Nexentis Technologies Inc 10-Q for FY2022 Q2
Nexentis Technologies Inc. (NXTS)
About this 10-Q
Nexentis Technologies Inc filed this 10-Q on August 15, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).
Headline figures
Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $31.08K
- down 42.9% from $54.4K a year earlier
- Net loss
- $1.26M
- compared with a net loss of $1.48M a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For
the quarterly period ended
For the transition period from To
Commission
File No.
| (Exact name of registrant as specified in its charter) |
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification No.) |
| |
||
| (Address of Principal Executive Offices) | (Zip Code) |
| (Registrant’s telephone number, including area code) |
n/a
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||
| The
|
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☐ | Large accelerated filer | ☐ | Accelerated filer |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐
As of June 30, 2022, the registrant had shares of common stock, par value $0.0001 (the “Common Stock”) issued and outstanding.
As used in this Quarterly Report and unless otherwise indicated, the terms “Save Foods,” “we,” “us,” “our,” or “our Company” refer to Save Foods, Inc. and Save Foods Ltd., the 98.48% owned subsidiary of Save Foods, Inc. Unless otherwise specified, all dollar amounts are expressed in United States dollars.
Save Foods, Inc.
Quarterly Report on Form 10-Q
TABLE OF CONTENTS
| 2 |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information set forth in this Quarterly Report on Form 10-Q, including in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein may address or relate to future events and expectations and as such constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements which are not historical reflect our current expectations and projections about our future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and their interpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future events. Such forward-looking statements include statements regarding, among other things:
| ● | our expectations regarding our short and long-term capital requirements; |
| ● | our history of operating losses and expectation to incur additional losses in the future; |
| ● | our ability to raise additional capital to meet our liquidity needs; |
| ● | because of our limited operating history, we may not be able to successfully operate our business or execute our business plan; |
| ● | our products and technology requiring additional trials; |
| ● | commercial success of our new generation products, as well as any future products, depends upon the degree of market acceptance by the packing house community as well as by other prospect markets and industries |
| ● | our ability to comply with the continued listing standards of the Nasdaq Capital Market; |
| ● | sales of our products; |
| ● | the size and growth of our product market; |
| ● | our marketing plans; |
| ● | our activity in the civilian market; |
| ● | our ability to obtain market acceptance of our environmentally friendly solutions for fruits and vegetables; |
| ● | our inability to respond effectively to technological changes in our industry, which could reduce the demand for our products; |
| ● | our ability to satisfy or maintain compliance in the U.S. (including the U.S. Food and Drug Administration, the United States Environmental Protection Agency and the California Department of Pesticide Regulation), and international regulatory requirements and obtain required approvals for sales or exports of our products; |
| ● | our ability to achieve regulatory approvals and registration in the United States and abroad (Mexico, Israel, Spain and Italy), which might take longer than expected; |
| ● | significant competition from other companies looking to develop or acquire new alternative environmentally friendly solutions for the treatment of fruits and vegetables, and other edible matter; |
| ● | our reliance on a limited number of suppliers to produce certain key components of our products; |
| ● | our plans to continue to invest in research and development; |
| 3 |
| ● | our ability to establish and maintain strategic partnerships with third parties, including for the distribution of products; |
| ● | our ability to establish sales, marketing and distribution capabilities or enter into successful relationships with third parties to perform these services; |
| ● | our reliance on rapidly establishing global distributorship network in order to effectively market our products; |
| ● | results of our early tests may not be indicative of results in future tests and we cannot assure you that any planned or future tests will lead to results sufficient for the necessary regulatory approvals; |
| ● | inherent dangers in production and transportation of hydrogen peroxide and highly concentrated organic acids could cause disruptions and could expose us to potentially significant losses, costs or other liabilities; |
| ● | our ability to attract and retain sufficient, qualified personnel; |
| ● | our ability to obtain or maintain patents or other appropriate protection for the intellectual property; |
| ● | our ability to grow both domestically and internationally; |
| ● | our ability to adequately support future growth; |
| ● | potential product liability or intellectual property infringement claims; |
| ● | our business and operations may be affected by climate change conditions, which could materially harm our financial results; |
| ● | risks relating to portfolio concentration; |
| ● | risks relating to international expansion of our business and operations; |
| ● | the effect of COVID-19 on our business; and |
| ● | information with respect to any other plans and strategies for our business. |
Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “should,” “would,” “could,” “scheduled,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “seek,” or “project” or the negative of these words or other variations on these words or comparable terminology. Actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially and perhaps substantially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. These statements may be found under the section of our Annual Report on Form 10-K for the year ended December 31, 2021 (filed on March 31, 2022) (“2021 Annual Report”) entitled “Risk Factors” as well as in our other public filings.
In light of these risks and uncertainties, and especially given the start-up nature of our business, there can be no assurance that the forward-looking statements contained herein will in fact occur. Readers should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
On February 23, 2021, we implemented a one-for-seven reverse stock split of our Common Stock pursuant to which holders of our Common Stock received one share of our Common Stock for every seven shares of Common Stock held. Unless the context expressly dictates otherwise, all references to share and per share amounts referred to herein reflect the reverse stock split.
| 4 |
PART I – FINANCIAL INFORMATION
Item 1. Condensed Consolidated Interim Financial Statements (unaudited).
SAVE FOODS, INC.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
AS OF JUNE 30, 2022
IN U.S. DOLLARS
TABLE OF CONTENTS
| Page | |
| UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS: | |
| Unaudited Condensed Consolidated Interim Balance Sheets | 6 |
| Unaudited Condensed Consolidated Interim Statements of Comprehensive Loss | 7 |
| Unaudited Condensed Consolidated Interim Statements of Stockholders’ Equity | 8 |
| Unaudited Condensed Consolidated Interim Statements of Cash Flows | 9 |
| Notes to Unaudited Condensed Consolidated Interim Financial Statements | 10 - 16 |
| 5 |
SAVE FOODS, INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(U.S. dollars except share and per share data)
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | ||||||||
| Restricted cash | ||||||||
| Accounts receivable, net | ||||||||
| Inventories | ||||||||
| Other current assets | ||||||||
| Total Current assets | ||||||||
| Right-of-use asset arising from operating lease | ||||||||
| Property and equipment, net | ||||||||
| Funds in respect of employee rights upon retirement | ||||||||
| Total assets | ||||||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Short-term loan from banking institutions | ||||||||
| Accounts payable | ||||||||
| Other liabilities | ||||||||
| Total current liabilities | ||||||||
| Operating lease liabilities | ||||||||
| Liability for employee rights upon retirement | ||||||||
| Total liabilities | ||||||||
| Stockholders’ Equity | ||||||||
| Common Stock $ par value per share (“Common Stock”): shares authorized as of June 30, 2022 and December 31, 2021; issued and outstanding and shares as of June 30, 2022 and December 31, 2021, respectively. | ||||||||
| Preferred Stock $ par value per share (“Preferred Stock”): shares authorized as of June 30, 2022 and December 31, 2021; issued and outstanding shares as of June 30, 2022 and December 31, 2021. | ||||||||
| Additional paid-in capital | ||||||||
| Foreign currency translation adjustments | ( | ) | ( | ) | ||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total | ||||||||
| Non-controlling interests | ( | ) | ( | ) | ||||
| Total stockholders’ equity | ||||||||
| Total liabilities and stockholders’ equity | ||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
| 6 |
SAVE FOODS, INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS
(U.S. dollars except share and per share data)
| Six months ended | Three months ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues from sales of products | ||||||||||||||||
| Cost of sales | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Gross profit | ||||||||||||||||
| Research and development expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Selling and marketing expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Operating loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Financing income (expenses), net | ( | ) | ||||||||||||||
| Comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Less: net loss attributable to non-controlling interests | ||||||||||||||||
| Net loss attributable to the Company’s stockholders’ equity | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Loss per share (basic and diluted) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Basic and diluted weighted average number of shares of Common Stock outstanding | ||||||||||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
| 7 |
SAVE FOODS, INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. dollars, except share and per share data)
| Number of shares (*) |
Amount | Additional paid-in capital | Foreign currency translation adjustments | Accumulated deficit | Total Company’s stockholders’ equity | Non-controlling interests | Total stockholders’ equity | |||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2021 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Issuance of shares to employees and services providers | ||||||||||||||||||||||||||||||||
| Share based compensation to employees and directors | - | |||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
| BALANCE AT MARCH 31, 2022 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Issuance of shares to employees and services providers | ||||||||||||||||||||||||||||||||
| Share based compensation to employees and directors | - | |||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
| BALANCE AT JUNE 30, 2022 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Number of shares |
Amount | Additional paid-in capital | Foreign currency translation adjustments | Accumulated deficit | Total Company’s stockholders’ equity |
Non-controlling interests | Total stockholders’ equity | |||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2020 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Share based compensation for employees and directors | - | |||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
| BALANCE AT MARCH 31, 2021 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Issuance of shares, net of issuance costs of $ | ||||||||||||||||||||||||||||||||
| Conversion of convertible loans | ||||||||||||||||||||||||||||||||
| Stock based compensation to employees and directors | - | |||||||||||||||||||||||||||||||
| Share based compensation for services providers | ||||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
| BALANCE AT JUNE 30, 2021 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| (*) |
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
| 8 |
SAVE FOODS, INC.
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(U.S. dollars except share and per share data)
| Six months ended | ||||||||
| June 30, | ||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Loss for the period | ( | ) | ( | ) | ||||
| Adjustments required to reconcile net loss for the period to net cash used in operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Decrease in liability for employee rights upon retirement | ( | ) | ( | ) | ||||
| Issuance of shares to employees and services providers | ||||||||
| Share based compensation to employees and directors | ||||||||
| Expenses on convertible loans | ||||||||
| Interest expenses on loans | ( | ) | ||||||
| Exchange rate differences on operating leases | ( | ) | ||||||
| Decrease in accounts receivable | ||||||||
| Decrease (increase) in inventory | ( | ) | ||||||
| Increase in other current assets | ( | ) | ( | ) | ||||
| Increase (decrease) in accounts payable | ( | ) | ||||||
| Increase (decrease) in other liabilities | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | ( | ) | ||||||
| Decrease in funds in respect of employee rights upon retirement | ||||||||
| Net cash provided by (used in) investing activities | ( | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from convertible loans | ||||||||
| Repayments of long-term loans from banking institutions | ( | ) | ( | ) | ||||
| Proceeds from stock issued for cash, net of issuance costs of $ | ||||||||
| Net cash provided by (used in) financing activities | ( | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | ( | ) | ||||||
| INCREASE (DECREASE) IN CASH , CASH EQUIVALENTS AND RESTRICTED CASH | ( | ) | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | ||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | ||||||||
| Supplemental disclosure of cash flow information: | ||||||||
| Non cash transactions: | ||||||||
| Issuance of shares for future services | ||||||||
| Initial recognition of operating lease right-of-use assets | ||||||||
| Initial recognition of operating lease liability | ||||||||
| Conversion of convertible loans | ||||||||
| Deferred issuance expenses | ||||||||
The accompanying notes are an integral part of the condensed consolidated interim financial statements
| 9 |
SAVE FOODS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 1 - GENERAL
Save Foods, Inc. (the “Company”) was incorporated on April 1, 2009, under the laws of the State of Delaware. On April 27, 2009, the Company acquired from its stockholders % of the issued and outstanding shares of Save Foods Ltd., including preferred and Common Stock. Save Foods Ltd. was incorporated in 2004 and commenced its operations in 2005. Save Foods Ltd. develops, produces, and focuses on delivering innovative solutions for the food industry aimed at improving food safety and shelf life of fresh produce. The Company and Save Foods Ltd. (collectively, the “Group”).
On
May 13, 2021, the Company completed an underwritten public offering of
shares of its Common Stock for net proceeds of $
Effects of the spread of the coronavirus
The COVID-19 pandemic continues to create business and economic uncertainty and volatility in the global markets. Many countries around the world are experiencing further outbreaks of the pandemic, following which governments are once again imposing various restrictions. At the same time, there is a recovery trend in the volume of economic activity around the world that leads on one hand, to significant demand for certain products and services and on the other hand, disruptions to worldwide supply chain routes and some raw materials. The Group continues to take measures to ensure the health and safety of its employees, suppliers, other business partners and the communities in which it operates in order to ensure, among others, the operation level, the proper functioning of its facilities and to minimize the pandemic’s potential impact on its business. Manufacturing continues at the Group’s sites without interruptions. However, there is still a difficulty in assessing the future impacts of the pandemic on the Group’s operations, inter alia, in light of the uncertainty of its duration, the extent of its intensity and effects on global supply chains and global markets, and additional countermeasures that may be taken by governments and central banks.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION
Basis of presentation
The condensed interim consolidated financial statements included in this quarterly report are unaudited. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for a fair statement of the Company’s financial position as of June 30, 2022, and its results of operations for the three and six months ended June 30, 2022, and 2021, changes in shareholders’ equity for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other future annual or interim period. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Form 10--K for the year ended December 31, 2021 as filed with the SEC. The Company’s significant accounting policies are disclosed in the audited financial statements for the year ended December 31, 2021 included in the Company’s Form 10-K. Since the date of such financial statements, there have been no changes to the Company’s significant accounting policies.
| 10 |
SAVE FOODS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
| NOTE 2 - | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continue) |
Use of Estimates
The preparation of unaudited condensed consolidated interim financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, certain revenues and expenses, and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to share based compensation.
NOTE 3 – COMMON STOCK
| 1. | On
January 31, 2022, following the Board of Directors of Save Foods Ltd.’s appointment of Mr. Joachim Fuchs as the Chairman of the
Board of Directors of Save Foods Ltd, the Board of Directors of the Company (the “Board”) approved the nomination and
his consulting agreement. Based on the consulting agreement Mr. Joachim Fuchs is entitled to a monthly fee of NIS | |
| 2. | On
February 1, 2022, the Company entered into a Letter Agreement with a consultant according to which the Consultant will provide the
Company with public relations, branding and other services as detailed in the Letter Agreement. As consideration for the services,
the Company will issue the Consultant, a warrant to purchase up to an aggregate of |
| 11 |
SAVE FOODS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
| NOTE 3 – | COMMON STOCK (continue) |
As of June 30, 2022, the consultant did not elect to utilize the cash exercise option
The
fair value of the February 2022 Warrant was determined based on the Company’s share price as of the date of the agreement using
the Black-Scholes pricing model, assuming a risk-free rate of %,
a volatility factor of %,
dividend yields of %
and an expected life of years and was calculated at $
During the six months ended June 30, 2022, the Company recorded $ as share based compensation expenses in respect of the February 2022 Warrant and share based compensation in the amount of $, related to the cash exercise option.
On July 28, 2022 the Company and the Consultant entered into an Amendment to the Letter Agreement – see note 7 below.
| 3. | On
March 10, 2022, the Company entered into an Investor Relations Agreement (the “March IR Agreement”) with a consultant
for a period of 12 months. According to the Agreement, the Company will pay the Consultant for his services a monthly fee of $ | |
| On
June 27, 2022 the Company and the consultant, signed an amendment to the March IR Agreement, according to which the monthly cash
payment for the three months ended September 30, 2022 would be $ | ||
| 4. | On January 27, 2022, and on May 2, 2022, the Company issued an aggregate of shares under its October 1, 2021, consulting agreement. During the six months ended June 30, 2022, the Company recorded share based compensation expenses of $ in respect of the above agreement. | |
| On June 8, 2022 the Company decided to terminate the consulting agreement. | ||
| 5. | On
April 1, 2022, the Company entered into an Investor Relations Agreement (the “April IR Agreement”) with a Consultant
for a period of 90 days. According to the April IR Agreement, the Company will pay the Consultant for his services a monthly fee
of $ |
In
addition, the Company will issue warrants to purchase
The
fair value of the April Warrant was determined based on the Company’s share price as of the date of the agreement using the
Black-Scholes pricing model, assuming a risk-free rate between %
to %,
a volatility factor between %
to%, dividend yields of %
and an expected life between
to
years and was calculated at $
| 12 |
SAVE FOODS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
| NOTE 3 – | COMMON STOCK (continue) |
On
June 26, 2022, the Company entered into an amendment to the April IR Agreement, according to which the Company shall engage the
Consultant for additional period of 90 days commencing July 1, 2022. According to the amendment to the April IR Agreement, the
Company will pay the Consultant for his services a monthly fee of $
In
addition, the Company will issue warrants to purchase
| 6. | On May 2, 2022, the Company issued shares under its June 15, 2021 consulting agreement as detailed in the financial statements for the year ended December 31, 2021. | |
| 7. | On
May 18, 2022, the Company issued shares to a consultant, based on the May 11, 2022 board resolution. The shares were estimated
at $ | |
| 8. | On
January 9, 2022 the Company entered into a Strategic consulting and Corporate Digital Marketing agreement (the “Consulting
Agreement”) with a Consultant for a period of 12 months. According to the Consulting Agreement, the Company agreed to pay the
Consultant for his services a monthly fee of $ | |
| 9. | On
February 23, 2021, the Company amended its Certificate of Incorporation to effect a |
| 13 |
SAVE FOODS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
SCHEDULE OF STOCK OPTION ACTIVITY
| Number of Options | Weighted Average Exercise Price | |||||||
| Outstanding at December 31, 2021 | ||||||||
| Granted | ||||||||
| Exercised | ||||||||
| Forfeited or expired | ||||||||
| Outstanding at June 30, 2022 | ||||||||
| Number of options exercisable at June 30, 2022 | ||||||||
The aggregate intrinsic value of the awards outstanding as of June 30, 2022 is $. These amounts represent the total intrinsic value, based on the Company’s stock price of $as of June 30, 2022, less the weighted exercise price.
Costs incurred in respect of stock-based compensation for employees and directors, for the six months ended June 30, 2022 and 2021 were $ and $, respectively.
| 14 |
SAVE FOODS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 5 – RELATED PARTIES
A. Transactions and balances with related parties
SCHEDULE OF TRANSACTIONS AND BALANCES WITH RELATED PARTIES
| Six months ended June 30, | ||||||||
| 2022 | 2021 | |||||||
| General and administrative expenses: | ||||||||
| Directors compensation | ||||||||
| Salaries and fees to officers | ||||||||
| General and administrative expenses net | (*) | (*) | ||||||
| (*) of which share based compensation | ||||||||
| Research and development expenses: | ||||||||
| Salaries and fees to officers | (*) | |||||||
| (*) of which share based compensation | ||||||||
| Selling and marketing expenses: | ||||||||
| Salaries and fees to officers | (*) | |||||||
| (*) of which share based compensation | ||||||||
B. Balances with related parties and officers:
| Other accounts payables |
C. Other information:
| 1. | On
April 17, 2022, the Board resolved to appoint Ms. Lital Barda, the Company’s current financial controller, as the Company’s
CFO, Treasurer and Secretary, which appointment entered into effect on April 18, 2022. In connection with Ms. Barda’s appointment
as the Company’s CFO, Treasurer and Secretary, the Board resolved to approve the following terms of compensation, effective
immediately upon the effectiveness of Ms. Barda’s appointment: (a) a monthly base salary of NIS |
| 15 |
SAVE FOODS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 6 – GEOGRAPHIC AREAS AND MAJOR CUSTOMERS
A. Information on sales by geographic distribution:
The Company has one operating segment. Sales are attributed to geographic distribution based on the location of the customer.
SCHEDULE OF INFORMATION ON SALES BY GEOGRAPHIC DISTRIBUTION
| Six months ended June 30, | Three months ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Israel | ||||||||||||||||
| United States | ||||||||||||||||
| Mexico | ||||||||||||||||
| Revenues from sales of products | ||||||||||||||||
B. Sales to single customers exceeding 10% of sales (US$):
SCHEDULE OF SALES TO CUSTOMERS
| Six months ended June 30, | Three months ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Customer A | ||||||||||||||||
| Customer B | ||||||||||||||||
| Revenues from sales of products | ||||||||||||||||
NOTE 7 – SUBSEQUENT EVENTS
| 1. | On July 11, 2022, the Company issued shares to a consultant under its January 9, 2021 consulting agreement. | |
| 2. | On
July 28, 2022 the Company entered into an Amendment to the Letter Agreement detailed in note 3(2) above according to which the
Consultant shall be entitled to |
| 16 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Readers are advised to review the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated interim financial statements (unaudited) and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the consolidated financial statements and related notes thereto in our 2021 Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking Statements”. You should review the “Risk Factors” section of our 2021 Annual Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Furthermore, certain disclosures and references made herein apply to Save Foods Ltd., the subsidiary of Save Foods, Inc. The primary business activities and operations discussed herein are performed by Save Foods Ltd., whereas Save Foods, Inc. operates as a holding company and is the Registrant for purposes of this Quarterly Report on Form 10-Q.
We develop eco-friendly “green” solutions for the food industry. Our solutions are developed to improve the food safety and shelf life of fresh produce. We do this by controlling human and plant pathogens, thereby reducing spoilage, and in turn, reducing food loss.
Our products are based on a proprietary blend of food acids which have a synergistic effect when combined with certain types of oxidizing agent-based sanitizers and fungicides at low concentrations. Our green treatments are capable of cleaning, sanitizing and controlling pathogens on fresh produce with the goal of making them safer for human consumption and extending their shelf life by reducing their decay. One of the main advantages of our products is that our ingredients do not leave any toxicological residues on the fresh produce we treat. In contrary, by forming a temporary protective shield around the fresh produce we treat, our products make it difficult for pathogens to develop and potentially provide protection which also reduces cross-contamination.
Our Common Stock is listed on the Nasdaq Capital Market under the symbol “SVFD.”
Results of Operations
Components of Results of Operation
Revenues and Cost of Revenues
Our total revenue consists of products and our cost of revenues consists of cost of products.
The following table discloses the breakdown of revenues and costs of revenues:
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
| U.S. dollars in thousands, except share and per share data | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenues from sales of products | 118,710 | 177,477 | 31,080 | 54,403 | ||||||||||||
| Cost of sales | (54,847 | ) | (14,287 | ) | (12,998 | ) | (11,354 | ) | ||||||||
| Gross profit | 63,863 | 163,190 | 18,082 | 43,049 | ||||||||||||
Operating Expenses
Our operating expenses consist of three components — research and development expenses, selling and marketing expenses and general and administrative expenses.
| 17 |
Research and Development Expenses
Our research and development expenses consist primarily of salaries and related personnel expenses, laboratory and field tests, professional fees and other related research and development expenses.
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
| U.S. dollars in thousands | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Salaries and related expenses | 173,557 | 17,927 | 58,742 | 15,841 | ||||||||||||
| Share based compensation | 2,921 | 31,344 | 973 | 13,428 | ||||||||||||
| Professional fees | 41,633 | 210,932 | 17,331 | 179,918 | ||||||||||||
| Laboratory and field tests | 54,483 | 7,376 | 13,488 | 1,116 | ||||||||||||
| Depreciation | 35,267 | 13,899 | 17,477 | 7,133 | ||||||||||||
| Other expenses | 14,877 | 15,055 | 5,365 | 9,307 | ||||||||||||
| Total | 322,738 | 296,533 | 113,376 | 226,742 | ||||||||||||
We expect that our research and development expenses will increase as we continue to develop our products and services, field trials and recruit additional research and development employees.
Selling and Marketing Expenses
Selling and marketing expenses consist primarily of salaries and related expenses, professional fees and other expenses.
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
| U.S. dollars in thousands | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Salaries and related expenses | 150,965 | 3,414 | 68,705 | 2,637 | ||||||||||||
| Share based compensation | 2,921 | 791 | 2,142 | 329 | ||||||||||||
| Professional fees | 86,975 | 6,750 | 31,354 | 4,850 | ||||||||||||
| Commissions | 8,135 | 9,060 | 2,669 | 4,260 | ||||||||||||
| Travel abroad | 29,627 | - | 16,065 | - | ||||||||||||
| Transport and storage | 15,855 | 10,339 | 8,037 | 5,026 | ||||||||||||
| Other expenses | 28,571 | 3,055 | 15,941 | 1,610 | ||||||||||||
| Total | 323,049 | 33,409 | 144,913 | 18,712 | ||||||||||||
We expect that our selling and marketing expenses will increase as we continue to increase our selling and marketing efforts including commercial validation pilots and recruit additional employees or contractor to support our selling and marketing efforts in our targeted geographical areas.
General and Administrative Expenses
General and administrative expenses consist primarily of professional services, share based compensation, insurance and other non-personnel related expenses.
Six Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||
| U.S. dollars in thousands | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Professional services | 1,165,349 | 1,345,163 | 612,653 | 1,181,209 | ||||||||||||
| Share based compensation | 397,655 | 112,738 | 207,636 | 47,309 | ||||||||||||
| Salaries and related expenses | 159,464 | 32,056 | 68,685 | 32,056 | ||||||||||||
| Insurance | 246,030 | 147,125 | 110,155 | 128,217 | ||||||||||||
| Other expenses | 72,184 | 35,625 | 37,596 | 30,945 | ||||||||||||
| Total | 2,040,682 | 1,672,707 | 1,036,725 | 1,419,736 | ||||||||||||
| 18 |
Three months ended June 30, 2022 compared to three months ended June 30, 2022
Revenues
Revenues for the three months ended June 30, 2022 were $31,080, a decrease of $23,323, or 43%, compared to $54,403 during the three months ended June 30, 2021. The decrease is mainly a result of a decrease in sales due to weather conditions, which caused a reduction in citrus production.
We do not have backlogs or firm commitments from our customers for our products. Our sales might deteriorate if we fail to achieve commercial success or obtain regulatory approval of any of our products.
Cost of Sales
Cost of sales consists primarily of salaries, materials, transportation and overhead costs of manufacturing our products. Cost of revenues for the three months ended June 30, 2022 was $12,998, an increase of $1,644, or 14%, compared to total cost of revenues of $11,354 for the three months ended June 30, 2021. The increase is mainly a result of our increase in materials, offset by a decrease in salaries for the three months ended June 30, 2022.
Gross Profit
Gross profit for the three months ended June 30, 2022 was $18,082, a decrease of $24,967, or 58%, compared to gross loss of $43,049 for the three months ended June 30, 2021. The decrease is mainly a result of the decrease in revenues as detailed above under the heading “Revenues”.
Research and Development
Research and development expenses consist of salaries and related expenses, consulting fees, service providers’ costs, related materials and overhead expenses. Research and development expenses for the three months ended June 30, 2022 were $113,376, a decrease of $113,366, or 50%, compared to total research and development expenses of $226,742 for the three months ended June 30, 2021. The decrease is mainly attributable to a decrease in consulting fees and service providers’ costs and compensation payable to a consultant following the listing of our Common Stock on the Nasdaq Capital Market, which occurred during the second quarter of 2021, partially offset by an increase in salaries and related expenses and field tests.
| 19 |
Selling and Marketing Expenses
Selling and marketing expenses consist primarily of salaries and related costs for selling and marketing personnel, travel related expenses and services providers. Selling and marketing expenses for the three months ended June 30, 2022 were $144,913, an increase of $126,201, or 674%, compared to total selling and marketing expenses of $18,712 for the three months ended June 30, 2021. The increase is mainly attributable to the increase in salaries and related costs, professional services and travel abroad in connection with the marketing and sales of our products.
General and Administrative Expenses
General and administrative expenses consist primarily of salaries and related expenses including share based compensation and other professional services as well as other non-personnel related expenses such as legal expenses and directors and insurance costs. General and administrative expenses for the three months ended June 30, 2022 were $1,036,725, a decrease of $383,011, or 27%, compared to total general and administrative expenses of $1,419,736 for the three months ended June 30, 2021. The decrease is mainly a result of the decrease in professional services and compensation payable to directors following the listing of our Common Stock on the Nasdaq Capital Market, which occurred during the second quarter of 2021, offset partially by an increase share-based compensation to our employees and service providers.
Financing Expenses, Net
Financing income, net for the three months ended June 30, 2022 were $12,928, a decrease of $107,988, or 89%, compared to $120,916 for the three months ended June 30, 2021. The decrease is mainly a result of the decrease in compensation expenses related to the accrued interest and amortization expenses associated with our convertible loans which were fully converted during the three months ended June 30, 2021.
Total Comprehensive Loss
As a result of the foregoing, our total comprehensive loss for the three months ended June 30, 2022 was $1,264,004, compared to $1,501,225 for the three months ended June 30, 2021, a decrease of $237,221, or 16%.
Six months ended June 30, 2022 compared to six months ended June 30, 2021
Revenues
Revenues for the six months ended June 30, 2022 were $118,710, a decrease of $58,767, or 33%, compared to $177,477 during the six months ended June 30, 2021. The decrease is mainly a result of a decrease in sales due to weather conditions which caused a reduction in citrus production.
We do not have backlogs or firm commitments from our customers for our products. Our sales might deteriorate if we fail to achieve commercial success or obtain regulatory approval of any of our products.
Cost of Sales
Cost of sales consists primarily of salaries, materials, transportation and overhead costs of manufacturing our products. Cost of sales for the six months ended June 30, 2022 were $54,847, an increase of $40,560, or 283%, compared to $14,287 for the six months ended June 30, 2021. The increase is mainly a result of our increase in materials for the three months ended June 30, 2022.
| 20 |
Gross Profit
Gross profit for the six months ended June 30, 2022 was $63,863, a decrease of $99,327, or 61%, compared to a gross profit of $163,190 for the six months ended June 30, 2021. The decrease is mainly a result of the decrease in revenues as detailed above under the heading “Revenues”.
Research and Development
Research and development expenses consist of salaries and related expenses, share base compensation, consulting fees, related materials and overhead expenses. Research and development expenses for the six months ended June 30, 2022 were $322,738, an increase of $26,205, or 9%, compared to total research and development expenses of $296,533 for the six months ended June 30, 2021.
Selling and Marketing Expenses
Selling and marketing expenses consist primarily of salaries and related expenses for selling and marketing personnel, travel related expenses and services providers and commissions. Selling and marketing expenses for the six months ended June 30, 2022 were $323,049, an increase of $289,640, or 867%, compared to total selling and marketing expenses of $33,409 for the six months ended June 30, 2021. The increase is mainly attributable to the increase in salaries and related costs, professional services and travel abroad in connection with the marketing and sales of our products.
General and Administrative Expenses
General and administrative expenses consist primarily of salaries and related expenses including share based compensation and other professional services as well as other non-personnel related expenses such as legal expenses and directors and insurance costs. General and administrative expenses for the six months ended June 30, 2022 were $2,040,682, an increase of $367,975, or 22%, compared to total general and administrative expenses of $1,672,707 for the six months ended June 30, 2021. The increase is mainly a result of the increase in share based compensation expenses, salaries and related expenses and insurance costs, offset partially by a decrease in professional services resulting from compensation expenses following the listing of our Common Stock on the Nasdaq Capital Market, which occurred during the second quarter of 2021.
Financing Income (Expenses), Net
Financing income, net, for the six months ended June 30, 2022 were $18,832, a decrease of $174,893, or 112%, compared to total financing expenses of $156,061 for the six months ended June 30, 2021. The decrease is mainly a result of the decrease in compensation expenses related to the accrued interest and amortization expenses associated with our convertible loans which were fully converted during the three months ended June 30, 2021.
| 21 |
Total Comprehensive Loss
As a result of the foregoing, our total comprehensive loss for the six months ended June 30, 2022 was $2,603,774, compared to $1,995,520 for the six months ended June 30, 2021, an increase of $608,254, or 30%.
Liquidity and Capital Resources
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are funds generated by operations, levels of accounts receivable and accounts payable and capital expenditures. Since our inception through June 30, 2022, we have funded our operations, principally with approximately $16 million (net of issuance expenses), from the issuance of shares of our Common Stock, options and loans.
On May 13, 2021, we completed an underwritten public offering of 1,090,909 shares of Common Stock at a price to the public of $11.00 per share. The gross proceeds we received from this offering were $12,000,000 (net proceeds of $10,457,862) (the “Underwritten Offering”).
The table below presents our cash flows for the periods indicated:
Six Months Ended June 30, | ||||||||
| 2022 | 2021 | |||||||
| Net cash used in operating activities | (2,355,007 | ) | (1,717,629 | ) | ||||
| Net cash provided by investing activities | (15,681 | ) | 4,375 | |||||
| Net cash provided by financing activities | (3,965 | ) | 10,768,010 | |||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (4,239 | ) | 8,144 | |||||
| Increase (decrease) in cash and cash equivalents | (2,378,892 | ) | 9,062,900 | |||||
As of June 30, 2022, we had cash and cash equivalents of $4,378,434, as compared to $9,305,800 as of June 30, 2021. As of June 30, 2022, we had a working capital of $4,227,109, as compared to the working capital of $8,904,187 as of June 30, 2021. The decrease in our cash balance is mainly attributable to cash used in operations.
In view of our cash balance following the above transactions, we anticipate that our cash balances will be sufficient to permit us to conduct our operations for at least a period of twelve months from the date of the date of these unaudited condensed consolidated financial statements. We may also satisfy our liquidity through the sale of securities, either in public or private transactions.
If we are unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of our planned development, which could harm our business, financial condition and operating results. If we obtain additional funds by selling any of our equity securities or by issuing Common Stock to pay current or future obligations, the percentage ownership of our stockholders will be reduced, stockholders may experience additional dilution, or the equity securities may have rights preferences or privileges senior to the Common Stock. If adequate funds are not available to us when needed on satisfactory terms, we may be required to cease operating or otherwise modify our business strategy.
Operating Activities
Net cash used in operating activities was $2,355,007 for the six months ended June 30, 2022, as compared to $1,717,629 for the six months ended June 30, 2021. The increase is mainly attributable to our net loss of $637,378.
Investing Activities
Net cash used in investing activities was $15,681 for the six months ended June 30, 2022, as compared to net cash provided by investing activities of $4,375 for the six months ended June 30, 2021. The increase is mainly attributable to increase in purchase of property and equipment partially offset by increase in funds in respect of employee rights upon retirement
Financing Activities
Net cash used in financing activities was $3,965 for the six months ended June 30, 2022, as compared to net cash provided by financing activities of $10,768,010 for the six months ended June 30, 2021. The decrease is mainly the result of proceeds from the Underwritten Offering described above and conversions of convertible loans which occurred during the second quarter of 2021.
| 22 |
Financial Arrangements
During January 2021, we entered into a series of convertible loan agreements with an aggregate principal amount of $274,000 that each bear interest at a rate of 5% per annum.
On May 11, 2021 and May 12, 2021, we issued an aggregate of 66,877 shares of Common Stock following the conversion of convertible promissory notes in the aggregate principal amount of $499,000 and of aggregated accrued interest amount of $11,211, at a conversion price of $7.63 per share.
On May 18, 2021, we closed the Underwritten Offering pursuant to which we issued a total of 1,090,909 shares of our Common Stock at a purchase price of $11.00 per share. In connection with the Underwritten Offering, we agreed to grant ThinkEquity, a division of Fordham Financial Management, Inc. (the “Underwriter”), a 45-day option to purchase up to 163,636 additional shares of Common Stock at the public offering price of $11.00 per share, less the underwriting discounts and commissions solely to cover over-allotments, and to issue the Underwriter a five-year warrant to purchase up to 54,545 shares of Common Stock, at a per share exercise price equal to 125% of the Underwritten Offering price per share of Common Stock. The gross proceeds from the Underwritten Offering were approximately $12,000,000.
Changes to Critical Accounting Policies and Estimates
Our critical accounting policies and estimates are set forth in our 2021 Annual Report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
As a smaller reporting company, we are not required to provide the information required by this Item.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2022. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2022, our disclosure controls and procedures were effective.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting or in other factors identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
| 23 |
PART II – OTHER INFORMATION
ITEM 1A. RISK FACTORS.
Our business faces many risks, a number of which are described under the caption “Risk Factors” in our 2021 Annual Report. Other than as set forth below, there have been no material changes from the risk factors previously disclosed in our 2021 Annual Report. The risks described in our 2021 Annual Report and below may not be the only risks we face. Other risks of which we are not yet aware, or that we currently believe are not material, may also materially and adversely impact our business operations or financial results. If any of the events or circumstances described in the risk factors contained in our 2021 Annual Report or described below occurs, our business, financial condition or results of operations could be adversely impacted and the value of an investment in our securities could decline. Investors and prospective investors should consider the risks described in our 2021 Annual Report and below, and the information contained under the caption “Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q before deciding whether to invest in our securities.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Except as set forth below, there were no sales of equity securities sold during the period covered by this Quarterly Report on Form 10-Q that were not registered under the Securities Act and were not previously reported in a Current Report on Form 8-K filed by the Company.
On May 2, 2022, the Company issued 12,500 shares of Common Stock to a consultant in consideration for services under the October 1, 2021 consulting agreement.
On May 2, 2022, the Company issued 12,000 shares of Common Stock to a consultant in consideration for services under the April 1, 2022 investor relations agreement.
On May 2, 2022, the Company issued 600 shares of Common Stock to a consultant in consideration for services under the June 15, 2021 consulting agreement.
On May 18, 2022, the Company issued 9,000 shares of Common Stock to a consultant in consideration for services pursuant to a resolution of the Company’s board of directors on May 11, 2022.
The foregoing shares were issued in reliance on the exemptions from registration provided by Section 4(a)(2) under the Securities Act and Regulation D promulgated thereunder for transactions not involving a public offering.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURE
Not applicable.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS.
(a) The following documents are filed as exhibits to this Quarterly Report or incorporated by reference herein.
| Exhibit | ||
| Number | Description | |
| 31.1* | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act | |
| 31.2* | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act | |
| 32.1** | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
| 32.2** | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
| 101.INS* | Inline XBRL Instance Document | |
| 101.INS* | 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 | |
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
| * | Filed herewith. |
| ** | Furnished herewith. |
| 24 |
SIGNATURES
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 hereunto duly authorized.
| Date: August 15, 2022 | SAVE FOODS INC. | |
| By: | /s/ David Palach | |
| Name: | David Palach | |
| Title: | Chief Executive Officer | |
| Save Foods, Inc. | ||
| By: | /s/ Lital Barda | |
| Name: | Lital Barda | |
| Title: | Chief Financial Officer | |
| Save Foods, Inc. |
| 25 |
Exhibit 31.1
CERTIFICATION PURSUANT TO
RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, David Palach, certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of Save Foods, Inc.; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the quarter end covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the quarter end presented in this report; |
| 4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
| a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the quarter end in which this report is being prepared; |
| b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the quarter end covered by this report based on such evaluation; and |
| d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: August 15, 2022 | |
/s/ David Palach |
|
| David Palach | |
| Chief Executive Officer |
Exhibit 31.2
CERTIFICATION PURSUANT TO
RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Lital Barda, certify that:
| 1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of Save Foods, Inc.; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the quarter end covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the quarter end presented in this report; |
| 4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
| a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the quarter end in which this report is being prepared; |
| b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the quarter end covered by this report based on such evaluation; and |
| d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
| b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: August 15, 2022 | |
/s/ Lital Barda |
|
| Lital Barda | |
| Chief Financial Officer |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Save Foods, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David Palach, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
| (1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ David Palach |
|
| David Palach | |
| Chief Executive Officer | |
| Save Foods, Inc. | |
| August 15, 2022 |
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Save Foods, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lital Barda, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
| (1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
| /s/ Lital Barda | |
| Lital Barda | |
| Chief Financial Officer | |
| Save Foods, Inc. | |
| August 15, 2022 |