Financial Performance - Revenues for the three months ended March 31, 2023, were approximately $354,000, an increase of 30% or $82,000 compared to $272,000 in the same period of 2022[85]. - Gross profit increased by approximately 122% to $235,000 for the three months ended March 31, 2023, compared to $106,000 in the same period of 2022[88]. - Gross profit as a percentage of revenues improved to approximately 66% for the three months ended March 31, 2023, from 39% in the same period of 2022[89]. - Research and development expenses decreased to approximately $55,000 for the three months ended March 31, 2023, from $66,000 in the same period of 2022, representing a decrease of 17%[89]. - Selling and marketing expenses were approximately $214,000 for the three months ended March 31, 2023, a slight increase of 2% from $210,000 in the same period of 2022[92]. - General and administrative expenses increased by approximately 8% to $1,021,000 for the three months ended March 31, 2023, compared to $942,000 in the same period of 2022[95]. - Net loss decreased by approximately $35,000, or 3%, to approximately $1,097,000 for the three months ended March 31, 2023, from $1,132,000 in the same period of 2022[99]. - Cash used in operating activities was approximately $1,200,000 for the three months ended March 31, 2023, compared to $1,741,000 for the same period in 2022[105]. - As of March 31, 2023, the company had cash and cash equivalents of approximately $1,512,000, down from approximately $2,713,000 as of December 31, 2022[104]. - The company expects to continue incurring losses and negative cash flows from operating activities, indicating a need for additional capital to sustain operations[100]. Legal and Regulatory Matters - As of March 31, 2023, the company accrued approximately $1.9 million related to the arbitration award to Protrade, including $0.4 million in interest[76]. - The company is involved in ongoing legal proceedings with Protrade, which claims damages estimated at $3 million[69]. - The company faced delays in production and regulatory approvals due to COVID-19, which may continue to affect operations and financial condition[68]. - The company is subject to risks related to global economic instability, inflation, and market acceptance of its products[65]. - The company has reduced disclosure obligations as a "smaller reporting company," which may affect investor attractiveness[65]. Business Operations - The company focuses on noninvasive biological response-activating devices for wound healing and pain therapy, with products like WoundShield, PainShield, and UroShield[67]. - The company relies on third-party manufacturers and professionals, which may be impacted by external economic factors[68]. - The company experienced a reverse stock split at a ratio of 1-for-20 on February 8, 2023, and regained compliance with Nasdaq listing requirements on February 28, 2023[82]. - The company reported a history of losses and anticipates continued losses, which may impact future financial performance[65]. - The company has a critical accounting policy that requires subjective judgments and estimates, with no material changes since December 31, 2022[83].
NanoVibronix(NAOV) - 2023 Q1 - Quarterly Report