Company: SATT
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001683168-25-006219
Chunk: 29

Company: SATIVUS TECH CORP.
Filing Date: 2025-08-15
Form: 10-Q
Item: Item 1
Chunk 29
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 working capital deficit of $3,499 thousand as of June 30, 2025. Our future
growth is dependent upon achieving further purchase orders and execution, management of operating expenses and ability of the Company
to obtain the necessary financing to fund future obligations, and upon profitable operations.

Historically, we have financed our cash flow and
operations from the initial contribution of our majority shareholder and by raising equity and convertible loans.

We had a negative working capital of $3,499 thousand
and $3,097 thousand as of June 30, 2025, and December 31, 2024, respectively.

During the six months ended June 30, 2025, we
had negative cash flow from operations of $86 thousand which was mainly the result of a net loss of $520 thousand, and financial gains
from revaluations of convertible component in convertible loans in the amount of $75 thousand off set by changes in assets and liabilities
of $344 thousand, depreciation of $80 thousand, and financial expenses related to convertible loans and warrants of $85 thousand. Cash
flow from operation activity in the six months ended June 30, 2024, was the result of a net loss of $2,801 thousand off set by financial
loss from revaluations of convertible component in convertible loans in the amount of $2,227 thousand, changes in assets and liabilities
of $89 thousand, depreciation of $39 thousand, Share based compensation expenses to employees and non employees of $15 thousand and financial
expenses related to convertible loans and warrants of $79 thousand.

 5 

During the six months ended June 30, 2025, we
had positive cash flow from investment of $157 thousand compared to a positive cash flow of $363 thousand. Cash flow from investment activity
in the six months ended June 30, 2025, was the result of a decrease in restricted cash of $5 thousand and increase in loan from related
party of $152. Cash flow from investment activity in the six months ended June 30, 2024, was the result of a decrease in deposits of $626
thousand offset by the purchase of property and equipment of $263 thousand.

During the six months ended June 30, 2025, we
had a positive cash flow from financing activities of $74 thousand compared to a negative cash flow from financing activities during the
six months ended June 30, 2024 of $9. Cash flow from financing activities in the