NanoVibronix Inc
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
FEED$1.03-69.3%Stored close · as of Sep 15, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001493152-24-032138
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001493152-24-045726
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 70 previous paragraphs and 75 current paragraphs.
32 unchanged; 32 reworded; 11 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Compliance with Nasdaq Continued Listing Rules
Current report
On April 10, 2024, the Company received a letter (the “Letter”) from the Listing Qualifications Department of Nasdaq indicating that, based upon the closing bid price of the Company’s Common Stock for the 30 consecutive business days between February 27, 2024 and April 9, 2024, the Company did not meet the minimum bid price of $1.00 per share required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Rule”). The Letter also indicated that the Company was provided with a compliance period of 180 calendar days, or until October 7, 2024 (the “Compliance Period”), in which to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(A).
Current report
Pursuant to the Letter, in order to regain compliance with Nasdaq’s minimum bid price requirement, the Company’s Common Stock was required to maintain a minimum closing bid price of $1.00 for at least ten consecutive business days during the Compliance Period. In the event that the Company did not regain compliance by the end of the Compliance Period, the Company may have been eligible for additional time to regain compliance. To qualify, the Company was required to meet the continued listing requirement for the market value of its publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and was required to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split if necessary. If the Company met these requirements, the Company may have been eligible for an additional 180 calendar days to regain compliance.
Current report
The Company did not regain compliance with the Rule by October 7, 2024, and on October 8, 2024, Nasdaq notified the Company that the Company was not eligible for an additional 180 day compliance period because the Company does not comply with the $5,000,000 minimum stockholders’ equity initial listing requirement for The Nasdaq Capital Market, and accordingly, the Company’s securities were subject to delisting from Nasdaq unless the Company timely requested a hearing before the Nasdaq Hearings Panel (the “Panel”). The Company subsequently timely requested a hearing before the Panel, which has stayed any further action by Nasdaq at least pending completion of the hearing and the expiration of any extension that may be granted by the Panel. The hearing is scheduled to be held on December 5, 2024. If the Company is delisted from Nasdaq, among other things, it will increase the difficulty in the Company’s ability to raise money through the sale of its securities.
Current report
On October 3, 2022, the court issued a decision granting Protrade its petition to confirm the award and denying the cross-motion.
Current report
Gross Profit. For the three months ended September 30, 2024 and 2023, gross profit was approximately $133,000 and $349,000, respectively, a decrease of approximately 62%, or $216,000, between the periods. The decrease in gross profit was mainly due to decrease in the sales of devices which have higher gross margins, and to a lesser extent the write-off of obsolete inventory.
Current report
Selling and marketing expenses as a percentage of total revenues were approximately 48% and 41% for the three months ended September 30, 2024 and 2023, respectively.
Current report
General and administrative expenses as a percentage of total revenues were approximately 179% and 174% for the three months ended September 30, 2024 and 2023, respectively.
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
Research and Development Expenses. For the nine months ended September 30, 2024 and 2023, research and development expenses were approximately $557,000 and $123,000, respectively, an increase of approximately 353%, or $434,000, between the periods. The increase was due to the costs of our product development project which we started in 2024 as well as the cost of our clinical trial test program with the University of Michigan which took place in 2024.
Current report
General and administrative expenses as a percentage of total revenues were approximately 110% and 251% for the nine months ended September 30, 2024 and 2023, respectively.
Removed paragraphs (5)
Previous report
Selling and marketing expenses as a percentage of total revenues were approximately 24% and 77% for the three months ended June 30, 2024 and 2023, respectively.
Previous report
General and administrative expenses as a percentage of total revenues were approximately 88% and 328% for the three months ended June 30, 2024 and 2023, respectively.
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous report
Research and Development Expenses. For the six months ended June 30, 2024 and 2023, research and development expenses were approximately $308,000 and $90,000, respectively, a increase of approximately 242%, or $218,000, between the periods. The increase was due to the addition of product redevelopment costs of $150,000 and clinical trial costs of $84,000 incurred in 2024.
Previous report
General and administrative expenses as a percentage of total revenues were approximately 96% and 306% for the six months ended June 30, 2024 and 2023, respectively.
Reworded paragraphs (32)
Previous wording
We are a medical device company focusing on noninvasive biological response-activating devices that target wound healing and pain therapy and can be administered at home, without the assistance of medical professionals. Our WoundShield, PainShield and UroShield products are backed by novel technology which relates to ultrasound delivery through surface acoustic waves. The global wound care device market totaled approximately $20.8 billion in 2022 and is expected to grow to $27.2 billion by 2027 at a CAGR of 5.4% during 2022-2027 (as reported by Markets and Markets in June 2022).
Current wording
We are a medical device company focusing on noninvasive biological response-activating devices that target wound healing and pain therapy and can be administered at home, without the assistance of medical professionals. Our WoundShield, PainShield and UroShield products are backed by novel technology which relates to ultrasound delivery through surface acoustic waves.
Previous wording
The Company’s unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. During the six months ended June 30, 2024, the Company’s cash used in operations was $1,113,000 leaving a cash balance of $2,170,000 as of June 30, 2024. Because the Company does not have sufficient resources to fund its operations for the next twelve months from the date of this filing, management has substantial doubt about the Company’s ability to continue as a going concern.
Current wording
The Company’s unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. During the nine months ended September 30, 2024, the Company’s cash used in operations was $1,968,000 leaving a cash balance of $1,305,000 as of September 30, 2024. Because the Company does not have sufficient resources to fund its operations for the next twelve months from the date of this filing, management has substantial doubt about the Company’s ability to continue as a going concern.
Previous wording
As of June 30, 2024 and December 31, 2023, the Company accrued the amount of the arbitration award to Protrade of approximately $2.0 million for both periods including interest which is classified in “Other accounts payable and accrued expenses.”
Current wording
As of September 30, 2024 and December 31, 2023, the Company accrued the amount of the arbitration award to Protrade of approximately $2.1 million for both periods including interest which is classified in “Other accounts payable and accrued expenses.”
Previous wording
Revenues. For the three months ended June 30, 2024 and 2023, our revenues were approximately $817,000 and $294,000, respectively, an increase of approximately 178%, or $523,000, between the periods. The increase was mainly attributable to increased sales from our Ultra Pain Products Inc. (“UPPI”) distributor as well an increase of customers from Veteran Administration facilities or through workman’s compensation programs, referred to us from three sales representatives to whom we sold our products directly for the three months ended June 30, 2024, as compared to the three months ended June 30, 2023. Our revenues may fluctuate as we add new customers or when existing distributors make large purchases of our products during one period and no purchases during another period. Our revenues by quarter may not be linear or consistent. We do not anticipate that our revenues will be impacted by inflation or changing prices in the foreseeable future.
Current wording
Revenues. For the three months ended September 30, 2024 and 2023, our revenues were approximately $376,000 and $458,000, respectively, a decrease of approximately 18%, or $82,000, between the periods. The decrease was mainly attributable to decrease of revenues received from customers from Veteran Administration facilities or through workman’s compensation programs, referred to us from three sales representatives to whom we sold our products directly due to our lowering of certain wholesale prices to these representatives during the three months ended September 30, 2024, as compared to the three months ended September 30, 2023. Our revenues may fluctuate as we add new customers or when existing distributors make large purchases of our products during one period and no purchases during another period. Our revenues by quarter may not be linear or consistent. We do not anticipate that our revenues will be impacted by inflation or changing prices in the foreseeable future.
Previous wording
For the three months ended June 30, 2024, the percentage of revenues attributable to our products was: PainShield Plus – 38%, PainShield MD – 45%, Painshield Plus Monthly Kits – 7% and Painshield MD Monthly Kits – 10%. For the three months ended June 30, 2023, the percentage of revenues attributable to our products was: PainShield – 100% and UroShield – 0%.
Current wording
For the three months ended September 30, 2024, the percentage of revenues attributable to our products was: PainShield Plus – 35%, PainShield MD – 17%, Euroshield clips – 2%, Painshield Plus Monthly Kits – 26% and Painshield MD Monthly Kits – 20%. For the three months ended September 30, 2023, the percentage of revenues attributable to our products was: PainShield Plus – 53%, PainShield MD – 44% and UroShield – 3% .
Previous wording
Gross profit as a percentage of revenues was approximately 52% and 73% for the three months ended June 30, 2024 and 2023, respectively. The decrease in gross profit as a percentage of revenues is mainly due to the reasons described above.
Current wording
Gross profit as a percentage of revenues was approximately 35% and 76% for the three months ended September 30, 2024 and 2023, respectively. The decrease in gross profit as a percentage of revenues is mainly due to the reasons described above.
Previous wording
Research and Development Expenses. For the three months ended June 30, 2024 and 2023, research and development expenses were approximately $187,000 and $35,000, respectively, an increase of approximately 434%, or $152,000, between the periods. The increase was mainly due to product redevelopment costs of $150,000 incurred during 2024.
Current wording
Research and Development Expenses. For the three months ended September 30, 2024 and 2023, research and development expenses were approximately $249,000 and $33,000, respectively, an increase of approximately 655%, or $216,000, between the periods. The increase was mainly due to product redevelopment costs that began during 2024.
Previous wording
Research and development expenses as a percentage of total revenues were approximately 44% and 12% for the three months ended June 30, 2024 and 2023, respectively. This increase was due to higher expenses incurred in 2024 compared to revenue.
Current wording
Research and development expenses as a percentage of total revenues were approximately 66% and 7% for the three months ended September 30, 2024 and 2023, respectively. This increase was due to higher expenses incurred in 2024 compared to revenue.
Previous wording
Selling and Marketing Expenses. For the three months ended June 30, 2024, and 2023, selling and marketing expenses were approximately $199,000 and $227,000, respectively, a decrease of approximately 12%, or $28,000, between the periods. The decrease was mainly due to reduced consulting fees and related expenses due to completed wed development project in 2024 and reduce use of targeted sales.
Current wording
Selling and Marketing Expenses. For the three months ended September 30, 2024, and 2023, selling and marketing expenses were approximately $181,000 and $190,000, respectively, a decrease of approximately 5%, or $9,000, between the periods. The decrease was mainly due to reduced fees related to the completed web development project in 2023.
Previous wording
General and Administrative Expenses. For the three months ended June 30, 2024 and 2023, general and administrative expenses were approximately $716,000 and $963,000, respectively, a decrease of approximately 88%, or $247,000, between the periods. The decrease was primarily due to a decrease in legal fees related to securities and litigation matters, as well as accounting fees incurred in 2024, as compared to 2023.
Current wording
General and Administrative Expenses. For the three months ended September 30, 2024 and 2023, general and administrative expenses were approximately $673,000 and $796,000, respectively, a decrease of approximately 15%, or $123,000, between the periods. The decrease was primarily due to a decrease in legal fees related to securities and litigation matters, as well as accounting fees incurred in 2024, as compared to 2023.
Previous wording
Interest expense. For the three months ended June 30, 2024, and 2023, interest expense was $34,000 and $33,000, respectively. This pertains to the interest on the Company’s judgment liability for both years.
Current wording
Interest expense. For the three months ended September 30, 2024, and 2023, interest expense was $33,000 and $35,000, respectively. This pertains to the interest on the Company’s judgment liability for both years.
Previous wording
Income tax expense. For the three months ended June 30, 2024 and 2023, tax expenses were $4,000 and $13,000, respectively. The tax expense is computed by multiplying income before taxes at our Israeli subsidiary by the appropriate tax rate.
Current wording
Income tax expense. For the three months ended September 30, 2024 and 2023, tax expenses were $3,000 and $3,000, respectively. The tax expense is computed by multiplying income before taxes at our Israeli subsidiary by the appropriate tax rate.
Previous wording
*Financial expense, net.*For the three months ended June 30, 2024 and 2023, financial expenses, net was approximately $24,000 and $(19,000), respectively, an increase of approximately $43,000 between the periods mainly due to the change in fair value of the investment in Sanuwave.
Current wording
*Financial expense, net.*For the three months ended September 30, 2024 and 2023, financial expenses, net was approximately $9,000 and $(19,000), respectively, an increase of approximately $28,000 between the periods mainly due to the gain/loss related to the termination of the investment in Sanuwave and interest payments received.
Previous wording
Net loss. Our net loss decreased by approximately 36%, or $386,000, to approximately $688,000 for the three months ended June 30, 2024 from approximately $1,074,000 in the same period of 2023. The decrease in net loss resulted primarily from the factors described above.
Current wording
Net loss. Our net loss increased by approximately 37%, or $270,000, to approximately $997,000 for the three months ended September 30, 2024 from approximately $724,000 in the same period of 2023. The decrease in net loss resulted primarily from the factors described above.
Previous wording
Revenues. For the six months ended June 30, 2024 and 2023, our revenues were approximately $1,738,000 and $648,000 respectively, an increase of approximately 168%, or $1,090,000 between the periods. The increase was due to increase revenues from customers from Veteran Administration facilities and through workman’s compensation programs who are referred to us from certain sales representatives, and UPPI in 2024. Our revenues may fluctuate as we add new consumers or when existing distributors or consumers make large purchases of our products during one period and no purchases during another period. Therefore, any growth or decrease in revenues by quarter may not be linear or consistent.
Current wording
Revenues. For the nine months ended September 30, 2024 and 2023, our revenues were approximately $2,114,000 and $1,106,000 respectively, an increase of approximately 91%, or $1,008,000 between the periods. The increase was due to increased revenues from customers from Veteran Administration facilities and through workman’s compensation programs who are referred to us from certain sales representatives, and UPPI in 2024. Our revenues may fluctuate as we add new consumers or when existing distributors or consumers make large purchases of our products during one period and no purchases during another period. Therefore, any growth or decrease in revenues by quarter may not be linear or consistent.
Previous wording
For the six months ended June 30, 2024, the percentage of revenues attributable to our products was: PainShield MD- 51%, PainShield Plus – 23%, Painshield MD Monthly Kits – 19% and Painshield Plus Monthly Kits – 5% and UroShield – 0%. For the six months ended June 30, 2023, the percentage of revenues attributable to our products was: PainShield - 95% and UroShield – 5%. For the six months ended June 30, 2024 and 2023, the portion of our revenues that was derived from distributors was 41% and 91%, respectively.
Current wording
For the nine months ended September 30, 2024, the percentage of revenues attributable to our products was: PainShield MD- 46%, PainShield Plus – 25%, Euroshield clips – 1%, Painshield MD Monthly Kits – 21% and Painshield Plus Monthly Kits – 7% and UroShield – 0%. For the nine months ended September 30, 2023, the percentage of revenues attributable to our products was: PainShield Plus - 39%, PainShield MD - 55% and UroShield – 6%. For the nine months ended September 30, 2024 and 2023, the portion of our revenues that were derived from distributors was 38% and 94%, respectively.
Previous wording
Gross Profit. For the six months ended June 30, 2024 and 2023, gross profit was approximately $1,092,000 and $451,000, respectively, an increase of approximately 142% or $641,000. The increase was mainly due to the increase in revenues in 2024. The decrease in the gross margin percentage for the six months ended June 30, 2024 was due to lowering our wholesale sales price awarded to customers from Veteran Administration facilities or through workman’s compensation programs who are referred to us from certain sales representatives, which took place in the second quarter of 2024.
Current wording
Gross Profit. For the nine months ended September 30, 2024 and 2023, gross profit was approximately $1,225,000 and $800,000, respectively, an increase of approximately 53% or $425,000. The increase was mainly due to the increase in revenues in 2024. The decrease in the gross margin percentage for the nine months ended September 30, 2024 was due to lowering our wholesale sales price awarded to customers from Veteran Administration facilities or through workman’s compensation programs who are referred to us from certain sales representatives, which took place in the second quarter of 2024.
Previous wording
Gross profit as a percentage of revenues was approximately 63% and 70% for the six months ended June 30, 2024 and 2023, respectively. The decrease in gross profit as a percentage resulted primarily from the reasons described above.
Current wording
Gross profit as a percentage of revenues was approximately 58% and 72% for the nine months ended September 30, 2024 and 2023, respectively. The decrease in gross profit as a percentage resulted primarily from the reasons described above.
Previous wording
Research and development expenses as a percentage of total revenues were relatively steady totaling approximately 18% and 14% for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Research and development expenses as a percentage of total revenues were relatively steady totaling approximately 26% and 11% for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Selling and Marketing Expenses. For the six months ended June 30, 2024 and 2023, selling and marketing expenses were approximately $364,000 and $441,000, respectively, a decrease of approximately 17%, or $77,000, between the periods. The decrease was due to consulting fees and costs incurred during the six months ended June 30, 2023, related to our website development project which was completed in 2023.
Current wording
Selling and Marketing Expenses. For the nine months ended September 30, 2024 and 2023, selling and marketing expenses were approximately $545,000 and $631,000, respectively, a decrease of approximately 14%, or $86,000, between the periods. The decrease was due to consulting fees and costs incurred during the nine months ended September 30, 2023, related to the website development project which was completed in 2023.
Previous wording
Selling and marketing expenses as a percentage of total revenues were relatively steady totaling approximately 21% and 68% for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Selling and marketing expenses as a percentage of total revenues were relatively steady totaling approximately 26% and 57% for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
General and Administrative Expenses. For the six months ended June 30, 2024 and 2023, general and administrative expenses were approximately $1,662,000 and $1,984,000, respectively, a decrease of approximately 16%, or $322,000, between the periods. The decrease was mainly due to a decrease of legal fees related to securities and litigation matters, as well as accounting fees incurred during the six months ended June 30, 2024, as compared to the six months ended June 30, 2023.
Current wording
General and Administrative Expenses. For the nine months ended September 30, 2024 and 2023, general and administrative expenses were approximately $2,335,000 and $2,780,000, respectively, a decrease of approximately 16%, or $445,000, between the periods. The decrease was mainly due to a decrease of legal fees related to securities and litigation matters, as well as accounting fees incurred during the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023.
Previous wording
*Financial expense, net.*For the six months ended June 30, 2024 and 2023, financial expenses, net was approximately $45,000 compared to $(25,000), respectively, an increase of approximately $70,000 between the periods mainly due to the change in fair value of the investment in Sanuwave.
Current wording
*Financial expense, net.*For the nine months ended September 30, 2024 and 2023, financial expenses, net was approximately $54,000 compared to $(44,000), respectively, an increase of approximately $90,000 between the periods mainly due to the termination of the investment in Sanuwave and interest payments received.
Previous wording
Interest expense. For the six months ended June 30, 2024 and 2023, interest expense was $68,000 and $67,000, respectively. This pertains to the interest on the Company’s judgment liability for the first six months of 2024.
Current wording
Interest expense. For the nine months ended September 30, 2024 and 2023, interest expense was $101,000 and $102,000, respectively. This pertains to the interest on the Company’s judgment liability for the first nine months of 2024.
Previous wording
Income tax expenses. For the six months ended June 30, 2024 and 2023, tax expenses were $11,000 and $15,000, respectively. The tax expense is computed by multiplying income before taxes at our Israeli subsidiary by the appropriate tax rate.
Current wording
Income tax expenses. For the nine months ended September 30, 2024 and 2023, tax expenses were $14,000 and $18,000, respectively. The tax expense is computed by multiplying income before taxes at our Israeli subsidiary by the appropriate tax rate.
Previous wording
Net loss. Our net loss decreased by approximately $895,000, or 41%, to approximately $1,276,000 for the six months ended June 30, 2024 from approximately $2,171,000 in the same period of 2023. The decrease in net loss resulted primarily from the factors described above.
Current wording
Net loss. Our net loss decreased by approximately $625,000, or 22%, to approximately $2,273,000 for the nine months ended September 30, 2024 from approximately $2,898,000 in the same period of 2023. The decrease in net loss resulted primarily from the factors described above.
Previous wording
We have incurred losses in the amount of approximately $1,276,000 during the six months ended June 30, 2024, as we continue to maintain significant net operating losses from operations. We also had negative cash flow from operating activities of $1,113,000 for the six months ended June 30, 2024. We had a cash balance of just over $2,170,000 as of June 30, 2024, and we expect to continue to incur losses and negative cash flows from operating activities. Due to the continued expected negative cash flow from operations and the potential arbitration payment, if we are unsuccessful in our appeals, the Company does not have sufficient resources to fund operations for at least the next twelve months from the date of this filing. As such, there is substantial doubt of our ability to continue as a going concern.
Current wording
We have incurred losses in the amount of approximately $2,274,000 during the nine months ended September 30, 2024, as we continue to maintain significant net operating losses from operations. We also had negative cash flow from operating activities of $1,968,000 for the nine months ended September 30, 2024. We had a cash balance of just over $1,305,000 as of September 30, 2024, and we expect to continue to incur losses and negative cash flows from operating activities. Due to the continued expected negative cash flow from operations and the potential arbitration payment, if we are unsuccessful in our appeals, the Company does not have sufficient resources to fund operations for at least the next twelve months from the date of this filing. As such, there is substantial doubt of our ability to continue as a going concern.
Previous wording
During the six-month period ended June 30, 2024, we met our short-term liquidity requirements from our existing cash reserves and from the sale of our securities. Our future capital requirements and the adequacy of our available funds will depend on many factors, including our ability to successfully commercialize our products, our development of future products, competing technological, and market developments. We expect to continue to incur losses and negative flows from operations. We intend to use the proceeds generated from equity financings, or strategic alliances with third parties, either alone or in combination with equity financing to meet our short-term liquidity requirements as well as to advance our long-term plans. There are no assurances that we will be able to raise additional capital, as required, on terms favorable to us.
Current wording
During the nine-month period ended September 30, 2024, we met our short-term liquidity requirements from our existing cash reserves and from the sale of our securities. Our future capital requirements and the adequacy of our available funds will depend on many factors, including our ability to successfully commercialize our products, our development of future products, competing technological, and market developments. We expect to continue to incur losses and negative flows from operations. We intend to use the proceeds generated from equity financings, or strategic alliances with third parties, either alone or in combination with equity financing to meet our short-term liquidity requirements as well as to advance our long-term plans. There are no assurances that we will be able to raise additional capital, as required, on terms favorable to us.
Previous wording
As of June 30, 2024, we had cash of approximately $2,170,000, compared to approximately $3,283,000 as of December 31, 2023. The decrease in cash was primarily due to our net loss of $1,276,000 which primarily consisted of increased revenues and increased gross margins offset by our operating expenses. We have historically met our cash needs through a combination of issuance of equity, borrowing activities and sales. Our cash requirements are generally for product development, research, and development cost, marketing and sales activities, finance and administrative cost, capital expenditures, and general working capital.
Current wording
As of September 30, 2024, we had cash of approximately $1,305,000, compared to approximately $3,283,000 as of December 31, 2023. The decrease in cash was primarily due to our net loss of $2,274,000 which primarily consisted of increased revenues and increased gross margins offset by our operating expenses. We have historically met our cash needs through a combination of issuance of equity, borrowing activities and sales. Our cash requirements are generally for product development, research, and development cost, marketing and sales activities, finance and administrative cost, capital expenditures, and general working capital.
Previous wording
Cash used in our operating activities was approximately $1,132,000 for the six months ended June 30, 2024, compared to $2,429,000 for the six months ended June 30, 2023.
Current wording
Cash used in our operating activities was approximately $1,968,000 for the nine months ended September 30, 2024, compared to $3,111,000 for the nine months ended September 30, 2023.
Previous wording
Cash used in our investing activities was approximately $3,000 for the six months ended June 30, 2024, compared to $1,000 for the six months ended June 30, 2023.
Current wording
Cash used in our investing activities was approximately $3,000 for the nine months ended September 30, 2024, compared to $1,000 for the nine months ended September 30, 2023.
Previous wording
Cash provided by financing activities was approximately $28,000 for the six months ended June 30, 2024, compared to $7,000 for the six months ended June 30, 2023.
Current wording
Cash provided by financing activities was approximately $1,000 for the nine months ended September 30, 2024, compared to $4,222,000 for the nine months ended September 30, 2023.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Gross Profit. For the three months ended June 30, 2024 and 2023, gross profit was approximately $428,000 and $216,000, respectively, an increase of approximately 98%, or $212, between the periods. The increase was mainly due to increase in revenues from customers from Veteran Administration facilities and through workman’s compensation programs who are referred to us from certain sales representatives, and UPPI in 2024. The decrease in the gross margin percentage for the three months ended June 30, 2024 was due to lowering our wholesale sales price awarded to customers from Veteran Administration facilities or through workman’s compensation programs who are referred to us from certain sales representatives, which took place in the second quarter of 2024.