Financial Performance - For the three months ended September 30, 2022, revenues were approximately $97,000, a decrease of 81% or $402,000 compared to $499,000 in the same period of 2021[85]. - Gross profit for the three months ended September 30, 2022, was approximately $80,000, down 65% or $148,000 from $228,000 in the same period of 2021[87]. - Gross profit as a percentage of revenues increased to approximately 82% for the three months ended September 30, 2022, compared to 46% in the same period of 2021[88]. - Revenues for the nine months ended September 30, 2022, were approximately $854,000, a decrease of approximately 7%, or $66,000, from $920,000 in 2021[103]. - Gross profit for the nine months ended September 30, 2022, was approximately $467,000, a decrease of approximately 9%, or $46,000, from $513,000 in 2021[105]. - Net loss decreased by approximately $5,720,000, or 86%, to approximately $955,000 for the three months ended September 30, 2022, from approximately $6,675,000 in the same period of 2021[101]. - Net loss for the nine months ended September 30, 2022, decreased by approximately $8,419,000, or 71%, to approximately $3,389,000 from approximately $11,808,000 in the same period of 2021[117]. Expenses - Research and development expenses for the three months ended September 30, 2022, were approximately $49,000, slightly down from $50,000 in the same period of 2021[89]. - Research and development expenses as a percentage of total revenues were approximately 51% for the three months ended September 30, 2022, compared to 10% in the same period of 2021[89]. - Selling and marketing expenses for the three months ended September 30, 2022, were approximately $217,000, a decrease of 11% or $28,000 from $245,000 in the same period of 2021[91]. - Selling and marketing expenses as a percentage of total revenues were approximately 224% for the three months ended September 30, 2022, compared to 49% for the same period in 2021[93]. - General and administrative expenses decreased by approximately 8%, or $63,000, to approximately $738,000 for the three months ended September 30, 2022, from $801,000 in 2021[95]. - General and administrative expenses as a percentage of total revenues were approximately 332% for the nine months ended September 30, 2022, compared to 289% in 2021[112]. Cash Flow - Cash used in operating activities was approximately $5,704,000 for the nine months ended September 30, 2022, compared to $3,504,000 for the same period in 2021[124]. - The company had a cash balance of just over $1,972,000 as of September 30, 2022, down from approximately $7,737,000 as of December 31, 2021[123]. Regulatory and Legal Issues - The company has substantial doubt about its ability to continue as a going concern due to insufficient resources to fund operations for the next twelve months[70]. - The company is facing regulatory challenges, including a notification from the FDA to discontinue new marketing of PainShield Plus products until formal approval is obtained[82]. - The company is involved in ongoing legal proceedings with Protrade Systems, Inc., which claims damages estimated at $3 million[73]. Revenue Sources - The portion of revenues derived from distributors was 83% for the three months ended September 30, 2022, down from 95% in the same period of 2021[86].
NanoVibronix(NAOV) - 2022 Q3 - Quarterly Report