N2OFF Reports $5.8 Million Net Loss in Q2 2025, Revenue Increases 8%

N2OFF, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $5.8 million, compared to a loss of $1.6 million in the same period last year. The company's revenues increased by 8% to $66,000 for the six months ended June 30, 2025, up from $61,000 in the prior year. However, the company experienced a significant increase in operating expenses, particularly in general and administrative costs, which rose to $3.4 million from $1.5 million year-over-year. This increase was primarily driven by higher share-based compensation and legal expenses.

In terms of operational changes, N2OFF completed the sale of its subsidiary NTWO OFF Ltd. in April 2025, which has been classified as a discontinued operation. This divestiture is part of the company's strategic shift to focus on its core business areas, including eco-friendly solutions for the food industry and renewable energy projects. The company also formed a new subsidiary, NITO Renewable Energy, Inc., in February 2025, which is expected to enhance its presence in the renewable energy sector.

The company reported a significant increase in its cash position, with cash and cash equivalents rising to $3.1 million as of June 30, 2025, compared to $2.2 million at the end of the previous fiscal year. This increase was attributed to financing activities, including proceeds from a private investment in public equity (PIPE) agreement and a credit facility. N2OFF's total liabilities decreased to $2.2 million from $2.9 million, reflecting a reduction in current liabilities.

N2OFF's operational metrics indicate a focus on growth, with the company actively pursuing international expansion and partnerships in the renewable energy sector. The company has also been involved in various loan agreements to support its subsidiaries, including MitoCareX, which is in the process of becoming a wholly-owned subsidiary. The company anticipates that these strategic initiatives will position it for future growth, although it acknowledges the ongoing geopolitical risks in Israel, which could impact its operations.

Looking ahead, N2OFF's management expressed cautious optimism about its ability to secure additional financing to support its operations and growth initiatives. However, they also noted substantial doubt regarding the company's ability to continue as a going concern beyond the first quarter of 2026 without securing further capital. The company plans to continue exploring opportunities for equity financing and strategic partnerships to bolster its financial position.