Financial Performance - For the three months ended June 30, 2023, revenues were approximately $294,000, a decrease of 39% compared to $485,000 for the same period in 2022[81]. - Net loss decreased by approximately $228,000, or 18%, to approximately $1,074,000 for the three months ended June 30, 2023, compared to approximately $1,302,000 in the same period of 2022[94]. - Revenues for the six months ended June 30, 2023, were approximately $648,000, a decrease of approximately 14%, or $109,000, from $757,000 in the same period of 2022[95]. Profitability - Gross profit for the three months ended June 30, 2023, was approximately $216,000, a decrease of 23% from $281,000 in the same period in 2022, with a gross profit margin of 73%[83][84]. - Gross profit increased by approximately 17%, or $64,000, to approximately $451,000 for the six months ended June 30, 2023, compared to $387,000 in the same period of 2022[97]. - Gross profit as a percentage of revenues was approximately 70% for the six months ended June 30, 2023, compared to 51% for the same period in 2022[98]. Expenses - Research and development expenses decreased to approximately $35,000 for the three months ended June 30, 2023, from $61,000 in the same period in 2022, representing 12% of total revenues[86][87]. - Selling and marketing expenses were approximately $227,000 for the three months ended June 30, 2023, down 32% from $333,000 in the same period in 2022, accounting for 77% of total revenues[89][90]. - General and administrative expenses decreased to approximately $963,000 for the three months ended June 30, 2023, from $1,155,000 in the same period in 2022, representing 328% of total revenues[91][92]. - Research and development expenses decreased by approximately 29%, or $37,000, to approximately $90,000 for the six months ended June 30, 2023, from $127,000 in the same period of 2022[99]. - Selling and marketing expenses decreased by approximately 19%, or $102,000, to approximately $441,000 for the six months ended June 30, 2023, compared to $543,000 in the same period of 2022[102]. - General and administrative expenses decreased by approximately 5%, or $113,000, to approximately $1,984,000 for the six months ended June 30, 2023, from $2,097,000 in the same period of 2022[104]. Cash Flow and Liquidity - Cash used in operating activities was approximately $2,429,000 for the six months ended June 30, 2023, compared to $3,740,000 for the same period in 2022[114]. - Cash and cash equivalents decreased to approximately $253,000 as of June 30, 2023, from approximately $2,713,000 as of December 31, 2022[113]. - The company expects to continue incurring losses and negative cash flows from operating activities, raising substantial doubt about its ability to continue as a going concern[109]. Market Outlook - The global wound care device market is projected to grow from approximately $20.8 billion in 2022 to $27.2 billion by 2027, at a CAGR of 5.4%[69]. Compliance and Legal Issues - The company reported stockholders' equity of approximately $2.2 million as of March 31, 2023, below the Nasdaq minimum requirement of $2.5 million[76]. - The company submitted a plan to regain compliance with Nasdaq's minimum stockholders' equity standard by July 7, 2023, and was granted an extension through November 20, 2023[77]. - The company faced a legal claim from Protrade Systems, Inc. for damages estimated at $3 million, with an arbitration award of $1,500,250 against the company[70][71]. - The company’s revenues may fluctuate significantly due to varying orders from major customers, indicating potential volatility in financial performance[81].
NanoVibronix(NAOV) - 2023 Q2 - Quarterly Report