Actelis(US:ASNS)2025-11-14 13:08Financial Performance - Total revenues for the nine months ended September 30, 2025, were $2.305 million, a decrease of 65.5% compared to $6.698 million for the same period in 2024[24] - Gross profit for the three months ended September 30, 2025, was $183 thousand, down 89.5% from $1.743 million in the same quarter of 2024[24] - Operating loss for the nine months ended September 30, 2025, was $5.514 million, compared to an operating loss of $2.123 million for the same period in 2024[24] - The company reported a net comprehensive loss of $5.741 million for the nine months ended September 30, 2025, compared to a net loss of $2.575 million for the same period in 2024[24] - Net loss for the nine months ended September 30, 2025, was $5,741,000, compared to a net loss of $2,575,000 for the same period in 2024, representing a 122% increase in losses[40] - Non-GAAP Adjusted EBITDA for the nine months ended September 30, 2025, was $(5.29) million, compared to $(2.01) million for the same period in 2024[177] Assets and Liabilities - Total current assets decreased to $5.921 million as of September 30, 2025, from $6.903 million as of December 31, 2024, reflecting a decline of 14.2%[19] - Total liabilities decreased to $3.967 million as of September 30, 2025, from $5.240 million as of December 31, 2024, a reduction of 24.3%[21] - Cash and cash equivalents decreased to $1.454 million as of September 30, 2025, from $1.967 million as of December 31, 2024, a decline of 26%[19] - Total shareholders' equity as of September 30, 2025, was $2.965 million, a slight decrease from $2.985 million as of December 31, 2024[21] Cash Flow - Negative cash flows from operating activities for the nine months ended September 30, 2025, were $5,637,000, up from $4,781,000 in 2024, indicating an 18% increase in cash outflow[40] - The company had cash and cash equivalents of $1,454,000 and restricted cash equivalents of $304,000 as of September 30, 2025, totaling $1,758,000, down from $2,541,000 in 2024, a decrease of 31%[36] - Net cash used in operating activities for the nine months ended September 30, 2025, was $5.6 million, an increase from $4.78 million in the same period of 2024, primarily due to lower sales[212] - The net change in cash for the nine months ended September 30, 2025, was a decrease of $509,000, compared to a decrease of $2.97 million in the same period of 2024[211] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $1.947 million, an increase of 8.6% compared to $1.793 million for the same period in 2024[24] - As of September 30, 2025, the Company had received approximately $14,373,000 in research and development grants from the Government of Israel, with a potential royalty obligation based on future sales[83] Financing Activities - Proceeds from the issuance of common stock through at-the-market offerings (ATM) amounted to $2,637,000 in 2025, with offering costs of $262,000[40] - The company completed a private placement in July 2025, raising approximately $1,000,000 in gross proceeds through the issuance of common stocks and warrants[89] - The company entered into a private placement on June 30, 2025, issuing 1,626,019 shares of Common Stock for total gross proceeds of approximately $1 million[184] - The company completed a private placement on September 27, 2025, raising approximately $850,000 by issuing 871,766 shares of Common Stock and Pre-Funded Warrants[207] - The company has a commitment to issue up to $30 million in aggregate gross purchase price of newly issued shares under the Equity Line of Credit Agreement over a 36-month period[113] Compliance and Regulatory Issues - The company is under scrutiny for compliance with Nasdaq listing requirements, having received notifications regarding minimum shareholders' equity and bid price compliance[45][46] - The company plans to seek shareholder approval for a proposed reverse stock split to regain compliance with Nasdaq bid price requirements by December 5, 2025[51] - The company is subject to a delisting penalty provision that could increase financial obligations if it fails to remain listed on the Nasdaq Capital Market[199] Inventory and Receivables - As of September 30, 2025, the total inventory amounted to $2,675,000, an increase from $2,436,000 as of December 31, 2024, with inventory write-downs of $140,000 for the nine months ended September 30, 2025[79] - The Company reported trade receivables concentration with Customer A at 19% and Customer B at 14% as of September 30, 2025[76] Market and Operational Strategy - The company has focused on expanding its technology and product offerings to serve the wide-area IoT, federal, and DoD markets, introducing cyber-aware networking solutions in 2024[154] - The company is closely monitoring political and military developments in the region, assessing their potential impact on operations and financial performance[44] Stock and Warrants - The total outstanding warrants were 12,027,944, with exercise prices ranging from $0.37 to $50[124] - The company received approximately $1.6 million in gross proceeds from the exercise of existing warrants at an exercise price of $0.37 per share[97] - The exercise price for Series A-3 and Series A-4 warrants is set at $0.615 per share, with a total of 4,878,057 shares potentially issuable[95]