SaverOne 2014 Ltd. — FY2023 Form 20-F Summary
Reporting period: Fiscal year ended December 31, 2023. This is an annual report, not a standalone Q4 filing; the text does not provide separate fourth-quarter results. Financial statements are prepared under IFRS in NIS. Amounts below are in NIS thousands unless stated otherwise.
Business context
SaverOne develops transportation-safety technology using cellular-phone radio-frequency signals. Its driver-distraction prevention system (DDPS) is in early commercialization; its OEM DDPS and vulnerable-road-user detection (VRU) products remain in development. Management describes the company as early-stage, with limited revenue and continuing reliance on external capital.
Financial results and liquidity
| Metric | FY2023 | FY2022 |
|---|---|---|
| Revenue | 2,720 | 1,193 |
| Cost of revenue | (1,968) | (829) |
| Gross profit / gross margin | 752 / 27.6% | 364 / 30.5% |
| Research and development expense, net | (22,861) | (21,490) |
| Selling and marketing expense, net | (3,787) | (1,591) |
| General and administrative expense | (8,327) | (6,492) |
| Operating loss | (34,223) | (29,209) |
| Net finance income | 388 | 4,247 |
| Net loss | (33,835) | (24,962) |
| Net cash used in operating activities | (35,020) | (28,370) |
| Cash and cash equivalents at year-end | 17,112 | 19,240 |
Revenue was approximately $750,000 in FY2023, up 128% year over year, mainly reflecting new agreements and more installations. Gross profit increased, but gross margin declined. Net loss widened 36%, as operating expenses rose and finance income was substantially lower than in 2022. The company reported a NIS 135,610 accumulated deficit and negative operating cash flow.
At year-end, current assets were NIS 24,209 and current liabilities NIS 14,804, yielding working capital of NIS 9,405. Current promissory notes, net, were NIS 7,139; lease liabilities totaled NIS 1,332, and government-grant liabilities NIS 1,328. Management stated that available resources were expected to fund operations for the next 12 months, considering cash and unused equity-line capacity, while acknowledging that future financing and revenue are not assured.
Financing cash flow was NIS 22,490, down from NIS 41,972 in 2022, when the U.S. IPO contributed significant proceeds. FY2023 financing included equity-line proceeds, promissory-note proceeds and an approximately $1 million registered direct offering. The equity line with YA was increased from $10 million to $15 million in March 2024; subsequent share issuances and proceeds are reported after year-end.
Changes, outlook and notable risks
- R&D expense increased 6%; sales and marketing expense rose 138%, reflecting commercialization and international marketing efforts; G&A expense rose 28%, including public-company and insurance costs.
- Management expects continued losses and significant R&D spending, with selling, marketing and administrative costs expected to rise as commercialization expands. No quantified revenue or earnings guidance is provided.
- As of March 22, 2024, the company reported approximately 4,600 systems ordered and 3,200 installed, including pilot and commercial systems. These are post-year-end operational figures, not FY2023 revenue measures.
- The auditor issued an unqualified opinion on the IFRS financial statements but emphasized recurring operating losses and negative operating cash flow. Management concluded these conditions did not create substantial doubt about the company’s ability to continue as a going concern, based on its financing and operating plans.
- Disclosure controls and internal control over financial reporting were ineffective at December 31, 2023. A material weakness involved insufficient accounting personnel, segregation of duties, and IT, entity-level and transaction-level controls. Remediation was planned, but completion was not assured. The auditor did not attest to internal-control effectiveness.
- Key risks include the need for additional capital and potential dilution; uncertain conversion of pilots into sales; competition, supplier dependence and automotive regulatory requirements; product liability and cybersecurity risks; and currency exposure. The company reported no operational disruption from the Israel-Hamas war to date, but warned that escalation, reserve-duty call-ups and economic effects could harm operations and financing.
- IIA-supported technology is subject to restrictions on transferring know-how or manufacturing outside Israel and royalties of 3% of relevant sales, up to the grant amount. The company also disclosed three Israeli patent applications under third-party opposition.
Investor facts to verify
- Reconcile commercialization progress—orders, installations, pilots and customer conversions—with recognized revenue, collections and receivables; reported customer payment terms average 282 days.
- Assess cash runway, actual remaining YA equity-line availability, promissory-note repayment terms and the dilution and pricing effects of future advances.
- Track remediation and independent validation of the material weakness in financial reporting controls.
- Monitor gross margins, inventory growth, operating cash burn and whether commercialization revenues can offset rising expenses.
- Check progress, cost and timing for OEM and VRU development, including customer agreements, required certifications and the outcome of the Israeli patent oppositions.
- Consider potential PFIC status for U.S. tax purposes: the company said it may have been a PFIC in 2023 and may be one in later years; it does not intend to provide information needed for a QEF election.