Cuentas(US:CUEN)2022-11-13 16:00Revenue Growth - Revenue for the nine months ended September 30, 2022, totaled $2,207,000, a significant increase from $489,000 for the same period in 2021, reflecting a growth of approximately 351%[90] - Sales of digital products and General-Purpose Reloadable Cards contributed $1,723,000 to revenue in the nine months ended September 30, 2022, compared to $49,000 in the same period of 2021[91] - Revenue for the three months ended September 30, 2022, was $1,143,000, a significant increase from $109,000 in the same period of 2021, representing a growth of 949.5%[102] Cost and Profitability - Cost of revenues for the nine months ended September 30, 2022, was $1,902,000, up from $361,000 in the prior year, indicating a rise of approximately 426%[92] - Gross profit for the nine months ended September 30, 2022, was $305,000, compared to $128,000 for the same period in 2021, representing an increase of approximately 138%[94] - Gross profit for the three months ended September 30, 2022, was $116,000, compared to a gross loss of $18,000 in the same period of 2021, marking a turnaround in profitability[107] Operating Expenses - Operating expenses totaled $9,320,000 for the nine months ended September 30, 2022, an increase of 51.7% from $6,144,000 for the same period in 2021[96] - Selling, general and administrative expenses increased to $7,962,000 for the nine months ended September 30, 2022, up 66.4% from $4,787,000 in 2021[97] Net Loss - The company incurred a net loss of $9,085,000 for the nine months ended September 30, 2022, compared to a net loss of $6,082,000 for the same period in 2021, reflecting a 49.4% increase in losses[101] Assets and Liabilities - As of September 30, 2022, the company had total current assets of $2,429,000 and total current liabilities of $2,720,000, resulting in a working capital deficit of $291,000[116] Cash Flow - The company reported cash used in operating activities of $6,523,000 for the nine months ended September 30, 2022, compared to $7,227,000 for the same period in 2021, showing a decrease in cash burn[121] - Financing activities generated net cash of $2,688,000 from the sale of common stock for the nine months ended September 30, 2022, compared to $15,797,000 in the same period of 2021[124] Accumulated Deficit - The accumulated deficit as of September 30, 2022, was approximately $47,304,000, raising substantial doubt about the company's ability to continue as a going concern[119] Strategic Initiatives - The Company has entered into a Membership Interest Purchase Agreement to acquire 19.99% of Cuentas SDI for $750,000, with an option to acquire the remaining 80.01% for an additional $2,459,000[82] - A Marketing Agreement was established with LSI Group to market Cuentas Prepaid Debit Card and Mobile App, aiming to sign 200,000 customers in one year for international remittances[84] - The Company is focused on providing digital and mobile payment solutions for underbanked individuals, enhancing accessibility and security in financial services[86] - Cuentas is strategically aligned with a major digital gift card provider in the USA, anticipating increased demand for digital offerings[88] - The Company is actively monitoring regulatory changes in the payments industry to ensure compliance and mitigate risks associated with non-compliance[87] Accounting Standards - Recently issued accounting standards are not expected to have a material impact on the Company's consolidated financial statements[129] - The Company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[130]