UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 6-K

 

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 2024

 

Commission File Number 001-37381

 

XYLO TECHNOLOGIES LTD
(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

 

Interim Condensed Consolidated Statements of Financial Position   2 to 3
Interim Condensed Consolidated Statements of Loss and Other Comprehensive Income   4
Interim Condensed Consolidated Statements of Changes in Equity   5 to 6
Interim Condensed Consolidated Statements of Cash Flows   7 to 9
Notes to Interim Condensed Consolidated Financial Statements   10 to 46

 

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           6,675       9,357  
Short term deposits           11       12  
Restricted cash           42       166  
Trade accounts receivable           6,255       12,320  
Other receivables           1,721       2,144  
Inventory           -       2,386  
Loans to associates   7b2       1,595       1,684  
Loans to others           268       376  
Related parties   7b1       53       59  
Financial assets at fair value through profit or loss   4A       2,821       3,167  
            19,441       31,671  
                       
NON-CURRENT ASSETS:                      
Property and equipment, net           90       353  
Right-of-use assets, net           8       496  
Investments accounted for using the equity method   3B       974       2,995  
Intangible assets, net   5       17,523       27,336  
Deferred tax asset           100       273  
Financial assets at fair value through profit or loss   4A       1,156       772  
            19,851       32,225  
                       
TOTAL ASSETS           39,292       63,896  

 

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       9,073    13,248 
Short-term loans  3E   2,499    8,982 
Current maturities of long-term loans  3E   2,079    
-
 
Short-term convertible loans  3E   234    
-
 
Lease liabilities       7    102 
Embedded derivatives  3E   284    - 
Liability to event producers       1,530    967 
Warrants at fair value issued by subsidiaries  3E   2,025    1,897 
Related parties  7b3   604    909 
Accrued expenses and other current liabilities       2,139    3,163 
        20,474    29,268 
               
NON-CURRENT LIABILITIES:              
Lease liabilities       -    468 
Long-term loans  3E   1,671    234 
Deferred tax liability       1,204    1,465 
Accrued severance pay, net       22    26 
        2,897    2,193 
               
TOTAL LIABILITIES       23,371    31,461 
               
EQUITY:  6           
Share capital - ordinary shares with no par value:  authorized - June 30,2024 - 200,000,000 and December 31, 2023 - 200,000,000 shares; issued and outstanding - June 30, 2024 - 28,851,761 shares December 31, 2023 - 27,989,465 shares       
-
    
-
 
Share premium       112,913    112,883 
Other capital reserves       11,861    12,106 
Warrants       197    197 
Accumulated deficit       (109,777)   (101,610)
Equity attributable to owners of Xylo Technologies Ltd       15,194    23,576 
Non-controlling interests  3A3   727    8,859 
        15,921    32,435 
               
TOTAL LIABILITIES AND EQUITY       39,292    63,896 

 

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      1,002    3,871 
Services      18,301    49,514 
       19,303    53,385 
              
Cost of revenues:             
Products      920    3,497 
Services      14,224    41,688 
       15,144    45,185 
              
Gross profit      4,159    8,200 
Research and development expenses      2,628    3,542 
Sales and marketing expenses      1,832    2,310 
General and administrative expenses      4,206    6,922 
Loss from changes in fair value of financial assets at fair value through profit or loss  4   1,563    3,978 
Equity losses  3B2   187    1,238 
Impairment of goodwill  5   1,802    
-
 
Operating loss      (8,059)   (9,790)
              
Loss from deconsolidation of Jeffs’ Brands  1A   1,318    
-
 
Other income      (200)   (154)
Changes in fair value of warrants issued to investors      
-
    (238)
Changes in fair value of warrants issued to third party investors by subsidiaries      
-
    (1,017)
Loss in connection with issuance of warrants by a subsidiary  3E   1,833    
-
 
Financial loss, net      920    978 
Loss before taxes on income      (11,930)   (9,359)
Tax expenses (benefit)      (45)   177 
Net loss for the period      (11,885)   (9,536)
              
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      189    306 
Total comprehensive loss for the period      (11,696)   (9,230)
              
Net loss for the period is attributable to:             
Owners of Xylo Technologies Ltd      (8,167)   (8,200)
Non-controlling interests      (3,718)   (1,336)
       (11,885)   (9,536)
Total comprehensive loss for the period is attributable to:             
Owners of Xylo Technologies Ltd      (8,095)   (8,061)
Non-controlling interests      (3,601)   (1,169)
       (11,696)   (9,230)
Loss per ordinary share attributed to Xylo Technologies Ltd             
Basic      (0.28)   (0.33)
Diluted      (0.28)   (0.33)
              
Weighted average ordinary shares outstanding (in thousands)             
Basic      28,833    24,490 
Diluted      28,833    24,490 

 

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                 -       112,883       2,787       1,239       8,955       (875 )     197       (101,610 )     23,576       8,859       32,435  
                                                                                               
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 )
                                                                                               
TRANSACTIONS WITH SHAREHOLDERS:                                                                                              
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.    3E       -       -               -       (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 AS OF JUNE 30, 2024           -       112,913       2,901       1,239       8,524       (803 )     197       (109,777 )     15,194       727       15,921  

 

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               -    111,322    3,260    949    9,689    (690)   197    (85,586)   39,141    15,548    54,689 
                                                            
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)
                                                            
TRANSACTIONS WITH SHAREHOLDERS:                                                           
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 AS OF JUNE 30, 2023       -    111,589    3,662    1,339    9,313    (551)   197    (93,786)   31,763    12,684    44,447 

 

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)   222    (1,839)
Interest paid   (391)   (28)
Income tax paid   (71)   (512)
Net cash flow used in operating activities   (240)   (2,379)
           
CASH FLOWS USED IN INVESTING ACTIVITIES:          
Purchase of property and equipment   (8)   (21)
Acquisitions of an associate by Jeffs’ Brands   
-
    (2,993)
Acquisitions of investments at fair value through profit or loss   
-
    (203)
Deconsolidation of Jeffs’ Brands (see Appendix B)   (142)   
-
 
Purchase of intangible assets by Jeffs’ Brands   (4)   (1,681)
Loans to associates   
-
    (492)
Proceeds from sale of financial assets at fair value through profit or loss and securities of an associate   
-
    328 
Changes in short term deposits   105    848 
Net cash flow used in investing activities   (49)   (4,214)
           
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:          
Cash paid to non-controlling interests by Viewbix Inc.   
-
    (2,625)
Proceeds from deemed issuance of shares by Charging Robotics Ltd.   
-
    466 
Receipt of short-term loans   2,301    1,000 
Repayment of short-term loans   (4,711)   (111)
Receipt of long-term loans   
-
    1,500 
Repayment of long-term loans   (320)   (874)
Receipts on account of shares and warrants issued by Viewbix Inc. (see note 3E)   236    
-
 
Dividend paid to non-controlling interests   
-
    (728)
Principal elements of lease liability   (40)   (37)
Net cash flow used in financing activities   (2,534)   (1,409)
           
DECREASE IN CASH AND CASH EQUIVALENTS   (2,823)   (8,002)
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD   9,357    20,065 
GAINS FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS   141    296 
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF THE PERIOD   6,675    12,359 

 

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   (11,930)   (9,359)
Adjustment in respect of:          
Depreciation and amortization   3,496    1,931 
Loss from changes in fair value of financial assets at fair value through profit or loss   1,569    3,978 
Changes in fair value of warrants issued by subsidiaries   

2,161

    (1,255)
Equity losses   187    1,238 
Finance expenses (income)   741    (543)
Share based compensation to employees and service providers   192    470 
Deemed stock exchange listing expenses   
-
    290 
Loss from deconsolidation of Jeffs’ Brands   1,318    
-
 
Interest paid   391    28 
Income tax paid   71    512 
           
CHANGES IN OPERATING ASSET AND LIABILITY ITEMS:          
Decrease in trade accounts receivable   5,889    2,596 
Decrease (Increase) in inventory   161    (756)
Decrease (Increase) in other current assets   (157)   814 
Decrease in trade accounts payable   (3,829)   (1,978)
Decrease in accrued compensation expenses   (4)   (106)
Increase (Decrease) in accrued expenses and other current liabilities   (34)   301 
CASH FLOWS FROM (USED IN) OPERATIONS   222    (1,839)
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Income receivable from sale of shares (see note 3C)   
-
    5,774 
Non-cash investments in securities   

100

    776 
Non-cash sale and purchase of securities (see note 3I)   
-
    (937)
Consideration payable by Jeffs’ Brands to sellers of intangible assets   
-
    390 
Right of use assets obtained in exchange for lease liabilities        33 
Conversion of loan into Polyrizon shares (see note 3G)   
-
    314 
Deemed extinguishment and re-issuance of debt by Viewbix Inc. (see note 3E)   290    
-
 
Derecognition of right of use asset and lease liability upon lease termination (see note 3E)   389    
-
 

 

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     (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  

 

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 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.  

 

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 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.

 

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 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).

 

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 3.7 million. The Company anticipates such cash and cash equivalents will provide sufficient liquidity for more than a twelve-month period from the date of these financial statements.

 

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.

 

13

 

 

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.

 

14

 

 

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

 

General information

 

   Main place of
the business
   Ownership
rights
held by the
Company %
   Ownership rights
held by non-
controlling
interests %
 
June 30, 2024            
Eventer  Israel    46.21%   53.79%
Fuel Doctor  USA    67%   33%
GERD IP  USA    90%   10%
Gix Internet  Israel    45.75%   54.25%

 

   Main place of
the business
   Ownership
rights
held by the
Company %
   Ownership rights
held by non-
controlling
interests %
 
December 31, 2023            
Jeffs’ Brands  Israel    34.11%   65.89%
Eventer  Israel    46.21%   53.79%
Fuel Doctor  USA    67%   33%
GERD IP  USA    90%   10%
Gix Internet  Israel    45.75%   54.25%

 

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

 

Balance of non-controlling interests:

 

   June 30,
2024
   December 31,
2023
 
   USD in thousands 
         
Eventer   253    371 
Jeffs’ Brands   
-
    5,628 
Gix Internet   363    2,642 
GERD IP   57    57 
Fuel Doctor   54    161 
    727    8,859 

 

Net income (loss) attributed to non-controlling interests:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Eventer   (128)   88 
Jeffs’ Brands   (383)   (661)
Gix Internet   (3,079)   (668)
Fuel Doctor   (128)   (95)
    (3,718)   (1,336)

 

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. This table summarizes the total investments accounted for using the equity method:

 

   June 30,
2024
   December 31,
2023
 
   USD in thousands 
         
Polyrizon   521    499 
SciSparc Nutraceuticals Inc   
-
    1,940 
A.I Conversation Systems   
-
    76 
Revoltz   83    110 
Zig Miami 54   370    370 
    974    2,995 

 

2. This table summarizes the total share of loss (profit) of investments accounted for using the equity method:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Odysight.ai   -    655 
Parazero   -    384 
Laminera   -    34 
Polyrizon   77    65 
SciSparc Nutraceuticals Inc.   13    89 
A.I Conversation Systems   74    - 
Revoltz   23    11 
    187    1,238 

 

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. This table summarize the Company’s rights in share capital and voting rights:

 

   Main place
of business
   Company rights in share
capital and voting rights
 
June 30, 2024        
Laminera  Israel    19.70%
Polyrizon  Israel    38.31%
A.I Conversation Systems  Israel    36.08%
Revoltz  Israel    19.90%
Zig Miami 54  USA    60%

 

December 31, 2023        
Laminera  Israel    19.70%
Polyrizon  Israel    38.76%
SciSparc Nutraceuticals  USA    49%
A.I Conversation Systems  Israel    36.08%
Revoltz  Israel    19.90%
Zig Miami 54  USA    60%

 

4. Fair value of investments accounted for using the equity method for which there is a market price on the stock exchange:

 

   June 30,
2024
   December 31,
2023
 
   Carrying
amount
   Quoted
fair value
   Carrying
amount
   Quoted
fair value
 
   USD in thousands 
A.I Conversation System   
         -
    331    76    882 

 

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 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.

 

D. Eventer

 

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.

 

19

 

 

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 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

 

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 31.86% of the outstanding ordinary shares of Eventer.

 

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.

 

20

 

 

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 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

 

  1. On March 30, 2021, Eventer granted its CEO 29,944 options to purchase 29,944 shares at an exercise price of 0.001 NIS per share. The options vested on April 1, 2024, and on August 24, 2024 the options were converted into common stock.

 

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.

 

  2. On March 30, 2021, Eventer granted Round Robin Ltd., which is one of the founding partners of Eventer, 29,944 options to purchase 29,944 shares at exercise price of 1.0 NIS per share. The options vested and can be converted to Eventer’s ordinary shares until August 31, 2025.

 

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.

 

21

 

 

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 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.

 

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 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.

 

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 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.

 

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 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.

 

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) 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.  

 

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 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.

  

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 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.

 

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 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.

 

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 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.

 

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 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.

 

K. Laminera

 

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.

 

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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 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

 

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 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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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.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

 

   June 30, 2024   December 31, 2023 
   Level 1   Level 3   Total   Level 1   Level 3   Total 
   USD in thousands 
Safe Foods Inc. shares   1    
-
    1    4    
-
    4 
Maris-Tech Ltd. shares   150    
-
    150    107    
-
    107 
Maris-Tech Ltd. warrants   
-
    9    9    
-
    12    12 
Tondo Smart Ltd. shares   91    
-
    91    106    
-
    106 
Safee shares   
-
    400    400    
-
    400    400 
SciSparc shares   3    
-
    3    83    
-
    83 
Polyrizon warrants   
-
    289    289    
-
    105    105 
Jeffs’ Brands warrants   8    78    86    
-
    
-
    
-
 
Jeffs’ Brands shares   125    
-
    125                
Elbit Imaging Ltd. shares   405    
-
    405    468    
-
    468 
Hydreight Technologies Inc. shares   74    
-
    74    104    
-
    104 
Clearmind Medicine Inc. warrants   
-
    1    1    
-
    3    3 
Clearmind Medicine Inc. shares   13    
-
    13    21    
-
    21 
Metagramm shares   
-
    250    250    
-
    250    250 
Colugo Systems Ltd. shares   
-
    400    400    
-
    400    400 
Bubbles Intergroup Ltd. shares   103    
-
    103    98    
-
    98 
Automax Ltd warrants   6    
-
    6    6    
-
    6 
Automax Ltd. shares   175    
-
    175    324    
-
    324 
Elbit Medical Technologies Ltd. shares   7    
-
    7    12    
-
    12 
Parazero shares   1,389    
-
    1,389    1,436    
-
    1,436 
Total   2,550    1,427    3,977    2,769    1,170    3,939 

 

  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   
  -
    62    62    
-
    62    62 
Loan to Polyrizon   
-
    
-
    
-
    
-
    78    78 
Loan to Zig Miami 54 (note 3F)   
-
    1,533    1,533    
-
    1,545    1,545 
Total   
-
    1,595    1,595    
-
    1,685    1,685 

 

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)   
-
    500    500    10    500    510 
Total   
-
    500    500    10    500    510 

 

D.The following table presents the Level 1 financial assets – investments in shares and warrants roll-forward during the six months ended June 30, 2024:

 

   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   4    106    98    -    104    83    107    6    -    21    468    324    1,436    12    2,769 
Deconsolidation of Jeffs’ Brands   -    -    -    1,393    -    (50)   -    -    42    -    -    -    -    -    1,385 
Net changes at fair value recognized through profit or loss   (3)   (15)   5    (1,268)   (30)   (30)   43    1    (34)   (8)   (63)   (149)   (47)   (5)   (1,603)
Sale of securities   -    -    -    -    -    -    -    (1)   -    -    -    -    -    -    (1)
Balance as of June 30, 2024   1    91    103    125    74    3    150    6    8    13    405    175    1,389    7    2,550 

 

34

 

 

XYLO TECHNOLOGIES LTD

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 4 - FINANCIAL INSTRUMENTS (continued)

 

Financial assets (continued)

 

E.The following table presents the Level 3 financial assets – investments in shares and warrants roll-forward during the six months ended June 30, 2024:

 

   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   12    105    3    
-
    400    400    250    1,170 
Net changes at fair value recognized through profit or loss   (3)   184    (2)   (39)   
-
    
-
    
-
    140 
Deconsolidation of Jeffs’ Brands upon loss f control   
-
    
-
    
-
    117    
-
    
-
    
-
    117 
Balance as of June 30, 2024   9    289    1    78    400    400    250    1,427 

 

F.The following table presents the Level 3 financial assets – loans to associates and others roll-forward during the six months ended June 30, 2024:

 

   Loan to
Revoltz
   Loan to
Polyrizon
   Loan to
Zig Miami 54
   Total 
   USD in thousands 
Balance as of January 1, 2024   62    78    1,545    1,685 
Net changes at fair value recognized through profit or loss        22    (12)   10 
Loan conversion        (100)        (100)
Balance as of June 30, 2024   62    
-
    1,533    1,595 

 

G.The following table presents the level 1 and level 3 fair value financial assets included in other receivables roll-forward during the six months ended June 30, 2024:

 

   Shares
receivable
   Total 
   USD in thousands 
Balance as of January 1, 2024   510    510 
Transfer to investments in shares   (8)   (8)
Net changes at fair value recognized through profit or loss   (2)   
-
 
Balance as of June 30, 2024   500    502 

 

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 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.

 

H.The following table presents the financial liabilities that were measured at fair value through profit or loss at level 3:

 

    June 30,
2024
    December 31,
2023
 
    USD in thousands  
Warrants at fair value issued by subsidiaries     2,025       1,897  
Embedded derivatives     284       -  
      2,309       1,897  

 

I.The following table presents the Level 3 financial liabilities roll-forward:

 

    Warrants  
    USD
in thousands
 
Balance as of January 1, 2024     1,897  
Deconsolidation of Jeffs’ Brands upon loss of control     (1,874 )
Viewbix June 2024 Facility Agreement (see note 3E)     2,286  
Balance as of June 30, 2024     2,309  

 

36

 

 

XYLO TECHNOLOGIES LTD

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 5 - GOODWILL AND INATANGIBLE ASSETS

 

A. Details of the Company’s Intangible assets:

 

   June 30,   December 31, 
   2024   2023 
   Unaudited   Audited 
   USD in thousands 
         
Technology   7,067    8,042 
Customer relationship   4,178    4,601 
Patent   104    100 
Brand name   
-
    6,043 
Goodwill   6,174    8,550 
Intangible assets, net   17,523    27,336 

 

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 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 deconsolidation and resulted loss of control in Jeffs’ Brands as of January 28, 2024. As a result, the brand name and the goodwill related to Jeffs’ Brands were deconsolidated as of such date.

 

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 1,802 thousand in the consolidated statements of income/loss and other comprehensive income/loss, which was driven mainly due to a decrease in the cash flow projections.

 

37

 

 

XYLO TECHNOLOGIES LTD

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 6 - EQUITY

 

a.Share capital:

 

1)Composed as follows:

 

   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   200,000    200,000    28,852    27,989 

 

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 862,298 Ordinary Shares in relation to RSUs grants.

 

  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 1,280,000 options pursuant to the Company’s option plan, to certain employees, consultants and directors.

 

In October 2021, the Company’s board of directors approved the grant of 90,000 options to consultants.

 

The amounts of expenses that were recorded for options to employees and other service providers are USD 14 thousand and USD 143 thousand for the six months ended June 30, 2024 and 2023, respectively.

 

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 three years commencing on January 1, 2023, with 1/12 of such options vesting at the end of each subsequent three-month period following the grant.

 

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 130 thousand in relation to these RSUs.

 

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)Composed as follows:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
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)   
-
 

 

(1) Includes granted options benefit in the aggregated amount of USD 3 thousand and USD 56 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 31 thousand and USD 67 thousand for the six months period ended June 30, 2024, and 2023, respectively.

 

(2) Includes granted options benefit in the aggregated amount of USD 6 thousand and USD 87 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 54 thousand and USD 115 thousand for the six months period ended June 30, 2024, and 2023, respectively.

 

(3) Includes consulting fees to Pure Capital who is a related party of Jeffs’ Brands.

 

(4) Compensation to Cortex’s CTO, a related party of Gix Internet.

 

(5) Includes inventory storage expenses to Pure NJ Logistics LLC who is a related party of Jeffs’ Brands.

 

(6) Includes consulting income and a one-time signing bonus from SciSparc Nutraceuticals who is a related party of Jeffs’ Brands.
   
(7) Includes royalties paid to Pure Capital who is a related party of Jeffs’ Brands.

 

(8) On April 30, 2024, the Company and Jeffs’ Brands signed a consulting agreement according to which, the Company will provide Jeffs’ Brands with business consulting services in exchange of monthly management fees of USD 20 thousand.   

 

(9)

Includes royalties the Company received from Jeffs’ Brands.

 

(10) On August 1, 2024, the Company and Parazero signed a consulting agreement pursuant to which, the Company will provide Parazero with business consulting services in exchange of monthly management fees of USD 10 thousand.   

 

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 4,000,000 in the total aggregate for all loss. The policy was placed for a period of 17 months at a premium of USD 191 thousand (for the period). It includes a deductible of USD 300,000 for each claim, other than securities related claims filed in the United States or Canada, for which the deductible is USD 1,000,000.

 

b. Balances with related parties:

 

(1)Current assets under related parties section:

 

   June 30,   December 31, 
   2024   2023 
   USD in thousands 
         
Other receivables (a related party of Gix Internet)   53    53 
Other receivables (a related party of Eventer)   
-
    6 
    53    59 

 

(2)Current assets under loans to associates section:

 

    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Loan to Zig Miami 54 (note 3F)     1,533       1,545  
Loan to Polyrizon     -       77  
Loan to Revoltz     62       62  
      1,595       1,684  

 

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)Current assets under loans to others section:

 

    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Loan to Metagramm     268       250  
Loan to Safee     -       126  
      268       376  

 

(4)Current Liabilities:

 

    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Compensation to key management personnel (*)     600       681  
Current liabilities to related parties of Jeffs’ Brands     -       216  
Other accrued expenses to related parties of Gix Internet     4       6  
Other accrued expenses to related parties of Eventer     -       6  
      604       909  
                 
Loans from related parties of Viewbix Ltd. (note 3E)     121       187  
Derivative warrant liability to related parties of Viewbix Inc. (note 3E)     7       -  
Short-term convertible loans from related parties of Viewbix Inc. (note 3E)     44       -  
Embedded derivative to related parties of Viewbix Inc. (note 3E)     134       -  

 

* As of June 30, 2024, these balances include compensation to key management personnel of the Company, Eventer, Gix Internet and Fuel Doctor.

 

42

 

 

XYLO TECHNOLOGIES LTD

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 8 - REVENUES

 

  a. Disaggregation of Revenues:

 

The following table present the Group’s revenues disaggregated by revenue type:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Revenues from commissions (from Eventer)   796    1,498 
Products (from Jeffs’ Brands) *   1,002    3,871 
Management fees (from Xylo Technologies) **   170    
-
 
Revenues from internet services (from Gix Internet)   17,335    48,016 
    19,303    53,385 

 

(*) The revenues from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.

 

(**)  Revenues from consulting services to Jeffs’ Brands and Parazero (see note 7(a)).

 

b.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):

 

    Six months ended
June 30
 
    2024     2023  
    USD in thousands  
Customer A     3,399       7,753  
                 
Customer B     2,312       8,109  
                 
Customer C     2,429       -  

 

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.

 

The table set forth other information of the Group:

 

    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     7,469              -       24,628       2,159       3,642       1,394 (*)     39,292  
                                                         
Total segments’ liabilities     (744 )     -       (19,972 )     (1,979 )     (678 )     -       (23,371 )

 

(*) Includes investments accounted for using the equity method of USD 810 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,533 thousand.

 

   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   10,708    13,122    35,178    1,874    3,444(*)   (430)   63,896 
                                    
Total segments’ liabilities   (867)   (4,483)   (25,723)   (2,015)   (605)   2,232    (31,461)

 

(*) Includes investments accounted for using the equity method of USD 498 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,545 thousand.

 

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     170       1,002       17,335       796       -       -       19,303  
                                                         
Segment results - operating loss     (1,409     (567     (3,887     (249     (468 )*      (1,479     (8,059
                                                         
Non-operating income (loss)     -       10       (1,642     -       -       (1,319     (2,951
                                                         
Finance income (loss)     115       (26     (855     (60     -       (94     (920
                                                         
Loss before taxes on income     (1,294     (583     (6,384     (309     (468     (2,892     (11,930
                                                         
Tax benefit (expense) on income     -       25       20       -       -       -       45  
                                                         
Segment results - net loss     (1,294     (558     (6,364     (309     (468     (2,892     (11,885

  

* Includes equity losses of USD 23 thousand in relation to Revoltz and USD 77 thousand in relation to Polyrizon.
   
** The operating results from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.

 

   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   
-
    3,871    48,016    1,498    
-
    
-
    53,385 
                                    
Segment results - operating income (loss)   (6,301)   (2,131)   (46)   140    (1,452)*   
-
    (9,790)
                                    
Non-operating income   157    1,252    
-
    
-
    
-
    
-
    1,409 
                                    
Finance income (loss)   (219)   (193)   (765)   (55)   (7)   261    (978)
                                    
Profit (Loss) before taxes on income   (6,363)   (1,072)   (811)   85    (1,459)   261    (9,359)
                                    
Tax benefit (expense) on income   3    (9)   (340)   
-
    
-
    169    (177)
                                    
Segment results - net profit (loss)   (6,360)   (1,081)   (1,151)   85    (1,459)   430    (9,536)

 

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 2.5 million. The amount will accrue interest at a rate of 12% per annum and will be paid in shares and warrants.

 

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 15 thousand per month. In the event the pilot will not be approved commencing 6 months of the amendment date, Metagramm will repay the loan including all recruiting interest, in monthly repayments, at the monthly amount of the highest of: (i) USD 10 thousand or (ii) 60%of Metagramm’s monthly profit. Metagramm will commence the monthly payments at the earlier of 6 months commencing the amendment date or commencing the dated of the pilot approval.

 

  4. On July 2, 2024, the Company signed a sales agreement to sell a portion of its stake of 662,980 shares in Polyrizon for total proceeds of approximately USD 340 thousand. As a result, the Company’s holdings in Polyrizon were diluted from 38.31% to 9.75% of the issued and outstanding share capital of Polyrizon.

 

  5. On July 28, 2024, Viewbix Inc. entered into a second credit facility agreement for USD 3 million with certain lenders. The loan amount will accrue interest at a rate of 12% per annum and will be paid in shares and warrants.

 

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 9.99% of its issued and outstanding share capital in exchange for 19.99% of Metagramm’s issued and outstanding share capital. The transactions are expected to close following the Uplist (as defined in note 3E).

 

  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 one (1) new ADS for every 2.666666 old ADSs held. As a result, the number of ordinary shares of the Company represented by each American Depositary Share, or ADS, was changed from fifteen (15) ordinary shares to forty (40) ordinary shares effective as of August 5, 2024.

 

  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, 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.

 

Additionally, SciSparc is eligible to receive royalties, on a country-by-country and product-by-product basis, at a rate of 5%, on aggregate net sales of a product that is based on the Licensed Patent Rights for a period of fifteen years from the date of the first sale of a Licensed Product, on a country-by-country basis, or through the date of expiration of valid claims of any licensed patents with respect to a Licensed Product in such country, if longer.

 

In consideration for purchase of the license, Polyrizon issued to SciSparc 320,000 ordinary shares and additionally committed to issue to Sciparc additional securities in the occurrence of certain events, including the listing of Polyrizon’s shares on a public exchange pursuant to an initial public offering, for a period of two years, such that the value of the aggregate amount of shares and other securities, as applicable, to be issued to Scisparc will equal USD 3 million based on the price at which such securities are to be offered at such initial public offering.

 

 

46

 

 

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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

 

 

v3.24.3
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
v3.24.3
Interim Condensed Consolidated Statements of Financial Position - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
CURRENT ASSETS:    
Cash and cash equivalents $ 6,675 $ 9,357
Short term deposits 11 12
Restricted cash 42 166
Trade accounts receivable 6,255 12,320
Other receivables 1,721 2,144
Inventory 2,386
Loans to associates 1,595 1,684
Loans to others 268 376
Related parties 53 59
Financial assets at fair value through profit or loss 2,821 3,167
Total current assets 19,441 31,671
NON-CURRENT ASSETS:    
Property and equipment, net 90 353
Right-of-use assets, net 8 496
Investments accounted for using the equity method 974 2,995
Intangible assets, net 17,523 27,336
Deferred tax asset 100 273
Financial assets at fair value through profit or loss 1,156 772
Total non-current assets 19,851 32,225
TOTAL ASSETS 39,292 63,896
CURRENT LIABILITIES:    
Trade accounts payable 9,073 13,248
Short-term loans 2,499 8,982
Current maturities of long-term loans 2,079
Short-term convertible loans 234
Lease liabilities 7 102
Embedded derivatives 284
Liability to event producers 1,530 967
Warrants at fair value issued by subsidiaries 2,025 1,897
Related parties 604 909
Accrued expenses and other current liabilities 2,139 3,163
Total current liabilities 20,474 29,268
NON-CURRENT LIABILITIES:    
Lease liabilities   468
Long-term loans 1,671 234
Deferred tax liability 1,204 1,465
Accrued severance pay, net 22 26
Total non-current liabilities 2,897 2,193
TOTAL LIABILITIES 23,371 31,461
EQUITY:    
Share capital - ordinary shares with no par value: authorized - June 30,2024 - 200,000,000 and December 31, 2023 - 200,000,000 shares; issued and outstanding - June 30, 2024 - 28,851,761 shares December 31, 2023 - 27,989,465 shares
Share premium 112,913 112,883
Other capital reserves 11,861 12,106
Warrants 197 197
Accumulated deficit (109,777) (101,610)
Equity attributable to owners of Xylo Technologies Ltd 15,194 23,576
Non-controlling interests 727 8,859
Total Equity 15,921 32,435
TOTAL LIABILITIES AND EQUITY $ 39,292 $ 63,896
v3.24.3
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
v3.24.3
Interim Condensed Consolidated Statements of Loss and Other Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Revenues    
Revenues $ 19,303 $ 53,385
Cost of revenues:    
Cost of revenues 15,144 45,185
Gross profit 4,159 8,200
Research and development expenses 2,628 3,542
Sales and marketing expenses 1,832 2,310
General and administrative expenses 4,206 6,922
Loss from changes in fair value of financial assets at fair value through profit or loss 1,563 3,978
Equity losses 187 1,238
Impairment of goodwill 1,802
Operating loss (8,059) (9,790)
Loss from deconsolidation of Jeffs’ Brands 1,318
Other income (200) (154)
Changes in fair value of warrants issued to investors (238)
Changes in fair value of warrants issued to third party investors by subsidiaries (1,017)
Loss in connection with issuance of warrants by a subsidiary 1,833
Financial loss, net 920 978
Loss before taxes on income (11,930) (9,359)
Tax expenses (benefit) (45) 177
Net loss for the period (11,885) (9,536)
Other comprehensive income    
Share of other comprehensive income of consolidated subsidiaries and associates accounted for using the equity method 189 306
Total comprehensive loss for the period (11,696) (9,230)
Net loss for the period is attributable to:    
Owners of Xylo Technologies Ltd (8,167) (8,200)
Non-controlling interests (3,718) (1,336)
Net loss for the period (11,885) (9,536)
Total comprehensive loss for the period is attributable to:    
Owners of Xylo Technologies Ltd (8,095) (8,061)
Non-controlling interests (3,601) (1,169)
Total comprehensive loss for the period $ (11,696) $ (9,230)
Basic (in Dollars per share) $ (0.28) $ (0.33)
Diluted (in Dollars per share) $ (0.28) $ (0.33)
Basic (in Shares) 28,833 24,490
Diluted (in Shares) 28,833 24,490
Products    
Revenues    
Revenues $ 1,002 $ 3,871
Cost of revenues:    
Cost of revenues 920 3,497
Services    
Revenues    
Revenues 18,301 49,514
Cost of revenues:    
Cost of revenues $ 14,224 $ 41,688
v3.24.3
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
v3.24.3
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
CASH FLOWS USED IN OPERATING ACTIVITIES:    
Cash flows from (used in) operations (see Appendix A) $ 222 $ (1,839)
Interest paid (391) (28)
Income tax paid (71) (512)
Net cash flow used in operating activities (240) (2,379)
CASH FLOWS USED IN INVESTING ACTIVITIES:    
Purchase of property and equipment (8) (21)
Acquisitions of an associate by Jeffs’ Brands (2,993)
Acquisitions of investments at fair value through profit or loss (203)
Deconsolidation of Jeffs’ Brands (see Appendix B) (142)
Purchase of intangible assets by Jeffs’ Brands (4) (1,681)
Loans to associates (492)
Proceeds from sale of financial assets at fair value through profit or loss and securities of an associate 328
Changes in short term deposits 105 848
Net cash flow used in investing activities (49) (4,214)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:    
Cash paid to non-controlling interests by Viewbix Inc. (2,625)
Proceeds from deemed issuance of shares by Charging Robotics Ltd. 466
Receipt of short-term loans 2,301 1,000
Repayment of short-term loans (4,711) (111)
Receipt of long-term loans 1,500
Repayment of long-term loans (320) (874)
Receipts on account of shares and warrants issued by Viewbix Inc. (see note 3E) 236
Dividend paid to non-controlling interests (728)
Principal elements of lease liability (40) (37)
Net cash flow used in financing activities (2,534) (1,409)
DECREASE IN CASH AND CASH EQUIVALENTS (2,823) (8,002)
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 9,357 20,065
GAINS FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS 141 296
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 6,675 12,359
CASH FLOWS FROM (USED IN) OPERATIONS:    
Loss for the period before taxes on income (11,930) (9,359)
Adjustment in respect of:    
Depreciation and amortization 3,496 1,931
Loss from changes in fair value of financial assets at fair value through profit or loss 1,569 3,978
Changes in fair value of warrants issued by subsidiaries 2,161 (1,255)
Equity losses 187 1,238
Finance expenses (income) 741 (543)
Share based compensation to employees and service providers 192 470
Deemed stock exchange listing expenses 290
Loss from deconsolidation of Jeffs’ Brands 1,318
Interest paid 391 28
Income tax paid 71 512
CHANGES IN OPERATING ASSET AND LIABILITY ITEMS:    
Decrease in trade accounts receivable 5,889 2,596
Decrease (Increase) in inventory 161 (756)
Decrease (Increase) in other current assets (157) 814
Decrease in trade accounts payable (3,829) (1,978)
Decrease in accrued compensation expenses (4) (106)
Increase (Decrease) in accrued expenses and other current liabilities (34) 301
CASH FLOWS FROM (USED IN) OPERATIONS 222 (1,839)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Income receivable from sale of shares (see note 3C) 5,774
Non-cash investments in securities 100 776
Non-cash sale and purchase of securities (see note 3I) (937)
Consideration payable by Jeffs’ Brands to sellers of intangible assets 390
Right of use assets obtained in exchange for lease liabilities   33
Conversion of loan into Polyrizon shares (see note 3G) 314
Deemed extinguishment and re-issuance of debt by Viewbix Inc. (see note 3E) 290
Derecognition of right of use asset and lease liability upon lease termination (see note 3E) $ 389
v3.24.3
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
v3.24.3
General
6 Months Ended
Jun. 30, 2024
General [Abstract]  
GENERAL

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 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).

 

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 3.7 million. The Company anticipates such cash and cash equivalents will provide sufficient liquidity for more than a twelve-month period from the date of these financial statements.

 

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.

v3.24.3
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

 

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.

 

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.

v3.24.3
Interest in Other Entities
6 Months Ended
Jun. 30, 2024
Interest in Other Entities [Abstract]  
INTEREST IN OTHER ENTITIES

NOTE 3 - INTEREST IN OTHER ENTITIES

 

A. Investments in subsidiaries

 

1. Additional information about subsidiaries held by the Company

 

General information

 

   Main place of
the business
   Ownership
rights
held by the
Company %
   Ownership rights
held by non-
controlling
interests %
 
June 30, 2024            
Eventer  Israel    46.21%   53.79%
Fuel Doctor  USA    67%   33%
GERD IP  USA    90%   10%
Gix Internet  Israel    45.75%   54.25%

 

   Main place of
the business
   Ownership
rights
held by the
Company %
   Ownership rights
held by non-
controlling
interests %
 
December 31, 2023            
Jeffs’ Brands  Israel    34.11%   65.89%
Eventer  Israel    46.21%   53.79%
Fuel Doctor  USA    67%   33%
GERD IP  USA    90%   10%
Gix Internet  Israel    45.75%   54.25%

 

2. Information related to non-controlling interests

 

Balance of non-controlling interests:

 

   June 30,
2024
   December 31,
2023
 
   USD in thousands 
         
Eventer   253    371 
Jeffs’ Brands   
-
    5,628 
Gix Internet   363    2,642 
GERD IP   57    57 
Fuel Doctor   54    161 
    727    8,859 

 

Net income (loss) attributed to non-controlling interests:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Eventer   (128)   88 
Jeffs’ Brands   (383)   (661)
Gix Internet   (3,079)   (668)
Fuel Doctor   (128)   (95)
    (3,718)   (1,336)

 

B. Investments accounted for using the equity method

 

1. This table summarizes the total investments accounted for using the equity method:

 

   June 30,
2024
   December 31,
2023
 
   USD in thousands 
         
Polyrizon   521    499 
SciSparc Nutraceuticals Inc   
-
    1,940 
A.I Conversation Systems   
-
    76 
Revoltz   83    110 
Zig Miami 54   370    370 
    974    2,995 

 

2. This table summarizes the total share of loss (profit) of investments accounted for using the equity method:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Odysight.ai   -    655 
Parazero   -    384 
Laminera   -    34 
Polyrizon   77    65 
SciSparc Nutraceuticals Inc.   13    89 
A.I Conversation Systems   74    - 
Revoltz   23    11 
    187    1,238 

 

3. This table summarize the Company’s rights in share capital and voting rights:

 

   Main place
of business
   Company rights in share
capital and voting rights
 
June 30, 2024        
Laminera  Israel    19.70%
Polyrizon  Israel    38.31%
A.I Conversation Systems  Israel    36.08%
Revoltz  Israel    19.90%
Zig Miami 54  USA    60%

 

December 31, 2023        
Laminera  Israel    19.70%
Polyrizon  Israel    38.76%
SciSparc Nutraceuticals  USA    49%
A.I Conversation Systems  Israel    36.08%
Revoltz  Israel    19.90%
Zig Miami 54  USA    60%

 

4. Fair value of investments accounted for using the equity method for which there is a market price on the stock exchange:

 

   June 30,
2024
   December 31,
2023
 
   Carrying
amount
   Quoted
fair value
   Carrying
amount
   Quoted
fair value
 
   USD in thousands 
A.I Conversation System   
         -
    331    76    882 

 

C. Odysight.ai

 

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.

 

D. Eventer

 

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.

 

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 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

 

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 31.86% of the outstanding ordinary shares of Eventer.

 

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

 

  1. On March 30, 2021, Eventer granted its CEO 29,944 options to purchase 29,944 shares at an exercise price of 0.001 NIS per share. The options vested on April 1, 2024, and on August 24, 2024 the options were converted into common stock.

 

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.

 

  2. On March 30, 2021, Eventer granted Round Robin Ltd., which is one of the founding partners of Eventer, 29,944 options to purchase 29,944 shares at exercise price of 1.0 NIS per share. The options vested and can be converted to Eventer’s ordinary shares until August 31, 2025.

 

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.

 

E. Gix Internet

 

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.  

 

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 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.

  

G. Polyrizon

 

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.

 

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 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.

 

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 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.

 

J. Charging Robotics Inc. (Formally “Fuel Doctor”

 

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.

 

K. Laminera

 

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.

 

L. Metagramm

 

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

 

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 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.

v3.24.3
Financial Instruments
6 Months Ended
Jun. 30, 2024
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:

 

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.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

 

   June 30, 2024   December 31, 2023 
   Level 1   Level 3   Total   Level 1   Level 3   Total 
   USD in thousands 
Safe Foods Inc. shares   1    
-
    1    4    
-
    4 
Maris-Tech Ltd. shares   150    
-
    150    107    
-
    107 
Maris-Tech Ltd. warrants   
-
    9    9    
-
    12    12 
Tondo Smart Ltd. shares   91    
-
    91    106    
-
    106 
Safee shares   
-
    400    400    
-
    400    400 
SciSparc shares   3    
-
    3    83    
-
    83 
Polyrizon warrants   
-
    289    289    
-
    105    105 
Jeffs’ Brands warrants   8    78    86    
-
    
-
    
-
 
Jeffs’ Brands shares   125    
-
    125                
Elbit Imaging Ltd. shares   405    
-
    405    468    
-
    468 
Hydreight Technologies Inc. shares   74    
-
    74    104    
-
    104 
Clearmind Medicine Inc. warrants   
-
    1    1    
-
    3    3 
Clearmind Medicine Inc. shares   13    
-
    13    21    
-
    21 
Metagramm shares   
-
    250    250    
-
    250    250 
Colugo Systems Ltd. shares   
-
    400    400    
-
    400    400 
Bubbles Intergroup Ltd. shares   103    
-
    103    98    
-
    98 
Automax Ltd warrants   6    
-
    6    6    
-
    6 
Automax Ltd. shares   175    
-
    175    324    
-
    324 
Elbit Medical Technologies Ltd. shares   7    
-
    7    12    
-
    12 
Parazero shares   1,389    
-
    1,389    1,436    
-
    1,436 
Total   2,550    1,427    3,977    2,769    1,170    3,939 

 

  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   
  -
    62    62    
-
    62    62 
Loan to Polyrizon   
-
    
-
    
-
    
-
    78    78 
Loan to Zig Miami 54 (note 3F)   
-
    1,533    1,533    
-
    1,545    1,545 
Total   
-
    1,595    1,595    
-
    1,685    1,685 

 

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)   
-
    500    500    10    500    510 
Total   
-
    500    500    10    500    510 

 

D.The following table presents the Level 1 financial assets – investments in shares and warrants roll-forward during the six months ended June 30, 2024:

 

   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   4    106    98    -    104    83    107    6    -    21    468    324    1,436    12    2,769 
Deconsolidation of Jeffs’ Brands   -    -    -    1,393    -    (50)   -    -    42    -    -    -    -    -    1,385 
Net changes at fair value recognized through profit or loss   (3)   (15)   5    (1,268)   (30)   (30)   43    1    (34)   (8)   (63)   (149)   (47)   (5)   (1,603)
Sale of securities   -    -    -    -    -    -    -    (1)   -    -    -    -    -    -    (1)
Balance as of June 30, 2024   1    91    103    125    74    3    150    6    8    13    405    175    1,389    7    2,550 

 

E.The following table presents the Level 3 financial assets – investments in shares and warrants roll-forward during the six months ended June 30, 2024:

 

   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   12    105    3    
-
    400    400    250    1,170 
Net changes at fair value recognized through profit or loss   (3)   184    (2)   (39)   
-
    
-
    
-
    140 
Deconsolidation of Jeffs’ Brands upon loss f control   
-
    
-
    
-
    117    
-
    
-
    
-
    117 
Balance as of June 30, 2024   9    289    1    78    400    400    250    1,427 

 

F.The following table presents the Level 3 financial assets – loans to associates and others roll-forward during the six months ended June 30, 2024:

 

   Loan to
Revoltz
   Loan to
Polyrizon
   Loan to
Zig Miami 54
   Total 
   USD in thousands 
Balance as of January 1, 2024   62    78    1,545    1,685 
Net changes at fair value recognized through profit or loss        22    (12)   10 
Loan conversion        (100)        (100)
Balance as of June 30, 2024   62    
-
    1,533    1,595 

 

G.The following table presents the level 1 and level 3 fair value financial assets included in other receivables roll-forward during the six months ended June 30, 2024:

 

   Shares
receivable
   Total 
   USD in thousands 
Balance as of January 1, 2024   510    510 
Transfer to investments in shares   (8)   (8)
Net changes at fair value recognized through profit or loss   (2)   
-
 
Balance as of June 30, 2024   500    502 

 

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.

 

H.The following table presents the financial liabilities that were measured at fair value through profit or loss at level 3:

 

    June 30,
2024
    December 31,
2023
 
    USD in thousands  
Warrants at fair value issued by subsidiaries     2,025       1,897  
Embedded derivatives     284       -  
      2,309       1,897  

 

I.The following table presents the Level 3 financial liabilities roll-forward:

 

    Warrants  
    USD
in thousands
 
Balance as of January 1, 2024     1,897  
Deconsolidation of Jeffs’ Brands upon loss of control     (1,874 )
Viewbix June 2024 Facility Agreement (see note 3E)     2,286  
Balance as of June 30, 2024     2,309  
v3.24.3
Goodwill and Inatangible Assets
6 Months Ended
Jun. 30, 2024
Goodwill and Inatangible Assets [Abstract]  
GOODWILL AND INATANGIBLE ASSETS

NOTE 5 - GOODWILL AND INATANGIBLE ASSETS

 

A. Details of the Company’s Intangible assets:

 

   June 30,   December 31, 
   2024   2023 
   Unaudited   Audited 
   USD in thousands 
         
Technology   7,067    8,042 
Customer relationship   4,178    4,601 
Patent   104    100 
Brand name   
-
    6,043 
Goodwill   6,174    8,550 
Intangible assets, net   17,523    27,336 

 

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 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 deconsolidation and resulted loss of control in Jeffs’ Brands as of January 28, 2024. As a result, the brand name and the goodwill related to Jeffs’ Brands were deconsolidated as of such date.

 

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 1,802 thousand in the consolidated statements of income/loss and other comprehensive income/loss, which was driven mainly due to a decrease in the cash flow projections.
v3.24.3
Equity
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
EQUITY

NOTE 6 - EQUITY

 

a.Share capital:

 

1)Composed as follows:

 

   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   200,000    200,000    28,852    27,989 

 

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 862,298 Ordinary Shares in relation to RSUs grants.

 

  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 1,280,000 options pursuant to the Company’s option plan, to certain employees, consultants and directors.

 

In October 2021, the Company’s board of directors approved the grant of 90,000 options to consultants.

 

The amounts of expenses that were recorded for options to employees and other service providers are USD 14 thousand and USD 143 thousand for the six months ended June 30, 2024 and 2023, respectively.

 

  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 three years commencing on January 1, 2023, with 1/12 of such options vesting at the end of each subsequent three-month period following the grant.

 

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 130 thousand in relation to these RSUs.

v3.24.3
Transactions and Balances with Related Parties
6 Months Ended
Jun. 30, 2024
Transactions and Balances with Related Parties [Abstract]  
TRANSACTIONS AND BALANCES WITH RELATED PARTIES

NOTE 7 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES

 

a.Transactions with related parties:

 

1)Composed as follows:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
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)   
-
 

 

(1) Includes granted options benefit in the aggregated amount of USD 3 thousand and USD 56 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 31 thousand and USD 67 thousand for the six months period ended June 30, 2024, and 2023, respectively.

 

(2) Includes granted options benefit in the aggregated amount of USD 6 thousand and USD 87 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 54 thousand and USD 115 thousand for the six months period ended June 30, 2024, and 2023, respectively.

 

(3) Includes consulting fees to Pure Capital who is a related party of Jeffs’ Brands.

 

(4) Compensation to Cortex’s CTO, a related party of Gix Internet.

 

(5) Includes inventory storage expenses to Pure NJ Logistics LLC who is a related party of Jeffs’ Brands.

 

(6) Includes consulting income and a one-time signing bonus from SciSparc Nutraceuticals who is a related party of Jeffs’ Brands.
   
(7) Includes royalties paid to Pure Capital who is a related party of Jeffs’ Brands.

 

(8) On April 30, 2024, the Company and Jeffs’ Brands signed a consulting agreement according to which, the Company will provide Jeffs’ Brands with business consulting services in exchange of monthly management fees of USD 20 thousand.   

 

(9)

Includes royalties the Company received from Jeffs’ Brands.

 

(10) On August 1, 2024, the Company and Parazero signed a consulting agreement pursuant to which, the Company will provide Parazero with business consulting services in exchange of monthly management fees of USD 10 thousand.   

 

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 4,000,000 in the total aggregate for all loss. The policy was placed for a period of 17 months at a premium of USD 191 thousand (for the period). It includes a deductible of USD 300,000 for each claim, other than securities related claims filed in the United States or Canada, for which the deductible is USD 1,000,000.

 

b. Balances with related parties:

 

(1)Current assets under related parties section:

 

   June 30,   December 31, 
   2024   2023 
   USD in thousands 
         
Other receivables (a related party of Gix Internet)   53    53 
Other receivables (a related party of Eventer)   
-
    6 
    53    59 

 

(2)Current assets under loans to associates section:

 

    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Loan to Zig Miami 54 (note 3F)     1,533       1,545  
Loan to Polyrizon     -       77  
Loan to Revoltz     62       62  
      1,595       1,684  

 

(3)Current assets under loans to others section:

 

    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Loan to Metagramm     268       250  
Loan to Safee     -       126  
      268       376  

 

(4)Current Liabilities:

 

    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Compensation to key management personnel (*)     600       681  
Current liabilities to related parties of Jeffs’ Brands     -       216  
Other accrued expenses to related parties of Gix Internet     4       6  
Other accrued expenses to related parties of Eventer     -       6  
      604       909  
                 
Loans from related parties of Viewbix Ltd. (note 3E)     121       187  
Derivative warrant liability to related parties of Viewbix Inc. (note 3E)     7       -  
Short-term convertible loans from related parties of Viewbix Inc. (note 3E)     44       -  
Embedded derivative to related parties of Viewbix Inc. (note 3E)     134       -  

 

* As of June 30, 2024, these balances include compensation to key management personnel of the Company, Eventer, Gix Internet and Fuel Doctor.
v3.24.3
Revenues
6 Months Ended
Jun. 30, 2024
Revenues [Abstract]  
REVENUES

NOTE 8 - REVENUES

 

  a. Disaggregation of Revenues:

 

The following table present the Group’s revenues disaggregated by revenue type:

 

   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Revenues from commissions (from Eventer)   796    1,498 
Products (from Jeffs’ Brands) *   1,002    3,871 
Management fees (from Xylo Technologies) **   170    
-
 
Revenues from internet services (from Gix Internet)   17,335    48,016 
    19,303    53,385 

 

(*) The revenues from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.

 

(**)  Revenues from consulting services to Jeffs’ Brands and Parazero (see note 7(a)).

 

b.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):

 

    Six months ended
June 30
 
    2024     2023  
    USD in thousands  
Customer A     3,399       7,753  
                 
Customer B     2,312       8,109  
                 
Customer C     2,429       -  
v3.24.3
Segments
6 Months Ended
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:

 

    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     7,469              -       24,628       2,159       3,642       1,394 (*)     39,292  
                                                         
Total segments’ liabilities     (744 )     -       (19,972 )     (1,979 )     (678 )     -       (23,371 )

 

(*) Includes investments accounted for using the equity method of USD 810 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,533 thousand.

 

   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   10,708    13,122    35,178    1,874    3,444(*)   (430)   63,896 
                                    
Total segments’ liabilities   (867)   (4,483)   (25,723)   (2,015)   (605)   2,232    (31,461)

 

(*) Includes investments accounted for using the equity method of USD 498 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,545 thousand.

 

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     170       1,002       17,335       796       -       -       19,303  
                                                         
Segment results - operating loss     (1,409     (567     (3,887     (249     (468 )*      (1,479     (8,059
                                                         
Non-operating income (loss)     -       10       (1,642     -       -       (1,319     (2,951
                                                         
Finance income (loss)     115       (26     (855     (60     -       (94     (920
                                                         
Loss before taxes on income     (1,294     (583     (6,384     (309     (468     (2,892     (11,930
                                                         
Tax benefit (expense) on income     -       25       20       -       -       -       45  
                                                         
Segment results - net loss     (1,294     (558     (6,364     (309     (468     (2,892     (11,885

  

* Includes equity losses of USD 23 thousand in relation to Revoltz and USD 77 thousand in relation to Polyrizon.
   
** The operating results from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.

 

   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   
-
    3,871    48,016    1,498    
-
    
-
    53,385 
                                    
Segment results - operating income (loss)   (6,301)   (2,131)   (46)   140    (1,452)*   
-
    (9,790)
                                    
Non-operating income   157    1,252    
-
    
-
    
-
    
-
    1,409 
                                    
Finance income (loss)   (219)   (193)   (765)   (55)   (7)   261    (978)
                                    
Profit (Loss) before taxes on income   (6,363)   (1,072)   (811)   85    (1,459)   261    (9,359)
                                    
Tax benefit (expense) on income   3    (9)   (340)   
-
    
-
    169    (177)
                                    
Segment results - net profit (loss)   (6,360)   (1,081)   (1,151)   85    (1,459)   430    (9,536)
v3.24.3
Subsequent Events
6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

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 2.5 million. The amount will accrue interest at a rate of 12% per annum and will be paid in shares and warrants.

 

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 15 thousand per month. In the event the pilot will not be approved commencing 6 months of the amendment date, Metagramm will repay the loan including all recruiting interest, in monthly repayments, at the monthly amount of the highest of: (i) USD 10 thousand or (ii) 60%of Metagramm’s monthly profit. Metagramm will commence the monthly payments at the earlier of 6 months commencing the amendment date or commencing the dated of the pilot approval.

 

  4. On July 2, 2024, the Company signed a sales agreement to sell a portion of its stake of 662,980 shares in Polyrizon for total proceeds of approximately USD 340 thousand. As a result, the Company’s holdings in Polyrizon were diluted from 38.31% to 9.75% of the issued and outstanding share capital of Polyrizon.

 

  5. On July 28, 2024, Viewbix Inc. entered into a second credit facility agreement for USD 3 million with certain lenders. The loan amount will accrue interest at a rate of 12% per annum and will be paid in shares and warrants.

 

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 9.99% of its issued and outstanding share capital in exchange for 19.99% of Metagramm’s issued and outstanding share capital. The transactions are expected to close following the Uplist (as defined in note 3E).

 

  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 one (1) new ADS for every 2.666666 old ADSs held. As a result, the number of ordinary shares of the Company represented by each American Depositary Share, or ADS, was changed from fifteen (15) ordinary shares to forty (40) ordinary shares effective as of August 5, 2024.

 

  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, 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.

 

Additionally, SciSparc is eligible to receive royalties, on a country-by-country and product-by-product basis, at a rate of 5%, on aggregate net sales of a product that is based on the Licensed Patent Rights for a period of fifteen years from the date of the first sale of a Licensed Product, on a country-by-country basis, or through the date of expiration of valid claims of any licensed patents with respect to a Licensed Product in such country, if longer.

 

In consideration for purchase of the license, Polyrizon issued to SciSparc 320,000 ordinary shares and additionally committed to issue to Sciparc additional securities in the occurrence of certain events, including the listing of Polyrizon’s shares on a public exchange pursuant to an initial public offering, for a period of two years, such that the value of the aggregate amount of shares and other securities, as applicable, to be issued to Scisparc will equal USD 3 million based on the price at which such securities are to be offered at such initial public offering.

v3.24.3
Accounting Policies, by Policy (Policies)
6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Estimates
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.

Implementation of amendments to existing accounting standards
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.

 

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
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.

v3.24.3
Interest in Other Entities (Tables)
6 Months Ended
Jun. 30, 2024
Interest in Other Entities [Abstract]  
Schedule of General Information General information
   Main place of
the business
   Ownership
rights
held by the
Company %
   Ownership rights
held by non-
controlling
interests %
 
June 30, 2024            
Eventer  Israel    46.21%   53.79%
Fuel Doctor  USA    67%   33%
GERD IP  USA    90%   10%
Gix Internet  Israel    45.75%   54.25%
   Main place of
the business
   Ownership
rights
held by the
Company %
   Ownership rights
held by non-
controlling
interests %
 
December 31, 2023            
Jeffs’ Brands  Israel    34.11%   65.89%
Eventer  Israel    46.21%   53.79%
Fuel Doctor  USA    67%   33%
GERD IP  USA    90%   10%
Gix Internet  Israel    45.75%   54.25%

 

Schedule of Non-Controlling Interests Balance of non-controlling interests:
   June 30,
2024
   December 31,
2023
 
   USD in thousands 
         
Eventer   253    371 
Jeffs’ Brands   
-
    5,628 
Gix Internet   363    2,642 
GERD IP   57    57 
Fuel Doctor   54    161 
    727    8,859 
Schedule of Net Income (Loss) Attributed to Non-Controlling Interests Net income (loss) attributed to non-controlling interests:
   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Eventer   (128)   88 
Jeffs’ Brands   (383)   (661)
Gix Internet   (3,079)   (668)
Fuel Doctor   (128)   (95)
    (3,718)   (1,336)

 

Schedule of Total Investments Accounted for Using the Equity Method This table summarizes the total investments accounted for using the equity method:
   June 30,
2024
   December 31,
2023
 
   USD in thousands 
         
Polyrizon   521    499 
SciSparc Nutraceuticals Inc   
-
    1,940 
A.I Conversation Systems   
-
    76 
Revoltz   83    110 
Zig Miami 54   370    370 
    974    2,995 
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:
   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Odysight.ai   -    655 
Parazero   -    384 
Laminera   -    34 
Polyrizon   77    65 
SciSparc Nutraceuticals Inc.   13    89 
A.I Conversation Systems   74    - 
Revoltz   23    11 
    187    1,238 

 

Schedule of Company’s Rights in Share Capital and Voting Rights This table summarize the Company’s rights in share capital and voting rights:
   Main place
of business
   Company rights in share
capital and voting rights
 
June 30, 2024        
Laminera  Israel    19.70%
Polyrizon  Israel    38.31%
A.I Conversation Systems  Israel    36.08%
Revoltz  Israel    19.90%
Zig Miami 54  USA    60%
December 31, 2023        
Laminera  Israel    19.70%
Polyrizon  Israel    38.76%
SciSparc Nutraceuticals  USA    49%
A.I Conversation Systems  Israel    36.08%
Revoltz  Israel    19.90%
Zig Miami 54  USA    60%
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:
   June 30,
2024
   December 31,
2023
 
   Carrying
amount
   Quoted
fair value
   Carrying
amount
   Quoted
fair value
 
   USD in thousands 
A.I Conversation System   
         -
    331    76    882 

 

v3.24.3
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
   June 30, 2024   December 31, 2023 
   Level 1   Level 3   Total   Level 1   Level 3   Total 
   USD in thousands 
Safe Foods Inc. shares   1    
-
    1    4    
-
    4 
Maris-Tech Ltd. shares   150    
-
    150    107    
-
    107 
Maris-Tech Ltd. warrants   
-
    9    9    
-
    12    12 
Tondo Smart Ltd. shares   91    
-
    91    106    
-
    106 
Safee shares   
-
    400    400    
-
    400    400 
SciSparc shares   3    
-
    3    83    
-
    83 
Polyrizon warrants   
-
    289    289    
-
    105    105 
Jeffs’ Brands warrants   8    78    86    
-
    
-
    
-
 
Jeffs’ Brands shares   125    
-
    125                
Elbit Imaging Ltd. shares   405    
-
    405    468    
-
    468 
Hydreight Technologies Inc. shares   74    
-
    74    104    
-
    104 
Clearmind Medicine Inc. warrants   
-
    1    1    
-
    3    3 
Clearmind Medicine Inc. shares   13    
-
    13    21    
-
    21 
Metagramm shares   
-
    250    250    
-
    250    250 
Colugo Systems Ltd. shares   
-
    400    400    
-
    400    400 
Bubbles Intergroup Ltd. shares   103    
-
    103    98    
-
    98 
Automax Ltd warrants   6    
-
    6    6    
-
    6 
Automax Ltd. shares   175    
-
    175    324    
-
    324 
Elbit Medical Technologies Ltd. shares   7    
-
    7    12    
-
    12 
Parazero shares   1,389    
-
    1,389    1,436    
-
    1,436 
Total   2,550    1,427    3,977    2,769    1,170    3,939 
   June 30, 2024   December 31, 2023 
   Level 1   Level 3   Total   Level 1   Level 3   Total 
   USD in thousands 
Loan to Revoltz   
  -
    62    62    
-
    62    62 
Loan to Polyrizon   
-
    
-
    
-
    
-
    78    78 
Loan to Zig Miami 54 (note 3F)   
-
    1,533    1,533    
-
    1,545    1,545 
Total   
-
    1,595    1,595    
-
    1,685    1,685 

 

   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)   
-
    500    500    10    500    510 
Total   
-
    500    500    10    500    510 
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:
   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   4    106    98    -    104    83    107    6    -    21    468    324    1,436    12    2,769 
Deconsolidation of Jeffs’ Brands   -    -    -    1,393    -    (50)   -    -    42    -    -    -    -    -    1,385 
Net changes at fair value recognized through profit or loss   (3)   (15)   5    (1,268)   (30)   (30)   43    1    (34)   (8)   (63)   (149)   (47)   (5)   (1,603)
Sale of securities   -    -    -    -    -    -    -    (1)   -    -    -    -    -    -    (1)
Balance as of June 30, 2024   1    91    103    125    74    3    150    6    8    13    405    175    1,389    7    2,550 

 

The following table presents the Level 3 financial assets – investments in shares and warrants roll-forward during the six months ended June 30, 2024:
   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   12    105    3    
-
    400    400    250    1,170 
Net changes at fair value recognized through profit or loss   (3)   184    (2)   (39)   
-
    
-
    
-
    140 
Deconsolidation of Jeffs’ Brands upon loss f control   
-
    
-
    
-
    117    
-
    
-
    
-
    117 
Balance as of June 30, 2024   9    289    1    78    400    400    250    1,427 
The following table presents the Level 3 financial assets – loans to associates and others roll-forward during the six months ended June 30, 2024:
   Loan to
Revoltz
   Loan to
Polyrizon
   Loan to
Zig Miami 54
   Total 
   USD in thousands 
Balance as of January 1, 2024   62    78    1,545    1,685 
Net changes at fair value recognized through profit or loss        22    (12)   10 
Loan conversion        (100)        (100)
Balance as of June 30, 2024   62    
-
    1,533    1,595 
The following table presents the level 1 and level 3 fair value financial assets included in other receivables roll-forward during the six months ended June 30, 2024:
   Shares
receivable
   Total 
   USD in thousands 
Balance as of January 1, 2024   510    510 
Transfer to investments in shares   (8)   (8)
Net changes at fair value recognized through profit or loss   (2)   
-
 
Balance as of June 30, 2024   500    502 

 

    Warrants  
    USD
in thousands
 
Balance as of January 1, 2024     1,897  
Deconsolidation of Jeffs’ Brands upon loss of control     (1,874 )
Viewbix June 2024 Facility Agreement (see note 3E)     2,286  
Balance as of June 30, 2024     2,309  
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:
    June 30,
2024
    December 31,
2023
 
    USD in thousands  
Warrants at fair value issued by subsidiaries     2,025       1,897  
Embedded derivatives     284       -  
      2,309       1,897  
v3.24.3
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:
   June 30,   December 31, 
   2024   2023 
   Unaudited   Audited 
   USD in thousands 
         
Technology   7,067    8,042 
Customer relationship   4,178    4,601 
Patent   104    100 
Brand name   
-
    6,043 
Goodwill   6,174    8,550 
Intangible assets, net   17,523    27,336 
v3.24.3
Equity (Tables)
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of Share Capital Composed as follows
   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   200,000    200,000    28,852    27,989 
v3.24.3
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:
   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
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)   
-
 
(1) Includes granted options benefit in the aggregated amount of USD 3 thousand and USD 56 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 31 thousand and USD 67 thousand for the six months period ended June 30, 2024, and 2023, respectively.
(2) Includes granted options benefit in the aggregated amount of USD 6 thousand and USD 87 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 54 thousand and USD 115 thousand for the six months period ended June 30, 2024, and 2023, respectively.
(3) Includes consulting fees to Pure Capital who is a related party of Jeffs’ Brands.
(4) Compensation to Cortex’s CTO, a related party of Gix Internet.
(5) Includes inventory storage expenses to Pure NJ Logistics LLC who is a related party of Jeffs’ Brands.
(6) Includes consulting income and a one-time signing bonus from SciSparc Nutraceuticals who is a related party of Jeffs’ Brands.
   
(7) Includes royalties paid to Pure Capital who is a related party of Jeffs’ Brands.
(8) On April 30, 2024, the Company and Jeffs’ Brands signed a consulting agreement according to which, the Company will provide Jeffs’ Brands with business consulting services in exchange of monthly management fees of USD 20 thousand.   
(9)

Includes royalties the Company received from Jeffs’ Brands.

(10) On August 1, 2024, the Company and Parazero signed a consulting agreement pursuant to which, the Company will provide Parazero with business consulting services in exchange of monthly management fees of USD 10 thousand.   

 

Schedule of Current Assets Under Related Parties Current assets under related parties section:
   June 30,   December 31, 
   2024   2023 
   USD in thousands 
         
Other receivables (a related party of Gix Internet)   53    53 
Other receivables (a related party of Eventer)   
-
    6 
    53    59 
Schedule of Current Assets Under Loans to Associates Current assets under loans to associates section:
    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Loan to Zig Miami 54 (note 3F)     1,533       1,545  
Loan to Polyrizon     -       77  
Loan to Revoltz     62       62  
      1,595       1,684  

 

Schedule of Current Assets Under Loans to Others Current assets under loans to others section:
    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Loan to Metagramm     268       250  
Loan to Safee     -       126  
      268       376  
Schedule of Current Liabilities Current Liabilities:
    June 30,     December 31,  
    2024     2023  
    USD in thousands  
             
Compensation to key management personnel (*)     600       681  
Current liabilities to related parties of Jeffs’ Brands     -       216  
Other accrued expenses to related parties of Gix Internet     4       6  
Other accrued expenses to related parties of Eventer     -       6  
      604       909  
                 
Loans from related parties of Viewbix Ltd. (note 3E)     121       187  
Derivative warrant liability to related parties of Viewbix Inc. (note 3E)     7       -  
Short-term convertible loans from related parties of Viewbix Inc. (note 3E)     44       -  
Embedded derivative to related parties of Viewbix Inc. (note 3E)     134       -  
* As of June 30, 2024, these balances include compensation to key management personnel of the Company, Eventer, Gix Internet and Fuel Doctor.
v3.24.3
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:
   Six months ended
June 30,
 
   2024   2023 
   USD in thousands 
         
Revenues from commissions (from Eventer)   796    1,498 
Products (from Jeffs’ Brands) *   1,002    3,871 
Management fees (from Xylo Technologies) **   170    
-
 
Revenues from internet services (from Gix Internet)   17,335    48,016 
    19,303    53,385 
(*) The revenues from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.
(**)  Revenues from consulting services to Jeffs’ Brands and Parazero (see note 7(a)).
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):
    Six months ended
June 30
 
    2024     2023  
    USD in thousands  
Customer A     3,399       7,753  
                 
Customer B     2,312       8,109  
                 
Customer C     2,429       -  
v3.24.3
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:
    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     7,469              -       24,628       2,159       3,642       1,394 (*)     39,292  
                                                         
Total segments’ liabilities     (744 )     -       (19,972 )     (1,979 )     (678 )     -       (23,371 )
(*) Includes investments accounted for using the equity method of USD 810 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,533 thousand.
   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   10,708    13,122    35,178    1,874    3,444(*)   (430)   63,896 
                                    
Total segments’ liabilities   (867)   (4,483)   (25,723)   (2,015)   (605)   2,232    (31,461)
(*) Includes investments accounted for using the equity method of USD 498 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,545 thousand.

 

    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     170       1,002       17,335       796       -       -       19,303  
                                                         
Segment results - operating loss     (1,409     (567     (3,887     (249     (468 )*      (1,479     (8,059
                                                         
Non-operating income (loss)     -       10       (1,642     -       -       (1,319     (2,951
                                                         
Finance income (loss)     115       (26     (855     (60     -       (94     (920
                                                         
Loss before taxes on income     (1,294     (583     (6,384     (309     (468     (2,892     (11,930
                                                         
Tax benefit (expense) on income     -       25       20       -       -       -       45  
                                                         
Segment results - net loss     (1,294     (558     (6,364     (309     (468     (2,892     (11,885
* Includes equity losses of USD 23 thousand in relation to Revoltz and USD 77 thousand in relation to Polyrizon.
   
** The operating results from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.
   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   
-
    3,871    48,016    1,498    
-
    
-
    53,385 
                                    
Segment results - operating income (loss)   (6,301)   (2,131)   (46)   140    (1,452)*   
-
    (9,790)
                                    
Non-operating income   157    1,252    
-
    
-
    
-
    
-
    1,409 
                                    
Finance income (loss)   (219)   (193)   (765)   (55)   (7)   261    (978)
                                    
Profit (Loss) before taxes on income   (6,363)   (1,072)   (811)   85    (1,459)   261    (9,359)
                                    
Tax benefit (expense) on income   3    (9)   (340)   
-
    
-
    169    (177)
                                    
Segment results - net profit (loss)   (6,360)   (1,081)   (1,151)   85    (1,459)   430    (9,536)
v3.24.3
General (Details) - USD ($)
$ in Thousands
6 Months Ended
Jul. 22, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 28, 2024
Jan. 29, 2024
Jan. 25, 2024
Dec. 31, 2023
General [Line Items]              
Aggregate gross proceeds (in Dollars)           $ 7,275  
Loss of control (in Dollars)   $ 1,318        
Ownership interest percentage 38.31%            
Cash and cash equivalents (in Dollars)   $ 3,700          
Polyrizon Ltd. [Member]              
General [Line Items]              
Ownership interest percentage   38.31%          
Laminera Flow Optimization Ltd [Member]              
General [Line Items]              
Ownership interest percentage   19.70%          
A.I. Conversation Systems Ltd [Member]              
General [Line Items]              
Ownership interest percentage   36.08%          
Metagramm Software Ltd [Member]              
General [Line Items]              
Ownership interest percentage   19.99%          
Zig Miami 54 LLC [Member]              
General [Line Items]              
Ownership interest percentage   60.00%          
GERD IP Inc [Member]              
General [Line Items]              
Shares issued percentage   90.00%          
Shares outstanding percentage   90.00%          
Eventer Technologies Ltd [Member]              
General [Line Items]              
Shares issued percentage   46.21%          
Shares outstanding percentage   46.21%          
Gix Internet Ltd [Member]              
General [Line Items]              
Shares issued percentage   45.75%          
Shares outstanding percentage   45.75%          
Fuel Doctor [Member]              
General [Line Items]              
Shares issued percentage   67.00%          
Shares outstanding percentage   67.00%          
Jeffs’ Brands Ltd. [Member]              
General [Line Items]              
Shares issued percentage       4.52% 13.37%   34.11%
Shares outstanding percentage       4.52% 13.37%   34.11%
Parazero Technologies Ltd. [Member]              
General [Line Items]              
Ownership interest percentage   18.09%          
v3.24.3
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      
v3.24.3
Interest in Other Entities (Details) - Detail 5
₪ / shares in Units, $ / shares in Units, ₪ in Thousands
1 Months Ended 6 Months Ended 12 Months Ended
Aug. 27, 2024
Jul. 03, 2024
$ / shares
shares
Jun. 13, 2024
USD ($)
May 27, 2024
May 12, 2024
shares
Apr. 01, 2024
Dec. 15, 2023
USD ($)
Dec. 06, 2023
USD ($)
Nov. 15, 2023
USD ($)
Sep. 30, 2023
USD ($)
Sep. 05, 2023
USD ($)
shares
Sep. 05, 2023
ILS (₪)
shares
Jul. 02, 2023
shares
Jun. 13, 2023
ILS (₪)
shares
May 17, 2023
USD ($)
Apr. 27, 2023
USD ($)
Apr. 13, 2023
Mar. 28, 2023
shares
Mar. 21, 2023
$ / shares
Mar. 16, 2023
USD ($)
Feb. 16, 2023
USD ($)
shares
Feb. 16, 2023
ILS (₪)
shares
Feb. 12, 2023
USD ($)
Nov. 15, 2022
USD ($)
Oct. 30, 2022
USD ($)
Sep. 21, 2022
USD ($)
Aug. 23, 2022
USD ($)
Aug. 23, 2022
ILS (₪)
Aug. 10, 2022
USD ($)
Jul. 28, 2022
USD ($)
Jun. 30, 2022
USD ($)
$ / shares
Dec. 21, 2021
USD ($)
shares
Dec. 15, 2021
USD ($)
Dec. 07, 2021
USD ($)
$ / shares
shares
Mar. 30, 2021
₪ / shares
shares
Jul. 31, 2020
USD ($)
shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Jun. 30, 2024
ILS (₪)
shares
Jun. 30, 2023
USD ($)
Jun. 30, 2023
ILS (₪)
Dec. 31, 2023
USD ($)
$ / shares
shares
Sep. 11, 2024
USD ($)
Jul. 31, 2024
USD ($)
shares
Jun. 30, 2024
ILS (₪)
shares
Jun. 30, 2023
ILS (₪)
Dec. 31, 2022
USD ($)
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Proceeds amount                             $ 5,700,000         $ 937,000                                                    
Percentage of ordinary shares               58.44%                                                                            
Consideration amount               $ 250,000                                 $ 2,000,000                                          
Discount percentage                                             20.00%   20.00%                       20.00% 20.00%                
Percentage of outstanding share           31.86%                                                                                
Aggregate amount                                             $ 180,000 $ 480,000                           ₪ 1,229                
Aggregate value                                                                         $ 2,348,000             ₪ 8,602    
Invested an initial amount                                                                             $ 473,000         ₪ 1,668    
Purchase shares (in Shares) | shares                                                                     29,944                      
Exercise price per share (in New Shekels per share) | $ / shares                                                                         $ 0.25                  
Grant estimated amount                                                                         $ 473,000 ₪ 1,668                
Expenses                                                                         $ 91,000   $ 25,000              
Outstanding shares, percentage                                                                         45.75% 45.75% 45.75% 45.75%            
Investment agreement description                                                                         the MOU, subject to the negotiation and execution of a definitive agreement, Gix Internet will execute a share exchange transaction with the Robotics Company. the MOU, subject to the negotiation and execution of a definitive agreement, Gix Internet will execute a share exchange transaction with the Robotics Company.                
Voting right percentage                                                                         37.50%             37.50%    
Issued and outstanding percentage                     36.08% 36.08%                                                 45.00% 45.00%                
Agreement Loan Amount     $ 4,989,000                                                   $ 100,000                                  
Transfer amount     600,000                                                                                      
Portion in this loan amount     $ 350,000           $ 200,000                           80,000                                              
Percentage of credit facility     80.00% 80.00%                                                                                    
Renewable credit line                                                   $ 1,500,000                                        
Credit line percentage                                                   70.00%                                        
Credit line                               $ 1,000                                                            
Annual interest rate                                                                         4.08% 4.08%                
Balance amount       $2,000                                                                                    
Credit line withdrawn                                                                         $ 800                  
Loaned amount                                               $ 200,000                                            
Issued of warrants (in Shares) | shares                                                                         480,000 480,000                
Exercisable warrant (in Shares) | shares                                                                         0.5 0.5                
Outstanding debt                                                                         $ 531,000                  
Bear interest rate                                                                         12.00% 12.00%                
Exchange for shares (in Shares) | shares                                                                         0.25 0.25                
Loan amount                                                                         $ 663,000                  
Exercise price (in Dollars per share) | $ / shares                                                                                        
Shares issued (in Shares) | shares                           2,650,423                                             28,851,761       27,989,465     28,851,761    
Warrant to purchase (in Shares) | shares                                                                         2,500,000 2,500,000                
Exercise price per share (in Dollars per share) | $ / shares                                                                         $ 1                  
Aggregate exercise amount                                                                         $ 2,500,000                  
Common stock, price per share (in Dollars per share) | $ / shares   $ 0.25                                                                                        
Warrant to purchase shares (in Shares) | shares   1,541,250                                                                                        
Aggregate gross proceeds                                                                         257                  
Gross proceeds received from the private placement                                                                         $ 237,000                  
Exercise price (in Dollars per share) | $ / shares                                     $ 5.5                                   $ 250                  
Documented fees and expenses incurred                                                                         $ 10,000                  
Cash Fee                                                                         $ 123,000                  
Common stock, shares issued (in Shares) | shares                                                                         51,375             51,375    
Number of private placement warrants (in Shares) | shares                                                                                     1,541,250      
Description of stock incentive 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. 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.                
Number of stock based awards, granted (in Shares) | shares                                                                         51,020             51,020    
Initial capital contribution percentage                                                                         60.00% 60.00%                
Capital transactions, description                                                                         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. 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.                
Description of initial capital contribution percentage                                                                         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 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.                
Issuance of amount                                                                         $ 1,545,000                  
Investment purchase price                                                                         455,000                  
Fair value of loan                                                                         $ 1,533,000       $ 1,545,000          
Percentage of investment, shares issued                                                                         38.31%       38.76%     38.31%    
Percentage of investment, shares outstanding                                                                                 38.76%          
Number of other lenders converted loans (in Shares) | shares         88,216                                                                                  
Sale agreement (in Shares) | shares                         662,980                                                                  
Invest an additional amount                                                                       $ 1,000,000                    
Consideration shares (in Shares) | shares                                                                       3,107,223                    
Equity financing least amount                                                                       $ 500,000                    
Pre-money valuation least                                                                       $ 10,000,000                    
Invested amount                                                                 $ 2,000,000       $ 250,000                  
Price, percentage                                                                 125.00%                          
Option is exercisable term                                                                         3 years 3 years                
Fair value option amount                                                                         $ 289       $ 105,000          
Loan bears interest rate percentage                                                                         4.00% 4.00%                
Financing amount                                             $ 500,000                                              
Fair value of loan                     $ 721,000 ₪ 2,748                                                         78,000          
Number of converted debt shares (in Shares) | shares         88,216                                                                                  
Additional loan debt                                                           $ 340,000                                
Fair value of debt                                                                               62,000          
Consideration option per share (in Dollars per share) | $ / shares                                                                   $ 6.05                        
Additional Amount                                                                   $ 753,000                        
Consideration amount                                                                   $ 771,000                        
Purchase percentage                                                     50.00% 50.00%                                    
Consideration per share (in Dollars per share) | $ / shares                                                             $ 6.05                              
Total consideration amount                                                             $ 817,000 $ 263,000                            
Other receivables                                       937,000                                                    
Dividend in total amount                                       577,000                                                    
Contract assets                                       $ 577,000                                                    
Number of purchase holding shares (in Shares) | shares                                                               90,000,000                            
Share purchased rate                                   76.25%                           35.06%                            
Shares newly issued (in Shares) | shares                                   827,543,253                                                        
Invested additional amount                                                                                 $ 1,176,000          
Paid in purchase agreement to acquire                                                                         250,000                  
Loan agreement                                                                         $ 250,000                  
Percentage of increase in additional shares                                                                         31.25% 31.25%                
Interest percentage                                                                         1.00% 1.00%                
Equal loan amounts                                                                         $ 1,300,000 ₪ 1,750                
Shares purchased (in Shares) | shares                                         118,400 118,400                                                
Purchased amount                                         $ 84,000 ₪ 296                                                
Divided average price (in New Shekels) | ₪                           ₪ 4,750                                                                
Loan was converted (in Shares) | shares                     2,650,423 2,650,423                                                                    
SOFR [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Loan interest rate                                                   3.52%                                        
Forecast [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Percentage of ordinary shares 44.52%                                                                                          
Subsequent Event [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Remaining value of private placement                                                                                     $ 20,000      
Minimum [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Aggregate amount of credit line                                                                         $ 300,000                  
Facility agreement, percentage                                                                         66.89% 66.89%                
Maximum [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Aggregate amount of credit line                                                                         $ 1,833,000                  
Facility agreement, percentage                                                                         71.11% 71.11%                
Eventer [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Percentage of outstanding common stock.                                                                         46.21% 46.21%     46.21%          
Received amount                                                                                           $ 480,000
Impairment loss                                                                         $ 500,000                  
Chief Executive Officer (CEO) [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Invested an initial amount                                                                         0   $ 0         ₪ 0 ₪ 0  
Share based compensation grants [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Exercise price per share (in New Shekels per share) | ₪ / shares                                                                     ₪ 1                      
Viewbix Inc [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Expenses                                                                         $ 12,000                  
Transfer amount                                                                                   $ 2        
Exercise price (in Dollars per share) | $ / shares                                                                         $ 0.25                  
Holding shares (in Shares) | shares                                                                         77,980 77,980     77,980          
Viewbix Inc [Member] | Minimum [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Facility agreement, percentage                                                                         76.00% 76.00%                
Viewbix Inc [Member] | Maximum [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Facility agreement, percentage                                                                         71.11% 71.11%                
Bank Leumi [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Credit line                   $ 2,500                                                                        
Jeffs’ Brands [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Aggregate amount                                                                         $ 350,000                  
June 2024 Facility Term [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Aggregate amount                                                                         150,000                  
Credit line withdrawn                                                                         $ 500,000                  
June 2024 Conversion Warrant [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Exercise price (in Dollars per share) | $ / shares                                                                         $ 250                  
June 2024 Facility Warrants [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Exercise price (in Dollars per share) | $ / shares                                                                         $ 0.25                  
Shares issued (in Shares) | shares                                                                         200,000             200,000    
ViewBix Inc. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Shares issued (in Shares) | shares                                                                                     1,027,500      
Sale of private placement (in Shares) | shares   1,027,500                                                                                        
Zig Investment Group [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Investments amount                                                                         $ 2,000,000                  
Initial capital contribution percentage                                                                         40.00% 40.00%                
Zig Miami 54 [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Aggregate amount             $ 2,250,000                                                                              
Portion in this loan amount             $ 1,350,000                                                                              
Loans receivables from seller of the property                                                                         $ 1,500,000                  
Revoltz Ltd.[Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Consideration ordinary shares (in Shares) | shares                                                                         19,990             19,990    
Invest an additional                                                                         $ 400,000                  
Percentage of issued and outstanding share capital                                                                         37.50%             37.50%    
Charging Robotics [Memeber]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Invested amount                                                           $ 60,000                                
Issued and outstanding share capital, percentage                                                                         19.99% 19.99%                
Buffalo Investments Ltd. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Options to purchase shares                                                                         150,000             150,000    
SciSparc Ltd. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Exercise price (in Dollars per share) | $ / shares                                                                         $ 5.02                  
Options to purchase shares                                                                         150,000             150,000    
Buffalo Agreement [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Consideration amount                                                                         $ 817,000                  
Aggregate value                                                                         $ 937,000                  
Consideration ordinary shares (in Shares) | shares                                                                   150,000                        
Consideration option per share (in Dollars per share) | $ / shares                                                                   $ 0.72                        
Paid transactions                                                                   $ 72,000                        
Purchase agreement of percentage                                                                   85.00%                        
Purchase percentage                                                             90.00%                              
Number of consideration shares (in Shares) | shares                                                                         309,000 309,000                
Holding shares (in Shares) | shares                                                                         36,000 36,000                
Compensation amount                                                                         $ 120,000                  
Polyrizon [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Share purchase rate                                                                         90.00% 90.00%                
Aggregate proceeds amount                                                                                 $ 90,000          
SciSparc [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Holding shares (in Shares) | shares                                                                         84,000 84,000                
Colugo Systems Ltd. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Holding shares (in Shares) | shares                                                                         31,250 31,250                
Fuel Doctor Holdings Inc. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Purchased shares (in Shares) | shares                                                                                 84,000          
Hydreight Technologies Inc. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Holding shares (in Shares) | shares                                                                                 309,000          
Clearmind Medicine Inc. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Holding shares (in Shares) | shares                                                                                 36,000          
Cortex Media Group Ltd. [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Percentage on shares issued                                                                         67.00% 67.00%                
Laminera Flow Optimization Ltd [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Issued and outstanding shares, percentage                                                                         19.70% 19.70%                
Percentage of bearing annual interest                                                         8.00%                                  
Metagramm Software Ltd [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Loan bears interest rate percentage                                                                         6.00% 6.00%                
Purchase agreement of percentage                                 19.90%                                                          
Percentage of issued shares                                                                         19.90%             19.90%    
Percentage of outstanding shares                                                                         19.90%       19.90%     19.90%    
A.I Artificial Intelligence Research and Development Ltd [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Original loan in exchange                                                     $ 1,800,000 ₪ 6,000                                    
A.I Conversation Systems [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Original loan in exchange                                                     $ 914,000 ₪ 3,000                                    
Equal loan amounts | ₪                                                                           ₪ 3,000                
Share based compensation grants [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Invested an initial amount                                                                             25,000         ₪ 91    
Purchase shares (in Shares) | shares                                                                     29,944                      
Grant estimated amount                                                                         $ 0 ₪ 0 $ 0 ₪ 0            
Issued and outstanding shares, percentage                                                                         30.00% 30.00%                
Share based compensation grants [Member] | Chief Executive Officer (CEO) [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Purchase shares (in Shares) | shares                                                                     29,944                      
Exercise price per share (in New Shekels per share) | ₪ / shares                                                                     ₪ 0.001                      
Investors [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Aggregate amount                                                                         $ 335,000                  
Loan Agreement [Member]                                                                                            
Interest in Other Entities (Details) - Detail 5 [Line Items]                                                                                            
Maturity loan description                                                                         The Company concluded that the modified loan terms do not represent a substantial modification in accordance with IFRS 9. The Company concluded that the modified loan terms do not represent a substantial modification in accordance with IFRS 9.                
v3.24.3
Interest in Other Entities (Details) - Schedule of General Information
6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Eventer [Member]    
Interest in Other Entities (Details) - Schedule of General Information [Line Items]    
Main place of the business Israel Israel
Ownership rights held by the Company 46.21% 46.21%
Ownership rights held by non- controlling interests 53.79% 53.79%
Fuel Doctor [Member]    
Interest in Other Entities (Details) - Schedule of General Information [Line Items]    
Main place of the business USA USA
Ownership rights held by the Company 67.00% 67.00%
Ownership rights held by non- controlling interests 33.00% 33.00%
GERD IP [Member]    
Interest in Other Entities (Details) - Schedule of General Information [Line Items]    
Main place of the business USA USA
Ownership rights held by the Company 90.00% 90.00%
Ownership rights held by non- controlling interests 10.00% 10.00%
Gix Internet [Member]    
Interest in Other Entities (Details) - Schedule of General Information [Line Items]    
Main place of the business Israel Israel
Ownership rights held by the Company 45.75% 45.75%
Ownership rights held by non- controlling interests 54.25% 54.25%
Jeffs’ Brands [Member]    
Interest in Other Entities (Details) - Schedule of General Information [Line Items]    
Main place of the business Israel  
Ownership rights held by the Company 34.11%  
Ownership rights held by non- controlling interests 65.89%  
v3.24.3
Interest in Other Entities (Details) - Schedule of Non-Controlling Interests - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Interest in Other Entities (Details) - Schedule of Non-Controlling Interests [Line Items]    
Balance of Non-controlling interest $ 727 $ 8,859
Eventer [Member]    
Interest in Other Entities (Details) - Schedule of Non-Controlling Interests [Line Items]    
Balance of Non-controlling interest 253 371
Jeffs’ Brands [Member]    
Interest in Other Entities (Details) - Schedule of Non-Controlling Interests [Line Items]    
Balance of Non-controlling interest 5,628
Gix Internet [Member]    
Interest in Other Entities (Details) - Schedule of Non-Controlling Interests [Line Items]    
Balance of Non-controlling interest 363 2,642
GERD IP [Member]    
Interest in Other Entities (Details) - Schedule of Non-Controlling Interests [Line Items]    
Balance of Non-controlling interest 57 57
Fuel Doctor [Member]    
Interest in Other Entities (Details) - Schedule of Non-Controlling Interests [Line Items]    
Balance of Non-controlling interest $ 54 $ 161
v3.24.3
Interest in Other Entities (Details) - Schedule of Net Income (Loss) Attributed to Non-Controlling Interests - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Interest in Other Entities (Details) - Schedule of Net Income (Loss) Attributed to Non-Controlling Interests [Line Items]    
Net income (loss) attributed to non-controlling interests $ (3,718) $ (1,336)
Eventer [Member]    
Interest in Other Entities (Details) - Schedule of Net Income (Loss) Attributed to Non-Controlling Interests [Line Items]    
Net income (loss) attributed to non-controlling interests (128) 88
Jeff Brands [Member]    
Interest in Other Entities (Details) - Schedule of Net Income (Loss) Attributed to Non-Controlling Interests [Line Items]    
Net income (loss) attributed to non-controlling interests (383) (661)
Gix Internet [Member]    
Interest in Other Entities (Details) - Schedule of Net Income (Loss) Attributed to Non-Controlling Interests [Line Items]    
Net income (loss) attributed to non-controlling interests (3,079) (668)
Fuel Doctor [Member]    
Interest in Other Entities (Details) - Schedule of Net Income (Loss) Attributed to Non-Controlling Interests [Line Items]    
Net income (loss) attributed to non-controlling interests $ (128) $ (95)
v3.24.3
Interest in Other Entities (Details) - Schedule of Total Investments Accounted for Using the Equity Method - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Interest in Other Entities (Details) - Schedule of Total Investments Accounted for Using the Equity Method [Line Items]    
Total $ 974 $ 2,995
Polyrizon [Member]    
Interest in Other Entities (Details) - Schedule of Total Investments Accounted for Using the Equity Method [Line Items]    
Total 521 499
SciSparc Nutraceuticals Inc [Member]    
Interest in Other Entities (Details) - Schedule of Total Investments Accounted for Using the Equity Method [Line Items]    
Total 1,940
A.I Conversation Systems [Member]    
Interest in Other Entities (Details) - Schedule of Total Investments Accounted for Using the Equity Method [Line Items]    
Total 76
Revoltz [Member]    
Interest in Other Entities (Details) - Schedule of Total Investments Accounted for Using the Equity Method [Line Items]    
Total 83 110
Zig Miami 54 [Member]    
Interest in Other Entities (Details) - Schedule of Total Investments Accounted for Using the Equity Method [Line Items]    
Total $ 370 $ 370
v3.24.3
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments $ 187 $ 1,238
Odysight.ai [Member]    
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments   655
Parazero [Member]    
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments   384
Laminera [Member]    
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments   34
Polyrizon [Member]    
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments 77 65
SciSparc Nutraceuticals Inc. [Member]    
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments 13 89
A.I Conversation Systems [Member]    
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments 74  
Revoltz [Member]    
Interest in Other Entities (Details) - Schedule of Total Share of Loss (Profit) of Investments Accounted for Using the Equity Method [Line Items]    
Total share of loss (profit) of investments $ 23 $ 11
v3.24.3
Interest in Other Entities (Details) - Schedule of Company’s Rights in Share Capital and Voting Rights
6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Laminera [Member]    
Interest in Other Entities (Details) - Schedule of Company’s Rights in Share Capital and Voting Rights [Line Items]    
Main place of the business Israel Israel
Company rights in share capital and voting rights 19.70% 19.70%
Polyrizon [Member]    
Interest in Other Entities (Details) - Schedule of Company’s Rights in Share Capital and Voting Rights [Line Items]    
Main place of the business Israel Israel
Company rights in share capital and voting rights 38.31% 38.76%
A.I Conversation Systems [Member]    
Interest in Other Entities (Details) - Schedule of Company’s Rights in Share Capital and Voting Rights [Line Items]    
Main place of the business Israel Israel
Company rights in share capital and voting rights 36.08% 36.08%
Revoltz [Member]    
Interest in Other Entities (Details) - Schedule of Company’s Rights in Share Capital and Voting Rights [Line Items]    
Main place of the business Israel Israel
Company rights in share capital and voting rights 19.90% 19.90%
Zig Miami 54 [Member]    
Interest in Other Entities (Details) - Schedule of Company’s Rights in Share Capital and Voting Rights [Line Items]    
Main place of the business USA USA
Company rights in share capital and voting rights 60.00% 60.00%
SciSparc Nutraceuticals [Member]    
Interest in Other Entities (Details) - Schedule of Company’s Rights in Share Capital and Voting Rights [Line Items]    
Main place of the business   USA
Company rights in share capital and voting rights   49.00%
v3.24.3
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
v3.24.3
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
v3.24.3
Financial Instruments (Details) - Schedule of Level 1 and Level 3 Fair Value Financial Assets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets $ 3,977 $ 3,939
Loans to consumers [member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1,595 1,685
Other receivables [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 500 510
Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 2,550 2,769
Level 1 [Member] | Loans to consumers [member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Level 1 [Member] | Other receivables [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 10
Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1,427 1,170
Level 3 [Member] | Loans to consumers [member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1,595 1,685
Level 3 [Member] | Other receivables [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 500 500
Safe Foods Inc shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1 4
Safe Foods Inc shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1 4
Safe Foods Inc shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Maris-Tech Ltd shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 150 107
Maris-Tech Ltd shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 150 107
Maris-Tech Ltd shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Maris-Tech Ltd warrants [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 9 12
Maris-Tech Ltd warrants [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Maris-Tech Ltd warrants [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 9 12
Tondo Smart Ltd shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 91 106
Tondo Smart Ltd shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 91 106
Tondo Smart Ltd shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Safee shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 400 400
Safee shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Safee shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 400 400
SciSparc shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 3 83
SciSparc shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 3 83
SciSparc shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Polyrizon warrants [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 289 105
Polyrizon warrants [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Polyrizon warrants [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 289 105
Jeffs’ Brands warrants [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 86
Jeffs’ Brands warrants [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 8
Jeffs’ Brands warrants [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 78
Jeffs’ Brands shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 125  
Jeffs’ Brands shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 125  
Jeffs’ Brands shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets  
Elbit Imaging Ltd shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 405 468
Elbit Imaging Ltd shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 405 468
Elbit Imaging Ltd shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Hydreight Technologies Inc shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 74 104
Hydreight Technologies Inc shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 74 104
Hydreight Technologies Inc shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Clearmind Medicine Inc warrants [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1 3
Clearmind Medicine Inc warrants [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Clearmind Medicine Inc warrants [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1 3
Clearmind Medicine Inc shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 13 21
Clearmind Medicine Inc shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 13 21
Clearmind Medicine Inc shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Metagramm shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 250 250
Metagramm shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Metagramm shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 250 250
Colugo Systems Ltd shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 400 400
Colugo Systems Ltd shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Colugo Systems Ltd shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 400 400
Bubbles Intergroup Ltd shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 103 98
Bubbles Intergroup Ltd shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 103 98
Bubbles Intergroup Ltd shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Automax Ltd warrants [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 6 6
Automax Ltd warrants [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 6 6
Automax Ltd warrants [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Automax Ltd shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 175 324
Automax Ltd shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 175 324
Automax Ltd shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Elbit Medical Technologies Ltd shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 7 12
Elbit Medical Technologies Ltd shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 7 12
Elbit Medical Technologies Ltd shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Parazero shares [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1,389 1,436
Parazero shares [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1,389 1,436
Parazero shares [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Loan to Revoltz [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 62 62
Loan to Revoltz [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Loan to Revoltz [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 62 62
Loan to Polyrizon [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 78
Loan to Polyrizon [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Loan to Polyrizon [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 78
Loan to Zig Miami 54 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1,533 1,545
Loan to Zig Miami 54 [Member] | Level 1 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets
Loan to Zig Miami 54 [Member] | Level 3 [Member] | Investments in shares, warrants and SAFEs [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 1,533 1,545
Shares receivable from the Amendment of the Buffalo Agreement [Member] | Other receivables [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 500 510
Shares receivable from the Amendment of the Buffalo Agreement [Member] | Level 1 [Member] | Other receivables [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets 10
Shares receivable from the Amendment of the Buffalo Agreement [Member] | Level 3 [Member] | Other receivables [Member]    
Schedule of Level 1 and Level 3 Fair Value Financial Assets [Line Items]    
Financial assets $ 500 $ 500
v3.24.3
Financial Instruments (Details) - Schedule of Fair Value of Financial Instruments
$ in Thousands
6 Months Ended
Jun. 30, 2024
USD ($)
Level 1 [Member] | Safe Foods Inc shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance $ 4
Ending Balance 1
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (3)
Sale of securities
Level 1 [Member] | Tondo Smart Ltd shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 106
Ending Balance 91
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (15)
Sale of securities
Level 1 [Member] | Bubbles Intergroup Ltd Shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 98
Ending Balance 103
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss 5
Sale of securities
Level 1 [Member] | Jeffs’ Brands shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance
Ending Balance 125
Deconsolidation of Jeffs’ Brands 1,393
Net changes at fair value recognized through profit or loss (1,268)
Sale of securities
Level 1 [Member] | Hydreight Technologies Inc shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 104
Ending Balance 74
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (30)
Sale of securities
Level 1 [Member] | SciSparc shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 83
Ending Balance 3
Deconsolidation of Jeffs’ Brands (50)
Net changes at fair value recognized through profit or loss (30)
Sale of securities
Level 1 [Member] | Maris-Tech Ltd shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 107
Ending Balance 150
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss 43
Sale of securities
Level 1 [Member] | Automax Ltd warrants [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 6
Ending Balance 6
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss 1
Sale of securities (1)
Level 1 [Member] | Jeffs’ Brands warrants [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance
Ending Balance 8
Deconsolidation of Jeffs’ Brands 42
Net changes at fair value recognized through profit or loss (34)
Sale of securities
Level 1 [Member] | Clearmind Medicine Inc shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 21
Ending Balance 13
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (8)
Sale of securities
Level 1 [Member] | Elbit Imaging Ltd shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 468
Ending Balance 405
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (63)
Sale of securities
Level 1 [Member] | Automax Ltd shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 324
Ending Balance 175
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (149)
Sale of securities
Level 1 [Member] | Parazero shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 1,436
Ending Balance 1,389
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (47)
Sale of securities
Level 1 [Member] | Elbit Medical Technologies Ltd shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 12
Ending Balance 7
Deconsolidation of Jeffs’ Brands
Net changes at fair value recognized through profit or loss (5)
Sale of securities
Level 1 [Member] | Safee shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 2,769
Ending Balance 2,550
Deconsolidation of Jeffs’ Brands 1,385
Net changes at fair value recognized through profit or loss (1,603)
Sale of securities (1)
Level 3 [Member] | Jeffs’ Brands warrants [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance
Ending Balance 78
Net changes at fair value recognized through profit or loss (39)
Deconsolidation of Jeffs’ Brands upon loss of control 117
Level 3 [Member] | Safee shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 1,170
Ending Balance 1,427
Net changes at fair value recognized through profit or loss 140
Deconsolidation of Jeffs’ Brands upon loss of control 117
Level 3 [Member] | Maris- Tech Ltd shares and warrants [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 12
Ending Balance 9
Net changes at fair value recognized through profit or loss (3)
Deconsolidation of Jeffs’ Brands upon loss of control
Level 3 [Member] | Polyrizon warrants [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 105
Ending Balance 289
Net changes at fair value recognized through profit or loss 184
Deconsolidation of Jeffs’ Brands upon loss of control
Level 3 [Member] | Clearmind Medicine Inc warrants [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 3
Ending Balance 1
Net changes at fair value recognized through profit or loss (2)
Deconsolidation of Jeffs’ Brands upon loss of control
Level 3 [Member] | Safee shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 400
Ending Balance 400
Net changes at fair value recognized through profit or loss
Deconsolidation of Jeffs’ Brands upon loss of control
Level 3 [Member] | Colugo Systems Ltd shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 400
Ending Balance 400
Net changes at fair value recognized through profit or loss
Deconsolidation of Jeffs’ Brands upon loss of control
Level 3 [Member] | Metagramm shares [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 250
Ending Balance 250
Net changes at fair value recognized through profit or loss
Deconsolidation of Jeffs’ Brands upon loss of control
Level 3 [Member] | Loan to Revoltz [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 62
Ending Balance 62
Level 3 [Member] | Loan to Polyrizon [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 78
Ending Balance
Net changes at fair value recognized through profit or loss 22
Loan conversion (100)
Level 3 [Member] | Loan to Zig Miami 54 [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 1,545
Ending Balance 1,533
Net changes at fair value recognized through profit or loss (12)
Level 3 [Member] | Total Financial Instrument One [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 1,685
Ending Balance 1,595
Net changes at fair value recognized through profit or loss 10
Loan conversion (100)
Level 3 [Member] | Shares receivable [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 510
Ending Balance 500
Transfer to investments in shares (8)
Net changes at fair value recognized through profit or loss (2)
Level 3 [Member] | Total Financial Instrument Two [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 510
Ending Balance 502
Transfer to investments in shares (8)
Net changes at fair value recognized through profit or loss
Level 3 [Member] | Total Warrant [Member]  
Schedule of Fair Value of Financial Instruments [Line Items]  
Beginning Balance 1,897
Ending Balance 2,309
Deconsolidation of Jeffs’ Brands upon loss of control (1,874)
Viewbix June 2024 Facility Agreement (see note 3E) $ 2,286
v3.24.3
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
v3.24.3
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%
v3.24.3
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
v3.24.3
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    
v3.24.3
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
v3.24.3
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
v3.24.3
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)
[1] Includes granted options benefit in the aggregated amount of USD 3 thousand and USD 56 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 31 thousand and USD 67 thousand for the six months period ended June 30, 2024, and 2023, respectively.
[2] Includes granted options benefit in the aggregated amount of USD 6 thousand and USD 87 thousand for the six months period ended June 30, 2024, and 2023, respectively. Also Includes grant of RSUs in the aggregated amount of USD 54 thousand and USD 115 thousand for the six months period ended June 30, 2024, and 2023, respectively.
[3] Includes consulting fees to Pure Capital who is a related party of Jeffs’ Brands.
[4] Compensation to Cortex’s CTO, a related party of Gix Internet.
[5] Includes inventory storage expenses to Pure NJ Logistics LLC who is a related party of Jeffs’ Brands.
[6] Includes consulting income and a one-time signing bonus from SciSparc Nutraceuticals who is a related party of Jeffs’ Brands.
[7] Includes royalties paid to Pure Capital who is a related party of Jeffs’ Brands.
[8] On April 30, 2024, the Company and Jeffs’ Brands signed a consulting agreement according to which, the Company will provide Jeffs’ Brands with business consulting services in exchange of monthly management fees of USD 20 thousand.
[9] Includes royalties the Company received from Jeffs’ Brands.
[10] On August 1, 2024, the Company and Parazero signed a consulting agreement pursuant to which, the Company will provide Parazero with business consulting services in exchange of monthly management fees of USD 10 thousand.
v3.24.3
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
v3.24.3
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
v3.24.3
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
v3.24.3
Transactions and Balances with Related Parties (Details) - Schedule of Current Liabilities - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Transactions and Balances with Related Parties (Details) - Schedule of Current Liabilities [Line Items]    
Compensation to key management personnel [1] $ 600 $ 681
Current liabilities to related parties of Jeffs’ Brands 216
Current liabilities, total 604 909
Loans from related parties of Viewbix Ltd. (note 3E) 121 187
Derivative warrant liability to related parties of Viewbix Inc. (note 3E) 7
Short-term convertible loans from related parties of Viewbix Inc. (note 3E) 44
Embedded derivative to related parties of Viewbix Inc. (note 3E) 134
Gix internet [Member]    
Transactions and Balances with Related Parties (Details) - Schedule of Current Liabilities [Line Items]    
Other accrued expenses to related parties 4 6
Eventer [Member]    
Transactions and Balances with Related Parties (Details) - Schedule of Current Liabilities [Line Items]    
Other accrued expenses to related parties $ 6
[1] As of June 30, 2024, these balances include compensation to key management personnel of the Company, Eventer, Gix Internet and Fuel Doctor.
v3.24.3
Revenues (Details)
6 Months Ended
Jun. 30, 2024
Revenues [Abstract]  
Total revenues percentage 10.00%
v3.24.3
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
[1] The revenues from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.
[2] Revenues from consulting services to Jeffs’ Brands and Parazero (see note 7(a)).
v3.24.3
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
v3.24.3
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  
v3.24.3
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  
[1] The operating results from Jeffs’ Brands are presented for the period from January 1, 2024 to January 28, 2024.
[2] Includes investments accounted for using the equity method of USD 498 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,545 thousand.
[3] Includes equity losses of USD 23 thousand in relation to Revoltz and USD 77 thousand in relation to Polyrizon
[4] Includes investments accounted for using the equity method of USD 810 thousand and USD 370 thousand in relation to Polyrizon and Zig Miami 54, respectively. In addition, includes loan to Zig Miami 54 in an amount of USD 1,533 thousand.
v3.24.3
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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