Filing summary
Entity clarification: The supplied filing is Save Foods, Inc.’s Form 10-K, not a filing identified as Nexentis Technologies Inc. The filing covers the fiscal year ended December 31, 2022, with 2021 comparisons; it does not provide separate fourth-quarter results.
Business context and reporting period
Save Foods develops food-acid-based treatments intended to improve food safety and extend fresh-produce shelf life while reducing spoilage and pesticide use. Its main commercial product line, SavePROTECT/PeroStar, is used with sanitizers and, in some applications, fungicides. The filing describes early commercialization, pilots, and sales concentrated in the United States, Mexico, Israel, and Turkey.
Financial performance and liquidity
| Metric | 2022 | 2021 |
|---|---|---|
| Revenue | $394,004 | $438,141 |
| Cost of sales | $158,313 | $135,943 |
| Gross profit | $235,691 | $302,198 |
| Gross margin | 59.8% | 69.0% |
| Research and development | $770,826 | $538,684 |
| Selling and marketing | $567,598 | $200,299 |
| General and administrative | $4,716,909 | $4,266,854 |
| Operating loss | $(5,819,642) | $(4,703,639) |
| Net loss attributable to shareholders | $(5,739,600) | $(4,820,580) |
| Loss per share, basic and diluted | $(1.64) | $(2.06) |
| Net cash used in operating activities | $(5,097,126) | $(4,113,307) |
Revenue fell 10%, which management attributed mainly to adverse weather and lower citrus production. Higher raw-material costs contributed to cost of sales rising 16% and gross margin declining. Operating expenses increased, particularly selling and marketing and R&D; the operating loss widened 24%, while comprehensive loss increased 19%. Loss per share narrowed as the weighted-average share count rose to 3,498,273 from 2,343,088.
At December 31, 2022, cash and cash equivalents were $5.70 million, working capital was $5.56 million, total assets were $6.49 million, total liabilities were $0.75 million, and shareholders’ equity was $5.74 million. Cash and restricted cash together were $5.75 million. The balance sheet showed no short-term bank loan at year-end; operating lease liabilities totaled $106,334. The company reported no income-tax expense.
Financing provided $4.09 million of net cash in 2022, primarily from the August public offering of 1.6 million shares at $3.00 each, producing $4.10 million in net proceeds. Shares outstanding increased from 2,806,536 at year-end 2021 to 4,614,726 at year-end 2022. The filing reports accumulated deficit of $22.84 million.
Material changes, outlook, and risks
- In December 2022, the board approved cost reductions, including staff cuts and a reduction in R&D, shifting emphasis toward commercialization and converting pilots into paying customers. Further headcount reductions were anticipated in 2023.
- Management stated that year-end cash was expected to fund current operations until at least December 2024, while cautioning that changing operating plans could require funding sooner. The company expects continuing losses and negative operating cash flows.
- Management reported more than 50 successful pilots during 2022 but said the sales cycle typically requires at least two seasons. It planned to prioritize high-value crops, follow up on existing pilots, and pursue commercial applications and local partnerships. This is an outlook, not a guarantee of sales.
- Commercial and product milestones include adoption by Mexican lime packers and Israeli customers, plus ongoing pilots in Peru. The filing says U.S. EPA registration for its SF3H/SF3HS sanitizers had not been submitted; the company had postponed GLP efficacy studies to focus on SavePROTECT/PeroStar. It expected SF3H/SF3HS commercialization no earlier than the end of 2025.
- Key risks include limited revenue and a history of losses, potential need for additional capital and dilution, lengthy pilots without assured orders, customer and market acceptance, regulatory approvals, competition, reliance on a limited supplier base, and international, climate, currency, and geopolitical exposure. The company also cited Nasdaq continued-listing requirements.
- The filing reports no pending material legal proceedings. It identifies a $155,765 contingent royalty obligation to the Israeli Innovation Authority, payable from qualifying future product sales, plus interest as specified in the agreement.
- The auditor gave an unqualified opinion on the consolidated financial statements. Management concluded disclosure controls and internal control over financial reporting were effective at year-end; the auditor did not attest to internal control.
Most important facts to verify
- Confirm the issuer: this filing is for Save Foods, Inc. (Nasdaq: SVFD), rather than Nexentis Technologies Inc.
- Review the audited financial statements and notes for cash runway assumptions, operating cash burn, lease commitments, and the IIA royalty terms.
- Track whether pilots convert into recurring paid orders, especially given the stated two-season sales cycle and low 2022 revenue.
- Check progress on planned cost reductions, staffing, R&D priorities, regulatory submissions, and product-registration timelines.
- Assess dilution and listing risk: year-end shares outstanding were 4,614,726, and the filing describes substantial equity-plan capacity and Nasdaq minimum-listing requirements.