Sativus Tech Corp. Reports Reduced Net Loss and Focus on Agricultural Technology Development

Sativus Tech Corp. reported its financial results for the second quarter of 2025, revealing a net loss of $422,000, a significant reduction from the $2.789 million loss recorded in the same period of 2024. The company’s operating loss also decreased to $213,000 from $241,000 year-over-year. This improvement in financial performance is attributed to a reduction in operating expenses, particularly in research and development, which fell to $122,000 from $198,000, and general and administrative expenses, which increased to $91,000 from $43,000.

The company’s total assets as of June 30, 2025, amounted to $616,000, up from $558,000 at the end of 2024. Current assets increased significantly, primarily due to a rise in cash and cash equivalents, which reached $241,000 compared to $96,000 at the end of the previous fiscal year. However, Sativus Tech continues to face challenges, with total liabilities increasing to $3.768 million from $3.228 million, leading to a shareholders' deficit of $3.232 million, up from $2.921 million.

Strategically, Sativus Tech is focusing on its subsidiary, Saffron-Tech Ltd., which is developing a fully automated system for growing saffron and other vegetables. The company plans to roll out a proof of concept in the coming months, aiming to provide high-quality, high-yield saffron production year-round. This initiative is part of a broader strategy to leverage in-house research and development in agricultural technology, particularly in the cultivation of exotic plants and mushrooms.

Operationally, Sativus Tech has maintained its employee headcount at 4,215,571 shares issued and outstanding, with no new shares issued during the quarter. The company is also in advanced stages of developing its automated growing technology, which is expected to yield ten times more than traditional methods while being environmentally friendly. Despite these advancements, the company reported a negative operating cash flow of $86,000 for the three months ended June 30, 2025, raising concerns about its ability to continue as a going concern without securing additional financing.

Looking ahead, Sativus Tech anticipates further losses as it continues to invest in the development of its business. The company acknowledges that its ability to meet obligations and repay liabilities is contingent upon obtaining necessary financing. As it progresses with its innovative agricultural technology, Sativus Tech remains focused on addressing its financial challenges while pursuing growth opportunities in the agricultural sector.