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| Name | Symbol | Market | Type |
|---|---|---|---|
| Xylo Technology Ltd | NASDAQ:XYLO | NASDAQ | Depository Receipt |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.2499 | 5.26% | 4.9999 | 4.24 | 22.00 | 5.00 | 4.41 | 4.77 | 6,116 | 05:00:11 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September
Commission File Number
(Translation of registrant’s name into English)
10 HaNechoshet Street Tel-Aviv, 6971072, Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
EXPLANATORY NOTE
This Report of Foreign Issuer on Form 6-K (“Form 6-K”) is being furnished by Xylo Technologies Ltd. (the “Company”) to the Securities and Exchange Commission (the “SEC”) for the sole purpose of furnishing: (i) unaudited, condensed consolidated financial statements of the Company as of and for six months ended June 30, 2024 and (ii) Management’s Discussion and Analysis of Financial Condition and Results of Operations, which discusses and analyzes the Company’s financial condition and results of operation as of and for the six months ended June 30, 2024.
This report on Form 6-K, other than Exhibit 99.3, is incorporated by reference into the Company’s Registration Statements on Form F-3 (File No. 333-271984) and Form S-8 (File No. 333-274190, No. 333-258624, No. 333-206803, No. 333-221019 and No. 333-229429).
1
SIGNATURE
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, thereunto duly authorized.
| XYLO TECHNOLOGIES LTD | ||
| Date: September 20, 2024 | By: | /s/ Tali Dinar |
| Tali Dinar | ||
| Chief Financial Officer | ||
2
EXHIBIT INDEX
| Exhibit | Description | |
| 99.1 | Interim Condensed Consolidated Financial Statements (Unaudited) as of June 30, 2024. | |
| 99.2 | Operating and Financial Review as of June 30, 2024, and for the Six Months then Ended. | |
| 101.INS | Inline XBRL Instance Document. | |
| 101.SCH | 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 as Inline XBRL and contained in Exhibit 101). |
3
Exhibit 99.1
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2024
TABLE OF CONTENTS
1
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| June 30, 2024 |
December 31, 2023 |
||||||||||
| Note | Unaudited | Audited | |||||||||
| USD in thousands | |||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | |||||||||||
| Short term deposits | |||||||||||
| Restricted cash | |||||||||||
| Trade accounts receivable | |||||||||||
| Other receivables | |||||||||||
| Inventory | |||||||||||
| Loans to associates | 7b2 | ||||||||||
| Loans to others | |||||||||||
| Related parties | 7b1 | ||||||||||
| Financial assets at fair value through profit or loss | 4A | ||||||||||
| NON-CURRENT ASSETS: | |||||||||||
| Property and equipment, net | |||||||||||
| Right-of-use assets, net | |||||||||||
| Investments accounted for using the equity method | 3B | ||||||||||
| Intangible assets, net | 5 | ||||||||||
| Deferred tax asset | |||||||||||
| Financial assets at fair value through profit or loss | 4A | ||||||||||
| TOTAL ASSETS | |||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
2
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| June 30, 2024 | December 31, 2023 | ||||||||||
| Note | Unaudited | Audited | |||||||||
| USD in thousands | |||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Trade accounts payable | |||||||||||
| Short-term loans | 3E | ||||||||||
| Current maturities of long-term loans | 3E | ||||||||||
| Short-term convertible loans | 3E | ||||||||||
| Lease liabilities | |||||||||||
| Embedded derivatives | 3E | - | |||||||||
| Liability to event producers | |||||||||||
| Warrants at fair value issued by subsidiaries | 3E | ||||||||||
| Related parties | 7b3 | ||||||||||
| Accrued expenses and other current liabilities | |||||||||||
| NON-CURRENT LIABILITIES: | |||||||||||
| Lease liabilities | - | ||||||||||
| Long-term loans | 3E | ||||||||||
| Deferred tax liability | |||||||||||
| Accrued severance pay, net | |||||||||||
| TOTAL LIABILITIES | |||||||||||
| EQUITY: | 6 | ||||||||||
| Share capital - ordinary shares with par value: authorized - June 30,2024 - | |||||||||||
| Share premium | |||||||||||
| Other capital reserves | |||||||||||
| Warrants | |||||||||||
| Accumulated deficit | ( | ) | ( | ) | |||||||
| Equity attributable to owners of Xylo Technologies Ltd | |||||||||||
| Non-controlling interests | 3A3 | ||||||||||
| TOTAL LIABILITIES AND EQUITY | |||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
3
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
LOSS
AND OTHER COMPREHENSIVE INCOME
| Six months ended June 30, | ||||||||||
| 2024 | 2023 | |||||||||
| Note | Unaudited | |||||||||
| USD in thousands | ||||||||||
| Revenues | 8 | |||||||||
| Products | ||||||||||
| Services | ||||||||||
| Cost of revenues: | ||||||||||
| Products | ||||||||||
| Services | ||||||||||
| Gross profit | ||||||||||
| Research and development expenses | ||||||||||
| Sales and marketing expenses | ||||||||||
| General and administrative expenses | ||||||||||
| Loss from changes in fair value of financial assets at fair value through profit or loss | 4 | |||||||||
| Equity losses | 3B2 | |||||||||
| Impairment of goodwill | 5 | |||||||||
| Operating loss | ( | ) | ( | ) | ||||||
| Loss from deconsolidation of Jeffs’ Brands | 1A | |||||||||
| Other income | ( | ) | ( | ) | ||||||
| Changes in fair value of warrants issued to investors | ( | ) | ||||||||
| Changes in fair value of warrants issued to third party investors by subsidiaries | ( | ) | ||||||||
| Loss in connection with issuance of warrants by a subsidiary | 3E | |||||||||
| Financial loss, net | ||||||||||
| Loss before taxes on income | ( | ) | ( | ) | ||||||
| Tax expenses (benefit) | ( | ) | ||||||||
| Net loss for the period | ( | ) | ( | ) | ||||||
| Other comprehensive income | ||||||||||
| Items that may be reclassified to profit or loss | ||||||||||
| Share of other comprehensive income of consolidated subsidiaries and associates accounted for using the equity method | ||||||||||
| Total comprehensive loss for the period | ( | ) | ( | ) | ||||||
| Net loss for the period is attributable to: | ||||||||||
| Owners of Xylo Technologies Ltd | ( | ) | ( | ) | ||||||
| Non-controlling interests | ( | ) | ( | ) | ||||||
| ( | ) | ( | ) | |||||||
| Total comprehensive loss for the period is attributable to: | ||||||||||
| Owners of Xylo Technologies Ltd | ( | ) | ( | ) | ||||||
| Non-controlling interests | ( | ) | ( | ) | ||||||
| ( | ) | ( | ) | |||||||
| Loss per ordinary share attributed to Xylo Technologies Ltd | ||||||||||
| Basic | ( | ) | ( | ) | ||||||
| Diluted | ( | ) | ( | ) | ||||||
| Weighted average ordinary shares outstanding (in thousands) | ||||||||||
| Basic | ||||||||||
| Diluted | ||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
4
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| Equity attributable to owners of Xylo Technologies Ltd | |||||||||||||||||||||||||||||||||||||||||||||||
| Note | Ordinary shares |
Share premium |
Capital reserves from options granted |
Other reserves |
Capital reserves from transactions with non- controlling interests |
Currency translation differences |
Warrants | Accumulated deficit |
Total | Non- controlling interests |
Total equity |
||||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||
| USD in thousands | |||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JANUARY 1, 2024 | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Loss for the period | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| TRANSACTIONS WITH SHAREHOLDERS: | |||||||||||||||||||||||||||||||||||||||||||||||
| Subsidiary’s share-based compensation to employees and service providers | |||||||||||||||||||||||||||||||||||||||||||||||
| Share based compensation to employees and service providers | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares by Viewbix Inc. | 3E | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
| Deconsolidation of Jeffs’ Brands | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Expiration of options | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL TRANSACTIONS WITH SHAREHOLDERS | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JUNE 30, 2024 | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
5
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| Equity attributable to owners of Xylo Technologies Ltd | |||||||||||||||||||||||||||||||||||||||||||||||
| Note | Ordinary shares | Share premium | Capital reserves from options granted | Other reserves | Capital reserves from transactions with non- controlling interests | Currency translation differences | Warrants | Accumulated deficit | Total | Non- controlling interests | Total equity | ||||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||
| USD in thousands | |||||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JANUARY 1, 2023 | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||||
| Loss for the period | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| TRANSACTIONS WITH SHAREHOLDERS: | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares in consideration for an investment | |||||||||||||||||||||||||||||||||||||||||||||||
| Subsidiary’s share-based compensation to employees and service providers | |||||||||||||||||||||||||||||||||||||||||||||||
| Share based compensation to employees and service providers | |||||||||||||||||||||||||||||||||||||||||||||||
| Dividend declared by subsidiaries | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||||
| Deemed issuance of shares by a subsidiary | |||||||||||||||||||||||||||||||||||||||||||||||
| Deemed stock exchange listing expenses | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares by Jeffs’ Brands | |||||||||||||||||||||||||||||||||||||||||||||||
| Transaction with non-controlling interest by Gix Internet | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||
| Expiration of options | ( | ) | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL TRANSACTIONS WITH SHAREHOLDERS | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JUNE 30, 2023 | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
6
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Unaudited | ||||||||
| USD in thousands | ||||||||
| CASH FLOWS USED IN OPERATING ACTIVITIES: | ||||||||
| Cash flows from (used in) operations (see Appendix A) | ( | ) | ||||||
| Interest paid | ( | ) | ( | ) | ||||
| Income tax paid | ( | ) | ( | ) | ||||
| Net cash flow used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS USED IN INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Acquisitions of an associate by Jeffs’ Brands | ( | ) | ||||||
| Acquisitions of investments at fair value through profit or loss | ( | ) | ||||||
| Deconsolidation of Jeffs’ Brands (see Appendix B) | ( | ) | ||||||
| Purchase of intangible assets by Jeffs’ Brands | ( | ) | ( | ) | ||||
| Loans to associates | ( | ) | ||||||
| Proceeds from sale of financial assets at fair value through profit or loss and securities of an associate | ||||||||
| Changes in short term deposits | ||||||||
| Net cash flow used in investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||||||||
| Cash paid to non-controlling interests by Viewbix Inc. | ( | ) | ||||||
| Proceeds from deemed issuance of shares by Charging Robotics Ltd. | ||||||||
| Receipt of short-term loans | ||||||||
| Repayment of short-term loans | ( | ) | ( | ) | ||||
| Receipt of long-term loans | ||||||||
| Repayment of long-term loans | ( | ) | ( | ) | ||||
| Receipts on account of shares and warrants issued by Viewbix Inc. (see note 3E) | ||||||||
| Dividend paid to non-controlling interests | ( | ) | ||||||
| Principal elements of lease liability | ( | ) | ( | ) | ||||
| Net cash flow used in financing activities | ( | ) | ( | ) | ||||
| DECREASE IN CASH AND CASH EQUIVALENTS | ( | ) | ( | ) | ||||
| BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | ||||||||
| GAINS FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS | ||||||||
| BALANCE OF CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | ||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
7
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
APPENDIX A TO THE INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS:
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Unaudited | ||||||||
| USD in thousands | ||||||||
| CASH FLOWS FROM (USED IN) OPERATIONS: | ||||||||
| Loss for the period before taxes on income | ( | ) | ( | ) | ||||
| Adjustment in respect of: | ||||||||
| Depreciation and amortization | ||||||||
| Loss from changes in fair value of financial assets at fair value through profit or loss | ||||||||
| Changes in fair value of warrants issued by subsidiaries | ( | ) | ||||||
| Equity losses | ||||||||
| Finance expenses (income) | ( | ) | ||||||
| Share based compensation to employees and service providers | ||||||||
| Deemed stock exchange listing expenses | ||||||||
| Loss from deconsolidation of Jeffs’ Brands | ||||||||
| Interest paid | ||||||||
| Income tax paid | ||||||||
| CHANGES IN OPERATING ASSET AND LIABILITY ITEMS: | ||||||||
| Decrease in trade accounts receivable | ||||||||
| Decrease (Increase) in inventory | ( | ) | ||||||
| Decrease (Increase) in other current assets | ( | ) | ||||||
| Decrease in trade accounts payable | ( | ) | ( | ) | ||||
| Decrease in accrued compensation expenses | ( | ) | ( | ) | ||||
| Increase (Decrease) in accrued expenses and other current liabilities | ( | ) | ||||||
| CASH FLOWS FROM (USED IN) OPERATIONS | ( | ) | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Income receivable from sale of shares (see note 3C) | ||||||||
| Non-cash investments in securities | ||||||||
| Non-cash sale and purchase of securities (see note 3I) | ( | ) | ||||||
| Consideration payable by Jeffs’ Brands to sellers of intangible assets | ||||||||
| Right of use assets obtained in exchange for lease liabilities | ||||||||
| Conversion of loan into Polyrizon shares (see note 3G) | ||||||||
| Deemed extinguishment and re-issuance of debt by Viewbix Inc. (see note 3E) | ||||||||
| Derecognition of right of use asset and lease liability upon lease termination (see note 3E) | ||||||||
8
XYLO TECHNOLOGIES LTD
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
APPENDIX B TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS:
| As
of January 28, 2024 |
||||
| USD in thousands |
||||
| Deconsolidation of Jeffs’ Brands: | ||||
| Net working capital other than cash | ( |
) | ||
| Property and equipment, net | ( |
) | ||
| Investments accounted for using the equity method | ( |
) | ||
| Intangible assets, net | ( |
) | ||
| Financial assets at fair value through profit or loss | ( |
) | ||
| Deferred tax asset | ( |
) | ||
| Lease liabilities | ||||
| Warrants at fair value issued by Jeffs’ Brands | ||||
| Derecognition of non-controlling interests | ||||
| Recognition of Jeffs' Brands shares as financial assets at fair value | ||||
| Recognition of Jeffs' Brands warrants as financial assets at fair value | ||||
Loss arising from deconsolidation |
||||
| Net cash deconsolidated upon loss of control | ||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
9
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL
| A. | Xylo Technologies Ltd (the “Company” or “Xylo”) was incorporated under the laws of the State of Israel on December 9, 1999. The Company’s registered office and principal place of business is located in Israel. The address of its registered office is Hanehoshet 10, Tel-Aviv POB 6971072, Israel. |
On April 1, 2024, the Company changed its name from Medigus Ltd. to Xylo Technologies Ltd.
The Company, together with its subsidiaries and associates, operate in the technology sector, focusing primarily on internet related activities, including ad tech and online events management, as well as on electronics, including the development of safety systems for commercial drones and electric vehicle wireless charging solutions.
Additionally, the Company is engaged in the licensing of intellectual property relating to its legacy product, the Medigus Ultrasonic Surgical Endostapler (“MUSE”), to Golden Grand Medical Instruments Ltd., a China based medical services provider, and in the investment of its excess cash resources, primarily in equity securities.
“Group” – the Company together with Charging Robotics Inc., GERD IP Inc., Eventer Technologies Ltd. and Gix Internet Ltd.
“Subsidiaries” – entities under the control of the Company.
These interim condensed consolidated financial statements were approved on September 17, 2024.
GERD IP, Inc.
As of June 30, 2024, the Company held
Eventer Technologies Ltd.
As of June 30, 2024, the Company held
For additional information, see note 3D.
10
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL (continued)
| A. | (continued) |
Gix Internet Ltd.
As of June 30, 2024, the Company held
For additional information, see note 3E.
Charging Robotics Inc.
As of June 30, 2024, the Company held
For additional information, see notes 3H and 3J.
Jeffs’ Brands Ltd.
As of December 31, 2023, the Company
held
On January 25, 2024, Jeffs’
Brands entered into a private placement transaction with certain institutional investors for aggregate gross proceeds of approximately
USD
The Company did not participate in
the private placement and as a result its holdings in Jeffs’ Brands decreased to
Throughout the period between March
2024 and June 2024, warrants were exercised by certain institutional investors. As a result, as of June 30, 2024, the Company held
11
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL (continued)
| A. | (continued) |
Interests in other entities
As of June 30, 2024, the Company also held
| B. | As of the approval date of these interim condensed consolidated financial
statements, the Company has cash and cash equivalents in the amount of USD |
However, since inception, the Company’s activities have been funded mainly by its shareholders. Furthermore, in recent years the Company has suffered recurring losses from operations, negative cash flows from operating activities, and has an accumulated deficit as of June 30, 2024.
As such, the Company’s ability to continue operating may be dependent on several factors, mainly its ability to raise sufficient additional funding, which may not necessarily be available to the Company or provide the Company with sufficient funds to meet its objectives.
During the second half of 2023 and the six months ended June 30, 2024, Viewbix Inc., Gix Internet’s subsidiary, experienced a decrease in its revenues from the digital content and search segments, as a result of a decrease in user traffic acquired from third party advertising platforms, an industry-wide decrease in advertising budget, changes and updates to internet browsers’ technology, which adversely impacted Viewbix’s Inc. ability to acquire traffic in the search segment and a decrease in revenues from routing of traffic acquired from third-party strategic partners in the search segment, as a result of lack of availability of suppliers credit from such third party strategic partners.
The decline in revenues and other circumstances described above raise substantial doubts about Viewbix Inc.’s ability to continue as a going concern during the 12-month period following the issuance date of these financial statements. The Company has no contractual obligations to support Viewbix Inc.
| C. | Iron Swords War |
On October 7, 2023, following the brutal attacks on Israel by Hamas, a terrorist organization located in the Gaza Strip that infiltrated Israel’s southern border and conducted a series of attacks on civilian and military targets, Israel’s security cabinet declared war (the “War”). Following the commencement of the War, hostilities also intensified between Israel and Hezbollah, a terrorist organization located in Lebanon. In the future, the War may escalate in the future into a greater regional conflict. The War led to a reduction of business activities in Israel, evacuation of residences located in the northern and southern borders of Israel and a significant call up of military reserves leading to lower participation in the work force. The activities of the Company’s subsidiary Eventer, which operates in the Israeli market, were directly affected by the War due to the decrease in physical events in Israel which directly affected Eventer’s revenues in this field.
The activities of the Company’s subsidiary Gix Internet were not directly affected by the War, as its customers are predominantly from the U.S., Europe and U.K. markets that were not influenced by the War. However, there is no assurance that future developments of the War will not have any impact for reasons beyond the Group’s control such as expansion of the War to additional regions and the recruitment of senior employees.
The Group has business continuity procedures in place, and will continue to follow developments, assessing potential impact, if any, on the Group’s business, financials and operations.
12
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 - BASIS FOR PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| A. | The Group’s interim condensed consolidated financial information as of June 30, 2024, and for the six-month period ended on that date (hereinafter - “The Interim Financial Information”) have been prepared in accordance with the guidance of IAS 34 ‘Interim Financial Reporting’. |
The Interim Financial Information has been prepared on the basis of the accounting policies adopted in the Group’s audited consolidated financial statements for the year ended December 31, 2023 (“2023 Annual Financial Statements”), which were prepared in accordance with International Financial Reporting Standards which are standards and interpretations thereto issued by the International Accounting Standard Board (hereinafter “IFRS”). This Interim Financial Information should be read in conjunction with the 2023 Annual Financial Statements and notes thereto issued on April 22, 2024.
The Interim Financial Information is unaudited, does not constitute statutory accounts and does not contain all the information and footnotes required by accounting principles generally accepted under IFRS for annual financial statements.
| B. | Estimates: |
The preparation of the interim condensed consolidated financial statements requires the Group’s management to exercise judgment and also requires use of accounting estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
In the preparation of these interim condensed consolidated financial statements, the significant judgments exercised by management in the application of the Group’s accounting policies and the uncertainty involved in the key sources of those estimates were identical to the ones used in the Group’s 2023 Annual Financial Statements.
| C. | Implementation of amendments to existing accounting standards: |
Amendments to IAS 1 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current
The amendments to IAS 1 published in January 2020 (“2020 Amendments”) affect only the presentation of liabilities as current or non-current in the statement of financial position and not the amount or timing of recognition of any asset, liability, income or expenses, or the information disclosed about those items.
The 2020 Amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of ’settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
In October 2022, additional amendments to IAS 1 were published (“2022 Amendments”). The 2022 Amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date (and therefore must be considered in assessing the classification of the liability as current or non-current). Such covenants affect whether the right exists at the end of the reporting period, even if compliance with the covenant. is assessed only after the reporting date (e.g. a covenant based on the entity’s financial position at the reporting date that is assessed for compliance only after the reporting date).
The IASB also specifies that the right to defer settlement of a liability for at least twelve months after the reporting date is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s right to defer settlement of a liability is subject to the entity complying with covenants within twelve months after the reporting period, an entity discloses information that enables users of financial statements to understand the risk of the liabilities becoming repayable within twelve months after the reporting period. This would include information about the covenants (including the nature of the covenants and when the entity is required to comply with them), the carrying amount of related liabilities and facts and circumstances, if any, that indicate that the entity may have difficulties complying with the covenants.
The 2020 Amendments and the 2022 Amendments are applied retrospectively for annual reporting periods beginning on or after January 1, 2024. The application of these amendments had no impact on the Group’s consolidated financial statements.
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XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 - BASIS FOR PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
| D. | New and revised IFRS Accounting Standards and interpretations issued but not yet effective and not early adopted by the Group, which are expected to impact the Group’s consolidated financial statements |
IFRS 18 “Presentation and Disclosure in Financial Statements” (IFRS 18)
On April 9, 2024, the IASB published IFRS 18, which replaces IAS 1 “Presentation of Financial Statements” (IAS 1). IFRS 18 aims to improve how information is communicated by entities in their financial statements.
IFRS 18 focuses on the following topics:
| 1. | Statement of Profit or Loss structure - presentation of new defined subtotals and classification of income and expenses into specified categories. |
| 2. | Improvements to the aggregation and disaggregation of information in both the primary financial statements and the accompanying notes. |
| 3. | Disclosing information on management-defined performance measures (MPMs) which are non-GAAP measures in the notes to the financial statements. |
Furthermore, amendments to other IFRS standards become effective when an applying IFRS 18, including changes to IAS 7 “Statement of Cash Flows”, which will enhance comparability between entities. The amendments mainly include: using the operating profit subtotal as the starting point for the indirect method of reporting cash flows from operating activities, and removing the presentation alternatives for cash flows related to interest and dividends paid and received. Consequently, except in specific cases, interest and dividends received will be classified as cash flows from investing activities, while interest and dividends paid will be classified as cash flows from financing activities.
The standard will be applied for annual reporting periods beginning on or after January 1, 2027 and will be applied retrospectively with specific transition requirements. Earlier application is permitted.
The Company is currently assessing the impact of adopting IFRS 18, including the impact of amendments to additional IFRS standards impacted by the adoption of IFRS 18, on the financial statements.
Amendments to IFRS 9 “Financial Instruments”
The main amendments to IFRS 9:
| ● | Introducing a derecognition option for derecognizing a financial liability that is settled via an electronic payment system before the settlement date, provided that: |
| a. | the entity has no practical ability to withdraw, stop or cancel the payment instruction; |
| b. | the entity has no practical ability to access the cash to be used for settlement as a result of the payment instruction; and |
| c. | the settlement risk associated with the electronic payment system is insignificant. |
An entity that elects to apply this derecognition option must apply it to all settlements made through the same electronic payment system.
| ● | Providing application guidance and illustrative examples on how an entity can assess whether the expected contractual cash flows of a financial asset reflect solely payments of principal and interest for the outstanding principal amount, for classifying the financial asset. |
| ● | Clarifying that a financial asset has non-recourse features if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets. |
| ● | Clarifying the characteristics of contractually linked instruments that distinguish them from other transactions. |
The amendments are effective for annual reporting periods beginning on or after January 1, 2026, and will be applied retrospectively. Early application is permitted if all the amendments are applied simultaneously or if the amendments applied are related only to the classification of financial assets. An entity is not required to restate prior periods to reflect the application of the amendments, but it may restate prior periods if, and only if, it is possible to do so without the use of hindsight.
The Company is currently assessing the impact of amendments to IFRS 9 on the financial statements.
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XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES
| A. | Investments in subsidiaries |
| 1. | Additional information about subsidiaries held by the Company |
| Main place of the business | Ownership rights held by the Company % | Ownership rights held by non- controlling interests % | |||||||||
| June 30, 2024 | |||||||||||
| Eventer | % | % | |||||||||
| Fuel Doctor | % | % | |||||||||
| GERD IP | % | % | |||||||||
| Gix Internet | % | % | |||||||||
| Main place of the business | Ownership rights held by the Company % | Ownership rights held by non- controlling interests % | |||||||||
| December 31, 2023 | |||||||||||
| Jeffs’ Brands | % | % | |||||||||
| Eventer | % | % | |||||||||
| Fuel Doctor | % | % | |||||||||
| GERD IP | % | % | |||||||||
| Gix Internet | % | % | |||||||||
15
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| A. | Investments in subsidiaries (continued) |
| 2. | Information related to non-controlling interests |
| June 30, 2024 | December 31, 2023 | |||||||
| USD in thousands | ||||||||
| Eventer | ||||||||
| Jeffs’ Brands | ||||||||
| Gix Internet | ||||||||
| GERD IP | ||||||||
| Fuel Doctor | ||||||||
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Eventer | ( | ) | ||||||
| Jeffs’ Brands | ( | ) | ( | ) | ||||
| Gix Internet | ( | ) | ( | ) | ||||
| Fuel Doctor | ( | ) | ( | ) | ||||
| ( | ) | ( | ) | |||||
16
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| B. | Investments accounted for using the equity method |
| 1. |
| June 30, 2024 | December 31, 2023 | |||||||
| USD in thousands | ||||||||
| Polyrizon | ||||||||
| SciSparc Nutraceuticals Inc | ||||||||
| A.I Conversation Systems | ||||||||
| Revoltz | ||||||||
| Zig Miami 54 | ||||||||
| 2. |
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Odysight.ai | - | |||||||
| Parazero | - | |||||||
| Laminera | - | |||||||
| Polyrizon | ||||||||
| SciSparc Nutraceuticals Inc. | ||||||||
| A.I Conversation Systems | - | |||||||
| Revoltz | ||||||||
17
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| B. | Investments accounted for using the equity method (continued) |
| 3. |
| Main place of business | Company rights in share capital and voting rights | ||||||
| June 30, 2024 | |||||||
| Laminera | % | ||||||
| Polyrizon | % | ||||||
| A.I Conversation Systems | % | ||||||
| Revoltz | % | ||||||
| Zig Miami 54 | % | ||||||
| December 31, 2023 | |||||||
| Laminera | % | ||||||
| Polyrizon | % | ||||||
| SciSparc Nutraceuticals | % | ||||||
| A.I Conversation Systems | % | ||||||
| Revoltz | % | ||||||
| Zig Miami 54 | % | ||||||
| 4. |
| June 30, 2024 | December 31, 2023 | |||||||||||||||
| Carrying amount | Quoted fair value | Carrying amount | Quoted fair value | |||||||||||||
| USD in thousands | ||||||||||||||||
| A.I Conversation System | ||||||||||||||||
18
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| C. | Odysight.ai |
As of December 31, 2022, the Company
held
On March 21, 2023, Odysight.ai completed
a private placement to existing stockholders, of
On May 17, 2023, the Company signed
a stock transfer agreement to sell its entire holdings in Odysight.ai for total proceeds of approximately USD
| D. | Eventer |
General
As of June 30, 2024, and December 31,
2023, the Company held
On August 27, 2024, Julian Azoulay,
Eventer’s CEO exercised options to acquire ordinary shares, and as a result the Company’s holdings in Eventer decreased to
On December 6, 2023, the Company
signed a share purchase agreement with Keshet Holdings LP (“Keshet”) to purchase its entire stake in Eventer for
consideration of USD
Exchange agreement
On October 14, 2020, the Company entered into an exchange agreement with Eventer’s shareholders, pursuant to which, during the period commencing on the second anniversary of the exchange agreement and ending fifty-four (54) months following the date of the exchange agreement, Eventer’s shareholders may elect to exchange all of their Eventer shares for ordinary shares of the Company. The Company treated the exchange agreement at the date of the business combination from accounting perspective as recognition of noncontrolling interests, in addition to the recognition of a liability in respect of a derivative (exchange options) which will be measured at fair value at each cut-off date. The changes in the fair value at each cut-off date will be recorded as a financial income/expense.
As of June 30, 2024, and December 31, 2023, the Company concluded that the fair value of this derivative is immaterial.
For more information, see contingent liabilities section below.
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XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| D. | Eventer (continued) |
Loan agreements between Eventer and the Company
On October 30, 2022, the Company and
Eventer signed an amendment pursuant to which the maturity date of the loans between Eventer and the Company was extended to May 30, 2024.
In the event Eventer issues securities in consideration of at least USD
As of the issuance date of these financial statements, the Company and Eventer are renegotiating the terms of the loan agreement.
Contingent liabilities
| a. | On December 14, 2022, a motion to certify a class action suit was filed against Eventer and two of its directors, alleging the violation of the provisions of the Prohibition of Discrimination in Products, Services, and Entry into Places of Entertainment and Public Places Law. The plaintiff claims that Eventer enables the allocation of different kinds of tickets to different groups (such as women, children etc.), thereby allowing structured discrimination. According to the opinion of Eventer’s legal counsel, the chances of the class action to be rejected are more likely than not both against Eventer and its directors. A hearing is scheduled for November27, 2024. |
| b. | On April 1, 2024, a lawsuit seeking declaratory judgement
was filed in the District Court of Tel Aviv-Jaffa in Israel by minority shareholders of Eventer against Eventer and the Company (together,
the “Defendants”). The minority shareholders of Eventer (the “Plaintiffs”), hold in aggregate |
The Plaintiffs allege, among others,
that the Defendants violated the agreement whereby the Company acquired control of Eventer (the “Purchase Agreement”), which
established a “separation” mechanism, pursuant to which certain Plaintiffs were granted an option to convert their shares
in Eventer into shares of the Company. The claim alleges that the Company has violated the terms of the Purchase Agreement by refusing
to negotiate Eventer’s valuation to enable certain of the Plaintiffs to exercise their option to convert their shares of Eventer
into shares of the Company. The Plaintiffs seek an aggregate of NIS
The Company submitted its response to the District Court of Tel Aviv – Jaffa and it intends to defend its position vigorously. As of the date of issuance of these financial statements, the Company is unable to estimate a loss or range of loss of this claim.
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XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| D. | Eventer (continued) |
Agreement with Screenz Cross Media Ltd.
Following the last amendment of the
agreement with Screenz Cross Media Ltd., a company indirectly controlled and managed by Eli Uzan who served as Eventer’s Director
(hereafter “Screenz”), in December 2022, it was determined that Screenz will have the first right to receive any money received
from Eventer and resulting from a digital ticketing platform for interactive virtual events up to a total amount of USD
Share based compensation grants
| 1. | On March 30, 2021, Eventer granted its CEO 29,944 options to purchase |
The fair value of this grant was approximately
NIS
| 2. | On March 30, 2021, Eventer granted Round Robin Ltd., which is one of the founding partners of Eventer, |
The fair value of this grant was approximately
NIS
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XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| E. | Gix Internet |
General
As of June 30, 2024, and December 31,
2023, the Company held
Gix Internet is the parent of Viewbix Inc. a publicly traded company which is the majority shareholder of Gix Media Ltd. (“Gix Media”). Gix Media is the majority holder of Cortex Media Group Ltd. (“Cortex”), a digital advertising platform that develops and markets a variety of technological platforms that automate, optimize and monetize digital online campaigns.
On June 4, 2024, Gix Internet signed a non-binding memorandum of understanding (“MOU”) with the shareholders of a robotics company specializing in artificial intelligence (“AI”) autonomous robotics solutions, mainly for logistics distributions in certain medical centers (“Robotics Company”).
Pursuant to
Pursuant to the MOU and subject to
the fulfillment of customary closing conditions in the forthcoming definitive agreement, the shareholders of the Robotics Company will
transfer all their shares to Gix Internet in exchange for
22
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| E. | Gix Internet (continued) |
Financing Agreement with Gix Media
On June 13, 2024, Gix Media and Bank
Leumi entered into an addendum to an existing loan agreement in the amount of USD
On September 11, 2024, Gix Media and Bank Leumi entered into an additional
addendum which was effective from August 30, 2024, pursuant to which, inter alia: (i) the addendum will be effective until February 27,
2025; (ii) Viewbix Inc. is obligated to transfer to Gix Media USD
Cortex Credit Line
On September 21, 2022, Cortex and Bank
Leumi entered into an addendum to an existing loan agreement (“Cortex Loan Agreement”) between the parties, dated August 15,
2021. As part of the addendum to the loan agreement, Bank Leumi provided Cortex with a monthly renewable credit line of USD
On April 27, 2023, Bank Leumi increased the Cortex Credit
Line by USD
In September 2023, Cortex and Bank Leumi entered into an
additional addendum to the Cortex Loan Agreement, in which Bank Leumi extended the Cortex Credit Line of USD
On May 27, 2024, Cortex and Bank Leumi entered into an amendment
to Cortex Loan Agreement, pursuant to which, the credit facility to Cortex will be
As of June 30, 2024, Cortex has drawn $
Loan agreement between the Company and Gix Internet
On February 8, 2024, the Company and Gix Internet signed an addendum to the loan agreement, effective as of January 1, 2024. Pursuant to the addendum, the loan repayment will be postponed until July 1, 2024. In addition, the Company will be entitled to request conversion of all or part of the balance loan in the following events (1) a change in the Gix Internet’s main business or entry into a new field of activity; or (2) completion of a transaction merger or consolidation with or into another corporation.
On August 22, 2024, the Company and Gix Internet signed an addendum to the loan agreement, effective as of July 1, 2024. Pursuant to the addendum, the loan repayment will be postponed until December 31, 2024.
23
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| E. | Gix Internet (continued) |
Loan agreement between the Company and Viewbix Ltd.
On November 15, 2023, the Company (along
with several lenders) signed a loan agreement with Viewbix Ltd., a wholly owned subsidiary of Viewbix Inc., in an aggregate amount of
USD
In connection with the 2023 Loan, Viewbix
Inc. issued to each lender a warrant to purchase shares of common stock (the “2023 Warrants”). The 2023 Warrants are exercisable
to
The terms of the 2023 Loan were substantially amended on June 18, 2024, by the June 2024 Facility Agreement (see below). These amendments represent a substantial modification in accordance with IFRS 9. Accordingly, the terms modification was accounted for as an extinguishment of the original financial liability and the initial recognition of new financial instruments issued at their fair value as of the effective date of the June 2024 Facility Agreement.
As a result of the substantial modification
of terms, the Group recognized a finance expense of USD
June 2024 Facility Agreement
On June 18, 2024, Viewbix Inc. entered into a credit facility agreement
which was amended and restated on July 22, 2024 (the “June 2024 Facility Agreement”) for a USD 1 million credit facility
(the “June 2024 Facility Loan Amount”) with a group of lenders including L.I.A. Pure Capital Ltd (the “June 2024 Lead
Lender”, and collectively, the “June 2024 Lenders”). In addition to the June 2024 Facility Loan Amount, the June 2024
Facility Agreement includes modification to the terms of the outstanding debt in the amount of USD
The term (the “June 2024 Facility
Term”) of the June 2024 Facility Agreement expires 12 months following the date of the June 2024 Facility Agreement (the
“Initial Maturity Date”), provided that, if the effectiveness of an uplisting of the Viewbix Inc. shares of common stock to
a national securities exchange (the “Uplist”) occurs prior to the Initial Maturity Date, the June 2024 Facility Term will
expire 12 months following the effective date of the Uplist. The June 2024 Facility Agreement sets forth a drawdown schedule
as follows: (i) an aggregate amount of USD
24
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| E. | Gix Internet (continued) |
The June 2024 Facility Loan Amount
accrues interest at a rate of
Immediately following the effectiveness
of the Uplist, (i) USD
The June 2024 Facility Warrants are
exercisable upon issuance at an exercise price of USD
In addition and in connection with
the June 2024 Facility Agreement, Viewbix Inc. agreed to pay the June 2024 Lead Lender a commission consisting of (i) 200,000 shares
of common stock, (ii) a warrant in substantially the same form and on substantially the same terms as the June 2024 Facility Warrant to
purchase
The conversion and conversion related features of the June 2024 facility loan were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each cut-off date. The facility loan was initially recorded at its fair value and subsequently measured at cost. The June 2024 Facility Warrant issued as prepayment of interest and the June 2024 Lead Lender Warrant were initially recognized at fair value and classified as a liability measured at fair value at each cut-off date (see note 4).
Following the June 2024 Facility Agreement,
Gix Internet’s holdings in Viewbix Inc. decreased from
25
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| E. | Gix Internet (continued) |
Private Placement
On July 3, 2024, Viewbix Inc. entered
into a definitive securities purchase agreement (the “Purchase Agreement”) with a certain investor (the “Lead Investor”)
for the purchase and sale in a private placement (the “Private Placement”) of units consisting of (i)
The PIPE Warrants are exercisable upon
issuance at an exercise price of USD
Upon the closing of the Private Placement,
Viewbix Inc. agreed to pay the Lead Investor: (1) USD
In July 2024, Viewbix Inc. issued to
the Investors
Following the Private Placement, Gix
Internet’s holdings in Viewbix Inc. decreased from
Stock Incentive Plan
On March 2, 2023, the Board of Directors
of Viewbix Inc. approved the adoption of the 2023 stock incentive plan (the “2023 Plan”).
As of June 30, 2024,
26
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| F. | Zig Miami 54 |
On September 13, 2023, the Company signed an operating agreement with Zig Investment Group LLC (“Zig Investment Group”), a Florida limited liability company, pursuant to which they formed a company, under the name Zig Miami 54 LLC (“Zig Miami 54”), a Florida limited liability company. The purpose of Zig Miami 54 is to acquire, improve, renovate, develop, manage, sell and otherwise deal with a commercial property located in Miami, Florida. The rights of Zig Miami 54 are exercised by Zig Investment Group, and the business and affairs of Zig Miami 54 are managed under the direction of Zig Investment Group (the “Manager”).
Under the terms of the agreement, the
Company invested an amount of USD
In addition, Zig Miami 54 is entitled
to receive a loan from the seller of the property (“Seller Loan”) in the amount of up to USD
Additionally, under the terms of the agreement, commencing upon completion
of phase I of the renovation work, the Manager shall distribute net cash from operations, with respect to each calendar quarter, during
the next succeeding calendar quarter, or more frequently as determined by the Manager.
Moreover, upon such time that
The closing of the agreement was on
December 15, 2023 (the “Closing”). Following the Closing, Zig Miami 54 acquired the commercial property for an aggregate amount
of USD
The Initial Capital Contribution includes
a loan and an investment. The Initial Capital Contribution was first allocated to the loan based on its fair value at the date of the
Closing in an amount of USD
The Loan is subsequently measured at
fair value through profit or loss (FVTPL). As of June 30, 2024, and December 31, 2023, the fair value of the Loan was USD
The Company did not obtain any substantive processes, assembled workforce, or employees capable of producing outputs in connection with the acquisition. Therefore, the transaction was accounted for as an asset acquisition, as the acquired assets did not meet the definition of a business as defined by IFRS 3, Business Combinations.
The Investment Purchase Price was fully allocated to the commercial property.
Additionally, the management of the Company assessed whether it has control over Zig Miami 54 in accordance with IFRS 10 and determined that it has significant influence over Zig Miami 54. As such, the investment was accounted for using the equity method in accordance with IAS 28.
27
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| G. | Polyrizon |
Investment in shares
As of December 31, 2023, the Company
held
On May 12, 2024, the Company converted
loans into
On July 2, 2024, the Company signed
a sale agreement to sell a portion of its stake of
Investment in options
In July 2020, the Company was granted
an option (the “Original Option”) to invest an additional amount of up to USD
On December 15, 2021, the Company was
granted a new option (the “Alternative Option”) to invest an amount of USD
The fair value was determined based
on management’s expectations for the IPO scenario. As of June 30, 2024, and December 31, 2023, the fair value of the Alternative
Option was
Convertible loan agreement
On February 12, 2023, the Company and
other lenders signed a convertible loan agreement with Polyrizon for an aggregate amount of USD
28
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| H. | Charging Robotics |
Charging Robotics is a company operating in the electric vehicle and wireless charging sector. Charging Robotics was formed as a wholly owned subsidiary of the Company on February 1, 2021.
On February 19, 2021, the Company entered into the venture agreement, with Mr. Amir Zaid and Mr. Weijian Zhou (the founders of Emuze Ltd., a privately held company that designs and develops electric mobility micro vehicles), and Charging Robotics (the “Venture Agreement”), under which the Company formed a venture, under the name Revoltz Ltd. (“Revoltz”), to develop and commercialize three modular electric vehicle (“EV”) micro mobility vehicles for urban individual use and “last mile” cargo delivery.
Under the terms of the Venture Agreement,
the Company invested an amount of USD
On July 28, 2022, Charging Robotics entered into a convertible loan
agreement with Revoltz pursuant to which Charging Robotics was required to invest an amount of USD
On March 28, 2023, the Company signed a securities exchange agreement with Fuel Doctor to sell all its shares in Charging Robotics to Fuel Doctor. See note 3J.
29
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| I. | SciSparc and Buffalo |
SciSparc is a company formed under the laws of the State of Israel. SciSparc listed its American Depository Shares on the OTCQB until December 7, 2021, after which SciSparc uplisted to NASDAQ.
Buffalo Investments Ltd. (“Buffalo”),
an Israeli private company, owned
In April 2022, the Buffalo Agreement was amended such that the Company extended the Purchase Period until June 7, 2022.
On June 30, 2022, the Buffalo Agreement
was amended such that the Company extended the Purchase Period until December 31, 2022, and Buffalo undertook to purchase
On March 16, 2023, the Company signed an amendment to the Buffalo Agreement (the “Amendment”).
According to the Amendment, instead
of purchasing
As a result, on March 16, 2023, the
Company recorded an amount of USD
As of June 30, 2024, the Company received
As of June 30, 2024, Colugo Systems’
Ltd. shares were not received. As such, they were recorded within other receivables in the consolidated statements of financial position
as of June 30, 2024, in an amount of USD
30
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| J. | Charging Robotics Inc. (Formally “Fuel Doctor” |
On December 21, 2021, the Company purchased
On March 28, 2023, the Company signed
a securities exchange agreement with Fuel Doctor to sell all its shares in Charging Robotics to Fuel Doctor in exchange for
As of June 30, 2024, and December 31,
2023, the Company held
| K. | Laminera |
On August 10, 2022, the Company signed
a bridge loan agreement with Laminera in the amount of USD
Management of the Company assessed
whether there is objective evidence that its net investment in Laminera was impaired. As Laminera continues to have zero revenues and
generate operating losses, and as the Company does not plan additional investments in Laminera, the Company considered the value of the
investment as of December 31, 2023. As the Company does not believe this investment will generate any cash flows in the foreseeable future,
the Company decided to write off the entire amount of the investment in Laminera and recorded an impairment loss of USD
In addition, the Company decided to
write off the entire amount of the loan and recognized a loss in the amount of USD
As of June 30, 2024, the Company held
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XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - INTEREST IN OTHER ENTITIES (continued)
| L. | Metagramm |
On April 13, 2023, the Company entered
into a share purchase agreement to acquire
As of June 30, 2024, and December 31, 2023, the Company held
In addition, pursuant to the share
purchase agreement, the Company loaned Metagramm USD
In the event that the pilot approval
is not successfully completed within 15 months after the Closing, Metagramm will repay the loan and any interest on a monthly basis. In
such case, the Company will have the option to receive additional shares of Metagramm, at no cost, in such number that immediately after,
the Company’s holdings in Metagramm will increase to
In addition, in the event of any fundraising
transaction, the Company will have the option to be reimbursed the full loan amount with accrued interest immediately following the fundraising
transaction or to convert the loan into Metagramm’s shares at a
For more information, see note 10.3
| M. | A.I Conversation Systems |
On August 23, 2022, the Company signed
a convertible loan agreement with A.I Artificial Intelligence Research and Development Ltd. (“A.I R&D”) for the assignment
of a loan it has given to A.I Conversation Systems, a public company traded in Tel Aviv. The original loan amount was NIS
According to the agreement, the loan
will bear an interest of
On February 16, 2023, the Company purchased
On June 13, 2023, the board of directors
of A.I Conversation Systems approved the conversion of the loan into shares, subject to the approval of the shareholders of A.I Conversation
Systems at the general meeting of the shareholders (the “General Meeting”). As such, the number of shares to be issued to
the Company determined to be
On September 5, 2023, the loan conversation
was approved during the General Meeting. As a result, the loan was converted into
The Company did not obtain any substantive processes, assembled workforce, or employees capable of producing outputs in connection with the acquisition. Therefore, the transaction was accounted for as an asset acquisition, as the acquired assets did not meet the definition of a business as defined by IFRS 3, Business Combinations.
32
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - FINANCIAL INSTRUMENTS
Below is an analysis of the financial instruments carried at fair value. The different levels have been defined as follows:
| ● | Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). |
| ● | Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 3). |
Financial assets
| A. |
| June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Level 1 | Level 3 | Total | Level 1 | Level 3 | Total | |||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||
| Safe Foods Inc. shares | ||||||||||||||||||||||||
| Maris-Tech Ltd. shares | ||||||||||||||||||||||||
| Maris-Tech Ltd. warrants | ||||||||||||||||||||||||
| Tondo Smart Ltd. shares | ||||||||||||||||||||||||
| Safee shares | ||||||||||||||||||||||||
| SciSparc shares | ||||||||||||||||||||||||
| Polyrizon warrants | ||||||||||||||||||||||||
| Jeffs’ Brands warrants | ||||||||||||||||||||||||
| Jeffs’ Brands shares | ||||||||||||||||||||||||
| Elbit Imaging Ltd. shares | ||||||||||||||||||||||||
| Hydreight Technologies Inc. shares | ||||||||||||||||||||||||
| Clearmind Medicine Inc. warrants | ||||||||||||||||||||||||
| Clearmind Medicine Inc. shares | ||||||||||||||||||||||||
| Metagramm shares | ||||||||||||||||||||||||
| Colugo Systems Ltd. shares | ||||||||||||||||||||||||
| Bubbles Intergroup Ltd. shares | ||||||||||||||||||||||||
| Automax Ltd warrants | ||||||||||||||||||||||||
| Automax Ltd. shares | ||||||||||||||||||||||||
| Elbit Medical Technologies Ltd. shares | ||||||||||||||||||||||||
| Parazero shares | ||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||
| B. | The following table presents the level 1 and level 3 fair value financial assets – loans to associates as of June 30, 2024, and December 31, 2023 |
| June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Level 1 | Level 3 | Total | Level 1 | Level 3 | Total | |||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||
| Loan to Revoltz | ||||||||||||||||||||||||
| Loan to Polyrizon | ||||||||||||||||||||||||
| Loan to Zig Miami 54 (note 3F) | ||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||
33
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - FINANCIAL INSTRUMENTS (continued)
Financial assets (continued)
| C. | The following table presents the level 1 and level 3 fair value financial assets included in other receivables as of June 30, 2024, and December 31, 2023 |
| June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Level 1 | Level 3 | Total | Level 1 | Level 3 | Total | |||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||
| Shares receivable from the Amendment of the Buffalo Agreement (note 3I) | ||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||
| D. |
| Safe Foods Inc shares | Tondo Smart Ltd shares | Bubbles Intergroup Ltd. shares | Jeffs’ Brands shares | Hydreight Technologies Inc shares | SciSparc shares | Maris-Tech Ltd. shares | Automax Ltd. warrants | Jeffs’ Brands warrants | Clearmind Medicine Inc. shares | Elbit Imaging Ltd. shares | Automax Ltd. shares | Parazero shares | Elbit
Medical Technologies Ltd. shares | Total | ||||||||||||||||||||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deconsolidation of Jeffs’ Brands | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net changes at fair value recognized through profit or loss | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||
| Sale of securities | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
34
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - FINANCIAL INSTRUMENTS (continued)
Financial assets (continued)
| E. |
| Maris- Tech Ltd. shares and warrants | Polyrizon warrants | Clearmind Medicine Inc. warrants | Jeffs’ Brands warrants | Safee shares | Colugo Systems Ltd. shares | Metagramm shares | Total | |||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||
| Balance as of January 1, 2024 | ||||||||||||||||||||||||||||||||
| Net changes at fair value recognized through profit or loss | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Deconsolidation of Jeffs’ Brands upon loss f control | ||||||||||||||||||||||||||||||||
| Balance as of June 30, 2024 | ||||||||||||||||||||||||||||||||
| F. |
| Loan to Revoltz | Loan to Polyrizon | Loan to Zig Miami 54 | Total | |||||||||||||
| USD in thousands | ||||||||||||||||
| Balance as of January 1, 2024 | ||||||||||||||||
| Net changes at fair value recognized through profit or loss | ( | ) | ||||||||||||||
| Loan conversion | ( | ) | ( | ) | ||||||||||||
| Balance as of June 30, 2024 | ||||||||||||||||
| G. |
| Shares receivable | Total | |||||||
| USD in thousands | ||||||||
| Balance as of January 1, 2024 | ||||||||
| Transfer to investments in shares | ( | ) | ( | ) | ||||
| Net changes at fair value recognized through profit or loss | ( | ) | ||||||
| Balance as of June 30, 2024 | ||||||||
35
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - FINANCIAL INSTRUMENTS (continued)
Financial liabilities
Level 3 financial liabilities:
As of December 31, 2023, the Group had financial liabilities measured at level 3 – mainly from derivative liabilities of Jeffs’ Brands.
As of June 30, 2024, the Group had financial liabilities measured at level 3 – mainly from the June 2024 Facility Agreement entered into by Viewbix Inc. (see note 3E).
The fair value of the financial instruments
under the June 2024 Facility Agreement, as of June 18, 2024, was calculated using the following inputs: share price: USD
The fair value of the financial instruments estimated by the Group’s management as of June 30 and June 18, 2024, was substantially the same.
| H. |
| June 30, 2024 |
December 31, 2023 |
|||||||
| USD in thousands | ||||||||
| Warrants at fair value issued by subsidiaries | ||||||||
| Embedded derivatives | ||||||||
| I. | The following table presents the Level 3 financial liabilities roll-forward: |
| Warrants | ||||
| USD in thousands |
||||
| Balance as of January 1, 2024 | ||||
| Deconsolidation of Jeffs’ Brands upon loss of control | ( |
) | ||
| Viewbix June 2024 Facility Agreement (see note 3E) | ||||
| Balance as of June 30, 2024 | ||||
36
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5 - GOODWILL AND INATANGIBLE ASSETS
| A. |
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Unaudited | Audited | |||||||
| USD in thousands | ||||||||
| Technology | ||||||||
| Customer relationship | ||||||||
| Patent | ||||||||
| Brand name | ||||||||
| Goodwill | ||||||||
| Intangible assets, net | ||||||||
| B. | Changes during the period: |
| A. | On January 25, 2024, Jeffs’ Brands entered into a private placement transaction with certain institutional
investors for aggregate gross proceeds of approximately USD |
| B. | As of June 30, 2024, the Group identified indicators of impairment of the online advertising and internet
traffic routing reporting unit. As a result, the Group performed an impairment test which included a quantitative analysis of the fair
value of the reporting unit. The fair value was estimated using the income approach, which is based on the present value of the future
cash flows attributable to the reporting unit. The Group compared the fair value of the reporting unit to its carrying amount. As the
carrying amount exceeded the fair value, the Group recognized an impairment loss of USD |
37
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6 - EQUITY
| a. | Share capital: |
| 1) |
| Number of shares | ||||||||||||||||
| Authorized | Issued and paid | |||||||||||||||
| June 30, | December 31, | June 30, | December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| In thousands | ||||||||||||||||
| Ordinary shares of no-par value | ||||||||||||||||
| 2) | The ordinary shares confer upon their holders’ voting rights and the right to participate in shareholders’ meetings, the right to receive dividends and the right to participate in surplus assets in the event of liquidation of the Company. |
| 3) | On
May 8, 2024, the Company issued |
| b. | Share based payments |
| In August 2013, the Company board of directors approved and adopted the Company 2013 Share Option and Incentive Plan, or the 2013 Plan, which expires in August 2023. The 2013 Plan provides for the issuance of shares and the granting of options, restricted shares, restricted share units and other share-based awards to employees, directors, officers, consultants, advisors, and service providers of us and the Company U.S. Subsidiary. The Plan provides for awards to be issued at the determination of the Company’s board of directors in accordance with applicable law.
In June 2021, the Company’s board of directors approved the grant of
In October 2021, the Company’s board of directors approved the grant of
The amounts of expenses that were recorded for options to employees and other service providers are USD |
38
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6 - EQUITY (continued)
| c. | Restricted Share Units
On June 15, 2023, the Board approved a grant of restricted share units (RSUs) to the Company’s Directors, Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), employees and to an advisor of the Company, subject to the approval of shareholders at the general meeting of the shareholders.
On August 8, 2023, the Company’s shareholders approved the RSUs grants at the Company’s annual general meeting. The RSUs shall vest over a period of
The RSUs grant will be in accordance and pursuant to Section 102 of the Income Tax Ordinance [New Version] (“Tax Ordinance”), if applicable, and the RSUs will be accelerated upon the closing of a material transaction, resulting in change of control of the Company.
During the six months ended June 30, 2024, the Company recognized an expense in the aggregated amount of USD |
39
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES
| a. | Transactions with related parties: |
| 1) |
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Compensations to key officers (1) | ||||||||
| Compensation to directors (2) | ||||||||
| Directors’ and Officers’ insurance | ||||||||
| Consultant services (3) | ||||||||
| Compensation to member of senior management of Gix Internet (4) | ||||||||
| Eventer revenues from related parties | ||||||||
| Jeffs’ Brands cost of revenues from related parties (5) | ||||||||
| Jeffs’ Brands income from related parties (6) | ( | ) | ( | ) | ||||
| Jeffs’ Brands royalties paid to related parties (7) | ||||||||
| Management fees from Jeffs’ Brands included in revenues (8) | ( | ) | ||||||
| Royalties from Jeffs’ Brands included in revenues (9) | ( | ) | ||||||
| Management fees from Parazero included in revenues (10) | ( | ) | ||||||
| (1) |
| (2) |
| (3) |
| (4) |
| (5) |
| (6) | |
| (7) |
| (8) |
| (9) |
|
| (10) |
40
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
| a. | Transactions with related parties: (continued) |
| 2) | Indemnification, exemption and insurance for directors and officers of the Company: |
| a. | The Company provides its directors and officers with an obligation for indemnification and exemption. |
| b. | The Company has a D&O liability insurance policy covering all the Company’s directors and officers. The current policy provides limits of USD |
| b. | Balances with related parties: |
| (1) |
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Other receivables (a related party of Gix Internet) | ||||||||
| Other receivables (a related party of Eventer) | ||||||||
| (2) |
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Loan to Zig Miami 54 (note 3F) | ||||||||
| Loan to Polyrizon | ||||||||
| Loan to Revoltz | ||||||||
41
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
| b. | Balances with related parties: (continued) |
| (3) |
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Loan to Metagramm | ||||||||
| Loan to Safee | ||||||||
| (4) |
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Compensation to key management personnel (*) | ||||||||
| Current liabilities to related parties of Jeffs’ Brands | ||||||||
| Other accrued expenses to related parties of Gix Internet | ||||||||
| Other accrued expenses to related parties of Eventer | ||||||||
| Loans from related parties of Viewbix Ltd. (note 3E) | ||||||||
| Derivative warrant liability to related parties of Viewbix Inc. (note 3E) | ||||||||
| Short-term convertible loans from related parties of Viewbix Inc. (note 3E) | ||||||||
| Embedded derivative to related parties of Viewbix Inc. (note 3E) | ||||||||
| * |
42
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 - REVENUES
| a. | Disaggregation of Revenues: |
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Revenues from commissions (from Eventer) | ||||||||
| Products (from Jeffs’ Brands) * | ||||||||
| Management fees (from Xylo Technologies) ** | ||||||||
| Revenues from internet services (from Gix Internet) | ||||||||
| (*) |
| (**) | |
| b. | Major customers |
| Six months ended June 30 |
||||||||
| 2024 | 2023 | |||||||
| USD in thousands | ||||||||
| Customer A | ||||||||
| Customer B | ||||||||
| Customer C | ||||||||
43
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9 - SEGMENTS
As of June 30, 2024, the Group identified seven operating segments as follows: corporate, e-commerce, online advertising & internet traffic routing, online event management, medical, real-estate and electronics.
The Company concluded that the medical, real-estate and electronics segments are not “reportable segments” as defined in IFRS 8, Operating Segments. As such, these segments were combined and disclosed under “Others”.
The CODM measures and evaluates the operating performance of the Group’s segments based on operating loss (income), assets and liabilities.
| June 30, 2024 | ||||||||||||||||||||||||||||
| Corporate | E-commerce | Online Advertising & Internet Traffic Routing |
Online Event Management | Others | Adjustments and eliminations |
Total | ||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||
| Total segments’ assets | (*) | |||||||||||||||||||||||||||
| Total segments’ liabilities | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
| (*) |
| December 31, 2023 | ||||||||||||||||||||||||||||
| Corporate | E-commerce | Online Advertising & Internet Traffic Routing | Online Event Management | Others | Adjustments and eliminations | Total | ||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||
| Total segments’ assets | (*) | ( | ) | |||||||||||||||||||||||||
| Total segments’ liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
| (*) |
44
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9 - SEGMENTS (continued)
The table set forth the operating results of the Group:
| Six months ended June 30, 2024 | ||||||||||||||||||||||||||||
| Corporate | E-commerce** | Online Advertising & Internet Traffic Routing |
Online Event Management |
Others | Adjustments and eliminations |
Total | ||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||
| External revenues | ||||||||||||||||||||||||||||
| Segment results - operating loss | ( |
) | ( |
) | ( |
) | ( |
) | ( |
)* | ( |
) | ( |
) | ||||||||||||||
| Non-operating income (loss) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
| Finance income (loss) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
| Loss before taxes on income | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
| Tax benefit (expense) on income | ||||||||||||||||||||||||||||
| Segment results - net loss | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
| * | |
| ** |
| Six months ended June 30, 2023 | ||||||||||||||||||||||||||||
| Corporate | E-commerce | Online Advertising & Internet Traffic Routing | Online Event Management | Others | Adjustments | Total | ||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||
| External revenues | ||||||||||||||||||||||||||||
| Segment results - operating income (loss) | ( | ) | ( | ) | ( | ) | ( | )* | ( | ) | ||||||||||||||||||
| Non-operating income | ||||||||||||||||||||||||||||
| Finance income (loss) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
| Profit (Loss) before taxes on income | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
| Tax benefit (expense) on income | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Segment results - net profit (loss) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
45
XYLO TECHNOLOGIES LTD
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10 - SUBSEQUENT EVENTS
| 1. | On July 3, 2024, Viewbix Inc. entered into a definitive securities purchase agreement (the “Purchase Agreement”) with a certain investor (the “Lead Investor”) for the purchase and sale in a private placement (the “Private Placement”). For more information, see note 3E. |
| 2. | On July 4, 2024, Viewbix Inc. entered into a credit facility agreement, as restated on July 22, 2024, and amended on July 25, 2024, for USD |
| 3. | On July 21, 2024, the Company and Metagramm signed an amendment to the agreement according to which after 3 months from the amendment
date, Metagramm will pay the Company USD |
| 4. | On July 2, 2024, the Company signed a sales agreement to sell a portion
of its stake of |
| 5. | On July 28, 2024, Viewbix Inc. entered into a second credit facility agreement for USD |
| 6. | On July 31, 2024, Viewbix Inc. entered into a Securities Exchange Agreement, with Metagramm pursuant to which Viewbix Inc. agreed
to issue to Metagramm |
| 7. | On August 5, 2024, the Company effected a ratio change which resulted in a reverse split of the Company’s American Depositary Receipt, or ADR, program on the basis of |
| 8. | On August 13, 2024, Polyrizon entered into an agreement with SciSparc for the purchase of an exclusive, worldwide, royalty-bearing license with respect to intellectual property rights associated with SciSparc’s SCI-160 platform (the “Licensed Patent Rights”), in order to research, develop and commercialize the Licensed Patent Rights in connection with the diagnosis, prevention, and treatment of pain in humans.
Pursuant to the terms of the agreement,
Additionally, SciSparc is eligible to receive royalties, on a country-by-country and product-by-product basis, at a rate of
In consideration for purchase of the license, Polyrizon issued to SciSparc |
46
Exhibit 99.2
Xylo Technologies Ltd.
Operating and Financial Review as of June 30, 2024, and for the six months then ended
The information contained in this section should be read in conjunction with (1) our unaudited interim condensed consolidated financial statements as of June 30, 2024, and for the six months then ended and related notes included in this report and (2) our audited consolidated financial statements as of December 31, 2023, and for the year then ended and related notes, which are embedded within our 2023 Form 20-F filed with the Securities and Exchange Commission on April 22, 2024, or the annual report, and the other information contained in such annual report. Factors that could cause our actual results in the future to differ from our expectations or projections include the risks and uncertainties relating to our business described in our annual report under the heading “Risk Factors”.
Forward-Looking Statements
This Report of Foreign Private Issuer on Form 6-K contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Xylo. The words “will,” “believe,” “expect,” “intend,” “plan,” “should” and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Xylo with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of Xylo to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, among others, the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance; the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, potential litigation associated with such transactions, and general risks associated with the business of Xylo, including intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this Report of Foreign Private Issuer on Form 6-K. Various other risks and uncertainties may affect Xylo and its results of operations, as described in reports filed by Xylo with the Securities and Exchange Commission from time to time, including its Annual Report. Xylo does not assume any obligation to update these forward-looking statements.
The terms “Xylo,” “Company,” “we,” “us” or “ours” in this Report of Foreign Private Issuer on Form 6-K refer to Xylo Technologies Ltd. and its subsidiaries, unless the context otherwise requires.
Overview
The activities carried out by us and our subsidiaries are focused on internet and other online-related technologies, e-commerce, medical-related devices, products and safety systems for drones and the electric vehicle (EV) sector.
Our internet-related activities include ad-tech operations through our stake in Gix Internet in which currently, we hold 45.75% of its outstanding share capital. Our internet related activities also include our investment in Eventer, an online – event management and ticketing platform in which as of June 30, 2024, we held 46.21 % of its outstanding share capital.
Our medical related activities include: innovative surgical devices with direct visualization capabilities for the treatment of Gastroesophageal Reflux Disease using Ultrasonic Surgical Endostapler, or MUSE and Polyrizon’s development of biological gels designed to protect patients against biological threats and reduce intrusion of allergens and viruses through the upper airways and eye cavities.
Our activity in the EV sector includes developing both wireless vehicle battery charging technology and three modular EVs through our stake in Charging Robotics Inc. (“Charging Robotics”) in which as of June 30, 2024. we held 67% of its outstanding share capital, with an option to increase our holdings to 71% of the outstanding share capital based on predetermined milestones.
Our activity in the drone products and safety field is conducted through our stake in Parazero Technologies Ltd. (“Parazero”) in which as of June 30, 2024, we held 18.09% of its outstanding share capital.
Our activity in the real estate sector includes acquiring, renovating, developing, managing, selling and otherwise dealing with commercial property located in Miami, Florida, through our majority held subsidiary, Zig Miami 54 LLC, in which we held, as of June 30, 2024, 60% of its outstanding share capital.
Internet and other online related Activity Overview
Gix Internet – Ad-Tech and Online Advertising
Gix Internet is the parent of Viewbix Inc. a publicly traded company (OTC: VBIX) (“Viewbix”) which is the majority shareholder of Gix Media Ltd. (“Gix Media”) following a corporate reorganization that was consummated on September 19, 2022 (the “Reorganization Transaction”). Gix Media is the majority holder of Cortex Media Group Ltd. (“Cortex”), a digital advertising platform that develops and markets a variety of technological platforms that automate, optimize and monetize digital online campaigns.
We consolidated Gix Internet’s financial statements as of February 28, 2022.
As of June 30, 2024, we held 45.75% of Gix Internet’s outstanding share capital. We have an option to increase our stake in Gix Internet to 48.11% of its outstanding share capital. The options are exercisable at a price of NIS 2.5 per share and set to expire on December 19, 2024.
Eventer Technologies Ltd. – Online Event Management
Eventer is a technology company engaged in the development of unique tools for automatic creation, management, promotion, and billing of events and ticketing sales. Eventer seeks to tap the growing demand for enterprise and private online communication. As such, Eventer’s systems offer and enable advanced, user-friendly solutions for online events such as online concerts, enterprise events and online conferences, in addition to management and ticket sales for events carried out in offline venues. In addition, Eventer’s platform provides individuals with the ability to create and sell tickets to custom small-scale private or public events. Eventer’s revenues are derived from commissions from sales of tickets for online and offline events planned and managed through its platform.
As of June 30, 2024, we held 46.21% of Eventer’s outstanding share capital.
Medical Activity Overview
Our MUSE™ System
We have been engaged in the development, production and marketing of innovative surgical devices with direct visualization capabilities for the treatment of Gastroesophageal Reflux Disease, a common ailment, which is predominantly treated by medical therapy (e.g. proton pump inhibitors) or in chronic cases, conventional open or laparoscopic surgery. Our product, the MUSE™ system for transoral fundoplication is a single use innovative device for the treatment of GERD disorder. The MUSE™ system is an endoscopic, incisionless solution that is used to perform a procedure as an alternative to a surgical fundoplication.
On June 3, 2019, we entered into the Golden Grand Agreement for the know-how licensing and sale of good relating to the MUSE™ system in China, Hong Kong, Taiwan and Macao. Four out of five predetermined milestones in the Golden Grand Agreement were completed during 2020 and 2021, and consequently 80% of the agreed payments were already transferred to us. The parties are having difficulty completing the last milestone and are currently discussing how to resolve the issue.
2
Polyrizon – Protective Biological Gels
Polyrizon is a clinical development biotech company specializing in the development of innovative nasal gels to provide preventative treatment against a wide cross section of viruses, as well as bacteria, allergens, and other toxins. Polyrizon’s proprietary Capture and Contain hydrogel platform is delivered in the form of nasal spray, and forms a thin gel-based protective shield containment barrier in the nasal cavity.
As of June 30, 2024, we held 38.31% of Polyrizon’s outstanding share capital. Following the sale of our stake in Polyrizon on July 2, 2024, of 662,980 shares, as of the date of this report, we hold 9.75% of Polyrizon’s issued and outstanding share capital.
Electric Vehicle Activity Overview
Charging Robotics Ltd. (through Fuel Doctor Holdings, Inc.)
Our activity in the EV sector includes developing both wireless vehicle battery charging technology and three modular EVs through our stake in Charging Robotics Inc. (“Charging Robotics”) in which we hold, as currently, 67% of its outstanding share capital, with an option to increase our holdings to 71% of the outstanding share capital based on predetermined milestones.
Other Activities
Parazero Ltd.
In 2022 we made multiple investments in Parazero, a company specializing in drone safety systems, through various transactions. As of December 31, 2023, we held 20.04% of Parazero’s issued and outstanding share capital. Parazero develops and provides drone safety solutions designed to protect people and payloads, providing a solution to reduce the risk of a drone’s malfunction in an urban environment.
Parazero completed its IPO on Nasdaq on July 28, 2023, and on October 30, 2023, closed a private placement transaction.
As of June 30, 2024 we held 18.09% of Parazero’s issued and outstanding share capital.
Zig Miami 54 LLC
On September 13, 2023, we signed an operating agreement with Zig Investment Group LLC (“Zig Investment Group”), a Florida limited liability company, pursuant to which they formed a company, under the name Zig Miami 54 LLC (“Zig Miami 54”), a Florida limited liability company. The purpose of Zig Miami 54 is to acquire, improve, renovate, develop, manage, sell and otherwise deal with a commercial property located in Miami, Florida. The rights of Zig Miami 54 are exercised by Zig Investment Group, and the business and affairs of Zig Miami 54 are managed under the direction of Zig Investment Group (the “Manager”). As of June 30, 2024, we held 60% of Zig Miami 54’s issued and outstanding share capital.
Revenues
Revenues for the six months ended June 30, 2024, were USD 19,303 thousand, a decrease of USD 34,082 thousand, or 63.8%, compared to USD 53,385 thousand for the six months ended June 30, 2023.
The decrease in revenues was primarily due to: (1) the decrease in Gix Internet’s revenues from internet services, mainly as a result of technological changes and changes in content policy in the advertising platforms.
(2) deconsolidation of Jeffs’ Brands as of January 28, 2024.
3
Cost of revenues
Cost of revenues for the six months ended June 30, 2024, were USD 15,144 thousand, a decrease of USD 30,041 thousand, or 66.5%, compared to cost of revenues of USD 45,185 thousand for the six months ended June 30, 2023. The decrease is primarily due to the decrease in cost of revenues of Gix Internet as a result of the decrease in revenues and the deconsolidation of Jeffs’ Brands as of January 28, 2024.
Gross Profit
Gross profit for the six months ended June 30, 2024, was USD 4,159 thousand, a decrease of USD 4,041 thousand, compared to gross profit of USD 8,200 thousand for the six months ended June 30, 2023.The decrease in gross profit was primarily due to decrease of sales related to Gix Internet.
Research and Development Expenses
Research and development expenses for the six months ended June 30, 2024, were USD 2,628 thousand, a decrease of USD 914 thousand, or 25.8%, compared to USD 3,542 thousand for the six months ended June 30, 2023. The decrease was primarily due to the reduction of expenses primarily in manpower and technological services in Gix Internet as part of a reduction costs program in Gix following the revenues decrease.
Sales and Marketing Expenses
Sales and marketing expenses for the six months ended June 30, 2024, were USD 1,832 thousand, a decrease of USD 478 thousand, or 20.7%, compared to USD 2,310 thousand for the six months ended June 30, 2023. The decrease was primarily due to the reduction of expenses in the Search and Content Platform, primarily in manpower and salaries in Gix as part of cost reduction program following revenues decrease. It was additionally affected by the deconsolidation of Jeffs’ Brands starting January 28, 2024.
General and Administrative Expenses
General and administrative expenses for the six months ended June 30, 2024, were USD 4,206 thousand, a decrease of USD 2,716 thousand, or 39.2%, compared to USD 6,922 thousand for the six months ended June 30, 2023.
The majority of the decrease was due to: (1) The deconsolidation of Jeffs’ Brands starting January 28, 2024; (2) decrease in the company professional services expenses mainly due to decrease in costs related to the sale of odysight.ai in 2023; and (3) decrease in general and administrative expenses of our subsidiary Eventer.
Net change in fair value of financial assets at fair value through profit or loss
For the six months ended June 30, 2024, the Company recognized a loss of USD 1,563 thousand from net change in fair value of these financial assets mainly due to expenses of USD 1,268 thousand related to the revaluation of the investment in Jeffs’ Brands as a result of the deconsolidation on January 28, 2024.
For the six months ended June 30, 2023, the Company recognized a loss of USD 3,978 thousand from net change in fair value of these financial assets mainly due to expenses of USD 2,946 thousand related to the sale of Odysight.ai Inc., formerly known as ScoutCam Inc., or “Odysight.ai” and expenses of USD 773 thousand from Automax Ltd.
4
Share of net loss of associates accounted for using the equity method
For the six months ended June 30, 2024, the Company recognized net losses of associates accounted for using the equity method of USD 187 thousand. The investments of the Company in each of Polyrizon, Revoltz, A.I. Conversation Systems, Zig Miami and SciSparc (as part of Jeffs’ Brands until January 28, 2024) are accounted for using the equity method.
For the six months ended June 30, 2023, the Company recognized net losses of associates accounted for using the equity method of USD 1,238 thousand, The investments of the Company in Polyrizon, Laminera, ParaZero, Revoltz, A.I. Conversation Systems, SciSparc and Odysight.ai (until March 21, 2023) are accounted for using the equity method.
Impairment of goodwill
During the six months ended June 30, 2024, we recognized an impairment loss of goodwill of USD 1,802 thousand mainly due to a decrease in the cash flow projections of the online advertising and internet traffic routing reporting unit.
Operating loss
The Company incurred an operating loss of USD 8,059 thousand for the six months ended June 30, 2024, a decrease of USD 1,731 thousand or 17.7%, compared to operating loss of USD 9,790 thousand for the six months ended June 30, 2023. The decrease is attributable to the changes in revenues, cost of revenues and operating expenses, as described above.
Change in Fair Value of Warrants Issued to Investors
There is no gain or loss from the change in fair value of the company’s warrants issued to investors for the six months ended on June 30,2024 due to the expiration of the warrants on July 19, 2023.
Gain from change in the fair value of warrants issued to third party investors by a consolidated subsidiary for the six months ended June 30, 2023, was USD 238 thousand.
Change in Fair Value of Warrants Issued to third party investors by a consolidated subsidiary
There was no gain or loss from change in fair value of warrants issued to third party investors by a consolidated subsidiary for the six months ended on June 30,2024 due to the deconsolidation of Jeffs’ Brands starting January 28, 2024.
Gain from change in the fair value of warrants issued to third party investors by a consolidated subsidiary for the six months ended June 30, 2023, was USD 1,017 thousand.
Loss in connection with issuance of warrant by subsidiaries
The Company incurred a loss in connection with the issuance of warrants by subsidiaries of USD 1,833 thousand for the six months ended June 30, 2024. The loss is due to the cost of warrants granted in Viewbix Inc. as part of certain loan agreements to which it is party.
5
Loss for the period
The Company incurred a net loss of USD 11,885 thousand or negative USD 0.28 per basic and diluted ordinary share for the six months ended June 30, 2024, an increase of USD 2,349 thousand, compared to a net loss of USD 9,536 thousand or negative USD 0.33 per basic and diluted ordinary share, for the six months ended June 30, 2023. The increase was primarily due to the decrease in the revenues as described above.
Cash flows:
The Company together with its subsidiaries had approximately USD 6,675 thousand in cash and cash equivalents as of June 30, 2024.
Net cash used in operating activities was USD 240 thousand for the six months ended June 30, 2024, compared to net cash used in operating activities of approximately USD 2,379 thousand for the six months ended June 30, 2023.
Net cash used in investing activities was approximately USD 49 thousand for the six months ended June 30, 2024.
Net cash used in investing activities was approximately USD 4,214 thousand for the six months ended June 30, 2023, and primarily from acquisitions of associates of USD 2,993 thousand and from purchasing of intangible assets by Jeffs’ Brands of USD 1,681 thousand.
Net cash used in financing activities was approximately USD 2,534 thousand for the six months ended June 30, 2024, and consisted primarily of receipt of short-term loans of USD 2,301 thousand offset by repayment of short and long-term loans of USD 5,031 thousand and of receipt on account of shares and warrants issued by Viewbix Inc. USD 236 thousand.
Net cash used in financing activities was approximately USD 1,409 thousand for the six months ended June 30, 2023, and consisted primarily of cash paid to non-controlling interests of USD 2,625 thousand as a result of the increase of additional 10% of Cortex by Gix Media and of receipt of short- and long-term loans of USD 2.5 million offset by dividend paid to non-controlling interests of USD 728 thousand and repayment of long-term loans of USD 874 thousand.
6
Document And Entity Information |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Document Information Line Items | |
| Entity Registrant Name | XYLO TECHNOLOGIES LTD |
| Document Type | 6-K |
| Current Fiscal Year End Date | --12-31 |
| Amendment Flag | false |
| Entity Central Index Key | 0001618500 |
| Document Period End Date | Jun. 30, 2024 |
| Document Fiscal Year Focus | 2024 |
| Document Fiscal Period Focus | Q2 |
| Entity File Number | 001-37381 |
Interim Condensed Consolidated Statements of Financial Position (Parentheticals) - $ / shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Statement of financial position [abstract] | ||
| Ordinary shares, par value (in Dollars per share) | ||
| Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
| Ordinary shares, shares issued | 28,851,761 | 27,989,465 |
| Ordinary shares, shares outstanding | 28,851,761 | 27,989,465 |
Interim Condensed Consolidated Statements of Changes In Equity - USD ($) $ in Thousands |
Ordinary shares |
Share premium |
Capital reserves from options granted |
Other reserves |
Capital reserves from transactions with non- controlling interests |
Currency translation differences |
Warrants |
Accumulated deficit |
Total |
Non- controlling interests |
Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE at Dec. 31, 2022 | $ 111,322 | $ 3,260 | $ 949 | $ 9,689 | $ (690) | $ 197 | $ (85,586) | $ 39,141 | $ 15,548 | $ 54,689 | |
| Statement [Line Items] | |||||||||||
| Loss for the period | (8,200) | (8,200) | (1,336) | (9,536) | |||||||
| Other comprehensive income | 139 | 139 | 167 | 306 | |||||||
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | 139 | (8,200) | (8,061) | (1,169) | (9,230) | ||||||
| Issuance of shares in consideration for an investment | 250 | 250 | 250 | ||||||||
| Subsidiary’s share-based compensation to employees and service providers | 51 | 51 | |||||||||
| Share based compensation to employees and service providers | 419 | 419 | 419 | ||||||||
| Dividend declared by subsidiaries | (153) | (153) | |||||||||
| Deemed issuance of shares by a subsidiary | 146 | 146 | 322 | 468 | |||||||
| Deemed stock exchange listing expenses | 290 | 290 | 290 | ||||||||
| Issuance of shares by Jeffs’ Brands | 100 | 100 | 188 | 288 | |||||||
| Transaction with non-controlling interest by Gix Internet | (522) | (522) | (2,103) | (2,625) | |||||||
| Expiration of options | 17 | (17) | |||||||||
| TOTAL TRANSACTIONS WITH SHAREHOLDERS | 267 | 402 | 390 | (376) | 683 | (1,695) | (1,012) | ||||
| BALANCE at Jun. 30, 2023 | 111,589 | 3,662 | 1,339 | 9,313 | (551) | 197 | (93,786) | 31,763 | 12,684 | 44,447 | |
| BALANCE at Dec. 31, 2023 | 112,883 | 2,787 | 1,239 | 8,955 | (875) | 197 | (101,610) | 23,576 | 8,859 | 32,435 | |
| Statement [Line Items] | |||||||||||
| Loss for the period | (8,167) | (8,167) | (3,718) | (11,885) | |||||||
| Other comprehensive income | 72 | 72 | 117 | 189 | |||||||
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | 72 | (8,167) | (8,095) | (3,601) | (11,696) | ||||||
| Subsidiary’s share-based compensation to employees and service providers | 56 | 56 | |||||||||
| Share based compensation to employees and service providers | 21 | 123 | 144 | 144 | |||||||
| Issuance of shares by Viewbix Inc. | (431) | (431) | 658 | 227 | |||||||
| Deconsolidation of Jeffs’ Brands | (5,245) | (5,245) | |||||||||
| Expiration of options | 9 | (9) | |||||||||
| TOTAL TRANSACTIONS WITH SHAREHOLDERS | 30 | 114 | (431) | 72 | (8,167) | (8,382) | (8,132) | (16,512) | |||
| BALANCE at Jun. 30, 2024 | $ 112,913 | $ 2,901 | $ 1,239 | $ 8,524 | $ (803) | $ 197 | $ (109,777) | $ 15,194 | $ 727 | $ 15,921 |
Additional Information of Consolidated Statements of Cash Flows - Odysight.ai $ in Thousands |
Jan. 28, 2024
USD ($)
|
|---|---|
| Deconsolidation of Jeffs’ Brands: | |
| Net working capital other than cash | $ (1,234) |
| Property and equipment, net | (58) |
| Investments accounted for using the equity method | (1,927) |
| Intangible assets, net | (6,551) |
| Financial assets at fair value through profit or loss | (50) |
| Deferred tax asset | (231) |
| Lease liabilities | 45 |
| Warrants at fair value issued by Jeffs’ Brands | 2,033 |
| Derecognition of non-controlling interests | 5,245 |
| Recognition of Jeffs' Brands shares as financial assets at fair value | 1,393 |
| Recognition of Jeffs' Brands warrants as financial assets at fair value | 159 |
| Loss arising from deconsolidation | 1,318 |
| Net cash deconsolidated upon loss of control | $ 142 |
General |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||
| General [Abstract] | |||||||
| GENERAL | NOTE 1 - GENERAL
On April 1, 2024, the Company changed its name from Medigus Ltd. to Xylo Technologies Ltd.
The Company, together with its subsidiaries and associates, operate in the technology sector, focusing primarily on internet related activities, including ad tech and online events management, as well as on electronics, including the development of safety systems for commercial drones and electric vehicle wireless charging solutions.
Additionally, the Company is engaged in the licensing of intellectual property relating to its legacy product, the Medigus Ultrasonic Surgical Endostapler (“MUSE”), to Golden Grand Medical Instruments Ltd., a China based medical services provider, and in the investment of its excess cash resources, primarily in equity securities.
“Group” – the Company together with Charging Robotics Inc., GERD IP Inc., Eventer Technologies Ltd. and Gix Internet Ltd.
“Subsidiaries” – entities under the control of the Company.
These interim condensed consolidated financial statements were approved on September 17, 2024.
GERD IP, Inc.
As of June 30, 2024, the Company held 90% of the issued and outstanding share capital of GERD IP, Inc. (“GERD IP”).
Eventer Technologies Ltd.
As of June 30, 2024, the Company held 46.21% of the issued and outstanding share capital of Eventer Technologies Ltd. (“Eventer”).
For additional information, see note 3D.
Gix Internet Ltd.
As of June 30, 2024, the Company held 45.75% of the issued and outstanding share capital of Gix Internet Ltd. (“Gix Internet”).
For additional information, see note 3E.
Charging Robotics Inc.
As of June 30, 2024, the Company held 67% of the issued and outstanding common stock of Charging Robotics Inc. (“Charging”).
For additional information, see notes 3H and 3J.
Jeffs’ Brands Ltd.
As of December 31, 2023, the Company held 34.11% of the issued and outstanding share capital of Jeffs’ Brands Ltd. (“Jeffs’ Brands”).
On January 25, 2024, Jeffs’ Brands entered into a private placement transaction with certain institutional investors for aggregate gross proceeds of approximately USD 7,275 thousand.
The Company did not participate in the private placement and as a result its holdings in Jeffs’ Brands decreased to 13.37% of Jeffs’ Brands issued and outstanding share capital, which resulted in loss of control in Jeffs’ Brands as of January 28, 2024. Accordingly, Jeffs’ Brands was deconsolidated as of such date and the remaining holdings were accounted for as financial assets at fair value through profit or loss (FVTPL). As a result, the Company recorded a loss of USD 1,318 thousand in the interim condensed consolidated statements of loss and other comprehensive income.
Throughout the period between March 2024 and June 2024, warrants were exercised by certain institutional investors. As a result, as of June 30, 2024, the Company held 4.52% of the issued and outstanding share capital of Jeffs’ Brands.
Interests in other entities
As of June 30, 2024, the Company also held 18.09% in Parazero Technologies Ltd. (“Parazero”), 38.31% in Polyrizon Ltd. (“Polyrizon”) (see note 3G), 19.7% in Laminera Flow Optimization Ltd. (“Laminera”) (see note 3K), 36.08% in A.I. Conversation Systems Ltd.(“A.I. Conversations Systems”) (see note 3M),19.99% in Metagramm Software Ltd (“Metagramm”) (see note 3L) and 60% in Zig Miami 54 LLC (“Zig Miami 54”) (see note 3F).
However, since inception, the Company’s activities have been funded mainly by its shareholders. Furthermore, in recent years the Company has suffered recurring losses from operations, negative cash flows from operating activities, and has an accumulated deficit as of June 30, 2024.
As such, the Company’s ability to continue operating may be dependent on several factors, mainly its ability to raise sufficient additional funding, which may not necessarily be available to the Company or provide the Company with sufficient funds to meet its objectives.
During the second half of 2023 and the six months ended June 30, 2024, Viewbix Inc., Gix Internet’s subsidiary, experienced a decrease in its revenues from the digital content and search segments, as a result of a decrease in user traffic acquired from third party advertising platforms, an industry-wide decrease in advertising budget, changes and updates to internet browsers’ technology, which adversely impacted Viewbix’s Inc. ability to acquire traffic in the search segment and a decrease in revenues from routing of traffic acquired from third-party strategic partners in the search segment, as a result of lack of availability of suppliers credit from such third party strategic partners.
The decline in revenues and other circumstances described above raise substantial doubts about Viewbix Inc.’s ability to continue as a going concern during the 12-month period following the issuance date of these financial statements. The Company has no contractual obligations to support Viewbix Inc.
On October 7, 2023, following the brutal attacks on Israel by Hamas, a terrorist organization located in the Gaza Strip that infiltrated Israel’s southern border and conducted a series of attacks on civilian and military targets, Israel’s security cabinet declared war (the “War”). Following the commencement of the War, hostilities also intensified between Israel and Hezbollah, a terrorist organization located in Lebanon. In the future, the War may escalate in the future into a greater regional conflict. The War led to a reduction of business activities in Israel, evacuation of residences located in the northern and southern borders of Israel and a significant call up of military reserves leading to lower participation in the work force. The activities of the Company’s subsidiary Eventer, which operates in the Israeli market, were directly affected by the War due to the decrease in physical events in Israel which directly affected Eventer’s revenues in this field.
The activities of the Company’s subsidiary Gix Internet were not directly affected by the War, as its customers are predominantly from the U.S., Europe and U.K. markets that were not influenced by the War. However, there is no assurance that future developments of the War will not have any impact for reasons beyond the Group’s control such as expansion of the War to additional regions and the recruitment of senior employees.
The Group has business continuity procedures in place, and will continue to follow developments, assessing potential impact, if any, on the Group’s business, financials and operations. |
Basis for Preparation of the Interim Condensed Consolidated Financial Statements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||
| Basis for Preparation of the Interim Condensed Consolidated Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||
| BASIS FOR PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | NOTE 2 - BASIS FOR PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Interim Financial Information has been prepared on the basis of the accounting policies adopted in the Group’s audited consolidated financial statements for the year ended December 31, 2023 (“2023 Annual Financial Statements”), which were prepared in accordance with International Financial Reporting Standards which are standards and interpretations thereto issued by the International Accounting Standard Board (hereinafter “IFRS”). This Interim Financial Information should be read in conjunction with the 2023 Annual Financial Statements and notes thereto issued on April 22, 2024.
The Interim Financial Information is unaudited, does not constitute statutory accounts and does not contain all the information and footnotes required by accounting principles generally accepted under IFRS for annual financial statements.
The preparation of the interim condensed consolidated financial statements requires the Group’s management to exercise judgment and also requires use of accounting estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
In the preparation of these interim condensed consolidated financial statements, the significant judgments exercised by management in the application of the Group’s accounting policies and the uncertainty involved in the key sources of those estimates were identical to the ones used in the Group’s 2023 Annual Financial Statements.
Amendments to IAS 1 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current
The amendments to IAS 1 published in January 2020 (“2020 Amendments”) affect only the presentation of liabilities as current or non-current in the statement of financial position and not the amount or timing of recognition of any asset, liability, income or expenses, or the information disclosed about those items.
The 2020 Amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of ’settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
In October 2022, additional amendments to IAS 1 were published (“2022 Amendments”). The 2022 Amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date (and therefore must be considered in assessing the classification of the liability as current or non-current). Such covenants affect whether the right exists at the end of the reporting period, even if compliance with the covenant. is assessed only after the reporting date (e.g. a covenant based on the entity’s financial position at the reporting date that is assessed for compliance only after the reporting date).
The IASB also specifies that the right to defer settlement of a liability for at least twelve months after the reporting date is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s right to defer settlement of a liability is subject to the entity complying with covenants within twelve months after the reporting period, an entity discloses information that enables users of financial statements to understand the risk of the liabilities becoming repayable within twelve months after the reporting period. This would include information about the covenants (including the nature of the covenants and when the entity is required to comply with them), the carrying amount of related liabilities and facts and circumstances, if any, that indicate that the entity may have difficulties complying with the covenants.
The 2020 Amendments and the 2022 Amendments are applied retrospectively for annual reporting periods beginning on or after January 1, 2024. The application of these amendments had no impact on the Group’s consolidated financial statements.
IFRS 18 “Presentation and Disclosure in Financial Statements” (IFRS 18)
On April 9, 2024, the IASB published IFRS 18, which replaces IAS 1 “Presentation of Financial Statements” (IAS 1). IFRS 18 aims to improve how information is communicated by entities in their financial statements.
IFRS 18 focuses on the following topics:
Furthermore, amendments to other IFRS standards become effective when an applying IFRS 18, including changes to IAS 7 “Statement of Cash Flows”, which will enhance comparability between entities. The amendments mainly include: using the operating profit subtotal as the starting point for the indirect method of reporting cash flows from operating activities, and removing the presentation alternatives for cash flows related to interest and dividends paid and received. Consequently, except in specific cases, interest and dividends received will be classified as cash flows from investing activities, while interest and dividends paid will be classified as cash flows from financing activities.
The standard will be applied for annual reporting periods beginning on or after January 1, 2027 and will be applied retrospectively with specific transition requirements. Earlier application is permitted.
The Company is currently assessing the impact of adopting IFRS 18, including the impact of amendments to additional IFRS standards impacted by the adoption of IFRS 18, on the financial statements.
Amendments to IFRS 9 “Financial Instruments”
The main amendments to IFRS 9:
An entity that elects to apply this derecognition option must apply it to all settlements made through the same electronic payment system.
The amendments are effective for annual reporting periods beginning on or after January 1, 2026, and will be applied retrospectively. Early application is permitted if all the amendments are applied simultaneously or if the amendments applied are related only to the classification of financial assets. An entity is not required to restate prior periods to reflect the application of the amendments, but it may restate prior periods if, and only if, it is possible to do so without the use of hindsight.
The Company is currently assessing the impact of amendments to IFRS 9 on the financial statements. |
Interest in Other Entities |
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| INTEREST IN OTHER ENTITIES | NOTE 3 - INTEREST IN OTHER ENTITIES
General information
Balance of non-controlling interests:
Net income (loss) attributed to non-controlling interests:
As of December 31, 2022, the Company held 27.02% of the outstanding common stock of Odysight.ai.
On March 21, 2023, Odysight.ai completed a private placement to existing stockholders, of 3,294,117 units, at a purchase price of USD 4.25 per unit, with each unit consisting of one share of Odysight.ai’s common stock and one warrant to purchase one share of Odysight.ai’s common stock at an exercise price of USD 5.50 per share. The Company did not participate in the private placement. Following the private placement, the Company’s holdings in Odysight.ai were diluted to 18.45% and the remaining holding was accounted for as investment at fair value through profit or loss (FVTPL). As a result of the transition, the Company recognized a loss of USD 2,946 thousand.
On May 17, 2023, the Company signed a stock transfer agreement to sell its entire holdings in Odysight.ai for total proceeds of approximately USD 5.7 million.
General
As of June 30, 2024, and December 31, 2023, the Company held 46.21% of Eventer’s issued and outstanding common stock.
On August 27, 2024, Julian Azoulay, Eventer’s CEO exercised options to acquire ordinary shares, and as a result the Company’s holdings in Eventer decreased to 44.52%.
On December 6, 2023, the Company signed a share purchase agreement with Keshet Holdings LP (“Keshet”) to purchase its entire stake in Eventer for consideration of USD 250 thousand which will be paid in the Company’s shares. The closing of the transaction is expected to occur in the near future, and as a result, the Company’s holdings in Eventer are expected to increase to 58.44%.
Exchange agreement
On October 14, 2020, the Company entered into an exchange agreement with Eventer’s shareholders, pursuant to which, during the period commencing on the second anniversary of the exchange agreement and ending fifty-four (54) months following the date of the exchange agreement, Eventer’s shareholders may elect to exchange all of their Eventer shares for ordinary shares of the Company. The Company treated the exchange agreement at the date of the business combination from accounting perspective as recognition of noncontrolling interests, in addition to the recognition of a liability in respect of a derivative (exchange options) which will be measured at fair value at each cut-off date. The changes in the fair value at each cut-off date will be recorded as a financial income/expense.
As of June 30, 2024, and December 31, 2023, the Company concluded that the fair value of this derivative is immaterial.
For more information, see contingent liabilities section below.
Loan agreements between Eventer and the Company
On October 30, 2022, the Company and Eventer signed an amendment pursuant to which the maturity date of the loans between Eventer and the Company was extended to May 30, 2024. In the event Eventer issues securities in consideration of at least USD 2 million or in the event of an IPO or rights offering (the “Investment”), then the outstanding loans will automatically be converted into shares. The number of shares will be calculated by dividing the outstanding balance as of the closing date of the Investment by a price per share which shall reflect a 20% discount off the lowest price per share paid in the Investment.
As of the issuance date of these financial statements, the Company and Eventer are renegotiating the terms of the loan agreement.
Contingent liabilities
The Plaintiffs allege, among others, that the Defendants violated the agreement whereby the Company acquired control of Eventer (the “Purchase Agreement”), which established a “separation” mechanism, pursuant to which certain Plaintiffs were granted an option to convert their shares in Eventer into shares of the Company. The claim alleges that the Company has violated the terms of the Purchase Agreement by refusing to negotiate Eventer’s valuation to enable certain of the Plaintiffs to exercise their option to convert their shares of Eventer into shares of the Company. The Plaintiffs seek an aggregate of NIS 1,229 thousand from Eventer due to claims of breach of agreements (approximately USD 335 thousand) and seek an aggregate of NIS 8,602 thousand from the Company as consideration for the Plaintiffs’ shares in Eventer or as an alternative remedy, to convert Eventer’s shares into the Company shares for an aggregate value of NIS 8,602 thousand (approximately USD 2,348 thousand) following which all the Plaintiffs shares in Eventer would be transferred to the Company.
The Company submitted its response to the District Court of Tel Aviv – Jaffa and it intends to defend its position vigorously. As of the date of issuance of these financial statements, the Company is unable to estimate a loss or range of loss of this claim.
Agreement with Screenz Cross Media Ltd.
Following the last amendment of the agreement with Screenz Cross Media Ltd., a company indirectly controlled and managed by Eli Uzan who served as Eventer’s Director (hereafter “Screenz”), in December 2022, it was determined that Screenz will have the first right to receive any money received from Eventer and resulting from a digital ticketing platform for interactive virtual events up to a total amount of USD 480 thousand. As of June 30, 2024, the Company concluded that the fair value of this commitment is immaterial given the uncertainty of generating revenues by Eventer from interactive virtual events.
Share based compensation grants
The fair value of this grant was approximately NIS 1,668 thousand (USD 473 thousand). For the six months ended June 30, 2024, and 2023, NIS 0 thousand (USD 0 thousand) and NIS 91 thousand (approximately USD 25 thousand), respectively, were recognized and recorded as expenses.
The fair value of this grant was approximately NIS 1,668 thousand (USD 473 thousand). For the six months ended June 30, 2024, and 2023, NIS 0 thousand (USD 0 thousand) and NIS 91 thousand (approximately USD 25 thousand), respectively, were recognized and recorded as expenses.
General
As of June 30, 2024, and December 31, 2023, the Company held 45.75% of the issued and outstanding share capital of Gix Internet.
Gix Internet is the parent of Viewbix Inc. a publicly traded company which is the majority shareholder of Gix Media Ltd. (“Gix Media”). Gix Media is the majority holder of Cortex Media Group Ltd. (“Cortex”), a digital advertising platform that develops and markets a variety of technological platforms that automate, optimize and monetize digital online campaigns.
On June 4, 2024, Gix Internet signed a non-binding memorandum of understanding (“MOU”) with the shareholders of a robotics company specializing in artificial intelligence (“AI”) autonomous robotics solutions, mainly for logistics distributions in certain medical centers (“Robotics Company”).
Pursuant to the MOU, subject to the negotiation and execution of a definitive agreement, Gix Internet will execute a share exchange transaction with the Robotics Company. Subject and upon completion of the contemplated transaction, the Robotics Company is set to become a wholly owned subsidiary of Gix Internet.
Pursuant to the MOU and subject to the fulfillment of customary closing conditions in the forthcoming definitive agreement, the shareholders of the Robotics Company will transfer all their shares to Gix Internet in exchange for 30% of the issued and outstanding ordinary shares of Gix Internet. The shareholders of the Robotics Company will have the option to increase their holdings to 37.5% and 45% of the issued and outstanding shares of Gix Internet upon completion of two separate commercial milestones.
Financing Agreement with Gix Media
On June 13, 2024, Gix Media and Bank Leumi entered into an addendum to an existing loan agreement in the amount of USD 4,989 thousand between the parties which was effective as of May 15, 2024, pursuant to which: (i) the addendum will be effective until August 31, 2024; (ii) Viewbix Inc. is obligated to transfer to Gix Media USD 600 thousand; (iii) a new covenant, measured by reference to positive EBTIDA was implemented; (iv) all payments due to Bank Leumi long-term bank loan were deferred to August 31, 2024 and from September 1, 2024, payments will be repaid as schedule until the end of the long-term bank loan; (v) a new USD 350 thousand loan was granted to Gix Media on June 13, 2024, to be repaid until August 30, 2024, alongside the existing credit facility to Gix Media, which remains equal to 80% of Gix Media’s customer balance; and (vi) Gix Media is obligated to perform a reduction in expenses, including reduction in force.
On September 11, 2024, Gix Media and Bank Leumi entered into an additional addendum which was effective from August 30, 2024, pursuant to which, inter alia: (i) the addendum will be effective until February 27, 2025; (ii) Viewbix Inc. is obligated to transfer to Gix Media USD 2 million until December 31, 2024; (iii) all payments due to Bank Leumi long-term bank loan were deferred to December 31, 2024 and from January 1, 2025, payments will be repaid as schedule until the end of the long-term bank loan.
Cortex Credit Line
On September 21, 2022, Cortex and Bank Leumi entered into an addendum to an existing loan agreement (“Cortex Loan Agreement”) between the parties, dated August 15, 2021. As part of the addendum to the loan agreement, Bank Leumi provided Cortex with a monthly renewable credit line of USD 1,500 thousand (the “Cortex Credit Line”). The Cortex Credit Line is determined every month at the level of 70% of Cortex’s customers’ balance. The amounts that are drawn from the Cortex Credit Line bear an annual interest of SOFR + 3.52% (Overnight Financing Rate Secured, guaranteed daily interest as determined in accordance with the Federal Bank in New York).
On April 27, 2023, Bank Leumi increased the Cortex Credit Line by USD 1,000.
In September 2023, Cortex and Bank Leumi entered into an additional addendum to the Cortex Loan Agreement, in which Bank Leumi extended the Cortex Credit Line of USD 2,500 by one year which will expire on September 20, 2024. The amounts that are drawn from the Cortex Credit Line bear an annual interest of SOFR + 4.08%.
On May 27, 2024, Cortex and Bank Leumi entered into an amendment to Cortex Loan Agreement, pursuant to which, the credit facility to Cortex will be 80% of Cortex’s customer balance and up to $2,000.
As of June 30, 2024, Cortex has drawn $800 of the Cortex Credit Line.
Loan agreement between the Company and Gix Internet
On February 8, 2024, the Company and Gix Internet signed an addendum to the loan agreement, effective as of January 1, 2024. Pursuant to the addendum, the loan repayment will be postponed until July 1, 2024. In addition, the Company will be entitled to request conversion of all or part of the balance loan in the following events (1) a change in the Gix Internet’s main business or entry into a new field of activity; or (2) completion of a transaction merger or consolidation with or into another corporation.
On August 22, 2024, the Company and Gix Internet signed an addendum to the loan agreement, effective as of July 1, 2024. Pursuant to the addendum, the loan repayment will be postponed until December 31, 2024.
The Company concluded that the modified loan terms do not represent a substantial modification in accordance with IFRS 9.
Loan agreement between the Company and Viewbix Ltd.
On November 15, 2023, the Company (along with several lenders) signed a loan agreement with Viewbix Ltd., a wholly owned subsidiary of Viewbix Inc., in an aggregate amount of USD 480 thousand. The Company’s portion in this loan was USD 200 thousand (the “2023 Loan”).
In connection with the 2023 Loan, Viewbix Inc. issued to each lender a warrant to purchase shares of common stock (the “2023 Warrants”). The 2023 Warrants are exercisable to 480,000 shares of common stock, at an exercise price of USD 0.50 per share and will expire and cease to be exercisable on December 31, 2025.
The terms of the 2023 Loan were substantially amended on June 18, 2024, by the June 2024 Facility Agreement (see below). These amendments represent a substantial modification in accordance with IFRS 9. Accordingly, the terms modification was accounted for as an extinguishment of the original financial liability and the initial recognition of new financial instruments issued at their fair value as of the effective date of the June 2024 Facility Agreement.
As a result of the substantial modification of terms, the Group recognized a finance expense of USD 300 thousand and USD 1,833 thousand was recognized as a loss in connection with issuance of warrants in its interim condensed consolidated statement of loss and other comprehensive income for the six months period ended June 30, 2024
June 2024 Facility Agreement
On June 18, 2024, Viewbix Inc. entered into a credit facility agreement which was amended and restated on July 22, 2024 (the “June 2024 Facility Agreement”) for a USD 1 million credit facility (the “June 2024 Facility Loan Amount”) with a group of lenders including L.I.A. Pure Capital Ltd (the “June 2024 Lead Lender”, and collectively, the “June 2024 Lenders”). In addition to the June 2024 Facility Loan Amount, the June 2024 Facility Agreement includes modification to the terms of the outstanding debt in the amount of USD 531 thousand owed by Viewbix Inc. to the June 2024 Lenders (the “June 2024 Prior Loan Amount”, and together with the June 2024 Facility Loan Amount, the “June 2024 Loan Amount”).
The term (the “June 2024 Facility Term”) of the June 2024 Facility Agreement expires 12 months following the date of the June 2024 Facility Agreement (the “Initial Maturity Date”), provided that, if the effectiveness of an uplisting of the Viewbix Inc. shares of common stock to a national securities exchange (the “Uplist”) occurs prior to the Initial Maturity Date, the June 2024 Facility Term will expire 12 months following the effective date of the Uplist. The June 2024 Facility Agreement sets forth a drawdown schedule as follows: (i) an aggregate amount of USD 350 thousand was drawn down on the date of the Prior June 2024 Facility Agreement, (ii) an aggregate amount of USD 150 thousand drawn down upon the filing of the Company’s PIPE Registration Statement (as defined below) and (iii) an amount of USD 500 thousand drawn down upon the effectiveness of the Uplist.
The June 2024 Facility Loan Amount accrues interest at a rate of 12% per annum, and Viewbix Inc. will also pay such interest on the June 2024 Prior Loan Amount, which is equal to USD 184 thousand (the “June 2024 Facility Interest”). The June 2024 Facility Interest was paid in advance for the first year of the June 2024 Facility in (i) shares of Viewbix Inc.’s common stock at a conversion rate of USD 0.25 for each U.S. dollar of June 2024 Facility Interest accrued on the respective June 2024 Loan Amount, equal to an aggregate of 734,716 shares of common stock (the “June 2024 Facility Shares”) and (b) a warrant to purchase a number of shares of common stock equal to the June 2024 Facility Shares (the “June 2024 Facility Warrant”).
Immediately following the effectiveness of the Uplist, (i) USD 663 thousand of the June 2024 Loan Amount will convert into shares of common stock at a conversion rate equal to USD 0.25 per share of Viewbix Inc.’s common stock (the “June 2024 Convertible Stock”) and (ii) Viewbix Inc. will issue a warrant in substantially the same form and on substantially the same terms as a June 2024 Facility Warrant to purchase a number of shares of Viewbix Inc.’s common stock equal to the June 2024 Convertible Stock with an exercise price of USD 0.25 per share (the “June 2024 Conversion Warrant”, and (i) and (ii), collectively a “June 2024 Conversion Unit”). Such portion of the June 2024 Loan Amount that is not converted into a June 2024 Conversion Unit will remain outstanding and will not convert following the Uplist. For the duration of the June 2024 Facility Term of the June 2024 Facility Agreement, the June 2024 Lenders may elect to convert after the effectiveness of the Uplist such unconverted portion of the June 2024 Loan Amount into additional June 2024 Conversion Units or, upon the expiration of the June 2024 Facility Term, such unconverted portion of the June 2024 Loan Amount will be repaid in accordance with the terms of the June 2024 Facility Agreement.
The June 2024 Facility Warrants are exercisable upon issuance at an exercise price of USD 0.25 per share of common stock and will have a three-year term from the issuance date.
In addition and in connection with the June 2024 Facility Agreement, Viewbix Inc. agreed to pay the June 2024 Lead Lender a commission consisting of (i) 200,000 shares of common stock, (ii) a warrant in substantially the same form and on substantially the same terms as the June 2024 Facility Warrant to purchase 200,000 shares of common stock with an exercise price of USD 0.25 per share (the “June 2024 Lead Lender Warrant”) and (iii) a warrant to purchase 2,500,000 shares of common stock with an exercise price of USD 1.00 per share, representing an aggregate exercise amount of USD 2.5 million, subject to beneficial ownership limitations and adjustments (the “June 2024 Lead Lender Fee Warrant” and together with the June 2024 Lead Lender Warrant and the June 2024 Facility Warrants, the “June 2024 Warrants”).
The conversion and conversion related features of the June 2024 facility loan were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each cut-off date. The facility loan was initially recorded at its fair value and subsequently measured at cost. The June 2024 Facility Warrant issued as prepayment of interest and the June 2024 Lead Lender Warrant were initially recognized at fair value and classified as a liability measured at fair value at each cut-off date (see note 4).
Following the June 2024 Facility Agreement, Gix Internet’s holdings in Viewbix Inc. decreased from 76% to 71.11%. The transaction was recorded as a transaction with non-controlling interests in the Group’s consolidated statements of changes in shareholders equity for the period ended June 30, 2024.
Private Placement
On July 3, 2024, Viewbix Inc. entered into a definitive securities purchase agreement (the “Purchase Agreement”) with a certain investor (the “Lead Investor”) for the purchase and sale in a private placement (the “Private Placement”) of units consisting of (i) 1,027,500 shares of Viewbix Inc.’s common stock at a purchase price of USD 0.25 per share (the “PIPE Shares”) and (ii) common stock purchase warrants to purchase up to 1,541,250 shares of Viewbix Inc.’s common stock (the “PIPE Warrants”) to the Lead Investor and other investors (collectively, the “Investors”) acceptable to the Lead Investor and Viewbix Inc. The aggregate gross proceeds received by Viewbix from the Private Placement were $257, of which $237 were received in June 2024 and the $20 remaining were received in July 2024. The effective date of the Purchase Agreement is June 30, 2024.
The PIPE Warrants are exercisable upon issuance at an exercise price of USD 0.25 per share and will have a three-year term from the issuance date. In addition, the PIPE Warrants are subject to an automatic exercise provision in the event that Viewbix Inc.’s shares of common stock are approved for listing on the Nasdaq Capital Market.
Upon the closing of the Private Placement, Viewbix Inc. agreed to pay the Lead Investor: (1) USD 10 thousand for actual and documented fees and expenses incurred and, (2) a commission consisting of (i) a cash fee of USD 123 thousand and (ii) 51,375 shares of Viewbix Inc.’s common stock.
In July 2024, Viewbix Inc. issued to the Investors 1,027,500 shares of common stock and 1,541,250 warrants in connection with the Private Placement.
Following the Private Placement, Gix Internet’s holdings in Viewbix Inc. decreased from 71.11% to 66.89%. The transaction was recorded as a transaction with non-controlling interests in the Group’s consolidated statements of changes in shareholders equity for the period ended June 30, 2024.
Stock Incentive Plan
On March 2, 2023, the Board of Directors of Viewbix Inc. approved the adoption of the 2023 stock incentive plan (the “2023 Plan”). The 2023 Plan permits the issuance of up to (i) 2,500,000 shares of Common Stock, plus (ii) an annual increase equal to the lesser of (A) 5% of Viewbix Inc.’s outstanding capital stock on the last day of the immediately preceding calendar year; and (B) such smaller amount as determined by the Board of Directors, provided that no more than 2,500,000 shares of common stock may be issued upon the exercise of incentive stock options. If any outstanding awards expire, are canceled or are forfeited, the underlying shares would be available for future grants under the 2023 Plan. As of the date of approval of the financial statements, Viewbix Inc. had reserved 2,500,000 shares of common stock for issuance under the 2023 Plan.
As of June 30, 2024, 51,020 stock-based awards were granted by Viewbix Inc. under the 2023 Plan and an expense of USD 12 thousand was recognized in the Group’s consolidated statements of income/loss and other comprehensive income/loss for the six months ended June 30, 2024.
On September 13, 2023, the Company signed an operating agreement with Zig Investment Group LLC (“Zig Investment Group”), a Florida limited liability company, pursuant to which they formed a company, under the name Zig Miami 54 LLC (“Zig Miami 54”), a Florida limited liability company. The purpose of Zig Miami 54 is to acquire, improve, renovate, develop, manage, sell and otherwise deal with a commercial property located in Miami, Florida. The rights of Zig Miami 54 are exercised by Zig Investment Group, and the business and affairs of Zig Miami 54 are managed under the direction of Zig Investment Group (the “Manager”).
Under the terms of the agreement, the Company invested an amount of USD 2,000 thousand (the “Initial Capital Contribution”) in consideration of 60% of the issued and outstanding share capital of Zig Miami 54. The remaining 40% were allocated, without consideration, to Zig Investment Group.
In addition, Zig Miami 54 is entitled to receive a loan from the seller of the property (“Seller Loan”) in the amount of up to USD 1,500 thousand which is secured by a first lien on the property.
Additionally, under the terms of the agreement, commencing upon completion of phase I of the renovation work, the Manager shall distribute net cash from operations, with respect to each calendar quarter, during the next succeeding calendar quarter, or more frequently as determined by the Manager. All distributions of net cash from operations and net cash from capital transactions, including refinancing the existing Seller Loan, shall be made in the following order: (i) one hundred percent (100%) to repay all debts, regular operating expenses and obligations of Zig Miami 54, including the current periodic installments of principal and interest due on the Seller Loan; (ii) one hundred percent (100%) to the Company until the Company has received a return of one hundred percent (100%) of its Initial Capital Contribution; (iii) one hundred percent (100%) to Zig Investment Group to repay all cost overruns incurred by Zig Investment Group, if any, up to the maximum amount of USD 180 thousand; and (iv) pro rata to the Company and Zig Investment Group in accordance with their percentage interests.
Moreover, upon such time that the Company has received a distribution of one hundred percent (100%) of its Initial Capital Contribution, the Manager shall cause Zig Miami 54 to redeem from the Company, without any further consent or action of the Company, fifty percent (50%) of the Company’s interests in Zig Miami 54, equaling a thirty percent (30%) percentage interest in Zig Miami 54 and to, thereafter, issue to Zig Investment Group, additional interests in Zig Miami 54 equaling a thirty percent (30%) interest in Zig Miami 54. Following such redemption and issuance, Zig Investment Group will hold a seventy percent (70%) interest in Zig Miami 54 and the Company will hold a thirty percent (30%) interest in Zig Miami 54.
The closing of the agreement was on December 15, 2023 (the “Closing”). Following the Closing, Zig Miami 54 acquired the commercial property for an aggregate amount of USD 2,250 thousand and received a Seller Loan in the amount of USD 1,350 thousand.
The Initial Capital Contribution includes a loan and an investment. The Initial Capital Contribution was first allocated to the loan based on its fair value at the date of the Closing in an amount of USD 1,545 thousand (the “Loan”) with the residual of the Initial Capital Contribution in an amount of USD 455 thousand allocated to the investment (“Investment Purchase Price”).
The Loan is subsequently measured at fair value through profit or loss (FVTPL). As of June 30, 2024, and December 31, 2023, the fair value of the Loan was USD 1,533 thousand and USD 1,545 thousand, respectively.
The Company did not obtain any substantive processes, assembled workforce, or employees capable of producing outputs in connection with the acquisition. Therefore, the transaction was accounted for as an asset acquisition, as the acquired assets did not meet the definition of a business as defined by IFRS 3, Business Combinations.
The Investment Purchase Price was fully allocated to the commercial property.
Additionally, the management of the Company assessed whether it has control over Zig Miami 54 in accordance with IFRS 10 and determined that it has significant influence over Zig Miami 54. As such, the investment was accounted for using the equity method in accordance with IAS 28.
Investment in shares
As of December 31, 2023, the Company held 38.76% of the issued and outstanding share capital of Polyrizon and the investment was accounted for using the equity method.
On May 12, 2024, the Company converted loans into 88,216 shares of Polyrizon. As of June 30, 2024, the Company held 38.31% of the issued and outstanding share capital of Polyrizon.
On July 2, 2024, the Company signed a sale agreement to sell a portion of its stake of 662,980 shares in Polyrizon. See note 10.4 for additional information.
Investment in options
In July 2020, the Company was granted an option (the “Original Option”) to invest an additional amount of up to USD 1 million in consideration for 3,107,223 shares of Polyrizon. The Original Option was exercisable until the earlier of (i) April 23, 2023, or (ii) the consummation by Polyrizon of equity financing of at least USD 500 thousand based on a pre-money valuation of at least USD 10 million. The Original Option was terminated on April 23, 2023.
On December 15, 2021, the Company was granted a new option (the “Alternative Option”) to invest an amount of USD 2 million in Polyrizon at a price per share equal to 125% the price per share at Polyrizon’s IPO (as defined below). The Alternative option is exercisable for a period of 3 years following the closing of Polyrizon’s initial public offering (“Polyrizon’s IPO”). On November 21, 2023, the Company signed an amendment to the share purchase agreement according to which, the Alternative Option will be exercisable upon a completion of listing Polyrizon’s ordinary shares for trading on the NASDAQ, whether via an initial public offering, merger, or by any other listing, provided however, that such listing takes place on or prior to December 31, 2024.
The fair value was determined based on management’s expectations for the IPO scenario. As of June 30, 2024, and December 31, 2023, the fair value of the Alternative Option was 289 USD and USD 105 thousand, respectively.
Convertible loan agreement
On February 12, 2023, the Company and other lenders signed a convertible loan agreement with Polyrizon for an aggregate amount of USD 180 thousand, of which the Company lent USD 80 thousand. The loan bears an interest of 4% per annum. The loan will be automatically converted into shares in the event of a securities issuance or a financing round of at least USD 500 thousand at a discount of 20%. The loan was accounted for as financial assets at fair value through profit or loss (FVTPL). As of December 31, 2023, the fair value of the loan was USD 78 thousand. On May 12, 2024, the loan was converted into 88,216 shares of Polyrizon.
Charging Robotics is a company operating in the electric vehicle and wireless charging sector. Charging Robotics was formed as a wholly owned subsidiary of the Company on February 1, 2021.
On February 19, 2021, the Company entered into the venture agreement, with Mr. Amir Zaid and Mr. Weijian Zhou (the founders of Emuze Ltd., a privately held company that designs and develops electric mobility micro vehicles), and Charging Robotics (the “Venture Agreement”), under which the Company formed a venture, under the name Revoltz Ltd. (“Revoltz”), to develop and commercialize three modular electric vehicle (“EV”) micro mobility vehicles for urban individual use and “last mile” cargo delivery.
Under the terms of the Venture Agreement, the Company invested an amount of USD 250 thousand in consideration of 19,990 ordinary shares of Revoltz, representing 19.99% of Revoltz’s issued and outstanding share capital on a fully diluted basis. The Venture Agreement requires the Company to invest an additional USD 400 thousand in a second tranche, subject to Revoltz achieving certain post-closing milestones, for 37.5% of Revoltz’s issued and outstanding share capital. As of June 30, 2024, the milestones were not achieved, therefore no additional investments occurred. The investment in Revoltz was accounted for using the equity method. The additional investment requirement was accounted for as a derivative liability measured at fair value through profit or loss. As of June 30, 2024, the fair value of the derivative liability was concluded to be immaterial.
On July 28, 2022, Charging Robotics entered into a convertible loan agreement with Revoltz pursuant to which Charging Robotics was required to invest an amount of USD 60 thousand in Revoltz (the “Loan Principal Amount”). In addition, Charging Robotics is entitled to provide Revoltz an additional loan of up to USD 340 thousand, at its sole discretion upon Revoltz’ request (the “Additional Amount”, and together with the Loan Principal Amount, the “Total Loan Amount”). The Total Loan Amount shall carry interest at the minimum rate prescribed by Israeli law. The Loan Principal Amount was accounted for as a financial asset at fair value through profit or loss (FVTPL). The fair value of the loan as of June 30, 2024 was USD 62 thousand
On March 28, 2023, the Company signed a securities exchange agreement with Fuel Doctor to sell all its shares in Charging Robotics to Fuel Doctor. See note 3J.
SciSparc is a company formed under the laws of the State of Israel. SciSparc listed its American Depository Shares on the OTCQB until December 7, 2021, after which SciSparc uplisted to NASDAQ.
Buffalo Investments Ltd. (“Buffalo”), an Israeli private company, owned 150,000 options to purchase 150,000 shares of SciSparc at an exercise price of USD 5.02 per share. On December 7, 2021, the Company entered into an option purchase agreement with Buffalo (the “Buffalo Agreement”) for the purchase of the 150,000 options in consideration for USD 0.72 per option. The Company paid USD 72 thousand in this transaction. Additionally, the Company was obligated to immediately exercise all such options into shares and the Company paid SciSparc an additional USD 753 thousand in this transaction. According to the Buffalo Agreement, Buffalo undertook to purchase 85% of the shares back from the Company within 3 months following the Buffalo Agreement (the “Purchase Period”) in consideration for USD 6.05 per share and for a total consideration of USD 771 thousand.
In April 2022, the Buffalo Agreement was amended such that the Company extended the Purchase Period until June 7, 2022.
On June 30, 2022, the Buffalo Agreement was amended such that the Company extended the Purchase Period until December 31, 2022, and Buffalo undertook to purchase 90% of the shares back from the Company in consideration for USD 6.05 per share and for a total consideration of USD 817 thousand.
On March 16, 2023, the Company signed an amendment to the Buffalo Agreement (the “Amendment”).
According to the Amendment, instead of purchasing 90% of the shares back from the Company for a total consideration of USD 817 thousand, which was originally agreed under the Buffalo Agreement, Buffalo will transfer to the Company, without any consideration, 309,000 shares of Hydreight Technologies Inc., 77,980 shares of Viewbix Inc., 84,000 shares of SciSparc, 36,000 shares of Clearmind Medicine Inc. and 31,250 shares of Colugo Systems Ltd. with an aggregate value of USD 937 thousand, reflecting a compensation of USD 120 thousand.
As a result, on March 16, 2023, the Company recorded an amount of USD 937 thousand within other receivables and derecognized the forward contract asset in the amount of USD 577 thousand. The difference between the value of the shares to be transferred under the Amendment (USD 937 thousand) and the value of the forward contract asset (USD 577 thousand) was recorded in profit and loss in the consolidated statement of income/loss and other comprehensive income/loss.
As of June 30, 2024, the Company received 84,000 shares of SciSparc, 309,000 shares of Hydreight Technologies Inc., 36,000 shares of Clearmind Medicine Inc. and 77,980 shares of Viewbix Inc. The investments were accounted for as investments at fair value through profit or loss (FVTPL).
As of June 30, 2024, Colugo Systems’ Ltd. shares were not received. As such, they were recorded within other receivables in the consolidated statements of financial position as of June 30, 2024, in an amount of USD 500 thousand representing their fair value.
On December 21, 2021, the Company purchased 90,000,000 shares of Fuel Doctor, which represented 35.06% of the issued and outstanding shares of Fuel Doctor for a total consideration of USD 263 thousand. The Company gained a significant influence over Fuel Doctor and aforementioned the investment was accounted for using the equity method.
On March 28, 2023, the Company signed a securities exchange agreement with Fuel Doctor to sell all its shares in Charging Robotics to Fuel Doctor in exchange for 827,543,253 newly issued shares of Fuel Doctor’s common stock equal to 76.25% of the total number of shares of Fuel Doctor’s common stock issued and outstanding as of April 7, 2023 (the “Closing”) on a fully diluted basis. In the financial statements of Fuel Doctor, the share exchange was accounted for as a reverse acquisition where Fuel Doctor was identified as the accounting acquirer. The financial statements of Fuel Doctor are consolidated in these financial statements from the Closing date.
As of June 30, 2024, and December 31, 2023, the Company held 67% of the issued and outstanding share capital of Fuel Doctor.
On August 10, 2022, the Company signed a bridge loan agreement with Laminera in the amount of USD 100 thousand. The loan will bear an annual interest of 8% and will be repaid no later than September 1, 2024. The loan repayment will be accelerated earlier in the event of closing of an equity financing round or rights offering, an IPO or a default event as described in the bridge loan agreement. The loan was accounted for as financial assets measured at amortized cost.
Management of the Company assessed whether there is objective evidence that its net investment in Laminera was impaired. As Laminera continues to have zero revenues and generate operating losses, and as the Company does not plan additional investments in Laminera, the Company considered the value of the investment as of December 31, 2023. As the Company does not believe this investment will generate any cash flows in the foreseeable future, the Company decided to write off the entire amount of the investment in Laminera and recorded an impairment loss of USD 1,176 thousand within equity losses in the consolidated statements of income/loss and other comprehensive income/loss for the year ended December 31, 2023.
In addition, the Company decided to write off the entire amount of the loan and recognized a loss in the amount of USD 90 thousand withing the consolidated statements of income/loss and other comprehensive income/loss for the year ended December 31, 2023.
As of June 30, 2024, the Company held 19.7% of the issued and outstanding shares of Laminera.
On April 13, 2023, the Company entered into a share purchase agreement to acquire 19.9% of Metagramm, an AI, machine learning (ML) communication and grammar assistant software. In return, the Company paid Metagramm USD 250 thousand in Company’s shares. The investment was accounted for as investments at fair value through profit or loss (FVTPL).
As of June 30, 2024, and December 31, 2023, the Company held 19.9% of the issued and outstanding shares of Metagramm.
In addition, pursuant to the share purchase agreement, the Company loaned Metagramm USD 250 thousand in order to fund a pilot. The loan bears an interest rate of 6% per annum. The loan will be repaid upon the completion of the pilot, in eight quarterly installments starting from the first day of the third year after the grant date. The loan was accounted for as financial assets measured at amortized cost.
In the event that the pilot approval is not successfully completed within 15 months after the Closing, Metagramm will repay the loan and any interest on a monthly basis. In such case, the Company will have the option to receive additional shares of Metagramm, at no cost, in such number that immediately after, the Company’s holdings in Metagramm will increase to 31.25%. The option is measured at fair value through profit or loss. As of June 30, 2024, the fair value of the option was estimated to be inconsequential.
In addition, in the event of any fundraising transaction, the Company will have the option to be reimbursed the full loan amount with accrued interest immediately following the fundraising transaction or to convert the loan into Metagramm’s shares at a 20% discount.
For more information, see note 10.3
On August 23, 2022, the Company signed a convertible loan agreement with A.I Artificial Intelligence Research and Development Ltd. (“A.I R&D”) for the assignment of a loan it has given to A.I Conversation Systems, a public company traded in Tel Aviv. The original loan amount was NIS 6,000 thousand (USD 1,800 thousand). According to the agreement, the Company purchased from A.I R&D 50% from the original loan in exchange for USD 914 thousand (NIS 3,000 thousand) in the same terms of the original loan given to A.I Conversation Systems.
According to the agreement, the loan will bear an interest of 1% per month. Additionally, A.I Conversation Systems has the right to choose to repay the loan and interest in cash or to convert it into shares of A.I Conversation Systems on March 13, 2023. Under the conversion option, the number of shares will be equal to the loan (NIS 3,000 thousand) plus NIS 1,750 thousand (USD 1,300 thousand) divided by the average quoted price per share of A.I Conversation Systems during a period of 30 trading days preceding the conversion decision.
On February 16, 2023, the Company purchased 118,400 shares of A.I Conversation Systems for a total of USD 84 thousand (NIS 296 thousand). The investment was accounted for as investment at fair value through profit or loss.
On June 13, 2023, the board of directors of A.I Conversation Systems approved the conversion of the loan into shares, subject to the approval of the shareholders of A.I Conversation Systems at the general meeting of the shareholders (the “General Meeting”). As such, the number of shares to be issued to the Company determined to be 2,650,423 shares which equals NIS 4,750 thousand divided by the average quoted price per share of A.I Conversation Systems during a period of 30 trading days preceding June 13, 2023. The decision of the Board of Directors was subject to the approval of at the General Meeting.
On September 5, 2023, the loan conversation was approved during the General Meeting. As a result, the loan was converted into 2,650,423 shares of A.I Conversation Systems which represented 36.08% holdings of the issued and outstanding shares of A.I Conversation Systems and as of this date, the investment was accounted for using the equity method. The fair value of the loan as of September 5, 2023, was USD 721 thousand (NIS 2,748 thousand).
The Company did not obtain any substantive processes, assembled workforce, or employees capable of producing outputs in connection with the acquisition. Therefore, the transaction was accounted for as an asset acquisition, as the acquired assets did not meet the definition of a business as defined by IFRS 3, Business Combinations. |
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Financial Instruments |
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| Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL INSTRUMENTS | NOTE 4 - FINANCIAL INSTRUMENTS
Below is an analysis of the financial instruments carried at fair value. The different levels have been defined as follows:
Financial assets
Financial liabilities
Level 3 financial liabilities:
As of December 31, 2023, the Group had financial liabilities measured at level 3 – mainly from derivative liabilities of Jeffs’ Brands.
As of June 30, 2024, the Group had financial liabilities measured at level 3 – mainly from the June 2024 Facility Agreement entered into by Viewbix Inc. (see note 3E).
The fair value of the financial instruments under the June 2024 Facility Agreement, as of June 18, 2024, was calculated using the following inputs: share price: USD 0.118, expected volatility: 125%, exercise price: USD 0.25, risk-free interest rate: 4.41%, expected life: 3.0 years.
The fair value of the financial instruments estimated by the Group’s management as of June 30 and June 18, 2024, was substantially the same.
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Goodwill and Inatangible Assets |
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| Goodwill and Inatangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GOODWILL AND INATANGIBLE ASSETS | NOTE 5 - GOODWILL AND INATANGIBLE ASSETS
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Equity |
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| EQUITY | NOTE 6 - EQUITY
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Transactions and Balances with Related Parties |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Transactions and Balances with Related Parties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TRANSACTIONS AND BALANCES WITH RELATED PARTIES | NOTE 7 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES
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Revenues |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUES | NOTE 8 - REVENUES
The following table present the Group’s revenues disaggregated by revenue type:
Set forth below is a breakdown of Company’s revenue by major customers (major customer - revenues from these customers constitute at least 10% of total revenues):
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Segments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENTS | NOTE 9 - SEGMENTS
As of June 30, 2024, the Group identified seven operating segments as follows: corporate, e-commerce, online advertising & internet traffic routing, online event management, medical, real-estate and electronics.
The Company concluded that the medical, real-estate and electronics segments are not “reportable segments” as defined in IFRS 8, Operating Segments. As such, these segments were combined and disclosed under “Others”.
The CODM measures and evaluates the operating performance of the Group’s segments based on operating loss (income), assets and liabilities.
The table set forth other information of the Group:
The table set forth the operating results of the Group:
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Subsequent Events |
6 Months Ended | ||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||
| Subsequent Events [Abstract] | |||||||||||||||||||||||||
| SUBSEQUENT EVENTS | NOTE 10 - SUBSEQUENT EVENTS
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Accounting Policies, by Policy (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||
| Estimates |
The preparation of the interim condensed consolidated financial statements requires the Group’s management to exercise judgment and also requires use of accounting estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. In the preparation of these interim condensed consolidated financial statements, the significant judgments exercised by management in the application of the Group’s accounting policies and the uncertainty involved in the key sources of those estimates were identical to the ones used in the Group’s 2023 Annual Financial Statements. |
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| Implementation of amendments to existing accounting standards |
Amendments to IAS 1 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current The amendments to IAS 1 published in January 2020 (“2020 Amendments”) affect only the presentation of liabilities as current or non-current in the statement of financial position and not the amount or timing of recognition of any asset, liability, income or expenses, or the information disclosed about those items. The 2020 Amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, explain that rights are in existence if covenants are complied with at the end of the reporting period, and introduce a definition of ’settlement’ to make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. In October 2022, additional amendments to IAS 1 were published (“2022 Amendments”). The 2022 Amendments specify that only covenants that an entity is required to comply with on or before the end of the reporting period affect the entity’s right to defer settlement of a liability for at least twelve months after the reporting date (and therefore must be considered in assessing the classification of the liability as current or non-current). Such covenants affect whether the right exists at the end of the reporting period, even if compliance with the covenant. is assessed only after the reporting date (e.g. a covenant based on the entity’s financial position at the reporting date that is assessed for compliance only after the reporting date). The IASB also specifies that the right to defer settlement of a liability for at least twelve months after the reporting date is not affected if an entity only has to comply with a covenant after the reporting period. However, if the entity’s right to defer settlement of a liability is subject to the entity complying with covenants within twelve months after the reporting period, an entity discloses information that enables users of financial statements to understand the risk of the liabilities becoming repayable within twelve months after the reporting period. This would include information about the covenants (including the nature of the covenants and when the entity is required to comply with them), the carrying amount of related liabilities and facts and circumstances, if any, that indicate that the entity may have difficulties complying with the covenants. The 2020 Amendments and the 2022 Amendments are applied retrospectively for annual reporting periods beginning on or after January 1, 2024. The application of these amendments had no impact on the Group’s consolidated financial statements.
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| New and revised IFRS Accounting Standards and interpretations issued but not yet effective and not early adopted by the Group, which are expected to impact the Group’s consolidated financial statements |
IFRS 18 “Presentation and Disclosure in Financial Statements” (IFRS 18) On April 9, 2024, the IASB published IFRS 18, which replaces IAS 1 “Presentation of Financial Statements” (IAS 1). IFRS 18 aims to improve how information is communicated by entities in their financial statements. IFRS 18 focuses on the following topics:
Furthermore, amendments to other IFRS standards become effective when an applying IFRS 18, including changes to IAS 7 “Statement of Cash Flows”, which will enhance comparability between entities. The amendments mainly include: using the operating profit subtotal as the starting point for the indirect method of reporting cash flows from operating activities, and removing the presentation alternatives for cash flows related to interest and dividends paid and received. Consequently, except in specific cases, interest and dividends received will be classified as cash flows from investing activities, while interest and dividends paid will be classified as cash flows from financing activities. The standard will be applied for annual reporting periods beginning on or after January 1, 2027 and will be applied retrospectively with specific transition requirements. Earlier application is permitted. The Company is currently assessing the impact of adopting IFRS 18, including the impact of amendments to additional IFRS standards impacted by the adoption of IFRS 18, on the financial statements. Amendments to IFRS 9 “Financial Instruments” The main amendments to IFRS 9:
An entity that elects to apply this derecognition option must apply it to all settlements made through the same electronic payment system.
The amendments are effective for annual reporting periods beginning on or after January 1, 2026, and will be applied retrospectively. Early application is permitted if all the amendments are applied simultaneously or if the amendments applied are related only to the classification of financial assets. An entity is not required to restate prior periods to reflect the application of the amendments, but it may restate prior periods if, and only if, it is possible to do so without the use of hindsight. The Company is currently assessing the impact of amendments to IFRS 9 on the financial statements. |
Interest in Other Entities (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of General Information | General information
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| Schedule of Non-Controlling Interests | Balance of non-controlling interests:
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| Schedule of Net Income (Loss) Attributed to Non-Controlling Interests | Net income (loss) attributed to
non-controlling interests:
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| Schedule of Total Investments Accounted for Using the Equity Method | This table summarizes the total investments accounted for using the equity method:
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| Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method | This table summarizes the total share of loss (profit) of investments accounted for using the equity method:
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| Schedule of Company’s Rights in Share Capital and Voting Rights | This table summarize the Company’s rights in share capital and voting rights:
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| Schedule of Fair Value of Investments Accounted for Using the Equity Method | Fair value of investments accounted for using the equity method for which there is a market price on the stock exchange:
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Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Level 1 and Level 3 Fair Value Financial Assets | The
following table presents the level 1 and level 3 fair value financial assets - investments in shares and warrants as of June 30, 2024,
and December 31, 2023
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fair Value of Financial Instruments | The
following table presents the Level 1 financial assets – investments in shares and warrants roll-forward during the six months ended
June 30, 2024:
The following table presents the Level 3 financial assets – investments in shares and warrants roll-forward during the six months ended June 30, 2024:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fair Value Through Profit or Loss at Level 3 | The
following table presents the financial liabilities that were measured at fair value through profit or loss at level 3:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Inatangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Inatangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Intangible Assets | Details of the Company’s Intangible assets:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Share Capital | Composed
as follows
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions and Balances with Related Parties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Transactions and Balances with Related Parties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Transactions with Related Parties | Composed
as follows:
|
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| Schedule of Current Assets Under Related Parties | Current
assets under related parties section:
|
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| Schedule of Current Assets Under Loans to Associates | Current
assets under loans to associates section:
|
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| Schedule of Current Assets Under Loans to Others | Current
assets under loans to others section:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Current Liabilities | Current
Liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Group’s Revenues Disaggregated by Revenue | The following table present the Group’s
revenues disaggregated by revenue type:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Breakdown of Company’s Revenue by Major Customers | Set forth below is a breakdown of Company’s
revenue by major customers (major customer - revenues from these customers constitute at least 10% of total revenues):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities | The table set forth other information of the Group:
|
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Interest in Other Entities (Details) - Detail 4 - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Mar. 21, 2023 |
Jun. 30, 2024 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Jun. 13, 2023 |
|
| Interest in Other Entities (Details) - Detail 4 [Line Items] | |||||
| Stockholders units (in Shares) | 3,294,117 | ||||
| Purchase per unit (in Dollars per share) | $ 4.25 | ||||
| Shares issued (in Shares) | 28,851,761 | 27,989,465 | 2,650,423 | ||
| Warrants to purchase (in Shares) | 1 | ||||
| Exercise price (in Dollars per share) | $ 5.5 | $ 250 | |||
| Company shares | 18.45% | ||||
| Odysight.ai [Member] | |||||
| Interest in Other Entities (Details) - Detail 4 [Line Items] | |||||
| Common stock outstanding, pecentage | 27.02% | ||||
| Shares issued (in Shares) | 1 | ||||
| Warrants to purchase (in Shares) | 1 | ||||
| Received amount | $ 2,946 |
Interest in Other Entities (Details) - Schedule of Fair Value of Investments Accounted for Using the Equity Method - A.I Conversation Systems [Member] - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Interest in Other Entities (Details) - Schedule of Fair Value of Investments Accounted for Using the Equity Method [Line Items] | ||
| Carrying amount | $ 76 | |
| Quoted fair value | $ 331 | $ 882 |
Financial Instruments (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2024
$ / shares
| |
| Financial Instruments [Line Items] | |
| Share price | $ 0.118 |
| Expected volatility | 125.00% |
| Ordinary share, exercise price per share | $ 0.25 |
| Risk free interest rate | 4.41% |
| Expected term | 3 years |
Financial Instruments (Details) - Schedule of Fair Value Through Profit or Loss at Level 3 - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
| Schedule of Fair Value Through Profit or Loss at Level 3 [Abstract] | ||
| Warrants at fair value issued by subsidiaries | $ 2,025 | $ 1,897 |
| Embedded derivatives | 284 | |
| Total | $ 2,309 | $ 1,897 |
Goodwill and Inatangible Assets (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jan. 25, 2024 |
|
| Goodwill and Inatangible Assets [Line Items] | |||
| Aggregate gross proceeds value | $ 7,275 | ||
| Impairment loss | $ 1,802 | ||
| Jeffs’ Brands [Member] | |||
| Goodwill and Inatangible Assets [Line Items] | |||
| Shares issued percentage | 13.37% | ||
| Shares outstanding percentage | 13.37% | ||
Goodwill and Inatangible Assets (Details) - Schedule of Intangible Assets - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Schedule of Intangible Assets [Line Items] | ||
| Intangible assets, net | $ 17,523 | $ 27,336 |
| Technology [Member] | ||
| Schedule of Intangible Assets [Line Items] | ||
| Intangible assets, net | 7,067 | 8,042 |
| Customer relationship [Member] | ||
| Schedule of Intangible Assets [Line Items] | ||
| Intangible assets, net | 4,178 | 4,601 |
| Patent [Member] | ||
| Schedule of Intangible Assets [Line Items] | ||
| Intangible assets, net | 104 | 100 |
| Brand name [Member] | ||
| Schedule of Intangible Assets [Line Items] | ||
| Intangible assets, net | 6,043 | |
| Goodwill [member] | ||
| Schedule of Intangible Assets [Line Items] | ||
| Intangible assets, net | $ 6,174 | $ 8,550 |
Equity (Details) ₪ in Thousands, $ in Thousands |
1 Months Ended | 6 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|
Feb. 12, 2023
USD ($)
|
Jan. 01, 2023 |
Nov. 15, 2022
USD ($)
|
Oct. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2024
USD ($)
shares
|
Jun. 30, 2024
ILS (₪)
shares
|
Jun. 30, 2023
USD ($)
|
May 08, 2024
shares
|
Dec. 31, 2023
shares
|
Jun. 13, 2023
shares
|
|
| Ordinary shares issued (in Shares) | shares | 28,851,761 | 28,851,761 | 27,989,465 | 2,650,423 | |||||||
| Total expenses for options | $ | $ 192 | $ 470 | |||||||||
| Vesting period | 3 years | ||||||||||
| Aggregated amount | $ 180 | $ 480 | ₪ 1,229 | ||||||||
| RSUs [Member] | |||||||||||
| Aggregated amount | $ | 130 | ||||||||||
| Board of Directors [Member] | |||||||||||
| Number of options granted | 1,280,000 | ||||||||||
| Consultants [Member] | |||||||||||
| Number of options granted | 90,000 | ||||||||||
| Employee [Member] | |||||||||||
| Total expenses for options | $ | $ 14 | $ 143 | |||||||||
| Ordinary Shares [Member] | |||||||||||
| Ordinary shares issued (in Shares) | shares | 320,000 | 320,000 | |||||||||
| Ordinary Shares [Member] | RSUs [Member] | |||||||||||
| Ordinary shares issued (in Shares) | shares | 862,298 | ||||||||||
Equity (Details) - Schedule of Share Capital - Ordinary Shares [Member] - shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Schedule of Share Capital [Line Items] | ||
| Number of shares, Authorized, Ordinary shares of no-par value | 200,000 | 200,000 |
| Number of shares, Issued and paid, Ordinary shares of no-par value | 28,852 | 27,989 |
Transactions and Balances with Related Parties (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Jan. 28, 2024 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Transactions and Balances with Related Parties [Line Items] | |||
| Aggregated amount of granted options benefit | $ 3,000 | $ 56,000 | |
| Aggregated amount of grant of restricted share units | 31,000 | 67,000 | |
| Management fees | $ 20,000 | 10,000 | |
| Total aggregate for all loss | 4,000,000 | ||
| Premium amount | 191,000 | ||
| Deductible amount per claim | 300,000 | ||
| Total coverage | 1,000,000,000,000 | ||
| Related party transaction [Member] | |||
| Transactions and Balances with Related Parties [Line Items] | |||
| Aggregated amount of granted options benefit | 6,000 | 87,000 | |
| Aggregated amount of grant of restricted share units | $ 54,000 | $ 115,000 | |
Transactions and Balances with Related Parties (Details) - Schedule of Transactions with Related Parties - USD ($) $ in Thousands |
6 Months Ended | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|||||||||||||||||||||
| Schedule of Transactions with Related Parties [Abstract] | ||||||||||||||||||||||
| Compensations to key officers | [1] | $ 784 | $ 1,032 | |||||||||||||||||||
| Compensation to directors | [2] | 457 | 578 | |||||||||||||||||||
| Directors’ and Officers’ insurance | 191 | 468 | ||||||||||||||||||||
| Consultant services | [3] | 16 | 95 | |||||||||||||||||||
| Compensation to member of senior management of Gix Internet | [4] | 93 | 102 | |||||||||||||||||||
| Eventer revenues from related parties | 15 | |||||||||||||||||||||
| Jeffs’ Brands cost of revenues from related parties | [5] | 36 | 313 | |||||||||||||||||||
| Jeffs’ Brands income from related parties | [6] | (10) | (158) | |||||||||||||||||||
| Jeffs’ Brands royalties paid to related parties | [7] | 2 | 8 | |||||||||||||||||||
| Management fees from Jeffs’ Brands included in revenues | [8] | (100) | ||||||||||||||||||||
| Royalties from Jeffs’ Brands included in revenues | [9] | (10) | ||||||||||||||||||||
| Management fees from Parazero included in revenues | [10] | $ (60) | ||||||||||||||||||||
| ||||||||||||||||||||||
Transactions and Balances with Related Parties (Details) - Schedule of Current Assets Under Related Parties - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Schedule of Current Assets Under Related Parties [Abstract] | ||
| Other receivables (a related party of Gix Internet) | $ 53 | $ 53 |
| Other receivables (a related party of Eventer) | 6 | |
| Related Party Current Assets | $ 53 | $ 59 |
Transactions and Balances with Related Parties (Details) - Schedule of Current Assets Under Loans to Associates - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Schedule of Current Assets Under Loans to Associates [Abstract] | ||
| Loan to Zig Miami 54 (note 3F) | $ 1,533 | $ 1,545 |
| Loan to Polyrizon | 77 | |
| Loan to Revoltz | 62 | 62 |
| Non current assets, total | $ 1,595 | $ 1,684 |
Transactions and Balances with Related Parties (Details) - Schedule of Current Assets Under Loans to Others - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Transactions and Balances with Related Parties (Details) - Schedule of Current Assets Under Loans to Others [Line Items] | ||
| Current assets under loans to others | $ 268 | $ 376 |
| Loan to Metagramm [Member] | ||
| Transactions and Balances with Related Parties (Details) - Schedule of Current Assets Under Loans to Others [Line Items] | ||
| Current assets under loans to others | 268 | 250 |
| Loan to safee [Member] | ||
| Transactions and Balances with Related Parties (Details) - Schedule of Current Assets Under Loans to Others [Line Items] | ||
| Current assets under loans to others | $ 126 |
Revenues (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Revenues [Abstract] | |
| Total revenues percentage | 10.00% |
Revenues (Details) - Schedule of Group’s Revenues Disaggregated by Revenue - USD ($) $ in Thousands |
6 Months Ended | |||||
|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|||||
| Schedule of Group’s Revenues Disaggregated by Revenue [Abstract] | ||||||
| Revenues from commissions (from Eventer) | $ 796 | $ 1,498 | ||||
| Products (from Jeffs’ Brands) | [1] | 1,002 | 3,871 | |||
| Revenues - Management fees and Revenues Sharing (from Xylo Technologies) | [2] | 170 | ||||
| Revenues from internet services (from Gix Internet) | 17,335 | 48,016 | ||||
| Disaggregation of revenues | $ 19,303 | $ 53,385 | ||||
| ||||||
Revenues (Details) - Schedule of Breakdown of Company’s Revenue by Major Customers - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Customer A [Member] | ||
| Schedule of Breakdown of Company’s Revenue by Major Customers [Line Items] | ||
| Revenue from customer | $ 3,399 | $ 7,753 |
| Customer B [Member] | ||
| Schedule of Breakdown of Company’s Revenue by Major Customers [Line Items] | ||
| Revenue from customer | 2,312 | 8,109 |
| Customer C [Member] | ||
| Schedule of Breakdown of Company’s Revenue by Major Customers [Line Items] | ||
| Revenue from customer | $ 2,429 | |
Segments (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
| Segments [Line Items] | ||
| Equity method | $ 1,533 | $ 1,545 |
| Polyrizon [Member] | ||
| Segments [Line Items] | ||
| Equity method | 810 | 498 |
| Zig Miami Fifty Four [Member] | ||
| Segments [Line Items] | ||
| Equity method | 370 | $ 370 |
| Gix internet [Member] | ||
| Segments [Line Items] | ||
| Equity losses | $ 77 |
Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities - USD ($) $ in Thousands |
6 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
|||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| Total segments’ assets | $ 39,292 | $ 63,896 | |||||||||||
| Total segments’ liabilities | (23,371) | (31,461) | |||||||||||
| External revenues | 19,303 | $ 53,385 | |||||||||||
| Segment results - operating loss | (8,059) | (9,790) | |||||||||||
| Non-operating income (loss) | (2,951) | 1,409 | |||||||||||
| Finance income (loss) | (920) | (978) | |||||||||||
| Loss before taxes on income | (11,930) | (9,359) | |||||||||||
| Tax benefit (expense) on income | 45 | (177) | |||||||||||
| Segment results - net profit (loss) | (11,885) | (9,536) | |||||||||||
| Corporates [Member] | |||||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| Total segments’ assets | 7,469 | 10,708 | |||||||||||
| Total segments’ liabilities | (744) | (867) | |||||||||||
| External revenues | 170 | ||||||||||||
| Segment results - operating loss | (1,409) | (6,301) | |||||||||||
| Non-operating income (loss) | 157 | ||||||||||||
| Finance income (loss) | 115 | (219) | |||||||||||
| Loss before taxes on income | (1,294) | (6,363) | |||||||||||
| Tax benefit (expense) on income | 3 | ||||||||||||
| Segment results - net profit (loss) | (1,294) | (6,360) | |||||||||||
| E-commerce [Member] | |||||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| Total segments’ assets | 13,122 | ||||||||||||
| Total segments’ liabilities | (4,483) | ||||||||||||
| External revenues | 1,002 | [1] | 3,871 | ||||||||||
| Segment results - operating loss | (567) | [1] | (2,131) | ||||||||||
| Non-operating income (loss) | 10 | [1] | 1,252 | ||||||||||
| Finance income (loss) | (26) | [1] | (193) | ||||||||||
| Loss before taxes on income | (583) | [1] | (1,072) | ||||||||||
| Tax benefit (expense) on income | 25 | [1] | (9) | ||||||||||
| Segment results - net profit (loss) | (558) | [1] | (1,081) | ||||||||||
| Online Advertising & Internet Traffic Routing [Member] | |||||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| Total segments’ assets | 24,628 | 35,178 | |||||||||||
| Total segments’ liabilities | (19,972) | (25,723) | |||||||||||
| External revenues | 17,335 | 48,016 | |||||||||||
| Segment results - operating loss | (3,887) | (46) | |||||||||||
| Non-operating income (loss) | (1,642) | ||||||||||||
| Finance income (loss) | (855) | (765) | |||||||||||
| Loss before taxes on income | (6,384) | (811) | |||||||||||
| Tax benefit (expense) on income | 20 | (340) | |||||||||||
| Segment results - net profit (loss) | (6,364) | (1,151) | |||||||||||
| Online Event Management [Member] | |||||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| Total segments’ assets | 2,159 | 1,874 | |||||||||||
| Total segments’ liabilities | (1,979) | (2,015) | |||||||||||
| External revenues | 796 | 1,498 | |||||||||||
| Segment results - operating loss | (249) | 140 | |||||||||||
| Non-operating income (loss) | |||||||||||||
| Finance income (loss) | (60) | (55) | |||||||||||
| Loss before taxes on income | (309) | 85 | |||||||||||
| Tax benefit (expense) on income | |||||||||||||
| Segment results - net profit (loss) | (309) | 85 | |||||||||||
| Others [Member] | |||||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| Total segments’ assets | 3,642 | 3,444 | [2] | ||||||||||
| Total segments’ liabilities | (678) | (605) | |||||||||||
| External revenues | |||||||||||||
| Segment results - operating loss | [3] | (468) | (1,452) | ||||||||||
| Non-operating income (loss) | |||||||||||||
| Finance income (loss) | (7) | ||||||||||||
| Loss before taxes on income | (468) | (1,459) | |||||||||||
| Tax benefit (expense) on income | |||||||||||||
| Segment results - net profit (loss) | (468) | (1,459) | |||||||||||
| Adjustments and eliminations [Member] | |||||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| Total segments’ assets | 1,394 | [4] | (430) | ||||||||||
| Total segments’ liabilities | $ 2,232 | ||||||||||||
| External revenues | |||||||||||||
| Segment results - operating loss | (1,479) | ||||||||||||
| Non-operating income (loss) | (1,319) | ||||||||||||
| Finance income (loss) | (94) | ||||||||||||
| Loss before taxes on income | (2,892) | ||||||||||||
| Tax benefit (expense) on income | |||||||||||||
| Segment results - net profit (loss) | $ (2,892) | ||||||||||||
| Adjustments [Member] | |||||||||||||
| Segments (Details) - Schedule of Group’s Segments Based on Operating Loss (Income), Assets and Liabilities [Line Items] | |||||||||||||
| External revenues | |||||||||||||
| Segment results - operating loss | |||||||||||||
| Non-operating income (loss) | |||||||||||||
| Finance income (loss) | 261 | ||||||||||||
| Loss before taxes on income | 261 | ||||||||||||
| Tax benefit (expense) on income | 169 | ||||||||||||
| Segment results - net profit (loss) | $ 430 | ||||||||||||
| |||||||||||||
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2024 |
Jul. 21, 2024 |
Jul. 22, 2023 |
Jun. 30, 2024 |
Aug. 05, 2024 |
Jul. 28, 2024 |
Jul. 04, 2024 |
Dec. 31, 2023 |
Jun. 13, 2023 |
|
| Subsequent Events [Line Items] | |||||||||
| Ordinary shares issued (in Shares) | 28,851,761 | 27,989,465 | 2,650,423 | ||||||
| Holdings Polyrizon diluted percentage | 38.31% | ||||||||
| Issued and outstanding share capital, percentage | 9.75% | ||||||||
| Price per share (in Dollars per share) | |||||||||
| Agreement terms description | SciSparc is entitled to up to USD 3.32 million based on the achievement of certain milestones, including (i) USD 50 thousand upon a successful preclinical safety test, (ii) USD 100 thousand upon first patient enrolled in phase I clinical trial, (iii) USD 120 thousand upon first patient enrolled in Phase 2a clinical trial, (iv) USD 150 thousand upon first patient enrolled in Phase 2b clinical trial, (v) USD 500 thousand upon first patient enrolled in Phase 3 clinical trials, (vi) USD 800 thousand upon approval by the FDA, (vii) USD 800 thousand upon approval by an EU regulatory body, and (viii) USD 800 thousand upon regulatory approval in any additional jurisdiction. | ||||||||
| Aggregate net sales percentage | 5.00% | ||||||||
| Initial public offering (in Dollars) | $ 3,000 | ||||||||
| Sale Agreement [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Ordinary shares issued (in Shares) | 662,980 | ||||||||
| Total proceeds (in Dollars) | $ 340 | ||||||||
| Subsequent Event [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Paid amount (in Dollars) | $ 15 | ||||||||
| Repayment of loan (in Dollars) | $ 10 | ||||||||
| Percentage of monthly profit | 60.00% | ||||||||
| Issued and outstanding share capital, percentage | 19.99% | ||||||||
| Subsequent Event [Member] | Credit Facility Agreement [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Amount of credit facility agreement (in Dollars) | $ 2,500 | ||||||||
| Accrue interest rate | 12.00% | ||||||||
| Subsequent Event [Member] | Second Credit Facility Agreement [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Amount of credit facility agreement (in Dollars) | $ 3,000 | ||||||||
| Accrue interest rate | 12.00% | ||||||||
| ViewBix Inc. [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Ordinary shares issued (in Shares) | 1,027,500 | ||||||||
| ViewBix Inc. [Member] | Subsequent Event [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Issued and outstanding share capital, percentage | 9.99% | ||||||||
| ADS [Member] | Subsequent Event [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Price per share (in Dollars per share) | $ 2.666666 | ||||||||
| ADS [Member] | Bottom of Range [Member] | Subsequent Event [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Ordinary shares issued (in Shares) | 15 | ||||||||
| ADS [Member] | Top o Range [Member] | Subsequent Event [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Ordinary shares issued (in Shares) | 40 | ||||||||
| Ordinary Shares [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Ordinary shares issued (in Shares) | 320,000 | ||||||||
| Forecast [Member] | Subsequent Event [Member] | |||||||||
| Subsequent Events [Line Items] | |||||||||
| Ordinary shares issued (in Shares) | 1 |
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1 Month Xylo Technology Chart |
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