# EDGAR Filing Document

**Accession Number:** 0001872964
**File Stem:** 0001213900-25-092320
**Filing Date:** 2025-9
**Character Count:** 60312
**Document Hash:** b903ad0b1819f3274517688dc26b0656
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-092320.hdr.sgml**: 20250926

**ACCESSION NUMBER**: 0001213900-25-092320

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 55

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250926

**DATE AS OF CHANGE**: 20250926

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Maris Tech Ltd.
- **CENTRAL INDEX KEY:** 0001872964
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMUNICATIONS EQUIPMENT, NEC [3669]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** L3
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41260
- **FILM NUMBER:** 251350384

**BUSINESS ADDRESS:**
- **STREET 1:** 2 YITZHAK MODAI STREET
- **CITY:** REHOVOT
- **STATE:** L3
- **ZIP:** 7608804
- **BUSINESS PHONE:** 0097236093609

**MAIL ADDRESS:**
- **STREET 1:** 2 YITZHAK MODAI STREET
- **CITY:** REHOVOT
- **STATE:** L3
- **ZIP:** 7608804

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549s**

**Form 6-K**

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of September 2025

Commission file number: 001-41260

**<u>Maris-Tech Ltd.</u>**

(Translation of registrant's name into English)

**2 Yitzhak Modai Street**

**<u>Rehovot, Israel 7608804</u>**

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**CONTENTS**

This Report of Foreign Private Issuer on Form 6-K (this "Report") consists of Maris-Tech Ltd.'s (the "Registrant"): (i) Unaudited Interim Financial Statements as of June 30, 2025, which is attached hereto as Exhibit 99.1; and (ii) Management's Discussion and Analysis of Financial Condition and Results of Operations for the six months ended June 30, 2025, which is attached hereto as Exhibit 99.2.

This Report, including its exhibits, is incorporated by reference into the Registrant's Registration Statements on Form S-8 (Registration No. [333-262910](https://www.sec.gov/Archives/edgar/data/1872964/000121390022008736/ea156027-s8_maristech.htm) and [333-274826](https://www.sec.gov/Archives/edgar/data/1872964/000101376223000499/ea185989-s8_maristech.htm)) and Registration Statement on Form F-3 (Registration No. [333-270330](https://www.sec.gov/Archives/edgar/data/1872964/000121390023018255/ea174784-f3_maristech.htm)), filed with the Securities and Exchange Commission, to be a part thereof from the date on which this Report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** |  |
| 99.1 | [Maris-Tech's Unaudited Interim Financial Statements as of June 30, 2025.](ea025830201ex99-1_maris.htm) |
| 99.2 | [Maris-Tech Ltd's Management's Discussion and Analysis of Financial Condition and Results of Operations for the Six Months Ended June 30, 2025.](ea025830201ex99-2_maris.htm) |
| 101.INS | Inline XBRL Instance Document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |

---

**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Maris-Tech Ltd.** | **Maris-Tech Ltd.** |
| Date: September 26, 2025 | By: | /s/ Nir Bussy |
|  |  | Nir Bussy |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**MARIS-TECH LTD.**

**INTERIM FINANCIAL STATEMENTS**

**AS OF JUNE 30, 2025**

**UNAUDITED**

**INDEX**

---

| | |
|:---|:---|
|  | **Page** |
| [**Condensed Consolidated Balance Sheets**](#f_001) | **1 – 2** |
| [**Condensed Consolidated Statements of Operations**](#f_002) | **3** |
| [**Condensed Consolidated Statements of Changes in Shareholders' Equity**](#f_003) | **4** |
| [**Condensed Consolidated Statements of Cash Flows**](#f_004) | **5 – 6** |
| [**Notes to Interim Condensed Consolidated Financial Statements**](#f_005) | **7** |

---

- - - - - - - - - - -

-i-

**MARIS-TECH LTD.**

**BALANCE SHEETS** 

**U.S. dollars**

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
|  | **Unaudited** | |
| &nbsp;&nbsp;&nbsp;ASSETS |  |  |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2769901 | $2294679 |
| &nbsp;&nbsp;&nbsp;Trade receivables, net | 1219514 | 3494701 |
| &nbsp;&nbsp;&nbsp;Other receivables and prepaid expenses | 262637 | 322449 |
| &nbsp;&nbsp;&nbsp;Inventories | 2735323 | 2609314 |
| <u>Total</u> current assets | 6987375 | 8721143 |
| NON-CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Restricted deposits | 44075 | 40553 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 360710 | 407430 |
| &nbsp;&nbsp;&nbsp;Severance pay fund | 200809 | 175463 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 393830 | 475515 |
| <u>Total</u> non-current assets | 999424 | 1098961 |
| <u>Total</u> assets | $7986799 | $9820104 |

---

The accompanying notes are an integral part of the interim financial statements.

**MARIS-TECH LTD.**

**BALANCE SHEETS** 

**U.S. dollars, except share and per share data**

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
|  | **Unaudited** | |
| &nbsp;&nbsp;&nbsp;LIABILITIES AND SHAREHOLDERS EQUITY |  |  |
| CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Short-term bank credit line | $2000000 | $9345 |
| &nbsp;&nbsp;&nbsp;Trade payables | 460183 | 1156567 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 953004 | 1532493 |
| &nbsp;&nbsp;&nbsp;Current liabilities from related parties | 375972 | 552213 |
| <u>Total</u> current liabilities | 3789159 | 3250618 |
| NON-CURRENT LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Long-term loans from related parties | - | 45343 |
| &nbsp;&nbsp;&nbsp;Non-current operating lease liabilities | 210218 | 268800 |
| &nbsp;&nbsp;&nbsp;Accrued severance pay | 476203 | 440295 |
| <u>Total</u> long-term liabilities | 686421 | 754438 |
| <u>Total</u> liabilities | 4475580 | 4005056 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| SHAREHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary shares, no par value per share: Authorized:100,000,000 at June 30, 2025 and December 31, 2024; Issued: 8,167,438 shares at June 30, 2025 and 8,104,180 at December 31, 2024; Outstanding: 8,046,723 at June 30, 2025 and 7,983,465 at December 31, 2024 | - | - |
| &nbsp;&nbsp;&nbsp;Treasury shares at cost (120,715 ordinary shares at June 30, 2025 and December 31, 2024) | (119536) | (119536) |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 18155064 | 18070599 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (14524309) | (12136015) |
| <u>Total</u> shareholders' equity | 3511219 | 5815048 |
| <u>Total</u> liabilities and shareholders' equity | $7986799 | $9820104 |

---

The accompanying notes are an integral part of the interim financial statements.

**MARIS-TECH LTD.**

**STATEMENTS OF OPERATIONS**

**U.S. dollars**

---

| | | |
|:---|:---|:---|
|  | **Six months ended**<br> **June 30,** | **Six months ended**<br> **June 30,** |
|  | **2025** | **2024** |
|  | **Unaudited** | **Unaudited** |
| Revenues | $707021 | $3410258 |
| Cost of revenues | 706037 | 1476693 |
| Gross profit | 984 | 1933565 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Research and development, net | 737092 | 348902 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 551870 | 415627 |
| &nbsp;&nbsp;&nbsp;General and administrative | 992234 | 1120695 |
| <u>Total</u> operating expenses | 2281196 | 1885224 |
| Profit (loss) from operations | (2280212) | 48341 |
| Financial income (expenses), net | (108082) | 83456 |
| Net income (loss) | $(2388294) | $131797 |
| Basic earnings (loss) per ordinary share | $(0.30) | $0.02 |
| Diluted earnings (loss) per ordinary share | $(0.30) | $0.02 |
| Weighted-average shares used to compute net income (loss) per share: |  |  |
| Basic | 7999615 | 7878501 |
| Diluted | 7999615 | 7946324 |

---

The accompanying notes are an integral part of the interim financial statements.

**MARIS-TECH LTD.**

**STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)**

**U.S. dollars, except share and per share data**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of shares issued** | **Treasury shares** | **Share**<br> **capital** | **Additional paid in**<br> **capital** | **Accumulated deficit** | **Total** |
| Balance as of January 1, 2025 | 7983465 | $(119536) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $18070599 | $(12136015) | $5815048 |
| Share-based compensation |  |  | - | 81963 |  | 81963 |
| Exercise of warrants | 61258 |  | - | 530 |  | 530 |
| Exercise of options | 2000 |  | - | 1972 |  | 1972 |
| Net loss | - | - | - |  | $(2388294) | $(2388294) |
| Balance as of June 30, 2025 | 8046723 | $(119536) | $- | $18155064 | $(14524309) | $3511219 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of shares issued** | **Treasury shares** | **Share**<br> **capital** | **Additional paid in**<br> **capital** | **Accumulated deficit** | **Total** |
| Balance as of January 1, 2024 | 7878501 | $(119536) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $17916149 | $(10902123) | $6894490 |
| Share-based compensation |  |  | - | 74779 |  | 74779 |
| Net income | - | - | - | - | 131797 | 131797 |
| Balance as of June 30, 2024 | 7878501 | $(119536) | $- | $17990928 | $(10770326) | $7101066 |

---

---

| | |
|:---|:---|
| \*) | Less than $1. |

---

The accompanying notes are an integral part of the interim financial statements.

**MARIS-TECH LTD.**

**STATEMENTS OF CASH FLOWS**

**U.S. dollars**

---

| | | |
|:---|:---|:---|
|  | **Six months ended**<br> **June 30,** | **Six months ended**<br> **June 30,** |
|  | **2025** | **2024** |
|  | **Unaudited** | **Unaudited** |
| <u>Cash flows from operating activities:</u> |  |  |
| Net income (loss) | $(2388294) | $131797 |
| Adjustments required to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation | 57533 | 38162 |
| &nbsp;&nbsp;&nbsp;Financial expense (income) | 11233 | (19701) |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 81963 | 74779 |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in trade receivables, net | 2275187 | (768249) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in other receivables and prepaid expenses | 59812 | (20120) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in inventories | (126009) | 83927 |
| &nbsp;&nbsp;&nbsp;Decrease in trade payables | (696384) | (303687) |
| &nbsp;&nbsp;&nbsp;Decrease in other current liabilities | (601054) | (159056) |
| &nbsp;&nbsp;&nbsp;Increase (decrease) in accrued severance pay | 35908 | (42944) |
| Net cash used in operating activities | (1290105) | (985092) |
| <u>Cash flows from investing activities:</u> |  |  |
| Proceeds from short-term deposits | - | 125959 |
| Proceeds from exercise of warrants and options | 2502 | - |
| Purchase of property, plant and equipment | (10813) | (174571) |
| Net cash used in investing activities | (8311) | (48612) |
| <u>Cash flows from financing activities:</u> |  |  |
| Proceeds from short-term bank credit line, net | 1990655 | - |
| Repayment of loan from related party | (213495) | (192720) |
| Net cash provided by (used in) financing activities | 1777160 | (192720) |
| Increase (Decrease) in cash, cash equivalents and restricted deposit | 478744 | (1226424) |
| Cash, cash equivalents and restricted deposit at the beginning of the year | 2335232 | 2083186 |
| Cash, cash equivalents and restricted deposits at the end of the period | $2813976 | $856762 |

---

The accompanying notes are an integral part of the interim financial statements.

**MARIS-TECH LTD.**

**STATEMENTS OF CASH FLOWS**

**U.S. dollars**

---

| | | |
|:---|:---|:---|
|  | **Six months ended**<br> **June 30,** | **Six months ended**<br> **June 30,** |
|  | **2025** | **2024** |
|  | **Unaudited** | **Unaudited** |
| <u>Supplemental disclosure of non-cash investing and financing activities:</u> |  |  |
| Right-of-use assets obtained in the exchange for operating lease liabilities | - | $68967 |
| <u>Supplementary disclosure on cash flows:</u> |  |  |
| Interest received | $11924 | $202688 |
| Interest paid | $30011 | $195 |

---

The following table provides a summary of cash, cash equivalents and restricted cash that constitute the total amounts shown in the statements of cash flows:

---

| | | |
|:---|:---|:---|
|  | **Six months ended** | **Six months ended** |
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Cash and cash equivalents | $2769901 | $817610 |
| Non-current restricted deposit | 44075 | 39152 |
| Cash, cash equivalents and restricted deposit | $2813976 | $856762 |

---

The accompanying notes are an integral part of the interim financial statements.

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 1:- GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a*.* Introduction:

Maris-Tech Ltd. (the "Company") was incorporated in 2008, in Israel. The Company develops, designs, manufactures and markets high-end digital video and audio products and solutions, including artificial intelligence functionality, for the professional as well as the civilian and home security markets, defense and homeland security markets, which can be sold off the shelf or fully customized to meet customers' requirements.

On February 4, 2022, the Company closed an initial public offering ("IPO"). The ordinary shares, no par value per share (the "Ordinary Shares") and the warrants to purchase ordinary shares, issued as part of the IPO, were approved for listing on the Nasdaq Capital Market ("Nasdaq") and commenced trading under the symbol "MTEK" and "MTEKW," respectively, on February 2, 2022.

The Company operates in Israel and sells to customers in other countries, including the United States, Australia, United Kingdom, India and Switzerland.

During October 2024, the Company formed a wholly-owned subsidiary, Maris North America Inc. ("Maris North America"), under the laws of Delaware. As of June 30, 2025, and the date of the issuance of these financial statements, the subsidiary has not commenced its operations and has no material assets or liabilities. Accordingly, no revenues, expenses, assets or liabilities of Maris North America have been included in the consolidated financial statements as of June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. These financial statements have been prepared in a condensed format as of June 30, 2025 and for the six
months then ended ("interim financial statements"). These financial statements should be read in conjunction with the Company's
audited annual financial statements as of December 31, 2024 and for the year then ended and accompanying notes ("annual financial
statements").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Liquidity and capital resources:

The Company has experienced negative cash flows from operations since its inception and has relied on its ability to fund its operations primarily through proceeds from sales of Ordinary Shares, warrants, bank loans and loans from related parties. As of June 30, 2025 and December 31, 2024, the Company had cash and cash equivalents of $2,769,901 and $2,294,679, respectively, an accumulated deficit of $14,524,309 and $12,136,015, respectively, and negative cash flow from operating activity of $1,290,105 and $985,092 for the six months ended June 30, 2025 and 2024, respectively.

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 1:- GENERAL (Cont.)**

The Company expects to continue to incur negative cash flows from operating activities for the foreseeable future. The Company's ability to continue to operate is dependent upon its success in commercializing its product candidates and raising additional funds to finance its activities. If the Company is unable to do so, it may be required to delay, reduce, or eliminate certain planned research and development programs. There is no assurance, however, that the Company will be successful in obtaining an adequate level of financing needed to continue to fund its operations for the long-term. Based on the Company's current financial position, the Company believes that there is substantial doubt about its ability to fund its operations and satisfy its obligations for the next twelve months without obtaining additional financing, which raises substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments with respect to the carrying amounts of assets and liabilities and their classification that might be necessary should the Company be unable to continue as a going concern.

**NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Basis of preparation of the interim financial statements:

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting, and include the accounts of Maris-Tech Ltd.

The balance sheet as of December 31, 2024, was derived from the audited financial statements as of that date, but does not include all of the disclosures, including certain notes required by U.S. GAAP on an annual reporting basis. Therefore, these unaudited financial statements should be read in conjunction with the audited financial statements and the related notes thereto as of and for the year ended December 31, 2024, included in the Company's Annual Report on Form 20-F for the year ended December 31, 2024 filed with the SEC on March 28, 2025.

In management's opinion, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company's balance sheets as of June 30, 2025, the Company's results of operations, shareholders' equity and cash flows for the six months ended June 30, 2025 and 2024. The results for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year ending December 31, 2025 or any other future interim or annual period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Significant accounting policies:

The Company's significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, in the Company's Annual Report on Form 20-F for the year ended December 31, 2024. There have been no significant changes to these policies during the six months ended June 30, 2025.

 ****

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Functional currency:

A majority of the Company's customer orders are indexed to United States dollars ("dollar" or "U.S. dollars"). In addition, a substantial portion of the Company's purchase orders are indexed to the dollar. The Company's management believes that the dollar is the primary currency of the economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are re-measured into dollars in accordance with Accounting Standards Codification (ASC) No. 830 "Foreign Currency Matters". All transaction gains and losses from the re-measured monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Use of estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the allocation of transaction price among various performance obligations, the estimated benefit period of deferred contract acquisition costs, the allowance for credit losses, the useful lives of property and equipment, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets and uncertain tax positions. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Fair value of financial instruments:

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 - Unobservable inputs that are supported by little or no market activity.

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

The Company, in estimating fair value for financial instruments, determined that the carrying amounts of cash and cash equivalents, trade receivables, restricted deposits including deposits for employee benefits, trade payables and short-term bank credit line are equivalent to, or approximate their fair value due to the short-term maturity of these instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Recently issued accounting pronouncements not yet adopted:

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. For the Company, ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-09.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This amendment introduces a practical expedient for the application of the current expected credit loss ("CECL") model to current accounts receivable and contract assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the timing of adoption and impact of this amendment on its consolidated financial statements and related disclosures.

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 3 – REVENUES**

**Disaggregation of revenue**

The following table disaggregates the Company's revenues based on the nature and characteristics of its contracts, for the six months ended June 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Six months ended** | **Six months ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| Sales of products | $707021 | $3200126 |
| Services and Non-recurring engineering and proof of concept contracts | - | 210132 |
|  | $707021 | $3410258 |

---

The following table summarizes revenue by region based on the shipping address of customers:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended** | **Six months ended** | **Six months ended** | **Six months ended** |
|  | **June 30,<br> 2025** | **Percentage of <br> revenues** | **June 30,<br> 2024** | **Percentage of <br> revenues** |
| Israel | 491432 | 69.5% | 3300771 | 96.8% |
| England | 195589 | 27.7% | 85832 | 2.5% |
| United States | - | - | 3595 | 0.1% |
| Rest of World | 20000 | 2.8% | 20060 | 0.6% |
|  | 707021 | 100% | $3410258 | 100% |

---

**NOTE 4:- INVENTORY**

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br> **2025** | **December 31,<br> 2024** |
| Raw materials | $1183148 | $1175792 |
| In process and finished products | 1552175 | 1433522 |
|  | $2735323 | $2609314 |

---

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 5:- LEASES** 

The Company is a party to three lease agreements for its facilities in Israel which expire in October 2027. In addition, the Company also leases a vehicle under an operating lease agreement, which expires in 2027.

Aggregate lease payments for the right of use assets over the remaining lease period as of June 30, 2025 are as follows:

---

| | |
|:---|:---|
| Remaining of 2025 | $90961 |
| 2026 | 181923 |
| 2027 | 136576 |
| Total undiscounted cash flows | $409460 |
| Less - imputed interest | 21370 |
| Present value of operating lease liabilities | $388090 |

---

The weighted-average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2025:

---

| | |
|:---|:---|
| Weighted-average remaining lease term (years) | 2.28 |
| Weighted-average discount rate | 5.25% |

---

**NOTE 6:- COMMITMENTS AND CONTINGENCIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Liens:

The Company's long-term restricted deposits in the amounts of $44,075 have been pledged as security in respect of guarantees granted to the Company's landlords as part of the office lease agreement. Such deposit cannot be pledged to others or withdrawn without the consent of the lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Credit Line:

On March 26, 2025, the Company entered into a $4,000,000 credit line agreement (the "Credit Facility") with United Mizrahi-Tefahot Bank Ltd. (the "Bank"), on accepted commercial terms for similarly-sized companies. Loans from the credit line will have a maturity date of up to three months. For loans with a maturity date exceeding one month (up to three months), the interest will be paid on a monthly basis. For loans with a shorter maturity date, the interest will be paid on the maturity date. The Credit Facility will be in force for a period of 12 months from the date of the agreement. The Credit Facility is secured by all of the assets of the Company. In addition, the Credit Facility includes certain customary information rights in favor of the Bank, restrictive covenants of the Company and of Maris North America Inc., the Company's U.S. subsidiary, and the agreement by two shareholders of the Company to certain subordination restrictions with respect to loans they have provided to the Company.

As of June 30, 2025, the Company drew $2,000,000 from the credit line and was in compliance with all restrictive covenants. For the six months ended June 30, 2025, the Company recorded financial expenses of $30,011 related to the Credit Facility.

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 7:- NET LOSS PER SHARE**

The following table presents the computation of basic and diluted net loss per share:

---

| | | |
|:---|:---|:---|
|  | **Six months ended<br> June 30,** | **Six months ended<br> June 30,** |
|  | **2025** | **2024** |
| **Basic net earnings (loss) per ordinary share:** |  |  |
| Numerator: |  |  |
| Allocation of undistributed earnings | $(2388294) | $131797 |
| Denominator: |  |  |
| Weighted average number of shares | 7999615 | 7878501 |
| Basic earnings (loss) per ordinary share | $(0.3) | $0.02 |
| **Diluted net earnings (loss) per ordinary share:** |  |  |
| Numerator: |  |  |
| Allocation of undistributed earnings | $(2388294) | $131797 |
| Denominator: |  |  |
| Number of shares used in basic calculation | 7999615 | 7878501 |
| Effect of dilutive securities: |  |  |
| Weighted average effect of dilutive securities | - | 67823 |
| Denominator for diluted earnings per ordinary share | 7999615 | 7946324 |
| Diluted earnings (loss) per ordinary share | $(0.30) | $0.02 |

---

The total weighted average number of shares related to outstanding options that have been excluded from the computation of diluted net loss per Ordinary Share due to their antidilutive effect was 6,215,425 for the six months ended June 30, 2025.

**NOTE 8:- EQUITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Share capital:

As of June 30, 2025, the Company's share capital was composed of 8,167,438 Ordinary Shares issued and 8,046,723 ordinary shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Treasury shares:

As of June 30, 2025, the Company held 120,715 Ordinary Shares in treasury.

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 9:- SHARE BASED COMPENSATION**

Share-based compensation was recorded in the following items within the statements of operation:

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,**<br> **2025** | **Six months ended June 30,**<br> **2024** |
| Cost of revenues | $13055 | $12201 |
| Research and development, net | 20813 | 19082 |
| Sales and marketing | 11207 | 8563 |
| General and administrative | 36888 | 34933 |
| Total expenses | $81963 | $74779 |

---

A summary of the share option activity for the six months ended June 30, 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of options** | <br>**Weighted average exercise**<br> **price** | **Weighted-<br> average<br> remaining<br> contractual<br> term<br> (in years)** | <br>**Aggregate<br> intrinsic<br> value** |
| Options outstanding as of December 31, 2024 | 694952 | $1.05 | 3.45 | $2772758 |
| Granted | 25612 | 3.68 | 4.54 |  |
| Exercise | 2000 | 1 |  |  |
| Forfeited | 18112 | 1.32 |  |  |
| Options outstanding as of June 30, 2025 | 700452 | $1.137 | 3.026 | $1318951 |
| Options exercisable as of June 30, 2025 | 171382 | $1 | 2.042 | $346192 |

---

**MARIS-TECH LTD.**

**NOTES TO INTERIM FINANCIAL STATEMENTS (UNAUDITED)**

**U.S. dollars**

**NOTE 9:- SHARE BASED COMPENSATION (Cont.)**

As of June 30, 2025, unrecognized share-based compensation cost related to unvested share-based compensation awards was $367,903, which is expected to be recognized over a weighted-average period of 2.37 years.

The Company used the Black Scholes option-pricing model to determine the fair value of options granted during 2025. The following assumptions were applied in determining the options' fair value on their grant date:

---

| | |
|:---|:---|
|  | **2025** |
| Risk-free interest rate (a) | 3.88% |
| Expected option term (years) (b) | 3.88 |
| Expected share price volatility (c) | 56.1 |
| Dividend yield (d) | - |
| Weighted average grant date fair value | $1.705 |

---

**NOTE 10:- RELATED PARTY TRANSACTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Since the Company's inception, Israel Bar, the Company's Chief Executive Officer, director
and largest shareholder, and Joseph Gottlieb, a
then director of the Company and the Company's second largest shareholder, have provided loans to the Company in an aggregate amount
of NIS 7,513,887 (approximately $2,282,364). On May 9, 2021, the Company entered into a loan facility agreement (as amended on June 30,
2021, the "Loan Facility Agreement"), effective as of January 1, 2021, with Mr. Bar and Mr. Gottlieb. The total outstanding
amount under the Loan Facility Agreement after giving effect to the Amendment was NIS 3,480,306 (approximately $1,088,250). Mr. Gottlieb
passed away in April 2025. As of June 30, 2025, the outstanding balance due under the Loan Facility Agreement was $375,972.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. On March 3, 2021, the Company entered into a service agreement with a relative of the Company's Chief Executive Officer and director (the "Service Provider"), pursuant to which the Service Provider provides the Company with mechanical design services as requested by the Company in exchange for hourly compensation of NIS 195 (approximately $54). Effective February 2022, the hourly rate under the agreement was increased to NIS 350 (approximately $97). The amended terms of the Service Provider's agreement were approved by the audit committee of the board of directors of the Company and the board of directors of the Company on March 14, 2024 and March 20, 2024, respectively, and were ratified by the Company's shareholders at the Company's 2024 annual general meeting of shareholders held on May 15, 2024. As of June 30, 2025, the Company recorded expenses of $52,515 related to the service agreement with the Service Provider.

**NOTE 11:- SEGMENTS**

The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the CODM, who is the Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company's CODM evaluates the Company's financial information and resources and assesses the performance of these resources on a consolidated basis. There is no expense or asset information, that are supplemental to those disclosed in these financial statements, that are regularly provided to the CODM. The allocation of resources and assessment of performance of the operating segment is based on net loss as shown in the statements of operations. The CODM considers net loss in the annual forecasting process and reviews actual results when making decisions about allocating resources. Since the Company operates as one operating segment, financial segment information, including profit or loss and asset information, can be found in the financial statements

- - - - - - - - - -

## Exhibit 99.2

**Exhibit 99.2**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF<br> FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**For the Six Months Ended June 30, 2025**

**Cautionary Note Regarding Forward-Looking Statements**

Certain information included herein may be deemed to be "forward-looking statements". Forward-looking statements are often characterized by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "estimate," "continue," "believe," "should," "intend," "project" or other similar words, but are not the only way these statements are identified.

These forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, statements that contain projections of results of operations or of financial condition, expected capital needs, and expenses, statements relating to the research, development, completion and use of our products, and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future.

Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. We have based these forward-looking statements on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate.

Important factors that could cause actual results, developments, and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things:

● our ability to raise capital through the issuance of additional securities;

● our ability to obtain loans and credit lines from banks;

● our planned level of revenues and capital expenditures;

● our belief that our financial position as of June 30, 2025 raises substantial doubt about our ability to fund our operations and satisfy our obligations for the next twelve months without obtaining additional funding;

● our ability to market and sell our products;

● our plans to continue to invest in research and development to develop technology for both existing and new products;

● our plans to collaborate, or statements regarding the ongoing collaborations, with partner companies;

● our ability to maintain our relationships with suppliers, manufacturers, and other partners;

● our ability to maintain or protect the validity of our intellectual property;

● our ability to retain key executive members;

● our ability to internally develop and protect new inventions and intellectual property;

● our ability to expose and educate the industry about the use of our products;

● our expectations regarding our tax classifications;

● how long we will qualify as an emerging growth company or a foreign private issuer;

● interpretations of current laws and the passages of future laws; and

● general market, political and economic conditions in the countries in which we operate including those related to recent unrest and actual or potential armed conflict in Israel and other parts of the Middle East, such as the multi-front war Israel is facing.

The foregoing list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting our company, reference is made to our Annual Report on Form 20-F for the year ended December 31, 2024, or our Annual Report, which is on file with the Securities and Exchange Commission, or the SEC, and the other risk factors discussed from time to time by our company in reports filed or furnished to the SEC.

Except as otherwise required by law, we undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

**General**

 

***Introduction***

Unless indicated otherwise by the context, all references in this report to *"Maris-Tech", "Maris",* the *"Company", "we", "us" or "our"* are to Maris-Tech Ltd. When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below:

● "*dollars" or "$"* means United States dollars; and

● "*NIS* "**  means New Israeli Shekels.

*You should read the following discussion and analysis in conjunction with our unaudited financial statements for the six months ended June 30, 2025 and notes thereto, and together with our audited financial statements for the year ended December 31, 2024 and notes thereto filed with the SEC as part of our Annual Report.*

***Overview***

 ****

We are a business-to-business approach, or B2B, provider of video and artificial intelligence, or AI, based edge computing technology, pioneering intelligent video transmission solutions that conquer complex video processing challenges. Our miniature, lightweight, and low-power products deliver high-performance capabilities including raw data processing, seamless transfer, advanced image processing, and AI-driven analytics. Founded by Israeli technology-sector veterans, we serve leading manufacturers worldwide in defense, aerospace, intelligence gathering, homeland security, or HLS, unmanned vehicles and drones, smart city and communication industries as well as governmental agencies and defense-end customers.

 

*For the professional markets*, we provide a range of customizable, low-power, miniature solutions that feature enriched video and audio hardware with integrated embedded firmware. We offer original equipment manufacturer, or OEM, as well as final products and systems for applications requiring complex and high- performance video and audio processing, streaming, recording, debriefing and analytics functionalities. Our products are mainly designed for unmanned aerial/ground/maritime platforms, miniature drones, observation systems and any other remote video-controlled platforms used for intelligence, surveillance, analysis and investigation. Our products, which are further described below, are already deployed worldwide in unmanned platforms, observation systems, situational awareness, law-enforcement, public-safety, defense, intelligence and other appliances. Our customers include leading electro optical payload, radio frequency, or RF, datalink and unmanned platforms manufacturers as well as other large defense, HLS and communication companies.

 

*For the civilian/home security market*, we provide both off the shelf and customizable miniature, low power, cloud-based video and audio streaming and recording solutions used for home security, autonomous vehicle and various other applications.

***Recent Developments***

In April 2025, we entered into a distribution agreement with Thrikasa Technologies, a veteran Indian supplier of computing solutions for rugged environments, to strengthen our presence in the Indian defense market. Headquartered in Hyderabad. Pursuant to the distribution agreement, Thrikasa will serve as a key distributor for our video and AI-based edge computing technologies in India. The collaboration includes joint marketing efforts, exhibition participation, and coordinated sales initiatives aimed at delivering localized support to customers in the region.

In April 2025, we successfully completed a pilot manufacturing project at a U.S.-based facility in Michigan, marking a key step in our strategic expansion into the American defense market. The pilot involved the assembly of one of our core products, which passed all quality assurance evaluations in line with our rigorous internal standards. This milestone builds on prior U.S. initiatives, including the establishment of a North American subsidiary, the hiring of U.S.-based marketing personnel, and our active participation in leading American defense exhibitions. By launching localized production that aligns with U.S. manufacturing benchmarks, we aim to better serve our growing base of American partners and customers with advanced, AI-powered edge computing solutions.

On April 5, 2025, we announced the passing of Joseph Gottlieb, a member of our Board of Directors. In light of his passing, the size of the Board decreased from five directors to four.

In May 2025, we entered into a distribution agreement with Armit Sp. z o.o., or Armit, a leading Polish defense solutions provider, to expand our reach across Europe and strengthen our presence in the Polish defense market. Headquartered in Warsaw, Armit specializes in defense system integration, communications infrastructure, and electronic components, and is a trusted partner of Poland's armed forces and security agencies. Under the agreement, Armit will distribute our suite of ruggedized video processing and AI-based edge computing platforms, including solutions designed for armored vehicles, drones, naval systems, and mobile tactical units. This collaboration supports our broader European expansion strategy, focused on delivering real-time video intelligence and situational awareness capabilities to key defense customers throughout the region.

In June 2025, we unveiled Peridot, a new AI-powered passive observation system designed to deliver comprehensive situational awareness for defense and security operations. The first prototype of Peridot has been completed, marking a significant milestone in the advancement of our edge computing and video intelligence capabilities. Peridot integrates multiple high-definition day and thermal video sensors with advanced stitching algorithms to produce a seamless panoramic view—both horizontally and vertically. The system is engineered to enable early detection of evolving threats, including drones and unmanned vehicles, making it well-suited for border protection and strategic site surveillance. Designed as a fully integrated, standalone solution, Peridot can operate as both a detection platform and a trigger system for passive or active threat-neutralization mechanisms, supporting multi-layered defense strategies.

In June 2025, we received a $100,000 purchase order for a new AI-powered surveillance solution designed for the defense industry. The innovative system will be based on our Jupiter-AI edge platform and will support real-time threat detection and monitoring capabilities within an advanced military surveillance environment. This order marks our entry into a new defense market segment, expanding the application of our edge computing and video intelligence technologies. We expect to deliver this order by the end of 2025.

In July 2025, we entered into a distribution agreement with Precision Technologies Pte Ltd., or Precision Technologies, a leading Singapore-based provider of defense and security solutions, to expand our presence across the Asia-Pacific region. Under the agreement, Precision Technologies will distribute our full suite of AI-powered video and edge computing platforms to customers in defense, homeland security, aerospace, and commercial sectors throughout Singapore.

In July 2025, we received a $144,000 order from a customer in the defense industry for the design and development of a ruggedized AI platform. The new product will be based on our Jupiter-AI miniature edge computing solution and is expected to support both day and thermal video sensors in tactical environments requiring high durability and low power consumption. We expect to deliver this order by the end of 2025.

In August 2025, we entered into a Product Supply Agreement with U.S.-based One Stop Systems, Inc. (Nasdaq: OSS), or OSS, a leader in rugged enterprise class compute for AI, machine learning, autonomy, and sensor processing at the edge. Under the agreement, OSS will promote, support and fulfill our portfolio of video and AI-based edge computing solutions to defense sector customers in the United States.

**Comparison of the Period Ended June 30, 2025 and 2024**

***Results of Operations***

 ****

The following table summarizes our results of operations for the periods presented.

---

| | | |
|:---|:---|:---|
| | **Period Ended June 30,** | **Period Ended June 30,** |
| <br>**U.S. dollars** | **2025** | **2024** |
| Revenues | $707021 | $3410258 |
| Cost of revenues | $706037 | $1476693 |
| Gross profit | $984 | $1933565 |
| Research and development expenses, net | $737092 | $348902 |
| Sales and marketing | $551870 | $415627 |
| General and administrative | $992234 | $1120695 |
| Profit (loss) from operations | $(2280212) | $48341 |
| Financial income (expenses), net | $(108082) | $83456 |
| Net Income (loss) | $(2388294) | $131797 |

---

 ****

*Revenues*

Our revenues for the period ended June 30, 2025 were $707,021, representing a decrease of $2,703,237, or 79%, compared to $3,410,258 for the period ended June 30, 2024. The decrease is primarily attributable to delays in military and government procurement processes, as well as the challenge of entering the U.S. market.

.

*Cost of Revenues*

 ****

Our cost of revenues for the period ended June 30, 2025 was $706,037 representing a decrease of $770,656 or 52%, compared to $1,476,693 for the period ended June 30, 2024. The decrease was primarily attributable to a decrease in total revenue during the period .

*Gross Profit* 

 ****

Our gross profit for the period ended June 30, 2025 was $984, compared to a profit of $1,933,565 for the period ended June 30, 2024. The decrease in our gross profit was primarily due to a decrease in revenues and variable expenses, while fixed costs have remained unchanged

 

*Research and Development Expenses*, net.

 ****

Our research and development expenses, net for the period ended June 30, 2025 were $737,092, representing an increase of $388,190, or 111%, compared to $348,902 for the period ended June 30, 2024. The increase was primarily attributable to an increase in salary expenses due to a decrease in government grants that supported salary expenses.

*Sales and Marketing Expenses*

 ****

Our sales and marketing expenses were $551,870 for the period ended June 30, 2025, an increase of $136,243, or 33%, compared to $415,627 for the period ended June 30, 2024. The increase/ was primarily attributable to increase in salary expenses.

 ****

*General and Administrative Expenses*

 ****

Our general and administrative expenses were $992,234 for the period ended June 30, 2025, a decrease of $128,461, or 11%, compared to $1,120,695 for the period ended June 30, 2024. The decrease was primarily attributable to a decrease in salary expenses and professional services.

*Operating Profit (Loss)*

As a result of the foregoing, our operating loss for the period ended June 30, 2025 was $2,280,212, compared to an operating profit of $48,341 for the period ended June 30, 2024.

*Financial Expense and Income*

Financial expense and income consist of bank fees and other transactional costs, exchange rate differences and interest on our bank deposits and loans.

We recognized net financial expenses of $108,082 for the period ended June 30, 2025, compared to net financial income of $83,456 for the period ended June 30, 2024. The change was primarily due to exchange rate fluctuations and interest expenses on our bank loans.

*Net Income (Loss)*

 ****

As a result of the foregoing, our net loss for the period ended June 30, 2025 was $2,388,294, compared to net profit of $131,797 for the period ended June 30, 2024.

***Liquidity and Capital Resources***

*Overview*

 

Since our inception we have experienced negative cash flows from operations and have funded our operations principally from bank loans, issuance of ordinary shares, no par value per share, or Ordinary Shares, preferred shares, warrants, credit lines and long-term loans from banks and shareholders.

Our backlog as of June 30, 2025 and September 26, 2025 was approximately $9.55 million and $9.74 million, respectively, part of which is expected to be delivered and be recognized as revenues by the end of 2027. We define backlog as the accumulation of all pending orders with a later fulfillment date for which revenue has not been recognized and we consider valid. The backlog consists of executed purchase orders from new customers and existing customers with which we have had long-standing relationships and from governmental agencies. However, because revenue will not be recognized until we have fulfilled our obligations to a customer, there may be a significant amount of time between executing an agreement or purchase order with a customer and delivery of the product to the customer and revenue recognition. In addition, backlog is not necessarily indicative of future earnings (see "Item 3.D. Risk Factors - Risks Related to Our Business, Industry, Operations and Financial Condition – Amounts included in backlog may not result in actual revenue and are an uncertain indicator of our future earnings" in our Annual Report).

As of June 30, 2025 and December 31, 2024, we had cash and cash equivalents of $2,769,901 and $2,294,679, respectively, an accumulated deficit of $14,524,309 and $12,136,015, respectively, and negative cash flow from operating activity of $1,290,095 and $859,133 for the six months ended June 30, 2025 and 2024, respectively. We have incurred recurring losses and negative cash flows from operations since inception. Our ability to continue to operate is dependent upon our success in commercializing our product candidates and raising additional funds to finance our activities. If we are unable to do so, we may be required to delay, reduce, or eliminate certain planned research and development programs. There is no assurance, however, that we will be successful in obtaining an adequate level of financing needed to continue to fund our operations for the long-term. Based on our current financial position, and as disclosed in our consolidated financial statements for the six months ended June 30, 2025, we believe that there is a substantial doubt about our ability to fund our operations and satisfy our obligations for the next twelve months without obtaining additional financing, which raises substantial doubts about our ability to continue as a going concern. Our consolidated financial statements for the six months ended June 30, 2025 do not include any adjustments that might result from the outcome of this uncertainty.. Our future capital requirements will depend on many factors, including:

● the progress and costs of our research and development activities;

● the costs of manufacturing our products;

● the costs of filing, prosecuting, enforcing and defending patent claims and other intellectual property rights;

● the potential costs of contracting with third parties to provide marketing and distribution services for us or for building such capacities internally; and

● the magnitude of our general and administrative expenses.

The table below summarizes our cash flows for the periods indicated.

---

| | | |
|:---|:---|:---|
| | **For the period Ended <br> June 30,** | **For the period Ended <br> June 30,** |
| <br>**U.S. dollars** | **2025** | **2024** |
| Net cash used in operating activities | $(1290105) | $(985092) |
| Net cash used in investing activities | (8311) | (48612) |
| Net cash provided by (used in) financing activities | 1777160 | (192720) |
| Increase (Decrease) in cash, cash equivalents and restricted deposit | $478744) | $(1226424) |

---

*Operating Activities*

Cash used in operating activities mainly consists of our net income (loss) adjusted for certain non-cash items, including share-based compensation, depreciation expenses and changes in operating assets and liabilities during each period.

Net cash used in operating activities was $1,290,105 during the period ended June 30, 2025, compared to net cash used in operating activities of $985,092 for the period ended June 30, 2024. The increase in net cash used in operating activities was primarily attributable to an increase in our loss for the period.

*Investing Activities*

 ****

Net cash used for investing activities was $8,311 for the period ended June 30, 2025, as compared to net cash used in investing activities of $48,612 for the period ended June 30, 2024. The decrease was primarily due to a decrease in proceeds from short term deposits.

*Financing Activities*

 ****

Net cash provided by financing activities was $1,777,160 for the period ended June 30, 2025, as compared to net cash used in financing activities of $192,720 for the period ended June 30, 2024. The increase was primarily attributable to an increase in short-term bank credit, net.

*Financial Arrangements*

Since our inception, we have financed our operations primarily through proceeds from sales of Ordinary Shares, preferred shares, warrants, credit lines and long-term loans from banks and shareholders.

Since our inception, Israel Bar, our Chief Executive Officer, a director and our largest shareholder, and Joseph Gottlieb, a then director and second largest shareholder, have provided loans to us in an aggregate amount of NIS 7,513,887 (approximately $2,282,364). Mr. Gottlieb passed away in April 2025. On May 9, 2021, we entered into a loan facility agreement, or, as amended on June 30, 2021, the Loan Facility Agreement, effective as of January 1, 2021, with Mr. Bar and Mr. Gottlieb. The total outstanding amount under the Loan Facility Agreement after giving effect to the Amendment was NIS 3,480,306 (approximately $1,088,250). As of June 30, 2025, the outstanding balance due under the Loan Facility Agreement is $375,972.

Except for standard operating leases, we have not engaged in any off-balance sheet arrangements, such as the use of unconsolidated subsidiaries, structured finance, special purpose entities or variable interest entities.

We do not believe that off-balance sheet arrangements and commitments are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

 **

***Critical Accounting Estimates***

 **

We describe our significant accounting policies more fully in Note 2 to our unaudited financial statements for the six months ended June 30, 2025. We believe that the accounting policies described below and in Note 2 to our financial statements are critical in order to fully understand and evaluate our financial condition and results of operations.

There have been no material changes to our critical accounting policies since we filed our Annual Report other than as described in Note 2 to our unaudited financial statements for the six months ended June 30, 2025.

This discussion and analysis of our financial condition and results of operations is based on our financial statements, which we prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses during the reporting periods. On an ongoing basis, we evaluate such estimates and judgments, including those described in greater detail below. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.