Dror Ortho-Design Reports $5.8 Million Net Loss and Financial Challenges in 2024

Dror Ortho-Design, Inc. (formerly Novint Technologies, Inc.) reported significant financial challenges in its recent 10-K filing for the fiscal year ending December 31, 2024. The company incurred a net loss of approximately $5.8 million, an increase from a loss of $3.6 million in the previous year. Total cash reserves stood at about $549,000, with a working capital deficit of approximately $268,000. The company has not generated any revenue to date and anticipates continued operating losses as it develops its proprietary orthodontic platform, ZSmile, which is designed to offer a less intrusive alternative to traditional aligners.

The filing highlighted a 45% increase in research and development expenses, totaling $1.54 million, primarily due to increased consulting activities and salaries. General and administrative expenses also rose by 35% to $1.44 million, driven by professional fees related to public company compliance following the recent share exchange. The company’s share-based compensation expenses remained relatively stable at $2.25 million. Notably, Dror reported a significant decline in other income, which shifted from a gain of $810,779 in 2023 to an expense of $551,989 in 2024, largely due to liquidated damages accrual and foreign exchange losses.

Strategically, Dror Ortho-Design underwent a significant transformation in 2023, completing a share exchange with Dror Ortho-Design Ltd. This transaction resulted in a new management team and a rebranding of the company. The ZSmile platform, which utilizes a single smart aligner to correct teeth using pulsating air, is currently in development and awaiting FDA clearance. The company plans to invest approximately $2.5 million over the next 18 months in software and hardware development, regulatory approvals, and intellectual property protection.

Operationally, Dror has not yet established a customer base, as it is still in the development stage. The company aims to market its platform in various regions, including the U.S., Israel, and Europe, but faces competition from established players in the orthodontic market. As of the end of 2024, Dror employed four individuals, reflecting its early-stage status. The company’s future success hinges on the acceptance of its teledentistry model and the ability to secure necessary regulatory approvals.

Looking ahead, Dror Ortho-Design faces substantial uncertainty regarding its ability to continue as a going concern. The company is actively exploring various financing strategies to secure additional capital, which is critical for sustaining operations and advancing product development. However, there is no assurance that it will be able to raise the necessary funds or achieve profitability in the foreseeable future. The filing underscores the risks associated with its business model, including reliance on the successful development and market acceptance of its innovative orthodontic solutions.