Company: SATT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001683168-25-002119
Chunk: 71

Company: SATIVUS TECH CORP.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 71
---
 convertible loans.

Results of Operations during the year ended
December 31, 2023, as compared to the year ended December 31, 2022

Operating Expenses

Research and Development Expenses for the year
ended December 31, 2023, amounted to $253 thousand as compared to $673 for the year ended December 31, 2022. During 2023, Saffron Tech
reduced its research and development expenses in Israel due to financial constraints.

General and Administrative expenses for the year
ended December 31, 2023, amounted to $562 thousand as compared to $660 thousand for the year ended December 31, 2022. The decrease during
the year ended December 31, 2023, was mainly due the decrease in share-based expenses that amounted to $156 thousand, compared to $267
thousand for the year ended December 31, 2022.

Financing income for the year ended December 31,
2023, amounted to $228 thousand as compared financing expenses to $480 thousand for the year ended December 31, 2022. Financial expenses
and income are due mainly to financial gains or losses related to revaluations of convertible component in convertible loans.

Liquidity and Capital Resources

Overview

Since inception on January 16, 2015, the Company
had a cumulative deficit as of December 31, 2024, of $23,608 thousand and we have a working capital deficit of $3,098 thousand as of December
31, 2024. 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. Those factors raise substantial
doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the
Company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when
they become due.

Historically, we have financed our cash flow and
operations from the initial contribution of our majority shareholder and by raising equity, convertible loans and warrants. As of December
31, 2024, our cash and deposit balance was $96 thousand.

On March 1, 2023, Saffron Tech, announced it has
entered into an investment agreement with Korean-based company, Dreamtech Co Ltd (“Dreamtech”), a leading provider
and manufacturer of tech components for