Financial Performance - For the three months ended March 31, 2024, revenues increased by approximately 160% to $921,000 compared to $354,000 for the same period in 2023, primarily due to increased sales from the UPPI distributor and new customers from Veteran Administration facilities [91]. - Gross profit for the three months ended March 31, 2024, was approximately $664,000, representing an increase of about 183% from $235,000 in the same period of 2023, with a gross profit margin of 72% compared to 66% in 2023 [93][94]. - Net loss decreased by approximately 46%, from approximately $1,097,000 in Q1 2023 to approximately $588,000 in Q1 2024 [103]. - Cash used in operating activities was approximately $579,000 in Q1 2024, compared to $1,200,000 in Q1 2023 [111]. Research and Development - Research and development expenses rose to approximately $121,000 for the three months ended March 31, 2024, a 120% increase from $55,000 in the same period of 2023, mainly due to the initiation of a clinical trial at the University of Michigan [95]. - Research and development expenses as a percentage of total revenues decreased from 16% in Q1 2023 to approximately 13% in Q1 2024 [96]. Expenses - Selling and marketing expenses decreased by approximately 23%, from $214,000 in Q1 2023 to approximately $165,000 in Q1 2024 [98]. - General and administrative expenses decreased by approximately 7%, from $1,021,000 in Q1 2023 to approximately $947,000 in Q1 2024 [100]. - Interest expense remained constant at $34,000 for both Q1 2024 and Q1 2023 [102]. Cash Position - As of March 31, 2024, the company had a cash balance of $2,700,000 after using $583,000 in operations during the three months ended March 31, 2024, raising concerns about its ability to continue as a going concern [76]. - Cash balance as of March 31, 2024, was approximately $2,700,000, down from approximately $3,283,000 as of December 31, 2023 [110]. - Cash provided by financing activities was approximately $0 in Q1 2024, compared to $7,000 in Q1 2023 [113]. 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% [75]. Compliance and Legal Matters - The company accrued approximately $2.0 million for the arbitration award to Protrade, which includes interest, as of March 31, 2024 [83]. - The company received a letter from Nasdaq indicating non-compliance with the minimum bid price requirement of $1.00 per share, with a compliance period of 180 days until October 7, 2024 [84][85]. - The company had no material commitments to capital expenditures as of March 31, 2024, other than $2 million owed under a court decision [108]. Future Concerns - The company expects to continue incurring losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern [105].
NanoVibronix(NAOV) - 2024 Q1 - Quarterly Report