ZOOZ Power Ltd.(ZOOZ) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenues for the six months ended June 30, 2025, were $247 thousand, a decrease of 54.5% compared to $543 thousand for the same period in 2024[9] - Gross loss for the six months ended June 30, 2025, was $1,545 thousand, compared to a gross loss of $208 thousand in the same period of 2024[9] - Net loss for the six months ended June 30, 2025, was $7,045 thousand, an increase of 34.4% from a net loss of $5,237 thousand in the same period of 2024[9] - For the six months ending June 30, 2025, the company reported net losses of $7,045 thousand compared to $5,237 thousand for the same period in 2024, indicating a 34.5% increase in losses year-over-year[39] - The company experienced negative cash flows from operating activities amounting to $4,950 thousand for the six months ending June 30, 2025, compared to $6,040 thousand for the same period in 2024, reflecting a 17.9% improvement[39] Assets and Liabilities - Total current assets decreased to $4,442 thousand as of June 30, 2025, down 58.3% from $10,653 thousand as of December 31, 2024[7] - Total liabilities increased to $6,697 thousand as of June 30, 2025, compared to $6,119 thousand as of December 31, 2024, reflecting a rise of 9.5%[7] - Cash and cash equivalents decreased to $2,452 thousand as of June 30, 2025, down 67.5% from $7,532 thousand as of December 31, 2024[7] - The company recorded an inventory write-off of $1,227 thousand for the six months ended June 30, 2025, compared to $185 thousand for the same period in 2024, indicating a substantial increase in inventory losses[59] - The total contingent obligation as of June 30, 2025, amounts to $2.5 million, reflecting the company's commitments to pay royalties to governmental institutions[61] Financing and Capital Management - The company is seeking additional financing to continue operations, including research and development, with no assurance of success in obtaining necessary funds[42] - The company issued 39,508 ordinary shares under the SEPA agreement, raising $34 thousand, reflecting ongoing efforts to enhance capital[33] - The company entered into a sales agreement allowing for the issuance of ordinary shares with a potential gross sales price of up to $10,950,000[76] - On August 1, 2025, the company sold 106,200 ordinary shares for a net amount of $228,629 after transaction costs[77] - The company received gross proceeds of $5.0 million from an Initial Private Placement transaction, which will be used for repaying outstanding promissory notes and general corporate purposes[79] - The company agreed to sell 1,000,000 ordinary shares and warrants to acquire 5,000,000 ordinary shares at a purchase price of $2.00 per share in a private placement[78] Management and Corporate Governance - The company appointed Jordan Fried as the new CEO, with a compensation structure including a nominal salary and performance-based restricted stock units[88] - The Chairman RSUs constitute 2.5% of all outstanding Ordinary Shares, amounting to 837,963 shares[94] - The Chairman RSUs will vest over a 4-year period, with 25% vesting after 12 months and the remainder vesting monthly thereafter[95] - Keywise Discovery Master Fund has committed to invest $8 million in the Subsequent Private Placement for Ordinary Shares[96] - Mr. Fang Zheng holds approximately 2,369,550 Ordinary Shares, representing 19.5% of the issued and outstanding share capital[97] - The disclosed Ordinary Share ownership does not include 1,120,000 shares placed in escrow, which may be released upon achieving certain milestones[97] Strategic Initiatives - The company has initiated a company-wide cost reduction and restructuring initiative aimed at reducing operating costs[33] - In July 2025, the company adopted bitcoin as its primary treasury reserve asset, indicating a strategic shift in asset management[35] - The company finalized a merger deal with a SPAC on April 4, 2024, which included an investment of $10.875 million[40] - Approximately 15% of the company's employees have been called to reserve duty in the Israel Defense Forces as of July 15, 2025, but the company expects no material impact on business results in the short term[38] Accounting and Compliance - The fair value of the company's warrants liability increased from $331 thousand as of December 31, 2024, to $435 thousand as of June 30, 2025, reflecting changes in fair value[64] - The company adopted ASU 2023-08 effective January 1, 2025, which requires crypto assets to be measured at fair value, although it currently holds no digital assets[53] - The company recognized a total share-based payment expense of $59 thousand for the six months ended June 30, 2025, compared to $264 thousand for the same period in 2024, reflecting a decrease of approximately 77%[71] - The company had a promissory note balance of $2,231 thousand as of June 30, 2025, an increase from $2,151 thousand as of December 31, 2024[72] - As of June 30, 2025, the company had 880,617 outstanding options with a weighted average exercise price of $6.06 and a remaining contractual life of 7.09 years[68]