly increased net loss, though loss per share improved due to a higher number of outstanding shares | Income Statement (NIS thousands) | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Revenues | 1,683 | 2,720 | | Gross Profit | 614 | 752 | | Operating Loss | (33,252) | (34,223) | | Net Loss | (34,938) | (33,835) | | Per Share Data | 2024 | 2023 | | :--- | :--- | :--- | | Basic and diluted loss per share (NIS) | (0.30) | (1.08) | | Weighted average shares | 117,908,475 | 31,380,359 | Company and Product Overview The company designs solutions to prevent vehicle accidents, focusing on a driver distraction system and a new VRU detection sensor - SaverOne's core product prevents driver distraction by recognizing the driver's area and blocking distracting mobile apps while allowing essential functions[19] - The company is developing a sensor system to detect Vulnerable Road Users (VRUs) by tracking their cellphone footprint under all visibility conditions[23] - The go-to-market strategy includes both aftermarket sales to fleets and OEM partnerships for factory installation[21] - Primary target markets include commercial fleets, vehicle manufacturers, and insurance companies in Israel, Europe, and the US[20] Forward-Looking Statements This section cautions that projections are subject to significant risks, including capital needs and geopolitical instability - The report's forward-looking statements are subject to inherent risks, and actual results may differ materially from expectations[24] - Key risks identified include the ability to raise necessary capital, the 'going concern' qualification in the 2024 financial statements, and political instability in the Middle East[24]