ViewBix Inc(US:VBIX)2024-11-19 21:01Financial Agreements and Capital Raising - The Company reported a loan agreement on November 15, 2023, providing an aggregate amount of $480,000, which may increase to $1,000,000 at the lenders' discretion, with a 9% annual interest rate[158]. - The June 2024 Credit Facility amounts to $1 million, with an additional $530,657 of outstanding debt, and has a term expiring 12 months after the agreement date[160]. - The June 2024 Credit Facility accrues interest at a rate of 12% per annum, with the first year's interest paid in shares at a conversion rate of $0.25 per share[162]. - The Company plans to convert $662,957 of the June 2024 Loan Amount into shares at a conversion rate of $0.25 per share following the effectiveness of the Uplist[163]. - The company entered into a $2.5 million credit facility agreement on July 22, 2024, with a lender, which includes a drawdown schedule and a 12% annual interest rate[174]. - A private placement closed on July 3, 2024, raising gross proceeds of $256,875 through the sale of 1,027,500 shares and warrants to purchase up to 1,541,250 shares at an exercise price of $0.25[171][169]. - The company submitted an application to uplist to Nasdaq on September 13, 2024, with no assurance of approval[168]. - The First July 2024 Facility Loan Amount will be available until the completion of a $2.0 million financing transaction or the 36-month anniversary of the agreement[175]. - The Second July 2024 Facility Loan Amount of $3.0 million will remain available until the completion of a $2.5 million financing transaction or the 40-month anniversary of the agreement[181][182]. - The company agreed to pay a one-time fee of 500,000 shares and a warrant to purchase 1,000,000 shares in connection with the First July 2024 Credit Facility[179]. - The company filed a registration statement with the SEC on July 31, 2024, to register shares related to the June 2024 Credit Facility and the Private Placement[167][172][187]. - The company entered into a Securities Exchange Agreement on July 31, 2024, to exchange shares with Metagramm Software Ltd., pending customary closing conditions[188]. Revenue and Financial Performance - Revenues for the three months ended September 30, 2024, were $6,281 thousand, a decrease of 60% compared to $15,715 thousand in the same period in the prior year[199]. - Revenues from Cortex's Content Platform for the nine months ended September 30, 2024, were $19,240 thousand, down 59% from $47,138 thousand during the same period in the prior year, primarily due to the Cortex Adverse Effect[210]. - Gix Media's Search Platform revenues for the three months ended September 30, 2024, were $789 thousand, a decrease of 86% compared to $5,641 thousand in the same period last year[201]. - Total revenues for the nine months ended September 30, 2024, were $23,616 thousand, a decrease of 63% compared to $63,731 thousand during the same period in the prior year[209]. Expenses and Financial Metrics - Traffic-acquisition costs for the three months ended September 30, 2024, were $5,145 thousand, down 63% from $14,526 thousand during the same period in the prior year[202]. - Research and development expenses for the three months ended September 30, 2024, were $338 thousand, a decrease of 52% compared to $700 thousand in the same period last year[203]. - Selling and marketing expenses for the three months ended September 30, 2024, decreased to $329 thousand, down 52% from $680 thousand during the same period in the prior year[204]. - General and administrative expenses for the three months ended September 30, 2024, were $435 thousand, a decrease of 40% compared to $727 thousand in the same period last year[205]. - General and administrative expenses decreased to $1,737 thousand for the nine months ended September 30, 2024, from $2,119 thousand in the same period last year, primarily due to reductions in salaries and professional services[215]. - Depreciation and amortization expenses increased to $2,282 thousand for the nine months ended September 30, 2024, compared to $2,202 thousand during the same period in the prior year[216]. - A goodwill impairment loss of $4,739 thousand was recorded for the nine months ended September 30, 2024, compared to $0 in the same period last year, related to the Content Platform[217]. - Net financial expenses rose to $2,755 thousand for the nine months ended September 30, 2024, from $691 thousand in the prior year, mainly due to financing expenses from financial instruments[218]. - Net financial income for the three months ended September 30, 2024, was $152 thousand, compared to net financial expenses of $260 thousand during the same period in the prior year[207]. Assets and Liabilities - Current assets as of September 30, 2024, totaled $12,894 thousand, including $1,405 thousand in cash and cash equivalents and $6,091 thousand in accounts receivable[220]. - Current liabilities as of September 30, 2024, amounted to $16,931 thousand, with $9,970 thousand in accounts payable and $5,081 thousand in short-term loans[222]. - The company experienced a negative working capital of $4,037 thousand as of September 30, 2024, compared to a negative working capital of $1,968 thousand as of December 31, 2023[226]. - Positive cash flow from operating activities for the nine months ended September 30, 2024, was $1,990 thousand, resulting from a net loss of $10,069 thousand and positive adjustments of $9,093 thousand[227]. Strategic Focus and Risks - The Company has reduced operations in its Video Advertising Platform due to failure to meet sales targets, focusing instead on its Search and Content Platforms[148]. - Gix Media's Search Platform generates revenue by referring user traffic to search engines, with payments based on the revenue received from advertisers[152]. - Cortex's Content Platform produces and markets content in various languages, generating revenue from advertisements displayed alongside the content[155]. - The Company is focused on expanding its digital advertising operations through technological solutions that optimize online campaigns[149]. - The Company is subject to risks including the demand for digital advertising and potential competition from established internet and technology companies[145]. - The Company is exploring additional capital raising options to meet future business requirements, which may dilute shareholders' ownership interests[145]. Future Plans - The company anticipates the reincorporation in Nevada will take effect in the first quarter of 2025, pending approval from the Israeli Tax Authority and FINRA[196]. - The company plans to pursue an Uplist to Nasdaq, which is expected to provide additional funds if successful[234].