Sales and marketing expenses consist mainly of payroll expenses, online marketing campaigns of our service offering, and other costs associated with sales and marketing activities, as well as trade show expenses, customer support expenses and marketing consultants and subcontractors.
General and Administrative Expenses
Our general and administrative expenses decreased by $1,226, or 21.8%, to $4,395 for the three months ended March 31, 2022, compared to $5,621 for the three months ended March 31, 2021. This decrease was mainly due to decrease in consulting expenses during the three months ended March 31, 2022. Our general and administrative expenses, excluding stock-based compensation, depreciation and earn-out remeasurement for the three months ended March 31, 2022 were $2,552 compared to $2,260 for the three months ended March 31, 2021, an increase of $292.
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 Expenses, net
Our financial expenses, net for the three months ended March 31, 2022, were $44, compared to financial expenses of $639 for the three months ended March 31, 2021. The changes in our financial expenses were mainly due to foreign currency translation differences.
Financial (income) expenses, net mainly include bank charges, interest income, lease liability and foreign currency translation differences.
Net loss
Net loss increased by $950, or 6.35%, to $15,916 for the three months ended March 31, 2022, compared to a net loss of $14,966 for the three months ended March 31, 2021.
The increase in net loss for the three months ended March 31, 2022, compared to the three months ended March 31, 2021, was mainly due to the increase in our operating expenses.
The factors described above resulted in net loss attributable to common stockholders for the three months ended March 31, 2022, amounted to $16,367, compared to net loss attributable to common stockholders of $15,510 for the three months ended March 31, 2021.
Non-GAAP Financial Measures
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.