Actelis Networks, Inc. reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company achieved revenues of $6.7 million, a notable increase from $4.6 million during the same period in 2023. This growth was primarily driven by a $1.4 million increase in North American sales and a $0.3 million rise in revenues from the Asia Pacific and Europe, the Middle East, and Africa regions. For the third quarter alone, revenues reached $2.5 million, compared to $0.85 million in Q3 2023.

The gross profit for the nine-month period was $3.9 million, up from $1.5 million in the prior year. Operating expenses decreased to $6.0 million from $7.3 million, leading to an operating loss of $2.1 million, significantly improved from a loss of $5.7 million in the same period last year. The net comprehensive loss also decreased to $2.6 million from $4.4 million, with net loss per share improving to $(0.59) from $(1.93).

Actelis reported total current assets of $7.2 million as of September 30, 2024, up from $5.9 million at the end of 2023. Total liabilities decreased significantly from $10.8 million to $5.7 million, with current liabilities falling from $6.9 million to $5.1 million. Shareholders' equity rose to $2.8 million from $0.2 million, reflecting a positive shift in the company's financial health.

The company has also been active in securing financing, including a $163,000 government grant related to the Swords of Iron war, recognized as other income in Q2 2024. However, Actelis faced challenges, including a notification from Nasdaq regarding non-compliance with listing requirements, which was resolved by confirming compliance on August 27, 2024.

In terms of operational adjustments, Actelis has maintained a workforce of 42 employees, with no significant disruptions reported due to the ongoing conflict in the region. The company has the capability to shift manufacturing operations outside of Israel if necessary.

Despite these positive developments, management has expressed concerns regarding the company's ability to meet its operating obligations over the next year, emphasizing the need for adequate revenue generation to support its cost structure. The company continues to enhance its internal controls and has identified material weaknesses in its financial reporting processes, which it is actively working to remediate.