Years Ended
We believe that revenues will be higher in 2023 than in 2022, since we launched the marketing of our advanced and smart products in late 2022 and expect to begin commercial sales in 2023. We also expect the pending Acquisition to increase our revenues, assuming the Company successfully consummates the Acquisition.
We believe that cost of revenues will increase in 2023 compared to in 2022, commensurate with an anticipated increase in revenues.
Selling, General and Administrative Expenses
Selling, general and administrative expenses consist primarily of an allocation of product development, sales, finance, legal, human resources, including salaries, wages, and benefits, and depreciation and amortization, including non-cash equity-based compensation.
The increase in selling, general, and administrative expenses during 2022 when compared to the prior year was primarily due to the following:
? Increase of
compared to 2021, which was primarily due to a greater number of shares of
common stock issued and options granted for services during 2022;
? Increased investments in marketing programs and product development of
approximately
launch of our product offerings during 2022 compared to 2021; and
? Increase in other spending amounting to
We believe that our selling, general, and administrative expenses will be higher during 2023 when compared to 2022 as we continue to invest to support our anticipated growth.
We believe that interest expenses will increase during fiscal 2023 when compared to 2022, primarily as a result of increased operating lease liabilities.
Liquidity and Capital Resources
Our net cash used in investing activities amounted to
We generated
We generated
Off Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
Our significant accounting policies are disclosed in Note 2 to our 2022 consolidated financial statements. The following is a summary of those accounting policies that involve significant estimates and judgment of management.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes.
Fair Value of Financial Instruments
? Level 1, defined as observable inputs such as quoted prices for identical
instruments in active markets;
? Level 2, defined as inputs other than quoted prices in active markets that are
either directly or indirectly observable such as quoted prices for similar
instruments in active markets or quoted prices for identical or similar
instruments in markets that are not active; and
? Level 3, defined as unobservable inputs in which little or no market data
exists, therefore requiring an entity to develop its own assumptions, such as
valuations derived from valuation techniques in which one or more significant
We account for revenues in accordance with Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (Topic 606).
Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.
We determine revenue recognition through the following steps:
? identification of the contract, or contracts, with a customer;
? identification of the performance obligations in the contract;
? determination of the transaction price;
? allocation of the transaction price to the performance obligations in the
contract; and
? recognition of revenue when, or as, we satisfy a performance obligation.
Recent Accounting Pronouncements
© Edgar Online, source
