Financial Performance - Revenues for the nine months ended September 30, 2025, amounted to $2,576 thousand, a decrease of 3% compared to $2,660 thousand for the same period in 2024[104] - Revenues for the three months ended September 30, 2025, were $149 thousand, a decrease of 88% from $1.3 million in the same period of 2024[128] - Operating loss for the nine months ended September 30, 2025, was $13.7 million, an increase of 57% from $8.7 million in the same period of 2024[120] - Cash used in operating activities for the nine months ended September 30, 2025, was $9.8 million, compared to $5.5 million for the same period in 2024[123] Expenses - Cost of revenues for the nine months ended September 30, 2025, was $1,882 thousand, a decrease of 4% from $1,964 thousand in 2024[108] - Research and development expenses increased by 56% to $7,322 thousand for the nine months ended September 30, 2025, compared to $4,705 thousand in 2024[112] - Sales and marketing expenses rose by 99% to $1,604 thousand for the nine months ended September 30, 2025, up from $806 thousand in 2024[116] - General and administrative expenses increased by 39% to $5,473 thousand for the nine months ended September 30, 2025, compared to $3,929 thousand in 2024[119] - Research and development expenses for the three months ended September 30, 2025, were $2.5 million, an increase of 43% from $1.7 million in the same period of 2024[135] - General and administrative expenses for the three months ended September 30, 2025, were $1.7 million, an increase of 24% from $1.3 million in the same period of 2024[140] Cash Flow - Cash provided by financing activities for the nine months ended September 30, 2025, was $21.1 million, compared to $9.9 million in the same period of 2024[127] - Cash and cash equivalents as of September 30, 2025, were $29.8 million, an increase from $18.5 million as of December 31, 2024[150] Backlog and Contracts - The backlog as of September 30, 2025, was approximately $14.2 million, primarily reflecting contracts with government clients and defense and aviation companies[98] - Backlog as of September 30, 2025, was approximately $14.2 million, down from $15.0 million as of December 31, 2024[149] - The company fully derecognized a contract liability of $1.7 million associated with a Fortune 500 medical company customer due to the lack of a purchase order for 2025[99] Future Outlook - The company expects an increase in research and development expenses as it continues to focus on new product development and recruitment in the Industry 4.0 domain[114] - The company expects to incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution[153] - Future operating lease obligations as of September 30, 2025, were approximately $0.9 million[155] External Factors - The ongoing conflict in Israel has not had a material adverse effect on the company's business operations, although some minor disruptions were experienced[102] Product Development - The Odysight TruVision solution has been successfully utilized by NASA, indicating strong interest in the technology across various sectors[97]
Odysight.ai Inc(ODYS) - 2025 Q3 - Quarterly Report