SuperCom Ltd 6-K, filed Sep 26, 2025
SuperCom Ltd (SPCB)
6-K
2025-09-26
For: 2025-06-30
View Original
Added on
April 12, 2026
About this 6-K
SuperCom Ltd filed this 6-K on September 26, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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: 001-33668
(Translation of Registrant’s name into English)
3, Rothschild Street,
Tel Aviv,
Israel
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
SUPERCOM LTD.
6-K Items
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| 2. |
| 101.1NS |
XBRL Instance Document
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| 101.SCH |
XBRL Taxonomy Extension Schema Document
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| 101.CAL |
XBRL Taxonomy Extension Calculation Linkbase Document
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| 101.LAB |
XBRL Taxonomy Extension Label Linkbase Document
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| 101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document
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| 101.DEF |
XBRL Taxonomy Extension Definitions Linkbase Document
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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, thereunto duly authorized.
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SuperCom Ltd.
By: /s/ Ordan Trabelsi
Name: Ordan Trabelsi
Title: Chief Executive Officer
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Date: September 26, 2025
Exhibit 1
SUPERCOM LTD.
CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
as of June 30, 2025
(Unaudited)
IN U.S. DOLLARS
INDEX
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SUPERCOM LTD.
CONDENSED INTERIM CONSOLIDATED
BALANCE SHEETS
(U.S. dollars in thousands)
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June 30,
2025
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December 31,
2024
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Unaudited
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Audited
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CURRENT ASSETS
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Cash and cash equivalents
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Restricted bank deposits
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Trade receivable, net
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Other accounts receivable and prepaid expenses
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Inventories, net (Note 3)
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Patents
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Total current assets
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LONG-TERM ASSETS
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Deferred tax long-term
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Property and equipment, net
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Other intangible assets, net (Note 4)
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Other non-current assets
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Goodwill
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Operating lease right-of-use asset
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Total non-current assets
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TOTAL ASSETS
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CURRENT LIABILITIES
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Trade payables
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Employees and payroll accruals
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Accrued expenses and other liabilities
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Deferred revenue
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Short-term loan and other
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Total current liabilities
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LONG-TERM LIABILITIES
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Long-term loan
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Deferred revenue
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Deferred tax liability LT
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Operating lease liabilities
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Total non-current liabilities
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SHAREHOLDERS' EQUITY:
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Ordinary shares
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Additional paid-in capital
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Accumulated deficit
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Total shareholders' equity
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Total Liabilities and Shareholders' Equity
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The accompanying notes are an integral part of these interim consolidated financial statements.
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2
SUPERCOM LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
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Six Months Ended June 30
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2025
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2024
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Unaudited
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Unaudited
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REVENUES
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COST OF REVENUES
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GROSS PROFIT
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OPERATING EXPENSES
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Research and development, net
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Sales and marketing
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General and administration
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Other expenses
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Total operating expenses
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OPERATING (LOSS) INCOME
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FINANCIAL INCOME (EXPENSE), NET
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PROFIT BEFORE INCOME TAX
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INCOME TAX BENEFIT
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NET PROFIT FOR THE PERIOD
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NET PROFIT PER SHARE
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Basic
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Diluted
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Weighted average number of ordinary shares used in computing basic net loss per share
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Weighted average number of ordinary shares used in computing diluted net loss per share
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The accompanying notes are an integral part of these interim consolidated financial statements.
3
SUPERCOM LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. dollars in thousands, except share data)
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Ordinary shares
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Number of
Shares
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Share
capital
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Additional paid-in
capital
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Accumulated
deficit
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Total shareholders'
equity
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Balance as of December 31, 2022
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(
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Changes during the six months ended June 30, 2023 (unaudited):
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Net loss
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-
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(
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Exercise of options and debt conversion
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Share Issuance
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Balance as of June 30, 2023 (unaudited)
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Balance as of December 31, 2023
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Changes during the six months ended June 30, 2023 (unaudited):
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Net profit
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-
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Exercise of options and debt conversion
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Share Issuance
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Balance as of June 30, 2024 (unaudited)
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Balance as of December 31, 2024
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Changes during the six months ended June 30, 2025 (unaudited):
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Net profit
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-
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Stock based compensation
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-
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Exercise of options and debt conversion
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Share Issuance
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Balance as of June 30, 2025 (unaudited)
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The accompanying notes are an integral part of these interim consolidated financial statements.
4
SUPERCOM LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars in thousands)
| Six Months Ended June 30 | ||||||||
| 2025 | 2024 | |||||||
| Unaudited |
Unaudited
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Cash flows from operating activities:
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| Net profit | ||||||||
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Adjustments to reconcile net income to net cash used in operating activities:
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Depreciation and amortization
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Increase in trade receivables, net
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(
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Increase in other accounts receivable and prepaid expenses
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Increase (decrease) in inventories, net
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Increase (decrease) in trade payables
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Decrease (increase) in deferred tax
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Increase (decrease) in employees and payroll accruals
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Increase (decrease) in long-term loan and other debt
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(
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Stock-based compensation |
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Increase (decrease) in accrued expenses and other liabilities
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Change in fair value of derivative warrants liability
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Net cash used in operating activities
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Cash flows from investing activities:
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Purchase of property and equipment
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Decrease (increase) in severance pay fund
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Capitalization of software development costs
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Net cash provided by (used in) investing activities
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Cash flows from financing activities:
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Proceed from Issuance of share capital, and exercise of options and warrants, net
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Related parties
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Net cash provided by (used in) financing activities
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Increase (decrease) in cash, cash equivalents and restricted cash
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Cash, cash equivalents and restricted cash at the beginning of the year
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Cash, cash equivalents and restricted cash at the end of the period
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The accompanying notes are an integral part of these interim consolidated financial statements.
5
SUPERCOM LTD.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(U.S. dollars in thousands, unless otherwise indicated.)
NOTE 1: GENERAL
| a. |
Founded in 1988, SuperCom Ltd. is a global provider of traditional and digital identity solutions, advanced Internet of Things ( “IoT”) and connectivity solutions, and cyber security products and solutions, to governments and private and public organizations throughout the world. In these consolidated financial statements all references to “SuperCom,” the “Company,” “we,” “us” or “our” are to SuperCom Ltd., a company organized under the laws of the State of Israel, and its subsidiaries, unless the context otherwise provides.
We are comprised of three main Strategic Business Units (SBU): e-Gov, IoT and Connectivity, and Cyber Security:
e-Gov
Through our proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, we have helped governments and national agencies design and issue secured multi-identification, or Multi-ID, documents and robust digital identity solutions to their citizens, visitors and lands.
We have focused on expanding our activities in the traditional identification, or ID, and electronic identification, or e-Gov, market, including the design, development and marketing of identification technologies and solutions to governments in Europe, Asia, America and Africa using our e-Government platforms. Our activities include: (i) utilizing paper secured by different levels of security patterns (UV, holograms, etc.); and (ii) electronic identification secured by biometric data, principally in connection with the issuance of national Multi-ID documents (IDs, passports, driver’s licenses, vehicle permits, and visas, Secure Land Certificated) border control applications and Land Information System (LIS).
IoT and Connectivity
Our IoT products and solutions reliably identify, track and monitor people or objects in real time, enabling our customers to detect unauthorized movement of people, vehicles and other monitored objects. We provide all-in-one field proven IoT suite, accompanied with services specifically tailored to meet the requirements of an IoT solutions. Our proprietary IoT suite of hybrid hardware, connectivity and software components are the foundation of these solutions and services. Our IoT division has primarily focused on growing the following markets: (i) public safety; (ii) healthcare and homecare; (iii) Smart Cities; (iv) Smart Campus; and (iv) transportation.
During 2006, we identified the growing electronic tracking and monitoring vertical markets for public safety, real time healthcare and homecare, and transportation management. We have developed the PureRF Hybrid suite of wrist devices, connectivity, and controlling software, from 2012 we have developed the next generation IoT suite of devices, connectivity and Monitoring software; the PureSecurity Hybrid Suite of wrist band, tags, beacons, PureCom, Pure Monitors, PureTrack and other components.
On January 1, 2016, we acquired Leaders in Community Alternatives, Inc. (“ LCA”). LCA is a California based, private criminal justice organization, providing community-based services and electronic monitoring programs to government agencies in the U.S. for more than 25 years. LCA offers a broad range of competitive solutions for governmental institutions across the U.S. in addressing realignment strategies and plans.
Connectivity
In 2016, as part of our strategy to enhance and broaden our IoT connectivity products and solutions offerings for public safety, enterprises, hospitality and smart cities markets, on May 18, 2016, we acquired Alvarion Technologies Ltd., or Alvarion. Alvarion designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses and connected events that are both complete and heterogeneous to ensure ease-of-use and optimize operational efficiency. Carriers, local governments and hospitality sectors worldwide deploy Alvarion’s intelligent wi-fi networks to enhance productivity and performance, as well as its legacy backhaul services and products.
Cyber Security
During 2015, we identified the cyber security market as a very fast-growing market where we believe that SuperCom has major advantages due to synergic technologies and a shared customer base to our e-Gov, IoT and connectivity SBUs. In 2015, we acquired Prevision Ltd., or Prevision, a company with a strong presence in the market and a broad range of competitive and well-known cyber security services. During the first quarter of 2016, we acquired Safend Ltd, or Safend, an international provider of cutting edge endpoint data protection guarding against corporate data loss and theft through content discovery and inspection, encryption methodologies, and comprehensive device and port control. Safend maps sensitive information and controls data flow through email, web, external devices and additional channels.
Both acquisitions significantly expanded the breadth of our cyber security capabilities globally, while providing us with outstanding market and technological experts and over 3,000 customers in the United States, Europe, and Asia, and more than three million software license seats deployed by multinational enterprises, government agencies and small to mid-size companies around the globe, together with leading data and cyber security platforms and technologies.
Effective August 22, 2024, we effected a
Accordingly, all ordinary share and per share data, par value and exercise price data for applicable ordinary share equivalents included in these interim consolidated financial statements of our Company and our subsidiaries as of June 30, 2025 and 2024 and in our Management's Discussion and Analysis of Results Operations included in this Report on Form 6-K have been retroactively adjusted to give effect to the Reverse Split, unless otherwise indicated.
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6
NOTE 1: GENERAL (Cont.)
| b. |
Liquidity Analysis
The Company has experienced significant cash outflows from cash used in operating activities over the past 3 years. As of six months ended June 30, 2025, the Company had an accumulated deficit of $
Management has evaluated the significance of the conditions described above in relation to the Company’s ability to meet its obligations and noted that as of June 30, 2025, the Company had cash, cash equivalent, and restricted cash of $
Additionally, the Company secured financing of $
On March 1, 2022, the Company raised $
On July 27, 2022, the Company raised $
On March 31, 2023, the Company raised $
On August 3, 2023, the Company raised $
On November 15, 2023, the Company raised approximately $
On April 19, 2024, the Company raised approximately $
On January 31, 2025, the Company raised approximately $
On February 19, 2025, the Company raised approximately $
To date, the Company has used the proceeds from the secured financing, subordinated debt, and private placement (i) to satisfy certain indebtedness; and (ii) for general corporate purposes, and (iii) for working capital needs for multiple new government customer contracts with significant positive cash flow.
The Company believes that based on the above-mentioned secured financings, management’s plans, significant cost savings, and expected cash streams from the Company’s current contracts with customers worldwide, it will be able to fund its operations for at least the next 12 months.
|
7
NOTE 1: GENERAL (Cont.)
| c. |
Senior Secured Credit Facility
On September 6, 2018 and October 26, 2018, through a two-stage closing process, the Company entered into a Senior Secured Credit Facility with affiliates of Fortress Investment Group LLC ("Fortress") with an aggregate principal amount of up to $
On January 22, 2025, the Company entered into a Waiver and Fourth Amendment to Credit Agreement with affiliates of the Company’s senior lender Fortress Investment Group LLC, the Company’s wholly owned subsidiary, and certain other subsidiaries of the Company as guarantors, to amend the Credit Agreement. Pursuant to the Amendment, among other things, the parties agreed: (i) for $
As of June 30, 2025 the outstanding balance of the Credit Facility was $
In 2021, the Company secured through the issuance of subordinated notes, gross proceeds of $
During 2025, 2024, 2023, 2022 and 2021, the Company converted $
As of June 30, 2025, the outstanding principal, including accrued interest, of these outstanding subordinated notes of the Company was $
The Company purchases certain services and products used by it to generate revenues in its projects and sales from several sole suppliers. Although there are only a limited number of manufacturers of those particular services and products, management believe that other suppliers could provide similar services and products on comparable terms without affecting operating results.
|
8
NOTE 2: UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Financial Statement preparation
These unaudited interim consolidated financial statements of the Company as of June 30, 2025 and for the six months then ended have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). They do not include all information and notes required by U.S. GAAP in the preparation of annual consolidated financial statements.
The accounting policies used in the preparation of the unaudited interim consolidated financial statements is the same as those described in the Company's audited consolidated financial statements prepared in accordance with U.S. GAAP for the year ended December 31, 2024.
The Company makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated interim financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
The Company believes all adjustments necessary for a fair statement of the results for the period presented have been made, and all such adjustments were of a normal recurring nature unless otherwise disclosed. The financial results for the period are not necessarily indicative of financial results for the full year.
These financial statements should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2024, and the accompanying notes. There have been no changes in the significant accounting policies from those disclosed in the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2024 included in the Company’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission on April 28, 2025.
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NOTE 3: INVENTORIES, NET
|
|
June 30,
2025
|
December 31,
2024
|
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$
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$
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Raw materials, parts and supplies
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Finished products
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As of June 30, 2025 and December 31, 2024, inventory is presented net of write-offs for slow inventory in the amount of approximately $2,532 and $2,532 , respectively.
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NOTE 4: OTHER INTANGIBLE ASSETS, NET
|
|
June 30,
2025
|
December 31,
2024
|
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$
|
$
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Customer relationship & Other
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IP & Technology
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Capitalized software development costs
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NOTE 5: COMMITMENTS AND CONTINGENT LIABILITIES – LITIGATION
|
We are party to legal proceedings in the normal course of our business. There are no material pending legal proceedings to which we are a party or of which our property is subject. Although the outcome of claims and lawsuits against us cannot be accurately predicted, we do not believe that any of the claims and lawsuits, will have a material adverse effect on our business, financial condition, results of operations or cash flows for any quarterly or annual period.
9
Exhibit 2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OPERATIONS
The following Management’s Discussion and Analysis of Results of Operations should be read together with our unaudited condensed interim consolidated financial statements and the related notes as of June 30, 2025,
which appear elsewhere in this Report on Form 6-K.
Cautionary Note Regarding Forward-Looking Statements
The discussion and analysis in this section contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act
of 1934, with respect to our business, financial condition and results of operations. Such forward-looking statements reflect our current views with respect to future events and financial results. Words such as “may,” “should,” “could,” “would,”
“predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar expressions, as well as statements in future tense, identify forward-looking statements. These include statements
regarding our earnings, projected growth and forecasts, and similar matters which are not historical facts. We remind readers that forward-looking statements are merely predictions and therefore are inherently subject to uncertainties and other
factors which could cause the actual future events or results to differ materially from those described in the forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not
rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i)
inability to realize benefits from acquisitions, (ii) our inability to manage our growth profitably, (iii) intense competition in our industry, (iv) acquisition of businesses disrupting our business and harming our financial condition and operations,
(v) the need to obtain additional financing , (vi) our ability to respond promptly and effectively to market changes, (vii) our ability to obtain and maintain contracts with governments, (viii) our dependence on third-party representatives to
generate revenues and supply components, (ix) unfavorable global economic conditions, (x) developments affecting international operations and foreign markets, (xi) breaches of network or information technology security, (xii) intellectual property
litigation, and (xiii) such other factors discussed throughout Item 3. D. Risk Factors of our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 28, 2025, and
in our other filings and submissions with the SEC. Any forward-looking statement made by us in this section is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to
publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Overview
Founded in 1988, we are a global provider of traditional and digital identity solutions, advanced IoT, and cyber security products and solutions to governments and private and public organizations worldwide. In this
Management’s Discussion and Analysis of Results of Operations all references to “SuperCom,” the “Company,” “we,” “us” or “our” are to SuperCom Ltd., a company organized under the laws of the State of Israel, and its subsidiaries, unless the context
otherwise provides.
We are comprised of three main Strategic Business Units(SBU): e-Gov, IoT and Connectivity (or “IoT”), and Cyber Security:
e-Gov
Through our proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance, and border control
services, we have helped governments and national agencies design and issue secured multi-identification, or Multi-ID, documents and robust digital identity solutions to their citizens, visitors, and Lands.
We have focused on expanding our activities in the traditional identification, or ID, and electronic identification, or e-Gov, market, including
the design, development, and marketing of identification technologies and solutions to governments in Europe, Asia, America, and Africa using our e-Government platforms. Our activities include: (i) utilizing paper secured by different levels of
security patterns (UV, holograms, etc.); and (ii) electronic identification secured by biometric data, principally in connection with the issuance of national Multi-ID documents (IDs, passports, driver’s licenses, vehicle permits, and visas, Secure
Land Certificated) border control applications and Land Information System (LIS).
IoT and Connectivity
IoT
Our IoT products and solutions reliably identify, track and monitor people or objects in real-time, enabling our customers to detect unauthorized
movement of people, vehicles, and other monitored objects. We provide an all-in-one field-proven IoT suite, accompanied by services specifically tailored to meet the requirements of IoT solutions. Our proprietary IoT suite of hybrid hardware,
connectivity and software components is the foundation of these solutions and services. Our IoT division has primarily focused on growing the following markets: (i) public safety, (ii) healthcare and homecare, (iii) Smart Cities, (iv) Smart Campus,
and (iv) transportation.
During 2006, we identified the growing electronic tracking and monitoring vertical markets for public safety, real time
healthcare and homecare, and transportation management. We have developed the PureRF Hybrid suit of wrist devices, connectivity, and controlling software, from 2012 we have developed the next generation IoT suite of devices, connectivity and
Monitoring software; the PureSecurity Hybrid Suite of wrist band, tags, beacons, PureCom, Pure Monitors, PureTrack and other components.
On January 1, 2016, we acquired Leaders in Community Alternatives, Inc., or LCA. LCA is a California-based, private criminal justice organization
providing community-based services and electronic monitoring programs to government agencies in the U.S. for more than 25 years. LCA offers a broad range of competitive solutions for governmental institutions across the
U.S. in addressing realignment strategies and plans.
Connectivity
In 2016, as part of our strategy to enhance and broaden our IoT connectivity products and solutions offerings for public safety, enterprises, hospitality, and smart
cities markets, on May 18, 2016, we acquired Alvarion Technologies Ltd. or Alvarion. Alvarion designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events that are both complete
and heterogeneous to ensure ease of use and optimize operational efficiency. Carriers, local governments and hospitality sectors worldwide deploy Alvarion’s intelligent wi-fi networks to enhance productivity and performance, as well as its legacy
backhaul services and products.
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Cyber Security
During 2015, we identified the cyber security market as a very fast-growing market where we believe that SuperCom has major advantages due to
synergic technologies and shared customer base to our e-Gov, IoT, and connectivity SBUs. In 2015, we acquired Prevision Ltd., or Prevision, a company with a strong presence in the market and a broad range of competitive and well- known cyber security
services. During the first quarter of 2016, we acquired Safend Ltd, or Safend, an international provider of cutting-edge endpoint data protection guarding against corporate data loss and theft through content discovery and inspection, encryption
methodologies, and comprehensive device and port control. Safend maps sensitive information and controls data flow through email, web, external devices, and additional channels.
Both acquisitions significantly expanded the breadth of our cyber security capabilities globally while providing us with outstanding market and
technological experts and over 3,000 customers in the United States, Europe, and Asia, and more than three million software license seats deployed by multinational enterprises, government agencies and small to mid-size companies around the globe,
together with leading data and cyber security platforms and technologies.
General
Our condensed interim consolidated financial statements appearing in this Report on Form 6-K are prepared in U.S. dollars and in accordance with generally accepted accounting principles in the United States (“U.S.
GAAP”). Transactions and balances originally denominated in dollars are presented at their original amounts. Transactions and balances in other currencies are re-measured into dollars in accordance with the principles set forth in Financial
Accounting Standards Board (“FASB”), Accounting Standards Codification, or ASC, Topic 830, “Foreign Currency Translation.” The majority of our sales are made outside Israel in U.S. dollars. In addition, substantial portions of our costs are
incurred in U.S. dollars. Since the U.S. dollar is the primary currency of the economic environment in which we and certain of our subsidiaries operate, the U.S. dollar is our functional and reporting currency and, accordingly, monetary accounts
maintained in currencies other than the U.S. dollar are re-measured using the foreign exchange rate at the balance sheet date. Operational accounts and non-monetary balance sheet accounts are measured and recorded at the exchange rate in effect at
the date of the transaction. The financial statements of certain subsidiaries, whose functional currency is not the U.S. dollar, have been translated into U.S. dollars. All balance sheet accounts have been translated using the exchange rates in
effect at the balance sheet date. Statement of Operations amounts have been translated using the average exchange rate for the period. The resulting translation adjustments are reported as a component of shareholders’ equity in accumulated other
comprehensive income (loss).
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Results of Operations
Revenues
Our revenues for the first six months of 2025 were $14.2 million compared to $14.4 million for the six months ended June 30, 2024. The
decrease in revenue was mainly due to completion of large parts of an European EM contract, offset by revenue from new contracts that have recently launched.
Cost of Sales
Our cost of sales for the first six months of 2025 decreased by 20% to $5.5 million from $6.9 million for the first six months of 2024.
This decrease in the cost of sales was primarily due to the change in revenue mix from various projects, which resulted in higher gross margin.
Gross Margin
Our gross margin increased for the first six months of 2025 to 61% compared to 52.3% for the first half of 2024.
The increase in gross margin was primarily due to the change in revenue mix, also reflecting various projects in later stages with higher
recurring revenues, which typically carry higher margins.
Expenses
Our operating expenses were $6.4 million for the first six months of 2025, same as $6.4 million for the first six months of 2024. The
components of operating expenses for the first half of 2025 reflected (i) a decrease of $0.1 million in research and development expenses, (ii) an increase of $0.1 million in sales and marketing expenses, (iii) an increase of $0.3 million in
general and administration expenses, and (iv)a decrease of $0.4 million in other operating expenses.
Financial Expenses, net
We had financial income of $3.0 million for the first half of 2025 compared to $1.5 million for the first half of 2024. The components of
financial income for the first half of 2025 reflected (i) foreign currency exchange gains of $0.21 million, (ii) interest on loans and credit facilities of $1.6 million, (iii) debt conversions, at a premium over fair market value of approximately
$4.2 million and (iv) interest income from deposits amounting to $0.24 million.
Income Tax Benefit
We recorded an income tax expense in the amount of $0 during the first half of 2025 compared to an income tax benefit in the amount of
$418 thousand during the first half of 2024.
Net Profit
As a result of the changes in our operational expenses and the financial expenses that we recorded in the first half of 2025, as
described above, our net profit in the first half of 2025 was $5.3 million compared to a net profit of $3.0 million in the first half of 2024.
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