Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  OTC Bulletin Board - Other OTC  >  TechCare Corp    TECR

TECHCARE CORP

(TECR)
SummaryQuotesChartsNewsCompany 
News SummaryMost relevantAll newsOfficial PublicationsSector news

TECHCARE : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/13/2019 | 04:09pm EDT

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws, and is subject to the safe-harbor created by such Act and laws. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other variations thereon or comparable terminology. The statements herein and their implications are merely predictions and therefore inherently subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance levels of activity, or our achievements, or industry results to be materially different from those contemplated by the forward-looking statements. Such forward-looking statements appear in this Item 2 - "Management's Discussion and Analysis of Financial Condition and Results of Operations," and may appear elsewhere in this Quarterly Report on Form 10-Q and include, but are not limited to, statements regarding the following:



       ?   the prospects of signing agreements with distributors in Europe and the
           timeline within which that may occur;

       ?   our intention to expand our sales points in Israel;

       ?   our plan to execute our strategy;

       ?   our intention to sell our products in additional pharmacies and various
           online outlets and the timeline within which that may occur;

       ?   our expectations regarding our short- and long-term capital
           requirements;

       ?   our outlook for the coming months and future periods, including but not
           limited to our expectations regarding future revenue and expenses;

       ?   our product development and distribution plans, including those for
           Novokid® and Shine;

       ?   our marketing plans, including timing and regions for marketing our
           products;

       ?   our ability and the effects, if any, of a manufacture cost reduction
           program;

       ?   achieving regulatory approvals;

       ?   the proposed joint venture of a Chinese entity in accordance with a
           joint venture agreement;

       ?   our outlook for the coming months and future periods, including but not
           limited to our expectations regarding future revenue and expenses; and

       ?   information with respect to any other plans and strategies for our
           business.



Our business and operations are subject to substantial risks, which increase the uncertainty inherent in the forward-looking statements contained in this report.



  14






In addition, historic results of scientific research, clinical and preclinical trials do not guarantee that the conclusions of future research or trials would not suggest different conclusions. Also, historic results referred to in this periodic report would be interpreted differently in light of additional research, clinical and preclinical trials results. Except as required by law, we undertake no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Further information on potential factors that could affect our business is described under the heading "Risk Factors" in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, or the 2018 Annual Report. Readers are also urged to carefully review and consider the various disclosures we have made in that report.

As used in this quarterly report, the terms "we", "us", "our", the "Company" and "TechCare" mean TechCare Corp. and our wholly owned subsidiary, Novomic Ltd., unless otherwise indicated or as otherwise required by the context.

Overview and Recent Developments

We are a technology company engaged in the design, development and commercialization of a unique delivery platform utilizing vaporization of various natural compounds for multiple health, beauty and wellness applications. Our delivery platform is proprietary and patented.

Our current product offering includes Novokid® - an innovative home use device which vaporizes a natural, plant-based, pesticides, and silicone-free compound that effectively treats head lice and eggs. Following our soft launch of Novokid® in the Netherlands, we expanded our distribution network and launched Novokid in Israel during late May 2018 through Super Pharm, Israel's largest and leading drugstore chain. The launch was accompanied by a radio and digital brand awareness and marketing campaign and supported by Meditrend, our Israeli distributor, specializing in health and wellness products while representing leading brands.

We intend to expand our sales points in Israel and began selling our products in additional pharmacies and various online outlets during 2019. As we remain focused on increasing our global footprint and expanding our distribution network, we showcased Novokid® and met potential distributors and partners at CPhI Worldwide, a renowned and leading pharma tradeshow held in Madrid during October 2018.

We believe that we will need to raise up to $2,000 thousand during the next 12 months in order to successfully implement our business plan, of which there can be no assurance. Failure to obtain the necessary capital at acceptable terms, if at all, when needed, may force us to delay, limit, or terminate our product development efforts and adversely effect our ability to secure regulatory approvals and would adversely impact our planned research and development efforts in connection with our future products, which may make it more difficult for us to attain profitability.



Our Treatment Solutions


Novokid® - Natural, Plant-based and Effective Lice Treatment

Parents and children exposed to head lice are now forced to use standard over-the-counter, or OTC, treatments that are toxic, often ineffective, time consuming and expensive. According to the Journal of Medical Entomology, 98% of lice have developed resistance to existing treatments in the US and they are now referred to as "super-lice". Most current treatments contain pesticides, alcohol or silicone, which are all associated with a wide variety of hazardous side effects.

Novokid® is a non-pesticide, natural, plant-based and eco-friendly solution that eliminates lice and super lice with a 10 minute dry treatment. This compares with current treatments that require 20-40 minutes of shampooing and combing. Our treatment is fast, dry, clean, and easily administered at home or on the go. Novokid® can also be used as a maintenance treatment if used regularly.



  15






Shine - Natural Haircare rejuvenation

Shine uses a patented vaporization process and formulation to clean, treat and improve the appearance of the hair and scalp. In addition to removing the residue, the treatments balance the hair's pH levels, add body and shine, define curls, and strengthen and protect hair from further damage. We believe that the Shine treatment is user friendly, requiring the user to connect the Using Shine capsule to a designated tube, place the attached cap on their head and sit for a 10-minute treatment. There is no need to rinse or shampoo following the treatment. The treatment is expected to cleanse the scalp and leave the hair shiny and manageable.




Recent Developments and Plans



Our current and future products are all based on the vaporization platform, which was developed over a period of seven years. Since January 1, 2018, we have achieved the following:

? launched Novokid® in Israel during late May 2018 through Super Pharm, Israel's

largest and leading drugstore chain, accompanied by a radio and digital brand

awareness and marketing campaign;

? expanded our sales points in Israel and penetrated to additional pharmacies;

? contracted and setup production facilities in China and Israel through

sub-contractors;

? showcased Novokid® in CPhI Madrid, the world's leading pharma tradeshow, held

in Madrid, Spain, during October 2018;

? entered into a joint venture agreement with a Chinese partner for the formation

of a Chinese joint venture intended to focus on the development of

comprehensive and broad range of health, wellness, beauty and home products for

customers by utilizing our patented technology of vaporization of natural and

plant-based compounds;

? launched Novokid® on Amazon.co.uk during August 2019;

? obtained regulatory approval and registration of Shine, as a cosmetic product,

in the United States.

? fine-tuned the Shine formulation for the base capsule product; and

? kicked-off the development for new formulations to create additional capsule

lines for the Shine product.

During the next 12-18 months, we plan to focus our efforts on the following:




Novokid®:



  ? obtain FDA approval for Novokid, as a cosmetic product; and

  ? prepare and implement a manufacture cost reduction program, allowing us to
    reduce the manufacturing and procurement costs for our Novokid® product.




Shine:



  ? develop new capsules for personalized treatment, such as dry and curly hair.




Other:



  ? define the joint venture work plan relating to the Chinese joint venture;

  ? transitioning its focus to the sale of products online, as opposed to
    distribution arrangements; and

  ? explore new ventures to be aligned with the Company's current business model
    and its operations.




  16






We may be required to obtain additional regulatory approvals for our head lice treatment platform and any future products. If unable to receive regulatory approval or commercialize our product candidates, our business will be adversely affected. CE approval, which was already obtained for our Novokid® product, is required for the marketing, distributing and sale of our products in the European Union, whereas FDA approval is required for such marketing, distributing and sale in the United States. In the event that our products are to be sold in certain territories requiring additional regulatory approvals, such approvals will need to be obtained by us or by our distributors.

In addition, in January 2019, we entered into a joint venture agreement with a Chinese partner for the formation of a Chinese joint venture intended to focus on the development of comprehensive and broad range of health, wellness, beauty and home products for customers by utilizing our patented technology of vaporization of natural and plant-based compounds. The joint venture intends to sell its products in the Greater China region, including mainland China, Hong Kong, Macao, and Taiwan, directly or through others. We are currently working with our Chinese Partner on the formation of the Chinese joint venture entity.

On March 13, 2019, we issued and sold to ICB Biotechnology Investments Ltd. ("ICB") 957,854 shares of our common for a price per share of $0.261, for aggregate consideration of $250,000. In accordance with the terms of the subscription agreement, upon the formation of a joint venture with China-Israel Biological Technology Co. Ltd., ("CIBD") the parent company of ICB, and the transfer of the relevant intellectual property rights to the joint venture, we will issue and sell to ICB an additional 957,854 Shares for an additional investment amount of $250,000 (the "Additional Investment"). In addition, subject to the consummation of the Additional Investment, we will grant ICB an option to purchase up to additional 833,333 shares of our common stock at a price per share of $0.60, for aggregate consideration of up to $1,000,000. To date, the Company has met all of the milestones required for the closing of the Additional Investment. Currently, the Company and ICB are in negotiations with respect to the Additional Investment and there is no guarantee that the Company will be able to close on the Additional Investment.

On April 28, 2019, we entered into a form of Securities Purchase Agreement (the "Securities Purchase Agreement") with each of Y.M.Y. Industry Ltd., Traistman Radziejewski Fundacja Ltd. and Microdel Ltd. relating to an offering of an aggregate of 1,229,508 shares of our common stock at a purchase price of $0.183 per share for aggregate gross proceeds of approximately $225,000. In addition, we granted the investors an option, for a period of twelve months, to purchase up to an additional 375,001 shares of common stock at a price per share of $0.60, for additional aggregate consideration of $225,000. The closing of the offering took place on April 29, 2019. The option was classified as a derivative financial liability and are re-measured each reporting date, with changes in fair value recognized in finance expense (income), net, since the exercise price of the warrants is denominated in USD and the functional currency of the Company is the NIS.

Results of Operations during the three and six months ended June 30, 2019 as compared to the three and six months ended June 30, 2018



Revenues


During the three and six months ended June 30, 2019, we generated $27 and $85 thousand in revenues, compared to $71 and $98 thousand in revenues in the three and six months ended June 30, 2018. The decrease is mainly attributable to a decrease in the sales of for our product.



Gross Profit


Our gross profit (Loss) during the three and six months ended June 30, 2019, were ($36) and ($33) thousand, compared to $24 and $41 thousand in the three and six months ended June 30, 2018. The decrease is mainly attributable to decrease in the sales volume and decrease in inventory value.

Research and Development Expenses

Our research and development expenses during the three and six months ended June 30, 2019 were $39 thousand and $80 thousand and all expenses resulted from ongoing research and development expenses.

Our research and development expenses during the three and six months ended June 30, 2018 were $17 thousand and $48 thousand. The increase is mainly attributable to expenses related to the new expected Shine product.



  17






Marketing, General and Administrative Expenses

Our marketing, general and administrative expenses during the three and six months ended June 30, 2019 were $376 thousand and $811 thousand and were comprised mainly of $581 thousand in payroll and payments to consultants for the six months ended June 30, 2019. Our marketing, general and administrative expenses during the three and six months ended June 30, 2018 were $503 thousand and $967 thousand and were comprised mainly of $571 thousand in payroll and payments to consultants for the six months ended June 30, 2018. The decrease in our marketing, general and administrative expenses is mainly attributable to a decrease in marketing expenses, professional services and travel abroad expenses.




Net Loss



During the three and six months ended June 30, 2019 we incurred a net loss of $458 thousand and $937 thousand. During the three and six months ended June 30, 2018, we incurred a net loss of $495 thousand and $859 thousand. The increase in net loss is mainly attributable to a decrease in gross margins.

Liquidity and Capital Resources

Our balance sheet as of June 30, 2019 reflects total assets of $780 thousand, consisting mainly of cash and cash equivalents in the amount of approximately $231 thousand, inventory of approximately $204 thousand and property and equipment, net of approximately $160 thousand. As of December 31, 2018, our balance sheet reflects total assets of approximately $1,131 thousand consisting mainly of cash and cash equivalents in the amount of approximately $475 thousand, inventory in the amount of approximately $249 thousand, other receivables of approximately $177 thousand and property and equipment net, of approximately $161 thousand.

As of June 30, 2019, we had total current liabilities of approximately $276 thousand, consisting mainly of accounts payable and accrued expenses of approximately $167 thousand and a note payable of approximately $80 thousand. As of December 31, 2018, we had total current liabilities of approximately $385 thousand consisting mainly of accounts payable and accrued expenses of approximately $231 thousand and a note payable of approximately $80 thousand.

As of June 30, 2019, we had positive working capital of approximately $218 thousand, compared to positive working capital of approximately $573 thousand at December 31, 2018. The working capital has been sufficient to sustain our operations to date, although there is substantial doubt about our ability to continue as going concern. Our total liabilities as of June 30, 2019 were approximately $364 thousand, compared to approximately $390 thousand at December 31, 2018.

During the six months ended June 30, 2019, we used approximately $690 thousand of cash in our operating activities. This resulted mainly from an overall net loss of approximately $937 thousand, a decrease in other receivables of approximately $132 thousand and a decrease in inventory of approximately $57 thousand. During the six months ended June 30, 2018, we used approximately $1,049 thousand of cash in our operating activities. This resulted mainly from an overall net loss of approximately $859 thousand, an increase in accounts payable and accrued expenses of approximately $116 thousand and an increase in inventory of approximately $99 thousand.

During the six months ended June 30, 2019, we used approximately $4 thousand in our investing activities, as compared to approximately $32 thousand in the same period in the prior year.

During the six months ended June 30, 2019, our financing activities provided us with $457 thousand, as compared to $942 thousand in the same period in the prior year, through the issuance of common stock.

On March 13, 2019, we issued and sold to ICB 957,854 shares of our common stock at a price per share of $0.261, for aggregate consideration of $250 thousand. In addition, in April 2019, the Company entered into subscription agreements with several investors, consisting of our officers and directors, pursuant to which we issued 1,229,508 shares of common stock for aggregate consideration of $225 thousand. The Company recorded derivative liability in its books.

While management believes the Company will be successful in its current and planned operating activities, there can be no assurance that the Company will be successful in the achievement of sales of its products that will generate sufficient revenues to earn a profit and sustain the operations of the Company. Our ability to create sufficient working capital to sustain us over the next twelve-month period and beyond is dependent on our ability to raise additional funds through the issuance of equity or debt instrument. There can be no assurance that sufficient capital will be available to us. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.



  18







Going Concern Consideration


As a result of the above, there is substantial doubt about our ability to continue as a going concern. Our financial statements contain additional note disclosures with respect to this matter, but no accounting adjustments that relate to this matter.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Critical Accounting Policies

Please see Note 1B of Part I, Item I of this Quarterly Report on Form 10-Q for the summary of significant accounting policies. In addition, reference is made to Note 1B in the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (filed on March 28, 2019) with respect to our Critical Accounting Policies.

All other material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended December 31, 2018 are recorded in Note 1b of this quarterly report

© Edgar Online, source Glimpses

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TECHCARE CORP
08/13TECHCARE : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESUL..
AQ
07/25TECHCARE CORP. : Change in Directors or Principal Officers (form 8-K)
AQ
05/20TECHCARE : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESUL..
AQ
05/14TECHCARE : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESUL..
AQ
04/30TECHCARE CORP. : Entry into a Material Definitive Agreement, Unregistered Sale o..
AQ
04/29TECHCARE CORP. : Changes in Registrant's Certifying Accountant, Financial Statem..
AQ
03/28TECHCARE : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESUL..
AQ
03/18TECHCARE CORP. : Other Events (form 8-K)
AQ
02/19TECHCARE CORP. : Change in Directors or Principal Officers (form 8-K)
AQ
01/28TECHCARE CORP. : Unregistered Sale of Equity Securities (form 8-K)
AQ
More news
Chart TECHCARE CORP
Duration : Period :
TechCare Corp Technical Analysis Chart | MarketScreener
Full-screen chart
Managers
NameTitle
Doron Biran Chief Executive Officer
Zvika Yemini Chairman
Hagit Cohen Operations Manager
Tali Dinar Chief Financial Officer
Yehuda Einav Vice President-Research & Development
Sector and Competitors
1st jan.Capitalization (M$)
TECHCARE CORP97.06%4