SaverOne 2014 .(SVRE) - 2025 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2025, decreased by NIS 667 thousand ($209 thousand), or 39.6%, to NIS 1,016 thousand ($318 thousand) compared to NIS 1,683 thousand ($461 thousand) for the year ended December 31, 2024[320]. - Cost of revenues decreased by NIS 356 thousand ($112 thousand), or 33.3%, to NIS 713 thousand ($224 thousand) for the year ended December 31, 2025, compared to NIS 1,069 thousand ($293 thousand) for the year ended December 31, 2024[321]. - The company incurred net losses of approximately NIS 29.443 million ($9.2 million) for the year ended December 31, 2025, compared to NIS 34.938 million ($10.94 million) for the year ended December 31, 2024[307]. - Net loss for the year ended December 31, 2025, decreased by NIS 5,495 thousand ($1,722 thousand), or 15.7%, to NIS 29,443 thousand ($9,230 thousand) compared to NIS 34,938 thousand ($9,580 thousand) for the previous year[329]. - As of December 31, 2025, the company had an accumulated deficit of NIS 199.99 million ($62.7 million) and reported a comprehensive loss of NIS 29.443 million ($9.2 million) for the year[333]. Operating Expenses - Research and development expenses, net decreased by NIS 499 thousand ($156 thousand), or 2.6%, to NIS 18,898 thousand ($5,924 thousand) for the year ended December 31, 2025, compared to NIS 19,397 thousand ($5,319 thousand) for the year ended December 31, 2024[323]. - Selling and marketing expenses decreased by NIS 1,441 thousand ($452 thousand), or 30%, to NIS 3,355 thousand ($1,052 thousand) for the year ended December 31, 2025, compared to NIS 4,796 thousand ($1,315 thousand) for the year ended December 31, 2024[324]. - General and administrative expenses decreased by NIS 1,268 thousand ($397 thousand), or 13.1%, to NIS 8,405 thousand ($2,635 thousand) for the year ended December 31, 2025, compared to NIS 9,673 thousand ($2,652 thousand) for the year ended December 31, 2024[325]. Future Outlook - The company anticipates continued significant losses due to increased operating expenses and capital expenditures related to ongoing investments[307]. - The company anticipates continuing to incur net losses for the foreseeable future as it develops and commercializes its products[335]. - The company believes existing funds will not be sufficient to continue operations for 12 months from the reporting date, necessitating additional financing[336]. Financing Activities - On June 25, 2024, the company closed a transaction selling 12,555,555 ordinary shares for gross proceeds of approximately $1,130 thousand (NIS 4,222)[337]. - On January 31, 2025, the company sold an aggregate of 195,428,970 ordinary shares for approximately $1,520,000 in a registered direct offering[339]. - As of December 31, 2025, the remaining balance of the 2025 notes related to the standby equity purchase agreement is approximately $1,408 thousand (NIS 4,484)[340]. - The company has entered into a Standby Equity Purchase Agreement (SEPA III) with YA, allowing for the issuance of up to $50 million in ADSs from October 30, 2025, to October 30, 2028[505]. Cash Flow - Net cash used in operating activities decreased by NIS 5,199 thousand ($1,630 thousand), or 15.11%, to NIS 29,207 thousand ($9,156 thousand) for the year ended December 31, 2025[342]. - Net cash provided by financing activities increased by NIS 1,534 thousand ($481 thousand), or 5%, to NIS 32,069 thousand ($10,053 thousand) for the year ended December 31, 2025[344]. Risk Management - The company has not entered into any off-balance sheet arrangements that could materially affect its financial condition[330]. - The company does not believe inflation will materially affect its business, financial condition, or results of operations in the reporting period[506]. - The company does not currently hedge foreign currency exchange risk but may consider formal currency hedging transactions in the future[507]. - The company assesses the financial strength of institutions holding its cash and cash equivalents, which are primarily held at a major financial institution in Israel, indicating minimal credit risk[501]. - The company monitors liquidity requirements to ensure sufficient cash for operational needs and may rely on raising additional investment capital[500]. - The company has not invested in riskier securities, thus perceiving minimal risk from changes in equity prices[503]. - The company is exposed to risks from changes in the quoted price of warrants issued during its IPO, which may affect future fundraising efforts[504]. - The company regularly examines customer quality and assesses credit risk based on payment terms and financial conditions[502].