Company: SVREW
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001013762-25-001028
Chunk: 73

Company: SaverOne 2014 Ltd.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 5
Chunk 73
---
1.6 million traffic accidents annually in the United
States alone, leading to the death of approximately 4,600 people and injuring an additional 391,000 people. Moreover, the Federal Motor
Carrier Safety Administration, or FMCSA, reported that 71% of commercially driven large-truck crashes occurred because of driver distraction.

We
have experienced net losses in every period since the inception of SaverOne. We have incurred losses in each year since our inception,
including net losses of approximately NIS 34.9 million (approximately $9.4 million) NIS 33.8 million (approximately $9.3 million) and
NIS 25 million (approximately $7.1 million) for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31,
2024, we had an accumulated deficit of NIS 170.5 million (approximately $46.1 million). We anticipate that we will continue to incur
significant losses for the foreseeable future as our operating expenses and capital expenditures increase substantially due to our continued
investment in our activities and as we hire additional employees over the coming years..

A.
Operating Results

Components
of Operating Results

Revenues
and Cost of Revenues

Our
total revenue consists of selling our SaverOne system and our cost of revenues consists of the direct cost of producing and installing
the system. Currently, our business activity is primarily in Israel while we are expanding our presence abroad through the engagement
of various international pilot programs. Since we are still in the initial phase in rolling out our Generation 2.0 SaverOne systems,
we cannot forecast our revenue in future periods.

Research
and Development Expenses, Net

We
have invested almost all of our efforts and financial resources in the research and development of our SaverOne system which is still
in development. Research and development related activities are currently our primary expenditure. Development timelines, the probability
of success and development costs can differ materially from expectations. In addition, we cannot forecast whether and when we will enter
into collaboration arrangements, if at all, and to what degree such arrangements would affect our development plans and capital requirements.

We
expect our research and development expenses to increase over the next several years as our development programs progress and we expect
that our research and development expenses will continue to be significant in absolute dollars in future periods as we continue to invest
in research and development activities related to the development of our solutions.

Research