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Research and development
expenses as a percentage of total revenues were approximately 192% and 172% for the three months ended March 31, 2019 and 2018,
respectively. The decrease was due primarily to the increase in sales as well as the increase in expenses described above.
Our research and development
expenses consist mainly of payroll expenses to employees involved in research and development activities, stock-based compensation
expenses, expenses related to subcontracting, patents application and registration, clinical trial and facilities expenses associated
with and allocated to research and development activities.
Selling and Marketing
Expenses
. For the three months ended March 31, 2019 and 2018, selling and marketing expenses were approximately $321,000 and
$229,000, respectively, an increase of approximately 40%, or $92,000, between the periods. The increase was mainly due to an increase
in our sales staff, sales consultants, and marketing activities .
Selling and marketing expenses
as a percentage of total revenues were approximately 406% and 290% for the three months ended March 31, 2019 and 2018, respectively.
The increase was due primarily to the increase in expenses described above partially offset by the increase in revenues.
Selling and marketing expenses
consist mainly of payroll expenses to direct sales and marketing employees, stock-based compensation expenses, travel expenses,
advertising and marketing expenses, rent and facilities expenses associated with and allocated to selling and marketing activities.
General and Administrative
Expenses
. For the three months ended March 31, 2019 and 2018, general and administrative expenses were approximately $1,884,000
and $480,000, respectively, an increase of approximately 293%, or $1,404,000, between the periods. The increase was mainly due
to an additional $1,300,000 of non-cash compensation relating to restricted shares and options issued to professional consultants
in 2019.
General and administrative
expenses as a percentage of total revenues were approximately 2,385% and 608% for the three months ended March 31, 2019 and 2018,
respectively. The decrease was due primarily to the increase in revenues described above offset somewhat by the decrease in expenses
described above.
Our general and administrative
expenses consist mainly of payroll expenses for management and administrative employees, share-based compensation expenses, accounting,
legal and facilities expenses associated with general and administrative activities and costs associated with being a publicly
traded company.
Financial Expenses,
net
. For the three months ended March 31, 2019 and 2018, financial expenses, net was approximately $32,000 compared to a $13,000,
respectively, an increase of approximately $45,000, between the periods. The large decrease in 2019 was derived primarily from
interest expense on the derivative liabilities.
Tax expenses.
For
the three months ended March 31, 2019 and 2018, tax expenses remained the same at approximately $12,000. The tax expense is computed
by multiplying income before taxes at our Israeli subsidiary by the appropriate tax rate.
Net loss.
Our
net loss decreased by approximately $1,559,000, or 198%, to approximately $2,348,000 for the three months ended March 31, 2019
from approximately $789,000 in the same period of 2018. The decrease in net loss resulted primarily from the factors described
above.
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