Financial Performance - Revenues from product sales for the nine months ended September 30, 2022, were $169,943, a decrease of 31.7% from $248,840 in the same period of 2021[23] - Gross profit for the nine months ended September 30, 2022, was $90,694, down 50.1% from $180,909 in the prior year[23] - The operating loss for the nine months ended September 30, 2022, was $4,390,447, compared to $3,131,966 in the same period of 2021, indicating an increase of 40.2%[23] - Net loss attributable to the Company's stockholders' equity for the nine months ended September 30, 2022, was $4,345,833, compared to $3,260,924 in the same period of 2021, reflecting a rise of 33.2%[23] - The net loss for the nine months ended September 30, 2022, was $4,372,949, compared to a loss of $3,295,803 for the same period in 2021, representing an increase of approximately 32.7%[28] - Total revenue for the nine months ended September 30, 2022 was $169,943, a decrease of $78,897, or 32%, compared to $248,840 for the same period in 2021[95] - Gross profit for the three months ended September 30, 2022 was $26,831, an increase of $9,112, or 51%, compared to $17,719 for the same period in 2021[88] - Total comprehensive loss for the three months ended September 30, 2022 was $1,769,175, an increase of $468,892, or 36%, compared to $1,300,283 for the same period in 2021[93] Expenses - Research and development expenses increased to $521,239 for the nine months ended September 30, 2022, compared to $363,003 in the same period of 2021, representing a rise of 43.7%[23] - Research and development expenses for the three months ended September 30, 2022 were $198,501, an increase of $132,031, or 199%, compared to $66,470 for the same period in 2021[89] - Selling and marketing expenses for the three months ended September 30, 2022 were $117,107, an increase of $48,088, or 70%, compared to $69,019 for the same period in 2021[90] - General and administrative expenses for the three months ended September 30, 2022 were $1,495,395, an increase of $320,658, or 27%, compared to $1,174,737 for the same period in 2021[91] - The company recorded $105,358 in share-based compensation expenses related to the February 2022 Warrant during the nine months ended September 30, 2022[41] - The company recorded share-based compensation expenses of $136,000 during the nine months ended September 30, 2022, related to a consulting agreement[49] - The company incurred stock-based compensation costs of $65,270 for the nine months ended September 30, 2022, compared to $202,966 for the same period in 2021, indicating a decrease of approximately 67.8%[57] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2022, were $6,689,979, slightly down from $6,750,938 as of December 31, 2021[21] - The total cash and cash equivalents at the end of the period was $6,739,686, a decrease from $7,826,045 at the end of the same period in 2021, representing a decline of about 13.9%[29] - Cash used in operating activities for the nine months ended September 30, 2022, was $4,126,702, up from $3,189,906 in 2021, indicating a year-over-year increase of about 29.4%[29] - Net cash used in operating activities was $4,126,702 for the nine months ended September 30, 2022, compared to $3,189,906 for the same period in 2021, reflecting an increase primarily due to a net loss of $4,372,949[111] - Net cash used in investing activities was $35,430 for the nine months ended September 30, 2022, up from $23,760 for the same period in 2021, mainly due to increased purchases of property and equipment[112] - Net cash provided by financing activities was $4,097,441 for the nine months ended September 30, 2022, a decrease from $10,766,033 for the same period in 2021, attributed to lower proceeds from the August 2022 Underwritten Offering compared to the May 2021 Underwritten Offering[112] - The company anticipates that its cash balances will be sufficient to conduct operations for at least twelve months from the date of the financial statements[109] Shareholder Equity and Stock - Total stockholders' equity increased to $7,016,578 as of September 30, 2022, from $6,412,611 as of December 31, 2021, marking an increase of 9.4%[21] - Loss per share (basic and diluted) for the nine months ended September 30, 2022, was $(1.39), compared to $(1.49) in the same period of 2021[23] - The company issued 1,600,000 shares, net of issuance costs of $696,670, during the reporting period[26] - The company completed a public offering of 1,600,000 shares at a price of $3.00 per share on August 15, 2022[71] - The company raised $4,800,000 from a public offering of 1,600,000 shares at $3.00 per share on August 15, 2022[33] - The company plans to issue 50,000 shares of Common Stock to a consultant under an investor relations consulting agreement, with quarterly issuances of 9,000 shares commencing January 1, 2023[66] - The company adopted the 2022 Share Incentive Plan, allowing for the grant of up to 1,000,000 options to service providers[62] - The company had 234,674 stock options outstanding as of September 30, 2022, with a weighted average exercise price of $3.00[56] - The aggregate intrinsic value of the stock options outstanding as of September 30, 2022, was $27,364, based on the company's stock price of $1.90[56] Risks and Uncertainties - The company continues to face uncertainties due to the COVID-19 pandemic, impacting global supply chains and economic activity, although manufacturing operations remain uninterrupted[34] - The company faces various risks that could materially impact its business operations or financial results, as outlined in its 2021 Annual Report[122] Internal Controls - As of September 30, 2022, the company's disclosure controls and procedures were evaluated and deemed effective by the Chief Executive Officer and Chief Financial Officer[119] - There were no changes in internal control over financial reporting during the period covered by this report that materially affected the company's internal control[120]
Save Foods(SVFD) - 2022 Q3 - Quarterly Report