ViewBix Inc(VBIX) - 2023 Q3 - Quarterly Report

Revenue Performance - Revenues for the three months ended September 30, 2023, were $15,715 thousand, a decrease of 31% compared to $22,778 thousand during the same period in the prior year[117]. - Revenues from Cortex's Content Platform were $10,074 thousand, down $7,002 thousand from $17,076 thousand in the same period last year, primarily due to decreased user traffic acquisition from Third-Party Platforms[118]. - Revenues from Gix Media's Search Platform were $5,641 thousand, a slight decrease from $5,702 thousand during the same period in the prior year[119]. - Revenues for the nine months ended September 30, 2023, were $63,731 thousand, a decrease from $66,115 thousand during the same period in the prior year[128]. - Revenues from Cortex's Content Platform were $47,138 thousand for the nine months ended September 30, 2023, down from $48,515 thousand in the prior year[128]. - Revenues from Gix Media's Search Platform decreased to $16,593 thousand for the nine months ended September 30, 2023, from $17,600 thousand in the prior year, attributed to a decrease in search referrals[129]. Expenses - Traffic-acquisition and related costs were $14,526 thousand, a decrease of $5,121 thousand compared to $19,647 thousand during the same period in the prior year[120]. - Research and development expenses were $700 thousand, down from $804 thousand in the same period last year, due to reduced expenses in the Search Platform[121]. - Selling and marketing expenses increased to $680 thousand, a slight increase from $628 thousand during the same period in the prior year[122]. - General and administrative expenses increased to $727 thousand for the three months ended September 30, 2023, compared to $450 thousand during the same period in the prior year, primarily due to increased salary and related costs following the Reorganization Transaction with Gix Media[123]. - Selling and marketing expenses increased to $2,118 thousand for the nine months ended September 30, 2023, up from $1,853 thousand in the prior year, due to increased content and salaries[132]. - Research and development expenses decreased to $2,213 thousand for the nine months ended September 30, 2023, from $2,445 thousand in the prior year, primarily due to reduced expenses in the Search Platform[131]. Financial Position - As of September 30, 2023, current assets totaled $18,752 thousand, including $2,550 thousand in cash and cash equivalents[138]. - As of September 30, 2023, current liabilities amounted to $20,605 thousand, consisting of $11,742 thousand in accounts payable and $7,879 thousand in short-term loans[140]. - The company reported a negative cash flow from operating activities of $276 thousand for the three months ended September 30, 2023, resulting from a net loss of $1,781 thousand[145]. - Net financial expenses decreased to $691 thousand for the nine months ended September 30, 2023, compared to $1,374 thousand in the prior year, mainly due to a decrease in financial expenses related to the USD to NIS exchange rate[136]. Strategic Developments - The Company is integrating Gix Media's technology to expand growth potential in search and content monetization[111]. - Gix Media acquired 70% of Cortex Media Group Ltd. for approximately $11 million, with plans to acquire the remaining 30% in tranches over three years[113]. - The Company adopted a reverse stock split of 1-for-28 effective August 31, 2022, impacting share amounts presented in the report[112]. Risks - The Company faces risks including competition, technological obsolescence, and geopolitical conditions affecting operations in Israel[95].