ViewBix Inc(VBIX) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2025, were $2,733 thousand, a decrease of 72.7% compared to $10,002 thousand in the same period in 2024 [191]. - Revenues from the Content Platform decreased to $2,204 thousand, down 70.8% from $7,530 thousand in the prior year, primarily due to the Cortex Adverse Effect [192]. - Revenues from Gix Media's Search Platform totaled $529 thousand, a decrease of 78.6% compared to $2,472 thousand during the same period in the prior year [193]. - The number of search referrals to Gix Major Customer from the direct model dropped to 6.3 million, down 74.6% from 24.7 million in the prior year [194]. - Traffic-acquisition costs were $2,323 thousand, a decrease of 64.1% compared to $8,215 thousand in the same period in the prior year [196]. - Research and development expenses decreased to $147 thousand, down 80.1% from $730 thousand in the prior year [197]. - Selling and marketing expenses decreased to $216 thousand, down 67.2% from $658 thousand in the prior year [198]. - General and administrative expenses were $253 thousand, a decrease of 61.5% compared to $656 thousand in the prior year [199]. - The company experienced a negative cash flow from operating activities of $409 thousand, compared to a positive cash flow of $107 thousand in the prior year [210]. Corporate Actions - The company approved a one-for-four reverse stock split effective March 14, 2025, resulting in a reduction of outstanding shares [165]. - Gix Media has a financing agreement with Bank Leumi for a line of credit up to $3.5 million and a long-term loan totaling $6 million, with repayment schedules deferred until certain conditions are met [182]. - The company completed the acquisition of Metagramm Software Ltd. on March 24, 2025, issuing 1,323,000 shares, representing 19.99% of its capital stock [183]. - The company plans to effect an Uplist and has submitted an application to Nasdaq, which may provide additional funds if successful [219]. Business Strategy and Operations - Cortex's Content Platform has shifted focus to a new business model directing searches through content to Google's search platform, enhancing revenue generation [178]. - The company is actively seeking to expand its digital advertising operations through its Search and Content Platforms, powered by Gix Media and Cortex [169]. - The company is facing uncertainties regarding its ability to meet debt obligations and the potential impact of insolvency proceedings on its business [171]. - The company has experienced challenges in retaining programmatic advertisers, impacting cash flow and liquidity needs [166]. - The company is subject to risks related to political and economic instability in Israel, which may affect its operations [171]. Financial Obligations - Gix Media owes approximately $260,000 to a primary service provider, leading to a petition for insolvency proceedings filed on March 27, 2025 [180].