Dror Ortho-Design Reports Reduced Net Loss and Decreased Operating Expenses for Q1 2025

Dror Ortho-Design, Inc. reported a net loss of $576,123 for the three months ended March 31, 2025, a significant reduction from the $1,308,463 loss recorded during the same period in 2024. The company's total operating expenses decreased to $576,426, down from $1,296,418 in the prior year, primarily due to reduced research and development costs and lower share-based compensation expenses. Research and development expenses fell by 36% to $239,604, while general and administrative expenses decreased by 19% to $313,629. The company’s financial income improved to $303, compared to a loss of $12,045 in the previous year, reflecting favorable exchange rate differences.

In terms of financial position, Dror Ortho-Design's total assets decreased to $443,290 as of March 31, 2025, from $662,725 at the end of 2024. Current liabilities increased significantly to $1,230,642, up from $906,738, largely due to the addition of $300,000 in notes payable from bridge loans received during the quarter. The company’s stockholders’ deficit widened to $920,924, compared to $367,994 at the end of the previous fiscal year, driven by the accumulated deficit which reached $20,082,779.

Strategically, Dror Ortho-Design has undergone significant organizational changes following its recent share exchange with Dror Ortho-Design, Ltd. This transaction, completed on August 14, 2023, resulted in a new board of directors and a shift in focus towards developing an innovative orthodontic alignment platform. The company is currently preparing to apply for FDA clearance for its updated platform, which utilizes a proprietary AI-based technology designed to improve the orthodontic treatment process.

Operationally, the company has not yet generated revenue and continues to rely on external financing to support its development efforts. As of March 31, 2025, Dror Ortho-Design had a cash balance of $349,851, down from $549,444 at the end of 2024. The company plans to spend approximately $2.5 million over the next 18 months on software and hardware development, regulatory approvals, and intellectual property protection. The management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for additional capital to fund ongoing operations and development.

Looking ahead, Dror Ortho-Design's future operations will depend on the successful development and market acceptance of its orthodontic platform, as well as its ability to secure additional funding. The company is actively exploring fundraising opportunities to ensure it can sustain its operations and achieve its strategic objectives. The management remains cautious about the potential challenges posed by competition and regulatory requirements in the orthodontic market.