UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission File No. 000-40403

SAVE FOODS, INC.

(Exact name of registrant as specified in its charter)

Delaware		26-4684600
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

Kibbutz Alonim
Israel		3657700
(Address of Principal Executive Offices)		(Zip Code)

(347) 468 9583

(Registrant’s telephone number, including area code)

n/a

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of exchange on which registered
Common Stock, Par value $0.0001 per share		SVFD		The Nasdaq Capital Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☐	Large accelerated filer	☐	Accelerated filer
☒	Non-accelerated filer	☒	Smaller reporting company
		☐	Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s common stock, $0.0001 par value, outstanding as of August 11, 2021: 2,790,836.

As used in this Quarterly Report and unless otherwise indicated, the terms “Save Foods,” “we,” “us,” “our,” or “our Company” refer to Save Foods, Inc. and Save Foods Ltd., our 98.48% owned subsidiary. Unless otherwise specified, all dollar amounts are expressed in United States dollars.

Save Foods, Inc.

Quarterly Report on Form 10-Q

TABLE OF CONTENTS

		Page

Cautionary Note Regarding Forward-Looking Statements		3

PART I - FINANCIAL INFORMATION

Item 1.	Unaudited Consolidated Financial Statements	4

	Unaudited Consolidated Balance Sheets	5

	Unaudited Consolidated Statements of Comprehensive Loss	6

	Unaudited Statements of Stockholders’ Equity	7

	Unaudited Consolidated Statements of Cash Flows	8

	Notes to Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22

Item 4.	Control and Procedures	22

PART II - OTHER INFORMATION

Item 1A.	Risk Factors	23

Item 6.	Exhibits	23

SIGNATURES		24

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information set forth in this Quarterly Report on Form 10-Q, including in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein may address or relate to future events and expectations and as such constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements which are not historical reflect our current expectations and projections about our future results, performance, liquidity, financial condition, prospects and opportunities and are based upon information currently available to us and our management and their interpretation of what is believed to be significant factors affecting our business, including many assumptions regarding future events. Such forward-looking statements include statements regarding, among other things:

	●	our current and future capital requirements and our ability to satisfy our capital needs through financing transactions or otherwise;

	●	sales of our products;

	●	the size and growth of our product market;

	●	our activity in the civilian market;

	●	our manufacturing capabilities;

	●	our entering into certain partnerships with third parties;

	●	obtaining required regulatory approvals for sales or exports of our products;

	●	our marketing plans;

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

	●	our expectation regarding the impact of COVID-19 on our business and operations;

	●	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.

Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “should,” “would,” “could,” “scheduled,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “seek,” or “project” or the negative of these words or other variations on these words or comparable terminology. Actual results, performance, liquidity, financial condition and results of operations, prospects and opportunities could differ materially and perhaps substantially from those expressed in, or implied by, these forward-looking statements as a result of various risks, uncertainties and other factors. These statements may be found under the section of our Annual Report on Form 10-K for the year ended December 31, 2020 (filed on March 29, 2021) (“2020 Annual Report”) entitled “Risk Factors” as well as in our other public filings.

In light of these risks and uncertainties, and especially given the start-up nature of our business, there can be no assurance that the forward-looking statements contained herein will in fact occur. Readers should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

On February 23, 2021, we implemented a one-for-seven reverse stock split of our common stock, par value $0.0001 per share (the “Common Stock”) pursuant to which holders of our Common Stock received one share of our Common Stock for every seven shares of Common Stock held. Unless the context expressly dictates otherwise, all references to share and per share amounts referred to herein reflect the reverse stock split.

PART I – FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS.

SAVE FOODS, INC.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021

IN U.S. DOLLARS

TABLE OF CONTENTS

	Page
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
Unaudited Condensed Consolidated Balance Sheets as of June 30, 2021, and December 31, 2020	5
Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Six and Three Months Ended June 30, 2021 and June 30, 2020	6
Unaudited Condensed Consolidated Statements of Shareholders’ Deficit for the Six and Three Months period Ended June 30, 2021 and June 30, 2020	7
Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and June 30, 2020	8
Notes to Unaudited Condensed Consolidated Financial Statements	9 - 15

SAVE FOODS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars except share and per share data)

	2021			2020
	June 30,			December 31,
	2021			2020
Assets
Current Assets
Cash and cash equivalents		9,305,800			242,900
Restricted cash		22,086			22,395
Accounts receivable, net		54,403			147,941
Inventories		15,236			16,356
Other current assets		706,258			65,579
Total Current assets		10,103,783			495,171

Right of use asset arising from operating lease		6,963			14,700

Property and equipment, net		45,585			55,194

Funds in respect of employee rights upon retirement		118,209			122,584
Total assets		10,274,540			687,649

Liabilities and Shareholders’ Equity ( Deficit)
Current Liabilities
Short-term loan from banking institution		7,928			7,949
Current maturities of convertible loans		-			56,250
Accounts payable		329,253			203,323
Other liabilities		862,415			517,711
Total current liabilities		1,199,596			785,233
Fair value of convertible component in convertible loans		-			54,970
Convertible loans		-			146,929
Long term loan from banking institution		3,995			8,115
Liability for employee rights upon retirement		152,992			157,855

Total liabilities		1,356,583			1,153,102

Stockholders’ Equity
Common stock, par value $ 0.0001 per share (“Common Stocks”): 495,000,000 shares authorized as of June 30, 2021 and December 31, 2020; issued and outstanding 2,776,551 shares as of June 30, 2021 and 1,606,765 shares as of December 31, 2020.		278			161
Preferred stock, par value $ 0.0001 per share (“Preferred stock”): 5,000,000 shares authorized as of June 30, 2021 and December 31, 2020; issued and outstanding 0 shares as of June 30, 2021 and December 31, 2020.		-			-
Additional paid-in capital		23,244,172			11,867,585
Foreign currency translation adjustments		(26,275	)		(26,275	)
Accumulated deficit		(14,251,490	)		(12,277,647	)
Stockholders' Equity		8,966,685			(436,176	)
Non-controlling interests		(48,728	)		(29,277	)
Total stockholders’ equity (deficit)		8,917,957			(465,453	)
Total liabilities and stockholders’ equity (deficit)		10,274,540			687,649

The accompanying notes are an integral part of the condensed consolidated financial statements.

SAVE FOODS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(U.S. dollars except share and per share data)

	2021			2020			2021			2020
	Six months ended						Three months ended
	June 30						June 30
	2021			2020			2021			2020

Revenues from sales of products		177,477			63,566			54,403			-
Cost of sales		(14,287	)		(25,686	)		(11,354	)		(4,911	)
Gross profit (loss)		163,190			37,880			43,049			(4,911	)
Research and development expenses		(296,533	)		(253,343	)		(226,742	)		(95,707	)
Selling and marketing expenses		(33,409	)		(36,748	)		(18,712	)		(7,811	)
General and administrative expenses		(1,672,707	)		(513,376	)		(1,419,736	)		(295,297	)
Operating loss		(1,839,459	)		(765,587	)		(1,622,141	)		(403,726	)
Financing income (expenses), net		(156,061	)		(200,351	)		120,916			(193,149	)
Gain on disposal of affiliated company		-			15,690			-			15,690
Net loss		(1,995,520	)		(950,248	)		(1,501,225	)		(581,185	)

Less: Net loss attributable to non-controlling interests		21,677			7,556			19,784			4,140
Net loss attributable to the Company		(1,973,843	)		(942,692	)		(1,481,441	)		(577,045	)

Loss per share (basic and diluted)		(1.05	)		(0.65	)		(0.69	)		(0.40	)

Basic and diluted weighted average number of shares of Common Stock outstanding ⁽¹⁾		1,884,365			1,458,598			2,158,915			1,458,598

(1)	Prior periods results have been adjusted to reflect 7 to 1 reverse stock split in February 2021 (see note 1).

The accompanying notes are an integral part of the condensed consolidated financial statements.

SAVE FOODS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’

EQUITY (DEFICIT)

(U.S. dollars, except share and per share data)

	Share		Amt		Amt		Amt			Amt		Amt			Amt			Amt			Total
	Number of Shares		Amount		Additional paid-in capital		Accumulated other comprehensive income (loss)			Proceeds on account of shares		Accumulated deficit			Total Company’s stockholders’ deficit			Non- controlling interests			Total stockholders’ deficit

BALANCE AT JANUARY 1, 2020		1.458.598		146		10,329,571		(26,275	)		-		(10,684,508	)		(381,066	)		(21,053	)		(402,119	)
Receipts on account of shares
Stock based compensation		-		-		35,028		-			-		-			35,028			375			35,403
Value of warrant issued in convertible loans		-		-		34,696		-			-		-			34,696			-			34,696
Issuance of shares, net of issuance costs of $1,542,138
Conversion of convertible loans
Share based compensation for services providers
Comprehensive loss for three months ended March 31, 2020		-		-		-		-			-		(365,647	)		(365,647	)		(3,416	)		(369,063	)
BALANCE AT JUNE 30, 2020		1,458,598		146		10,399,295		(26,275	)		-		(11,050,155	)		(676,989	)		(24,094	)		(701,083	)
Receipts on account of shares		-		-		-		-			100,000		-			100,000			-			100,000
Stock based compensation		-		-		182,313		-			-		-			182,313			1,951			184,264
Conversion of convertible loans		-		-		585,931		-			-		-			585,931			-			585,931
Comprehensive loss for three months ended June 30, 2020		-		-		-		-			-		(577,045	)		(577,045	)		(4,140	)		(581,185	)
BALANCE AT JUNE 30, 2020		1,458,598		146		11,167,539		(26,275	)		100,000		(11,627,200	)		(385,790	)		(26,283	)		(412,073	)

	Number of shares		Amount		Additional paid-in capital		Accumulated other comprehensive income (loss)			Proceeds on account of shares		Accumulated deficit			Total Company’s stockholders’ equity			Non- controlling interests			Total stockholders’ equity

BALANCE AT JANUARY 1, 2021		1,606,765		161		11,867,585		(26,275	)		-		(12,277,647	)		(436,176	)		(29,277	)		(465,453	)
Stock based compensation		-		-		83,605		-			-		-			83,605			895			84,500
Comprehensive loss for three months ended March 31, 2021		-		-		-		-			-		(492,402	)		(492,402	)		(1,893	)		(494,295	)
BALANCE AT MARCH 31, 2021		1,606,765		161		11,951,190		(26,275	)		-		(12,770,049	)		(844,973	)		(30,275	)		(875,248	)
Issuance of shares, net of issuance costs of $1,542,138		1,090,909		109		10,457,753		-			-		-			10,457,862			-			10,457,862
Conversion of convertible loans		66,877		7		648,403		-			-		-			648,410			-			648,410
Stock based compensation		-		-		60,227		-			-		-			60,227			1,331			61,558
Share based compensation for services providers		12,000		1		126,599		-			-		-			126,600			-			126,600
Comprehensive loss for three months ended June 30, 2021		-		-		-		-			-		(1,481,441	)		(1,481,441	)		(19,784	)		(1,501,225	)
Comprehensive loss		-		-		-		-			-		(1,481,441	)		(1,481,441	)		(19,784	)		(1,501,225	)
BALANCE AT JUNE 30, 2021 ⁽¹⁾		2,776,551		278		23,244,172		(26,275	)		-		(14,251,490	)		8,966,685			(48,728	)		8,917,957

(1)	Prior periods results have been adjusted to reflect 7 to 1 reverse stock split in February 2021 (see note 1).

The accompanying notes are an integral part of the condensed consolidated financial statements.

SAVE FOODS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars except share and per share data)

	2021			2020
	Six months ended
	June 30,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss for the period		(1,995,520	)		(950,248	)
Adjustments required to reconcile net loss for the period to net cash used in operating activities:
Depreciation and amortization		17,346			25,934
Gain on disposal of affiliated company		-			(15,690	)
Increase (decrease) in liability for employee rights upon retirement		(4,863	)		4,332
Stock based compensation		272,658			219,667
Expenses on convertible loans		115,972			141,926
Conversion of convertible loans					57,793
Decrease in accounts receivable		93,538			64,003
Decrease in inventory		1,120			5,035
Increase in other current assets		(680,679	)		(30,516	)
Increase (decrease) in accounts payable		117,786			(55,428	)
Increase in other accounts payable		351,420			64,193
Net cash used in operating activities		(1,711,222	)		(468,999	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Payments on investment in unconsolidated entity		-			2,480
Decrease (increase) in funds in respect of employee rights upon retirement		4,375			(3,054	)
Net cash provided by investing activities		4,375			(574	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from secured promissory notes		274,000			135,000
Proceeds on account of shares		-			100,000
Repayments of right to use asset arising from operating lease		(6,407	)		(17,435	)
Repayments of long-term banking institutes		(3,852	)		(3,556	)
Proceeds from stock issued for cash, net of issuance costs of $1,502,138		10,497,862			-
Net cash provided by financing activities		10,761,603			214,009
Effect of exchange rate changes on cash and cash equivalents and restricted cash		8,144			-

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		9,062,900			(255,564	)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		242,900			290,815

CASH AND CASH EQUIVALENTS AT END OF PERIOD		9,305,800			35,251

Supplemental disclosure of cash flow information:
Non cash transactions:
Disposal of affiliated company		-			5,087
Issuance of warrants in convertible loans		-			34,696
Conversion of convertible loans		648,410			528,138
Deferred issuance expenses		40,000			-

The accompanying notes are an integral part of the condensed consolidated financial statement

SAVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 1 - GENERAL

Save Foods, Inc. (the “Company”) was incorporated on April 1, 2009, under the laws of the State of Delaware. On April 27, 2009, the Company acquired from its stockholders 98.48% of the issued and outstanding shares of Save Foods Ltd., an Israeli company, including preferred and Common Stock. Save Foods Ltd. was incorporated in 2004 and commenced its operations in 2005. Save Foods Ltd. develops, produces, and focuses on delivering innovative solutions for the food industry aimed at improving food safety and shelf life of fresh produce.

Through May 13, 2021, the Company’s Common Stock was quoted on the OTC, Pink Tier, under the symbol “SAFO”. On May 13, 2021, the Company completed an underwritten public offering of 1,090,909 shares of Common Stock of the Company at a price to the public of $11.00 per share. The gross proceeds to the Company from this offering were $12,000,000, before deducting underwriting discounts, commissions and other offering expenses, and excluding the exercise of the over-allotment option by the underwriter, which were not exercised. The Company granted the underwriter a 45-day option to purchase up to 163,636 additional shares of Common Stock of the Company to cover over-allotments at the public offering price, less the underwriting discounts and commissions, which was not exercised by the underwriter. In addition, the Company issued to the underwriter as compensation warrants to purchase up to 54,545 shares of Common Stock (5% of the aggregate number of shares of Common Stock sold in this offering exclusive of the over-allotment option, or the underwriter’s warrants). The underwriter’s warrants are exercisable at a per share exercise price equal to 125% of the public offering price per share in the offering, or $13.75 per share. The underwriter’s warrants are exercisable at any time and from time to time, in whole or in part, during the four one half year period commencing 180 days from the effective date of the registration statement.

Commencing on May 14, 2021, the Company’s Common Stock was initially listed on the Nasdaq Capital Market under the symbol “SVFD”.

In March 2020, the World Health Organization declared the coronavirus (COVID-19) outbreak a global pandemic. To date, the impact of the pandemic on the Company’s operations has been mainly limited to a temporary facility closure in the context of a government-mandated general lockdown, which temporary delayed certain development activities. Due to the effects of COVID-19, as of the date of this report, some of Company's employees are on temporary leave without pay (furlough), including Company's Chief Technology Officer, and we have postponed some of our planned field tests due to the current restriction on international travels. However, to date, the Company did not experience any material impact on our financial condition and results of operations due to COVID-19 However, the Company is unable to assess with certainty the extent of future impact, in part due to the uncertainty regarding the duration of the COVID-19 pandemic, its force and its effects on the markets in which the Company operates and the effects of possible government measures to prevent the spread of the virus.

Reverse Stock Split

On February 23, 2021, the Company amended its Certificate of Incorporation to effect a 7 to 1 reverse stock split of the Company’s outstanding Common Stock.

As a result of the reverse stock split, every 7 shares of the Company’s outstanding Common Stock prior to the effect of that amendment were combined and reclassified into one share of the Company’s Common Stock. No fractional shares were issued in connection with or following the reverse split. The number of authorized capital of the Company’s Common Stock and par value of the shares remained unchanged.

All share, stock option and per share information in these condensed consolidated financial statements have been restated to reflect the stock split on a retroactive basis.

SAVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Unaudited Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiary, prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the financial statements presented herein have not been audited by an independent registered public accounting firm but include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the financial condition, results of operations and cash flows for the three and six-months ended June 30, 2021 and 2020. However, these results are not necessarily indicative of results for any other interim period or for the year ended December 31, 2021. The preparation of financial statements in conformity with U.S. GAAP requires the Company to make certain estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual amounts could differ from these estimates.

These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Principles of Consolidation

The consolidated financial statements are prepared in accordance with US GAAP. The consolidated financial statements of the Company include the Company and its majority-owned subsidiary. All inter-company balances and transactions have been eliminated.

Use of Estimates

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, certain revenues and expenses, and disclosure of contingent assets and liabilities as of the date of the financial statements. Actual results could differ from those estimates. As applicable to these financial statements, the most significant estimates and assumptions relate to share based compensation.

SAVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Recent Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). The guidance in ASU 2020-06 simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding an entity’s ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The amendments in ASU 2020-06 are effective for the Company for fiscal years beginning after December 15, 2021. Early adoption is permitted. The guidance must be adopted as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this new guidance, but does not expect it to have a material impact on its financial statements.

NOTE 3 – CONVERTIBLE LOANS

On September 21, 2020, the Company entered into a series of convertible loan agreements with certain lenders to sell convertible promissory notes with an aggregate principal amount of $125,000. The outstanding loan amount of these convertible promissory notes will mature on the earlier of (i) the third anniversary of each such convertible loan agreement or (ii) a deemed liquidation event, and the lenders may convert all or any portion of the convertible promissory notes into shares of Common Stock at any time prior to a mandatory conversion event at a conversion price of $7.63 per share (collectively the “September 2020 CLAs”).

During October 2020, the Company entered into a series of additional convertible loan agreements with additional lenders to sell notes with an aggregate principal amount of $100,000, pursuant to the same terms a set forth in the September 2020 CLAs.

During January 2021, the Company entered into a series of additional convertible loan agreements with additional lenders to sell notes with an aggregate principal amount of $274,000, pursuant to the same terms a set forth in the September 2020 CLAs.

As part of the foregoing convertible loan agreements, the Company entered into registration rights agreements with each of the lenders, whereby each lender received piggyback registration rights for the shares of Common Stock issuable upon conversion of the notes.

On May 11, 2021 and May 12, 2021, the lenders of the convertible loans agreements utilized their optional conversion, of the entire balance of the convertible promissory notes in the aggregate principal amount of $499,000 and of aggregated accrued interest amount of $11,211, at a conversion price of $7.63 per share and the Company issued to the lenders an aggregate amount of 66,877 shares of Common Stock following the conversion.

SAVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 4 – COMMON STOCK

On May 13, 2021, the Company completed an underwritten public offering of 1,090,909 shares of Common Stock of the Company at a price to the public of $11.00 per share – see note 1 above.

On May 15, 2021, the Company signed consulting agreement with a third party according to which the Consultant will provide the Company with investor relations services for a period of 12 months following the commencement date. As consideration for the agreement, the Company will pay the consultant an annual fee of $40,000 and issue the consultant 12,000 shares of Common Stock of the Company. On June 20, 2021, the Company issued 12,000 shares of Common Stock of the Company to the consultant. The Company estimated the value of the shares issue at $126,600.

NOTE 5 – STOCK OPTIONS

The following table presents the Company’s stock option activity for employees, directors and consultants of the Company for the six months ended June 30, 2021:

SCHEDULE OF STOCK OPTION ACTIVITY

	Number of Options		Weighted Average Exercise Price
Outstanding at December 31,2020		206,862		3.37
Granted		-		-
Exercised		-		-
Forfeited or expired		-		-
Outstanding at June 30,2021		206,862		3.37
Number of options exercisable at June 30, 2021		139,543		3.31

The aggregate intrinsic value of the awards outstanding as of June 30, 2021 is $941,627. These amounts represent the total intrinsic value, based on the Company’s stock price of $ 7.92 as of June 30, 2021, less the weighted exercise price. This represents the potential amount received by the option holders had all option holders exercised their options as of that date.

Costs incurred in respect of stock-based compensation for employees and directors, for the six months ended June 30, 2021 and 2020 were $146,058 and $219,667 respectively

SAVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 6 – COMMITMENT AND CONTINGENT LIABILITIES

	A.	On June 15, 2021, the Company signed consulting agreement with a third party according to which the consultant will provide the Company with public relations services. Based on the agreement the Company will pay the consultant a monthly fee of $3,500 and shall issue the consultant 200 shares of Common Stock of the Company on the final day of each month following the commencement date of the agreement.

	B.	On June 1, 2021, the Company terminated consulting agreements previously executed on October 10, 2018, with two of its consultants and signed new consulting agreements with the same parties. According to the agreements, the consultants shall provide the Company with business development and strategic consulting services including ongoing consulting for the Company, board and management. The agreement shall be effective until terminated by each of the parties by giving a 30 days prior notice. Based on the agreements, the Company agreed to pay each a monthly fee of $13,000 and $2,000 as monthly reimbursement of expenses. In addition, the Company agreed to grant the consultants with signing bonuses in the amounts of $150,000 and $250,000 net of the outstanding debt of the Company, which was $33,000 payable to each consultant. In addition, the Company agreed to pay the consultants 5% of any gain generated by the Company exceeding an initial gain of 25% due to any sale, disposition or exclusive license of activities, securities, business, or similar events initiated by each the Consultants. In addition, each consultant shall be entitled to a special bonus upon the execution of business opportunities or upon other events the consultant assisted with (“Consultant Engagements”), authorized by the CEO or the Chairman of the Board. The special bonus shall not exceed two times each consultant’s monthly fee. As of the date of the financial statements, no such Consultant Engagements were executed.

NOTE 7 – RELATED PARTIES

A. Transactions and balances with related parties

	Six months ended June 30
	2021		2020

General and administrative expenses:
Directors compensation (*)		22,217		228,136
Salaries and fees to officers (*)		70,145		135,339
		92,362		363,475
(*) share based compensation included in the above		6,533		199,199

Research and development expenses:
Salaries and fees to officers		-		25,272
Share based compensation		-		-

SAVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

B. Balances with related parties and officers:

	As of June 30,
	2021		2020

Other accounts payables		173,526		258,782

C. Other information:

	1.	On November 5, 2020, the board of directors of the Company appointed Mr. David Palach, to serve as Chief Executive Officer of the Company, effective as of the same date. In connection with Mr. Palach’s appointment, the parties entered into a Consulting Agreement pursuant to which the Company and Mr. Palach agreed upon, inter alia, the following engagement terms: (a) a monthly fee of $8,000, and (b) a grant of options to purchase shares of the Company’s Common Stock, which amount shall be determined by the Board on a future date. On June 17, 2021, the Board of Directors of the Company approved an amendment to the compensation of Mr. Palach, according to which he shall be entitled to a monthly fee of $14,000 and reimbursement of expenses of $500 per month. In addition, Mr. Palach shall receive a one-time grant of options to purchase shares of Common Stock of the Company representing 4.5% of the Company’s outstanding share capital as of the date of the approval. The terms of the grant have not yet been determined.

	2.	On June 17, 2021, the board of directors of the Company approved the compensation of Vered Raz Avayo as its Chief Financial Officer, according to which she shall be entitled to a monthly fee of $8,000 and reimbursement of expenses of $500 per month. In addition, Ms. Raz Avayo shall receive a one-time grant of options to purchase shares of Common Stock of the Company representing 1.5% of the Company’s outstanding share capital as of the date of the approval. The terms of the grant have not yet been determined.

	3.	On June 17, 2021, the board of directors of the Company approved the compensation of its Chairman of the Board, according to which the Chairman of the Board shall be entitled to a monthly fee of $5,000. In addition, the Chairman of the Board shall receive a one-time grant of options to purchase shares of Common Stock of the Company representing 1.5% of the Company’s outstanding share capital as of the date of the approval. The terms of the grant have not yet been determined.

	4.	On June 17, 2021, the board of directors of the Company approved the compensation for each non-executive member of the board, according to which the each such member shall be entitled to an annual fee of NIS 100,000 (approximately $30,500). In addition, each such member shall receive a one-time grant of options to purchase shares of Common Stock of the Company representing 0.25% of the Company’s outstanding share capital as of the date of the approval. The terms of the grant have not yet been determined.

SAVE FOODS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTE 8 – SUBSEQUENT EVENTS

On July 1, 2021, the Company and a digital communication consultant signed an Addendum to a certain Service Agreement, previously executed on October 20, 2020 (the “Original Agreement”), according to which the Company agreed to pay the consultant $15,000 as compensation for services rendered pursuant to the Original Agreement and to issue the consultant 14,285 shares of Common Stock of the Company. The Company estimates the value of the shares of Common Stock issued to be $143,279. In addition, the Company agreed to continue the Original Agreement for a period of an additional six months pursuant to which the consultant will receive a monthly fee of $10,000.

On July 12, 2021, the Company and the Chairman of the Board of Save Foods Ltd. entered into a Separation Agreement and Release according to which the consulting agreement previously executed with the former chairman was terminated effective as of July 8, 2021. According to the Separation Agreement and Release, the Company would pay the amounts accrued to the former chairman under his consulting agreement and in addition the Company compensated the former chairman for the amounts owed to him during the 90 days notice following the termination of the Separation Agreement and Release and accelerate the vesting of all unvested options granted to the former chairman.

On August 5, 2021, the Company signed consulting agreement with a third party according to which the Consultant will provide the Company with strategic consulting and digital marketing services for a period of six months commencing on September 1, 2021. As consideration for the agreement, the Company agreed to pay the consultant a total fee of $301,000 and shall issue the consultant 12,000 shares of Common Stock of the Company.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Readers are advised to review the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the consolidated financial statements and related notes thereto in our 2020 Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See “Cautionary Note Regarding Forward-Looking Statements”. You should review the “Risk Factors” section of our 2020 Annual Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Furthermore, certain disclosures and references made herein apply to Save Foods Ltd., the subsidiary of Save Foods, Inc. The primary business activities and operations discussed herein are performed by Save Foods Ltd., whereas Save Foods, Inc. operates as a holding company and is the Registrant for purposes of this Quarterly Report on Form 10-Q.

We develop eco-friendly “green” solutions for the food industry. Our solutions are developed to improve the food safety and shelf life of fresh produce. We do this by controlling human and plant pathogens, thereby reducing spoilage, and in turn, reducing food loss.

Our products are based on a proprietary blend of food acids which have a synergistic effect when combined with certain types of oxidizing agent-based sanitizers and fungicides at low concentrations. Our green products are capable of cleaning, sanitizing and controlling pathogens on fresh produce with the goal of making them safer for human consumption and extending their shelf life by reducing their decay. One of the main advantages of our products is that our active ingredients do not leave any toxicological residues on the fresh produce we treat. In contrary, by forming a temporary protective shield around the fresh produce we treat, our products make it difficult for pathogens to develop and potentially provide protection which also reduces cross-contamination.

Our shares of Common Stock are listed on the Nasdaq Capital Market under the symbol “SVFD.”

Due to the effects of COVID-19, as of the date of this report, some of our employees are on temporary leave without pay (furlough), including our Chief Technology Officer, and we have postponed some of our planned field tests due to restrictions on international travels. However, to date, we did not experience any material impact on our financial condition and results of operations due to COVID-19, and we do not expect to experience any material impact on our overall liquidity positions and outlook as a result of the outbreak. Nevertheless, it is not possible at this time to estimate the full impact that the COVID-19 pandemic, the continued spread of COVID-19, and any additional measures taken by governments, health officials or by us in response to such spread, could have on our business results of operations and financial condition.

Results of Operations

Components of Results of Operation

Revenues and Cost of Revenues

Our total revenue consists of products and our cost of revenues consists of cost of products.

The following table discloses the breakdown of revenues and costs of revenues:

	Six Months Ended June 30,						Three Months Ended June 30,
U.S. dollars in thousands, except share and per share data	2021			2020			2021			2020

Revenues	$	177,477		$	63,566		$	54,403		$	-
Cost of revenues		(14,287	)		(25,686	)		(11,354	)		(4,911	)
Gross (loss) profit	$	163,190		$	37,880		$	43,049		$	(4,911	)

Operating Expenses

Our current operating expenses consist of three components — research and development expenses, selling and marketing expenses and general and administrative expenses.

Research and Development Expenses, net

Our research and development expenses consist primarily of salaries and related personnel expenses, share base compensation, professional fees and other related research and development expenses such as field tests.

	Six Months Ended June 30,				Three Months Ended June 30,
U.S. dollars in thousands	2021		2020		2021		2020
Salaries and related expenses	$	17,927	$	38,643	$	15,841	$	-
Share based compensation		31,344		33,636		13,428		19,050
Professional fees		210,932		68,961		179,918		20,251
Laboratory and field tests		7,376		77,525		1,116		42,920
Other expenses		28,954		34,578		16,439		13,486
Total	$	296,533	$	253,343	$	226,742	$	95,707

We expect that our research and development expenses will increase as we continue to develop our products and services, field trials and recruit additional research and development employees.

Selling and Marketing Expenses

Selling and marketing expenses consist primarily of salaries and related expenses, share based compensation and other expenses.

	Six Months Ended June 30,					Three Months Ended June 30,
U.S. dollars in thousands	2021		2020			2021		2020
Salaries and related expenses	$	3,414	$	30,152		$	2,637	$	-
Share based compensation		791		(22,366	)		329		983
Other expenses		29,204		28,962			15,746		6,828
Total	$	33,409	$	36,748		$	18,712	$	7,811

We expect that our selling and marketing expenses will increase as we continue to increase our selling and marketing efforts including commercial validation pilots and recruit additional employees or contractor to support our selling and marketing efforts in our targeted geographical areas.

General and Administrative Expenses

General and administrative expenses consist primarily of professional services, share based compensation and other non-personnel related expenses.

	Six Months Ended June 30,				Three Months Ended June 30,
U.S. dollars in thousands	2021		2020		2021		2020
Salaries and related expenses	$	32,056	$	-	$	32,056	$	-
Professional services		1,277,693		208,439		1,123,805		88,935
Share based compensation		112,738		205,087		47,309		162,756
Legal expenses		20,753		36,582		10,687		18,155
Other expenses		229,467		63,268		205,879		25,451
Total	$	1,672,707	$	513,376	$	1,419,736	$	295,297

Three months ended June 30, 2021 compared to three months ended June 30, 2020

Revenues.

Revenues for the three months ended June 30, 2021 were $54,403, compared to $0 during the three months ended June 30, 2020. The increase is mainly a result of our sale of new products, which we commenced in the fourth quarter of 2020.

We do not have backlogs or firm commitments from our customers for our products. Our sales might deteriorate if we fail to achieve commercial success or obtain regulatory approval of any of our products.

Cost of Sales

Cost of sales consists primarily of salaries, materials, transportation and overhead costs of manufacturing our products. Cost of revenues for the three months ended June 30, 2021 was $11,354, an increase of $6,443, or 131%, compared to total cost of revenues of $4,911 for the three months ended June 30, 2020. The increase is mainly a result of our increase in sales for the three months ended June 30, 2021.

Gross Profit

Gross profit for the three months ended June 30, 2021 was $43,049, an increase of $47,960, compared to gross loss of $4,911 for the three months ended June 30, 2020. The increase is mainly a result of the increase in revenues as detailed above.

Research and Development

Research and development expenses consist of salaries and related expenses, share base compensation, consulting fees, service providers’ costs, related materials and overhead expenses. Research and development expenses for the three months ended June 30, 2021 were $226,742, an increase of $131,035, or 137%, compared to total research and development expenses of $95,707 for the three months ended June 30, 2020. The increase is mainly attributable to an increase in professional fees and salary and related expenses offset by a decrease in share based compensation and in expenses associated with international travel and field trials which have been postponed due to COVID-19.

Selling and Marketing Expenses

Selling and marketing expenses consist primarily of salaries and related costs for selling and marketing personnel, travel related expenses and services providers. Selling and marketing expenses for the three months ended June 30, 2021 were $18,712, an increase of $10,901, or 139%, compared to total selling and marketing expenses of $7,811 for the three months ended June 30, 2020. The increase is mainly attributable to the increase in service providers’ delivery costs associated with our sales.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries and related expenses including share based compensation and other professional services as well as other non-personnel related expenses such as legal expenses and directors and insurance costs. General and administrative expenses for the three months ended June 30, 2021 were $1,419,736, an increase of $1,124,439, or 381%, compared to total general and administrative expenses of $295,297 for the three months ended June 30, 2020. The increase is mainly a result of the increase in professional services and compensation payable to directors following the listing of our Common Stock on the Nasdaq Capital Market, which occurred during the second quarter of 2021, offset partially by a decrease share-based compensation to our employees and service providers.

Financing Expenses, Net

Financing income, net for the three months ended June 30, 2021 were $120,916, a change of $314,066, compared to total financing expenses of $193,149 for the three months ended June 30, 2020. The decrease is mainly a result of the decrease in compensation expenses related to the accrued interest and amortization expenses associated with our convertible loans which were fully converted during the three months ended June 30, 2021.

Total Comprehensive Loss

As a result of the foregoing, our total comprehensive loss for the three months ended June 30, 2021 was $1,481,580, compared to $577,045 for the three months ended June 30, 2020, an increase of $904,535, or 157%.

Six months ended June 30, 2021 compared to six months ended June 30, 2020

Revenues.

Revenues for the six months ended June 30, 2021 were $177,477, an increase of $113,911, or 179%, compared to total revenues of $63,566 for the six months ended June 30, 2020. The increase is mainly a result of our sales of new products, which we commenced in the fourth quarter of 2020.

Cost of Sales

Cost of sales consists primarily of salaries, materials, transportation and overhead costs of manufacturing our products. Cost of revenues for the six months ended June 30, 2021 was $14,287, a decrease of $11,399, or 44%, compared to total cost of revenues of $25,686 for the six months ended June 30, 2020. The decrease is mainly a result of the decrease in the overall cost of materials, due to our efforts to outsource production of our new solutions.

Gross Profit

Gross profit for the six months ended June 30, 2021 was $163,190, an increase of $125,310, or 331%, compared to gross profit of $37,880 for the six months ended June 30, 2020. The increase is mainly a result of the increase in revenues and the decrease in cost of revenues, as detailed above.

Research and Development

Research and development expenses consist of salaries and related expenses, share base compensation, consulting fees, service providers’ costs, related materials and overhead expenses. Research and development expenses for the six months ended June 30, 2021 were $296,533, an increase of $43,190, or 17%, compared to total research and development expenses of $253,343 for the six months ended June 30, 2020. The increase is mainly attributable to the increase in professional fees partially offset by a decrease in share based compensation and in payroll and decrease in expenses associated with international travel and field trials which have been postponed due to COVID-19.

Selling and Marketing Expenses

Selling and marketing expenses consist primarily of salaries and related costs for selling and marketing personnel, travel related expenses and services providers. Selling and marketing expenses for the six months ended June 30, 2021 were $33,409, a decrease of $3,339, or 9%, compared to total selling and marketing expenses of $36,748 for the six months ended June 30, 2020. The decrease is mainly attributable to the increase in payroll expenses and service providers used in relation to selling and marketing activities mainly associated with the termination of the employment of our former vice president of sales in February 2020 partially offset by an increase in share based compensation expenses.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries and related expenses including share based compensation, professional fees and other non-personnel related expenses such as legal expenses and directors and insurance costs. General and administrative expenses for the six months ended June 30, 2021 were $1,672,707, an increase of $1,159,331, or 226%, compared to total general and administrative expenses of $513,376 for the six months ended June 30, 2020. The increase is mainly a result of the increase in professional services and compensation payable to directors following the listing of our Common Stock on the Nasdaq Capital Market, which occurred during the second quarter of 2021, offset partially by a decrease share-based compensation to our employees and service providers.

Financing Expenses, Net

Financing expenses, net for the six months ended June 30, 2021 were $156,061, a decrease of $44,290, or 22%, compared to total financing expenses of $200,351 for the six months ended June 30, 2020. The decrease is mainly a result of the decrease in compensation expenses related to the accrued interest and amortization expenses associated with our convertible loans which were fully converted during the three months ended June 30, 2021.

Total Comprehensive Loss

As a result of the foregoing, our total comprehensive loss for the six months ended June 30, 2021 was $1,973,843, compared to $942,692 for the six months ended June 30, 2020, an increase of $1,031,151, or 109%.

Liquidity and Capital Resources

Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are funds generated by operations, levels of accounts receivable and accounts payable and capital expenditures. Since our inception through June 30, 2021, we have funded our operations principally with approximately $23,244,172 (net of issuance expenses) from the issuance of shares of our Common Stock, options and loans.

On May 13, 2021, we completed an underwritten public offering of 1,090,909 shares of Common Stock at a price to the public of $11.00 per share. The gross proceeds we received from this offering were $12,000,000 (net proceeds of $10,457,862) (the “Underwritten Offering”).

The table below presents our cash flows for the periods indicated:

	Six Months Ended June 30,
	2021			2020
Net cash used in operating activities	$	(1,711,222	)	$	(468,999	)

Net cash provided by investing activities		4,375			(574	)

Net cash provided by financing activities		10,761,603			214,009

Effect of exchange rate changes on cash and cash equivalents and restricted cash		8,144			-

Increase (decrease) in cash and cash equivalents	$	9,062,900		$	(255,564	)

As of June 30, 2021, we had cash of $9,305,800, as compared to $242,900 as of December 31, 2020. As of June 30, 2021, we had a working capital of $8,904,187, as compared to a negative working capital of $290,062 as of December 31, 2020. The increase in our cash balance is mainly attributable to the Underwritten Offering described above and proceeds from convertible loans.

In view of our cash balance following the above transactions, we anticipate that our cash balances will be sufficient to permit us to conduct our operations for at least a period of twelve months from the date of the issuance of these unaudited condensed consolidated financial statements. We may also satisfy its liquidity through the sale of its securities, either in public or private transactions.

If we are unable to obtain sufficient amounts of additional capital, we may be required to reduce the scope of our planned development, which could harm our business, financial condition and operating results. If we obtain additional funds by selling any of our equity securities or by issuing Common Stock to pay current or future obligations, the percentage ownership of our stockholders will be reduced, stockholders may experience additional dilution, or the equity securities may have rights preferences or privileges senior to the Common Stock. If adequate funds are not available to us when needed on satisfactory terms, we may be required to cease operating or otherwise modify our business strategy.

Operating Activities

Net cash used in operating activities was $1,711,222 for the six months ended June 30, 2021, as compared to $468,999 for the six months ended June 30, 2020.

Investing Activities

Net cash provided by investing activities was $4,375 for the six months ended June 30, 2021, as compared to net cash used in investing activities of $574 for the six months ended June 30, 2020. The increase is mainly attributable to the increase in funds in respect of employee rights upon retirement.

Financing Activities

Net cash provided by financing activities was $10,761,603 for the six months ended June 30, 2021, as compared to $214,009 for the six months ended June 30, 2020. The increase is mainly the result of proceeds from to the Underwritten Offering described above and convertible loans.

Financial Arrangements

Since our inception, we have financed our operation primarily through proceeds from sales of our shares of Common Stock, convertible loan agreements and grants from the Israeli Innovation Authority, formerly known as the Office of the Chief Scientist of the Ministry of Economy and Industry.

During January 2021, we entered into a series of convertible loan agreements with an aggregate principal amount of $274,000 that each bear interest at a rate of 5% per annum.

On May 11, 2021 and May 12, 2021, we issued an aggregate of 66,877 shares of Common Stock following the conversion of convertible promissory notes in the aggregate principal amount of $499,000 and of aggregated accrued interest amount of $11,211, at a conversion price of $7.63 per share.

On May 18, 2021, we closed the Underwritten Offering pursuant to which we issued a total of 1,090,909 shares of our Common Stock at a purchase price of $11.00 per share. In connection with the Underwritten Offering, we agreed to grant ThinkEquity, a division of Fordham Financial Management, Inc. (the “Underwriters”), a 45-day option to purchase up to 163,636 additional shares of Common Stock at the public offering price of $11.00 per share, less the underwriting discounts and commissions solely to cover over-allotments, which was not exercised by the Underwriters, and to issue the Underwriters a five-year warrants to purchase up to 54,545 shares of Common Stock, at a per share exercise price equal to 125% of the Underwritten Offering price per share of Common Stock, or $13.75. The gross proceeds from the Underwritten Offering were approximately $12,000,000.

Off-Balance Sheet Arrangements

As of June 30, 2021, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4) of Regulation S-K.

Changes to Critical Accounting Policies and Estimates

Our critical accounting policies and estimates are set forth in our 2020 Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As a smaller reporting company, we are not required to provide the information required by this Item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Our management, including our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of June 30, 2021, the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, and due to certain material weaknesses identified by management, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective at a reasonable assurance level as of June 30, 2021.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting or in other factors identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1A. RISK FACTORS.

Our business faces many risks, a number of which are described under the caption “Risk Factors” in our 2020 Annual Report. Other than as set forth below, there have been no material changes from the risk factors previously disclosed in our 2020 Annual Report. The risks described in our 2020 Annual Report and below may not be the only risks we face. Other risks of which we are not yet aware, or that we currently believe are not material, may also materially and adversely impact our business operations or financial results. If any of the events or circumstances described in the risk factors contained in our 2020 Annual Report or described below occurs, our business, financial condition or results of operations could be adversely impacted and the value of an investment in our securities could decline. Investors and prospective investors should consider the risks described in our 2020 Annual Report and below, and the information contained under the caption “Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q before deciding whether to invest in our securities.

ITEM 6. EXHIBITS.

(a) The following documents are filed as exhibits to this Quarterly Report or incorporated by reference herein.

Exhibit
Number		Description

31.1*		Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act

31.2*		Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act

32.1**		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2**		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*		Inline XBRL Instance Document

101.INS*		Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

Filed herewith.

Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 16, 2021	SAVE FOODS INC.

	By:	/s/ David Palach
	Name:	David Palach
	Title:	Chief Executive Officer
		Save Foods, Inc.

	By:	/s/ Vered Raz Avayo
	Name:	Vered Raz Avayo
	Title:	Chief Financial Officer
		Save Foods, Inc.

SEC Form 10-Q filed by Save Foods Inc.