ViewBix Inc(US:VBIX)2025-03-21 13:29Revenue Performance - Revenues for the year ended December 31, 2024, were $26,941 thousand, a decrease of 66.1% compared to $79,613 thousand for the year ended December 31, 2023[329]. - Revenues from Cortex's Content Platform were $21,972 thousand for the year ended December 31, 2024, a decrease of 62.9% compared to $59,144 thousand during the year ended December 31, 2023[330]. - Revenues from Gix Media's Search Platform totaled $4,969 thousand for the year ended December 31, 2024, representing a decrease of 75.8% compared to $20,469 thousand for the year ended December 31, 2023[331]. - The company experienced a decrease in revenues from digital content and search segments due to various factors, including a reduction in advertising budgets and changes in internet browsers[358]. - Total revenues for the year ended December 31, 2024, were $26,941,000, a decrease of 66.2% compared to $79,613,000 in 2023[394]. Expenses and Losses - Traffic acquisition and related costs for the year ended December 31, 2024, were $21,987 thousand, a decrease of 68.8% compared to $70,451 thousand for the year ended December 31, 2023[334]. - Research and development expenses for the year ended December 31, 2024, were $1,879 thousand, a decrease of 34.9% compared to $2,893 thousand for the year ended December 31, 2023[335]. - Sales and marketing expenses for the year ended December 31, 2024, were $1,641 thousand, a decrease of 41.4% compared to $2,805 thousand for the year ended December 31, 2023[336]. - General and administration expenses for the year ended December 31, 2024, were $2,268 thousand, a decrease of 21.2% compared to $2,877 thousand for the year ended December 31, 2023[337]. - For the year ended December 31, 2024, the company recorded an operating loss of $11,555 thousand compared to $7,442 thousand in 2023, and a net loss of $14,106 thousand compared to $8,687 thousand in 2023[359]. - Operating loss increased to $11,555,000 in 2024 from $7,472,000 in 2023, reflecting a higher cost structure[394]. - Net loss attributable to shareholders of Viewbix Inc. was $12,053,000 in 2024, compared to $7,323,000 in 2023, representing a 64.5% increase[394]. - The net loss for the year ended December 31, 2024, was $14,106 thousand, compared to a net loss of $8,687 thousand in 2023, representing a 62.5% increase in losses[406]. - The company recorded an operating loss of $11,555 thousand for 2024, up from an operating loss of $7,472 thousand in 2023, indicating a 54.7% increase in operating losses[433]. Goodwill and Impairment - A goodwill impairment loss of $7,675 thousand was recorded during the year ended December 31, 2024, compared to $5,107 thousand during the year ended December 31, 2023[340]. - A goodwill impairment loss of $7,675 thousand was recorded for the Content Platform reporting unit as of December 31, 2024[368]. - Goodwill impairment increased to $7,675,000 in 2024 from $5,107,000 in 2023, indicating ongoing challenges in asset valuation[394]. - Goodwill impairment amounted to $7,675 thousand in 2024, compared to $5,107 thousand in 2023, reflecting a 50.3% increase due to adverse effects in the digital content segment[432]. - The carrying amount of the digital content reporting unit's goodwill after impairment charges was $3,500 thousand[382]. Cash Flow and Assets - The company had positive cash flow from operations of $1,543 thousand for the year ended December 31, 2024, compared to $934 thousand during the year ended December 31, 2023[350]. - As of December 31, 2024, the company had current assets of $7,752 thousand, a decrease from $17,805 thousand as of December 31, 2023[343]. - Total current assets decreased to $7,752,000 in 2024 from $17,805,000 in 2023, a decline of 56.5%[388]. - Total assets fell to $22,074,000 in 2024, down 48.9% from $43,282,000 in 2023[388]. - The company had cash and cash equivalents of $624 thousand as of December 31, 2024, down from $1,923 thousand at the end of 2023, indicating a decrease of 67.6%[433]. Financial Position and Compliance - As of December 31, 2024, the company had cash and cash equivalents of $624 thousand, bank loans of $5,528 thousand, and an accumulated deficit of $22,714 thousand[359]. - Current liabilities decreased to $12,929,000 in 2024 from $19,773,000 in 2023, a reduction of 34.7%[391]. - Shareholders' equity attributed to Viewbix Inc. decreased to $5,771,000 in 2024 from $14,818,000 in 2023, a decline of 61.1%[391]. - The company is in compliance with the financial covenant in connection with the Financing Agreement as of December 31, 2024[356]. - There is significant uncertainty regarding the company's ability to continue as a going concern due to declining revenues and cash flows[374]. Strategic Plans and Future Outlook - The company plans to uplist its common stock to a national securities exchange to secure additional funding[360]. - Management's plans to address financial challenges include reducing salaries and operating expenses, cutting professional services, and forming new partnerships[360]. - The company raised $887 thousand through private placements and facility agreements from June to August 2024[360]. - The ongoing conflict in Israel has indirectly affected the company's operations and profitability due to workforce availability issues[428]. - The company plans to uplist its shares to a national securities exchange, which is expected to provide additional funding[437]. Accounting and Financial Reporting - The Company generates revenues from internet user traffic, with revenue recognition measured under ASC 606, excluding VAT[458][459]. - Traffic acquisition costs are expensed as incurred, primarily consisting of fees paid to suppliers for internet traffic sources[461]. - Research and development costs are charged to income as incurred, with no internal-use software development costs capitalized in 2023 and 2024[462][466]. - The Company evaluates its accounts receivable and establishes an allowance for credit losses based on credit conditions and historical experience[447]. - Goodwill is tested for impairment annually at December 31, with the impairment test comparing the fair value of the reporting unit to its carrying value[479][481]. - Intangible assets with finite useful lives are amortized over their estimated useful lives, with customer relations amortized at 14.3% and technology at 16.7%-22.2%[484]. - The Company accounts for business combinations under ASC 805, recognizing assets acquired and liabilities assumed at fair value on the acquisition date[476]. - The Company uses its incremental borrowing rate to determine the present value of lease payments for operating leases[452]. - The Company does not recognize operating lease assets and liabilities for leases with terms shorter than 12 months[454]. - The Company evaluates its financial instruments to determine if they qualify as derivatives under ASC Topic 815[487]. - The Company recognized a share-based compensation expense of $130,000 for the year ended December 31, 2024, compared to $73,000 for the year ended December 31, 2023, reflecting an increase in compensation costs[509]. - As of December 31, 2024, the Company reported total property and equipment, net of $27,000, down from $245,000 as of December 31, 2023, primarily due to accumulated depreciation of $437,000[509]. - The Company recorded an impairment loss of $7,675,000 for goodwill as of December 31, 2024, driven by decreased cash flow projections[518]. - The total cost of goodwill and intangible assets decreased from $29,961,000 as of December 31, 2023, to $22,286,000 as of December 31, 2024, following the impairment[516]. - The Company’s accumulated amortization for intangible assets increased to $8,155,000 as of December 31, 2024, from $5,273,000 as of December 31, 2023[516]. - The Company’s total other current assets increased to $1,257,000 as of December 31, 2024, compared to $771,000 as of December 31, 2023[506]. - The Company recognized a capital loss of $46,000 in other expenses due to the early termination of a lease agreement[513]. - The Company’s leasehold improvements were fully depreciated and disposed of during the year ended December 31, 2024, due to the termination of Gix Media's lease agreement[509]. - The Company’s depreciation expenses totaled $130,000 for the year ended December 31, 2024, compared to $73,000 for the year ended December 31, 2023[509]. - The Company is evaluating the potential impacts of new accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03[499][503].