N2OFF, Inc(US:NITO)2025-11-13 21:32Financial Performance - Revenues from product sales for the nine months ended September 30, 2025, were $68,000, a slight decrease from $69,000 for the same period in 2024[20] - The gross profit for the nine months ended September 30, 2025, was $49,000, compared to a gross loss of $41,000 in the same period of 2024[20] - The company reported a net loss attributable to stockholders of $5,273,000 for the nine months ended September 30, 2025, compared to a loss of $3,820,000 in the same period of 2024[20] - The operating loss for the nine months ended September 30, 2025, was $4,779,000, compared to a loss of $3,064,000 in the same period of 2024[20] - Total revenue for the nine months ended September 30, 2025, was $68,000, a decrease from $69,000 in the same period of 2024[202] - Total expenses for the nine months ended September 30, 2025, were $4,617,000, an increase from $2,806,000 for the same period in 2024[209] Assets and Liabilities - Total current assets increased to $8,656,000 as of September 30, 2025, compared to $3,404,000 as of December 31, 2024, representing a 154% increase[17] - Total liabilities rose to $2,350,000 as of September 30, 2025, from $892,000 as of December 31, 2024, marking a 163% increase[19] - Stockholders' equity increased to $8,930,000 as of September 30, 2025, from $4,749,000 as of December 31, 2024, reflecting an 88% increase[17] - The company reported total assets of $3,196 million as of September 30, 2025, an increase from $2,302 million as of December 31, 2024[76] Research and Development - Research and development expenses increased to $81,000 for the nine months ended September 30, 2025, up from $38,000 in 2024, indicating a 113% increase[20] - Research and development expenses for the nine months ended September 30, 2025, totaled $81,000, up from $38,000 in 2024[205] Shareholder Equity and Stock Activity - The weighted average number of shares outstanding increased to 689,725 for the nine months ended September 30, 2025, compared to 143,160 in 2024, indicating a significant increase in shares[20] - The company completed a 1-for-35 reverse stock split on September 22, 2025, to comply with Nasdaq's minimum bid price requirement[43] - The Company issued 48,691 shares and warrants to purchase 267,858 shares at an exercise price of $8.40, resulting in gross proceeds of $1,500[141] - The Company issued 418,261 shares of Common Stock valued at $1,672 under the SEPA II, resulting in gross consideration of $3,335 and a recorded amount of $1,662 in the statements of operations[160] Investments and Acquisitions - The company has committed to further investments in solar projects, with $1,559,000 allocated to a solar photovoltaic joint venture project as of September 30, 2025[17] - The Company completed the acquisition of 100% of MitoCareX on October 20, 2025, with an initial purchase price allocation estimating $4,506 of intangible assets and $5,792 of goodwill[171] - The Company purchased 70% of SBI4 shares, resulting in SBI4 becoming a majority-owned subsidiary[130] Financing and Debt - The Company entered into a loan agreement with MitoCareX for $250, bearing 3% interest, maturing in June 2025[93] - The Company entered into a credit facility agreement for up to €6,000 thousands (approximately $7,020), with €2,000 thousands allocated for a loan in Germany and €4,000 thousands for other projects[120] - The Company recognized share-based compensation of $2,141 for the nine months ended September 30, 2025, compared to $811 in the same period of 2024[169] Operational Challenges and Future Outlook - The company has an accumulated deficit of $40 million as of September 30, 2025, and expects to continue generating losses and negative cash flows for the foreseeable future[46][47] - The company is closely monitoring the ongoing geopolitical situation in Israel, which may impact its operations and financial results[55] - The company continues to assess the impact of the current conflict on its operations and the value of its assets[56] Expenses Breakdown - Professional services expenses for the nine months ended September 30, 2025, were $1,853,000, up from $1,602,000 in 2024, reflecting a growth of 15.66%[209] - Share-based compensation for the nine months ended September 30, 2025, was $2,141,000, significantly higher than $814,000 in 2024, indicating an increase of 163.78%[209] - Legal expenses for the nine months ended September 30, 2025, were $273,000, compared to $151,000 in 2024, representing an increase of 80.79%[209] - Salaries and related expenses for the nine months ended September 30, 2025, were $131,000, up from $34,000 in 2024, showing an increase of 285.29%[209] - Selling and marketing expenses for the nine months ended September 30, 2025, were $130,000, down from $179,000 in 2024[207] - General and administrative expenses primarily consist of professional services, share-based compensation, and salaries, contributing to overall operating expenses[208]