ViewBix Inc(VBIX) - 2023 Q4 - Annual Report

Revenue Performance - Revenues for the year ended December 31, 2023, were $79,613 thousand, a decrease of 17.6% compared to $96,603 thousand for the year ended December 31, 2022[280]. - Revenues from Cortex's Content Platform were $59,144 thousand for the year ended December 31, 2023, down 19.9% from $73,857 thousand in 2022, primarily due to decreased user traffic acquisition from Third-Party Platforms[281]. - Revenues from Gix Media's Search Platform were $20,469 thousand for the year ended December 31, 2023, a decrease of 10% from $22,746 thousand in 2022, attributed to reduced search referrals from strategic partners[282]. Cost Management - Traffic acquisition costs for the year ended December 31, 2023, were $70,451 thousand, down 15.1% from $83,011 thousand in 2022, due to decreased user traffic acquisition[283]. - Research and development costs for the year ended December 31, 2023, were $2,893 thousand, a decrease of 11.2% compared to $3,255 thousand in 2022[284]. - Sales and marketing expenses increased to $2,805 thousand for the year ended December 31, 2023, up 13.1% from $2,479 thousand in 2022, due to increased content and salaries[285]. - General and administration expenses rose to $2,877 thousand for the year ended December 31, 2023, an increase of 33.4% from $2,157 thousand in 2022, driven by expanded management team costs[286]. Impairment and Financial Health - A goodwill impairment loss of $5,107 thousand was recorded in 2023, compared to $0 in 2022, related to the Content Platform[288]. - A goodwill impairment loss of $5,107 thousand was recorded for the Content Platform reporting unit as of December 31, 2023[317]. - As of December 31, 2023, current assets totaled $17,805 thousand, a decrease from $29,841 thousand as of December 31, 2022[292]. - Positive cash flow from operations for the year ended December 31, 2023, was $934 thousand, down from $3,237 thousand in 2022, primarily due to a net loss of $8,687 thousand[299]. - As of December 31, 2023, Gix Media had cash and cash equivalents of $1,774 thousand and a working capital deficit of $1,968 thousand[308]. - Gix Media's short-term and long-term bank loans amounted to $9,070 thousand, with non-compliance to financial debt covenants for the year ended December 31, 2023[308]. - There is significant uncertainty regarding the company's ability to continue as a going concern due to financial conditions[310]. Financing and Future Plans - Gix Media's debt to EBITDA ratio is required to not exceed 2.4 for the first two years of the Financing Agreement, extended to June 30, 2024, and thereafter not exceed 1.75[307]. - Management plans to reduce operating expenses and create new revenue sources while negotiating loan terms to ensure liquidity[309]. - Gix Media's financing strategies may include issuing equity or debt securities, which could affect the trading price of its common stock[311]. - The company has received a waiver from Leumi regarding its financial covenant failure until April 16, 2024, under certain conditions[307]. - The company experienced a decrease in user traffic from third-party advertising platforms, impacting revenue negatively[308].