# EDGAR Filing Document

**Accession Number:** 0001725882
**File Stem:** 0001213900-25-078504
**Filing Date:** 2025-8
**Character Count:** 130622
**Document Hash:** a0bbb7d50e764f0b895ea46f63fce43f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-078504.hdr.sgml**: 20250819

**ACCESSION NUMBER**: 0001213900-25-078504

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 6

**CONFORMED PERIOD OF REPORT**: 20250819

**FILED AS OF DATE**: 20250819

**DATE AS OF CHANGE**: 20250819

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INX Ltd
- **CENTRAL INDEX KEY:** 0001725882
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 000000000
- **STATE OF INCORPORATION:** J1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56429
- **FILM NUMBER:** 251231948

**BUSINESS ADDRESS:**
- **STREET 1:** 57/63 LINE WALL ROAD
- **CITY:** GIBRALTAR
- **STATE:** J1
- **ZIP:** GX111AA
- **BUSINESS PHONE:** 350 200 20086

**MAIL ADDRESS:**
- **STREET 1:** 57/63 LINE WALL ROAD
- **CITY:** GIBRALTAR
- **STATE:** J1
- **ZIP:** GX111AA

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16

Under the Securities Exchange Act of 1934

For the Month of August 2025

333-233363

(Commission File Number)

**INX LIMITED**

(Exact name of Registrant as specified in its charter)

**Unit 1.02, 1st Floor**

**6 Bayside Road**

**Gibraltar, GX11 1AA**

**Tel: +350 200 79000**

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

**Exhibit Index**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Unaudited Condensed Consolidated Interim Financial Statements for the period ended June 30, 2025](ea025365701ex99-1_inx.htm) |
| 99.2 | [Management's Discussion and Analysis of Financial Condition and Results of Operations for the three and six months ended June 30, 2025](ea025365701ex99-2_inx.htm) |
| 99.3 | [Press Release dated August 14, 2025: The INX Digital Company Reports Second Quarter 2025 Update and Financial Results](ea025365701ex99-3_inx.htm) |

---

**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
|  | **INX Limited** | **INX Limited** |
| Date: August 19, 2025 | By: | /s/ Shy Datika |
|  |  | Shy Datika |
|  |  | President and CEO |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ex99-1_001.jpg)

**THE INX DIGITAL COMPANY INC.**

**CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**

**AS OF JUNE 30, 2025**

**U.S. DOLLARS IN THOUSANDS**

**UNAUDITED**

**INDEX**

---

| | |
|:---|:---|
|  | **Page** |
| [**Condensed Consolidated Interim Statements of Financial Position**](#f_001) | **F-2** |
| [**Condensed Consolidated Interim Statements of Comprehensive Income (Loss)**](#f_002) | **F-3 – F-4** |
| [**Condensed Consolidated Interim Statements of Changes in Equity**](#f_003) | **F-5** |
| [**Condensed Consolidated Interim Statements of Cash Flows**](#f_004) | **F-6 – F-7** |
| [**Notes to Condensed Consolidated Interim Financial Statements**](#f_005) | **F-8 – F-23** |

---

- - - - - - - - - - -

**THE INX DIGITAL COMPANY INC.**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION**

**U.S. Dollars in thousands – unaudited**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Note** | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Assets** |  |  |  |
| **Current assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | $3924 | $10045 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents held in Reserve Fund | 4 | 16358 | 14209 |
| &nbsp;&nbsp;&nbsp;Short-term investments held in Reserve Fund | 4 | 15862 | 11802 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 5 | 7483 | 2922 |
| &nbsp;&nbsp;&nbsp;Trade receivables |  | 27 | 19 |
| &nbsp;&nbsp;&nbsp;Customer funds | 7 | 5234 | 6555 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other receivables |  | 919 | 1851 |
| &nbsp;&nbsp;&nbsp;Receivables for sale of subsidiary |  | 842 | 5265 |
| **Total current assets** |  | 50649 | 52668 |
| **Non-current assets**: |  |  |  |
| &nbsp;&nbsp;&nbsp;Long-term investments held in Reserve Fund | 4 | 2105 | 8314 |
| &nbsp;&nbsp;&nbsp;Long-term investments | 5 | 2363 | 2363 |
| &nbsp;&nbsp;&nbsp;Digital assets | 6 | 868 | 985 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net |  | 153 | 185 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net |  | 1483 | 1483 |
| &nbsp;&nbsp;&nbsp;Goodwill |  | 1017 | 1017 |
| &nbsp;&nbsp;&nbsp;Right-of-use-assets, net |  | 114 | 223 |
| **Total non-current assets** |  | 8103 | 14570 |
| **Total Assets** |  | $**58752** | $**67238** |
| **Liabilities and Equity** |  |  |  |
| **Current liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses |  | $1415 | $1914 |
| &nbsp;&nbsp;&nbsp;Funds due to customers | 7 | 5234 | 6555 |
| &nbsp;&nbsp;&nbsp;Lease liability |  | 131 | 228 |
| &nbsp;&nbsp;&nbsp;INX Token liability | 8 | 40920 | 25833 |
| &nbsp;&nbsp;&nbsp;INX Token warrant liability | 9 | 1016 | 660 |
| **Total current liabilities** |  | 48716 | 35190 |
| **Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;Share capital and share premium |  | 65879 | 65469 |
| &nbsp;&nbsp;&nbsp;Contribution to equity by controlling shareholder |  | 582 | 582 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  | (310) | 481 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit |  | (56115) | (34484) |
| **Total Equity** | 11 | 10036 | 32048 |
| **Total Liabilities and Equity** |  | $**58752** | $**67238** |

---

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

**THE INX DIGITAL COMPANY INC.**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

**U.S. Dollars in thousands (except share and per share data) - unaudited**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Three months ended <br> June 30,** | **Three months ended <br> June 30,** | **Six months ended <br> June 30,** | **Six months ended <br> June 30,** |
|  | <br>**Note** | **2025** | **2024** | **2025** | **2024** |
| **Revenue:** |  |  |  |  |  |
| Trading and transaction fees | 14 | $52 | $120 | $104 | $210 |
| Income from service revenue | 10 | 189 | 241 | 414 | 437 |
| Cost of services |  | (159) | (222) | (373) | (418) |
| Loss on service revenue |  | 30 | 19 | 41 | 19 |
| Equity loss on investment in associate |  | (143) | (137) | (291) | (162) |
| **Total income (loss)** |  | (61) | 2 | (146) | 67 |
| **Operating income (expenses):** |  |  |  |  |  |
| Research and development |  | (799) | (788) | (1486) | (1540) |
| Sales and marketing |  | (755) | (760) | (1552) | (1436) |
| General and administrative |  | (2201) | (2331) | (4917) | (3779) |
| Change in fair value of INX Token warrant liability | 9 | (378) | 34 | (229) | 268 |
| **Total operating expenses** |  | (4133) | (3845) | (8184) | (6487) |
| **Loss from operations** |  | **(4194)** | **(3843)** | **(8330)** | **(6420)** |
| Unrealized gain (loss) on INX Tokens issued | 8 | (13575) | (2762) | (14934) | 5315 |
| Finance income |  | 1386 | 570 | 1872 | 1135 |
| Financial expenses |  | (51) | (80) | (234) | (155) |
| **Loss before tax** |  | (16434) | (6115) | (21626) | (125) |
| Tax income (expenses) |  | (5) | (4) | (5) | 5 |
| **Loss from continuing operations** |  | (16439) | (6119) | (21631) | (120) |
| Income from discontinued operations |  | - | 307 | - | 152 |
| **Net income (loss)** |  | **(16439)** | **(5812)** | **(21631)** | **32** |
| Amounts that will be or that have been reclassified to profit or loss when specific conditions are met: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized (gain) loss on securities at fair value through other comprehensive income (loss) reclassification adjustment into net income (loss) |  | (587) |  | (587) |  |
| &nbsp;&nbsp;&nbsp;Unrealized gain on investments at fair value through other comprehensive income (loss) |  | 28 | 138 | (6) | 342 |
| &nbsp;&nbsp;&nbsp;Adjustments arising from translating financial statements from functional currency to presentation currency |  | (163) | (66) | (198) | (78) |
| **Total other comprehensive income** |  | (722) | 72 | (791) | 264 |
| **Total comprehensive income (loss)** |  | **(17161)** | **(5740)** | **(22422)** | **296** |

---

**THE INX DIGITAL COMPANY INC.**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

**U.S. Dollars in thousands (except share and per share data) - unaudited**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **Three months ended <br> June 30,** | **Three months ended <br> June 30,** | **Six months Ended <br> June 30,** | **Six months Ended <br> June 30,** |
|  | <br>**Note** | **2025** | **2024** | **2025** | **2024** |
| Earnings (loss) per share, basic and diluted | 13 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From continuing operations |  | (0.07) | (0.02) | (0.09) | 0.00 |
| &nbsp;&nbsp;&nbsp;From discontinued operations |  | 0.00 | 0.00 | 0.00 | 0.00 |
|  |  | (0.07) | (0.02) | (0.09) | 0.00 |
| &nbsp;&nbsp;&nbsp;Weighted average number of shares outstanding, basic |  | 238042653 | 235612471 | 237805378 | 235141306 |
| &nbsp;&nbsp;&nbsp;Weighted average number of shares outstanding, diluted |  | 238042653 | 235612471 | 237805378 | 237464050 |

---

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

**THE INX DIGITAL COMPANY INC.**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY**

**U.S. Dollars in thousands (except share and per share data) - unaudited**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Note** | **Common <br> shares** | **Share <br> premium** | **Contribution <br> to equity by <br> controlling <br> shareholder** | **Accumulated <br> other <br> comprehensive <br> income (loss)** | **Accumulated <br> deficit** | **Total <br> equity** |
| Balance as of December 31, 2023 | 11 | 234025894 | $64120 | $582 | $(92) | $(53040) | $11570 |
| Net income |  |  |  |  |  | 32 | 32 |
| Unrealized gain on investments |  |  |  |  | 342 |  | 342 |
| Share based compensation | 12 |  | 584 |  |  |  | 584 |
| Issuance of shares from exercise of share options and vesting of restricted share units | 12 | 1780695 | 130 |  |  |  | 130 |
| Repurchasing of shares |  | (131500) | (12) |  |  |  | (12) |
| Foreign currency translation |  | - | - | - | (78) | - | (78) |
| Balance as of June 30, 2024 |  | 235675089 | $64822 | $582 | $172 | $(53008) | $12568 |
| Balance as of December 31, 2024 | 11 | 236794077 | $65469 | $582 | $481 | $(34484) | $32048 |
| Loss |  |  |  |  |  | (21631) | (21631) |
| Realized (gain) loss on securities at fair value through other comprehensive income (loss) |  |  |  |  | (587) |  | (587) |
| Unrealized loss on investments |  |  |  |  | (6) |  | (6) |
| Share based compensation | 12 |  | 410 |  |  |  | 410 |
| Issuance of shares from exercise of share options and vesting of restricted share units | 12 | 1388649 |  |  |  |  |  |
| Foreign currency translation |  | - | - | - | (198) | - | (198) |
| Balance as of June 30, 2025 |  | 238182726 | $65879 | $582 | $(310) | $(56115) | $10036 |

---

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

**THE INX DIGITAL COMPANY INC.**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS**

**U.S. Dollars in thousands – unaudited**

---

| | | |
|:---|:---|:---|
|  | **Six months ended <br> June 30** | **Six months ended <br> June 30** |
|  | **2025** | **2024** |
| **<u>Net cash flows from operating activities:</u>** |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) for the period | $(21631) | $32 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based payments | 410 | 584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on investment in associate | 291 | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial expenses, net | (1473) | (893) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (tax benefit) | 5 | (36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation of equipment and right-of-use-assets | 165 | 186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets |  | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in accrued interest and amortization of premium (discount) on investments | 56 | (187) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INX Token-based compensation | 509 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss (gain) on INX Tokens issued, net | 14934 | (5315) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on digital assets | 103 | 15 |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in trade receivables | (8) | (181) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in prepaid expenses and other receivables | 443 | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accounts payable and accrued expenses | (490) | (558) |
| &nbsp;&nbsp;&nbsp;Cash paid and received during the year for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest received, net | 900 | 943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes paid, net | - | (19) |
| **Net cash used in operating activities** | $**(5786)** | $**(5199)** |
| **<u>Net cash flows from investing activities:</u>** |  |  |
| &nbsp;&nbsp;&nbsp;Decrease in receivables for sale of subsidiary | 4423 |  |
| &nbsp;&nbsp;&nbsp;Proceeds on sublease |  | 91 |
| &nbsp;&nbsp;&nbsp;Purchase of equipment | (13) |  |
| &nbsp;&nbsp;&nbsp;Purchases of investments | (25378) | (11926) |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities of investments | 22904 | 15712 |
| **Net cash provided by investing activities** | $**1936** | $**3877** |
| **<u>Net cash flows from financing activities:</u>** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of share options |  | 130 |
| &nbsp;&nbsp;&nbsp;Repurchase of common shares |  | (12) |
| &nbsp;&nbsp;&nbsp;Repayment of finance lease liabilities | (122) | (279) |
| **Net cash used in financing activities** | $**(122)** | $**(161)** |

---

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

**THE INX DIGITAL COMPANY INC.**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS**

**U.S. Dollars in thousands – unaudited**

---

| | | |
|:---|:---|:---|
|  | **Six months ended <br> June 30** | **Six months ended <br> June 30** |
|  | **2025** | **2024** |
| Change in cash and cash equivalents | (3972) | (1483) |
| Cash and cash equivalents at beginning of period | 24254 | 29428 |
| **Cash and cash equivalents at end of period (\*)** | $**20282** | $**27945** |

---

(\*) At June 30, 2025 and 2024, cash and cash equivalents include the following:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Cash and cash equivalents | $3924 | $10711 |
| Cash and cash equivalents held in Reserve Fund | 16358 | 17234 |
| Total cash and cash equivalents | $**20282** | $**27945** |

---

<u>Supplemental disclosure of cash flow information and non-cash investing and financing activities:</u>

---

| | | |
|:---|:---|:---|
|  | **Six months ended <br> June 30** | **Six months ended <br> June 30** |
|  | **2025** | **2024** |
| Digital assets payments to service providers | $(14) | $(72) |

---

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

**THE INX DIGITAL COMPANY INC**

**NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 1: NATURE OF OPERATIONS**

The INX Digital Company, Inc. (the "Company" or "TINXD"), registered at 550 Burrard Street, Suite 2900, Vancouver, BC V6C 0A3, Canada, was incorporated under the provincial Business Corporations Act (British Columbia) on August 22, 2018.

The condensed consolidated interim financial statements of the Company as of and for the period ended June 30, 2025, were authorized for issuance in accordance with a resolution of the board of directors on August 14, 2025.

**Acquisition of the Company**

 ****

On April 3, 2025, the Company entered into an arrangement agreement (the "Arrangement Agreement") with OpenDeal Inc. (d/b/a Republic) ("Republic") in connection with a transaction (the "Arrangement") that values the Company's equity at up to $60,000 (assuming the Rollover Share Limit is achieved as defined in the Arrangement Agreement). The agreement was subsequently amended on May 6, 2025.

Under the terms of the Arrangement Agreement, on closing, Republic Strategic Acquisition Co LLC (the "Purchaser"), a wholly-owned subsidiary of Republic, will acquire all of the issued and outstanding common shares of the Company (the "Shares"), other than those Shares already owned by Republic, for an aggregate amount of up to $54,800 as follows:

● Up to $18,800 in consideration will be provided to the Rollover Shareholders (as defined in the Arrangement Agreement).

● Fixed consideration of $36,000 will be paid by Republic to the non-Rollover Shareholders, of which:

○ $20,000 will be paid in cash upon completion of the Arrangement

○ $16,000 will be paid 18 months following the Escrow Deposit Date pursuant to the terms of a contingent value rights agreement (the "CVR Agreement")

Several key milestones have been achieved in the Arrangement process:

● The Company's shareholders approved the Arrangement at the annual general and special meeting held on June 19, 2025.

● The Company obtained a final order of the Supreme Court of British Columbia on June 25, 2025 .

● FINRA approval for the change of ownership was received on July 8, 2025

● Republic has deposited US$10,000 in escrow with Odyssey Trust Company as the escrow agent, pursuant to the escrow agreement entered by the Company, Republic, the Purchaser and Odyssey Trust Company

The Arrangement is expected to close within eight months following the date of the Arrangement Agreement, subject to the satisfaction of certain customary closing conditions.

As part of the transfer of ownership, INX's cash reserve fund, which as of June 30, 2025, totals approximately US$34.3 million, will be fully distributed to INX Token holders after closing of the transaction.

**THE INX DIGITAL COMPANY INC**

**NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 1: NATURE OF OPERATIONS (Cont.)**

**Organizational Structure**

 ****

During the reporting period, the following changes were made to the organizational structure:

● INX Global EU was incorporated under Cyprus law to secure Cyprus regulatory licensing for digital assets.

For further information about the organizational structure, refer to Note 1 to the financial statements as of December 31, 2024.

**Purchase Transaction**

 ****

On January 10, 2022, the Company completed the Transaction with INX Limited ("INX"), whereby INX became a wholly owned subsidiary of the Company (the "Transaction"). The Transaction resulted in a reverse takeover transaction whereby pre-transaction shareholders of INX became majority shareholders of the Company. The Company continues the business of INX.

On December 31, 2021, the Company received a conditional approval from the Neo Exchange Inc. ("Neo Exchange") to list the combined entity (the "Resulting Issuer") shares. On January 24, 2022, the Company's shares started to trade on the NEO Exchange (operating as Cboe Canada) under the symbol INXD.

Also, on July 28, 2022, the Company received approval from The OTCQB Venture Market operated by OTC Markets Group Inc. to commence trading of its common shares under the symbol INXDF, with INX's shares eligible to be cleared and settled by the Depository Trust Company.

**Discontinued operation**

On August 29, 2024 ("the sale date"), INX entered into a share sale agreement to sell its holdings in I.L.S. Brokers Ltd., a Company incorporated under the laws of the State of Israel ("ILSB"). The transaction was completed on November 29, 2024. The consideration was $4,450 plus ILSB's equity value as of October 31, 2024. A cash amount equal to 15% of the purchase price is being held in escrow until November 29, 2025, to secure the indemnification and other payment obligations of the Company. For further details see note 3.

**Nature of Operations**

 ****

The Company, through its subsidiaries, primarily focuses on providing regulated infrastructure for security token offerings and on-chain Real World Assets (RWAs). The Company operates INX.One, a comprehensive platform that serves as a single point of entry for both primary issuance of regulated security tokens and secondary market trading of these tokens, along with digital assets (cryptocurrencies) trading capabilities. This integrated approach allows the Company to offer a complete solution for tokenization and regulated trading of blockchain-based securities. The Company charges fees at a transaction level. The transaction fee is calculated based on volume and the value of the transaction. The transaction fee is collected from customers at the time the transaction is executed.

The Company operates in the digital asset segment, which includes the development and operation of integrated, regulated solutions for trading of blockchain assets, and providing services for products utilizing blockchain technology.

Until November 29, 2024, the Company also operated in the brokerage segment through ILSB, which facilitated financial transactions between financial institutions and offered a full range of brokerage services to several leading banking The segment's results until the sale date are presented as net income from discontinued operation in the statement of comprehensive income. For further information see note 3.

**THE INX DIGITAL COMPANY INC**

**NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 1: NATURE OF OPERATIONS (Cont.)**

**INX Token**

As part of the Company's blockchain ecosystem, INX created the INX Token (the "INX Token"), and on August 20, 2020, the U.S Securities and Exchange Commission (the "SEC") acknowledged the effectiveness of the F-1 Registration Statement that was filed by INX with the SEC and declared the effectiveness of the initial public offering of INX Tokens ("The INX Token Offering" or "the Offering") pursuant to which INX offered up to 130 million INX Tokens at a price of $0.90 per INX Token.

The INX Token was offered to the public on August 24, 2020, and closed on April 22, 2021, when the Offering was completed.

In July 2021, INX listed the INX Token for trading on the trading platform for "digital securities," i.e., digital assets that constitute securities under the applicable law, operated through INX's subsidiary, INX Securities, LLC (formerly the "INX Securities Trading Platform", rebranded as INX.One in 2022).

INX has not allocated for issuance and does not intend to issue 35 million of the 200 million INX Tokens that have been created. These tokens may be used to fund acquisitions, address regulatory requirements or fund the operations of INX if the Board of Directors of INX determines that INX has net cash balances sufficient to fund less than nine months of its operations. INX intends to restrict issuances of the reserved INX Tokens to these or similar extraordinary situations to limit dilution to INX Token holders. In addition, INX maintains 29.4 million INX Tokens in its treasury. As June 30, 2025 the Company held approximately 61.7 million INX Tokens in aggregate.

Following an amendment to the INX Token rights which was approved by the Board of Directors of the Company on May 17, 2019 (the "Token Rights Amendment"), the holders of INX Tokens (other than INX) are entitled to receive a pro rata distribution of 40% of INX's net cash flow from operating activities, excluding any cash proceeds from an initial sale by INX of an INX Token (the "Adjusted Operating Cash Flow"). The distribution is based on INX's cumulative Adjusted Operating Cash Flow, net of cash flows which have already formed a basis for a prior distribution, calculated as of December 31 of each year. The distribution is to be paid to parties (other than INX) holding INX Tokens as of June 30 of the following year on April 30th, commencing with the first distribution to be paid, if at all. As of June 30, 2025, the INX cumulative adjusted operating cash flow activity was negative.

Holders of INX Tokens are also entitled, at a minimum, to a 10% discount on the payment of transaction fees on the INX.One Trading Platform.

**Capital management Capital management**

 ****

These consolidated financial statements have been prepared on a going concern basis, which contemplates that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. As of June 30, 2025, the Company had an accumulated deficit of $56,115. During the six months ended June 30, 2025, the Company incurred an operating loss of $8,330 and negative cash flow from operating activities of $5,786 . Based on the Company's existing cash funds and the working capital in the amount of $10,633 as of June 30, 2025 (excluding assets held in the Reserve Fund and the INX Token liability), and management's projections of the operating results for the next twelve months, management concluded that the Company has sufficient funds to continue its operations and meet its obligations for a period of at least twelve months from the date the financial statements were authorized for issuance.

**NOTE 2: NEW ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS**

These financial statements have been prepared in a condensed format as of June 30, 2025, and for the sixe months then ended ("interim consolidated financial statements"). These financial statements should be read in conjunction with the Company's annual consolidated financial statements as of December 31, 2024, and for the year then ended, and accompanying notes ("annual consolidated financial statements").

The significant accounting policies applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the annual consolidated financial statements unless otherwise stated.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 2: NEW ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS (Cont.)**

Basis of presentation of the financial statements:

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 – Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB").

Use of estimates and judgments

The preparation of the condensed consolidated interim financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from those estimates.

**NOTE 3: DISCONTINUED OPERATION**

**a.** **I.L.S Brokers Ltd.** 

On August 27, 2024, the Company's Board of Directors approved the sale of ILSB, the Company's brokerage segment incorporated in Israel. On August 29, 2024 ("Sale Date"), the Company entered into a share sale agreement with the following key terms:

● Consideration: $4,450 plus ILSB's equity value at month-end preceding closing. Total consideration at closing was $5,265

● A cash amount equal to 15% of the purchase price will be held back for a period of 12 months following the closing date to secure the indemnification and other payment obligations of the Company.

● Closing deadline: Within 3 months from Sale Date (November 29, 2024)

In accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations", revenues and expenses less income taxes that are attributable to the subsidiary are presented in the statement of comprehensive income, for all reported periods in the " Net income from discontinued operations " section.

As of December 31, 2024, the consideration is recorded as receivable from sale of subsidiary. The cash consideration of $4,423 was received during January 2025, while the 15% holdback will be received after 12 months from the closing date, on November 29, 2025.

**b.** Composition of the discontinued operation:

---

| | | |
|:---|:---|:---|
|  | **Three months <br> ended<br> June 30,**<br>**2024** | **Six months <br> ended<br> June 30,**<br>**2024** |
| Revenue from brokerage fees | $1125 | 2567 |
| General and administrative | (8710) | (2367) |
| **Loss from operations** | 254 | 200 |
| Financial expenses, net | (80) | (79) |
| **Loss before tax from discontinued operations** | 174 | 121 |
| Tax (expenses) income | 1332 | 31 |
| **Income from discontinued operations** | $307 | 152 |

---

**c.** Cashflow deriving from discontinued
operation is as follow:

---

| | |
|:---|:---|
|  | **Six months <br> ended<br> June 30,**<br>**2024** |
| Net cash used in operating activities | $(651) |
| Net cash used in investing activities | $- |
| Net cash used in financing activities | $(160) |
| Net Cashflow | $(811) |

---

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 4: RESERVE FUND**

In connection with the INX Token Offering, INX committed to reserve 75% of the gross proceeds less payments to underwriters in excess of $25,000 as a "Reserve Fund". This fund is available to cover customer and INX's losses, if any, that result from cybersecurity breaches, theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses. As of December 31, 2022, INX had segregated $36,023 as the Reserve Fund.

The following events have impact on the Reserve Fund:

In December 2023, a cyber-attack on third-party service provider computer system resulted a loss of $1,618 to one of the Company׳s subsidiaries. The Company immediately addressed the security vulnerability and implemented additional security measures designed to prevent such cyber-attack incidents in the future. The Reserve Fund was used to cover this loss, reducing its balance to $34,405 as of December 31, 2023.

In April 2024, a human error in the Company's trading platform execution led to a loss of $80. The Company promptly updated work procedures to prevent similar errors. This loss was also covered by the Reserve Fund, further reducing its balance to $34,325 as of December 31, 2024.

On July 13, 2021, the INX's Board of Directors approved the Investment Policy of the Reserve Fund, which was amended on August 11, 2022. The Reserve Fund shall be invested as follows: minimum 15% in cash and bank deposits, up to 70% in U.S Treasury securities, up to 20% shall be invested in exchange traded funds and up to 50% in corporate bonds and other instruments with lowest investment grade rating of BBB.

The Reserve Fund is comprised of cash and cash equivalents, U.S. Treasury securities and corporate bonds held at banks and brokerage firms as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31, <br> 2024** |
| Cash and cash equivalents | 16358 | $14209 |
| Financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;Short-term investments (\*) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury securities | 805 | 2954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | 15057 | 8848 |
| &nbsp;&nbsp;&nbsp;Total short-term investments | 15862 | 11802 |
| &nbsp;&nbsp;&nbsp;Long-term investments (\*) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds and loans (principally) - marketable investments | 2105 | 8314 |
| &nbsp;&nbsp;&nbsp;Total long-term investments | 2105 | 8314 |
| Total Reserve Fund | 34325 | $34325 |

---

(\*) Classified as level 1 inputs in the fair value hierarchy.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 5: INVESTMENTS**

On June 30, 2025 and December 31, 2024, the Company held the following investments:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31, <br> 2024** |
| Financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;Short-term investments (\*) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | 7483 | 2922 |
| &nbsp;&nbsp;&nbsp;Total short-term investments | 7483 | 2922 |
| &nbsp;&nbsp;&nbsp;Long-term investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in private equity (\*\*) | 2363 | 2363 |
| &nbsp;&nbsp;&nbsp;Total long-term investments | 2363 | 2363 |
| Total investments | $9846 | $5285 |

---

(\*) Classified as level 1 inputs in the fair value hierarchy.

(\*\*) Classified as level 3 in the fair value hierarch

**Investments in Private Equity**

 ****

Investments in private equity are not traded in public markets and include Company's holdings in private companies under share purchase agreements and a simple agreement for future equity (SAFE), which entitle the Company to receive common stock of the issuing companies at a future date.

As of June 30, 2025, INX holds investments in the following private companies:

● Under the share purchase agreement dated March 20, 2021, the Company made an investment of $150 in a private company based in the United Kingdom, which entitles it to receive 95,411 ordinary shares at a price of $1.57 per share.

● On September 9, 2021, the Company made an investment of $250 in a private company based in Gibraltar under a SAFE. The SAFE entitles the Company to receive the most senior class of shares issued by the company upon the completion of the qualified or non-qualified equity financing, as defined in the SAFE, at the SAFE conversion price.

● During 2023, INX also invested $90 in a private company based in the United States, in return for preferred shares to be issued by the private company at the time of the closing in the amount of the investment, plus a warrant to purchase newly issued by the private company security tokens valued at $300 as of the date of the primary issuance at $0.01 per token. The preferred shares are convertible to security tokens.

● On June 15, 2023, the Company entered into the collaboration and the subscription agreements with OpenDeal Inc. (dba Republic) ("Republic"). Under the terms of the collaboration agreement, INX agreed to offer tokenized assets services to Republic and its portfolio companies and will share net revenues generated from such services with Republic. Also, as part of the subscription agreement, Republic, in a private sale, acquired 22,048,406 common shares of the Company, which represented 9.5 percent of the voting interest in the Company as of June 13, 2023, for a total consideration of $5,250. On August 18, 2023, the consideration for the issuance of common shares was paid in cash of $2,625 and in 59,152 shares of Series B Preferred Stock of Republic.

The 59,152 of Series B Preferred Stock issued by Republic to INX ("Investment in Republic") represents 0.2494 percent of the issued and outstanding share capital of Republic on a fully diluted basis as of closing date and entitles the Company to receive anti-dilution protection, preference in distribution of dividends and other proceeds upon liquidation or deemed liquidation of Republic and other rights to which holders of preferred shares are entitled as set forth in Republic's Amended and Restated Certificate of Incorporation (the "<u>Republic COI</u>") and similar constitutional documents.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 5: INVESTMENTS (Cont.)**

The Series B Preferred Stock are convertible into common stock of Republic either voluntarily at any time prior to the liquidation or deemed liquidation event of Republic at the election of the Company, at the election of a requisite majority of Republic's shareholders (including a requisite majority of holders of Series B Preferred Stock) as set forth in the Republic COI or automatically upon an initial public offering of Republic's stock (subject to certain criteria specified in the Republic COI).

In the event that, at any time until the lapse of three years following the issuance of the Series B Preferred Stock to the Company, Republic shall issue any securities having rights or preferences superior to the shares issued to the Company, then, at the election of the Company and subject to the approval of the lead investor in transaction in which such superior shares are issued, the shares issued to the Company shall converted, for no additional consideration, into such number of shares of such superior class equal to the quotient of $2,625 and the price per share of such superior shares. As of June 30, 2025, and December 31, 2024, the fair value of the Investment in Republic is $1,873.

Investments in private equity are classified at Level 3 in the fair value hierarchy.

**Investment in Associate**

 ****

In June 2023, INX entered into a shareholders' and joint venture agreement ("SICPA Agreement"), whereby parties to the agreement have agreed to joint their expertise and collaborate to develop central bank digital currency solutions with the utilization of blockchain technology. Subsequently, for the purpose of executing joint objectives under the SICPA Agreement, the parties formed SICPA INX SA, subsequently renamed as NABATECH SA, ("Nabatech"), an entity organized under the laws of Switzerland. During the year ended December 31, 2023, the Company made the initial capitalization investment in Nabatech of $32 and owns 33 percent of the issued and outstanding share capital. In addition, INX entered into a service agreement with Nabatech to provide technological support and advisory services to the entity.

As of June 30, 2024, the Company recorded a loss on the investment in associate of $168 and a profit from foreign currency translation of $44. The Company's share in Nabatech's net loss is $579 in excess of the Company's investment amount. The excess amount is offset against the balance of prepaid expenses and other receivables.

As of June 30, 2025, the Company recorded a loss on the investment in associates of $291, and a loss from foreign currency translation of $198. The Company's share in Nabatech's net loss is $1,668 in excess of the Company's investment amount. The excess amount is offset against the balance of prepaid expenses and other receivables.

In addition, INX entered into a service agreement with Nabatech to provide technological support and advisory services to the entity.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 6: DIGITAL ASSETS**

The Company held the following digital assets as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
| **Coin Symbol** | **June 30,<br> 2025(\*)** | **December 31, <br> 2024(\*)** |
| BTC | $356 | $356 |
| USDC | 222 | 251 |
| ETH | 81 | 146 |
| AVAXC | 38 | 73 |
| USDT | 26 | 26 |
| LTC | 16 | 16 |
| ZEC | 3 | 3 |
| Other | 126 | 114 |
|  | $868 | $985 |

---

(\*) Digital assets are classified as Level 2 in the fair value hierarchy, based on quoted prices in the principal market at 12:00 UTC.

---

| | |
|:---|:---|
| (\*) | As of the beginning of 2024, following the cessation of operations of the Company's subsidiary, INX Solutions Ltd., the Company reclassified digital assets previously recorded as inventory to non-current intangible assets. These digital assets are subject to impairment testing at least annually or more frequently if there are indicators of potential impairment. |

---

An impairment loss is recognized when the carrying amount exceeds the fair value less cost of sale.

For the six months ended June 30, 2025 and 2024, the Company recorded an impairment charge of $103 and $15, respectively.

**NOT**E 7: CUSTOM**ER FUNDS**

As of June 30, 2025, and December 31, 2024, customer funds include cash balances of $1,248 and $1,851. and digital asset balances of $3,986 and $4,704, respectively, that are maintained in bank and custodial accounts and are held for the exclusive benefit of customers. The Company safeguards these assets, and might be subject to security risks of loss, theft or misuse. Accordingly, consistent with the SEC Staff Accounting Bulletin No. 121 guidance, the Company records the liability reflecting the obligation to safeguard digital assets held on behalf of its customers and the corresponding customer assets in the consolidated financial statements at fair value upon initial recognition and subsequently at each reporting period.

**NO**TE 8: INX TOK**EN LIABILITY**

The INX Token is a hybrid financial instrument and is accounted for as a financial liability. The number of INX Tokens that the Company has issued as of June 30, 2025, and December 31, 2024, or has an obligation to issue is as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Total number of INX Tokens | 136404320 | 135959320 |
| INX Token liability | $40920 | $25833 |

---

The Company's significant shareholder is Triple-V (1999) Ltd. ("Triple-V") wholly owned by Mr. Shy Datika, the CEO of the Company, who, as of June 30, 2025, on a combined basis, owns 5.5 percent of the outstanding INX Tokens.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 8: INX TOKEN LIABILITY (Cont.)**

During the six months ended on June 30, 2025, 445,000 warrants were exercised.

On September 19, 2024, the Board renewed its authorization from August 9, 2023, authorizing the management to repurchase INX Tokens (the "Repurchased Tokens") from their holders as the management deems required or desirable for the benefit of INX, provided that the aggregate purchase amount of Repurchased Tokens and Company's common shares repurchased through September 18, 2025, will not exceed $5,000. Such repurchase shall be subject to the provisions of any applicable laws and regulations, and to the advice of the Company's legal advisors.

The fair value of INX Tokens free of, or subject to lock-up agreement and the discount rates applied as of June 30, 2025, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Discount<br> rate** | **Number of INX <br> Tokens** | **Total fair<br> value** |
| Not subject to lock-up | 0% | 136304320 | $40892 |
| Subject to lock-up through October 7, 2025 | 6.66% | 100000 | 28 |
|  |  | 136404320 | 40920 |

---

The fair value of INX Tokens as of December 31, 2024, is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of INX <br> Tokens** | **Total fair<br> value** |
| Not subject to lock-up | 135959320 | $25833 |

---

The fair value per INX Token as of June 30, 2025, and December 31, 2024, for tokens that are not subject to lock-up agreement was $0.30 and $0.19 respectively, based on the closing market price. The level in the fair value hierarchy is level 1.

For INX Tokens which are subject to lock-up agreement, the Company used the Finnerty model to determine the discount rates applying for such INX Tokens during their lock-up agreements. Significant inputs and assumptions are volatility and the period under the lock up, as follows:

---

| | |
|:---|:---|
|  | **June 30,<br> 2025** |
| Expected term (years) | 0.33 |
| Expected volatility | 55.80% |

---

For the six months ended June 30, 2025 and 2024, the re-measurement to fair value of the INX Token liability with respect to INX Tokens issued by the Company resulted in an unrealized gain (loss) of $(14,934) and $5,315, respectively, which was recorded in profit or loss.

For the three months ended June 30, 2025 and 2024, the re-measurement to fair value of the INX Token liability with respect to INX Tokens issued by the Company resulted in an unrealized loss of $13,575 and $2,762, respectively, which was recorded in profit or loss.

The changes in the fair value of the INX Token liability are attributable to changes in credit risk, excluding those changes in credit risk attributable to the embedded derivative, are immaterial for all reported periods and therefore no amounts have been included in other comprehensive income with respect of the credit risk.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 9: INX TOKEN WARRANT LIABILITY**

The Company grants restricted INX Token awards ("RTA") or INX Token warrants to directors, advisors, employees, or service providers as compensation. The warrant grantees have a right to purchase INX Tokens upon the completion of the term set forth in each warrant agreement. As of June 30, 2025, and December 31, 2024, directors, advisors, employees, and service providers held 8,950,366 and 8,116,958 restricted INX Tokens or INX Token warrants as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31, <br> 2024** |
| INX Token warrant liability: |  |  |
| &nbsp;&nbsp;&nbsp;Warrants granted to employees, advisors, and service providers | $1016 | $&nbsp;&nbsp;&nbsp;&nbsp;660 |

---

The liability related to INX Token warrants is presented at fair value based on the below inputs. The level in the fair value hierarchy is level 3.

The following table lists the inputs to the Black-Scholes pricing model used for the fair value measurement of INX Token warrants:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2025** | **December 31,<br> 2024** |
| Expected volatility of the token prices (%) | 105.42%-118.72% | 96.95%-129.38% |
| Risk-free interest rate (%) | 3.68%-4.41% | 4.16%-4.58% |
| Expected life of warrant (years) | 0.17-11.01 | 0.50-10.00 |
| Exercise price | $0.00-2.81 | $0.00-$2.81 |

---

The following table presents changes in the number of INX Token warrants and restricted INX Token awards during the six months ended June 30, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Number of<br> tokens** | **Weighted<br> average<br> exercise<br> price** | **Number of<br> tokens** | **Weighted<br> average<br> exercise<br> price** |
| INX Token warrants outstanding at beginning of the period | 8116958 | $0.24 | 5574292 | $0.33 |
| INX Token warrants cancelled during the period (\*) | (2368000) | 0.41 |  |  |
| INX Token warrants granted during the period (\*) | 3795056 | 0.18 | 3765500 | 0.11 |
| NX Token warrants forfeited during the period | (148648) | 0.23 | (558333) | 0.40 |
| INX Token warrants exercised (INX Tokens issued) and INX Tokens vested during the period | (445000) | - | (333667) | - |
| INX Token warrants outstanding at June 30 | 8950366 | $0.24 | 8447292 | $0.24 |
| INX Token warrants exercisable at June 30 | 2500542 | $0.15 | 2767000 | $0.24 |

---

---

| | |
|:---|:---|
| (\*) | On February 27, 2025, the Board of Directors approved to cancel 2,386,000 tokens warrant previously granted by INX Limited to some of the Company's employees and service providers. On the same date, the BOD approved to grant 1,599,076 token warrants, each of which, if exercised or vested in accordance with its terms, will entitle the holder to purchase INX Tokens pursuant to the Share and Token Ownership and Award Plan (2021) of INX Limited, with any unspecified terms and conditions to be governed by the Plan. |

---

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 9: INX TOKEN WARRANT LIABILITY (Cont.)**

The following expenses include token-based compensation for the six and three months ended June 30, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> June 30,** | **Three months ended<br> June 30,** | **Six months ended <br> June 30,** | **Six months ended <br> June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| **Operating expenses (income):** |  |  |  |  |
| Research and development | $31 | $14 | $51 | $37 |
| Sales and marketing | 10 | 21 | 19 | 22 |
| General and administrative | 122 | 151 | 210 | 239 |
| Fair value adjustment of INX Token warrant liability | 378 | (34) | 229 | (268) |
| Total token-based compensation | $541 | $152 | $509 | $30 |

---

**NOTE 10: RELATED PARTY TRANSACTIONS**

The Company's related parties include its subsidiaries, associates and service providers over which the Company exercises significant influence, and key management personnel. Key management personnel are those people who have the authority and responsibility for directing and controlling the activities of the Company, directly and indirectly. Key management personnel include officers, directors and companies controlled by officers and directors.

*Service Agreement with Nabatech*

 

Effective on January 1, 2023, as part of the joint venture SICPA Agreement, the Company entered into a service agreement with Nabatech, under which it provides technology support and advisory services to Nabatech, an entity formed for the development of central bank digital currency solutions with the utilization of blockchain technology, and in which the Company holds 33 percent ownership.

During the six months ended June 30, 2025, and 2024, the Company recognized service revenue of $384 and $437, respectively, and cost of services of $373 and $418, respectively, for providing services to Nabatech.

**NOTE 11: EQUITY**

Composition of share capital:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Authorized** | **Issued and<br> outstanding** | **Authorized** | **Issued and<br> outstanding** |
|  | **Number of shares** | **Number of shares** | **Number of shares** | **Number of shares** |
| Common shares with no par value | Unlimited | 238182726 | Unlimited | 235675089 |

---

On September 16, 2024, the Company's Board of Directors authorized a share repurchase program effective September 19, 2024. Under this program, management is authorized to repurchase the Company's common shares through September 18, 2025. The program establishes a combined maximum purchase amount of $5,000 for both common shares and INX Tokens, with the program terminating upon reaching this limit even if prior to the end date. All repurchases are subject to compliance with applicable laws and regulations and will be conducted in accordance with the normal course issuer bid requirements under Canadian securities laws. The timing, quantity, and price of repurchases will be determined by management based on market conditions, regulatory requirements, and other relevant factors.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 11: EQUITY (Cont.)**

During the six months that ended June 30, 2025, no shares have been repurchased.

During the six months that ended June 30, 2024, 131,500 shares have been repurchased.

Composition of other comprehensive income (loss) (OCI):

---

| | | | |
|:---|:---|:---|:---|
|  | **Reserve from<br> financial assets measured at fair value<br> through OCI** | **Loss on<br> foreign<br> currency<br> translation** | **Total** |
| Balance as of December 31, 2024 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;459 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22 | $481 |
| Realized gain on securities at fair value through other comprehensive income (loss) | (587) |  | (587) |
| Unrealized loss on available-for-sale securities | (6) |  | (6) |
| Foreign currency translation | - | (198) | (198) |
| Balance as of June 30, 2025 | $(134) | (176) | (310) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Reserve from<br> financial assets<br> measured at fair value through OCI** | **Loss on<br> foreign<br> currency<br> translation** | **Total** |
| Balance as of December 31, 2023 | $286 | $(378) | $(92) |
| Unrealized gain on available-for-sale securities | 342 |  | 342 |
| Foreign currency translation | - | (78) | (78) |
| Balance as June 30, 2024 | $628 | (456) | $172 |

---

**NOTE 12: SHARE-BASED PAYMENT**

During the six months ended June 30, 2025, and 2024, the activity relating to stock options was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Number of<br> Stock<br> Options** | **Weighted<br> average<br> exercise price** | **Number of<br> Stock<br> Options** | **Weighted<br> average<br> exercise price** |
| Balance as of January 1 | 31636487 | $0.45 | 27775946 | $0.46 |
| Granted | 100000 | 0.06 | 11142840 | 0.14 |
| Forfeited | (695000) | 0.10 | (6300064) | 0.42 |
| Exercised | (1388649) | 0.00 | (1780695) | 0.07 |
| Balance as of June 30 | 29652838 | 0.45 | 30838027 | $0.37 |
| Stock options exercisable at the end of period | 18949934 | 0.40 | 17515093 | $0.41 |

---

During the six months ended on June 30, 2025, and 2024, the Company recorded share-based compensation expense of $410 and $584, respectively, related to stock options granted.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 12: SHARE-BASED PAYMENT (Cont.)**

The table below summarizes assumptions that were used to estimate the fair value of the above options granted to employees using Black-Scholes option pricing model:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Expected terms (years) | 10 | 10 |
| Risk-free interest rate: | 4.5% | 3.236%-3.609 |
| Dividend yield: | 0% | 0% |
| Expected Volatility: | 160% | 87.44%-90.07 |
| Exercise price: | 0-0.15 CAD | 0.1-0.3CAD |

---

The average fair value of options granted during the six-month period ended June 30, 2025, as of the grant date, is $0.11 per option.

The average fair value of options granted during the six-month period ended June 30, 2024, as of the grant date, is $0.14 per option.

During the six months ended June 30, 2025, the Company granted or committed to granting the following share options and restricted stock units to employees, directors and service providers under the Plan:

On April 29, 2025, the Company granted to a service provider an option to purchase 50,000 common shares of the Compnay at the price equal to the fair value per share at the effective date of the grant at a proce of CAD 0.15, with a vesting period over 4 years.

On April 29, 2025 the Company granted to an employee 50,000 RSU׳s of the Compnay with vesting period over 4 years.

During the six months ended June 30, 2024, the Company granted or committed to granting the following share options and restricted stock units to employees, directors and service providers under the Plan:

On January 8, 2024, a key officer, through his wholly owned entity, was awarded 2,337,212 restricted share units. All shares shall fully vest on January 8, 2028.

On January 8, 2024, the Company committed to grant, options to each of its five independent directors to purchase 467,442 common shares (total of 2,337,210) of the Company at CAD 0.30 ($0.23), a price per share equal to the fair value per share at the date of the commitment to grant the options. Options shall vest evenly over the period of over 4 years, commencing as of the later of: (i) the date in which the independent director commenced to serve as the board member; and (ii) January 10, 2022.

On January 8, 2024, the Company granted certain employees and a service provider option to purchase 1,519,388 common shares of the Company at a price per share equal to the fair value per share at the effective date of the grant at a price of CAD 0.30 ($0.23), with the vesting period over 4 years.

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 13: INCOME (LOSS) PER SHARE**

The table below presents basic and diluted Loss from continuing operations per common share for the three months ended June 30, 2025 and 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Loss per share, basic | $(0.07) | $(0.02) |
| Loss per share, diluted | $(0.07) | $(0.02) |

---

The table below presents basic and diluted net income (loss) from continuing operations per common share for the six months ended June 30, 2025 and 2024, respectively:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Earnings (loss) per share, basic | $(0.09) | $0.00 |
| Earnings (loss) per share, diluted | $(0.09) | $0.00 |

---

The table below presents basic and diluted net income (loss) from discontinued operations per common share for the three months ended June 30, 2025 and 2024, respectively

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Earnings (loss) per share, basic | $0.00 | $0.00 |
| Earnings (loss) per share, diluted | $0.00 | $0.00 |

---

The table below presents basic and diluted net income (loss) from discontinued operations per common share for the six months ended June 30, 2025 and 2024, respectively

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Earnings (loss) per share, basic | $0.00 | $0.00 |
| Earnings (loss) per share, diluted | $0.00 | $0.00 |

---

**Earnings (loss) per share, basic**

The net income (loss) for three months ended June 30, 2025, and 2024, and the weighted average number of common shares used in the calculation of basic income (loss) per share are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Loss from continuing operations used in the calculation of earnings (loss) per share, basic | $(16439) | $(6119) |
| Net income from discontinued operations used in the calculation of earnings (loss) per share, basic |  | 307 |
| Weighted average number of common shares for the purposes of earnings (loss) per share, basic | 238042653 | 235612471 |

---

The net income (loss) for six months ended June 30, 2025, and 2024, and the weighted average number of common shares used in the calculation of basic income (loss) per share are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Loss from continuing operations used in the calculation of earnings (loss) per share, basic | $(21631) | $(120) |
| Net income from discontinued operations used in the calculation of earnings (loss) per share, basic |  | 152 |
| Weighted average number of common shares for the purposes of earnings (loss) per share, basic | 237805378 | 235141306 |

---

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 13: INCOME (LOSS) PER SHARE (Cont.)**

**Earnings (loss) per share, diluted**

The net income (loss) for three months ended June 30, 2025, and 2024 and the weighted average number of common shares used in the calculation of diluted income (loss) per share are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Loss used in the calculation of earnings (loss) per share, diluted | $(16439) | $(6119) |
| Net income from discontinued operations used in the calculation of earnings (loss) per share, diluted |  | 307 |
| Weighted average number of common shares for the purpose of earnings (loss) per share, diluted | 238042653 | 235612471 |

---

The net income (loss) for six months ended June 30, 2025, and 2024 and the weighted average number of common shares used in the calculation of diluted income (loss) per share are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Loss used in the calculation of earnings (loss) per share, diluted | $(21631) | $(120) |
| Net income from discontinued operations used in the calculation of earnings (loss) per share, diluted |  | 152 |
| Weighted average number of common shares for the purpose of earnings (loss) per share, diluted | 237805378 | 235464050 |

---

For the six months ended June 30, 2025 and 2024, the weighted average number of common shares for the purposes of diluted earnings (loss) per share assumes the potential exercise of stock options under the equity compensation plan.

Reconciliation of the weighted average number of common shares used in the calculation of basic earnings (loss) per share to the weighted average number of common shares used in the calculation of diluted earnings (loss) per share:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **June 30,<br> 2024** |
| Weighted average number of common shares for the purposes of basic earnings (loss) per share | 237805378 | 235141306 |
| Diluted shares: |  |  |
| &nbsp;&nbsp;&nbsp;Stock options | - | 2322745 |
| Weighted average number of common shares for the purpose of diluted earnings (loss) per share | 237805378 | 237464050 |

---

**THE INX DIGITAL COMPANY INC<br> NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS<br> For the Six Months Ended June 30, 2025 and 2024**

**U.S. dollars in thousands - unaudited (except share, per share and per token data)**

**NOTE 14: OPERATING SEGMENTS**

a. Reportable segments represent the two lines of business for which the Company expects to earn income,
incur costs and allocate resources. Operating segments are identified based on information that is reviewed by the chief operating decision
maker ("CODM") and senior management to make decisions about resources to be allocated and assess operational and financial
performance. Accordingly, for management purposes, the Company is organized into operating segments as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Digital assets segment - development and operation of integrated, regulated solutions for trading blockchain
assets, and providing related services for blockchain technology products.

&nbsp;&nbsp;&nbsp;&nbsp;2. Brokerage segment - Until November 29, 2024, the Company also operated in the brokerage segment through
ILSB, which facilitated financial transactions between financial institutions and offered a full range of brokerage services to several
leading banking institutions. Following the sale agreement signed on August 29, 2024, this segment was sold on November 29, 2024. The
segment's results until the sale date are presented as net income from discontinued operations in the statement of comprehensive
income.

b. Revenue based on geographic locations:

Revenue reported in the financial statements are attributed to countries based on the location of the customers, as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended <br> June 30** | **Three months ended <br> June 30** | **Six months ended <br> June 30** | **Six months ended <br> June 30** |
|  | **2025** | **2024** | **2025** | **2024** |
| Digital Asset Segment: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Switzerland | $170 | $241 | $384 | $437 |
| &nbsp;&nbsp;&nbsp;United States | $46 | $54 | $62 | $85 |
| &nbsp;&nbsp;&nbsp;Japan | $- | $18 | $- | $40 |
| &nbsp;&nbsp;&nbsp;United Kingdom | $19 | $- | $31 | $- |
| &nbsp;&nbsp;&nbsp;Other | $6 | $48 | $41 | $85 |

---

**NOTE 15: FINANCIAL RISKS AND RISK MANAGEMENT**

*Geopolitical risk*

 

A significant portion of the Company's operations and management is based in Israel. Following the October 7, 2023 Hamas attack on Israel and the subsequent outbreak of war, the Company has been monitoring the situation closely. As of the financial statements' issuance date, the Company has experienced no interruption or adverse impact on its business activities resulting from the conflict.

The Company maintains a comprehensive business continuity plan and has implemented necessary measures in accordance with this plan to ensure consistent operations and customer service. However, it is not possible at this time to predict the potential adverse impacts of the ongoing conflict on the Company's future business operations.

## Exhibit 99.2

**Exhibit 99.2**

![](ex99-2_001.jpg)

THE INX DIGITAL COMPANY, INC.

**MANAGEMENT'S DISCUSSION AND ANALYSIS**

FORM 51-102F1

For the three and six months ended June 30, 2025

**U.S. DOLLARS IN THOUSANDS**

The INX Digital Company, Inc. <br>

**Introduction**

This Management's Discussion and Analysis ("MD&A"), dated June 30, 2025, is intended to assist in the understanding of the trends and significant changes in the financial condition and results of operations of The INX Digital Company Inc. ("TINXD" or together with its consolidated subsidiaries, the "Company") for the three and six months period ended June 30, 2025.

This MD&A has been prepared in compliance with the requirements of Form 51-102F1, in accordance with *National Instrument 51-102 - Continuous Disclosure Obligations*. This MD&A should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three months ended June 30, 2025, and the audited annual consolidated financial statements of the Company for the fiscal year ended December 31, 2024, together with the notes thereto. Results are reported in United States dollars unless otherwise noted. The results for the three-month periods ended June 30, 2025, are not necessarily indicative of the results that may be expected for any future period. The information contained herein is presented as of August 14, 2025, unless otherwise indicated.

The unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 – Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB"). Accordingly, certain disclosures included in the December 31, 2024, audited consolidated financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the IASB have been condensed or omitted.

This MD&A contains forward-looking statements that involve risks, uncertainties and assumptions, including statements regarding anticipated developments in future financial periods and future plans and objectives. There can be no assurance that such information will prove to be accurate, and readers are cautioned not to place undue reliance on such forward- looking statements (*see "Forward-Looking Statements*").

For the purposes of preparing this MD&A, management, in conjunction with the board of directors, considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of the Company's ordinary shares; or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management, in conjunction with the board of directors, evaluates materiality with reference to all relevant circumstances, including potential market sensitivity.

**Acquisition of the Company**

On April 3, 2025, the Company entered into an arrangement agreement (the "Arrangement Agreement") with OpenDeal Inc. (d/b/a Republic) ("Republic") in connection with a transaction (the "Arrangement") that values the Company's equity at up to $60,000 (assuming the Rollover Share Limit is achieved as defined in the Arrangement Agreement). The agreement was subsequently amended on May 6, 2025.

The INX Digital Company, Inc. <br>

Under the terms of the Arrangement Agreement, on closing, Republic Strategic Acquisition Co LLC (the "Purchaser"), a wholly-owned subsidiary of Republic, will acquire all the issued and outstanding common shares of the Company (the "Shares"), other than those Shares already owned by Republic, for an aggregate amount of up to $54,800 as follows:

● Up to $18,800 in consideration will be provided to the Rollover Shareholders (as defined in the Arrangement Agreement).

● Fixed consideration of $36,000 will be paid by Republic to the non-Rollover Shareholders, of which:

○ $20,000 will be paid in cash upon completion of the Arrangement

○ $16,000 will be paid 18 months following the Escrow Deposit Date pursuant to the terms of a contingent value rights agreement (the "CVR Agreement")

Several key milestones have been achieved in the Arrangement process:

● The Company's shareholders approved the Arrangement at the annual general and special meeting held on June 19, 2025.

● The Company obtained a final order of the Supreme Court of British Columbia on June 25, 2025 .

● FINRA approval for the change of ownership was received on July 8, 2025

● Republic has deposited US$10,000 in escrow with Odyssey Trust Company as the escrow agent, pursuant to the escrow agreement entered by the Company, Republic, the Purchaser and Odyssey Trust Company

The Arrangement is expected to close within eight months following the date of the Arrangement Agreement, subject to the satisfaction of certain customary closing conditions.

As part of the transfer of ownership, INX's cash reserve fund, which as of June 30, 2025, totals approximately US$34.3 million, will be fully distributed to INX Token holders after closing of the transaction.

**Discontinued operation**

On August 29, 2024 ("the sale date"), INX entered into a share sale agreement to sell its holdings in I.L.S. Brokers Ltd., a Company incorporated under the laws of the State of Israel ("ILSB"). The transaction was completed on November 29, 2024. The total consideration at closing was $5,265 consisting of a base payment of $4,450 plus $815 representing ILSB's equity value as of October 31, 2024. A cash amount equal to 15% of the purchase price is being held in escrow until November 29, 2025, to secure the indemnification and other payment obligations of the Company.

**Forward Looking Statements**

The information set forth in this MD&A contains statements concerning future results, future performance, intentions, objectives, plans and expectations that are, or may be deemed to be, forward-looking statements. These statements concerning possible or assumed future results of operations of the Company are preceded by, followed by or include the words 'believes," "expects,' 'anticipates,' 'estimates,' 'intends,' 'plans,' 'forecasts,' or similar expressions.

Forward-looking statements are not guarantees of future performance. These forward-looking statements are based on current expectations that involve numerous risks and uncertainties, including, but not limited to, those identified in the "Risks and Uncertainties" section above. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate. These factors should be considered carefully, and readers should not place undue reliance on forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether written or oral that may be made by or on the Company's behalf, except as required under securities law.

The INX Digital Company, Inc. <br>

**Nature of Operations**

The Company, registered at 550 Burrard Street, Suite 2900, Vancouver, BC V6C 0A3, Canada, was incorporated under the provincial Business Corporations Act (British Columbia) on August 22, 2018.

The Company, through its subsidiaries, primarily focuses on providing regulated infrastructure for security token offerings and on-chain Real World Assets (RWAs). The Company operates INX.One, a comprehensive platform that serves as a single point of entry for both the primary issuance of regulated security tokens and secondary market trading of these tokens, along with digital asset (cryptocurrency) trading capabilities. This integrated approach allows the Company to offer a complete solution for tokenization and regulated trading of blockchain-based securities. The Company charges fees at a transaction level. The transaction fee is calculated based on volume and the value of the transaction. The transaction fee is collected from customers at the time the transaction is executed.

The Company charges fees at a transaction level. The transaction fee is calculated based on volume and the value of the transaction. The transaction fee is collected from customers at the time the transaction is executed.

The Company operates in the digital asset segment, which includes the development and operation of integrated, regulated solutions for trading of blockchain assets, and providing services for products utilizing blockchain technology.

Until November 29, 2024, the Company also operated in the brokerage segment through ILSB, which facilitated financial transactions between financial institutions and offered a full range of brokerage services to several leading banking institutions. The segment's results until the sale date are presented as net income from discontinued operation in the statement of comprehensive income.

**Purchase Transaction**

On January 10, 2022, the Company completed a transaction with INX Limited ("INX"), whereby INX became a wholly owned subsidiary of the Company (the "Transaction"). The Transaction resulted in a reverse takeover transaction whereby pre-transaction shareholders of INX became the majority shareholders of the Company. The Company continues the business of INX.

On January 24, 2022, the Company's shares started to trade on the NEO Exchange (now operating as Cboe Canada) under the symbol INXD.

Also, on July 28, 2022, the Company received approval from The OTCQB Venture Market operated by OTC Markets Group Inc. to commence trading of its common shares under the symbol INXDF, with INX's shares eligible to be cleared and settled by The Depository Trust Company.

**INX Token**

As part of the Company's blockchain ecosystem, INX created the INX Token (the "INX Token"), and on August 20, 2020, the U.S Securities and Exchange Commission (the "SEC") acknowledged the effectiveness of the F-1 Registration Statement that was filed by INX with the SEC and declared the effectiveness of the initial public offering of INX Tokens ("The INX Token Offering" or "the Offering") pursuant to which INX offered up to 130 million INX Tokens at a price of $0.90 per INX Token.

The INX Token was offered to the public on August 24, 2020, and closed on April 22, 2021, when the Offering was completed.

The INX Digital Company, Inc. <br>

In July 2021, INX listed the INX Token for trading on the trading platform for "digital securities," i.e., digital assets that constitute securities under the applicable law, operated through INX's subsidiary, INX Securities, LLC (formerly the "INX Securities Trading Platform", rebranded as INX.One in 2022).

INX has not allocated for issuance and does not intend to issue 35 million of the 200 million INX Tokens that have been created. These tokens may be used to fund acquisitions, address regulatory requirements or fund the operations of INX if the Board of Directors of INX determines that INX has net cash balances sufficient to fund less than nine months of its operations. INX intends to restrict issuances of the reserved INX Tokens to these or similar extraordinary situations to limit dilution to INX Token holders. In addition, INX maintains 29.4 million INX Tokens in its treasury. As June 30, 2025, the Company held approximately 61.7 million INX Tokens in aggregate.

Following an amendment to the INX Token rights which was approved by the Board of Directors of the Company on May 17, 2019 (the "Token Rights Amendment"), the holders of INX Tokens (other than INX) are entitled to receive a pro rata distribution of 40% of INX's net cash flow from operating activities, excluding any cash proceeds from an initial sale by INX of an INX Token (the "Adjusted Operating Cash Flow"). The distribution is based on INX's cumulative Adjusted Operating Cash Flow, net of cash flows which have already formed a basis for a prior distribution, calculated as of December 31 of each year. The distribution is to be paid to parties (other than INX) holding INX Tokens as of June 30 of the following year on April 30th, commencing with the first distribution to be paid, if at all. As of June 30, 2025, the INX cumulative adjusted operating cash flow activity was negative.

Holders of INX Tokens are also entitled, at a minimum, to a 10% discount on the payment of transaction fees on the INX.One Trading Platform.

**Organizational Structure**

The Company's significant shareholder is Triple-V (1999) Ltd. ("Triple-V") wholly owned by Mr. Shy Datika, the CEO of the Company, who, as of June 30, 2025, on a combined basis, owns 17.70% of the Company's outstanding common shares.

The Company operates through the following wholly owned subsidiaries:

● INX Limited ("INX"), a company incorporated in Gibraltar, is engaged in the operation and development of a digital assets trading platform, a security token trading platform and other services and products related to the fully integrated and regulated solutions for trading of blockchain assets. INX completed a SEC registered initial public Offering of the INX Token. The Offering was registered under the United States Securities Act of 1933, and, in such registration, the INX Token is deemed to be an "equity security" under relevant SEC rules and regulations.

● INX Digital, Inc. ("INXD"), a Delaware corporation, is registered in 49 US states plus Washington D.C. and Puerto Rico as a money transmitter to operate a trading platform for digital assets. INXD launched a digital asset trading platform on April 29, 2021, which was developed by INX and is operated by INXD. Select digital assets are supported for trading on the INXD platform, such as (identified by symbol): AVAXC, BTC, CRV, DOGE, DOT, ETH, EUROC, FTMLTC, MELANIA, PAXG, PEPE, PYUSD, SOL, TRUMP, USDC, USDT and XRP.

The INX Digital Company, Inc. <br>

● INX Securities, LLC (Previously named: Openfinance Securities, LLC) ("INXS"), is a Pennsylvania limited liability company. INXS is recognized in the US as a SEC registered Broker Dealer and is an SEC registered Alternative Trading System ("ATS"). INXS was purchased by INX on May 10, 2021, as part of the Asset Purchase Agreement with Openfinance Holdings, Inc. and certain subsidiaries of Openfinance Holdings, Inc., dated January 12, 2021. After closing on the acquisition, the company's name was changed from Openfinance Securities, LLC to INX Securities, LLC. INXS offers investment in primary offering and secondary market trading of security tokens previously registered with the SEC or offered under an applicable SEC exemption.

● Midgard Technologies Ltd. ("Midgard") is a company incorporated under the laws of the State of Israel. Midgard had served as the research and development arm of INX since November 1, 2020, and was acquired on April 1, 2021. Midgard provides software development, marketing and operations services for the group and starting in 2022, develops the digital assets and security token trading platforms and other products and holds intellectual property.

● INX Transfer Agent LLC (previously named TokenSoft LLC) ("INX Transfer Agent"), is a Delaware limited liability company. INX Transfer Agent is a transfer agent registered with the SEC and was acquired by INX pursuant to a purchase agreement dated December 28, 2021, for nominal consideration.

● INX Solutions Limited ("INX Solutions") was incorporated by INX in Gibraltar as a private company limited by shares. INX Solutions provided liquidity and risk management services to the group through the end of 2023.

● INX Global EU was incorporated under Cyprus law to secure Cyprus regulatory licensing for digital assets.

The following subsidiaries are currently dormant:

● INX Digital Assets UK Limited (Previously named: ILSB UK Limited) ("INX UK"), a company incorporated under the laws of England and Wales. INX acquired all issued and outstanding shares of INX UK on July 13, 2021, from Mr. James Crossley, former board member of INX, in consideration for an inconsequential amount of cash.

● INX EU Ltd. ("INX EU"), a company incorporated under the laws of Cyprus.

● INX Services, Inc., a Delaware corporation.

The INX Digital Company, Inc. <br>

**Changes in share capital during the three months ended June 30, 2025**

During the six months ended June 30, 2025, the activity related to Common shares, was as follows:

---

| | | |
|:---|:---|:---|
|  | **Common Shares** | **Share Premium** |
| Balance as of December 31, 2024 | 236794077 | $65469 |
| Issuance of shares from exercise of share options and vesting of restricted share units | 1388649 |  |
| Share-based compensation | - | 410 |
| **Balance as of *June 30, 2025*** | 238182726 | $**65879** |

---

**Share Based Payments**

The Company offers an Omnibus Equity Incentive Plan ("the Plan"), which provides for, among other things, the issuance of options to purchase common shares, restricted shares and restricted share units to employees, directors and service providers of the Company. Subject to certain capitalization adjustments, the aggregate number of shares that may be issued pursuant to share awards under the Plan may not exceed 37,408,948 shares.

During the six months ended June 30, 2025, the activity relating to stock options was as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Stock Options** | **Weighted<br> average<br> exercise<br> price** |
| Balance as of December 31, 2024 | 31636487 | $0.45 |
| Granted | 100000 | 0.06 |
| Forfeited | (695000) | 0.10 |
| Exercised | (1388649) | 0.00 |
| Balance as of June 30, 2025 | 29652838 | $0.45 |

---

During the six months ended on June 30, 2025, and 2024, the Company recorded share-based compensation expense of $410 and $584, respectively, related to stock options granted.

During the six months ended June 30, 2025, the Company granted or committed to granting the following share options and restricted stock units to employees, directors and service providers under the Plan:

On April 29, 2025, the Company granted to a service provider an option to purchase 50,000 common shares of the Company at the price equal to the fair value per share at the effective date of the grant at a price of CAD 0.15, with a vesting period over 4 years.

On April 29, 2025 the Company granted to an employee 50,000 RSU׳s of the Company with a vesting period over 4 years.

The INX Digital Company, Inc. <br>

**Financial and Operational Highlights Financial Highlights**

The following table presents an overview of the Company's assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| Total assets | $58752 | $67238 |
| Total liabilities | $48700 | $35190 |
| Shareholders' equity | $10036 | $32048 |
| Working capital | $1933 | $17478 |
| Adjusted working capital (1) | $10633 | $17300 |

---

(1) Adjusted Working Capital is defined as Working Capital excluding
Reserve Fund and INX Token liability, which represents a non-cash fair value measured liability.

**Cash and Cash Equivalents**

 ****

As of June 30, 2025, the Company held a total of $3,924 cash and cash equivalents, a decrease of $6,121 from December 31, 2024.

**Total Current Assets**

As of June 30, 2025, total current assets were $50,649, representing a decrease of $2,019 from December 31, 2024. The net decrease was primarily attributable to decreases in cash and cash equivalents of $6,121, receivables for sale of subsidiary of $4,423, customer funds of $1,321, and prepaid expenses and other receivables of $932. These decreases were partially offset by increases in short-term investments of $4,561, short-term investments held in Reserve Fund of $4,060, cash and cash equivalents held in Reserve Fund of $2,149, and trade receivables of $8.

**Reserve Fund**

 ****

In connection with the INX Token Offering, INX committed to reserve 75% of the gross proceeds in excess of $25,000, less payments to underwriters, to be available to cover customer and INX's losses, if any, that result from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses. INX refers to this amount as the "Reserve Fund".

On July 13, 2021, the INX's Board of Directors approved the Investment Policy for the Reserve Fund. Per the approved Policy, as amended on August 11, 2022, the Reserve Fund, post the amendment, shall be invested as follows: minimum 15% in cash and bank deposits, up to 70% in U.S Treasury securities, up to 20% shall be invested in exchange traded funds and up to 50% in corporate bonds and other instruments with the lowest investment grade rating of BBB.

As of December 31, 2022, INX had segregated $36,023 as the Reserve Fund in December 2023, a cyber-attack on third-party service provider computer system resulted a loss of $1,618 to one of the Company's subsidiaries. The Company immediately addressed the security vulnerability, implemented additional security measures designed to prevent such cyber-attack incidents in the future, and continues to work with relevant law enforcements seeking to recover lost funds.

The INX Digital Company, Inc. <br>

The Reserve Fund was used to cover this loss, reducing its balance to $34,405 as of December 31, 2023.

In April 2024, a human error in the Company's trading platform execution led to a loss of $80. The Company promptly updated work procedures to prevent similar errors. This loss was also covered by the Reserve Fund, further reducing its balance to $34,325 as of June 30, 2025.

As of June 30, 2025, and December 31, 2024, INX has segregated $34,325 which is restricted as the Reserve Fund, The Reserve Fund is held in cash and cash equivalents, U.S. Treasury securities and corporate bonds held at banks and brokerage firms as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br> **2025** | **December 31,**<br> **2024** |
| Cash and cash equivalents | $16358 | $14209 |
| Financial assets at fair value through other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;Short-term investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury securities | 805 | 2954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds – marketable investments | 15057 | 8848 |
| &nbsp;&nbsp;&nbsp;Total short-term investments | 15862 | 11802 |
| &nbsp;&nbsp;&nbsp;Long-term investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds and loans (principally) - marketable investments | 2105 | 8314 |
| &nbsp;&nbsp;&nbsp;Total long-term investments | 2105 | 8314 |
| Total Reserve Fund | $34325 | $34325 |

---

**Assets**

 ****

As of June 30, 2025, and December 31, 2024, assets totaled $58,736 and $67,238, respectively. The net decrease of $8,502 was primarily due to the following:

**Decreases in:**

● Cash and cash equivalents $6,121

● Long-term investments held in Reserve Fund $6,209

● Receivables for sale of subsidiary $4,423

● Customer funds $1,321

● Prepaid expenses and other receivables $932

● Digital assets $117

● Right-of-use assets, net $109

● Property and equipment, net $32

**Offset by increases in:**

● Short-term investments held in Reserve Fund $4,060

● Short-term investments $4,561

● Cash and cash equivalents held in Reserve Fund $2,149

● Trade receivables $8

The INX Digital Company, Inc. <br>

**Liabilities**

 ****

***Change in fair value of INX Token***

Our balance sheet as of June 30, 2025, includes the INX Token liability of $40,920 compared to $25,833 as of December 31, 2024.

INX Token is measured at fair value based on the closing market price of the INX Token. The fair value of each INX Token as of June 30, 2025, and December 31, 2024, was $0.30 and $0.19, respectively.

For the six months ended June 30, 2025 and 2024, the re-measurement to fair value of the INX Token liability with respect to INX Tokens issued by the Company resulted in an unrealized gain (loss) of $(14,934) and $5,315, respectively, which was recorded in profit or loss.

For the three months ended June 30, 2025 and 2024, the re-measurement to fair value of the INX Token liability with respect to INX Tokens issued by the Company resulted in an unrealized loss of $13,575 and $2,762, respectively, which was recorded in profit or loss.

**Change in fair value of INX Token warrants**

As of June 30, 2025, and December 31, 2024, directors, advisors, employees and service providers held 8,950,366 and 8,116,958 restricted INX Tokens or INX Token warrants, respectively.

The INX Token warrant liability of $1,016 and $660 on June 30, 2025, and December 31, 2024, respectively, is presented at fair value based on Black-Scholes pricing model.

Changes in fair value of the liabilities noted above are recorded in profit or loss in our consolidated statements of profit and loss and comprehensive income (loss).

On February 27, 2025, the INX board of directors approved a resolution to cancel options to purchase INX Tokens previously granted to certain employees, directors and officers of the company. In the same resolution, the board approved the granting of new options to purchase INX Tokens to these same Grantees. The action followed the recommendation of the Compensation Committee of The INX Digital Company, Inc. and was formalized through a written resolution signed by all board members.

The INX Digital Company, Inc. <br>

**Results of Operations Overview**

 ****

The following table presents an overview of the Company's results of operations for the six months and for three months ended June 30, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> June 30,** | **Three months ended<br> June 30,** | **Six months Ended<br> June 30,** | **Six months Ended<br> June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenue:** |  |  |  |  |
| Trading and transaction fees | $52 | $120 | $104 | $210 |
| Income from service revenue | 189 | 241 | 414 | 437 |
| Cost of services | (159) | (222) | (373) | (418) |
| Loss on service revenue | 30 | 19 | 41 | 19 |
| Equity loss on investment in associate | (143) | (137) | (291) | (162) |
| **Total income (loss)** | (61) | 2 | (146) | 67 |
| **Operating income (expenses):** |  |  |  |  |
| Research and development | (799) | (788) | (1486) | (1540) |
| Sales and marketing | (755) | (760) | (1552) | (1436) |
| General and administrative | (2201) | (2331) | (4917) | (3779) |
| Change in fair value of INX Token warrant liability | (378) | 34 | (229) | 268 |
| **Total operating expenses** | (4133) | (3845) | (8184) | (6487) |
| **Loss from operations** | **(4194)** | **(3843)** | **(8330)** | **(6420)** |
| Unrealized gain (loss) on INX Tokens issued | (13575) | (2762) | (14934) | 5315 |
| Finance income | 1386 | 570 | 1872 | 1135 |
| Financial expenses | (51) | (80) | (234) | (155) |
| **Loss before tax** | (16434) | (6115) | (21626) | (125) |
| Tax income (expenses) | (5) | (4) | (5) | 5 |
| **Loss from continuing operations** | (16439) | (6119) | (21631) | (120) |
| Income from discontinued operations |  | 307 | - | 152 |
| **Net income (loss)** | **(16439)** | **(5812)** | **(21631)** | **32** |
| Amounts that will be or that have been reclassified to profit or loss when specific conditions are met: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized (gain) loss on securities at fair value through other comprehensive income (loss) reclassification adjustment into net income (loss) | (587) |  | (587) |  |
| &nbsp;&nbsp;&nbsp; Unrealized gain on investments at fair value through other comprehensive income (loss) | 28 | 138 | (6) | 342 |
| &nbsp;&nbsp;&nbsp;Adjustments arising from translating financial statements from functional currency to presentation currency | (163) | (66) | (198) | (78) |
| **Total other comprehensive income** | (722) | 72 | (791) | 264 |
| **Total comprehensive income (loss)** | **(17161)** | **(5740)** | **(22422)** | **296** |

---

The INX Digital Company, Inc. <br>

**Operating Results from the Second Quarter of 2025 and 2024**

 ****

*The 2024 figures were reclassified to reflect the discontinuing of the brokerage segment.*

**Total income**

 ****

For the three months ended June 30, 2025, the Company generated total revenues of $241, consisting of $52 in trading and transaction fees and $189 income from service revenue. After deducting service costs of $159 and equity loss on investment in associate of $143, the Company reported a net loss of $61.

For the three months ended June 30, 2024, the Company generated total revenues of $361, consisting of $120 in trading and transaction fees and $241 in service revenue. After deducting service costs of $222 and equity loss on investment in associate of $137, the Company reported net income of $2.

**Trading and transaction fees**

Trading fee revenue consists of transaction revenue generated from trading and transaction fees from trades in security tokens and digital assets on our INX.One platform. Trading fees earned are based on the price and quantity of the digital asset that is bought or sold and are published on our website (https://www.inx.co/fee-schedules/). Transaction fees may be either set as a fixed fee per transaction or as a percentage of the amount traded. Transaction revenue is recognized at the time the transaction is processed and is directly correlated with trading and transaction volume.

In late 2022, we launched listings of security tokens seeking to raise capital in primary offerings. This service is offered by our SEC broker-dealer subsidiary, INX Securities. Similar to the INX Token, security tokens listed by us are registered with the SEC and are deemed to be an "equity security" under relevant SEC rules and regulations. After the primary offerings are completed, tokens are expected to trade on INX.One in the secondary market. Listing fees are generated on each primary raise and are directly correlated to the total capital raised by the issuer.

**Income from Service revenue**

Service revenue represents fees from technology consultation and advisory, as well as listing services performed by the Company under written agreements.

In 2023, the Company entered into a service agreement with Nabatech, an entity organized under a joint venture agreement between the Company and an entity based in Switzerland, whereby both parties agreed to join their expertise to develop central bank digital currency solutions utilizing blockchain technology. The Company provides blockchain technology support and advisory services to Nabatech and earns revenue based on time and resources dedicated to the development project.

For the three months ended June 30, 2025, the Company recorded service revenue of $189, following service costs of $159. The Company's share (33%) in Nabatech's loss was $143.

For the three months ended June 30, 2024, the Company recorded service revenue of $241, following service costs of $222. The Company's share (33%) in Nabatech's loss was $137.

The INX Digital Company, Inc. <br>

**Research and Development Expenses**

The Company incurred $799 in research and development expenses for the three months ended June 30, 2025, compared to $788 for the three months ended June 30, 2024.

The increase of $11 was primarily driven by an increase in research and development personnel costs of $84, token-based compensation of $8. This was offset by a decrease in software license & web services of $50, in share-based compensation of $19 and other research and development costs $12.

**Sales and Marketing Expenses**

The Company incurred $755 in sales and marketing expenses for the three months ended June 30, 2025, compared to $760 for the three months ended June 30, 2024.

 ****

***General and Administrative Expenses***

The Company incurred $2,201 in general and administrative expenses for the three months ended June 30, 2025, compared to $2,331 for the three months ended June 30, 2024. The decrease of $130 was primarily due to decreases in other general and administrative costs of $323, general and administrative personnel costs of $94, depreciation and amortization of $101, software and web services of $90, and share- based compensation of $80. This was offset by increases in expenses relating to the Company acquisition of $475, financial consultants' expenses of $49, and token-based compensation of $31.

**Net Loss from Operation**

For the three months ended June 30, 2025, and 2024, the Company's net loss from operations was $4,194 and $3,843, respectively.

**Gain (Loss) on INX Tokens Issued**

Based on the terms of the INX Token, as described in Note 1 of the consolidated financial statements, the INX Token is a hybrid financial instrument, accordingly, the Company elected, in accordance with IFRS 9, to designate the entire financial liability at fair value with changes in fair value of the liability recognized as gain or loss in the Company's consolidated statements of profit and loss and comprehensive income (loss).

For the three months ended June 30, 2025 and 2024, the re-measurement to fair value of the INX Token liability with respect to INX Tokens issued by the Company resulted in an unrealized loss of $13,575 and $2,762, respectively, which was recorded in profit or loss.

**Net Income (Loss) from continuing operations**

The Company's loss for the three months ended June 30, 2025, was $17,623, compared to $6,119 for the three months ended June 30, 2024. The increase in net loss of $11,504 mainly relates to the change in the unrealized gain on INX Tokens issued and an increase of $10,813 in expenses relating to the Company acquisition.

**Total Comprehensive Income (Loss) per Share**

The total comprehensive loss from continuing operations per share, basic, for the three months ended June 30, 2025, and 2024 was approximately $0.07 and $0.03, respectively.

The total comprehensive income (loss) from discontinued operations per share, basic and diluted, for the three months ended June 30, 2025, and 2024, was immaterial.

The INX Digital Company, Inc. <br>

**Operating Cash Flow**

The Company's Operating Cash Flow for the three months ended June 30, 2025, was negative $3,356 compared to negative $2,736 for three months ended June 30, 2024.

**Adjusted Operating Cash Flow**

 ****

Following an amendment to the INX Token rights which was approved by the Board of Directors of the Company on May 17, 2019 (the "Token Rights Amendment"), the holders of INX Tokens (other than INX) are entitled to receive a pro rata distribution of 40% of INX's net cash flow from operating activities, excluding any cash proceeds from an initial sale by INX of an INX Token (the "Adjusted Operating Cash Flow"). The distribution is based on INX's cumulative Adjusted Operating Cash Flow, net of cash flows which have already formed a basis for a prior distribution, calculated as of December 31 of each year. The distribution is to be paid to parties (other than INX) holding INX Tokens as of June 30 of the following year on April 30th, commencing with the first distribution to be paid, if at all. As of June 30, 2025, the INX cumulative adjusted operating cash flow activity was negative.

The Cumulative Adjusted Operating Cash Flow as of June 30, 2025, was negative $81,169.

**Operating Results from the First Half of 2025 and 2024**

**Total income**

For the six months ended June 30, 2025, the Company generated total revenues of $518, consisting of $104 in trading and transaction fees and $414 income from service revenue. After deducting service costs of $373 and equity loss on investment in associate of $291, the Company reported a loss of $146.

For the six months ended June 30, 2024, the Company generated total revenues of $647, consisting of $210 in trading and transaction fees and $437 income from service revenue. After deducting service costs of $418 and equity loss on investment in associate of $162, the Company reported net income of $67.

***Research and Development Expenses***

The Company incurred $1,486 in research and development for the six months ended June 30, 2025, compared to $1,540 for the six months ended June 30, 2024. The decrease of $54 was primarily driven by decreases in share-based compensation of $64, other research and development costs of $13, and software licenses and web services related to research and development of $55, offset by increases in research and development personnel costs of $64 and token-based compensation costs of $14.

 ****

***Sales and Marketing Expenses***

The Company incurred $1,552 in sales and marketing expenses for the six months ended June 30, 2025, compared to $1,436 for the six months ended June 30, 2024. The increase of $116 was mainly due to increases in online marketing of $256 and other marketing costs of $137, offset by decreases in marketing personnel costs of $219, share-based compensation of $29, and token-based compensation of $29.

The INX Digital Company, Inc. <br>

***General and Administrative expenses***

The Company incurred $4,917 in general and administrative expenses for the six months ended June 30, 2025, compared to $3,779 for the six months ended June 30, 2024. The increase of $1,138 was primarily driven by increases in expenses related to the Company acquisition of $1,276, audit fees and financial services of $126, legal fees of $112, general and administrative personnel costs of $111, token-based compensation of $37, compliance fees and services of $30, and directors' fees of $16. These increases were offset by decreases in other administrative costs of $200, share-based compensation of $93, software and web services of $93, and depreciation and amortization of $69.

**Income (loss) from operation**

For the six months ended June 30, 2025, and 2024, the Company's loss from operations was approximately $8,330 and $6,420, respectively.

***Gain (Loss) on INX Tokens Issued***

During the six months ended June 30, 2025, the Company recorded a loss on INX Tokens issued of $14,934, compared to a gain of $5,315 recorded in the six months ended June 30, 2024.

 ****

***Net Income (loss)***

The Company's net loss from continuing operations for the six months ended June 30, 2025, was $22,815, compared to a loss of $120 for the six months ended June 30, 2024. The increase in net loss of $22,695 mainly relates to the change in unrealized gain on INX Tokens issued and the fair value adjustment of INX Token warrant liability to employees and service providers..

 **

***Total comprehensive income (loss) per share***

 **

The total comprehensive income (loss) per share, basic, for the six months ended June 30, 2025 and 2024 was approximately $(0.10) and $0.00, respectively.

The total comprehensive income (loss) per share, diluted, for the six months ended June 30, 2025 and 2024 was approximately $(0.10) and $0.00, respectively.

**Operating Cash Flow**

The Company's Operating Cash Flow for the six months ended June 30, 2025, was approximately negative $5,796 compared to $5,199 for the six months ended June 30, 2024.

The INX Digital Company, Inc. <br>

**Operational Highlights**

**Acquisition of the Company**

On April 3, 2025, the Company entered into an arrangement agreement (the "Arrangement Agreement") with OpenDeal Inc. (d/b/a Republic) ("Republic") in connection with a transaction (the "Arrangement") that values the Company's equity at up to $60,000 (assuming the Rollover Share Limit is achieved as defined in the Arrangement Agreement). The agreement was subsequently amended on May 6, 2025.

Under the terms of the Arrangement Agreement, on closing, Republic Strategic Acquisition Co LLC (the "Purchaser"), a wholly-owned subsidiary of Republic, will acquire all of the issued and outstanding common shares of the Company (the "Shares"), other than those Shares already owned by Republic, for an aggregate amount of up to $54,800 as follows:

● Up to $18,800 in consideration will be provided to the Rollover Shareholders (as defined in the Arrangement Agreement).

● Fixed consideration of $36,000 will be paid by Republic to the non-Rollover Shareholders, of which:

○ $20,000 will be paid in cash upon completion of the Arrangement

○ $16,000 will be paid 18 months following the Escrow Deposit Date pursuant to the terms of a contingent value rights agreement (the "CVR Agreement")

Several key milestones have been achieved in the Arrangement process:

● The Company's shareholders approved the Arrangement at the annual general and special meeting held on June 19, 2025.

● The Company obtained a final order of the Supreme Court of British Columbia on June 25, 2025 .

● FINRA approval for the change of ownership was received on July 8, 2025

● Republic has deposited US$10,000 in escrow with Odyssey Trust Company as the escrow agent, pursuant to the escrow agreement entered by the Company, Republic, the Purchaser and Odyssey Trust Company

The Arrangement is expected to close within eight months following the date of the Arrangement Agreement, subject to the satisfaction of certain customary closing conditions.

As part of the transfer of ownership, INX's cash reserve fund, which as of June 30, 2025, totals approximately US$34.3 million, will be fully distributed to INX Token holders after closing of the transaction.

**Focus on the growth of listings offered on security token market**

We aim to be the market leader offering regulated investment opportunities in the form of Web3 integrated security tokens. INX's main focus remains on the growth of security token investment opportunities and on-chain Real World Assets (RWAs) offered to our customers on the INX.One platform by creating a go-to holistic solution for private founders, public companies and corporate partners to raise capital by utilizing regulated security tokens or tokenize previously issued securities or shares and list them on INX.One, providing an efficient and transparent secondary market for this asset class, and giving access to 'first look' investment opportunities to investors in the U.S. and globally. We also continue to enter into listing agreements with companies and tokenization platforms in the U.S. and globally that seek to list their issued security tokens or on-chain RWA for secondary market trading on INX.One.

The INX Digital Company, Inc. <br>

As of June 30, 2025, five (5) portfolio companies were actively raising capital in their primary offerings and are exclusively available for investment to clients of INX, on the INX.One platform. Additionally, additional issuers have been actively undergoing the due diligence process prior to being listed for primary offering. Once the primary raises are closed, these tokens are expected to launch on INX.One in the secondary market trading after a seasoning period. As of June 30, 2025, the INX Token (INX) and the Republic Note ($Note) are the most actively traded security tokens on INX.One and are among the most actively traded security tokens in the United States.

**Expansion of technical capabilities and improvements of efficiency and reliability of INX.One**

As the tokenization of real-world assets gains momentum, we have made progress strategically expanding our technology infrastructure and capabilities as well as forming strategic partnerships to introduce new on-chain Real World Assets ("RWA") on INX.One.

**Strategic Partnership**

 ****

During 2024, the Company announced the listing of tokenized NVIDIA Corp. (NVDA), Tesla (TSLA), Microsoft (MSFT), Google (GOOGL), and GameStop (GME) shares ("Tokeneized shares") on its platform. These tokenized shares, are backed one-to-one by shares, and issued on the blockchain network in partnership with Backed Finance. This initiative is designed for eligible non-US users only, marking a significant advancement in the on-chain RWA market by bridging traditional financial assets with digital trading.

On August 2024, the company, through its broker-dealer subsidiary, INX Securities LLC, announced a strategic association with Muriel Siebert & Co., LLC, a prominent name in traditional financial services, and a wholly owned subsidiary of Siebert Financial Corp. (NASDAQ: SIEB). This collaboration marks a significant milestone in expanding On-Chain RWA investment opportunities to Siebert's long-established relationships. This association will enable Siebert's extensive network of clients and/or potential issuers to connect with INX's cutting-edge marketplace for the primary issuance and secondary trading of RWAs.

**Strategic Partnership with Republic**

In June 2023, INX entered into a strategic collaboration agreement with OpenDeal Inc. ("Republic"), a global financial firm operating a digital merchant bank and a network of investment platforms, pursuant to which the parties seek to expand the breadth and depth of tokenization infrastructure and access to digital assets for investors worldwide.

By combining INX's digital trading infrastructure and expertise in tokenized primary offerings and secondary market trading, together with Republic's well-established primary distribution, wallet, and portfolio companies, both companies are poised to introduce a wide range of compliant solutions for both primary and secondary markets and redefine the way capital is raised, empowering both institutional and retail investors globally.

In Q4 2023 INX listed the Republic Note ($Note) on INX.One for secondary market trading and completed the integration of the Republic Wallet as a new custody solution for clients on INX.One, which marks a significant milestone in the collaboration between the entities and sets a strong foundation scalable for future listings of tokens from the Republic's portfolio of companies.

The INX Digital Company, Inc. <br>

In July 2024, INX and Republic further expanded and strengthened the partnership: INX will refer prospective securities issuers to Republic for their initial offerings, earning commissions from any revenues Republic generates from these clients. Following these initial offerings, securities may be listed and traded on INX's platform, showcasing the seamless transition and cooperative spirit of the partnership.

**Partnership with SICPA Focused on Central Bank Digital Currency Solutions**

In 2023, the Company entered into a strategic partnership with SICPA, a global industry leader providing authentication technology and services to sovereign central banks globally, to develop central bank digital currency ("CBDC") solutions utilizing blockchain technology for clients of SICPA and beyond. For the purpose of executing shared objectives under the joint venture agreement, SICPA and INX formed NABATECH SA ("Nabatech"), an entity organized under the laws of Switzerland. The Company serves as the technology partner to Nabatech providing its expertise in the development and integration of blockchain-based infrastructure and smart contract software solutions for the development and launch of a secure and scalable environment designed for central banks globally to deploy digital currencies. The solution developed is focused on multi series wholesale and retail CBDCs, flexible and configurable privacy design ranging from full anonymity to automated KYC, interoperability between wholesale and retail tokens, support for the issuance of digital bonds, stablecoins and tokenized assets. The developed technology design meets requirements of central banks and sovereign states to maintain financial stability of the economy and strives for a seamless interoperability between all asset types to ensure smooth integration with conventional financial systems while supporting legal and regulatory compliance models of a given economic monetary policy and mitigating liquidity risks with a smart and innovative conversion mechanism.

The core design principle of the CBDC solution offered by Nabatech embraces financial inclusion by enabling flexible and programmable risk-based privacy settings applied offline, which increase trust and adoption of the CBDC by the population. While the development of the CBDC solution is deemed to be a longer-term initiative, during 2024, Nabatech is expected to bid competitively seeking to win CBDC engagements from central banks globally.

**Expansion of Money Transmitter Licensing**

INX Digital, Inc., licensed or otherwise cleared to operate in 49 U.S. states plus Washington D.C. and Puerto Rico as a money transmitter, continued to expand its licensing with the addition of Wisconsin during the three months ended June 30, 2025.

**Related Party Transactions**

The Company's related parties include its subsidiaries, associates and service providers over which the Company exercises significant influence, and key management personnel. Key management personnel are those people who have the authority and responsibility for directing and controlling the activities of the Company, directly and indirectly. Key management personnel include officers, directors and companies controlled by officers and directors.

**Liquidity and Capital Resources**

The financial statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. Management and the Board of Directors are actively involved in the review, planning and approval of significant expenditures and commitments.

The INX Digital Company, Inc. <br>

**Financial Instruments and Risk Management**

The following is the accounting policy for financial assets under IFRS 9:

 

*Overview*

The Company's financial instruments consist of cash and accounts payable and accrued liabilities. The fair value of these financial instruments approximates their carrying value due to short term nature.

 

*Credit Risk*

Credit Risk is the risk of a potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations.

 

*Liquidity Risk*

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due.

**Capital Management**

The Company's capital consists of share capital. The Company sets the amount of capital in relation to risk and manages the capital structure and makes adjustments to it in light of changes to economic conditions and the risk characteristics of the underlying assets.

The Company's objectives when managing capital are:

● to maintain a flexible capital structure, which optimizes the cost of capital at acceptable risk; and

● to maintain investor, creditor and market confidence in order to sustain the future development of the business.

The Company is not subject to any externally or internally imposed capital requirements at year end, except as discussed below.

The INX Digital Company, Inc. <br>

**Off-Balance Sheet Arrangements**

The Company does not have any off-balance sheet arrangements as of June 30, 2025.

**Critical Judgment and Estimates**

The details of the Company's accounting policies are presented in Note 2 of the consolidated financial statements as of and for the year ended December 31, 2024. The accounting policies applied in preparation of the interim condensed consolidated financial statements as of and for the six months ended June 30, 2025, are consistent with those applied and disclosed in the Company's audited financial statements for the year ended December 31, 2024.

**Management's responsibility for the financial statements**

The information provided in this report, including the financial statements, is the responsibility of management. In the preparation of the statements, estimates are sometimes necessary to make a determination of future value for certain assets or liabilities. Management believes such estimates have been based on careful judgments and have been properly reflected in the accompanying financial statements. Management maintains a system of internal controls to provide reasonable assurances that the Company's assets are safeguarded and to facilitate the preparation of relevant and timely information.

**Geopolitical risk**

 ****

A significant portion of the Company's operations and management is based in Israel. Following the October 7, 2023 Hamas attack on Israel and the subsequent outbreak of war, the Company has been monitoring the situation closely. As of the financial statements' issuance date, the Company has experienced no interruption or adverse impact on its business activities resulting from the conflict.

The Company maintains a comprehensive business continuity plan and has implemented necessary measures in accordance with this plan to ensure consistent operations and customer service. However, it is not possible at this time to predict the potential adverse impacts of the ongoing conflict on the Company's future business operations.

**Corporate Governance**

The Company's Board of Directors follows recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The Audit Committee of the Company fulfills its role of ensuring the integrity of the reported information through its review of the interim and audited annual financial statements prior to their submission to the Board of Directors for approval. The Audit Committee, comprised of three directors, all of whom are independent, meets with the management of the Company on a quarterly basis to review the financial statements, including the MD&A, and to discuss other financial, operating and internal control matters as required.

## Exhibit 99.3

**Exhibit 99.3**

**The INX Digital Company Reports Q2 2025 Financial Results**

 

*The INX Digital Company, Inc. \| August 14, 2025*

TORONTO, August 14, 2025 /CNW/ – The INX Digital Company, Inc. (Cboe CA: INXD) (OTCQB: INXDF) (INXATS: INX) ("INX" or the "Company"), the owner of INX.One—a security token and digital asset trading platform, U.S. broker-dealer, alternative trading system, and transfer agent—announced today its financial results for the second quarter ended June 30, 2025.

The financial performance for the second quarter of 2025 reflects the Company's continued progress in enhancing its infrastructure, expanding platform capabilities, and positioning itself for scale under its pending acquisition by Republic. All balances are in U.S. Dollars.

**Acquisition Update**

During Q2 2025, the acquisition of INX by OpenDeal Inc. (d/b/a Republic) advanced significantly, with approvals secured by INX shareholders, the Canadian court, and FINRA (the U.S. Financial Industry Regulatory Authority), among others. The transaction is now progressing toward completion.

**Q2 2025 Financial Highlights:**

● **Balance Sheet Position**: As of June 30, 2025, INX held total working capital of $1.9 million and adjusted working capital of $10.6 million, excluding the Reserve Fund and INX Token liability.

● **Q2 Trading and Transaction Fees**: Trading and transaction fees for Q2 totaled $52K, compared to $104K in the same period in 2024.

● **Net Loss**: The net operating loss for Q2 was $4.2 million, compared to $3.8 million in Q2 2024.

● **Reserve Fund**: A reserve fund of $34.3 million continues to be maintained for the protection of customer funds.

● **Cash Flow**: Net cash used in operating activities during Q2 was $5.8 million.

**Operational Progress and Strategic Execution**

Q2 2025 was marked by significant advancements in user experience, banking infrastructure, and platform positioning as INX continued to strengthen its role as a multi-asset platform connecting cryptocurrencies, stablecoins, Real-World Assets (RWAs), and security tokens under a unified, U.S.-registered trading environment. The Company's efforts were focused on supporting retail adoption and operational scale through technology and infrastructure upgrades.

INX has completed the migration of its banking and payments infrastructure for INX Securities to Rail and its banking partners to enhance fiat onboarding and withdrawals. These enhancements improved automation across onboarding, funding, and account approvals, positioning INX to serve a broader user base more efficiently.

Additionally, INX delivered user-facing upgrades aimed at simplifying and clarifying the user journey for self-directed investors seeking on-chain diversification. Key improvements included:

● A streamlined onboarding experience with clearer status tracking and enhanced ID verification.<br>

● Development of the updated Portfolio dashboard, designed to better reflect INX's positioning as a unified platform for multiple asset types, was completed in Q2.A<br>

● Ongoing improvements to the mobile app, expanding token visibility and providing easier access to security token holdings.

On the operational side, INX's focus in Q2 was on platform resilience and scalability. The Company deployed over 16 infrastructure patches, a record for a single quarter, addressing production issues and optimizing processes tied to banking integrations and user flows. These efforts directly enhanced platform stability and user experience during a period of transition.

The platform's regulatory and compliance infrastructure was further reinforced with the implementation of automated FINRA trade reporting, alongside improvements to back-office tools supporting account status monitoring and reporting. INX also expanded its blockchain integrations to include Polygon and Avalanche for enhanced security token issuance capabilities and continued upgrading its infrastructure with enhanced security protocols, migration to ethers.js, and scalability improvements on AWS Kubernetes.<br>

**Strategic Positioning in a Dynamic Market**

INX continues to solidify its position as a trusted venue for compliant trading of security tokens, RWAs, and cryptocurrencies. The platform's integrated infrastructure now better supports scalability, operational efficiency, and regulatory rigor — positioning INX as a key component in Republic's future global offering.

**Leadership Commentary**

**Shy Datika, CEO of INX, commented:**

"Q2 was a pivotal quarter for INX. We delivered meaningful improvements to our user experience, resolved key operational challenges, and completed the heavy lifting of our banking migration. Just as importantly, we secured shareholder, court, and FINRA approval for our acquisition by Republic — a milestone that unlocks our next phase of growth. As the digital asset space continues to evolve, INX remains committed to providing the most compliant, transparent, and seamless platform for trading both crypto and security tokens."

**About INX:**

INX provides regulated trading platforms for digital securities and cryptocurrencies. With the combination of traditional markets expertise and a disruptive fintech approach, INX provides state-of-the-art solutions to modern financial problems. INX is led by an experienced and dedicated team of business, finance, and technology veterans with the shared vision of redefining the world of capital markets via blockchain technology and a disciplined regulatory approach.

**About The INX Digital Company, Inc.:**

INX is the holding company for the INX Group, which includes regulated trading platforms for digital securities and cryptocurrencies. The INX Group's vision is to be the preferred global regulated hub for digital assets on the blockchain. The INX Group's overall mission is to bring communities together and empower them with financial innovation. Our journey started with our initial public token offering of the INX Token in which we raised US$84 million. The INX Group is shaping the blockchain asset industry through its willingness to work in a regulated environment with oversight from regulators like the SEC and FINRA. For more information, please visit the INX Group website here.

**Cautionary Note Regarding Forward-Looking Information and Other Disclosures**

This press release contains statements that constitute "forward-looking information" ("forward-looking information") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates, and projections as of the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events, or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. In disclosing the forward-looking information contained in this press release, INX has made certain assumptions, including with respect to the continuous development of the INX trading platform, the completion of the transactions described herein, and the development of the digital asset industry. Although INX believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include but are not limited to regulatory developments, the state of the digital securities and cryptocurrencies markets, and general economic conditions. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Except as required by law, INX disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information, or otherwise.

CBOE Canada is not responsible for the adequacy or accuracy of this press release. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to the U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

**SOURCE The INX Digital Company, Inc.**

For further information, please contact:<br> The INX Digital Company, Inc., Investor Relations,<br> Attn.: Alan Silbert, +1 855 657 2314,<br> Email: investorrelations@inx.co