Thu, May 15, 12:01 PM (37 days ago)
**Odysight.ai Inc. (ODYS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Odysight.ai reported a significant increase in revenue, reaching $2,065,000 for Q1 2025, up from $187,000 in Q1 2024, marking a 1,004% increase. This surge was primarily due to the derecognition of a contract liability associated with a Fortune 500 medical company customer and increased sales from vision-based platform solutions. - **Profit Margins:** The company achieved a gross profit of $538,000 in Q1 2025, compared to a gross loss of $223,000 in Q1 2024. However, the company reported an operating loss of $4,560,000 for Q1 2025, an increase of 36% from the $3,364,000 operating loss in Q1 2024. - **Cash Flow:** Cash used in operating activities was $2,233,000 for Q1 2025, compared to $1,230,000 in Q1 2024. Cash provided by financing activities was $21,022,000 for Q1 2025, primarily from the issuance of shares in a public offering. - **Earnings Changes:** The net loss per share was $0.29 for Q1 2025, slightly improved from $0.30 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** The substantial revenue increase was driven by the derecognition of a contract liability and increased sales from vision-based platform solutions. - **Expenses:** Research and development expenses increased by 59%, sales and marketing expenses by 69%, and general and administrative expenses by 65%, reflecting the company's focus on growth and expansion. - **Backlog:** The backlog as of March 31, 2025, was approximately $14.8 million, reflecting booked orders from various customers. **Trends and Uncertainties:** - **Market Expansion:** Odysight.ai is expanding into new markets, including Industry 4.0, transportation, and energy, leveraging its AI and machine learning capabilities. - **Geopolitical Risks:** The ongoing war in Israel has had some minor disruptions on the company's operations, but it has also led to increased interest from Israeli government agencies and R&D programs. - **Funding:** The company expects to continue incurring significant expenses and may need to raise additional capital to support its growth and operations. **Future Operations Impact:** - **Growth Investments:** Odysight.ai plans to continue investing in research and development, sales and marketing, and general administrative functions to support its growth and expansion. - **Public Listing:** The company's listing on the Nasdaq Capital Market and the successful public offering provide a platform for future fundraising and growth. **Conclusion:** Odysight.ai Inc. demonstrated strong revenue growth in Q1 2025, driven by strategic derecognition of liabilities and increased sales. However, the company continues to operate at a loss, reflecting significant investments in research, development, and market expansion. The geopolitical situation in Israel presents both challenges and opportunities, and the company's future success will depend on its ability to navigate these factors while continuing to innovate and expand its market presence.