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The financial report presents the financial performance and position of the company for the fiscal year 2024. The company reported a net income of $X, with total revenues of $Y and total expenses of $Z. The company’s balance sheet shows total assets of $W, total liabilities of $V, and total equity of $U. The company’s cash flow statement shows a net cash flow from operating activities of $X, a net cash flow from investing activities of $Y, and a net cash flow from financing activities of $Z. The company’s financial position is strong, with a current ratio of X and a debt-to-equity ratio of Y. The company’s financial performance is also strong, with a return on equity (ROE) of X and a return on assets (ROA) of Y.
Overview
We are a company that develops eco-friendly “green” solutions for the food industry. Our solutions are designed to improve the food safety and shelf life of fresh produce by controlling human and plant pathogens, reducing spoilage, and minimizing food loss.
We operate through two majority-owned Israeli subsidiaries, Save Foods Ltd. and NTWO OFF, as well as a joint venture with Solterra that focuses on solar energy projects. Save Foods Ltd. offers post-harvest treatments to control and prevent pathogen contamination, reduce hazardous chemical use, and extend fresh produce shelf life. NTWO OFF provides a solution to mitigate nitrous oxide emissions, a potent greenhouse gas. The Solterra joint venture presents investment opportunities in solar PV projects.
Our “green” solutions combine proprietary blends of food acids with oxidizing agent-based sanitizers and, in some cases, low-concentration fungicides. This synergistic approach helps clean, sanitize, and control pathogens on fresh produce without leaving toxic residues. Our products also form a temporary protective shield that makes it difficult for pathogens to develop and reduces cross-contamination.
Recent Developments
In February 2025, we entered into an agreement to acquire MitoCareX Bio, a private Israeli company, making it a wholly-owned subsidiary. This transaction will involve issuing shares of our common stock to the MitoCareX founders and shareholders. We have also committed to an initial $1 million investment in MitoCareX and future financing of its ongoing R&D.
In February 2025, we established a new wholly-owned subsidiary, NITO Renewable, to manage and facilitate our investment opportunities in the solar energy sector. This includes a shareholder’s agreement with Solterra Brand Services Italy SRL to finance two battery storage projects in Sicily, Italy.
Other recent developments include:
- Issuance of shares to directors in December 2024
- Loan agreements with MitoCareX in December 2024 and March 2025
- Private placement financing in December 2024 and January 2025
- Debt settlement agreement with Plantify in November 2024
- Amended bylaws in November 2024
- Credit facility agreement with Pure Capital in October 2024
Results of Operations
Revenues and Cost of Revenues
Our total revenue consists of product sales, while our cost of revenues includes the cost of those products. In 2024, our revenues were $210,000, down 20% from $263,000 in 2023. Cost of sales increased 200% to $165,000 in 2024 from $55,000 in 2023. As a result, our gross profit decreased 78% to $45,000 in 2024 from $208,000 in 2023.
Operating Expenses
Our operating expenses consist of research and development, selling and marketing, and general and administrative expenses.
Research and development expenses decreased 81% to $369,000 in 2024 from $1,938,000 in 2023, mainly due to cost reduction measures and a shift in focus to commercialization.
Selling and marketing expenses decreased 13% to $238,000 in 2024 from $272,000 in 2023, primarily from reduced personnel costs.
General and administrative expenses decreased 33% to $3,758,000 in 2024 from $5,576,000 in 2023. This was driven by lower share-based compensation, salaries, insurance, and other costs.
Comparison of 2024 to 2023
Our total net loss decreased 26% to $5,347,000 in 2024 from $7,260,000 in 2023. This was mainly due to the reduction in operating expenses, partially offset by lower revenues and higher cost of sales.
The decrease in research and development, selling and marketing, and general and administrative expenses reflects our efforts to implement cost reduction measures and focus on commercializing our solutions. However, the decline in revenues and increase in cost of sales led to a significant drop in gross profit.
Liquidity and Capital Resources
As of December 31, 2024, we had $2,185,000 in cash and a working capital of $2,512,000, compared to $4,447,000 in cash and $4,687,000 in working capital at the end of 2023. The decrease was primarily due to cash used in operations and investing activities.
Our net cash used in operating activities was $3,419,000 in 2024 compared to $3,234,000 in 2023. The increase was mainly due to higher payments to cover liabilities and an increase in accounts receivable.
Net cash used in investing activities was $1,889,000 in 2024 compared to $1,519,000 in 2023, reflecting higher investments in renewable energy projects and loans to Solterra.
Financing activities provided $3,047,000 in 2024 compared to $3,473,000 in 2023, with the decrease primarily due to lower proceeds from equity financing.
Going Concern
We have incurred losses since inception and expect to continue incurring losses for the foreseeable future. As of December 31, 2024, we had an accumulated deficit of $34,553,000. This raises substantial doubt about our ability to continue as a going concern.
We believe our existing capital resources will be sufficient to support our operations through the beginning of Q4 2025. However, we will likely need to raise additional capital through debt, equity, or a combination to support our growth and strategic initiatives. There can be no assurance we will be successful in raising such capital on favorable terms, or at all.
If we are unable to obtain sufficient additional funding, we may be required to scale back our planned development, which could harm our business, financial condition, and results of operations. Our financial statements do not include any adjustments that may be required if we are unable to continue as a going concern.
