ViewBix Inc(VBIX) - 2025 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended September 30, 2025, were $2,717 thousand, a decrease of 57.7% compared to $6,281 thousand during the same period in 2024 [259]. - Revenues from Cortex's content platform were $2,371 thousand for the three months ended September 30, 2025, down 56.8% from $5,492 thousand in the prior year, primarily due to the Cortex Adverse Effect [260]. - Revenues from Gix Media's Search Platform were $342 thousand for the three months ended September 30, 2025, a decrease of 56.7% compared to $789 thousand during the same period in the prior year [261]. - Revenues for the nine months ended September 30, 2025, were $7,731 thousand, a decrease of 67.24% compared to $23,616 thousand during the same period in the prior year [271]. - Revenues from Cortex's content platform were $6,486 thousand, down 66.34% from $19,240 thousand in the prior year, primarily due to the Cortex Adverse Effect [272]. - Revenues from Gix Media's Search Platform were $1,225 thousand, a decrease of 71.94% compared to $4,376 thousand in the prior year, attributed to reduced search referrals and credit line decreases from partners [273]. Expenses and Financial Metrics - Traffic-acquisition and related costs were $2,133 thousand for the three months ended September 30, 2025, down 58.8% from $5,145 thousand in the prior year [262]. - Research and development expenses decreased to $115 thousand for the three months ended September 30, 2025, compared to $338 thousand during the same period in 2024 [263]. - Selling and marketing expenses decreased to $173 thousand for the three months ended September 30, 2025, down 47.4% from $329 thousand in the prior year [264]. - General and administrative expenses increased to $619 thousand for the three months ended September 30, 2025, up 42.3% from $435 thousand during the same period in 2024 [265]. - An intangible assets and goodwill impairment loss of $2,375 thousand was recorded during the three months ended September 30, 2025, compared to $0 in the same period in 2024 [267]. - Net financial expenses were $668 thousand for the three months ended September 30, 2025, compared to $152 thousand net financial income during the same period in the prior year [269]. - Traffic-acquisition costs were $6,336 thousand, down 64.73% from $19,214 thousand in the prior year, reflecting decreased revenues from both platforms [274]. - Research and development expenses were $387 thousand, a significant decrease of 75.83% from $1,600 thousand in the prior year, due to expense reductions in both platforms [275]. - Selling and marketing expenses were $579 thousand, down 59.83% from $1,440 thousand in the prior year, primarily due to salary reductions [276]. - General and administrative expenses were $1,448 thousand, a decrease of 16.67% from $1,737 thousand in the prior year, mainly due to salary and professional service reductions [277]. - Net financial expenses increased to $11,193 thousand from $2,755 thousand in the prior year, primarily due to financing expenses from facility agreements [281]. - The company reported a negative cash flow from operating activities of $2,551 thousand for the nine months ended September 30, 2025, compared to a positive cash flow of $1,990 thousand in the prior year [291]. Corporate Actions and Acquisitions - The Company completed the sale of Cortex for a total consideration of $800,000, which includes $200,000 in cash and $600,000 in preferred shares [233]. - The Company entered into a non-binding term sheet to acquire 100% of Quantum X Labs Ltd., potentially issuing 40% of its capital stock in exchange [235]. - The Quantum Acquisition may involve additional shares issuance based on achieving specific development milestones [236]. - The Private Placement Offering involves the sale of 800,000 shares of common stock at a price of $3.75 per share, expected to close in December 2025 [239]. - The Common Warrants associated with the Private Placement will have an exercise price of $5.625 per share and will expire five years from the issuance date [241]. - Aggregate gross proceeds from the July 2025 Private Placement were approximately $4.5 million, before deducting fees and expenses [250]. - The company raised gross proceeds of $4.5 million from a private placement on July 14, 2025, and expects approximately $3.0 million from a subsequent private placement in November 2025 [301]. Operational Focus - As of September 30, 2025, the Company operates primarily through Gix Media's Search Platform, focusing on digital advertising operations [223]. - The Search Platform generates revenue based on the amount received from Search Engines for user traffic referrals, rather than from advertisement revenue itself [227]. - The Company is focused on developing AI and NLP solutions through its subsidiary Metagramm, which offers a writing tool called "Bubbl" [226]. - The Company faces risks related to cash flow generation and the ability to meet debt obligations, raising concerns about its going concern status [221]. - The Company is subject to a two-year non-compete and non-solicitation covenant following the sale of Cortex [234].