NanoVibronix Reports Mixed Q3 Results, Net Loss Increases, Raises Concerns Over Going Concern

NanoVibronix, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. For the third quarter of 2024, the company generated revenues of $376,000, an 18% decrease from $458,000 in the same quarter of 2023. This decline was attributed to reduced sales from Veteran Administration facilities and workman’s compensation programs, influenced by lowered wholesale prices to sales representatives. However, for the nine months ended September 30, 2024, revenues increased significantly to $2,114,000, up 91% from $1,106,000 in the prior year.

Gross profit for the third quarter of 2024 was $133,000, down 62% from $349,000 in the third quarter of 2023, reflecting a gross profit margin of approximately 35%, compared to 76% in the prior year. The nine-month gross profit also improved to $1,225,000, a 53% increase from $800,000 in 2023, although the gross profit margin decreased to 58% from 72%.

Operating expenses for the third quarter rose to $1,103,000 from $1,019,000 in the same period last year, while total operating expenses for the nine months decreased slightly to $3,437,000 from $3,534,000. The company reported a loss from operations of $(970,000) for the third quarter, compared to $(670,000) in 2023, but a reduced loss of $(2,212,000) for the nine months, down from $(2,734,000) in the previous year.

Net loss for the third quarter of 2024 was $(998,000), an increase from $(727,000) in the same quarter of 2023. For the nine months, the net loss decreased to $(2,274,000) from $(2,898,000) in 2023. The basic and diluted net loss per share improved to $(0.36) for the third quarter and $(0.84) for the nine months, compared to $(0.42) and $(1.73), respectively, in the prior year.

As of September 30, 2024, total current assets decreased to $4,377,000 from $6,487,000 at the end of 2023, with cash on hand dropping to $1,305,000 from $3,283,000. Total liabilities increased slightly to $2,810,000, while total stockholders’ equity fell to $1,872,000 from $3,988,000.

Strategically, the company has faced challenges, including a pending arbitration with Protrade Systems, Inc., which has resulted in an accrued liability of approximately $2 million. Additionally, the company has indicated substantial doubt about its ability to continue as a going concern without raising additional capital to finance ongoing losses.