Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 104

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 5
Chunk 104
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compared to 16.5% in 2023) and was estimated based on past experience, and an industry average weighted average cost of capital, which was based on a possible range of debt leveraging of 17% (compared to 7% in 2023) at a market interest rate of 10.21% (compared to 9.65% in 2023). The after-tax discount rate is based on the risk-free rate for 15-year debentures issued by the government in the relevant market and adjusted for a risk premium.
 
Terminal value growth rate. A cash flow forecast for five years was included in the discounted cash flow model. The long-term growth rate was 3.5%. The terminal value growth rate is consistent with the assumptions that a market participant would make.
 
Sensitivity to changes in assumptions
 
Discount rate. An increase in the discount rate of 1% will affect the calculation of the unit’s value in use so that it will decrease to NIS 352,232 thousand and the impairment loss will increase in NIS 39 thousand.
 
Terminal value growth rate. A decrease in the terminal value growth rate of 1% will affect the calculation of the unit’s value in use so that it will decrease to NIS 368,352 thousand and the impairment loss will increase in NIS 23 thousand.
 

C.                     Research                 
     and development, patents and licenses, etc.
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See above, under “Item 4.B. Business Overview — Research and Development” and “Item 4.B. Business Overview — Intellectual Property”.
 

D.      Trend    
     Information.
-----------------
 
We are in a development stage with regard to different products. It is not possible for us to predict with any degree of accuracy the outcome of our research, development, or commercialization efforts. As such, it is not possible for us to predict with any degree of accuracy any known trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net sales or revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information to not necessarily be indicative of future operating results or financial condition. However, to the extent possible, certain trends, uncertainties, demands, commitments and events are in this “Operating and Financial Review and Prospects”.
 

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E.          Critical      
     Accounting Estimates.
--------------------------
 
The Company’s critical accounting estimates are summarized in Note 3 of