Exhibit
99.1



A2Z
SMART TECHNOLOGIES CORP.



ANNUAL
INFORMATION FORM



For
Year Ended December 31, 2021



March
31, 2022













Table
of Contents



|                                                           |                                                                                  | Page
|---------------------------------------------------------- | -------------------------------------------------------------------------------- | ----
|                                                           |                                                                                  |     
|CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION | 1                                                                               
|                                                           |                                                                                  |     
|THE COMPANY                                                | 2                                                                               
|                                                           |                                                                                  |     
|                                                           | Name,
    Address and Incorporation                                              | 2   
|                                                           | Corporate
    Structure                                                          | 2   
|                                                           |                                                                                  |     
|GENERAL DEVELOPMENT OF THE BUSINESS                        | 3                                                                               
|                                                           |                                                                                  |     
|                                                           | Business
    of the Corporation                                                  | 3   
|                                                           | Three
    Year History                                                           | 4   
|                                                           |                                                                                  |     
|BUSINESS DESCRIPTION                                       | 8                                                                               
|                                                           |                                                                                  |     
|                                                           | Business
    Overview                                                            | 8   
|                                                           | Cust2Mate
    Retail Automation Solutions                                        | 9   
|                                                           | Maintenance
    Service, Unmanned Ground Vehicles and Energy Storage Power Packs | 10  
|                                                           | Automotive
    Products                                                          | 12  
|                                                           | Isramant                                                                         | 13  
|                                                           | Competition                                                                      | 13  
|                                                           | Research
    and Development                                                     | 14  
|                                                           | Intellectual
    Property                                                        | 14  
|                                                           | Government
    Regulation                                                        | 15  
|                                                           |                                                                                  |     
|RISK FACTORS                                               | 16                                                                              
|                                                           |                                                                                  |     
|                                                           | Risks
    Related to the Company’s Financial Position and Capital Requirements   | 16  
|                                                           | Risks
    Related to the Company and the Company’s Business                      | 18  
|                                                           | Risks
    Related to the Company’s Operations in Israel                          | 29  
|                                                           | Risks
    Related to the Common Shares                                           | 32  
|                                                           |                                                                                  |     
|DIVIDENDS                                                  | 34                                                                              
|                                                           |                                                                                  |     
|DESCRIPTION OF SHARE CAPITAL                               | 34                                                                              
|                                                           |                                                                                  |     
|                                                           | Common
    Shares                                                                | 34  
|                                                           |                                                                                  |     
|MARKET FOR SECURITIES                                      | 35                                                                              
|                                                           |                                                                                  |     
|                                                           | Trading
    Price and Volume                                                     | 35  
|                                                           | Prior
    Sales                                                                  | 36  
|                                                           |                                                                                  |     
|ESCROWED SECURITIES                                        | 36                                                                              
|                                                           |                                                                                  |     
|DIRECTORS AND OFFICERS                                     | 37                                                                              
|                                                           |                                                                                  |     
|                                                           | Committees
    of the Board of Directors                                         | 39  
|                                                           | Common
    Shares Owned by Directors and Executive Officers, as a Group          | 40  
|                                                           | Cease
    Trade Orders, Bankruptcies, Penalties or Sanctions                     | 40  
|                                                           | Conflict
    of Interest                                                         | 41  



-i-









TABLE
OF CONTENTS

(continued)



|                                                           | Page                                    
|---------------------------------------------------------- | ----------------------------------------
|                                                           |                                         
|INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS | 41                                      
|                                                           |                                         
|REGULATORY ACTIONS                                         | 41                                      
|                                                           |                                         
|LEGAL PROCEEDINGS                                          | 42                                      
|                                                           |                                         
|INTERESTS OF EXPERTS                                       | 42                                      
|                                                           |                                         
|TRANSFER AGENT AND REGISTRAR                               | 42                                      
|                                                           |                                         
|MATERIAL CONTRACTS                                         | 42                                      
|                                                           |                                         
|AUDIT COMMITTEE                                            | 42                                      
|                                                           |                                         
|                                                           | Audit
    Committee’s Charter           
|                                                           | Composition
    of Audit Committee      
|                                                           | Relevant
    Education and Experience   
|                                                           | Audit
    Committee Oversight           
|                                                           | Pre-Approval
    Policies and Procedures
|                                                           | Audit
    Fees                          
|                                                           |                                         
|ADDITIONAL INFORMATION                                     | 43                                      
|                                                           |                                         
|EXHIBIT “A” AUDIT COMMITTEE CHARTER                        | 1                                       
|                                                           |                                         
|EXHIBIT “B” CORPORATE GOVERNANCE DISCLOSURE                | 1                                       





-ii-







CAUTIONARY
STATEMENT REGARDING FORWARD LOOKING INFORMATION



Statements
contained in this Annual Information Form (the “AIF”) that are not historical facts are forward-looking statements
that involve risks and uncertainties. Forward-looking statements include, but are not limited to:



| | ● | the
    Company’s (as hereinafter defined) history of losses and needs for additional capital to fund the operations and the Company’s
    inability to obtain additional capital on acceptable terms, or at all;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ● | the
    Company’s ability to continue as a going concern;                                                                                                                                                        
| | ● | risks
    related to the COVID-19 pandemic;                                                                                                                                                                      
| | ● | the
    new and unproven nature of the Company’s products under development;                                                                                                                                     
| | ● | the
    ability to achieve customer adoption of the Company’s products;                                                                                                                                          
| | ● | the
    Company’s dependence on assets the Company purchased from a related party;                                                                                                                               
| | ● | the
    Company’s ability to enhance the brand and increase market awareness;                                                                                                                                    
| | ● | the
    ability to introduce new products and continually enhance the Company’s product offerings;                                                                                                               
| | ● | the
    success of the Company’s strategic relationships with third parties;                                                                                                                                     
| | ● | information
    technology system failures or breaches of the Company’s network security;                                                                                                                        
| | ● | competition
    from competitors;                                                                                                                                                                                
| | ● | the
    reliance on key members of the Company’s management team;                                                                                                                                                
| | ● | future
    litigation; and                                                                                                                                                                                       
| | ● | the
    impact of the political and security situation in Israel on the Company’s business.                                                                                                                      



The
foregoing list sets forth some, but not all of the factors that could affect the Company’s ability to achieve results described
in any forward-looking statements. For additional factors, see section entitled “Risk Factors” in this AIF.



In
certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or
“does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, or variations (including
negative variations) of such words and phrases or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will be taken”, “occur” or “be achieved”.



Forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of management’s
experience and perception of historical trends, current conditions and expected future developments and other factors it believes are
appropriate, including the following: the Company’s ability to generate revenue while controlling costs and expenses; the Company’s
ability to manage growth effectively; the Company’s ability to adapt and develop solutions that keep pace with continuing changes
in technology and customer needs; the ability to patent new technologies and protect intellectual property rights; and business and industry
trends, including the success of current and future product development initiatives.



Although
the Company has attempted to identify important factors that may cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated
or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
statements. These forward-looking statements are made as of the date of this AIF and the Company assumes no obligation to update or revise
them to reflect new events or circumstances, except as may be required by law.



1







All
references in this AIF to “$” or “US$” means to the lawful current of the United States, to “CAD$”
to the lawful currency of Canada and to “NIS” are to lawful currency of Israel.



THE
COMPANY



Name,
Address and Incorporation



The
head office of A2Z Smart Technologies Corp. (“A2Z” or the “Company”) is located at 559 Briar Hill
Avenue, Toronto, Ontario, Canada M5N 1N1. A2Z was incorporated under the Business Corporations Act (British Columbia) (the “BCBCA”).
Under the BCBCA the Company is also required to have a registered and records office in British Columbia. The registered and records
office of the Company is located at 1600 - 609 Granville Street Vancouver, British Columbia, Canada V7Y 1C3.



The
Company’s website address is www.a2zas.com. The information contained on the Company’s website or available through the website
is not incorporated by reference into and should not be considered a part of this AIF, and the reference to the website in this AIF is
an inactive textual reference only.



Unless
otherwise indicated, the disclosure contained in this AIF is current as of March 31,2022.



As
used herein, the term “Company” means individually and collectively, as the context may require, A2Z and its material subsidiaries.



The
common shares of the Company (the “Common Shares”) trade on the TSX Venture Exchange (the “TSXV”)
and the Nasdaq Stock Market LLC (“NASDAQ”) under the symbol “AZ”. The Common Shares are also listed on
the Frankfurt Stock Exchange (the “FSE”) under the symbol “A23”.



2







Corporate
Structure



The
following chart sets out all of the Company’s material subsidiaries as at the date hereof, their jurisdictions of incorporation
and the Company’s direct and indirect voting interest in each of these subsidiaries:







GENERAL
DEVELOPMENT OF THE BUSINESS



Business
of the Corporation



The
Company is an innovative technology company specializing in military technology and recently expanding into the civilian technology markets,
including the application of the Company’s technology for “smart carts”.



The
Company controls Cust2Mate Ltd (“Cust2Mate”), a technology-based company focused on providing retail automation solutions,
in particular for large grocery stores and supermarkets. The Company’s primary product is the Cust2Mate system which incorporates
a “smart cart” enabling shoppers to checkout automatically without having to unload and reload their purchases. There
are two complementary products – one to prevent theft when using traditional shopping carts and another to increase efficiency
when picking products to meet online orders. The product aims at enhancing the supermarket shopping experience, enabling shoppers to
enjoy significant savings in time and reduce their overall purchase costs. The Cust2Mate product is being marketed throughout the world,
with pilot testing programs in North and South America and the Middle East, and a roll out of the product in Israel.



The
Company’s other activities include the provision of services in the field of advanced engineering capabilities to the military/security
markets as well as development of related products for the civilian markets.



The
Company continues the development of products for the automotive market. The main product is a system that enables a customer to insert
a “capsule” into the fuel tank of a vehicle which suppresses combustibility of any remaining gasoline or gasoline
fumes inside the vehicle’s gasoline tank in the event of a collision or exposure to heat and/or flames. This eliminates the possibility
of a fire erupting as a result of a collision or exposure to heat and/or flames.



The
Company also provides maintenance services to both external and in-house complex electronic systems and products.



3







On
February 3, 2022 the Company completed the Isramat Acquisition. The completion of the Isramat Acquisition vertically integrates certain
manufacturing capabilities for the production of A2Z’s Cust2Mate smart cart while complementing existing contract manufacturing
partnerships to support anticipated worldwide growth.



Three
Year History



2019



The
Company was incorporated under the laws of the BCBCA, on January 15, 2018 under the name ECC Ventures 1 Corp. (“ECC1”).
On April 18, 2018, ECC1 completed its initial public offering on the TSXV, under the trading symbol “EONE.P”, by issuing
2,000,000 Common Shares at a price of CAD$0.10 per share for aggregate proceeds of CAD$200,000.



On
September 11, 2019, the Company, its wholly owned subsidiary 1219054 B.C. Ltd (“Acquireco”) and A2Z Advanced Solutions
Ltd (“A2ZAS”), a company incorporated in Israel, entered into an arrangement agreement (or the “Arrangement
Agreement”), pursuant to which ECC1, through a court-approved plan of arrangement: (i) initially acquired 99.46% of the issued
and outstanding ordinary shares of A2ZAS through Acquireco, with the remaining shares of A2ZAS (the “Remaining Shares”)
being acquired following the receipt of regulatory approvals under Section 350 of the Israel Companies Law; (ii) completed a share consolidation
of its Common Shares on a 1.4 to 1 basis; (iii) issued 41,690,578 post-consolidation common shares of ECC1 to the shareholders of A2ZAS;
and (iv) changed its name to “A2Z Technologies Canada Corp.”



On
December 16, 2019, Acquireco announced the completion of a non-brokered private placement of 1,000,000 subscription receipts (each, a
“Subscription Receipt”) at a price of $0.50 per Subscription Receipt for aggregate gross proceeds of $500,000. Upon
the satisfaction of the escrow release conditions, each Subscription Receipt automatically converted into Common Shares for no additional
consideration. The offering of Subscription Receipts was completed in connection with the Company’s Qualifying Transaction with
A2ZAS.



On
December 18, 2019, the transactions contemplated by the Arrangement Agreement (except for the acquisition of the Remaining Shares) were
completed. On the same day, the Common Shares commenced trading on the TSXV under the symbol “AZ”.



A2ZAS
is the parent company of Advanced Military Solutions Ltd. (“A2ZMS”). A2ZMS was incorporated under the laws of the
State of Israel in November 1998 under name Eligal Laboratories Ltd., as an engineering firm providing a cost-efficient solution for
organizations to outsource maintenance of critical and sophisticated equipment. In 1992, Eligal Laboratories Ltd. expanded into the production
of unmanned ground vehicle robotics as a second area of operations. In 2003, Eligal Laboratories Ltd. changed its name to Intelligent
Robotics, Ltd., and in 2017, the name was changed once again to “Advanced Military Solutions Ltd.” During this time period,
all sales were conducted in Israel and were focused on Israeli clientele.



In
February 2019, A2ZAS completed the purchase of 80% of the share capital of AAI Advanced Automotive Innovations Inc. (“AAI”)
by way of the issuance of 7,664,788 ordinary shares of A2ZAS and warrants to purchase 3,832,394 ordinary shares of A2ZAS, exercisable
at a purchase price of $0.23333 per share and with a term ending on December 31, 2021. In connection with the Arrangement Agreement,
the ordinary shares and warrants issued to the sellers of AAI were exchanged for shares and warrants of the Company. AAI holds the rights
to a certain technology, by way of a patent application with the U.S. Department of Commerce, number 62/801,140 titled “Device
and Methodology of Anti Inflammation Capsule, regarding a capsule, “Fuel Tank Inertia Capsule System” (“FTICS”),
that can be inserted into automobile gasoline tanks in order to suppress combustibility of any remaining gasoline or gasoline fumes inside
the gasoline tank in the event of a collision. The FTICS technology remains in development as of the date of this AIF.



4







On
December 30, 2019, A2ZAS entered into a call option agreement (the “Call Option Agreement”) with the Company’s
Chief Executive Officer, Bentsur Joseph, pursuant to which Mr. Joseph granted A2ZAS a 10 year option (the “Call Option”)
to purchase 66,000 ordinary shares of Cust2Mate, constituting 19% of Cust2Mate’s issued and outstanding share capital (on a fully
diluted basis) for an aggregate purchase price of $66,000. On November 5, 2020, A2ZAS and Mr. Joseph entered into a share purchase agreement
pursuant to which A2ZAS exercised the Call Option and acquired an additional 190,549 ordinary shares of Cust2Mate, together constituting
77.51% of the issued and outstanding shares of Cust2Mate (on a fully diluted basis) for an aggregate purchase price of approximately
$1.56 million. The acquisition of Cust2Mate was completed on November 16, 2020 and as a result, Mr. Joseph no longer owns any securities
of Cust2Mate.



2020



On
January 30, 2020, the Company announced the issuance of 833,336 units of the Company (each, a “January Unit”) at a
price of CAD$0.60 per unit for gross proceeds of CAD$500,001.60. Each January Unit consisted of one Common Share and one common share
purchase warrant (each, a “January Warrant”), with each such January Warrant entitling the holder to acquire an additional
Common Share at a price of CAD$0.65 until January 30, 2022. In addition, the Company announced that it has issued 92,493 Common Shares
at a price of $0.726 per share, to Israel Morgenshtern (“Morgenshtern”) as consideration for services rendered by
Morgenshtern to the Company.



On
February 11, 2020, the Company announced that the Israeli Ministry of Defense (“IMOD”) awarded the Company a three-year
contract for CAD$1.5 million that will be paid over the life of the contract. Under the terms of the contract, the IMOD will be leasing
the Company’s products and equipment for which the Company is responsible for maintenance for the duration of the contract.



On
March 4, 2020, the Company announced the Common Shares commenced trading on the FSE under the symbol “A23”.



On
April 2, 2020, the Company announced the resignation of Robert Chisholm as Chief Financial Officer of the Company and the appointment
of Gadi Levin as his replacement.



On
April 29, 2020, the Company announced the issuance of 29,762 Common Shares to Waterside Capital Advisors Inc. (“Waterside”)
and 200,341 Common Shares to Morgenshtern as consideration for services rendered by Waterside and Morgenshtern to the Company pursuant
to the terms of consulting agreements. The Common Shares were issued to Waterside and Morgenshtern at deemed prices of $0.42 and $0.4405
per share, respectively.



On
May 13, 2020, the Company announced the resignation of Scott Ackerman as a director of the Company and the appointment of Alan Rootenberg
as his replacement.



On
July 20, 2020, the Company changed its name to “A2Z Smart Technologies Corp.” to better reflect the Company’s business
plan.



On
August 4, 2020, the Company announced the Common Shares commenced trading on the OTCQX® Venture Market under the symbol “AAZZF”.



5







On
August 12, 2020, the Company announced that its Common Shares were granted DTC eligibility, increasing the ability to U.S. investors
to trade the Common Shares.



On
September 1, 2020, the Company was awarded a new contract for a one year term with the Israeli Defense Forces for service and maintenance
for special logistical advanced technologies at a key and strategic base located in central Israel. Under the terms of the contract,
the Company was granted exclusivity with respect to service as well as the supply of hardware and parts used in services.



On
September 23, 2020, the Common Shares commenced trading on the OTCQX® Best Market under the symbol “AAZZF”.



On
November 16, 2020, the Company announced the issuance of 13,350,460 units (each, a “February Unit”) at a price of
CAD$0.625 per unit for gross proceeds of CAD$8,344,043. Each February Unit consisted of one Common Share and one common share purchase
warrant (each, a “February Unit Warrant”), with each February Unit Warrant entitling the holder thereof to purchase
one additional Common Share at a price of CAD$0.90 at any time prior to November 10, 2025.



On
December 29, 2020, the Company announced the issuance of 4,099,894 units (each, a “December Unit”) at a price of CAD$0.625
per unit for gross proceeds of CAD$2,562,434. Each December Unit is comprised of one Common Share and one common share purchase warrant
(each, a “December Unit Warrant”), with each December Unit Warrant entitling the holder thereof to purchase one additional
Common Share at a price of CAD$0.90 at any time prior to December 24, 2025.



2021



On
February 17, 2021, the Company announced the appointment of Rafael Yam as Chief Executive Officer of Cust2Mate.



On
February 19, 2021, the Company announced the appointment of Yonatan de Jongh to the board of directors of the Company (the “Board”).



On
March 13, 2021, the Company announced that A2ZMS, has received a new contract from the government of the State of Israel. The contract,
valued at up to $1.5 million, is a multi-year (four to five years) service and maintenance contract with the Ministry of Internal Security
- the Israeli Prison Service.



On
April 9, 2021, the Company completed a private placement of units (each, an “April Unit”) for aggregate gross proceeds
of $1,804,170, with each April Unit consisting of one Common Share and one common share purchase warrant (each, an “April Unit
Warrant”). Each April Unit Warrant entitles the holder to acquire one additional Common Share at a price of $3.68 per share
until April 14, 2023.



On
June 3, 2021, the Company completed a private placement of units (each, a “June Unit”) for aggregate gross proceeds
of $8,850,028, with each June Unit consisting of one Common Share and one common share purchase warrant (each, a “June Unit
Warrant”). Each June Unit Warrant entitles the holder to acquire one additional Common Share at a price of $3.68 per share
until May 28, 2023.



On
June 8, 2021, the Company announced the retention of Institutional Marketing Services, Inc. (dba IMS Investor Relations) (“IMS”)
to develop and execute a comprehensive investor relations and financial communications program. IMS was retained for a period of six
months, after which the contract will continue on a month-to-month basis, and will be compensated CAD$8,000.00 per month.



6







On
July 27, 2021, the Company announced a pilot program for its Cust2mate smart carts with one of Mexico’s leading grocery store chains,
operating more than 250 stores. The 60-day pilot program will employ 20 Cust2Mate smart carts at one of the chain’s flagship stores
in Mexico.



On
August 12, 2021, the Company announced it has set August 19, 2021 as the effective date for a consolidation of its Common Shares on the
basis of one (1) post-consolidation Common Share for each three (3) pre-consolidation Common Shares (the “Consolidation”).



On
September 14, 2021, the Company announced that it signed an agreement with Flex Ltd. (Nasdaq: FLEX), a global diversified manufacturer,
for the production of its Cust2Mate smart carts for the retail industry.



On
September 22, 2021, AZ announced that it signed a distribution agreement with IP Retail SRL for the promotion, distribution and service
of the Company’s Cust2Mate Smart Shopping Carts throughout Italy.



On
September 30, 2021, the Company announced that it signed a sales partnership agreement with Tulik Sky Enterprise Ltd to support the Company’s
expansion in North America of its Cust2Mate smart cart.



On
October 7, 2021, the Company announced a pilot program for its Cust2mate smart carts with Morton Williams Supermarkets, a leading upscale
grocery store chain, operating 16 stores in the New York metropolitan area. The 60-day pilot program will employ 50 Cust2Mate smart carts
at two of the chain’s locations.



On
October 14, 2021, the Company announced that it has signed a partnership agreement with Conect Are Us for the sales, distribution and
service of the Company’s Cust2Mate Smart Shopping Carts throughout Spain.



On
October 27, 2021, the Company announced the resignation of Gadi Levin as Chief Financial Officer of the Company. Concurrently, the Company
announced the appointment of Amir Benkel as Mr. Levin’s replacement.



On
December 7, 2021, the Company announced a pilot program for its Cust2mate smart carts with Evergreen Kosher Market, a chain of kosher
supermarkets in New York and New Jersey.



2022



On
January 5, 2022, the Common Shares commenced trading on NASDAQ.



On
January 17, 2022, the Company announced that it entered into a share purchase agreement (the “SPA”) to acquire all
of the issued and outstanding shares of Isramat Ltd (“Isramat”), an Israeli manufacturer of precision metal parts
(the “Isramat Acquisition”). The Isramat Acquisition vertically integrates certain manufacturing capabilities for
the production of the Cust2Mate smart cart while complementing existing contract manufacturing partnerships to support anticipated worldwide
growth. As consideration for the acquisition of Isramat, the Company paid an aggregate acquisition price of NIS 9.3 million (approximately
US$2.989 million) (the “Consideration”). NIS 2.8 million (approximately US$0.9 million) of the Consideration will
be paid in cash and the remaining Consideration in the amount of NIS 6.5 million (approximately US$2.089 million) will be paid through
the issuance to the shareholders of Isramat (the “Isramat Shareholders”) of 273,774 Common Shares (the “Acquisition
Shares”) at a deemed price per Acquisition Share of US$7.6311 (CAD$9.5247) (the “Equity Consideration”).
The SPA also provides that in the event that the aggregate proceeds received by an Isramat Shareholder from the sale of its Acquisition
Shares during the lock-up period (the “Lock-up”), together with the value of its unsold Acquisition Shares as of the
end of such period, is lower than its pro rata portion in the Equity Consideration, A2Z will pay the difference in cash to such Isramat
Shareholder. The Acquisition Shares will be subject to the Lock-up and shall be released as follows: (i) during the first six months
following signing of the SPA (but in any event not prior to four months and one day following the issuance of the Acquisition Shares),
the holders of the Acquisition Shares will not be allowed to sell or otherwise transfer any of the Acquisition Shares, (ii) during each
of the 20 months following the 6-month period detailed above, each Isramat Shareholder will be entitled to sell or otherwise transfer
up to 1/20 of his pro rata portion of the Acquisition Shares, subject to applicable securities laws, and (iii) following the lapse of
26 months following the signing of the SPA, each Isramat Shareholder shall be entitled to freely trade its Acquisition Shares. The Isramat
Acquisition subsequently closed on February 3, 2022.



7







On
February 10, 2022, the Company announced that it launched a pilot program for its Cust2Mate smart carts with Chedraui, the third largest
retailer in Mexico, operating more than 250 stores as well as operating stores in California, Arizona, New Mexico, and Nevada under the
name “El Super”.



On
February 23, 2022, the Company announced that signed a partnership agreement with Cardknox, a Fidelity Payments company and leading developer-friendly
omnichannel payment platform for the integration of its seamless payment solutions to the Cust2Mate smart cart.



On
March 15, 2022, the Company announced the resignation of Amir Benkel as Chief Financial Officer of the Company. Concurrently, the Company
announced the re-appointment of Gadi Levin as Mr. Benkel’s replacement.



Significant
Acquisitions



The
Company did not complete any “significant acquisitions” (as such term is defined under National Instrument 51-102 –
Continuous Disclosure Obligations) during the fiscal year ended December 31, 2021.



BUSINESS
DESCRIPTION



Business
Overview



The
Company is an innovative technology company specializing in military technology and recently expanding into the civilian technology markets,
including the application of the Company’s technology for “smart carts”. The Company has four main business lines:
(i) the development and commercialization of retail automation solutions, in particular for large grocery stores and supermarkets; (ii)
the development of the Company’s FTICS technology for the military and civilian automotive industry; and (iii) the provision of
maintenance services utilizing the application of advanced engineering capabilities to the Israeli military/security markets and governmental
agencies in Israel and the production of unmanned remote-controlled vehicles and energy power packs for the Israeli military; and (iv)
manufacturer of precision metal parts.



Historically,
the Company’s revenues were principally generated from the maintenance services that are provided to the Israeli military/security
market. The Company’s products, which have historically been sold to the Israeli military/security markets, include unmanned remote-controlled
vehicles of various sizes and capabilities designed for intricate bomb disposal, counter terrorism, and firefighting, as well as energy
storage power packs, all of which are fully commercialized for military use.



The
Company is now focusing its attention on its Cust2Mate division and aims to become the leading mobile checkout system in the international
market, providing the optimum solution which simultaneously meets the compelling needs of both shoppers and supermarket retailers.



8







The
Company delivers its traditional services and products with 19 employees as at December 31, 2021. The Company’s Cust2Mate division
has 38 employees and the Company’s recently acquired subsidiary, Isramat, has 44 employees.



In
November 2020, the Company acquired 77.5% of Cust2Mate. The primary product of Cust2Mate is the Cust2Mate system, which incorporates
a “smart cart” enabling shoppers to checkout automatically without having to unload and reload their purchases.



The
Company is seeking to adapt certain of its military grade products and knowhow to the civilian market. The Company is also developing
the FTICS, a patented 3-part system that is designed to suppress combustion of fuel and deploy in the event of a vehicle collision.



Cust2Mate
Retail Automation Solutions



Cust2Mate
aims to become the leading mobile checkout system in the international market, providing the optimum solution which simultaneously meets
the compelling needs of both shoppers and supermarket retailers.



The
primary product of Cust2Mate is the Cust2Mate system, which incorporates a “smart cart” enabling shoppers to checkout automatically
without having to unload and reload their purchases.



Cust2Mate
is a highly innovative end-to-end solution that aims at enhancing the supermarket shopping experience, enabling shoppers to enjoy significant
savings in time and reduce their overall purchase costs. It creates business intelligence as to shoppers’ in-store behavior and
can be used to create personalized experiences for the consumer with the goal of driving revenue, enhancing shopper loyalty to the retailer
and creating a better shopping experience for the consumer, using proprietary data gathering technology leading to adaptive changes in
the traditional shopping marketplace, utilizing safe and secure connectivity services, either on the customer’s intranet or via
a secure cloud based third party solution and a smart agent to help retailers manage their stores at all operating levels and to learn
and predict likely outcomes of sales/coupon and special offers targeted to the individual store or consumer.



The
Company is currently building a manufacturing line and its marketing and sales team to penetrate into other supermarkets and other relevant
retail operations both in Israel and abroad.



The
Cust2Mate system comprises hardware and software:



| | ● | Hardware– Smart Cart, wifi system, Exit Gate.                                                         
| | - | ------------------------------------------------------------------------------------------------------
| |   |                                                                                                       
| | ● | Software– multiple components which are easily integrated with retailer’s existing management systems.



The
key components of the Smart Cart are:



| | ● | Barcode
    Readers – each cart is equipped with a state-of-the-art barcode reader.                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                             
| | ● | Image
    recognition – dedicated technology detects the exact product by accurate recognition of labels, shape and/or other unique
    identification marks on the product.
| |   |                                                                                                                                                                             
| | ● | Mobile
    Point of Sale – utilizing card reader so that payment is made on the cart rather than at the checkout.                                                           



9









| | ● | Advanced
    Highly Accurate Secured Scale – integrated into the base of the cart – providing accurate weight measurement of each
    product placed in the cart, being part of a three-stage verification of barcode, image recognition and weight to ensure that the
    shopper is charged for all products in the cart.                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ● | In-store
    Navigation – enabling the shopper to find the required items in the minimum time and provide analytics to retailer on shopper’s
    location and movement in store.                                                                                                                                                                                                                                                                                                                                                          
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ● | Advanced
    App – facilitates the system functionality including entry/download of the shopping list, shopping history, business intelligence,
    big data, advertising on the tablet and on the shopper’s PC and/or smart phone.                                                                                                                                                                                                                                                                                                       
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ● | Shopping
    Process – products are charged for after legal identification via the combination of components installed on the Smart
    cart and after receiving final confirmation of the whole process by the Cust2Mate central software system.                                                                                                                                                                                                                                                                                        
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ● | Video
    Recording – the complete shopping process inside the cart is video recorded on the tablet and uploaded to the system database
    on a central server.                                                                                                                                                                                                                                                                                                                                                                          
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ● | Smart
    Gate – a system which prevents the exit of shopping carts from the store prior to full payment having been made. It uses
    in-store radio frequency identification to identify either smart carts or regular shopping carts and to check that the shopper has
    paid for the products in the cart. Each shopping cart is tagged. When the shopper approaches the checkout, the system recognizes
    the tag, and the shopper will not be able to open the Smart Gate until the system confirms that the bill has been paid.



In
addition, Cust2mate has also developed two complimentary products: one product to prevent theft when using traditional shopping carts,
and another product aimed at increasing efficiency when picking products to meet online orders.



Maintenance
Service, Unmanned Ground Vehicles and Energy Storage Power Packs



Maintenance
Services



The
Company’s core business is the provision of maintenance services utilizing the application of advanced engineering capabilities
to the Israeli military/security markets and governmental agencies in Israel. The Company’s customers include the Israel Defense
Forces, the Israeli Police, Israel Railways and the Israel Electric Company. Maintenance services provided to these customers include
maintenance of technological systems and electrical and electronic equipment, maintenance of refrigeration systems, and maintenance of
power supplies.



The
Company’s maintenance staff is composed of experienced engineers and support technicians. The Company’s reputation has given
them the ability and opportunity to become a service and maintenance provider. The Company takes pride on providing maintenance and calibration
services to both external and in-house complex systems and products.



Unmanned
Ground Vehicles



Unmanned
Ground Vehicles (“UGV”) are increasingly used in tasks which are hazardous to human health, dangerous, or repetitive
for extended periods of time. In addition to military use, many commercial industries have successfully made use of robotic technology
in well-structured ground environments such as manufacturing and in semi structured environments such as automated agriculture. There
is also extensive use of UGVs in the relatively uncluttered environments of air and sea operations.



10







The
Company’s UGVs have real world applications that save lives and have been sold to various divisions within the Israeli security
community. The unmanned bomb disposal units allow for trained personnel to get an up-close view (with the aid of sensors, cameras and
monitors) of suspected packages to determine if the packages contain explosive devices. If upon examination a package is discerned to
be an explosive device, the bomb disposal UGV has robotic arms that can lift the device and bring it to a safe area where it can be disposed.
Similarly, the firefighting UGVs can access areas dangerous to firefighters and provide remote extinguishing abilities.



UGV
products that the Company has historically sold include the following:



(a)
Fire Fighting Unmanned Robot



The
Company’s firefighting unmanned robot is a double tracked, unmanned and user-friendly robot which is operated from remote locations
and can operate under hazardous conditions including extreme high temperatures and inside unsafe buildings. The robot is equipped with
firefighting capabilities. The weight of the unit is 940 kg. Other dimensions are: length of 162 cm, width of 114 cm and height of 138
cm. Its maximum speed is four km/hr.



(b)
Unmanned Robotic Bulldozer



The
Company’s unmanned robotic bulldozer is a double tracked, unmanned and user-friendly robot which is operated from remote locations
and can operate under a variety of circumstances and can perform a range of accurate engineering tasks including hazardous material handling,
toxic waste removal, disaster relief, logistics support, mining and tunnel operations and other high-risk civilian tasks. The unit has
one-and-a-half tonne lifting capabilities as well as two-and-a-half-tonne push capabilities. The engine is a 57-horsepower output. The
Front Runner weighs 3,800 kg. Other dimensions are: length of 270 mm, width of 300 mm and height of 135 mm.



(c)
Unmanned Bomb Disposal Robot



The
Company’s bomb disposal robot is a small but tough unmanned robot. This model can climb stairs, go under vehicles and roll through
open and enclosed spaces. The product can work for up to two hours before requiring a recharge. The maximum range for operation is 850
feet. Other dimensions are: length of 94 cm, width of 60 cm and height of 30 cm and a weight of 100 kg.



Each
UGV consists of a platform, operator control unit, communications and job specific hardware. The platform includes the motors, drive
train, power source, and structural components. The platform could be a specially designed robot or a standard military or commercial
vehicle. The operator control unit allows the user to control the robot and is made of durable waterproof materials, has its own battery
source, and can operate under difficult and severe environmental conditions. The control unit allows two-way communication with the robot,
that is, it enables the operator to send instructions to the robot, as well as receive information back from the robot such as real-time
video pictures, battery status, traveling speed, and temperature. The communication system provides the clear transmission of data (operator
instructions, video images, etc.) at the robot’s operating range. Most robots use wireless radio frequency communication as the
primary mode of communication, although some robots use a fiber optic cable. The hardware attached to the UGV enable the robot to carry
out its primary mission. Tools may include a manipulator with adequate reach and freedom, camera, disrupter, x-ray detector and various
sensors and weapon systems. The Company designs and produces the operator control unit and the communication devices for the UGVs, inhouse.
When a customer requests a complete UGV, the Company outsources the UGV’s platform, tools and sensors to third party manufacturers.



11







The
Company is in the process of adapting its UGV products for civilian use.



Energy
Smart Power Pack



Generators
provide an ancillary source of power for buildings or individuals to allow systems and appliances which require electricity to continue
operating in the event the user does not have access to conventional power. Generators are used for powering hospitals, homes, farms,
and business areas, as well as to provide power for rural places. Traditionally, generators are the combination of an electrical generator
and an engine to form a single unit of power supply. The generator unit includes a fuel supply, a speed governor, a voltage regulator,
lubrication system, and cooling and exhaust systems. They come in a variety of styles and models. They may run on gas, natural gas, propane,
they even come as a hybrid dual-fuel power. Their sizes range from very small that can supply few hundreds of watts and are portable,
to large turbine plants.



As
technology has improved, energy has been able to be stored in batteries and can be accessed on an as needed basis. As batteries are used,
they drain of energy and must be re-powered. The amount of power that can be stored, the duration of time that power can be stored, the
length of time required to restore energy to 100% capacity has been undergoing radical changes over the last half century.



The
Energy Smart Power Pack is a unique portable smart energy package, originally developed by the Company for the Israel Home Front Command,
that can easily be carried and deployed in the field. The portable energy pack generates 500 watts of power and 33 amperes with a charge
time of three hours. It can be charged via a standard wall outlet or a cigarette port. The unit weighs 10kg and has a casing that has
passed the rigorous testing of the IDF.



Automotive
Products



The
Company is developing a patented 3-part system, known as FTICS, that is designed to suppress combustion of fuel and deploy in the event
of a vehicle collision. The Company also holds a patent to a vehicle cover device that is designed to protect automobiles from the elements
while the vehicle is¬ not in use.



Fuel
Tank Inertia Capsule System



The
Company is currently developing the FTICS (patent pending by the United States Patent and Trademark Office) that is designed to neutralize
the flammability of the contents of a fuel tank. In the form of a system, FTICS enables a customer to insert a “capsule”into the fuel tank that suppresses combustibility of any remaining gasoline or gasoline fumes inside the fuel tank in the event of
a collision. The FTICS is connected to a controller and sensors and lays dormant until sensors detect a collision, at which point the
contents of the capsule are released rendering existing gasoline and fumes non-flammable.



The
majority of the product development work (FTICS - engineering, electronics, electro-mechanics, sensory, programming and algorithms; and
smart car cover – programming, electro-mechanics, power supply, charging, and heating components) is being conducted in-house.
Certain aspects of mechanical and chemical engineering and testing for the FTICS, is completed by external third-party contractors. Componentry
is locally sourced in Israel and readily available.



The
Company is planning to commence testing the FTICS in a pilot program with the Israeli military and plan to use the results of the pilot
to initiate trials with automobile manufacturers.



12







Vehicle
Device Cover



The
Company holds a patent granted by the United States Patent and Trademark Office in 2017 for an automobile cover that is attached to the
vehicle and when deployed the cover extends over the entire body of the automobile to offer easy protection from the elements and prevent
snow from building up. This cover is designed to protect cars from ice, sleet, snow and sun. The Company’s product development
efforts in the automotive market are currently focused on the FTICS.



Isramant



Isramat
is a manufacturer of precision metal parts, and operates a 5,600 square foot manufacturing facility in Holon, Israel. Isramat’s
plant is located in Holon industrial zone and includes more than 50 Swiss-type machines. Isramat combines professional human resources
and advanced technology, thus providing customers with manufacturing expertise in the field of automatic and computer numerical controlled
machining.



Competition



The
Company operates in a competitive environment for most of its service offerings, technology and products. Competition is based on product
and service performance, price, reputation, reliability, life cycle costs, overall value to the customer, responsiveness to customer
requirements and the ability to respond to rapid changes in technology. In addition, the Company’s competitive position sometimes
is affected by specific requirements in particular markets.



The
Company competes in the following markets, based on how the Company categorizes its core products and services:



(a)
Maintenance Services



The
Company competes with a variety of companies that offer maintenance services to the Israeli military/security markets and governmental
agencies in Israel including: the Israel Defense Force; Ministry of Defence; Prime Minister’s Office; Israel Electric Company;
and Israel Railways Ltd.



(b)
UGVs and Energy Source Packs



A
variety of companies around the world currently manufacture UGVs and energy source packs for use in military and law enforcement including
several large, integrated defense contractors such as Foster-Miller Inc, Remotec Inc. (a subsidiary of Northrop Grumman), OAO Robotics,
a division of Manit Group Inc (which was acquired by Lockheed Martin in 2001) and Teledyne FLIR LLC.



(c)
FTICS



The
Company is not aware of any competitors to its FTICS system.



Retail
Automation Solutions



The
Company is aware of a variety of companies providing check-out free systems including: Amazon Go; Trigo; Caper; and Grabango Co.



13







Many
of the Company’s competitors, either alone or through their strategic partners, have substantially greater name recognition and
financial, technical, manufacturing, marketing and human resources than the Company has and significantly greater experience and infrastructure
in the research and development of products, and commercializing those products around the world. As a result, the Company may have difficulty
maintaining its market share, and the Company may be unable to attract customers and partners on terms the Company considers acceptable.



Research
and Development



For
the year ended December 31, 2021, the Company incurred approximately $3,222 of research and development expenses. For the year ended
December 31, 2020, the Company incurred approximately $418,000 of research and development expenses.



Intellectual
Property



General



The
Company’s intellectual property and proprietary technology are important to the development, manufacturing, and sale of its current
and future pipeline products. The Company seeks to protect its intellectual property, core technologies and other know-how through a
combination of patents, trademarks, trade secret laws, non-disclosure and confidentiality agreements and other contractual arrangements
with its employees, consultants, partners, suppliers, customers and others. The Company primarily relies on its own research and development
efforts to enhance and develop its technology and products.



Patents



To
date, the Company has been granted a total of one patent (GB1500007.8 in Great Britain “Vehicle cover device”) and have one
pending national phase applications (International Patent Application PCT/IL2020/051000 “Engine’s anti-combustion method”).



The
Company submits applications under the Patent Cooperation Treaty, or PCT, an international patent law treaty that provides a unified
procedure for filing a single initial patent application to seek patent protection for an invention simultaneously in each of the member
states. Although a PCT application cannot be issued as a patent, it allows for the applicant to seek protection in any of the member
states through national-phase applications. National phase applications are examined by the allocable authorities in each member state
in which the Company elects to file an application. In addition, during the national phase under the PCT, the Company can also elect
to file an application in Europe, in which case the Company will not be required to file a separate state specific application for each
member state in Europe, until such time as the European application is granted a patent, whereupon state specific validations may subsequently
be selected.



Absent
patent-term extensions, several key patents and pending patent applications are nominally set to expire between 2035 and 2040 in Great
Britain and other foreign jurisdictions. The Company cannot be sure that any of its patents will be commercially useful in protecting
its technology. Moreover, while the Company’s policy is to obtain patents by application, license or otherwise, to maintain trade
secrets and to seek to operate without infringing on the intellectual property rights of third parties, technologies related to its business
have been rapidly developing in recent years. Additionally, patent applications that the Company may file or license from third parties
may not result in the issuance of patents, and the issued patents and any issued patents that the Company may receive in the future may
be challenged, invalidated or circumvented. If third parties prepare and file patent applications that also claim technology to which
the Company has rights, the Company may have to partake in proceedings to determine priority of invention, which could result in substantial
costs to the Company, even if the eventual outcome is favorable to the Company..



14







Other



In
addition to patent protection, the Company also relies on trade secrets, including unpatented know-how, technology innovation, technical
specifications and other proprietary information, as well as trade names, trademarks and service marks and non-disclosure and confidentiality
agreements and other contractual arrangements with its employees, consultants, partners, suppliers, customers and others in attempting
to develop and maintain its competitive position.



Government
Regulation



The
Company is subject to a variety of laws and regulations in Israel and abroad that involve matters central to its business, including
the following:



Government
Contracting Regulations



The
Company operates under laws, regulations, administrative rules and other legal requirements governing defense and other government contracts
in Israel. Some of these legal requirements carry major penalty provisions for non-compliance, including disqualification from participating
in future contracts. In addition, the Company’s participation in governmental procurement processes in Israel is subject to specific
regulations governing the conduct of the process of procuring defense and homeland security contracts, including increasing requirements
in the area of cyber production, information assurance and supply chain assurance.



Israeli
Export Regulations



Israel’s
defense export policy regulates the sale of its military products. Current Israeli policy encourages exports to approved customers of
defense systems and military products such as the Company’s, as long as the export is consistent with Israeli government policy.
Subject to certain exemptions, a license is required to initiate marketing activities. The Company also must receive a specific export
license for defense related hardware, software and technology exported from Israel. Israeli law also regulates export of “dual
use” items (items that are typically sold in the commercial market but that also may be used in the defense market).



Approval
of Israeli Defense Acquisitions



The
Israeli Defense Entities Law (Protection of Defense Interests), 5766 - 2006 (the “Israeli Defense Entities Law”) establishes
conditions for the approval of an acquisition or transfer of control of an entity that is determined to be an Israeli “defense
entity” under the terms of the law. Designation as a “defense entity” is to occur through an order to be issued jointly
by the Israeli Prime Minister, Defense Minister and Economy Minister. Although no such order for A2Z has been issued to date, the Company
believes that A2Z’s, Israeli subsidiaries, A2ZAS and A2ZMS will be designated as “defense entities” under such law
because, among other things, and that the Israeli Government will issue such an order regarding its applicable Israeli companies.



Orders
to be issued under the Israeli Defense Entities Law will also establish other conditions and restrictions. It is anticipated that in
the case of a publicly traded company such as A2Z, Israeli government approval will be required for acquisition of 25% or more of the
voting securities or a smaller percentage of shares that grant “means of control.” Means of control for purposes of the law
include the right to control the vote at a shareholders’ meeting or to appoint a director. Orders relating to defense entities
are also anticipated to, among other matters: (i) impose restrictions on the ability of non-Israeli resident citizens to hold “means
of control” or to be able to “substantially influence” defense entities; (ii) require that senior officers of defense
entities have appropriate Israeli security clearances; (iii) require that a defense entity’s headquarters be in Israel; and (iv)
subject a defense entity’s entering into international joint ventures and transferring certain technology to the approval of the
IMOD.



15







Procurement
Regulations



Solicitations
for procurements by governmental purchasing agencies in Israel, are governed by laws, regulations and procedures such as those relating
to procurement integrity, including avoiding conflicts of interest and corruption, and meeting information assurance and cyber-security
requirements.



Anti-Bribery/Corruption
Regulations



Laws
and regulations such as the Israel Penal Code and corresponding legislation in other countries prohibit providing personal benefits or
bribes to government officials in connection with the governmental procurement process.



RISK
FACTORS



The
risks described below are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company
or that the Company currently deems to be immaterial may also materially and adversely affect the business operations. If any of these
risks actually occurs, the business and financial condition could suffer, and the price of the Common Shares could decline.



Risks
Related to the Company’s Financial Position and Capital Requirements



The
Company has incurred significant losses and there can be no assurance when, or if, the Company will achieve or maintain profitability.



The
Company realized a net loss of approximately $39.8 million for the year ended December 31, 2021 and $7.2 million for the year ended December
31, 2020. The Company has an accumulated deficit of $51 million as of December 31, 2021. Because of the numerous risks and uncertainties
associated with the provision of the Company’s maintenance services and sale and development of the Company’s products, the
Company is unable to predict the extent of any future losses or when the Company will become profitable, if at all. Expected future operating
losses will have an adverse effect on the Company’s cash resources, shareholders’ equity and working capital. The Company’s
failure to become and remain profitable could depress the value of the Common Shares and impair the Company’s ability to raise
capital, expand its business, maintain its development efforts, or continue its operations. A decline in the Company’s value could
also cause a holder of Common Shares to lose all or part of such holder’s investment in the Company.



The
Company expects that it will need to raise additional capital to meet the Company’s business requirements in the future, which
is likely to be challenging, could be highly dilutive and may cause the market price of the Common Shares to decline.



Based
on the Company’s projected cash flows and the cash balances as of the date of this AIF, the Company believes that it has sufficient
cash to fund the Company’s obligations for at least the next twelve months. However, in order to meet the Company’s business
objectives in the future, the Company expects that the Company will need to raise additional capital, which may not be available on reasonable
terms or at all.



16







Additional
capital would be used to accomplish the following:



| | ● | finance
    the Company’s current operating expenses;      
| | - | -----------------------------------------------------------
| |   |                                                            
| | ● | pursue
    growth opportunities;                           
| |   |                                                            
| | ● | hire
    and retain qualified management and key employees;
| |   |                                                            
| | ● | respond
    to competitive pressures;                      
| |   |                                                            
| | ● | comply
    with regulatory requirements;                   
| |   |                                                            
| | ● | maintain
    compliance with applicable laws; and          
| |   |                                                            
| | ● | acquire
    complementary businesses and technologies.     



Conditions
in the capital markets are such that traditional sources of capital may not be available to the Company when needed or may be available
only on unfavorable terms. The Company’s ability to raise additional capital, if needed, will depend on conditions in the capital
markets, economic conditions, the impact of the COVID-19 pandemic and a number of other factors, many of which are outside the Company’s
control, and on its financial performance. Accordingly, the Company cannot assure that the Company will be able to successfully raise
additional capital at all or on terms that are acceptable to the Company. If the Company cannot raise additional capital when needed,
it may have a material adverse effect on the Company’s business, results of operations and financial condition.



To
the extent that the Company raise additional capital through the sale of equity or convertible debt securities, the issuance of such
securities could result in substantial dilution for the Company’s current shareholders. The terms of any securities issued by the
Company in future capital transactions may be more favorable to new investors, and may include preferences, superior voting rights and
the issuance of warrants or other derivative securities, which may have a further dilutive effect on the holders of any of the Company’s
securities then-outstanding. The Company may issue additional Common Shares or securities convertible into or exchangeable or exercisable
for the Common Shares in connection with hiring or retaining personnel, option or warrant exercises, future acquisitions or future placements
of the Company’s securities for capital-raising or other business purposes. The issuance of additional securities, whether equity
or debt, by the Company, or the possibility of such issuance, may cause the market price of the Common Shares to decline and existing
shareholders may not agree with the Company’s financing plans or the terms of such financings. In addition, the Company may incur
substantial costs in pursuing future capital financing, including investment banking fees, legal fees, accounting fees, securities law
compliance fees, printing and distribution expenses and other costs. The Company may also be required to recognize non-cash expenses
in connection with certain securities the Company issues, such as convertible notes and warrants, which may adversely impact the Company’s
financial condition. Furthermore, any additional debt or equity financing that the Company may need may not be available on terms favorable
to the Company, or at all. If the Company is unable to obtain such additional financing on a timely basis, the Company may have to curtail
its development activities and growth plans and/or be forced to sell assets, perhaps on unfavorable terms, or the Company may have to
cease its operations, which would have a material adverse effect on the Company’s business, results of operations and financial
condition.



17







Risks
Related to the Company and the Company’s Business



The
Company’s business is subject to risks arising from a widespread outbreak of an illness or any other communicable disease, or any
other public health crisis, such as the COVID-19 pandemic, which has impacted and could continue to impact the business.



In
late 2019, a novel strain of COVID-19, also known as coronavirus, was reported in Wuhan, China. While initially the outbreak was largely
concentrated in China, it has now spread to Israel and the United States, and infections have been reported globally. Many countries
around the world, including in Israel, have significant governmental measures implemented to control the spread of the virus, including
temporary closure of businesses, severe restrictions on travel and the movement of people, and other material limitations on the conduct
of business. The nature of the Company’s work in Israel is such that the Company is considered an essential service industry, and
therefore, is generally able to continue all of its operations in Israel with little disruption. The Company implemented remote working
and work-place protocols for its employees in accordance with Israeli government requirements. Nevertheless, the COVID-19 pandemic has
resulted in delays in receiving service orders from customers which has resulted in a decrease in revenues in recent periods. The extent
to which COVID-19 continues to impact the Company’s operations will depend on future developments, which are highly uncertain and
cannot be predicted with confidence, including the duration and severity of the outbreak, and the actions that may be required to contain
COVID-19 or treat its impact.



The
market for the Company’s retail automation and civilian technology is new and unproven, may experience limited growth.



While
the Company’s maintenance services are currently the main source of revenue, the Company’s strategy for growth is based on
the market penetration of the Company’s retail automation solutions and the adaptation of the Company’s military technology
and knowhow for civilian use, which are relatively new and unproven and are subject to a number of risks and uncertainties. The Company
believes that the Company’s future success will depend in large part on market adoption of the retail automation solutions and
civilian technology. In order to grow the Company’s business, the Company intends to educate the market on the technology, expand
the functionality of the Company’s products and bring new products to market to increase market acceptance and use the technology.
The Company’s ability to develop and expand the market that the Company’s products address depends upon a number of factors,
including the cost savings, performance and perceived value associated with such products. The various markets for the Company’s
products could fail to develop or there could be a reduction in interest or demand for its products as a result of a lack of consumer
acceptance, technological challenges, competing products and services, weakening economic conditions and other causes. The Company may
never successfully commercialize its products and if the products fail to achieve market acceptance, this would have a material adverse
effect on the Company’s business, results of operations and financial condition.



Failure
to effectively develop and expand the Company’s sales and marketing capabilities could harm the ability to grow the business and
achieve broader market acceptance of the Company’s products.



The
Company’s ability to achieve customer adoption of its retail automation solutions and civilian technology will depend, in part,
on the ability to effectively establish, focus and train a sales and marketing force. The Company’s Cust2Mate retail automation
solution only recently entered the commercialization phase while the Company’s military products are still in the process of being
adapted for civilian use. The Company’s ability to achieve significant revenue growth in the future will depend, in part, on the
Company’s ability to recruit, train and retain a sufficient number of experienced sales professionals. In addition, even if the
Company is successful in hiring qualified sales personnel, new hires require significant training and experience before they achieve
full productivity, particularly for sales efforts targeted at new markets. Because the Company only recently started sales efforts for
the retail automation solutions, the Company cannot predict whether, or to what extent, the sales efforts will be successful.



18







The
Company expects the sales cycle to be long and unpredictable and require considerable time and expense before executing a customer agreement,
which may make it difficult to project when, if at all, the Company will obtain new customers and when the Company will generate revenue
from those customers.



As
the Company seeks adoption of its products, the Company expects to incur higher costs and long sales cycles, especially as a result of
the COVID-19 pandemic. In both the retail automation and civilian technology market, the decision to adopt the Company’s products
may require the approval of multiple technical and business decision makers, including security, compliance, procurement, operations
and information technology. In addition, the Company expects that while a customer may be willing to deploy the Company’s products
on a limited basis, before they will commit to deploying the products at scale, they will require extensive education about the Company’s
products and significant customer support time, engage in protracted pricing negotiations and seek to secure readily available development
resources. As a result, it is difficult to predict when the Company will obtain new customers and begin generating revenue from these
customers. As part of the sales cycle, the Company may incur significant expenses before executing a definitive agreement with a prospective
customer and before the Company is able to generate any revenue from such agreement. The Company has no assurance that the substantial
time and money spent on the sales efforts will generate significant revenue. If conditions in the marketplace generally or with a specific
prospective customer change negatively, it is possible that no definitive agreement will be executed, and the Company will be unable
to recover any of these expenses. If the Company is not successful in targeting, supporting and streamlining the sales processes and
if revenue expected to be generated from a prospective customer is not realized in the time period expected or not realized at all, the
Company’s ability to grow its business, and its operating results and financial condition may be adversely affected. If the sales
cycles lengthen, the Company’s future revenue could be lower than expected, which would have an adverse impact on the operating
results and could cause the Company’s share price to decline.



If
the Company is not able to enhance the brand and increase market awareness of the Company and products, then the business, results of
operations and financial condition may be adversely affected.



The
Company believes that enhancing the “A2Z” and “Cust2Mate” brand identity and increasing market awareness of the
Company and products is critical to achieving widespread acceptance of the Company’s products. The Company’s ability to penetrate
its target markets may be adversely affected by a lack of awareness or acceptance of the brand. To the extent that the Company is unable
to foster name recognition and affinity for the brand, the growth may be significantly delayed or impaired. The successful promotion
of the Company’s brand will depend largely on the marketing efforts, market adoption of the products, and the ability to successfully
differentiate the Company’s products from competing products and services. The Company’s brand promotion may not be successful
or result in revenue generation. Any incident that erodes consumer affinity for the brand could significantly reduce the brand value
and damage the Company’s business. If consumers perceive or experience a reduction in quality, or in any way believe the Company
may fail to deliver a consistently positive experience, the brand value could suffer, and the business may be adversely affected.



If
the Company does not develop enhancements to the technology and introduce new products that achieve market acceptance, the business,
results of operations and financial condition could be adversely affected.



The
Company’s ability to attract new customers depends in part on the ability to enhance and improve the existing technology, increase
adoption and usage of the solutions and introduce new products. The success of any enhancements or new products depends on several factors,
including timely completion, adequate quality testing, actual performance quality, and overall market acceptance. Enhancements and new
products that the Company develops may not be introduced in a timely or cost-effective manner, may contain errors or defects, may have
interoperability difficulties with other products or may not achieve the broad market acceptance necessary to generate significant revenue.
Furthermore, the ability to increase the usage of the Company’s solutions and technology depends, in part, on the development of
new use cases and may be outside of the Company’s control. If the Company is unable to successfully enhance the existing solutions
and technology to meet evolving customer requirements, increase adoption and usage, develop new products, then the business, results
of operations and financial condition would be adversely affected.



19







The
technology markets in which the Company competes are both subject to rapid technological change and, to compete, the Company must continually
enhance its products and services.



The
Company must continue to enhance and improve the performance, functionality and reliability of its technology. The technology markets
in which the Company competes are characterized by rapid technological change, changes in user requirements and preferences, frequent
new product and services introductions embodying new technologies and the emergence of new industry standards and practices that could
render its products obsolete. The Company’s success will depend, in part, on the ability to both internally develop and enhance
existing technology, develop new products that address the increasingly sophisticated and varied needs of the Company’s customers,
and respond to technological advances and emerging industry standards and practices on a cost-effective and timely basis. The development
of the Company’s technology involves significant technical and business risks. The Company may fail to use new technologies effectively
or to adapt its proprietary technology and systems to customer requirements or emerging industry standards. If the Company is unable
to adapt to changing market conditions, customer requirements or emerging industry standards, the Company may not be able to increase
its revenue and expand its business.



The
Company depends on a relatively small number of customers for the maintenance services, the main source of the Company’s current
revenues; the loss of one or more of whom may have a material adverse effect on the Company’s operating results.



Currently,
a relatively small number of customers are responsible for a significant portion of the Company’s revenues. During the years ended
December 31, 2021 and December 31, 2020, the Company’s four largest customers constituted 92% and 71% of the total revenues, respectively,
with the Company’s largest customer constituting 39% and 61% of the total revenues, respectively. The percentage of the Company’s
sales to the Company’s major customers may fluctuate from period to period, and the Company’s principal customers may also
vary from year to year. Significant reduction in sales to any of the major customers, or the loss of a major customer, could have a material
adverse effect on the results of operations and financial condition.



The
Company’s growth depends, in part, on the success of the strategic relationships with third parties.



To
grow the business, the Company anticipates that the Company will continue to depend on relationships with third parties, such as the
Company’s customers, suppliers and software providers. Identifying partners, and negotiating and documenting relationships with
them, requires significant time and resources. If the Company is unsuccessful in establishing or maintaining its relationships with third
parties, the Company’s ability to compete in the marketplace or to grow the Company’s revenue could be impaired, and the
results of operations may suffer. Even if the Company is successful, the Company cannot assure you that these relationships will result
in increased customer usage of the products or increased revenue.



20







The
Company’s future profitability depends, in part, on subcontractor and supplier performance and financial viability as well as component
availability and pricing.



The
Company relies on other companies to provide components and subsystems for its technology and to produce hardware elements and sub-assemblies,
provide software and intellectual property, provide information about the parts they supply to the Company, and to do so in compliance
with all applicable laws, regulations and contract terms. Disruptions or performance problems caused by the Company’s subcontractors
and suppliers, or a misalignment between the Company’s contractual obligations and the agreement with its subcontractors and suppliers,
could have various impacts on the Company, including on the ability to meet the Company’s commitments to customers.



The
Company’s ability to perform its obligations on time could be adversely affected if one or more of the Company’s subcontractors
or suppliers were unable to provide the agreed-upon products, materials or information, or perform the agreed-upon services in a timely,
compliant and cost-effective manner or otherwise to meet the requirements of the contract. Changes in political or economic conditions,
including changes in defense budgets or credit availability or sanctions, or other changes impacting a subcontractor or supplier (including
changes in ownership or operations), as well as their ability to retain talent and other resources, and requirements or changes in requirements
imposed on them by other customers, could adversely affect the financial stability of the Company’s subcontractors and suppliers
and/or their ability to perform. The inability of the Company’s suppliers to perform, or their inability to perform adequately,
could also result in the need for the Company to transition to alternate suppliers, which could result in significant incremental cost
and delay or the need for the Company to provide other resources to support its existing suppliers. This risk may increase as the demands
grow for the Company’s subcontractors and suppliers to meet extensive government-related cyber and other requirements.



If
the Company’s subcontractors or suppliers fail to perform or the Company is unable to procure, or experience significant delays
in deliveries of, needed products, materials or services; or if they do not comply with all applicable laws, regulations, requirements
and contract terms, including if what the Company received is counterfeit or otherwise improper, the Company’s financial position,
results of operations and/or cash flows could be materially adversely affected.



Revenues
from the Company’s military products are subject to cyclical variations in the military market and changes in government spending.



The
Company has historically derived its revenues for the military products directly or indirectly from government agencies, mainly the IMOD,
and other governmental authorities in Israel, pursuant to contracts awarded to the Company under defense and homeland security-related
programs. The funding of these programs varies from year to year and are influenced by a variety of factors, including the level of government
spending, particularly in the local market in Israel, major replacement programs, the construction, the quality and cost of alternative
products and other political events and macro-economic conditions that are beyond the Company’s control. In recent years, IMOD
budgets have not been dedicated to purchasing military products from the Company due in part to changes in regulations that require the
IMOD to make purchases for equivalent products from suppliers in the United States. To the extent that the Company is awarded contracts
for the sale of its military products in the future, if future government spending is subsequently curtailed or withdrawn altogether
as a result of changes in political, economic, fiscal or other conditions beyond the Company’s control, such contracts may be delayed
or cancelled, which may have a material adverse effect on the Company’s financial position, results of operations and/or cash flows.



Information
technology system failures or breaches of the Company’s network security could interrupt the operations and adversely affect the
business.



The
Company’s operations depend upon the ability to protect the Company’s computer equipment and systems against damage from
physical theft, fire, power loss, telecommunications failure or other catastrophic events, as well as from internal and external security
breaches, viruses, worms and other disruptive problems. Any damage or failure of the computer systems or network infrastructure that
causes an interruption in the operations could have a material adverse effect on the business and subject the Company to litigation or
actions by regulatory authorities. Although the Company employs both internal resources and external consultants to conduct auditing
and testing for weaknesses in the systems, controls, firewalls and encryption and intend to maintain and upgrade the Company’s
security technology and operational procedures to prevent such damage, breaches or other disruptive problems, there can be no assurance
that these security measures will be successful.



21







Real
or perceived errors, failures, or bugs in the technology could adversely affect the Company’s operating results and growth prospects.



The
Company has discovered and expects that the Company will continue to discover errors, failures and bugs in its technology and anticipate
that certain of these errors, failures and bugs will only be discovered and remediated after deployment. Real or perceived errors, failures
or bugs in the platform could result in negative publicity, government inquiries, loss of or delay in market acceptance of the Company’s
technology, loss of competitive position, or claims by customers for losses sustained by them. In such an event, the Company may be required,
or may choose, for customer relations or other reasons, to expend additional resources in order to help correct the problem.



The
Company could be harmed by improper disclosure or loss of sensitive or confidential Company, employee, or customer data, including personal
data.



In
connection with the operation of the business, the Company stores, processes and transmits data, including personal and payment information,
about the Company’s employees and customers, a portion of which is confidential and/or personally sensitive. Unauthorized disclosure
or loss of sensitive or confidential data may occur through a variety of methods. These include, but are not limited to, systems failure,
employee negligence, fraud or misappropriation, or unauthorized access to or through the information systems, whether by the Company’s
employees or third parties, including a cyberattack by computer programmers, hackers, members of organized crime and/or state-sponsored
organizations, who may develop and deploy viruses, worms or other malicious software programs. Such disclosure, loss or breach could
harm the Company’s reputation and subject the Company to government sanctions and liability under the contracts and laws that protect
sensitive or personal data and confidential information, resulting in increased costs or loss of revenues. It is possible that security
controls over sensitive or confidential data and other practices the Company and its third-party vendors follow may not prevent the improper
access to, disclosure of, or loss of such information. The potential risk of security breaches and cyberattacks may increase as the Company
introduces new products and offerings. Further, data privacy is subject to frequently changing rules and regulations, which sometimes
conflict among the various jurisdictions in which the Company provides services. Any failure or perceived failure to successfully manage
the collection, use, disclosure, or security of personal information or other privacy related matters, or any failure to comply with
changing regulatory requirements in this area, could result in legal liability or impairment to the Company’s reputation in the
marketplace.



A
material breach in security relating to the Company’s information systems and regulation related to such breaches could adversely
affect the Company.



Information
security risks have generally increased in recent years, in part because of the proliferation of new technologies and the use of the
Internet, and the increased sophistication and activity of organized crime, hackers, terrorists, activists, cybercriminals and other
external parties, some of which may be linked to terrorist organizations or hostile foreign governments. Cybersecurity attacks are becoming
more sophisticated and include malicious software, ransomware, attempts to gain unauthorized access to data and other electronic security
breaches that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise protected information
and corruption of data, substantially damaging the Company’s reputation. Any person who circumvents the security measures could
steal proprietary or confidential customer information or cause interruptions in the Company’s operations. The Company incurs significant
costs to protect against security breaches and may incur significant additional costs to alleviate problems caused by any breaches. The
Company’s failure to prevent security breaches, or well-publicized security breaches affecting the Internet in general, could significantly
harm the Company’s reputation and business and financial results.



22







The
Company’s contracts may contain performance obligations that require innovative design capabilities, are technologically complex,
require state-of-the-art manufacturing expertise or are dependent upon factors not wholly within the Company’s control. Failure
to meet the contractual obligations could adversely affect the Company’s profitability, reputation and future prospects.



The
Company designs and develops advanced and innovative products and services, which are applied by the customers in a variety of environments,
including some under highly demanding operating conditions. Problems and delays in development or delivery, or system failures, as a
result of issues with respect to design, technology, intellectual property rights, labor, inability to achieve learning curve assumptions,
inability to manage effectively a broad array of programs, manufacturing materials or components, or subcontractor performance could
prevent the Company from meeting requirements and create significant risk and liabilities. Similarly, failures to perform on schedule
or otherwise to fulfill the contractual obligations could negatively impact the Company’s financial position, reputation and ability
to win future business. If the Company is unable to meet its obligations, including due to issues regarding the design, development or
manufacture of the products or services, it could have a material adverse effect on the Company’s reputation, the ability to compete
for other contracts and the financial position, results of operations and/or cash flows.



The
Company’s insurance coverage, customer indemnifications or other liability protections may be unavailable or inadequate to cover
all of the significant risks or the insurers may deny coverage of or be unable to pay for material losses the Company incurs, which could
adversely affect the Company’s profitability and overall financial position.



The
Company endeavors to obtain insurance agreements from financially solid, responsible, highly rated counterparties in established markets
to cover significant risks and liabilities. Not every risk or liability can be insured, and for risks that are insurable, the policy
limits and terms of coverage reasonably obtainable in the market may not be sufficient to cover all actual losses or liabilities incurred.
Even if insurance coverage is available, the Company may not be able to obtain it at a price or on terms acceptable to the Company. Disputes
with insurance carriers, including over policy terms, reservation of rights, the applicability of coverage (including exclusions), compliance
with provisions (including notice) and/or the insolvency of one or more of the insurers may significantly affect the availability or
timing of recovery, and may impact the Company’s ability to obtain insurance coverage at reasonable rates in the future.



In
some circumstances the Company may be entitled to certain legal protections or indemnifications from its customers through contractual
provisions, laws, regulations or otherwise. However, these protections are not always available, can be difficult to obtain, are typically
subject to certain terms or limitations, including the availability of funds, and may not be sufficient to cover all losses or liabilities
incurred. If insurance coverage, customer indemnifications and/or other legal protections are not available or are not sufficient to
cover the risks or losses, it could have a material adverse effect on the Company’s financial position, results of operations and/or
cash flows.



23







The
Company develops products and services related to hazardous and high-risk operations, which subjects the Company to various environmental,
regulatory, financial, reputational and other risks.



The
Company’s military line of products are used in hazardous and high-risk operations and may involve explosive and flammable materials.
These activities subject the Company to various risks, including risk of personal injury and property damage. The Company may be subject
to reputational harm and potential liabilities whether or not the cause was within the Company’s control. In addition, the Company’s
customers may otherwise use the products and services in connection with hazardous activities, or in ways that can be unusually hazardous
or risky, creating potential liabilities to the customers and/or the Company as the provider of such products and services. In the event
of an incident, if the Company’s customers fail to use the products properly or if the products or services do not operate as intended,
the Company could be subject to reputational harm and potential liabilities.



The
Company may not be able to adequately protect its intellectual property, which, in turn, could harm the value of the brands and adversely
affect the business.



Patent
applications in prosecuting have no guarantee that they will be granted, or if granted that the scope of protection will be adequate.
A Freedom to Operate search has not been performed and there is no guarantee that the company is not infringing other patents. The Company’s
ability to implement the business plan successfully depends in part on the ability to build brand recognition using the Company’s
trademarks, service marks and other proprietary intellectual property, including the Company’s names and logos. The Company currently
has no registered trademarks. While the Company plans to register a number of its trademarks; however, no assurance can be given that
the Company’s trademark applications will be approved. No assurance can be given that the Company’s patent applications which
are in process will be approved. If the Company’s patent applications are not approved, the ability to expand or develop the business
may be negatively affected.



Third
parties may also oppose the Company’s trademark or patent applications, or otherwise challenge the use of the trademarks or patents.
In the event that the trademarks or patents are successfully challenged, the Company could be forced to rebrand its goods and services
or redesign its technology, which could result in loss of brand recognition, and could require the Company to devote resources to advertising
and marketing new brands and products.



If
the Company’s efforts to register, maintain and protect its intellectual property are inadequate, or if any third party misappropriates,
dilutes or infringes on the intellectual property, the value of the Company’s brands may be harmed, which could have a material
adverse effect on the business and might prevent the Company’s brands from achieving or maintaining market acceptance. The Company
may also face the risk of claims that the Company have infringed third parties’ intellectual property rights. If third parties
claim that the Company infringes upon their intellectual property rights, the Company’s operating profits could be adversely affected.
Any claims of intellectual property infringement, even those without merit, could be expensive and time consuming to defend, require
the Company to rebrand its services, if feasible, divert management’s attention and resources or require the Company to enter into
royalty or licensing agreements in order to obtain the right to use a third party’s intellectual property.



Any
royalty or licensing agreements, if required, may not be available to the Company on acceptable terms or at all. A successful claim of
infringement against the Company could result in the Company being required to pay significant damages, enter into costly license or
royalty agreements, or stop the sale of certain products or services, any of which could have a negative impact on the operating profits
and harm the Company’s future prospects.



24







The
Company also relies significantly upon proprietary technology, information, processes and know-how. The Company typically seeks to protect
this information, including by entering into confidentiality agreements with its employees and other parties such as consultants, teammates
and subcontractors. These agreements and other measures may not provide adequate protection for the Company’s trade secrets and
other proprietary information. In the event of an infringement of such intellectual property rights, a breach of a confidentiality agreement,
a misuse or theft of the Company’s intellectual property or divulgence of proprietary information, the Company may not have adequate
legal remedies. In addition, the Company’s trade secrets, or other proprietary information may otherwise become known or be independently
developed by competitors.



If
the Company is unable to adequately exploit its intellectual property rights, to protect its intellectual property rights, or to obtain
rights to intellectual property of others, it could have a material adverse effect on the Company’s reputation, ability to compete
for and perform on contracts, financial position, results of operations and/or cash flows.



The
Company may face intense competition and expect competition to increase in the future, which could prohibit the Company from developing
a customer base and generating revenue.



The
Company faces significant competition in every aspect of the business. Many companies that the Company competes with may already have
an established market in the industries in which the Company competes and most of these companies have significantly greater financial
and other resources than the Company and have been developing their products and services longer than the Company has been developing
theirs. In addition, some of the Company’s larger competitors have substantially broader product offerings and leverage their relationships
based on other products or incorporate functionality into existing products to gain business in a manner that discourages potential customers
from purchasing the Company’s products. Potential customers may also prefer to purchase from their existing solution providers
rather than a new solution provider regardless of product performance or features. These larger competitors often have broader product
lines and market focus and will therefore not be as susceptible to downturns in a particular market. Conditions in the Company’s
market could change rapidly and significantly as a result of technological advancements, partnering by the Company’s competitors
or continuing market consolidation. New start-up companies that innovate and large competitors that are making significant investments
in research and development may invent similar or superior products and technologies that compete with the Company’s products.
In addition, some of the Company’s competitors may enter into new alliances with each other or may establish or strengthen cooperative
relationships. Any such consolidation, acquisition, alliance or cooperative relationship could lead to pricing pressure and the loss
of any future market share and could result in a competitor with greater financial, technical, marketing, service and other resources,
all of which could harm the Company’s ability to compete. Furthermore, organizations may be more willing to incrementally add solutions
to their existing infrastructure from competitors than to replace their existing infrastructure with the Company’s products. Any
failure to meet and address these factors could harm the Company’s business, results of operations and financial condition.



The
Company’s business operations and future development could be significantly disrupted if the Company loses key members of its management
team.



The
success of the business continues to depend to a significant degree upon the continued contributions of the Company’s senior officers
and key employees, both individually and as a group. The Company’s future performance will be substantially dependent in particular
on the ability to retain and motivate Bentsur Joseph, the Chief Executive Officer, senior officers or other key employees could have
a material adverse effect on the business and plans for future development. The Company has no reason to believe that the Company will
lose the services of any of these individuals in the foreseeable future; however, the Company currently has no effective replacement
for any of these individuals due to their experience, reputation in the industry and special role in the Company’s operations.
The Company also does not maintain any key man life insurance policies for any of its employees.



25







The
Company’s ability to meet the needs of its customers depends, in part, on the Company’s ability to maintain a qualified workforce.



The
Company’s operating results and growth opportunities are heavily dependent upon the ability to attract and retain sufficient personnel
with security clearances and requisite skills in multiple areas, including science, technology, engineering and math. Additionally, as
the Company grows its international business, it is increasingly important that the Company is able to attract and retain personnel with
relevant local qualifications and experience. In addition, in a tightened labor market, the Company is facing increased competition for
talent, both with traditional defense companies and commercial companies. If qualified personnel are scarce or difficult to attract or
retain or if the Company experiences a high level of attrition, generally or in particular areas, or if such personnel are unable to
obtain security clearances on a timely basis, the Company could experience higher labor, recruiting or training costs in order to attract
and retain necessary employees.



If
the Company is able to expand the operations, the Company may be unable to successfully manage its future growth.



The
Company’s growth may strain the Company’s infrastructure and resources. Any such growth could place increased strain on the
Company’s management, operational, financial and other resources, and the Company will need to train, motivate, and manage employees,
as well as attract management, sales, finance and accounting, international, technical, and other professionals. Any failure to expand
these areas and implement appropriate procedures and controls in an efficient manner and at a pace consistent with the Company’s
business objectives could have a material adverse effect on the business, results of operations and financial condition.



The
Company may become subject to various investigations, claims, disputes, enforcement actions, litigation, arbitration and other legal
proceedings that could ultimately be resolved against the Company.



The
size, nature and complexity of the business make the Company susceptible to investigations, claims, disputes, enforcement actions, prosecutions,
litigation and other legal proceedings, particularly those involving governments (including federal, state and outside the U.S.). The
Company may become subject to investigations, claims, disputes, enforcement actions and administrative, civil or criminal litigation,
arbitration or other legal proceedings globally and across a broad array of matters, including, but not limited to, government contracts,
commercial transactions, false claims, false statements, antitrust, mischarging, contract performance, fraud, procurement integrity,
products liability, privacy, warranty liability, the use of hazardous materials, personal injury claims, environmental, shareholder derivative
actions, prior acquisitions and divestitures, intellectual property, tax, employees, export/import, anti-corruption, labor, health and
safety, accidents, launch failures and employee benefits and plans, including plan administration, and improper payments. These matters
could divert financial and management resources; result in administrative, civil or criminal fines, penalties or other sanctions (which
terms include judgments or convictions and consent or other voluntary decrees or agreements), compensatory, treble or other damages,
non-monetary relief or actions, or other liabilities; and otherwise harm the business and the Company’s ability to obtain and retain
awards. Government regulations provide that certain allegations against a contractor may lead to suspension or debarment from government
contracts or suspension of export privileges for the company or one or more of its components. Suspension or debarment or criminal resolutions
in particular could have a material adverse effect on the company because of its reliance on government contracts and export authorizations.
An investigation, claim, dispute, enforcement action or litigation, even if not substantiated or fully indemnified or insured, could
also negatively impact the Company’s reputation among its customers and the public, and make it substantially more difficult for
the Company to compete effectively for business, obtain and retain awards or obtain adequate insurance in the future. Investigations,
claims, disputes, enforcement actions, litigation or other legal proceedings could have a material adverse effect on the Company’s
financial position, results of operations and/or cash flows.



26







The
Company’s reputation, the ability to do business and the Company’s financial position, results of operations and/or cash
flows may be impacted by the improper conduct of employees, agents, subcontractors, suppliers, business partners or joint ventures in
which the Company participates.



The
Company has implemented policies, procedures, and other compliance controls, and have negotiated terms designed to prevent misconduct
by employees, agents or others working on the Company’s behalf or with the Company that would violate the applicable laws of the
jurisdictions in which the Company operates, including laws governing the protection of classified information, procurement integrity,
information security and data privacy, or the terms of the Company’s contracts. However, the Company cannot ensure that the Company
will prevent all such misconduct committed by its employees, agents, subcontractors, suppliers, business partners or others working on
the Company’s behalf or with the Company. This risk of improper conduct may increase as the Company continues to expand globally
and do business with new partners. Improper actions by those with whom or through whom the Company does business (including the Company’s
employees, agents, subcontractors, suppliers, business partners and joint ventures) could subject the Company to administrative, civil
or criminal investigations and enforcement actions; monetary and non-monetary penalties; liabilities; and the loss of privileges and
other sanctions, including suspension and debarment, which could negatively impact the Company’s reputation and ability to conduct
business and could have a material adverse effect on the Company’s financial position, results of operations and/or cash flows.



The
Company may not generate the expected benefits of the acquisition of Cust2Mate and Isramat, and the acquisition of same could disrupt
the Company’s ongoing business, distract management and increase the Company’s expenses.



The
Company acquired a controlling interest in Cust2Mate and all of the issued and outstanding shares of Isramat with the expectation that
the acquisition of such entities will result in various benefits. Achieving the anticipated benefits of the acquisition of Cust2Mate
and Isramat is subject to a number of uncertainties, including whether the Company’s business and the businesses of Cust2Mate and
Isramat can be integrated in an efficient and effective manner. The Company may not be able to accurately forecast the performance or
ultimate impact of the acquisition of Cust2Mate and Isramat. It is possible that the integration process could take longer than anticipated
and could result in the loss of valuable employees, additional and unforeseen expenses, the disruption of the Company’s ongoing
business, processes and systems, or inconsistencies in standards, controls, procedures, practices, policies and compensation arrangements,
any of which could adversely affect the Company’s ability to achieve the anticipated benefits of the acquisition of Cust2Mate and
Isramat. There may be increased risk due to integrating financial reporting and internal control systems. The integration process is
subject to a number of uncertainties, and no assurance can be given that the anticipated benefits, expense savings and synergies will
be realized or, if realized, the timing of their realization. Failure to achieve these anticipated benefits could result in increased
costs or decreases in the amount of expected revenues and could adversely affect the Company’s future business, financial condition,
operating results and prospects.



The
success of the acquisition of Cust2Mate and Isramat, depends upon effective integration and management of the acquired business into
the Company’s operations, which is subject to risks and uncertainties, including realizing the anticipated synergies and cost savings,
the ability to retain and attract personnel, the diversion of management’s attention for other business concerns, and undisclosed
or potential legal liabilities of the Cust2Mate and Isramat business or assets. The Company will be required to devote significant management
attention and resources to integrate the business and operations of Cust2Mate and Isramat.



27







The
Company may also in the future engage in further acquisitions to expand its product and service offerings. These acquisitions involve
risks and uncertainties such as:



| | ● | the
    Company’s pre-acquisition due diligence may fail to identify material risks;                                                                                                                                                                                                                                                                                                                                   
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | significant
    acquisitions may negatively impact the Company’s financial results, including cash flow and financial liquidity;                                                                                                                                                                                                                                                                                       
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | significant
    goodwill assets recorded on the Company’s consolidated balance sheet from prior acquisitions are subject to impairment testing,
    and unfavorable changes in circumstances could result in impairment to those assets;                                                                                                                                                                               
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | acquisitions
    may result in significant additional unanticipated costs associated with price adjustments or write-downs;                                                                                                                                                                                                                                                                                            
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    Company may not integrate newly acquired businesses and operations in an efficient and cost-effective manner;                                                                                                                                                                                                                                                                                                  
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | relocation
    or combination of facilities of acquired businesses may be more costly or time consuming than planned;                                                                                                                                                                                                                                                                                                  
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    Company may fail to achieve the strategic objectives, synergies, cost savings and other benefits expected from acquisitions;                                                                                                                                                                                                                                                                                   
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    technologies acquired may not prove to be those needed to be successful in the Company’s markets or may not have adequate intellectual
    property rights protection;                                                                                                                                                                                                                                         
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    Company may assume significant liabilities and exposures that exceed the enforceability or other limitations of applicable indemnification
    provisions, if any, or the financial resources of any indemnifying parties, including indemnity for tax or regulatory compliance
    issues, such as anti-corruption and environmental compliance, that may result in the Company incurring successor liability;
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    Company may fail to retain key employees of the acquired businesses;                                                                                                                                                                                                                                                                                                                                           
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    attention of senior management may be diverted from its existing operations;                                                                                                                                                                                                                                                                                                                                   
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    Company may be exposed to potential shareholder claims if the Company acquires a significant interest in a publicly traded company;
    and                                                                                                                                                                                                                                                                    
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ● | the
    Company could be subject to more restrictive regulations by the local authorities after the acquisition, including regulations relating
    to foreign ownership of, and export authorizations for, local companies.                                                                                                                                                                                           



The
Company cannot assure that these risks or other unforeseen factors will not offset the intended benefits of the acquisitions, and such
risks could have a material adverse effect on the Company’s financial condition and results of operation.



28







If
the Company expands its operations into and other parts of the world, the Company will face certain additional risks and challenges.



The
Company may expand its operations into other jurisdictions around the world as part of the Company’s business expansion plans,
which will subject the Company to a variety of risks, including fluctuations in foreign currencies, changes in the economic strength
or greater volatility in the economies of foreign countries in which the Company does business, difficulties in enforcing contractual
rights and intellectual property rights, compliance burdens associated with export and import laws, theft or vandalism, economic instability,
taxes or government royalties by foreign governments, adverse changes in the regulatory environments, including in tax laws and regulations,
of the foreign countries in which the Company does business, compliance with anti-corruption and anti-bribery laws, restrictions on the
withdrawal of foreign investments, the ability to identify and retain qualified local managers and the challenge of managing a culturally
and geographically diverse operation. The Company cannot guarantee compliance with all applicable laws and regulations, and violations
could result in substantial fines, sanctions, civil or criminal penalties, competitive or reputational harm, litigation or regulatory
action and other consequences that might adversely affect the Company’s results of operations.



Risks
Related to the Company’s Operations in Israel



The
Company’s principal offices and customers are located in Israel and, therefore, the business, financial condition and results of
operation may be adversely affected by political, economic and military instability in Israel.



The
Company’s principal offices and customers are located in Israel. In addition, all of the Company’s employees and officers,
and one of the directors, are residents of Israel. Accordingly, political, economic and military conditions in Israel may directly affect
the business. Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and
its neighboring countries. Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading
partners could adversely affect the Company’s operations and results of operations.



During
the Second Lebanon War of 2006, between Israel and Hezbollah, a militant Islamic movement, rockets were fired from Lebanon into Israel,
including into the Haifa area, where the Company’s facility is located, causing casualties and major disruption of economic activities
in northern Israel. An escalation in tension and violence between Israel and the militant Hamas movement (which controls the Gaza Strip)
and other Palestinian Arab groups, culminated with Israel’s military campaign in Gaza in December 2008, in November 2012 and again
in July and August 2014 in an endeavor to prevent continued rocket attacks against Israel’s southern towns, as well as other tension
and violence between Israel and Palestinian Arab groups and individuals. It is unclear whether any negotiations that may occur between
Israel and the Palestinian Authority will result in an agreement. In addition, Israel faces threats from more distant neighbors, in particular,
Iran, an ally of Hezbollah and Hamas, and the militant group known as the Islamic State of Iraq and Syria.



Popular
uprisings in various countries in the Middle East and North Africa are affecting the political stability of those countries. Such instability
may lead to deterioration in the political and trade relationships that exist between the State of Israel and these countries. Furthermore,
several countries, principally in the Middle East, restrict doing business with Israel and Israeli companies, and additional countries
may impose restrictions on doing business with Israel and Israeli companies if hostilities in the region continue or intensify. Such
restrictions may seriously limit the Company’s ability to sell its products to customers in those countries. Similarly, Israeli
corporations are limited in conducting business with entities from several countries. Parties with whom the Company may do business could
decline to travel to Israel during periods of heightened unrest or tension. In addition, the political and security situation in Israel
may result in parties with whom the Company may have agreements involving performance in Israel claiming that they are not obligated
to perform their commitments under those agreements pursuant to force majeure provisions in such agreements. In addition, any hostilities
involving Israel could have a material adverse effect on the Company’s facilities including the corporate office or on the facilities
of the Company’s local suppliers, in which event all or a portion of the Company’s inventory may be damaged, and the ability
to deliver products to customers could be materially adversely affected.



29







Furthermore,
the war and terrorism insurance the Company maintains may not be adequate to cover the losses associated with armed conflicts and terrorist
attacks. Although the Israeli government in the past covered the reinstatement value of certain damages that were caused by terrorist
attacks or acts of war, the Company cannot assure you that this government coverage will be maintained, or if maintained, will be sufficient
to compensate the Company fully for damages incurred. Any losses or damages incurred by the Company could have a material adverse effect
on the business.



Any
hostilities involving Israel, terrorist activities or political instability in the region or the interruption or curtailment of trade
between Israel and its present trading partners, or significant downturns in the economic or financial condition of Israel, could adversely
affect the Company’s operations and product development, cause the Company’s revenues to decrease and adversely affect the
share price.



The
Company’s operations may be disrupted as a result of the obligation of management or key personnel to perform military service.



The
Company’s operations could also be disrupted by the obligations of personnel to perform military service. Some of the Company’s
employees and independent contractors may be called upon to perform up to 54 days in each three-year period (and in the case of military
officers, up to 84 days in each three-year period) of military reserve duty until they reach the age of 40 (and in some cases, depending
on their specific military profession up to 45 or even 49 years of age) and, in certain emergency circumstances, may be called to immediate
and unlimited active duty. In response to increases in terrorist activity, there have been periods of significant call-ups of military
reservists and it is possible that there will be similar large-scale military reserve duty call-ups in the future. The Company’s
operations could be disrupted by the absence of a significant number of employees related to military service, which could materially
adversely affect the business and results of operations.



It
may be difficult to enforce a judgment of a Canadian court against the Company, certain of the Company’s officers and directors
or the Israeli experts named in this AIF are in Israel, to assert Canadian securities laws claims in Israel or to serve process on certain
of the officers and directors and these experts.



The
Company is incorporated in Canada. Other than Alan Rootenberg, all of the executive officers and directors reside in Israel, and substantially
all of the Company’s assets and a substantial portion of the assets of these persons are located in Israel. Therefore, a judgment
obtained against the Company, or any of these persons, including a judgment based on the civil liability provisions of Canadian securities
laws, may not be collectible in the Canada and may not be enforced by an Israeli court. It also may be difficult to effect service of
process on these persons in Israel or to assert Canadian securities law claims in original actions instituted in Israel. Israeli courts
may refuse to hear a claim based on an alleged violation of Canadian securities laws on the grounds that Israel is not the most appropriate
forum in which to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law
and not Canadian law is applicable to the claim. If Canadian law is found to be applicable, the content of applicable Canadian. law must
be proven as a fact by expert witnesses, which can be a time consuming and costly process. Certain matters of procedure will also be
governed by Israeli law. There is little binding case law in Israel that addresses the matters described above. As a result of the difficulty
associated with enforcing a judgment against the Company in Israel, one may not be able to collect any damages awarded by either a Canadian
or foreign court.



30







The
Company may become subject to claims for payment of compensation for assigned service inventions by the Company’s current or former
employees, which could result in litigation and adversely affect the business.



Under
the Israeli Patents Law, 5727-1967, or the Patents Law, inventions conceived by an employee during the scope of his or her employment
are regarded as “service inventions” and are owned by the employer, absent a specific agreement between the employee and
employer giving the employee service invention rights. Section 134 of the Patents Law provides that if no agreement between an employer
and an employee exists that prescribes whether, to what extent, and on what conditions the employee is entitled to remuneration for his
or her service inventions, then such matters may, upon application by the employee, be decided by a government-appointed compensation
and royalties committee established under the Patents Law, or the Committee. Although the Company’s employees have agreed to assign
to the Company all rights to any intellectual property created in the scope of their employment and most of the current employees, including
all those involved in the development of the Company’s intellectual property, have agreed to waive their economic rights with respect
to service inventions, the Company cannot assure you that claims will not be brought against the Company by current or former employees
demanding remuneration in consideration for assigned service inventions. If any such claims were filed, the Company could potentially
be required to pay remuneration to the Company’s current or former employees for such assigned service inventions, or be forced
to litigate such claims, which could negatively affect the business.



Israeli
law may delay, prevent or impact acquisition of the Company’s controlling interest.



Israeli
legislation regarding the domestic defense industry requires Israeli government approval of an acquisition of a 25% or more equity interest
(or a smaller percentage that constitutes a “controlling interest”) in companies such as A2Z. Such approval may be subject
to additional conditions relating to transfers of ownership. This could limit the ability of a potential purchaser to acquire a significant
interest in the Company’s shares. In addition, the Israel Companies Law regulates mergers, requires tender offers for acquisitions
of shares above specified thresholds, requires special approvals for transactions involving directors, officers or significant shareholders
and regulates other matters that may be relevant to these types of transactions. These provisions could delay, prevent or impede an acquisition
of the Company, even if such an acquisition would be considered beneficial by some of the Company’s shareholders.



Risks
Related to the Common Shares



A
more active, liquid trading market for the Common Shares may not develop, and the price of the Common Shares may fluctuate significantly.



Although
the Common Shares are listed on the TSXV, NASDAQ, the FSE and OTCQX® Best Market, it has only been traded on such platforms for a
relatively short period of time. There has been relatively limited trading volume in the market for the Common Shares, and a more active,
liquid public trading market may not develop or may not be sustained. Limited liquidity in the trading market for the Common Shares may
adversely affect a shareholder’s ability to sell its Common Shares at the time it wishes to sell them or at a price that it considers
acceptable. If a more active, liquid public trading market does not develop, the Company may be limited in its ability to raise capital
by selling Common Shares and the Company’s ability to acquire other companies or assets by using Common Shares as consideration.
In addition, if there is a thin trading market or “float” for the Common Shares, the market price for the Common Shares may
fluctuate significantly more than the stock market as a whole. Without a large float, the Common Shares would be less liquid than the
stock of companies with broader public ownership and, as a result, the trading prices of the Common Shares may be more volatile, and
it would be harder to liquidate any investment in the Common Shares. Furthermore, the stock market is subject to significant price and
volume fluctuations, and the price of the Common Shares could fluctuate widely in response to several factors, including:



| | ● | the
    Company’s quarterly or annual operating results;
| | - | --------------------------------------------------------
| |   |                                                         
| | ● | changes
    in the Company’s earnings estimates;        



31







| | ● | investment
    recommendations by securities analysts following the Company’s business or the industry;                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ● | additions
    or departures of key personnel;                                                                                                                                                                                                                                                                                                                                                                                       
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ● | changes
    in the business, earnings estimates or market perceptions of the Company’s competitors;                                                                                                                                                                                                                                                                                                                                 
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ● | the
    Company’s failure to achieve operating results consistent with securities analysts’ projections;                                                                                                                                                                                                                                                                                                                            
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ● | changes
    in industry, general market or economic conditions;                                                                                                                                                                                                                                                                                                                                                                     
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ● | announcements
    of legislative or regulatory changes; and                                                                                                                                                                                                                                                                                                                                                                         
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ● | natural
    disasters and political and economic instability, including wars, terrorism, political unrest, results of certain elections and votes,
    emergence of a pandemic, or other widespread health emergencies (or concerns over the possibility of such an emergency, including
    for example, the COVID-19 pandemic), boycotts, adoption or expansion of government trade restrictions, and other business restrictions.



The
stock market has experienced extreme price and volume fluctuations in recent years that have significantly affected the quoted prices
of the securities of many companies. The changes often appear to occur without regard to specific operating performance. The price of
the Common Shares could fluctuate based upon factors that have little or nothing to do with the Company and these fluctuations could
materially reduce the share price.



Concentration
of ownership of the Common Shares may enable one shareholder or a small number of shareholders to significantly influence matters requiring
shareholder approval.



As
of the date of this AIF, members of the Company’s management team beneficially own approximately 27.95% of the issued and outstanding
Common Shares, of which 27.16% are beneficially owned by Bentsur Joseph, the Company’s Chief Executive Officer. As a result, Mr.
Joseph may have the ability to control substantially all matters submitted to the shareholders for approval including:



| | ● | election
    of the board of directors;                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                               
| | ● | removal
    of any of the directors;                                                                                                                          
| |   |                                                                                                                                                               
| | ● | amendment
    of the articles; and                                                                                                                            
| |   |                                                                                                                                                               
| | ● | adoption
    of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving
    the Company.



32







In
addition, the above ownership composition may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain
control of the Company, which in turn could reduce the share price or prevent the Company’s shareholders from realizing a premium
over the share price. Any additional investors will own a minority percentage of the Common Shares and will have minority voting rights.



Sales
by the Company’s shareholders of a substantial number of the Common Shares in the public market could adversely affect the market
price of the Common Shares.



A
substantial portion of the total outstanding shares may be sold into the market at any time. A substantial portion of these shares are
held by Mr. Joseph, the Company’s Chief Executive Officer. Although the Company believes that Mr. Joseph has no current intention
to sell a significant number of Common Shares, the Company cannot provide any such assurance. If Mr. Joseph was to decide to sell large
amounts of Common Shares over a short period of time (presuming such sales were permitted) such sales could cause the market price of
the Common Shares to drop significantly, even if the business is doing well. Further, the market price of the Common Shares could decline
as a result of the perception that such sales could occur. These sales, or the possibility that these sales may occur, also might make
it more difficult for the Company to sell equity securities in the future at a time and price that the Company deems appropriate.



The
exercise of outstanding warrants and options will have a dilutive effect on the percentage ownership of the Common Shares by existing
shareholders.



As
of the date of this AIF, the Company had outstanding warrants to acquire 5,486,560 of Common Shares and options to purchase 820,010 Common
Shares. Warrants and options are exercisable for prices ranging between $1.18 and $9.33. The expiration of the term of such options and
warrants ranges from January 23, 2023 to October 28, 2026. If a significant number of such warrants and stock options are exercised by
the holders, the percentage of Common Shares owned by the Company’s existing shareholders will be diluted.



The
Common Shares will be traded on more than one market and this may result in price variations.



The
Common Shares have been trading on the TSXV, NASDAQ, the FSE and OTCQX® Best Market. Trading in the Common Shares on these markets
will take place in different currencies and at different times, resulting from different trading days and different public holidays.
The trading prices of the Common Shares on these markets may differ due to these and other factors. Any decrease in the price of the
Common Shares on one market could cause a decrease in the trading price of the Common Shares on another market.



DIVIDENDS



The
Company has never declared or paid cash dividends on its Common Shares. Any future dividend payment will be made at the discretion of
the Board, and will depend upon, among other factors, earnings, capital requirements, the Company’s financial needs to fund its
operations and its future growth, and any other factor that the Board deems necessary to consider in the circumstances.



DESCRIPTION
OF SHARE CAPITAL



At
the date of this AIF, the following securities were outstanding:



|Common Shares                                         |  |  | 27,149,364 | 
|----------------------------------------------------- |  |  | ---------- | 
|                                                      |  |  |            | 
|Options issued to directors, officers and consultants |  |  | 820,010    | 
|                                                      |  |  |            | 
|Warrants                                              |  |  | 5,486,560  | 
|                                                      |  |  |            | 
|Common Shares outstanding on a fully diluted basis    |  |  | 33,455,934 | 



33







Common
Shares



The
authorized share capital of the Company consists of one class of an unlimited number of Common Shares without par value. In accordance
with the Company’s articles, each Common Share is entitled to an equal number of votes (one vote per Common Share) and equal, pro
rata rights on all distributions and any dividends. There are no special rights or restrictions, such as pre-emptive rights, attached
to any of the outstanding Common Shares that were issued to any of the Company’s shareholders.



MARKET
FOR SECURITIES



Trading
Price and Volume



The
following table sets forth, for the periods indicated, the reported price range (high and low closing prices), and the aggregate volume
of trading of the Common Shares on the TSXV during each month of the financial year ended December 31, 2021 as well as the periods up
to the date of this AIF:



|Month          |  | High  (CAD$) |       |  | Low  (CAD$) |  |      | Volume | 
|-------------- |  | ------------ | ----- |  | ----------- |  | ---- | ------ | 
|January 2021   |  |              | 3.57  |  |             |  | 2.19 |        | 
|February 2021  |  |              | 15.00 |  |             |  | 3.75 |        | 
|March 2021     |  |              | 4.52  |  |             |  | 2.10 |        | 
|April 2021     |  |              | 13.56 |  |             |  | 6.30 |        | 
|May 2021       |  |              | 10.05 |  |             |  | 8.43 |        | 
|June 2021      |  |              | 15.00 |  |             |  | 8.94 |        | 
|July 2021      |  |              | 12.00 |  |             |  | 7.56 |        | 
|August 2021    |  |              | 8.34  |  |             |  | 5.76 |        | 
|September 2021 |  |              | 10.01 |  |             |  | 6.43 |        | 
|October 2021   |  |              | 10.10 |  |             |  | 7.46 |        | 
|November 2021  |  |              | 10.65 |  |             |  | 8.40 |        | 
|December 2021  |  |              | 14.40 |  |             |  | 7.97 |        | 
|January 2022   |  |              | 14.00 |  |             |  | 6.00 |        | 
|February 2022  |  |              | 8.88  |  |             |  | 6.81 |        | 
|March 2022     |  |              | 8.50  |  |             |  | 6.82 |        | 



34







The
Common Shares commenced trading on the NASDAQ under the symbol “AZ” on January 5, 2022. The following table sets forth,
for the periods indicated, the reported high and low prices and the trading volume of the Common Shares on the NASDAQ:



|Month         |  | High  ($) |      |  | Low  ($) |  |      | Volume | 
|------------- |  | --------- | ---- |  | -------- |  | ---- | ------ | 
|January 2022  |  |           | 5.80 |  |          |  | 5.58 |        | 
|February 2022 |  |           | 6.48 |  |          |  | 5.72 |        | 
|March 2022    |  |           | 6.74 |  |          |  | 5.15 |        | 



Prior
Sales



The
following table sets forth the securities of the Company outstanding but not listed or quoted on a marketplace, which were issued during
the year ended December 31, 2021:



|Date of Issuance |  | Security |  | Number of Securities/Aggregate Principal Amount |           |  | Issue / Exercise / Conversion Price  (CAD) |   |       | Reason for Issuance
|---------------- |  | -------- |  | ----------------------------------------------- | --------- |  | ------------------------------------------ | - | ----- | -------------------
|January 28, 2021 |  | Options  |  |                                                 | 33,333    |  |                                            | $ | 3.00  |                    
|April 9, 2021    |  | Warrants |  |                                                 | 221,100   |  |                                            | $ | 11.04 |                    
|June 3, 2021     |  | Warrants |  |                                                 | 1,084,562 |  |                                            | $ | 11.04 |                    
|October 28, 2021 |  | Options  |  |                                                 | 16,677    |  |                                            | $ | 8.00  |                    



35







Notes:



(1)
On January 28, 2021, the Company granted 33,333 options to a consultant, with the following vesting terms: 11,111 options vest immediately,
11,111 options vest 6 months after grant date, and 11,111 options vest 12 months after grant date.

(2)
On April 9, 2021, the Company completed a private placement of April Units. Each April Unit consisted of one Common Share and one April
Unit Warrant. See “Three Year History” for additional details.

(3)
On June 3, 2021, the Company completed a private placement of June Units. Each June Unit consisted of one Common Share and one June Unit
Warrant. See “Three Year History” for additional details.

(4)
On October 28, 2021, the Company granted 16,677 options to a director, with the following vesting conditions: 5,559 options vest immediately,
5,559 options vest 12 months after grant date, and 5,559 options vest 24 months after grant date.



ESCROWED
SECURITIES



|Class of Securities |  | Number of Securities Held in Escrow(1) |           |  | Percentage of Class | 
|------------------- |  | -------------------------------------- | --------- |  | ------------------- | 
|Common Shares       |  |                                        | 5,648,942 |  |                     | 



Note:



(1)
The escrowed securities are held pursuant to an escrow agreement with Computershare Trust Company of Canada, as the Escrow Agent, pursuant
to the Company’s Qualifying Transaction completed on December 16, 2019. Of the total amount: (A) 5,500,368 are subject to the following
release schedule: (i) 15% will be released on January 19, 2022; and (ii) 40% will be released on December 16, 2022; and (B) 148,573 are
subject to the following release schedule: (i) 15% will be released on January 19, 2022; and (ii) 15% will be released on December 19,
2022. The escrowed securities were issued pursuant to the Company’s Qualifying Transaction. See “Three Year History”
for additional details.



DIRECTORS
AND OFFICERS



The
names, province and country of residence of the directors and executive officers of the Company as of the date hereof, their positions
with the Company, the period served as a director, and their principal occupations during the past five years, are set forth below.



|Name
    and Municipality of Residence                                 |  | Position                                            |  | Position
    Held Since |  | Principal
    Occupation(s) During Past Five Years               |  | Common
    Shares Owned Directly or Indirectly(1)
|---------------------------------------------------------------------- |  | --------------------------------------------------- |  | ----------------------- |  | ---------------------------------------------------------------- |  | -------------------------------------------------
|Bentsur
    Joseph
    
    Age
    62
    
    Yavne,
    Israel      |  | Chief
    Executive Officer, President and Director |  | December
    18, 2019   |  | Director,
    President and CEO of A2Z                           |  | 9,118,922
    (27.16%)                           
|                                                                       |  |                                                     |  |                         |  |                                                                  |  |                                                  
|Gadi
    Levin
    
    Age
    49
    
    Azriel,
    Israel         |  | Chief
    Financial Officer                         |  | March
    15, 2022      |  | CFO
    & Director of several Canadian publicly listed companies |  | 150,000
    (0.45%)                              
|                                                                       |  |                                                     |  |                         |  |                                                                  |  |                                                  
|Amnon
    Peleg
    
    Age
    62
    
    Rishon
    LeZion, Israel |  | Chief
    Technology Officer                        |  | December
    18, 2019   |  | Chief
    Technology Officer of A2Z                              |  | 33,895
    (0.10%)                               



36







|Name
    and Municipality of Residence                                         |  | Position |  | Position
    Held Since |  | Principal
    Occupation(s) During Past Five Years                                                                                          |  | Common
    Shares Owned Directly or Indirectly(1)
|------------------------------------------------------------------------------ |  | -------- |  | ----------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------
|Alan
    Rootenberg
    
    Age
    70
    
    Toronto,
    Ontario, Canada  |  | Director |  | May
    13, 2020        |  | CFO
    and/or Director of several publicly listed companies                                                                                |  | 33,333
    (0.10%)                               
|                                                                               |  |          |  |                         |  |                                                                                                                                             |  |                                                  
|Yonatan
    de Jongh
    
    Age
    41
    
    Rishon
    LeZion, Israel    |  | Director |  | February
    19, 2021   |  | Senior
    Manager of Revenues and Billing at DraftKings Inc.                                                                               |  | 16,667
    (0.05%)                               
|                                                                               |  |          |  |                         |  |                                                                                                                                             |  |                                                  
|Shlomo
    Menachem Pashker
    
    Age
    38
    
    Bnei
    Brak, Israel |  | Director |  | March
    28, 2022      |  | Chairman
    of Be’eer Izchak Charitable Foundation, Israel
    
    Senior
    Lecturer at an Israeli Institute of Higher Jewish Education |  | 31,901
    (0.10%)                               



Note:



|(1) | The
    share totals presented in the table above include options granted and held by the respective director or officer. Consequently, percentage
    totals are presented on a fully diluted basis, assuming the exercise of all outstanding options.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Bentsur
Joseph has been the President, Chief Executive Officer and Director of the Company since December 18, 2019 and the President and
Chief Executive Officer of A2ZMS since 1998. Prior to joining A2Z, between 1999 and 2001, Mr. Joseph served as the Chairman of Elad Hotels
– Part of the Isaac Tshuva group of companies. Prior thereto, between 2001 and 2003, Mr. Joseph served as the CEO of DIG Ltd.,
a public company which produces and sells electric components through the biggest shops and chain stores all over Israel. Prior thereto,
Mr. Joseph served as a director of MARLAZ, a large well recognized public holding company which owns various publicly traded companies
in the industrial, real estate, communication, and hi-tech industries. Mr. Joseph holds an Electronic field-engineer degree from Israeli
Air-Force unit and Project Management Diploma from Tel-Aviv University.



Gadi
Levin was initially appointed Chief Financial Officer on April 2, 2020 and resigned on October 27, 2021. He was re-appointed on March
15, 2022. Mr. Levin provides outsourced CFO services where he also serves as Chief Financial Officer and Secretary of Briacell Therapeutics
Corp since February 2016, Chief Financial Officer and Director of Vaxil Bio Ltd since March 1, 2016, and Finance Director of Eco (Atlantic)
Oil & Gas Ltd. since December 1, 2016. Mr. Levin has over 15 years of experience working with public US, Canadian and multi-jurisdictional
public companies. Previously, Mr. Levin served as Chief Financial Officer of DarioHeath Corp from November 2013 through January 2015.
Mr. Levin also served as the Vice President of Finance and Chief Financial Officer for two Israeli investment firms specializing in private
equity, hedge funds and real estate. Mr. Levin began his CPA career at the accounting firm Arthur Andersen, where he worked for nine
years, specializing in U.S. listed companies involved in IPOs. Mr. Levin has a Bachelor of Commerce degree in Accounting and Information
Systems from the University of the Cape Town, South Africa, and a post graduate diploma in Accounting from the University of South Africa.
He received his Chartered Accountant designation in South Africa and has an MBA from Bar Ilan University in Israel.



37







Amnon
Peleg has served as the Chief Technology Officer since January 2010. Prior to joining A2Z, between 1983 and 2006, Mr. Peleg served
as a Technological Project Manager for the Office of the Prime Minister of Israel. Mr. Peleg holds an Electronic field-engineer degree
from the Israel Air Force, 1983 and a Project Management Diploma from Tel-Aviv University, 2002.



Alan
Rootenberg has served on the board of directors since May 2020. Mr. Rootenberg is a chartered professional accountant who has served
as the Chief Financial Officer of a number of publicly traded companies listed on the TSX, TSXV, OTCBB and CSE. These companies include
mineral exploration, mining, technology and companies in the cannabis industry. These companies are: BioHarvest Sciences Inc. (since
November 2018); Eco (Atlantic) Oil & Gas Ltd. (since November 2011); Osino Resources Corp. (since June 2018); Empower Clinics Inc.
(from August 2013 to May 2018) Solvbl Solutions Inc. since February 2021. Mr. Rootenberg has a Bachelor of Commerce degree from the University
of the Witwatersrand in Johannesburg, South Africa and received his professional designation in both South Africa and Ontario, Canada.



Yonatan
de Jongh has served on the board of directors since February, 2021. Yonatan de Jongh presently serves as Senior Manager of Revenues
and Billing at DraftKings Inc. Mr. de Jongh holds a Bachelor and Master degree in Business Administration and Accounting from College
of Management (Rishon Lezion, Israel) from 2015.



Shlomo
Menachem Pashker



Shlomo
Menachem Pashkeris the chairman of Be’eer Izchak Charitable Foundation and a senior lecturer in Jewish law at an Israeli Institute
of Higher Jewish Education.



Each
director of the Company will hold office until the next annual shareholders’ meeting or until a successor is duly elected, unless
his or her office is earlier vacated in accordance with the Company’s articles.



Committees
of the Board of Directors



The
Board of Directors discharges its responsibilities directly, as well as indirectly through the Audit Committee, the Compensation Committee
and the Nominating Committee.



Audit
Committee



The
mandate of the Audit Committee is formalized in a written charter. The members of the Audit Committee are Messrs. Alan Rootenberg, Shlomo
Menachem Pashker and Yonatan de Jongh. The Audit Committee’s primary objective is to assist the Board in fulfilling its oversight
responsibilities to: (i) review financial reports and financial information provided to any regulatory authority or provided for release
to the public and the Company’s shareholders; (ii) review the Company’s disclosure control systems; (iii) review the Company’s
internal control systems with respect to finance, accounting and legal compliance; and (iv) review the Company’s accounting and
financial reporting processes. See “Audit Committee” below.



38







Compensation
Committee



The
members of the Compensation Committee are Messrs. Rootenberg, Pashker and de Jongh. The purpose of the Compensation Committee is to assist
the Board in fulfilling its oversight responsibilities with respect to compensation of members of the Board and the executive officers
of the Company.



Nominating
Committee



The
members of the Nominating Committee are Messrs. Rootenberg, Pashker and de Jongh. The purpose of the Nominating Committee is to assist
the Board in fulfilling its oversight responsibilities with respect to nomination of members of the Board.



Common
Shares Owned by Directors and Executive Officers, as a Group



To
the knowledge of the Company as of the date hereof, the directors and executive officers of the Company, as a group, beneficially own
or exercise control or direction over, directly or indirectly, an aggregate of 9,384,718 Common Shares or approximately 27.95% of the
issued and outstanding Common Shares on a non-diluted basis. The information as to Common Shares beneficially owned, or controlled or
directed, directly or indirectly, not being within the knowledge of the Company, has been furnished by the respective individuals.



Cease
Trade Orders, Bankruptcies, Penalties or Sanctions



For
the purposes of this section, “order” means a cease trade order, an order similar to a cease trade order, or an order that
denied the relevant company access to any exemption under securities legislation, all that was in effect for a period of more than 30
consecutive days.



To
the knowledge of the Company, other than as disclosed below, no director or executive officer of the Company is, as at the date hereof,
or has been, within the 10 years before the date hereof, a director, chief executive officer or chief financial officer of any corporation
that:



| | (a) | was
    subject to an order that was issued while the director or executive officer was acting in the capacity as director, chief executive
    officer or chief financial officer; or                                                                                                                                              
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                     
| | (b) | was
    subject to an order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief
    financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief
    executive officer or chief financial officer.



39







To
the knowledge of the Company, no director or executive officer of the Company, or a shareholder holding a sufficient number of securities
of the Company to affect materially the control of the Company:



| | (a) | is,
    as at the date hereof, or has been within the 10 years before the date hereof, a director or executive officer of any corporation
    that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt,
    made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement
    or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (b) | has,
    within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency,
    or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager
    or trustee appointed to hold the assets of the director, executive officer or shareholder.                                                                                                                                                           



To
the knowledge of the Company, no director or executive officer of the Company, or a shareholder holding a sufficient number of the Company’s
securities to affect materially the control of the Company, has been subject to:



| | (a) | any
    penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered
    into a settlement agreement with a securities regulatory authority; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                       
| | (b) | any
    other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor
    in making an investment decision.                                   



Conflict
of Interest



There
are potential conflicts of interest to which the directors, officers and promoters (if any) of the Company will be subject with respect
to the operations of the Company. Certain of the directors and/or officers serve as directors and/or officers of other companies or have
significant shareholdings in other companies, including the other companies indicated herein. Situations may arise where the directors,
officers and promoters (if any) of the Company will be engaged in direct competition with the Company. Any conflicts of interest will
be subject to and governed by the law applicable to directors’ and officers’ conflicts of interest, including the procedures
prescribed by the BCBCA. The BCBCA requires that directors and officers of the Company, who are also directors or officers of a party
which enters into a material contract with the Company or otherwise have a material interest in a material contract entered into by the
Company, must disclose their interest and, in certain instances, refrain from voting on any resolution of the Company’s directors
to approve the contract.



INTEREST
OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS



To
the knowledge of the Company, other than as immediately described below, no director or executive officer of the Company or any of the
Company’s subsidiaries, and no person or company who beneficially owns, directly or indirectly, or otherwise exercises control
over more than 10% of the voting rights of the Company, or any proposed director, and no associate or affiliate of the foregoing persons,
has had any material interest, direct or indirect, in any transaction within the Company’s three most recently completed financial
years or any proposed transaction which has materially affected or would materially affect the Company or any of its subsidiaries within
the three most recently completed financial years.



On
December 30, 2019, A2ZAS entered into the Call Option Agreement with the Company’s Chief Executive Officer, Bentsur Joseph. See
“Three Year History” for additional details.



40







REGULATORY
ACTIONS



No
penalty or sanction has been imposed against the Company by a court relating to applicable securities legislation or by any securities
regulatory authority, and the Company has not entered into any settlement agreement with any court relating to applicable securities
legislation or with any securities regulatory authority. No other penalty or sanction has been imposed against the Company by a court
or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.



LEGAL
PROCEEDINGS



As
of the date of this AIF, the Company is not aware of any existing or contemplated legal proceedings material to the Company, to which
the Company is, or was, a party or of which any of its property is, as of the date of this AIF was subject.



INTERESTS
OF EXPERTS



The
Company’s auditors are BDO Ziv Haft. To the knowledge of the Company, as of the date hereof, the partners and employees of BDO
Ziv Haft collectively own beneficially, directly or indirectly, none of the Common Shares.



TRANSFER
AGENT AND REGISTRAR



The
independent auditor of the Company is BDO Ziv Haft at its principal office in Tel Aviv, Israel.



The
registrar and transfer agent of the Common Shares is Computershare Trust Company of Canada at its principal office in Vancouver, British
Columbia.



MATERIAL
CONTRACTS



Except
for contracts entered into in the ordinary course of business, as of date of this AIF, there are no material contracts which the Company
has entered into within the most recently completed financial year, or before the most recently completed financial year but which are
still in effect.



AUDIT
COMMITTEE



Under
National Instrument 52-110 – Audit Committees (“NI 52-110”), companies are required to provide disclosure
with respect to their Audit Committee including the text of the Audit Committee’s charter, composition of the Audit Committee and
the fees paid to the external auditor. Accordingly, the Company provides the disclosure below with respect to its Audit Committee.



Audit
Committee’s Charter



The
text of the charter (the “Charter”) of the Audit Committee is reproduced as Exhibit “A”.



Composition
of Audit Committee



The
Audit Committee is comprised of Messrs. Rootenberg, Pashker and de Jongh. All of the members of the Audit Committee have been determined
by the Board to be “independent” (as such term is defined in NI 52-110) and “financially literate” (as such term
is defined in NI 52-110), having the ability to understand and critically evaluate the financial statements of the Company. The Board
made this determination based on the experience of each Audit Committee member.



41







Relevant
Education and Experience



Alan
Rootenberg, Chairman, has served on the board of directors since May 13, 2020. Mr. Rootenberg is a chartered professional accountant
who has served as the Chief Financial Officer of a number of publicly traded companies listed on the TSX, TSXV, OTCBB and CSE. These
companies include mineral exploration, mining, technology and companies in the cannabis industry. These companies are: BioHarvest Sciences
Inc. (since November 2018); Eco (Atlantic) Oil & Gas Ltd. (since November 2011); Osino Resources Corp. (since June 2018); Empower
Clinics Inc. (from August 2013 to May 2018).



Yonatan
de Jonghhas served on the board of directors since February 19, 2021. Yonatan de Jongh presently serves as Senior Manager of Revenues
and Billing at DraftKings Inc. Mr. de Jongh holds a Bachelor and Master degree in Business Administration and Accounting from College
of Management (Rishon Lezion, Israel) from 2015.



Shlomo
Menachem Pashker



Shlomo
Menachem Pashker is the chairman of Be’eer Izchak Charitable Foundation and a senior lecturer in Jewish law at an Israeli Institute
of Higher Jewish Education.Audit Committee Oversight



At
no time during the Company’s financial period from January 1, 2021 to December 31, 2021 was a recommendation of the Audit Committee
to nominate or compensate an external auditor (currently, BDO Ziv Haft) not adopted by the Board.



Pre-Approval
Policies and Procedures



The
Audit Committee has not adopted formal policies and procedures for the engagement of non-audit services. Subject to the requirements
of the NI 52-110, the engagement of non-audit services is considered by, as applicable, the Board and the Committee, on a case-by-case
basis.



Audit
Fees



The
table below summarizes the aggregate fees billed by auditors of the Company for professional services rendered in each of the last two
fiscal years.



|                      |  | Year Ended December 31, 2020 |         | Year Ended December 31, 2021
|--------------------- |  | ---------------------------- | ------- | ----------------------------
|Audit Fees(1)         |  | $                            | 125,000 |                             
|Audit Related Fees(2) |  | $                            | 18,000  |                             
|Tax Fees(3)           |  | $                            | 13,000  |                             
|All Other Fees(4)     |  |                              | —       |                             
|Total                 |  | $                            | 156,000 |                             



Notes:



|(1) | The
    aggregate fees billed in connection with the audit of the Company.                                                                                                                                                             
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                        
|(2) | The
    aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of
    the Company’s financial statements which are not included under the heading “Audit Fees”.
|    |                                                                                                                                                                                                                                        
|(3) | The
    aggregate fees billing for tax compliance, tax advice and tax planning.                                                                                                                                                        
|    |                                                                                                                                                                                                                                        
|(4) | The
    aggregate fees billed for products and services provided by the auditors of the Company, other than as described above.                                                                                                        



42







ADDITIONAL
INFORMATION



Additional
information relating to the Company may be found on SEDAR at www.sedar.com. Additional information, including information concerning
directors’ and officers’ remuneration and indebtedness, principal holders of the Company’s securities and securities
authorized for issuance under equity compensation plans, where applicable, is contained in the management proxy circular of the Company’s
most recent annual general meeting.



Additional
financial information is provided in the Company’s audited annual financial statements and related management’s discussion
and analysis for its most recently completed financial year ended December 31, 2021, copies of which can be found at www.sedar.com under
the Company’s profile.



43







EXHIBIT
“A”

AUDIT
COMMITTEE CHARTER



The
Audit Committee (the “Committee”) is a committee of the board of directors (the “Board”) of the
Company. The role of the Committee is to provide oversight of the Company’s accounting and financial reporting processes and of
the design and implementation of an effective system of internal financial controls as well as to review and report to the Board on the
integrity of the financial statements of the Company, its subsidiaries and associated companies. This includes helping directors meet
their responsibilities, facilitating better communication between directors and the external auditor, enhancing the independence of the
external auditor, increasing the credibility and objectivity of financial reports and strengthening the role of the directors by facilitating
in-depth discussions among directors, management and the external auditor. Management is responsible for establishing and maintaining
those controls, procedures and processes and the Committee is appointed by the Board to review and monitor them. The Company’s
external auditor is ultimately accountable to the Board and the Committee as representatives of the Company’s shareholders.



Duties
and Responsibilities



The
authority delegated to the Committee is set forth below. The purposes, responsibilities and other provisions specified in this Charter
are intended to serve as guidelines, and the Committee may act and establish policies and procedures that are consistent with these guidelines
or are necessary or advisable, in its discretion, to carry out the intent of the Board in delegating such authority and to fulfill the
responsibilities of the Committee hereunder. Nothing herein is intended to expand applicable standards of liability under Canadian or
any U.S. state or federal law for directors of a corporation.



External
Auditor



| | (a) | To
    be directly responsible for the appointment, compensation, retention, termination, and oversight of the work of any accounting firm
    engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company
    (subject, if applicable, to shareholder ratification). Each such accounting firm shall report directly to the Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (b) | Review
    and ensure the independence of the external auditor by: (i) receiving from, and reviewing and discussing with, the external auditor,
    on a periodic basis, a formal written statement delineating all relationships between the external auditor and the Company consistent
    with the applicable requirements of the Public Company Accounting Oversight Board; (ii) reviewing, and actively discussing with the
    Board, if necessary, and the independent auditor, on a periodic basis, any disclosed relationships or services, including non-audit
    services, between the independent auditor and the Company or any other disclosed relationships or services that may impact the objectivity
    and independence of the independent auditor; (iii) recommending, if necessary, that the Board take appropriate action to satisfy
    itself of the independent auditor’s independence; and (iv) ensuring that the lead or coordinating audit partner having primary
    responsibility for the audit, or the audit partner responsible for reviewing the is in compliance with the partner rotation requirements
    under applicable laws and rules.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (c) | To
    oversee the work of the external auditor engaged for the purpose of preparing or issuing an auditor’s report or performing
    other audit, review or attest services for the Company, including the resolution of disagreements between management and the external
    auditor regarding financial reporting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



A-1









| | (d) | To
    pre-approve the audit services and non-audit services (including the fees and terms thereof) to be provided by the Company’s
    external auditor pursuant to pre-approval policies and procedures established by the Committee                                                                                                                                                                                                                                                
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (e) | To
    obtain and review, at least annually, a written report by the external auditor setting out the auditor’s internal quality-control
    procedures, any material issues raised by the auditor’s internal quality-control reviews and the steps taken to resolve those
    issues.                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (f) | To
    review and approve the Company’s hiring policies regarding partners, employees and former partners and employees of the present
    and former external auditor of the Company. The Committee has adopted the following guidelines regarding the hiring of any partner,
    employee, reviewing tax professional or other person providing audit assurance to the external auditor of the Company on any aspect
    of its certification of the Company’s financial statements:



| | (i)   | No
    member of the audit team that is auditing a business of the Company can be hired into that business or into a position to which that
    business reports for a period of three years after the audit;              
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                            
| | (ii)  | No
    former partner or employee of the external auditor may be made an officer of the Company or any of its subsidiaries for three years
    following the end of the individual’s association with the external auditor;
| |       |                                                                                                                                                                                                                            
| | (iii) | The
    Chief Financial Officer (“CFO”) must approve all office hires from the external auditor; and                                                                                                                       
| |       |                                                                                                                                                                                                                            
| | (iv)  | The
    CFO must report annually to the Committee on any hires within these guidelines during the preceding year.                                                                                                          



| | (g) | To
    review, at least annually, the relationships between the Company and the external auditor in order to establish the independence
    of the external auditor.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



Financial
Information and Reporting



| | (a) | To
    review the Company’s annual audited financial statements with the Chief Executive Officer (“CEO”) and CFO
    and then the full Board. The Committee will review the interim financial statements with the CEO and CFO.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                               
| | (b) | To
    review and discuss with management and the external auditor, as appropriate:                                                                                                                                           



| | (i)  | The
    annual audited financial statements and the interim financial statements, including the accompanying management discussion and analysis;
    and
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                         
| | (ii) | Earnings
    guidance and other releases containing information taken from the Company’s financial statements prior to their release.                   



| | (c) | To
    review the quality and not just the acceptability of the Company’s financial reporting and accounting standards and principles
    and any proposed material changes to them or their application.                                                                                                                                                                                                                       
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (d) | To
    review with the CFO any earnings guidance to be issued by the Company and any news release containing financial information taken
    from the Company’s financial statements prior to the release of the financial statements to the public. In addition, the CFO
    must review with the Committee the substance of any presentations to analysts or rating agencies that contain a change in strategy
    or outlook.



A-2







Oversight



| | (a) | To
    review the internal audit staff functions, including:
| | --- | ------------------------------------------------------------



| | (i)   | The
    purpose, authority and organizational reporting lines; 
| | ----- | ---------------------------------------------------------------
| |       |                                                                
| | (ii)  | The
    annual audit plan, budget and staffing; and            
| |       |                                                                
| | (iii) | The
    appointment and compensation of the controller, if any.



| | (b) | To
    review, with the CFO and others, as appropriate, the Company’s internal system of audit controls and the results of internal
    audits.                                                                                                                                                                                                                                                                         
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (c) | To
    review and monitor the Company’s major financial risks and risk management policies and the steps taken by management to mitigate
    those risks.                                                                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (d) | To
    meet at least annually with management (including the CFO), the internal audit staff, and the external auditor in separate executive
    sessions and review issues and matters of concern respecting audits and financial reporting.                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (e) | In
    connection with its review of the annual audited financial statements and interim financial statements, the Committee will also review
    the process for the CEO and CFO certifications (if required by law or regulation) with respect to the financial statements and the
    Company’s disclosure and internal controls, including any material deficiencies or changes in those controls.                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (f) | Establish
    procedures for: (i) the receipt, retention, and treatment of complaints received by the Company regarding accounting, internal accounting
    controls or auditing matters; and (ii) the confidential, anonymous submission by employees of the Company of concerns regarding questionable
    accounting or auditing matters, and review any complaints or concerns received pursuant to such procedures.



Membership



| | (a) | The
    Committee shall consist solely of three or more members of the Board, all of which the Board has determined is “independent”
    as required under applicable securities rules or applicable stock exchange rules, including the Sarbanes-Oxley Act of 2002 and the
    rules and regulations of the SEC promulgated thereunder, and the NASDAQ Rules.                                                                                                                                                                                                                  
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (b) | No
    member of the Committee may have participated in the preparation of the financial statements of the Company or any of the Company’s
    current subsidiaries during the preceding three years. Any member may be removed from office or replaced at any time by the Board
    and shall cease to be a member upon ceasing to be a director. Each member of the Committee shall hold office until the close of the
    next annual meeting of shareholders of the Company or until the member ceases to be a director, resigns or is replaced, whichever
    first occurs.



A-3







| | (c) | The
    members of the Committee shall be entitled to receive such remuneration for acting as members of the Committee as the Board may from
    time to time determine.                                                                                                                                                                                                                                                                        
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (d) | All
    members of the Committee must be “financially literate” (i.e., have the ability to read and understand a set of
    fundamental financial statements including a balance sheet, an income statement and a cash flow statement).                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (e) | At
    least one member of the Committee shall have past employment experience in finance or accounting, requisite professional certification
    in accounting or other comparable experience or background that results in the member’s financial sophistication, in each case,
    consistent with the NASDAQ Rules. That individual shall also be an “audit committee financial expert” consistent with
    the SEC’s rules and regulations.



Procedures



| | (a) | The
    Board shall appoint one of the directors elected to the Committee as the Chair of the Committee (the “Chair”).
    In the absence of the appointed Chair from any meeting of the Committee, the members shall elect a Chair from those in attendance
    to act as Chair of the meeting.                                                                                                                                                                                                                                
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (b) | The
    Chair will appoint a secretary (the “Secretary”) who will keep minutes of all meetings. The Secretary does not
    have to be a member of the Committee or a director and can be changed by simple notice from the Chair.                                                                                                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (c) | No
    business may be transacted by the Committee except at a meeting of its members at which a quorum of the Committee is present or by
    resolution in writing signed by all the members of the Committee. A majority of the members of the Committee shall constitute a quorum,
    provided that if the number of members of the Committee is an even number, one-half of the number of members plus one shall constitute
    a quorum, and provided that a majority of the members must be “independent” or “unrelated”.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (d) | The
    Committee will meet as many times as is necessary to carry out its responsibilities but not less frequently than once every quarter.
    Any member of the Committee or the external auditor may call meetings.                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (e) | The
    time and place of the meetings of the Committee, the calling of meetings and the procedure in all respects of such meetings shall
    be determined by the Committee, unless otherwise provided for in the articles of the Company or otherwise determined by resolution
    of the Board.                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (f) | The
    Committee shall have the resources and authority necessary to discharge its duties and responsibilities, including the authority
    to select, retain, terminate, and approve the fees and other retention terms (including termination) of special counsel, advisors
    or other experts or consultants, as it deems appropriate.                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (g) | The
    Committee shall have available appropriate funding from the Company as determined by the Committee for payment of: (i) compensation
    to any accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest
    services for the Company; (ii) compensation to any advisers employed by the Committee; and (iii) ordinary administrative expenses
    of the Committee that are necessary or appropriate in carrying out its duties.                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (h) | The
    Committee shall have access to any and all books and records of the Company necessary for the execution of the Committee’s
    obligations and shall discuss with the CEO or the CFO such records and other matters considered appropriate.                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (i) | The
    Committee has the authority to communicate directly with the internal and external auditors.                                                                                                                                                                                                                                                                                                                                                                                                                            



A-4







Reports



The
Committee shall produce the following reports and provide them to the Board:



| | (a) | An
    annual performance evaluation of the Committee, which evaluation must compare the performance of the Committee with the requirements
    of this Charter. The performance evaluation should also recommend to the Board any improvements to this Charter deemed necessary
    or desirable by the Committee. The performance evaluation by the Committee shall be conducted in such manner as the Committee deems
    appropriate. The report to the Board may take the form of an oral report by the Chair or any other member of the Committee designated
    by the Committee to make this report.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | (b) | A
    summary of the actions taken at each Committee meeting, which shall be presented to the Board at the next Board meeting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



A-5







EXHIBIT
“B”

CORPORATE
GOVERNANCE DISCLOSURE



Board
of Directors



The
Board supervises the CEO and the CFO. Both the CEO and CFO are required to act in accordance with the scope of authority provided to
them by the Board.



|Director                    |  | Independence                                                    
|--------------------------- |  | ----------------------------------------------------------------
|Bentsur
    Joseph          |  | Not
    independent as he is an executive officer of the Company
|Alan
    Rootenberg         |  | Independent                                                     
|Shlomo
    Menachem Pashker |  | Independent                                                     
|Yonatan
    de Jongh        |  | Independent                                                     



The
participation of the directors and officers of the Company in other reporting issuers at the date of this AIF is described in the following
table:



|Name           |                                     | Name
    of Reporting Issuer     |                   | Name
    of Exchange or Market |                      | Position |                    | From          |                    | To     
|-------------- | ----------------------------------- | -------------------------------- | ----------------- | ------------------------------ | -------------------- | -------- | ------------------ | ------------- | ------------------ | -------
|Gadi
    Levin |                                     | The
    INX Digital Company Inc. |                   | CSE                            |                      | CFO      |                    | July
    2021 |                    | Present
|               | Briacell
    Therapeutics Corp.     |                                  | NASDAQ
    / TSXV |                                | CFO                  |          | July
    2016      |               | Present           
|               | Eco
    (Atlantic) Oil & Gas Ltd    |                                  | AIM
    / TSXV    |                                | Finance
    Director |          | December
    2016  |               | Present           
|               | Vaxil
    Bio Ltd                   |                                  | TSXV
    / OTC    |                                | Director
    & CFO   |          | July
    2016      |               | Present           
|               | A2Z
    Smart Technologies Corp.    |                                  | TSXV              |                                | CFO                  |          | April
    2020     |               | October
    2021  
|               | Clearmind
    Medicine Inc.         |                                  | TSXV
    / OTCQX  |                                | Director             |          | April
    2020     |               | September
    2021
|               | Enthusiast
    Gaming Holdings Inc. |                                  | NASDAQ
    / TSXV |                                | CFO                  |          | September
    2018 |               | August
    2019   
|               | DarioHealth                         |                                  | NASDAQ
    / OTC  |                                | CFO                  |          | 2013               |               | 2015              



B-1







|Name                                                                                                                                                                                    |                                  | Name
                                            ofReporting Issuer |      | Name of Exchange or
                                                                                Market |                      | Position |                   | From              |                | To     
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- | ------------------------------------------------------------------- | ---- | ---------------------------------------------------------------------------------------------------------- | -------------------- | -------- | ----------------- | ----------------- | -------------- | -------
|Alan
    Rootenberg                                                                                                                                                                     |                                  | Solvbl
    Solutions Inc.                                           |      | CSE                                                                                                        |                      | CFO      |                   | February
    2021 |                | Present
|                                                                                                                                                                                        | A2Z
    Smart Technologies Corp. |                                                                     | TSXV |                                                                                                            | Director             |          | May
    2020      |                   | Present       
|                                                                                                                                                                                        | BioHarvest
    Sciences Inc.     |                                                                     | CSE  |                                                                                                            | CFO                  |          | November
    2018 |                   | Present       
|                                                                                                                                                                                        | Cyntar
    Ventures Inc.         |                                                                     | CSE  |                                                                                                            | Director
    and CFO |          | December
    2019 |                   | Present       
|                                                                                                                                                                                        | Eco
    (Atlantic) Oil & Gas Ltd |                                                                     | TSXV |                                                                                                            | CFO                  |          | November
    2011 |                   | Present       
|                                                                                                                                                                                        | Osino
    Resources Corp.        |                                                                     | TSXV |                                                                                                            | CFO                  |          | June
    2018     |                   | March
    2021
|                                                                                                                                                                                        | Empower
    Clinics Inc.         |                                                                     | CSE  |                                                                                                            | CFO                  |          | August
    2013   |                   | May
    2018  
|Shlomo
                                                                                Menachem
                                                                                Pashker |                                  | None                                                                |      |                                                                                                            |                      |          |                   |                   |                |        



Leadership
of Independent Directors



The
Board has determined, at this time, that there is not a need for a lead director that is independent. The Board took into consideration
the operations of the Company and the size of the Board. The fact that there are only three independent directors allows them to work
collaboratively to ensure proper independent leadership and oversight of the Company is achieved.



Board
Meetings



For
the year ended December 31, 2021, the attendance of directors at Board meetings was as follows:



|Director                       |  | Number
    of meetings |  | Attendance
|------------------------------ |  | ---------------------- |  | ----------
|Bentsur
    Joseph             |  | 4                      |  | 100%      
|Alan
    Rootenberg            |  | 4                      |  | 100%      
|Yonatan
    de Jongh           |  | 4                      |  | 100%      
|Shlomo
    Menachem Pashker(1) |  | Nil                    |  | 0%        



Note:



(1)
Mr. Pashker was appointed to the Board on March 28, 2022.



B-2







Board
Mandate



The
Board has not adopted formal policies and procedures for the delineation of its role and responsibilities. The Company’s Nominating
and Corporate Governance committee is, inter alia, responsible for administering and overseeing all aspects of the Company’s corporate
governance functions on behalf of the Board, and making recommendations to the Board regarding corporate governance issues and related
policies for risk assessment and risk management.



Position
Descriptions



The
Board has not adopted formal policies and procedures for the chair and chair of each committee. The Company’s Nominating and Corporate
Governance committee is, inter alia, responsible for administering and overseeing all aspects of the Company’s corporate governance
functions on behalf of the Board; and making recommendations to the Board regarding corporate governance issues and related policies
for risk assessment and risk management.



Orientation
and Continuing Education



The
Board does not have a formal process for the orientation of new Board members. Orientation is done on an informal basis. New Board members
are provided with such information as is considered necessary to ensure that they are familiar with the Company’s business and
understand the responsibilities of the Board.



The
Board does not have a formal program for the continuing education of its directors. The Company expects its directors to pursue such
continuing education opportunities as may be required to ensure that they maintain the skill and knowledge necessary to fulfill their
duties as members of the Board. Directors can consult with the Company’s professional advisors regarding their duties and responsibilities,
as well as recent developments relevant to the Company and the Board.



Ethical
Business Conduct



The
Board does not currently take any formal steps to encourage and promote a culture of ethics and business conduct. Directors and Officers
of the Company are encouraged to conduct themselves and the business of the Company with the utmost honesty and integrity. Directors
are also encouraged to consult with the Company’s professional advisors with respect to any issues related to ethical business
conduct.



If
a director has a material interest in any transaction or agreement that the Corporation proposes to enter into, such director is expected
to disclose such interest to the Board in compliance with the applicable laws, rules and policies which govern conflicts of interest
in connection with such transaction or agreement. Further, any director who has a material interest in any proposed transaction or agreement
will be excluded from the portion of the Board meeting concerning such matters and will be further precluded from voting on such matters.



B-3







Nomination
of Directors



The
identification of potential candidates for nomination as directors of the Company is carried out by the Nominating and Corporate Governance
Committee which provides recommendations to the Board. Additionally, all directors, are encouraged to participate in the identification
and recruitment of new directors. Potential candidates are primarily identified through referrals by business contacts.



Compensation



The
compensation of directors and the CEO and CFO is determined based on the recommendations of the Compensation Committee to the Board.
Such compensation is determined after consideration of various relevant factors, including the expected nature and quantity of duties
and responsibilities, past performance, comparison with compensation paid by other issuers of comparable size and nature, and the availability
of financial resources.



Other
Board Committees



The
Board does not have any standing committees other than the Audit Committee, Nominating Committee and Compensation Committee.



Assessments



The
Board as a whole assesses its performance, the performance of Board committees and the contribution of individual directors on an ongoing
basis.



The
Company allows any member of the Board to engage an outside advisor at the expense of the Company in appropriate circumstances. The engagement
of an outside advisor is subject to the approval by the Board as a whole.



Director
Term Limits and Other Mechanisms of Board Renewal



The
Company has not set director term limits, nor provided any formal mechanism of Board renewal. However, on a technical level, each director’s
term ends no later than the next annual Shareholders’ meeting. The Company considers that a fixed term of office or a formal mechanism
for Board renewal is not an efficient or appropriate manner to guarantee Board performance. In selecting candidates for composition of
the Board, the Company favours the intrinsic qualities sought after in a director (whether male or female), such as management experience,
leadership, career success, understanding of financial questions, knowledge of the Company, its business and industry, reputation, and
complementarities with the other members of the Board and the management.



Policies
Regarding the Representation of Women on the Board and Consideration of the Representation of Women in the Director and Officer Identification
and Selection Process



The
Company has not yet adopted a written policy relating to the identification and nomination of women directors and executive officer positions
beyond the Nominating and Corporate governance Committee’s objective to nominate the most suited candidate regardless of gender.



Consideration
Given to the Representation of Women in Executive Officer Appointments



The
Company has not adopted a specific number or percentage of women to join its Board.



Consideration
Given to the Representation of Women in Board and Executive Officer Appointments



During
the fiscal year ended December 31, 2021, the Company had one woman on the Board, representing 25% of the directors, and no women in any
executive officer positions.



B-4