Odysight.ai Reports 145% Revenue Growth, Net Loss in 9-Month Period Ending September 30, 2024

Odysight.ai Inc. (formerly ScoutCam Inc.) reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company achieved total revenues of $2,660,000, marking a substantial increase of 145% compared to $1,087,000 for the same period in 2023. This growth was primarily driven by a Fortune 500 multinational healthcare corporation, which contributed to an increase in both units sold and the sale price per unit. For the third quarter alone, revenues reached $1,292,000, a remarkable rise of 1,075% from $110,000 in the prior year.

The gross profit for the nine-month period was $696,000, a turnaround from a gross loss of $561,000 in the same period last year. This improvement was attributed to increased revenues and formalized negotiations with the healthcare corporation. However, the company reported a net loss of $(8,211,000) for the nine months, slightly higher than the $(8,104,000) loss reported in the same period of 2023. The net loss per share improved to $(0.74) from $(0.86) year-over-year.

Operating expenses reflected a mixed trend. Research and development expenses increased by 15% to $4,705,000, driven by higher payroll, stock-based compensation, and costs associated with Industry 4.0 projects. Conversely, sales and marketing expenses decreased by 8% to $806,000, while general and administrative expenses rose by 22% to $3,929,000, largely due to increased professional services and payroll costs.

The company’s total liabilities as of September 30, 2024, were $5,259,000, a decrease from $5,022,000 at the end of 2023. Total shareholders’ equity increased to $20,914,000 from $17,807,000, reflecting the issuance of 2,145,000 shares during the nine months, which raised approximately $9.8 million in additional paid-in capital.

Cash flows showed improvement, with net cash used in operating activities decreasing to $(5,522,000) from $(7,338,000) in the previous year. The company reported cash and cash equivalents of $21,224,000 at the end of the period, up from $15,938,000 a year earlier.

Strategically, Odysight.ai has expanded its operations with the incorporation of a new subsidiary, D. VIEW Ltd, aimed at serving the defense market in Israel. The company continues to focus on significant research and development efforts, anticipating the need for additional funding to support operations until profitability is achieved.