Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Readers are advised
to review the following discussion and analysis of our financial condition and results of operations together with our consolidated
financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the consolidated
financial statements and related notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2019.
Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information
with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties.
See “Cautionary Note Regarding Forward-Looking Statements”. You should review the “Risk Factors” section
of our Annual Report for the fiscal year ended December 31, 2019 for a discussion of important factors that could cause actual
results to differ materially from the results described in or implied by the forward-looking statements contained in the following
discussion and analysis.
The following financial
data in this narrative are expressed in thousands, except for stock and stock data or as otherwise noted.
We are a leading global
Digital Therapeutics, or DTx, company revolutionizing the way people manage their health across the chronic condition spectrum
to live a better and healthier life. By delivering personalized evidence-based interventions that are driven by data, high-quality
software, easy-to-use medical devices and coaching, we empower individuals to make healthy adjustments to their daily lifestyle
choices in a personalized way and improve their overall health. Our cross-functional team operates at the intersection of life
sciences, behavioral science and software technology to deliver highly engaging therapeutic interventions. The DarioTM Blood
Sugar Monitor is among the most downloaded healthcare apps, with 4.9/5.0 stars from 11,000+ reviews on the Apple App Store as of
June 2020. We are rapidly moving into new chronic conditions such as hypertension, using a performance-based approach to improve
the health of users managing chronic disease.
We attempt to drive
behavioral change by creating highly personalized, closed-loop interactions that support our customers, who become members of our
services, via connected FDA cleared monitoring devices, just-in-time health information and real-time coaching. This highly scalable
infrastructure results in members with significant improvement in their health conditions at a modest price-point. The Dario solution
is intended to stretch across various health conditions and ailments. We currently focus our efforts on diabetes and hypertension,
and we plan to expand our focus into additional chronic conditions during 2020, such as weight management.
Our solution goes beyond
being simply a device. We are a modular platform that allows for customized implementations by segment and within each segment.
Core components of our solution include:
|
·
|
Dario Smart Tools – member-facing devices and integrated smartphone application.
|
|
·
|
DarioEngage Platform – population management tool that enables scalable engagement and clinical support by coaches and clinicians, remotely and in real-time.
|
|
·
|
Dario Journey Engine – a software-based platform that enables cross-channel communication of highly personalized and deeply customized/configurable journeys for each user starting from member enrollment process and continuing through on-going engagement leading to successful maintenance of health gains.
|
We make our services available directly to consumers via online
marketplaces, including Amazon, Walmart, Best Buy and the Google and Apple app stores. In 2020, we plan to focus on expanding our
offering to include providers, payers, and employers. We believe that these represent significant growth opportunities for our
business.
We have designed our
DTx platform with a ‘user-first’ strategy, focusing on user’s needs first and foremost, along with user experience
and satisfaction. User satisfaction drives all company processes, including our technology design. This approach, which disrupts
the traditional approach among healthcare companies, has taken us to a place where MyDarioTM is loved by customers
in the diabetes arena. In order to obtain firsthand data and feedback from our users, we decided to launch our product directly
to our customers, and initially commenced sales in the United States in March 2016. This user-focused approach led us into
a continuous process of product upgrades and improvements in an agile, interactive way to achieve finetuned user satisfaction.
Our success is reinforced by the fact that most of our users choose to purchase our solution out of pocket.
We have designed our
DTx platform as an open platform that allows us to enable our partners to offer their customers a customized, evidence-based digital
therapy solution, which takes advantage of the real-time connectivity of our platform with its users. We believe that our data-evidenced
proof of the medical outcomes resulting from the use of our DTx platform represents an attractive return on investment model to
healthcare providers in the United States and other geographic regions.
In addition, we have
continued to carefully monitor the COVID-19 pandemic and its impact on our business. In that regard, we have continued to sell
our DarioTM Blood Sugar Monitor and have not experienced disruptions in our supply chains. With respect to our
DTx platform, we have observed that some of our business-to-business prospective partners have been addressing their business needs
as a result of the COVID-19 pandemic, which has resulted in a slowdown of negotiations and discussions with some of these potential
partners. In addition, we have also seen an increase in interest from other business-to-business prospective partners in our DTx
platform, as certain parties are seeking tele-health products.
We expect the significance
of the COVID-19 pandemic, including the extent of its effect on our financial and operational results, to be dictated by, among
other things, its duration, the success of efforts to contain it and the impact of actions taken in response. While we are not
able at this time to estimate the impact of the COVID-19 pandemic on our financial and operational results, it could be material.
According to a Business
Insider Intelligence report published in October 2019, DTx are a new class of treatments disrupting the entire healthcare
value chain with their promise to tackle chronic diseases, and which, according to estimates by Business Insider, represents up
to $3.3 trillion on chronic disease expenditure in 2018 in the United States alone. Digital therapeutics deliver evidence-based
therapies for an array of chronic conditions via software, like mobile health (mHealth) apps and can either replace or complement
existing drug treatments. According to a report released by the Rand Corporation, Sixty percent of the United States population
suffers from at least one chronic condition, and these diseases come with a hefty price tag, as exemplified by the Business Insider
report. DTx companies have shown early evidence of their treatments’ efficacy and ability to slash the costs associated with
chronic disease care, which is fueling the global DTx market to become a $9 billion opportunity by 2025 according to the Business
Insider Intelligence report.
Our principal operating
subsidiary, LabStyle Innovation Ltd., is an Israeli company with its headquarters in Caesarea, Israel. We were formed on August 11,
2011, as a Delaware corporation with the name LabStyle Innovations Corp. On July 28, 2016, we changed our name to DarioHealth
Corp.
Management believes
that the proceeds from the recent subscription agreement combined with our cash on hand are sufficient to meet our obligations
as they come due for at least a period of twelve months from the date of the issuance of these unaudited condensed consolidated
financial statements. As a result, the Company has resolved to remove the going concern note from its financial statements. There
are no assurances, however, that the Company will be able to obtain an adequate level of financial resources that are required
for the long-term development and commercialization of its product offering.
Critical Accounting Policies
Please see Note 2 of
Part I, Item 1 of this Quarterly Report on Form 10-Q for the summary of significant accounting policies. In addition,
reference is made to Part I, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operation of our Annual Report on Form 10-K for the year ended December 31, 2019 (filed on March 17, 2020) with
respect to our Critical Accounting Policies. There have been no other material changes to our critical accounting policies and
estimates since our Annual Report on Form 10-K for the year ended December 31, 2019.
Results of Operations
Comparison of the three and six months ended June 30,
2020 and 2019 (dollar amounts in thousands)
Revenues
Revenues for the three
and six months ended June 30, 2020, amounted to $1,787 and $3,454, respectively, compared to revenues of $1,651 and $3,893
during the three and six months ended June 30, 2019, representing an increase of 8.2% and a decrease of 11.3%, respectively.
The increase in revenues for the three months ended June 30, 2020, compared to the three months ended June 30, 2019,
is due to an increase in our direct to consumer (“D2C”) revenues in the second quarter of 2020. The decrease in revenues
for the six months ended June 30, 2020, compared to the six months ended June 30, 2019, is mainly as a result of a decrease
in our D2C revenues in the first quarter of 2020 compared to the first quarter of 2019.
Revenues were derived
mainly from the sales of Dario’s components, including the Dario Blood Glucose Monitoring System itself and our membership
offering through D2C acquisitions located mainly in the United States and Australia, through our on-line store and through distributors.
Cost of Revenues
During the three and
six months ended June 30, 2020, we recorded costs related to revenues in the amount of $1,151 and $2,039 respectively, compared
to recorded costs related to revenues of $1,325 and $3,009 during the three and six months ended June 30, 2019, representing
a decrease of 13.1% and 32.2%, respectively. The decrease in costs related to revenues in the three months ended June 30,
2020, compared to three months ended June 30, 2019, is mainly a result of a decrease in the sales of our products and a decrease
in production costs during that period. The decrease in costs related to revenues in the six months ended June 30, 2020, compared
to the six months ended June 30, 2019, is mainly a result of an increase in revenues from our services as percentage of revenues
during the first six months of 2020.
Cost of revenues consist mainly of cost of device production,
employees’ salaries and related overhead costs, depreciation of production line and related cost of equipment used in production,
hosting costs, shipping and handling costs and inventory write-downs.
Gross Profit
Gross profit for the
three and six months ended June 30, 2020, amounted to $636 (35.6% of revenues) and $1,415 (41.0% of revenues), respectively,
compared to $326 (19.7% of revenues) and $884 (22.7% of revenues) during the three and six months ended June 30, 2019. The
increase in gross profit for the three and six months ended June 30, 2020, compared to the three and six months ended June 30,
2019, is mainly as a result of an increase in revenues generated from our membership offering and a corresponding decrease in product
sales in the second quarter.
Research and Development Expenses
Our research and development
expenses decreased by $166, or 16.7% to $825 for the three months ended June 30, 2020, compared to $991 for the three months
ended June 30, 2019, and increased by $63, or 3.2% to $2,056 for the six months ended June 30, 2020 compared to $1,993
for the six months ended June 30, 2019. The second quarter decrease for the three months ended June 30, 2020, compared
to the three months ended June 30, 2019, was mainly due to a decrease in payroll and other research and development costs
relating primarily to product development, partially offset by an increase in stock-based compensation. The reason for the increase
for the six months ended June 30, 2020, compared to the six months ended June 30, 2019, was mainly due to increases in
payroll, payment in shares and stock-based compensation, partially offset by a decrease of other research and development costs
relating primarily to product development and clinical trials.
Research and development
expenses consist mainly of payroll expenses to employees involved in research and development activities, expenses related to our
Dario software application and related Dario Blood Glucose Monitoring System device, labor contractors and engineering expenses,
depreciation and maintenance fees related to equipment and software tools used in research and development, clinical trials performed
in the United States to satisfy the FDA product approval requirements and facilities expenses associated with and allocated to
research and development activities.
Sales and Marketing Expenses
Our sales and marketing
expenses decreased by $385, or 12.9% to $2,608 for the three months ended June 30, 2020, compared to $2,993 for the three
months ended June 30, 2019, and decreased by $240, or 3.5% to $6,699 for the six months ended June 30, 2020, compared
to $6,939 for the six months ended June 30, 2019. These decreases were mainly due to a decrease in digital marketing expenses
partially offset by an increase in salaries and equity-based compensation for the three and six months ended June 30, 2020
compared to the three and six months ended June 30, 2019. Our marketing expenses, excluding equity based compensation, for
the six months ended June 30, 2020 were $4,950 compared to $6,844 for the six months ended June 30, 2020, a decrease
of $1,894. This decrease is mainly the result of a reduction in our digital marketing activity.
Sales and marketing
expenses consist mainly of payroll expenses, online marketing campaigns of the Dario, trade show expenses, customer support expenses
and marketing consultants and subcontractors.
General and Administrative Expenses
Our general and administrative
expenses decreased by $378, or 22.2% to $1,326 for the three months ended June 30, 2020, compared to $1,704 for the three
months ended June 30, 2019, and increased by $4,220, or 157.6% to $6,897 for the six months ended June 30, 2020, compared
to $2,677 for the six months ended June 30, 2019. The second quarter decrease for the three months ended June 30, 2020,
compared to the three months ended June 30, 2019, was mainly due to a decrease in our equity based compensation. The increase
for the six months ended June 30, 2020, compared to the six months ended June 30, 2019, was mainly due to an increase
in our equity based compensation to $4,963 for the six months ended June 30, 2020, compared to $1,047 for the six months ended
June 30, 2019. Our general and administrative expenses, excluding equity based compensation, for the three months ended June 30,
2020 were $816 compared to $806 for the three months ended June 30, 2019, an increase of $10. Our general and administrative
expenses excluding equity-based compensation for the six months ended June 30, 2020 were $1,934 compared to $1,630 for the
six months ended June 30, 2019, an increase of $304. These increases are resulting mainly from an increase in consulting,
investor relations and insurance expenses.
Our general and administrative
expenses consist mainly of payroll and stock-based compensation expenses for management, employees, directors and consultants,
legal fees, directors’ and officers’ insurance, patent registration, expenses related to investor relations, as well
as our office rent and related expenses.
Financial Income (Expenses), net
Our financial income
for the three months ended June 30, 2020, was $117, representing an increase of 685.0%, compared to financial expenses of
$20 for the three months ended June 30, 2019. Our financial income for the six months ended June 30, 2020, was $339,
representing an increase of 1,127.0%, compared to finance expenses $33 for the six months ended June 30, 2019. The increases
in financial income for the three and six months ended June 30, 2020, as compared to the three and six months ended June 30,
2019, are mainly attributable to translation differences in foreign currency translation expenses.
Financial expenses
include mainly bank charges, interest income, lease liability translation differences and foreign currency translation differences.
Net loss
Net loss decreased
by $1,376, or 25.6%, to $4,006 for the three months ended June 30, 2020, compared to a net loss of $5,382 for the three months
ended June 30, 2019, and increased by $3,140, or 29.2%, to $13,898 for the six months ended June 30, 2020, compared to
$10,758 for the six months ended June 30, 2019.
Non-GAAP Financial Measures
The factors described above resulted in net loss of $13,898
and $10,758 for the six months ended June 30, 2020, and 2019, respectively.
To supplement our unaudited
condensed consolidated financial statements presented in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) within this Quarterly Report on Form 10-Q, management provides certain non-GAAP
financial measures (“NGFM”) of the Company’s financial results, including such amounts captioned: “net
loss before interest, taxes, depreciation, and amortization” or “EBITDA”, and “Non-GAAP Adjusted Loss”,
as presented herein below. Importantly, we note the NGFM measures captioned “EBITDA” and “Non-GAAP Adjusted Loss”
are not recognized terms under U.S. GAAP, and as such, they are not a substitute for, considered superior to, considered separately
from, nor as an alternative to, U.S. GAAP and /or the most directly comparable U.S. GAAP financial measures.
Such NGFM are presented
with the intent of providing greater transparency of information used by us in our financial performance analysis and operational
decision-making. Additionally, we believe these NGFM provide meaningful information to assist investors, shareholders, and other
readers of our unaudited condensed consolidated financial statements, in making comparisons to our historical financial results,
and analyzing the underlying financial results of our operations. The NGFM are provided to enhance readers’ overall understanding
of our current financial results and to provide further information to enhance the comparability of results between the current
year period and the prior year period.
We believe the NGFM
provide useful information by isolating certain expenses, gains, and losses, which are not necessarily indicative of our operating
financial results and business outlook. In this regard, the presentation of the NGFM herein below, is to help the reader of our
unaudited condensed consolidated financial statements to understand the effects of the non-cash impact on our (U.S. GAAP) unaudited
condensed consolidated statement of operations of the revaluation of the warrants and the expense related to stock-based compensation,
each as discussed herein above.
A reconciliation to
the most directly comparable U.S. GAAP measure to NGFM, as discussed above, is as follows:
|
|
Three Months Ended June 30,
(in thousands)
|
|
|
|
2020
|
|
|
2019
|
|
|
$ Change
|
|
Net Loss Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss – as reported
|
|
$
|
(4,006
|
)
|
|
$
|
(5,382
|
)
|
|
$
|
1,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
46
|
|
|
|
47
|
|
|
|
(1
|
)
|
Other financial (income) expenses, net
|
|
|
(117
|
)
|
|
|
20
|
|
|
|
(137
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
(4,077
|
)
|
|
|
(5,315
|
)
|
|
|
1,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation of warrants
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
1
|
|
Stock-based compensation expenses
|
|
|
822
|
|
|
|
1,053
|
|
|
|
(231
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted loss
|
|
$
|
(3,255
|
)
|
|
$
|
(4,263
|
)
|
|
$
|
1,008
|
|
|
|
Six Months Ended June 30,
(in thousands)
|
|
|
|
2020
|
|
|
2019
|
|
|
$ Change
|
|
Net Loss Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss – as reported
|
|
$
|
(13,898
|
)
|
|
$
|
(10,758
|
)
|
|
$
|
(3,140
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
92
|
|
|
|
93
|
|
|
|
(1
|
)
|
Other financial (income) expenses, net
|
|
|
(339
|
)
|
|
|
33
|
|
|
|
(372
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
(14,145
|
)
|
|
|
(10,632
|
)
|
|
|
(3,513
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses
|
|
|
7,178
|
|
|
|
1,310
|
|
|
|
5,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted loss
|
|
$
|
(6,967
|
)
|
|
$
|
(9,322
|
)
|
|
$
|
2,355
|
|
Liquidity and Capital Resources (amounts
in thousands except for share and share amounts)
As of June 30,
2020, we had approximately $13,182 in cash and cash equivalents compared to $20,395 at December 31, 2019.
We have experienced
cumulative losses of $126,104 from inception (August 11, 2011) through June 30, 2020 and have a stockholders’ equity
of $12,226 on June 30, 2020. In addition, we have not completed our efforts to establish a stable recurring source of revenues
sufficient to cover our operating costs and expect to continue to generate losses for the foreseeable future. However, we believe
that our sources of liquidity and capital resources will be sufficient to meet our business needs for at least the next 12 months.
Since inception, we
have financed our operations primarily through private placements and public offerings of our common stock and warrants to purchase
shares of our common stock, receiving aggregate net proceeds totaling $96,426 as of June 30, 2020.
On May 24, 2019,
we closed on a firm commitment, underwritten public offering consisting of 242,768 shares of common stock and pre-funded warrants
to purchase 358,779 shares of our common stock, pursuant to an underwriting agreement entered into with Craig-Hallum Capital Group
LLC, as representative of the underwriters. The shares of common stock were sold at a public offering price of $12.00 per share
and the pre-funded warrants were sold at a public offering price of $11.998 per pre-funded warrant, for aggregate gross proceeds
of approximately $7,218.
On November 27,
2019, we entered into subscription agreements with accredited investors relating to an offering with respect to the sale of an
aggregate of 8,361 shares of newly designated Series A Convertible Preferred Stock and an aggregate of 5,200 shares of newly
designated Series A-1 Convertible Preferred Stock, at a purchase price of $1,000 for each share of Series A Preferred
Stock and Series A-1 Preferred Stock, for aggregate gross proceeds to the Company of $13,561. The initial conversion price
for the Series A and Series A-1 Convertible Preferred Stock to Common Stock is $4.05. The initial closing of the offering
took place on November 27, 2019. The Series A and Series A-1 Convertible Preferred Stock issued are convertible
into up to 3,349,567 shares of Common Stock. On December 3, 2019, we entered into subscription agreements with accredited
investors relating to an offering and the sale of an aggregate of 1,915 shares of newly designated Series A-2 Convertible
Preferred Stock, at a purchase price of $1,000 for each share, for aggregate gross proceeds to the Company of $1,915. The initial
conversion price for the Series A-2 Convertible Preferred Stock to Common Stock is $4.28. The Series A-2 Convertible
Preferred Stock issued are convertible into up to 448,110 shares of Common Stock. On December 4, 2019, we into subscription
agreements with accredited investors relating to an offering and the sale of an aggregate of 3,808 shares of newly designated
Series A-3 Convertible Preferred Stock, at a purchase price of $1,000 for each share, for aggregate gross proceeds to the
Company of $3,808.The initial conversion price for the Series A-3 Convertible Preferred Stock to Common Stock is $4.98. The
Series A-3 Convertible Preferred Stock issued are convertible into up to 765,408 shares of Common Stock. On December 5,
2019, we entered into subscription agreements with accredited investors relating to an offering and the sale of an aggregate of
745 shares of newly designated Series A-4 Convertible Preferred Stock, at a purchase price of $1,000 for each share, for
aggregate gross proceeds to the Company of $745.The initial conversion price for the Series A-4 Convertible Preferred Stock
to Common Stock is $5.90. The Series A-4 Convertible Preferred Stock issued are convertible into up to 126,650 shares of
Common Stock. On December 19, 2019, we entered into subscription agreements with accredited investors relating to an offering
and the sale of an aggregate of 1,346 shares of newly designated Series A-3 Convertible Preferred Stock, at a purchase price
of $100 for each share, for aggregate gross proceeds to the Company of $1,346. The initial conversion price for the Series A-3
Convertible Preferred Stock to Common Stock is $4.98. The Series A-3 Convertible Preferred Stock issued are convertible into
up to 270,546 shares of Common Stock. The total aggregate gross proceeds of the offering described above, together with gross
proceeds from the closing of the offering of Series A Convertible Preferred Stock, Series A-1 Convertible Preferred
Stock, Series A-2 Convertible Preferred Stock, Series A-3 Convertible Preferred Stock and Series A-4 Convertible
Preferred Stock was $21,375, and the total amount of Common Stock issuable upon conversion of all the shares of Convertible Preferred
Stock is up to 4,960,281 shares of Common Stock. As of August 7, 2020, certain Convertible Preferred Stock holders converted 4,602
shares of various classes of the Company’s A Preferred Stock to 1,047,660 shares of Common Stock.
On July 28, 2020, we
entered into subscription agreements with accredited investors relating to an offering with respect to the sale of an aggregate
of (i) 2,969,266 shares of our common stock, at a purchase price of $7.47 per Share, and (ii) pre-funded warrants to purchase 824,689
shares of common stock, at a purchase price of $7.4699 per Pre-Funded Warrant. In addition, on July 30, 2020, we entered into a
subscription agreement with an accredited investor for the purchase of 31,486 shares of our common stock at a purchase price per
share of $7.94 per Share. The aggregate gross proceeds were approximately $28,591.
Management believes
that the proceeds from the recent subscription agreement combined with our cash on hand are sufficient to meet our obligations
as they come due for at least a period of twelve months from the date of the issuance of these unaudited condensed consolidated
financial statements. As a result, the Company has resolved to remove the going concern note from its financial statements. There
are no assurances, however, that the Company will be able to obtain an adequate level of financial resources that are required
for the long-term development and commercialization of its product offering.
As such, we have a
significant present need for capital. If we are unable to scale up our commercial launch of Dario or meet our commercial sales
targets (or if we are unable to generate any revenue at all), and if we are unable to obtain additional capital resources in the
near term, we may be unable to continue activities absent material alterations in our business plans and our business might fail.
Additionally, readers
are advised that available resources may be consumed more rapidly than currently anticipated, resulting in the need for additional
funding sooner than expected. Should this occur, we will need to seek additional capital earlier than anticipated in order to fund
(1) further development and, if needed (2) our efforts to obtain regulatory clearances or approvals necessary to be able
to commercially launch Dario, DarioEngage and Dario Intelligence, (3) expenses which will be required in order to expand manufacturing
of our products, (4) sales and marketing efforts and (5) general working capital. Such funding may be unavailable to
us on acceptable terms, or at all. Our failure to obtain such funding when needed could create a negative impact on our stock price
or could potentially lead to the failure of our company. This would particularly be the case if we are unable to commercially distribute
our products and services in the jurisdictions and in the timeframes we expect.
Cash Flows (dollar amounts in thousands)
The following table
sets forth selected cash flow information for the periods indicated:
|
|
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
$
|
|
|
$
|
|
Cash used in operating activities:
|
|
|
(7,184
|
)
|
|
|
(9,491
|
)
|
Cash used in investing activities:
|
|
|
(43
|
)
|
|
|
(72
|
)
|
Cash provided by financing activities:
|
|
|
-
|
|
|
|
6,558
|
|
|
|
|
(7,227
|
)
|
|
|
(3,005
|
)
|
Net cash used in operating activities
Net cash used in operating
activities was $7,184 for the six months ended June 30, 2020 a decrease of 24% compared to $9,491 used in operations for the
same period in 2019. Cash used in operations decreased mainly due to the decrease in our digital marketing expenses.
Net cash used in investing activities
Net cash used for investing
activities was $43 for the six months ended June 30, 2020, a decrease of 40% compared to cash derived from investing activities
of $72 for the same period in 2019. Cash used for investing activities decreased mainly due to the decrease in purchase of property
and equipment.
Net cash provided by financing
activities
Net cash provided by
financing activities was $0 for the six months ended June 30, 2020, a decrease of 100% compared to $6,558 for the same period
in 2019. This decrease was due to no funds being raised during the six months ended June 30, 2020.
Off-Balance Sheet Arrangements
As of June 30,
2020, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4) of Regulation S-K.