Research and development expenses consist mainly of payroll expenses to employees involved in research and development activities, expenses related to our Dario, Upright and WayForward software application and related devices, labor contractors and engineering expenses, depreciation and maintenance fees related to equipment and software tools used in research and development, Dario’s 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 increased by $7,040, or 270%, to $9,648 for the three months ended June 30, 2021, compared to $2,608 for the three months ended June 30, 2020, and increased by $10,081, or 150%, to $16,780 for the six months ended June 30, 2021, compared to $6,699 for the six months ended June 30, 2020. These increases were mainly due to increases in our stock-based compensation, payroll related, digital marketing and the consolidation of Upright and WayForward during the six months ended June 30, 2021. Our sales and marketing expenses, excluding stock-based compensation and depreciation, for the six months ended June 30, 2021 were $14,541 compared to $4,934 for the six months ended June 30, 2020, an increase of $9,607.
Sales and marketing expenses consist mainly of payroll expenses, online marketing campaigns of the Dario service offering, trade show expenses, customer support expenses and marketing consultants and subcontractors.
General and Administrative Expenses
Our general and administrative expenses increased by $4,795, or 362%, to $6,121 for the three months ended June 30, 2021, compared to $1,326 for the three months ended June 30, 2020, and increased by $4,845, or 70% to $11,742 for the six months ended June 30, 2021, compared to $6,897 for the six months ended June 30, 2020. This increase was mainly due to increases in our stock-based compensation, investor relations, insurance expenses and the consolidation of Upright and WayForward during the six months ended June 30, 2021. Our general and administrative expenses, excluding stock-based compensation and depreciation, for the six months ended June 30, 2021 were $4,251 compared to $1,928 for the six months ended June 30, 2020, an increase of $2,323.
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, net for the three months ended June 30, 2021, was $238, representing an increase of 103%, compared to financial income of $117 for the three months ended June 30, 2020. Our financial expenses, net for the six months ended June 30, 2021, were $401, representing decrease of 218%, compared to financial income of $339 for the six months ended June 30, 2020. The changes in our financial income 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 $13,759, or 343.5%, to $17,765 for the three months ended June 30, 2021, compared to a net loss of $4,006 for the three months ended June 30, 2020, and increased by $18,833, or 135.5%, to $32,731 for the six months ended June 30, 2021, compared to a net loss of $13,898 for the six months ended June 30, 2020.
The increase in net loss for the three and six months ended June 30, 2021, compared to the three and six months ended June 30, 2020, was mainly due to the increase in our operating expenses and the consolidation of Upright and WayForward.