# EDGAR Filing Document

**Accession Number:** 0001782265
**File Stem:** 0001493152-26-029333
**Filing Date:** 2026-6
**Character Count:** 1452970
**Document Hash:** 6ec954d4127276f4db0995c18d251821
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-029333.hdr.sgml**: 20260618

**ACCESSION NUMBER**: 0001493152-26-029333

**CONFORMED SUBMISSION TYPE**: 20FR12B

**PUBLIC DOCUMENT COUNT**: 40

**FILED AS OF DATE**: 20260618

**DATE AS OF CHANGE**: 20260618

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Gix Internet Ltd.
- **CENTRAL INDEX KEY:** 0001782265
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** L3
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20FR12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43362
- **FILM NUMBER:** 261102757

**BUSINESS ADDRESS:**
- **STREET 1:** 14 SHENKAR STREET
- **CITY:** HERZELIA
- **STATE:** L3
- **ZIP:** 1467254
- **BUSINESS PHONE:** 972-542288897

**MAIL ADDRESS:**
- **STREET 1:** 14 SHENKAR STREET
- **CITY:** HERZELIA
- **STATE:** L3
- **ZIP:** 1467254

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Algomizer Ltd.
- **DATE OF NAME CHANGE:** 20190829

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Algomizer Ltd
- **DATE OF NAME CHANGE:** 20190711

**As filed the Securities and Exchange Commission on June 18, 2026.**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 20-F**

☒ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No.:

**Gix Internet Ltd.**

*(Exact name of registrant as specified in its charter)*

*Translation of registrant's name into English:* Not applicable

---

| | |
|:---|:---|
| **State of Israel** | **2 Jabotinsky** **St, Atrium Tower, 18th floor**<br> **Ramat Gan,** **Israel 5252903** |
| *(Jurisdiction of incorporation or organization)* | *(Address of principal executive offices)* |

---

**Amir Nardimon**

**2 Jabotinsky St, Atrium Tower, 18th floor**

**Ramat Gan,** **Israel 5252903**

***Tel: +972-9-774-1505***

***Fax: +972-9-774-1534***

*(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)*

Securities registered or to be registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class to be registered** | **Trading Symbol(s)** | **Name of each exchange on which each class is to be registered** |
| Ordinary shares, no par value per share | GIXI | The Nasdaq Stock Market LLC |

---

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Number of outstanding shares of each of the issuer's classes of capital or ordinary shares as of June 18, 2026: 2,492,351 ordinary shares.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act of 1934. Yes ☐ No ☐

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months. Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ <br> Emerging Growth Company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

†The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing.

U.S. GAAP ☒ International Financial Reporting Standards as issued by the <br> International Accounting Standards Board ☐ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company. Yes ☐ No ☒

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [PRESENTATION OF FINANCIAL AND OTHER INFORMATION](#AS_001) | [PRESENTATION OF FINANCIAL AND OTHER INFORMATION](#AS_001) | ii |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#AS_002) | [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#AS_002) | iii |
| [PART I](#AS_003) |  | 1 |
| ITEM 1. | [IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](#AS_004) | 1 |
| ITEM 2. | [OFFER STATISTICS AND EXPECTED TIMETABLE](#AS_005) | 1 |
| ITEM 3. | [KEY INFORMATION](#AS_006) | 1 |
| A. | [\[Reserved\]](#AS_007) | 1 |
| B. | [Capitalization and Indebtedness](#AS_008) | 1 |
| C. | [Reasons for the Offer and Use of Proceeds](#AS_009) | 2 |
| D. | [Risk Factors](#AS_010) | 2 |
| ITEM 4. | [INFORMATION ON THE COMPANY](#AS_011) | 42 |
| A. | [History and Development of the Company](#AS_012) | 42 |
| B. | [Business Overview](#AS_013) | 43 |
| C. | [Organizational Structure](#rma_001) | 53 |
| D. | [Property, Plants and Equipment](#AS_015) | 54 |
| ITEM 4A. | [UNRESOLVED STAFF COMMENTS](#AS_016) | 54 |
| ITEM 5. | [OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#AS_017) | 55 |
| A. | [Operating Results](#AS_018) | 58 |
| B. | [Liquidity and Capital Resources](#rma_002) | 62 |
| C. | [Research and Development, Patents and Licenses](#ar_002) | 64 |
| D. | [Trend Information](#ar_003) | 64 |
| E. | [Critical Accounting Estimates](#ar_004) | 64 |
| ITEM 6. | [DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#ar_005) | 66 |
| A. | [Directors and Senior Management](#ar_006) | 66 |
| B. | [Compensation](#ar_007) | 68 |
| C. | [Board Practices](#ar_008) | 70 |
| D. | [Employees](#ar_009) | 83 |
| E. | [Share Ownership](#ar_010) | 83 |
| ITEM 7. | [MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#ar_012) | 85 |
| A. | [Major Shareholders](#ar_013) | 85 |
| B. | [Related Party Transactions](#ar_014) | 87 |
| C. | [Interests of Experts and Counsel](#ar_015) | 90 |
| ITEM 8. | [FINANCIAL INFORMATION](#ar_016) | 90 |
| A. | [Consolidated Statements and Other Financial Information](#ar_017) | 90 |
| B. | [Significant Changes](#ar_018) | 90 |
| ITEM 9. | [THE OFFER AND LISTING](#ar_019) | 90 |
| A. | [Offer and Listing Details](#ar_020) | 90 |
| B. | [Plan of Distribution](#ar_021) | 90 |
| C. | [Markets](#ar_022) | 90 |
| D. | [Selling Shareholders](#ar_023) | 90 |
| E. | [Dilution](#ar_024) | 90 |
| F. | [Expenses of the Issue](#ar_025) | 90 |
| ITEM 10. | [ADDITIONAL INFORMATION](#ar_026) | 91 |
| A. | [Share Capital](#ar_027) | 91 |
| B. | [Articles of Association](#ar_028) | 92 |
| C. | [Material Contracts](#ar_029) | 95 |
| D. | [Exchange Controls](#ar_030) | 95 |
| E. | [Taxation](#ar_031) | 95 |
| F. | [Dividends and Paying Agents](#ar_032) | 105 |
| G. | [Statement by Experts](#ar_033) | 105 |
| H. | [Documents on Display](#ar_034) | 105 |
| I. | [Subsidiary Information](#ar_035) | 106 |
| J. | [Annual Report to Security Holders](#ar_036) | 106 |
| ITEM 11. | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#ar_037) | 106 |
| ITEM 12. | [DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#ar_038) | 106 |
| [PART II](#ar_043) |  | 107 |
| ITEM 13. | [DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#ar_044) | 107 |
| ITEM 14. | [MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#ar_045) | 107 |
| ITEM 15. | [CONTROLS AND PROCEDURES](#ar_046) | 107 |
| ITEM 16. | [\[RESERVED\]](#ar_047) | 107 |
| ITEM 16A. | [AUDIT COMMITTEE FINANCIAL EXPERT](#ar_048) | 107 |
| ITEM 16B. | [CODE OF ETHICS](#ar_049) | 107 |
| ITEM 16C. | [PRINCIPAL ACCOUNTANT FEES AND SERVICES](#ar_050) | 107 |
| ITEM 16D. | [EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#ar_051) | 107 |
| ITEM 16E. | [PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#ar_052) | 107 |
| ITEM 16F. | [CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT](#ar_053) | 107 |
| ITEM 16G. | [CORPORATE GOVERNANCE](#ar_054) | 107 |
| ITEM 16H. | [MINE SAFETY DISCLOSURE](#ar_055) | 109 |
| ITEM 16I | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#ar_056) | 109 |
| ITEM 16J | [INSIDER TRADING POLICIES](#ar_057) | 109 |
| ITEM 16K | [CYBERSECURITY](#ar_058) | 109 |
| [PART III](#ar_059) |  | 110 |
| ITEM 17. | [FINANCIAL STATEMENTS](#ar_060) | 110 |
| ITEM 18. | [FINANCIAL STATEMENTS](#ar_061) | 110 |
| ITEM 19. | [EXHIBITS](#ar_062) | 110 |
| [SIGNATURES](#ar_063) | [SIGNATURES](#ar_063) | 111 |

---

i

**PRESENTATION OF FINANCIAL AND OTHER INFORMATION**

We were incorporated under the laws of the State of Israel on July 24, 1978. Our ordinary shares are listed on the Tel Aviv Stock Exchange, or TASE, under the symbol "GIX". We are filing this registration statement in anticipation of the listing of our ordinary shares on the Nasdaq Capital Market.

Unless the context otherwise requires, references in this registration statement to the "Company," "Gix," "we," "us," "our" and other similar designations refer to Gix Internet Ltd and reference to "Quantum X Labs," "Quantum" and "QXL" refer to Quantum X Labs Inc. (formerly known as Viewbix Inc.).

**Financial Statements**

Our financial statements were prepared in accordance with generally accepted accounting principles in the United States, or US GAAP. Our reporting currency and functional currency is the U.S. dollar. In this Registration Statement, the terms "shekel," "Israeli shekel" and "NIS" refer to New Israeli Shekels, the lawful currency of the State of Israel, and the terms "dollar," "U.S. dollar" or "$" refer to United States dollars, the lawful currency of the United States of America. Unless otherwise indicated, or the context otherwise requires, references in this registration statement to financial and operational data for a particular year refer to the fiscal year of our Company ended December 31 of that year. Unless derived from our financial statements or otherwise indicated, U.S. dollar translations of NIS amounts presented in this registration statement are translated using the rate of NIS 3.19 to US$1.00, the exchange rate reported by the Bank of Israel on December 31, 2025.

All references to "shares" or "ordinary shares" in this registration statement refer to ordinary shares of Gix Internet Ltd., no par value per share.

**Trademarks**

All trademarks or trade names referred to in this registration statement are the property of their respective owners. Solely for convenience, the trademarks and trade names in this registration statement are referred to without the <sup>®</sup> and™ symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto. We do not intend the use or display of other companies' trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

**Market, Industry and Other Data**

This Registration Statement contains estimates, projections and other information concerning our industry, our business, and the markets for our products. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information. Unless otherwise expressly stated, we obtained this industry, business, market and other data from our own internal estimates and research as well as from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry and general publications, government data and similar sources. None of the reports or studies cited in this registration statement were commissioned by the Company.

In addition, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors." These and other factors could cause our future performance to differ materially from our assumptions and estimates. See "Cautionary Note Regarding Forward-Looking Statements."

ii

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Certain information included or incorporated by reference in this registration statement may be deemed to be "forward-looking statements". Forward-looking statements are often characterized by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "estimate," "continue," "believe," "should," "intend," "project" or other similar words, but are not the only way these statements are identified.

These forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, statements that contain projections of results of operations or of financial condition, expected capital needs, and expenses, statements relating to the research, development, completion and use of our products, and all statements (other than statements of historical facts) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future.

Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things:

● our progress in transitioning our business strategy;

● we have a history of operating losses, we may incur additional losses in the future;

● we will need additional funding. If we are unable to raise capital, we will be forced to reduce or eliminate our operations;

● the overall global economic and macroeconomic environment;

● certain of our subsidiaries' dependencies on key employees;

● changing laws, regulations, standards and contractual obligations related to privacy, data protection and data security and our and our subsidiaries' ability to comply with them;

● Quantum X Labs Inc.'s performance, financial condition and results of operations;

● our ability to realize the benefits of our acquisitions of Deliverz.ai Ltd., including Deliverz.ai Ltd.'s potential commercial success;

● the success of our strategic relationships with third parties;

● competition from competitors

● our ability to secure and maintain intellectual property protections;

● patent and other intellectual property litigation that could be costly, result in the diversion of management's attention, require us to pay damages and force us to discontinue selling our products;

● conditions in Israel, including the current security situation in Israel, and other conflicts in the region;

● raising additional capital by issuing securities may cause dilution to existing shareholders;

● acceptance of our business model by investors; and

those factors referred to in "Item 3.D. Risk Factors," "Item 4. Information on the Company," and "Item 5. Operating and Financial Review and Prospects," as well as in this registration statement generally.

Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. We have based these forward-looking statements on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate.

The forward-looking statements made in this registration statement relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this registration statement to reflect events or circumstances after the date of this registration statement or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

Important factors that could cause actual results, developments, and business decisions to differ materially from those anticipated in these forward-looking statements are listed below. The below is also a summary of the risk factors described in Item 3.D "Key Information - Risk Factors" of this registration statement.

iii

**PART I**

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Directors and Senior Management**

For the names, business addresses and functions of our directors and senior management, see "Item 6. Directors, Senior Management and Employees – A. Directors and Senior Management" and "Item 6. Directors, Senior Management and Employees – C. Board Practices."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Advisers**

Our principal legal advisers with respect to U.S. federal laws is Greenberg Traurig, P.A., located at 132 Menachem Begin Road, Tel Aviv, Israel. Our principal legal advisers with respect to Israeli corporate laws is Meitar \| Law Offices, located at 16 Abba Hillel Silver Rd., Ramat Gan 52506, Israel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Auditors**

Our independent auditor is Brightman Almagor Zohar & Co., a firm in the Deloitte Global Network, Certified Public Accountants, located at 132 Menachem Begin Road, Tel Aviv, 6701101 Israel.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not applicable.

**ITEM 3. KEY INFORMATION**

**A. [Reserved]**

**B. Capitalization and Indebtedness**

The following table sets forth our cash and cash equivalents and our capitalization as of December 31, 2025:

● on an actual basis; and

● on a pro forma basis giving effect to the issuance and sale of 417,272 ordinary shares and 417,272 warrants at a purchase price of NIS 22.00 (approximately $6.89) per share and associated warrant in a private placement in May 2026 for aggregate gross proceeds of NIS 9.18 million (approximately $2.88 million), as if such event had occurred on December 31, 2025.

This has been derived from our consolidated financial statements included elsewhere in this registration statement. You should read this information together with our financial statements and the related notes and with "Item 5. Operating and Financial Review and Prospects" appearing elsewhere in this registration statement.

---

| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Actual** | **Pro Forma** |
|  | ***(audited)*** | ***(unaudited)*** |
| ***U.S. dollars in thousands*** | | |
| Cash and cash equivalents | 205 | 3083 |
| **Shareholders' Equity:** |  |  |
| Ordinary shares |  |  |
| Foreign currency translation reserve | (303) |  |
| Additional paid-in capital | 51473 | 54351 |
| Accumulated deficit | (41383) | (41383) |
| Equity attributed to shareholders of Gix Internet Ltd. | 9787 | 12665 |
| Non-controlling interests |  |  |
| **Total equity** | 9787 | 12665 |

---

*SUMMARY HISTORICAL AND PRO FORMA CONSOLIDATED FINANCIAL DATA*

 

The following tables set forth our summary historical consolidated financial data and summary unaudited pro forma condensed combined data as of and for the periods presented. The summary historical consolidated financial data for the years ended December 31, 2025 and 2024 are derived from our audited consolidated financial statements and the related notes appearing elsewhere in this registration statement. The historical results presented below are not necessarily indicative of financial results to be achieved in future periods, and our interim results are not necessarily indicative of results to be expected for a full fiscal year or any other interim period, and should be read in conjunction with the sections titled *"Item 3.B.—Capitalization and Indebtedness", "Item 5. Operating and Financial Review and Prospects"*, and our audited and unaudited consolidated financial statements and accompanying notes, which are included elsewhere in this registration statement.

The unaudited pro forma condensed combined statements of comprehensive income for the year ended December 31, 2025, have been derived by aggregating the historical financial statements of Gix Internet Ltd. and Deliverz.ai Ltd., including certain pro forma adjustments to such aggregated financial statements to give effect to our acquisition of Deliverz.ai Ltd., the deconsolidation of Quantum X Labs Inc. and the equity method accounting of Quantum Inc. as if it had occurred on January 1, 2025. The summary unaudited pro forma condensed consolidated financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results or financial position that would have occurred if our acquisition of Deliverz.ai Ltd. had been consummated on the dates indicated, nor is it indicative of future operating results or financial position. See "*Unaudited Pro Forma Condensed Combined Financial Information*" for a complete description of the adjustments and assumptions underlying the summary unaudited pro forma condensed consolidated financial data set forth below.

---

| | | | |
|:---|:---|:---|:---|
| ***(in thousands of USD, except share and per share data)*** | **Year Ended December 31,** | **Year Ended December 31,** | **Pro Forma**<br> **Year**<br> **Ended**<br> **December**<br> **31, 2025**<br> **(\*)** |
|  | **2025** | **2024** |  |
| **Statements of Operations Data:** |  |  |  |
| Revenues | $7744 | $26941 | $13 |
| Traffic-acquisition and related costs | 6336 | 21987 |  |
| Gross profit | 1408 | 4954 | 13 |
| Research and development | 825 | 1891 | 681 |
| Selling and marketing | 600 | 1643 | 51 |
| General and administrative | 2297 | 2702 | 894 |
| Depreciation and amortization | 1170 | 1300 | 323 |
| Goodwill impairment | 6105 | 2025 |  |
| Other expenses (income), net | 1327 | 34 | 639 |
| Operating loss | (10916) | (4641) | (2575) |
| Gain from deconsolidation of Quantum X Labs Inc. | 6731 |  |  |
| Financial expenses, net | 11536 | 3112 | 353 |
| Equity loss from investments accounted for using the equity method | (158) |  | (5416) |
| Loss before income taxes | (15879) | (7753) | (8344) |
| Income tax benefit | 145 | 7 | 74 |
| Net loss | (15734) | (7746) | (8270) |

---

(\*) The pro forma condensed combined statements of comprehensive income reflect the adjustments made to gives effect the accounting of: (1) the Acquisition of Deliverz which was completed on July 10, 2025, (2) the deconsolidation of Quantum X Labs Inc. which was completed on September 25, 2025, and (3) the Company's ownership of 26.42% of Quantum X Labs Inc's outstanding shares as of the date of deconsolidation of Quantum X Labs Inc. for all periods included in the unaudited pro forma condensed combined statements of comprehensive income. The unaudited pro forma condensed combined statements of comprehensive income for the period gives effect to the adjustments made to reflect the accounting for the Acquisitions of Deliverz.ai and the deconsolidation of Quantum X Labs Inc. as if the adjustments related to both transactions were made on January 1, 2025.

**C. Reasons for the Offer and Use of Proceeds**

Not applicable.

**D. Risk Factors**

*Our ordinary shares are highly speculative in nature, involve a high degree of risk and should be purchased only by persons who can afford to lose their entire amount invested in the ordinary shares. Accordingly, prospective investors should carefully consider, along with other matters referred to herein, the following risk factors in evaluating our business before purchasing any ordinary shares. If any of the following risks actually occurs, our business, financial condition or operating results could be materially adversely affected. In such case, you may lose all or part of your investment. You should carefully consider the risks described below and the other information in this Registration Statement before investing in our ordinary shares.*

 

**Risk Factors Summary**

Our business is subject to numerous risks and uncertainties, including those highlighted in the section titled "Risk Factors" immediately following this prospectus summary. These risks include, among others, the following:

**Risks Related to Our Financial Condition and Capital Requirements**

● We have a history of operating losses, we may incur additional losses in the future and our ability to grow sales and achieve profitability is unpredictable.

● We will need additional funding. If we are unable to raise capital, we will be forced to reduce or eliminate our operations.

● Our subsidiary, Deliverz.ai Ltd ("Deliverz.ai"), has a limited operating history, which may make it difficult to evaluate its business and prospects.

**Risks Related to Our Business, Operations and Industry**

● We are in the process of transitioning our business strategy. We cannot guarantee that any of these changes will result in any value to our shareholders.

● If we fail to effectively manage our growth, we may not be able to source autonomous mobile robot (AMR) hardware from third-party original equipment manufacturers (OEMs), integrate our platform, deploy and operate, market, and launch new generations of our integrated robotics solutions successfully.

● Our revenue model emphasizes software subscriptions (SaaS), Robot-as-a-Service (RaaS), and Delivery-as-a-Service (DaaS), together with integration and managed services. Our future growth depends in part upon the successful deployment of these software subscriptions.

● Our revenues and profits are subject to fluctuations.

● A significant portion of our revenue is concentrated with one customer.

● Our business plans require additional capital. Our future capital needs may require us to sell additional equity or debt securities that may dilute our stockholders or contain terms unfavorable to us or our investors.

● The benefits of our products to customers and projected return on investment have not been substantiated through long-term trials or use.

● Even if we successfully market our products and services, the purchase or subscription, adoption and use of the products and services may be materially and negatively impacted if our customers resist the use and adoption of the products and services.

● Our systems, products, technologies and services and related equipment may have shorter useful lives than we anticipate.

● Our OEM partners and their suppliers rely on complex manufacturing processes; unexpected malfunctions, capacity constraints or supply shortages at those partners could delay or limit AMR supply that we procure and deploy, increase costs, or reduce performance.

● We may be unable to adequately control the costs associated with our operations.

● Our business, operating results and growth rates may be adversely affected by current or future unfavorable economic and market conditions and adverse developments with respect to financial institutions and associated liquidity risk.

● Our failure to attract and retain highly qualified personnel in the future could harm our business.

● Litigation or legal proceedings could expose us to significant liabilities, occupy a considerable amount of our management's time and attention, and damage our reputation.

● If we are unable to develop, manage and maintain critical third-party business relationships, our business may be adversely affected.

● Our robots rely on sophisticated software technology that incorporate third-party components and networks to operate.

● The benefits to customers of our products could be supplanted by other technologies or solutions or competitors' products that utilize similar technology to ours in a more effective way.

● We have limited experience commercializing our products at a large scale and may not be able to do so efficiently or effectively.

● Defects, glitches, or malfunctions in our products or the software that operates them, failure of our products to perform as expected, connectivity issues or operator errors may result in product recalls, lower than expected return on investment for customers and cause significant safety concerns, each of which could adversely affect our results of operations, financial condition and our reputation.

● We operate in a competitive industry that is subject to rapid technological change, and competitors may have or attain more resources and/or greater market recognition than we do.

**Risks Related to Our Intellectual Property**

● If we are unable to protect our intellectual property, our ability to maintain any technological or competitive advantage over our competitors and potential competitors would be adversely impacted, and our business may be harmed.

● If we or any of our partners are sued for infringing the intellectual property rights of third parties, such litigation would be costly and time consuming, and an unfavorable outcome in any such litigation could have a material adverse effect on our business. We may be involved in lawsuits to protect or enforce our patents or the patents of our licensors, which could be expensive, time-consuming and unsuccessful.

● Changes in patent laws or patent jurisprudence could diminish the value of patents in general, thereby impairing our ability to protect our products.

● Security breaches and other disruptions could compromise our proprietary information and expose us to liability, which would cause our business and reputation to suffer.

● If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets of interest and our business may be adversely affected.

● We may use third-party open source software components in future products, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to sell such products.

**Risks Related to Government Regulation and Other Legal Compliance Matters**

● Our AMRs operate primarily indoors within customer facilities and, in some sites, along controlled-campus outdoor routes between buildings. Any safety incident, integration failure or operator error could jeopardize commercial relationships.

● Laws, regulations, and other legislative efforts related to climate change, environmental concerns, and health and safety could result in increased operating costs, reduced demand for our products and services, or the loss of future business.

● We are subject to cybersecurity risks to our operational systems, security systems, infrastructure, integrated software in our products and data processed by us or third-party vendors.

● We are subject to evolving laws, regulations, standards, policies, and contractual obligations related to data privacy and security laws and regulations, and our actual or perceived failure to comply with such obligations could harm our reputation, subject us to significant fines and liability, or otherwise adversely affect our business, prospects, financial condition and operating results.

**Risks Related to Quantum X Labs's Business and Industry**

● Quantum X Labs's success depends, in part, upon the continued demand of digital advertising.

● Online platform updates, including operating systems, search engines, browsers and social media might affect Quantum X Labs's ability to generate revenues, temporarily or permanently.

● Reliance upon Quantum X Labs's top customers may adversely affect its revenue and operating results. Reliance upon material suppliers may adversely affect Quantum X Labs's revenue and operating results.

● Quantum X Labs may not be able to receive credit facility to fund its operations on favorable terms, if at all. Quantum X Labs may be unable to pay its obligations when they become due.

● A loss of the services of Quantum X Labs's technology vendors could adversely affect the execution of its business strategy.

**Risks Related to Quantum X Labs's Competition**

● Large and established internet and technology companies, such as Google and Facebook, play a substantial role in the digital advertising market and may significantly impair Quantum X Labs's ability to operate in this industry.

● The digital advertising market is highly competitive. If Quantum X Labs cannot compete effectively in this market, its revenues are likely to decline.

**Risks Related to Israeli Law and Our Operations in Israel**

● Our headquarters and other significant operations are located in Israel and, therefore, our results may be adversely affected by political, economic and military instability in Israel.

● Our operations may be disrupted as a result of the obligation of management or key personnel to perform military service.

● We are exposed to fluctuations in currency exchange rates.

**Risks Related to Ownership of Our Ordinary Shares**

● The market price of our ordinary shares may be highly volatile, and you could lose all or part of your investment.

● There has been no prior public market in the United States for our ordinary shares, and an active trading market in the United States may not develop.

● Our management team will have broad discretion in making strategic decisions to execute their growth plans, and there can be no assurance that our management's decisions will result in successful achievement of our business objectives or will not have unintended consequences that negatively impact our growth prospects.

● Our securities will be traded on more than one market or exchange and this may result in price variations.

● As a "foreign private issuer" we are subject to less stringent disclosure requirements than domestic registrants and are permitted and decided to follow certain home country corporate governance practices instead of otherwise applicable SEC and Nasdaq requirements, which may result in less protection than is accorded to investors under rules applicable to domestic U.S. registrants.

● We will incur significant increased costs as a result of the listing of our securities for trading on Nasdaq. By becoming a public company in the United States, our management will be required to devote substantial time to new compliance initiatives as well as compliance with ongoing U.S. requirements.

The estimates of market opportunity and forecasts of market growth included in this registration statement may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business could fail to grow at similar rates, or at all.

**Risks Related to Our Financial Condition and Capital Requirements**

***We have a history of operating losses, we may incur additional losses in the future and our ability to grow sales and achieve profitability is unpredictable.***

As of December 31, 2025 and 2024, we had an accumulated deficit of $41.38 million and $38.08 million, respectively, and incurred total operating losses of approximately $10.92 million and $4.64 million in the years ended on December 31, 2025 and 2024, respectively. Our losses have had, and will continue to have, an adverse effect on our shareholders' equity and working capital. Any failure to achieve and maintain profitability would continue to have an adverse effect on our shareholders' equity and working capital and could result in a decline in our share price or cause us to cease operations.

Our ability to reach profitability depends on many factors, which include:

● successfully implementing our business strategy;

● increasing revenues; and

● controlling costs.

There can be no assurance that we will be able to successfully implement our business plan, meet our challenges and become profitable in the future.

***We will need additional funding. If we are unable to raise capital, we will be forced to reduce or eliminate our operations.***

During the years ended December 31, 2025 and 2024, we incurred net losses of $15.73 million, and $7.75 million, respectively, mainly due to operating losses from our consolidated financial reports of approximately $10.92 million and $4.64 million, respectively.

As of December 31, 2025, we had a total cash and cash equivalents balance and restricted deposits of approximately $205 thousand. Our management expects that we will continue to generate operating losses. Our management plans to continue to fund its operations primarily through utilization of its financial resources. In addition, we may raise additional capital or realize some of our investments in other entities in order to fund our operating needs. Our management is of the opinion that based on our current operating plan it will be able to carry out its plan for more than a year after the issuance date of this registration statement. However, we anticipate that we are likely to continue to incur significant losses for at least the next year. There is no assurance however, that we will be successful in obtaining the level of financing needed for our operations. If we are unable to obtain additional sufficient financing our business and results of operations will be materially harmed.

Even if we are able to continue to finance our business, the sale of additional equity or debt securities could result in dilution to our current shareholders and could require us to grant a security interest in our assets. If we raise additional funds through the issuance of debt securities, these securities may have rights senior to those of our ordinary shares and could contain covenants that could restrict our operations. In addition, we may require additional capital beyond our currently forecasted amounts to achieve profitability. Any such required additional capital may not be available on reasonable terms, or at all.

***Our subsidiary, Deliverz.ai, has a limited operating history, which may make it difficult to evaluate its business and prospects.***

Historically, we have carried out ad-tech operations via our digital advertising business unit through our stake in Quantum X Labs in which as of December 31, 2025 and June 18, 2026, we held 26.42% and 21.13%, respectively, of its outstanding share capital. However, as a result of certain departures from Quantum X Labs's board of directors and the dilution in our holdings in Quantum X Labs, while our digital advertising business unit remains, and is expected to continue to remain, an important part of our business, we are in the early stages of transitioning our active business operations to be conducted primarily through Deliverz.ai. Through our acquisition of Deliverz.ai, we have diversified our investments into new markets and industries and have adjusted our exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. As we progresses in transitioning our business strategy, it is expected that Deliverz.ai will carry out our primary operational activities and be the vehicle through which we pursue our business strategy. See "Information on Our Company—B. Business Overview— Quantum X Labs, Investment in Digital Advertising and Changes in our Business" and "Item 5 –Operating and Financial Review and Prospects—Overview— Changes in our Business" for additional information.

We, through our wholly-owned subsidiary, Deliverz.ai, face the risks associated with businesses in their early stages, with limited operating histories and whose prospects are hard to evaluate. Any evaluation of our business and our prospects must be considered in light of the uncertainties, delays, difficulties and expenses commonly experienced by companies at this stage, which generally include unanticipated problems and additional costs relating to the development and testing of products, product approval or clearance, regulatory compliance, production, product introduction and marketing, and competition. Many of these factors are beyond the control of our management. In addition, our performance will be subject to other factors beyond our control, including general economic conditions and conditions in the robotics industry. Accordingly, our business and success face risks from uncertainties faced by developing companies in a competitive environment. There can be no assurance that our efforts will be successful or that we will ultimately be able to attain profitability.

**Risks Related to Our Business, Operations and Industry**

***We are in the process of transitioning our business strategy. We cannot guarantee that any of these changes will result in any value to our shareholders.***

Historically, we have carried out ad-tech operations via our digital advertising business unit through our stake in Quantum X Labs. However, as a result of certain departures from Quantum X Labs's board of directors and the dilution in our holdings in Quantum X Labs, while our digital advertising business unit remains, and is expected to continue to remain an important part of our business, we are in the early stages of transitioning our active business operations to be conducted primarily through Deliverz.ai. Through our acquisition of Deliverz.ai, we have diversified our investments into new markets and industries and have adjusted our exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. As we progresses in transitioning our business strategy, it is expected that Deliverz.ai will carry out our primary operational activities and be the vehicle through which we pursue our business strategy. See "Information on Our Company—B. Business Overview— Quantum X Labs, Investment in Digital Advertising and Changes in our Business" and "Item 5 –Operating and Financial Review and Prospects—Overview— Changes in our Business" for additional information.

Through our acquisition of Deliverz.ai, we have diversified our investments into new markets and industries and adjusted our exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. We cannot guarantee that these strategic decisions will derive the anticipated value to our shareholders, or any value at all.

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***If we fail to effectively manage our growth, we may not be able to source autonomous mobile robot (AMR) hardware from third-party original equipment manufacturers (OEMs), integrate our platform, deploy and operate, market, and launch new generations of our integrated robotics solutions successfully.***

We intend to invest significantly in order to expand our business. Any failure to manage our growth effectively could materially and adversely affect our business, prospects, financial condition, and operating results. We intend to expand our operations significantly. We expect our expansion to include:

● expanding the management, engineering, and product teams;

● identifying and recruiting individuals with the appropriate relevant experience;

● hiring and training new personnel;

● launching commercialization of new products and services;

● forecasting OEM supply availability, deployment schedules and revenue;

● entering into relationships with one or more third-party OEM AMR suppliers and systems-integration partners and third-party OEM AMR suppliers and component vendors and/or expanding our internal deployment, integration, and field-service capabilities;

● controlling expenses and investments in anticipation of expanded operations;

● carrying out acquisitions and entering into collaborations, in-licensing arrangements, joint ventures, strategic alliances or partnerships;

● expanding and enhancing internal information technology, safety, and security systems;

● conducting demonstrations;

● entering into agreements with suppliers and service providers; and

● implementing and enhancing administrative infrastructure, systems, and processes.

As we grow and expand our market penetration, we intend to continue to hire a significant number of additional personnel, including integration, field deployment, remote operations, software, and service, and operations personnel and service technicians for our AMR-based integrated robotics solutions and services. Because of the innovative nature of our technology, individuals with the necessary experience may not be available to hire, and as a result, we will need to expend significant time and expense to recruit and retain experienced employees and appropriately train any newly hired employees. Competition for individuals with experience integrating and operating AMRs, building/facility systems (elevators/access control), and enterprise logistics software is intense, and we may not be able to attract, integrate, train, motivate or retain additional highly qualified personnel. The failure to attract, integrate, train, motivate and retain these additional employees could seriously harm our business, prospects, financial condition and operating results.

***Our revenue model emphasizes software subscriptions (SaaS), Robot-as-a-Service (RaaS), and Delivery-as-a-Service (DaaS), together with integration and managed services. Our future growth depends in part upon the successful deployment of these software subscriptions.***

Our revenue model emphasizes software subscriptions (SaaS), Robot-as-a-Service (RaaS), and Delivery-as-a-Service (DaaS), together with integration and managed services. Future payments that we will make to cloud platforms and payments we will receive from customers are hard to predict and will be based on different terms and conditions. We may also be at risk if there will be gaps between account receivables and account payables. In addition, attracting new customers to our offerings may involve evaluation processes that prospects may not be willing to cover before experiencing satisfying results with our products and services, while we will continue to accrue service costs.

We believe any future revenue growth will depend on a number of factors, including, among other things, our ability to:

● continually enhance and improve our products and services, including the features, integrations and capabilities we offer, and develop or otherwise introduce new products and solutions;

● attract new customers and maintain our relationships with, and increase revenue from, our existing customers;

● provide excellent customer and end user experiences;

● maintain the security and reliability of our products and services;

● introduce and grow adoption of our offerings in new markets;

● hire, integrate, train and retain skilled personnel;

● adequately expand our sales and marketing force and distribution channels;

● obtain, maintain, protect and enforce intellectual property protection for our platform and technologies;

● expand into new technologies, industries and use cases;

● expand and maintain our partner ecosystem;

● comply with existing and new applicable laws and regulations, including those related to data privacy and security;

● price our offerings effectively and determine appropriate contract terms;

● determine the most appropriate investments for our limited resources;

● successfully compete against established companies and new market entrants; and

● increase awareness of our brand on a global basis.

If we are unable to accomplish any of these objectives, any revenue growth will be impaired. Many factors may contribute to declines in growth rate, including increased competition, slowing demand for our offerings, a failure by us to continue capitalizing on growth opportunities, the maturation of our business, and global economic downturns, among others. If our growth rate declines as a result of this or any of the other factors described above, investors' perceptions of our business and the market price of our ordinary shares could be adversely affected.

Our ability to forecast our future results of operations is subject to a number of uncertainties, including our ability to effectively plan for and model future growth. We have encountered in the past, and may encounter in the future, risks and uncertainties frequently experienced by growing companies in rapidly changing industries that may prevent us from achieving the objectives outlined herein. If we fail to achieve the necessary level of efficiency in our organization as it grows, or if we are not able to accurately forecast future growth, our business would be adversely affected. Moreover, if the assumptions that we use to plan our business are incorrect or change in reaction to changes in our market, or if we are unable to maintain consistent revenue or revenue growth, the market price of our ordinary shares could be volatile, and it may be difficult to achieve and maintain profitability.

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***Our revenues and profits are subject to fluctuations.***

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It is difficult to accurately forecast our revenues and operating results, and these could fluctuate in the future due to a number of factors. Our growth depends on enterprise budgets and procurement cycles (for example, hospitals) and on demonstrating clear return on investment (ROI). Macroeconomic or budgetary pressures, staffing dynamics, procurement processes, and competing priorities can delay or limit deployments. Our operating results may fluctuate from year to year due to the factors listed above and others not listed. At times, these fluctuations may be significant and could impact our ability to operate our business.

***A significant portion of our revenue is concentrated with one customer.***

With respect to our Deliverz.ai business unit, our revenue is expected to initially be concentrated with a single early enterprise customer. A disruption in our relationship with this customer would adversely affect our results of operations. The customer's demand for our products may fluctuate due to factors beyond our control. Any significant reduction in orders from this customer could have a material adverse effect on our business, results of operations, or financial condition, as could their failure to pay amounts owed to us.

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With respect to our digital advertising business unit, as of December 31, 2025, Gix Media Ltd. ("Gix Media"), a wholly-owned subsidiary of Quantum X Labs, had one major customer, a reputable international search engine ("Gix Major Customer"). Gix Media generated revenues of approximately $1.23 million from the Gix Major Customer, constituting approximately 78% of the total revenues of Gix Media during the year ended December 31, 2025. Our relationship with this Gix Major Customer originated in 2013 upon the signing of an exclusive cooperation agreement, which is extended from time to time. In March 2020, an extension of the foregoing agreement was signed, whereby the term of the agreement was extended until October 26, 2023, was automatically renewed for an additional one year period until October 26, 2024, and will continue to be automatically renewed for additional one year periods, unless either party gives notice of non-renewal 90 days' in advance. We are highly dependent on the material agreement with the Gix Major Customer. If this material agreement is terminated or substantially amended (not on favorable terms), we would experience a material decrease in our revenue from our digital advertising business unit or the profits it generates and would be forced to seek alternative customers, at less competitive terms or accelerate the business we have with the current search engines. There are few companies in the market that provide internet search and search advertising services with whom we can directly engage with in the same manner which we are engaged with our Gix Major Customer. Such companies are substantially the only participants in western markets, and competitors do not offer as much coverage through sponsored links or searches. We may divert our operations and user traffic to other third-party partners which provide search feed to search engines, however we cannot guarantee that we will be successful. If we fail to quickly locate, negotiate and finalize alternative arrangements or otherwise expedite current operations we have with such alternative search providers, or if we do, but the alternatives do not provide for terms that are as favorable as those currently provided and utilized, we would experience a material reduction in our revenue and, in turn, our business, financial condition and results of operations would be adversely affected.

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***Our business plans require additional capital. Our future capital needs may require us to sell additional equity or debt securities that may dilute our stockholders or contain terms unfavorable to us or our investors.***

We will need additional capital to operate our business and fund our capital expenditures for the next several years. The level and timing of future expenditure will depend on a number of factors, many of which are outside our control. While we expect that we will have sufficient capital to fund our currently planned operations, it is possible that we will need to raise additional capital to fund our business, including to finance ongoing research and development costs, any significant unplanned or accelerated expenses, and new strategic alliances or acquisitions. The fact that we have limited experience commercializing our delivery AMR-based integrated robotics solutions on a large scale, coupled with the fact that our products represent a new product category in the commercial and delivery robotic market, means we have limited historical data on the demand for our AMR-based integrated robotics solutions. In addition, we expect our capital expenditures to continue to be significant in the foreseeable future as we continue generational improvements for our commercial products, and that our level of capital expenditures will be significantly affected by customer demand for our AMR-based integrated robotics solutions. As a result, our future capital requirements may be uncertain and actual capital requirements may be different from those we currently anticipate. We may need to seek equity or debt financing to finance a portion of our capital expenditures. Such financing might not be available to us in a timely manner or on terms that are acceptable, or at all, or that such funds, if raised, would be sufficient.

Our ability to obtain the necessary financing to carry out our business plan is subject to a number of factors, including general market conditions and investor acceptance of our business model. These factors may make the timing, amount, terms, and conditions of such financing unattractive or unavailable to us. If we are unable to raise sufficient funds, we will have to significantly reduce our spending, delay or cancel our planned activities or substantially change our corporate structure. We might not be able to obtain any funding, and we might not have sufficient resources to conduct business as projected, both of which could mean that we would be forced to curtail or discontinue our operations.

In addition, our future capital needs and other business reasons could require us to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity or equity-linked securities could dilute our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and financing covenants that would restrict our operations.

If we cannot raise additional funds when we need or want them, we may be forced to curtail or abandon our growth plans, which could adversely impact the Company, its business, development, financial condition, operating results or prospects.

***Our products and services are disruptive to the delivery services industries, and important assumptions about the market demand, pricing, adoption rates and sales cycle, for our current and future products and services may be inaccurate.***

The market demand for and adoption of our delivery robots is unproven, and important assumptions about the characteristics of targeted markets, pricing, and sales cycles may be inaccurate. Although we have engaged in ongoing dialogue with potential customers, we have no binding commitments to purchase products and services. Existing or new regulatory or safety standards, or resistance by customer employees and labor unions, all of which are outside of our control, could cause delays or otherwise impair adoption of these new technologies, which will adversely affect our growth, financial position, and prospects. Given the evolving nature of the markets in which we operate, it is difficult to predict customer demand or adoption rates for our products or the future growth of the markets we expect to target. If one or more of the targeted markets experience a shift in customer or prospective customer demand, our products may not compete as effectively, if at all, and they may not be fully developed into commercial products. As a result, the financial projections in this prospectus necessarily reflect various estimates and assumptions that may not prove accurate and these projections could differ materially from actual results because of the risks included in this "*Risk Factors*" section, among others. If demand does not develop as expected or if we cannot accurately forecast pricing, adoption rates and sales cycle for our products, our business, results of operations and financial condition will be adversely affected.

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***The benefits of our products to customers and projected return on investment have not been substantiated through long-term trials or use.***

Our core products' benefits to customers and projected return on investment have not been substantiated through long-term trials or use. We currently have a limited frame of reference by which to evaluate the performance of our delivery AMR-based integrated robotics solutions upon which our business prospects depend. There can be no assurance that such units will provide the expected benefit to customers. Our AMR-based integrated robotics solutions may not perform consistently with customers' expectations or consistently with other robotics products which may become available. Any failure of our AMR-based integrated robotics solutions and software to perform as expected could harm our reputation and result in adverse publicity, lost revenue, delivery delays, product recalls, product liability claims and significant warranty and other expenses and could have a material adverse impact on our business, prospects, financial condition and operating results. Additionally, problems and defects experienced by competitors or others in the delivery robotics market could, by association, have a negative impact on perception and customer demand for our delivery AMR-based integrated robotics solutions.

***Even if we successfully market our products and services, the purchase or subscription, adoption and use of the products and services may be materially and negatively impacted if our customers resist the use and adoption of the products and services.***

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We have designed and developed our AMR-based integrated robotics solutions with the goal of reducing operating costs and maximizing efficiency and throughput. Even if we successfully market our products and services to customers, the purchase, adoption and the use of the products may be materially and negatively impacted if our customers resist or delay the use and adoption of these new technology products and services. Customers may resist or delay the adoption of our products and services for several reasons, including lack of confidence in autonomous and semi-autonomous delivery vehicles. If our customers resist or delay adoption of our robotic delivery services, our business, prospects, financial condition and operating results will be materially and adversely affected.

***Severe weather conditions and climate change could have a material adverse impact on our business by reducing the operating hours of our robots.***

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Our robots are designed to operate in common environmental conditions. Currently we limit our solution's operation to warm and dry climates, and we do not operate robots under rare or extreme conditions such as strong storms or unusually high or low temperatures. While with each new generation of robots we plan to continually expand their operating envelope (e.g., introducing the ability to manage ice and snow), which in turn would expand our geographic reach, there is no guarantee that our efforts will successfully overcome all severe weather conditions.

***Our systems, products, technologies and services and related equipment may have shorter useful lives than we anticipate.***

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Our growth strategy depends in part on developing systems, products, technologies, and services. These reusable systems, products, technologies and services and systems will have a limited useful life. While we intend to design our products and technologies for a certain lifespan, which corresponds to a number of cycles, there can be no assurance as to the actual operational life of a product or that the operational life of individual components will be consistent with its design life. A number of factors will impact the useful lives of our products and systems, including, among other things, the quality of their design and construction, the durability of their component parts and availability of any replacement components, and the occurrence of any anomaly or series of anomalies or other risks affecting the technology during launch and in orbit. In addition, any improvements in technology may make our existing products, designs, or any component of our products prior to the end of its life obsolete. If our systems, products, technologies and services and related equipment have shorter useful lives than we currently anticipate, this may lead to delays in increasing the rate of our follow on work and new business, which would have a material adverse effect on our business, financial condition, and results of operations.

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***Any acquisitions, partnerships, or joint ventures that we enter into could disrupt our operations and have a material adverse effect on our business, financial condition and results of operations.***

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From time to time, we may evaluate potential strategic acquisitions of businesses, including partnerships or joint ventures with third parties. We may not be successful in identifying acquisition, partnership, and joint venture candidates. In addition, we may not be able to continue the operational success of such businesses or successfully finance or integrate any businesses that we acquire or with which we form a partnership or joint venture. We may have potential write-offs of acquired assets and/or an impairment of any goodwill recorded as a result of acquisitions. Furthermore, the integration of any acquisition may divert management's time and resources from our core business and disrupt our operations or may result in conflicts with our business. Any acquisition, partnership or joint venture may not be successful, may reduce our cash reserves, may negatively affect our earnings and financial performance and, to the extent financed with the proceeds of debt, may increase our indebtedness. Further, depending on market conditions, investor perceptions of us and other factors, we might not be able to obtain financing on acceptable terms, or at all, to implement any such transaction. We cannot ensure that any acquisition, partnership, or joint venture we make will not have a material adverse effect on our business, financial condition, and results of operations.

***As part of growing our business, we may make acquisitions. If we fail to successfully select, execute, or integrate our acquisitions, then our business, results of operations and financial condition could be materially adversely affected, and our share price could decline.***

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Failure to successfully identify, complete, manage and integrate acquisitions could materially and adversely affect our business, financial condition and results of operations and could cause our share price to decline.

From time to time, we may undertake acquisitions to add new products and technologies, acquire talent, gain new sales channels, or enter into new markets or sales territories. In addition to possible shareholder approval, we may need approvals and licenses from relevant government authorities for the acquisitions and to comply with any applicable laws and regulations, and a failure to obtain such approvals and licenses could result in delays and increased costs and may disrupt our business strategy. Furthermore, acquisitions and the subsequent integration of new assets, businesses, key personnel, customers, vendors, and suppliers require significant attention from our management and could result in a diversion of resources from our existing business, which in turn could have an adverse effect on our operations. Acquired assets or businesses may not generate the financial results we expect. Acquisitions could result in the use of substantial amounts of cash, potentially dilutive issuances of equity securities and exposure to potential unknown liabilities of the acquired business. Moreover, the costs of identifying and consummating acquisitions may be significant.

***We face risks related to natural disasters, health epidemics and other outbreaks, which could significantly disrupt our operations.***

Our facilities or operations or those of any third-party manufacturers or suppliers could be adversely affected by events outside of our or their control, such as natural disasters, wars, health epidemics, and other calamities. Our operations do not currently rely on any long-term data storage, and therefore any such loss of data would have limited operational impact. However, we cannot assure you that any backup systems will be adequate to protect us from the effects of fire, floods, typhoons, earthquakes, power loss, telecommunications failures, break-ins, war, riots, terrorist attacks or similar events. Any of the foregoing events may give rise to interruptions, breakdowns, system failures, technology platform failures or internet failures, which could cause the loss or corruption of data or malfunctions of software or hardware as well as adversely affect our ability to provide services.

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***Our OEM partners and their suppliers rely on complex manufacturing processes; unexpected malfunctions, capacity constraints or supply shortages at those partners could delay or limit AMR supply that we procure and deploy, increase costs, or reduce performance.***

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Our OEMs may rely on complex machinery for the production and assembly of our AMRs, which will involve a significant degree of uncertainty and risk in terms of operational performance and costs. Our OEMs facilities, and those of any third-party manufacturing partners and suppliers consist or are expected to consist of large-scale machinery combining many components. These components may suffer unexpected malfunctions from time to time and will depend on repairs and spare parts to resume operations, which may not be available when needed. Unexpected malfunctions of these components may significantly affect the intended operational efficiency. Operational performance and costs can be difficult to predict and are often influenced by factors outside of our or any third-party manufacturing partners' and suppliers' control, such as, but not limited to, scarcity of natural resources, environmental hazards and remediation, costs associated with decommissioning of machines, labor disputes and strikes, difficulty or delays in obtaining governmental permits, damages or defects in electronic systems, industrial accidents, fire, seismic activity and natural disasters. Should operational risks materialize, they may result in the personal injury to or death of workers, the loss of production equipment, damage to production facilities, monetary losses, delays and unanticipated fluctuations in production, environmental damage, administrative fines, increased insurance costs and potential legal liabilities, all which could have a material adverse effect on our business, prospects, financial condition and operating results.

***We may be unable to adequately control the costs associated with our operations.***

We will require significant capital to develop and grow our business, including developing and producing our commercial AMR-based integrated robotics solutions and other products, establishing or expanding design, research and development, production, operations and maintenance and service facilities and building our brand and partnerships. We have incurred and expect to continue incurring significant expenses which will impact our profitability, including research and development expenses, procurement costs, business development, operation and integration expenses as we deploy our robotic fleet, and general and administrative expenses as we scale our operations, identify and commit resources to investigate new areas of demand and incur costs as a public company. Our ability to become profitable in the future also relies on our ability to sell, whether outright or through subscriptions, our systems at prices needed to achieve our expected margins and control our costs, including the risks and costs associated with operating, maintaining and financing our robots. If we are unable to efficiently source AMR hardware from third-party OEMs, integrate our platform, deploy and operate, market, deploy, distribute and service our robots in a cost-effective manner, our margins, profitability and prospects would be materially and adversely affected.

***Our business, operating results and growth rates may be adversely affected by current or future unfavorable economic and market conditions and adverse developments with respect to financial institutions and associated liquidity risk.***

Our business depends on the economic health of the global economies. If the conditions in the global economies remain uncertain or continue to be volatile, or if they deteriorate, including as a result of the impact of military conflicts, such as the war between Russia and Ukraine and the security situation in Israel, terrorism or other geopolitical events, our business, operating results and financial condition may be materially adversely affected. Economic weakness, inflation and increases in interest rates, limited availability of credit, liquidity shortages and constrained capital spending have at times in the past resulted, and may in the future result, in challenging and delayed sales cycles, slower adoption of new technologies and increased price competition, and could negatively affect our ability to forecast future periods, which could result in an inability to satisfy demand for our products and a loss of market share.

Our growth depends on enterprise budgets and procurement cycles (for example, hospitals) and on demonstrating clear ROI. Macroeconomic or budgetary pressures, staffing dynamics, procurement processes, and competing priorities can delay or limit deployments. In addition, increases in inflation raise our costs for commodities, labor, materials and services and other costs required to grow and operate our business, and failure to secure these on reasonable terms may adversely impact our financial condition. Additionally, increases in inflation, along with the uncertainties surrounding geopolitical developments and global supply chain disruptions, have caused, and may in the future cause, global economic uncertainty and uncertainty about the interest rate environment, which may make it more difficult, costly or dilutive for us to secure additional financing. A failure to adequately respond to these risks could have a material adverse impact on our financial condition, results of operations or cash flows.

There can be no assurance that future credit and financial market instability and a deterioration in confidence in economic conditions will not occur. Our general business strategy may be adversely affected by any such economic downturn, liquidity shortages, unfavorable changes in interest rates, changes in the pricing of certain commodities, foreign currency exchange rates, volatile business environment or continued unpredictable and unstable market conditions. If the current equity and credit markets deteriorate, or if adverse developments are experienced by financial institutions, it may cause short-term liquidity risk and also make any necessary debt or equity financing more difficult, more costly, more onerous with respect to financial and operating covenants and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and share price and could require us to alter our operating plans. In addition, there is a risk that one or more of our service providers, financial institutions, manufacturers, suppliers and other partners may be adversely affected by the foregoing risks, which could directly affect our ability to attain our operating goals on schedule and on budget.

***Our failure to attract and retain highly qualified personnel in the future could harm our business.***

We are an innovative technology company. We may not be able to locate or attract qualified individuals for important positions, such as software engineers, robotics engineers, machine vision and machine learning experts and others, which could affect our ability to grow and expand our business. We may also face intense competition for qualified individuals from numerous other companies, including other similarly situated technology companies, many of whom have greater financial and other resources than we do.

In addition, new hires often require significant training and, in many cases, take significant time before they achieve full productivity. We may incur significant costs to attract and retain qualified personnel, including significant expenditures related to salaries and benefits and compensation expenses related to equity awards, and we may lose new employees to our competitors or other companies before we realize the benefit of our investment in recruiting and training them. Moreover, new employees may not be or become as productive as we expect, as we may face challenges in adequately or appropriately integrating them into our workforce and culture. If we are unable to attract, integrate and retain suitably qualified individuals who can meet our technical, operational and managerial requirements, on a timely basis or at all, our business, results of operation and financial condition could be adversely affected.

***Litigation or legal proceedings could expose us to significant liabilities, occupy a considerable amount of our management's time and attention, and damage our reputation.***

We may, from time to time, be a party to various litigation claims and legal proceedings. We will evaluate these claims and proceedings to assess the likelihood of unfavorable outcomes and estimate, if possible, the amount of potential losses. Claims made or threatened by our suppliers, distributors, customers, competitors, or current or former employees could adversely affect our relationships, damage our reputation or otherwise adversely affect our business, financial condition, or results of operations. The costs associated with defending legal claims and paying damages could be substantial. Our reputation could also be adversely affected by such claims, whether or not successful.

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***If we are unable to develop, manage and maintain critical third-party business relationships, our business may be adversely affected.***

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Our growth is increasingly dependent on the strength of our business relationships and our ability to continue to develop, manage and maintain new and existing relationships with third-party partners. We rely on various third-party partners, including software and service providers, platforms, suppliers, credit reporting bureaus, vendors, manufacturers, distributors, accountants, contractors, financial institutions, core processors, licensing partners and development partners, among others, in many areas of our business in order to deliver our offerings and operate our business. In certain instances, these third-party relationships are sole source or limited source relationships and can be difficult to replace or substitute depending on the level of integration of the third party's products or services into, or with, our offerings and/or the general availability of such third party's products and services. In addition, there may be few or no alternative third-party providers or vendors in the market. Further, there can be no assurance that we will be able to adequately retain third-party contractors engaged to help us operate our business.

The business operations of our third-party partners and the third-party partners who support them have been and could continue to be disrupted, including as a result of major technical outages, uncertain macroeconomic conditions, such as trade wars, and global health crises, such as pandemics and endemics. If our third-party partners are unable to help us operate our business or prevent us from delivering critical services to our customers or accepting and fulfilling customer orders, our business and financial results may be negatively impacted. The failure of third parties to provide acceptable and high quality products, services and technologies or to update their products, services and technologies may result in a disruption to our business operations and our customers, which may reduce our revenues and profits, cause us to lose customers and damage our reputation. Alternative arrangements and services may not be available to us on commercially reasonable terms or at all, or we may experience business interruptions upon a transition to an alternative partner.

As we cannot control the day-to-day practices of our suppliers and business partners, we cannot ensure their compliance with the law and our policies regarding workplace and employment practices, data use and security, environmental compliance, intellectual property licensing, and other applicable regulatory and compliance requirements. Any violation of laws or implementation of practices regarded as unethical could result in supply chain disruptions, canceled orders, terminations of or damage to key relationships, and damage to our reputation.

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***Our robots rely on sophisticated software technology that incorporate third-party components and networks to operate.***

Our robots require certain third-party software and networks to function safely and effectively. We anticipate that we will continue to rely on such third-party software in the future. Although we believe that there are commercially reasonable alternatives to the third-party software we currently utilize, this may not always be the case, or it may be difficult or costly to replace. In addition, integration of new third-party software may require significant work and require substantial investment of our time and resources. Our use of additional or alternative third-party software would require us to enter into license agreements with third parties, which may not be available on commercially reasonable terms or at all. Many of the risks associated with the use of third-party software cannot be eliminated, and these risks could negatively affect our business. Furthermore, performance degradation or lack of access to such software and networks can result in poor delivery performance or even grounding of our entire fleet until it is resolved, which can adversely impact our ability to continue our operations.

Additionally, the software powering our technology systems incorporates software covered by open-source licenses. The terms of many open-source licenses have not been interpreted by U.S. courts, and there is a risk that the licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to operate our systems. In the event that portions of our proprietary software are determined to be subject to an open-source license, we could be required to publicly release the affected portions of our source code or re-engineer all or a portion of our technology systems, each of which could reduce or eliminate the value of our technology systems. Such risk could be difficult or impossible to eliminate and could adversely affect our business, financial condition, and results of operations.

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***The benefits to customers of our products could be supplanted by other technologies or solutions or competitors' products that utilize similar technology to ours in a more effective way.***

The benefits to customers of our products could be supplanted by other technologies or solutions or competitors' products that utilize similar technology to ours in a more effective way. We cannot be sure that alternative technologies or improvements to artificial intelligence, industrial automation or other technologies, processes or industries will not match or exceed the benefits of our products or be more cost effective than our products. The development of any alternative technology that can compete with or supplant our products may materially and adversely affect our business, prospects, financial condition and operating results, including in ways we do not currently anticipate. Any failure by us to develop new or enhanced technologies or processes, or to react to changes in existing technologies, could materially delay our development and introduction of new and enhanced products, which could result in the loss of competitiveness of our AMR-based integrated robotics solutions and services, decreased revenue and a loss of market share to competitors.

***Our operating and financial projections rely on management assumptions and analyses. If these assumptions or analyses prove to be incorrect, our actual operating results may be materially different from our forecasted results.***

We are a robotics and services company, with limited experience commercializing our products and services. The projected financial and operating information appearing elsewhere in this prospectus reflect estimates of future performance and is based on multiple financial, technical, and operational assumptions, including hiring of additional skilled personnel in a timely way to support continued development and commercialization of the core products, the level of demand for our AMR-based integrated robotics solutions, the performance of our AMR-based integrated robotics solutions, the utilization of the robot fleet, the useable life of the AMR-based integrated robotics solutions, cost of manufacturing, cost of components and availability of adequate supply, the nature and length of the sales cycle, maintenance and servicing costs and the costs of refurbishing the AMR-based integrated robotics solutions. However, given our limited commercial experience, it is likely that many of these assumptions will prove incorrect. The projections are forward-looking statements that are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Forward-Looking Statements*." Whether actual operating and financial results and business developments will be consistent with our expectations and assumptions as reflected in our forecast depends on a number of other factors, many of which are outside our control, including, but not limited to:

● whether we can obtain sufficient capital to sustain and grow our business;

● our ability to manage our growth;

● the contractual terms of one or more agreements with third-party manufacturers;

● whether we can manage relationships with key suppliers and partners;

● the timing and costs of the required marketing and promotional efforts;

● whether customers and their employees will adopt the AMR-based integrated robotics solutions offered by us;

● the timing required and success of customer testing of our technology;

● competition, including from established and future competitors;

● our ability to retain existing key management, to attract additional leaders, to integrate recent hires and to attract, retain and motivate qualified personnel, including engineers, design and production personnel, and service technicians;

● the overall strength and stability of domestic and international economies;

● demand for currently available and future robots;

● regulatory, legislative, and political changes; and

● customer requirements and preferences.

Unfavorable changes in any of these or other factors, most of which are beyond our control, could cause us to fail to meet our operating and financial projections and could materially and adversely affect our business, prospects, financial condition and operating results.

***We have limited experience commercializing our products at a large scale and may not be able to do so efficiently or effectively.***

We have limited experience commercializing AMR-based integrated robotics solutions at a large scale and may not be able to do so efficiently or effectively. A key element of our long-term business strategy is the continued growth in sales, marketing, training, customer service and maintenance and servicing operations, including hiring personnel with the necessary experience. Managing and maintaining these operations is expensive and time consuming, and an inability to leverage such an organization effectively or at all could inhibit potential sales or subscriptions and the penetration and adoption of our products into new markets. In addition, certain decisions we make regarding staffing in these areas in our efforts to maintain an adequate spending level could have unintended negative effects on our revenues, such as by weakening the sales, marketing and maintenance and servicing infrastructures or lowering the quality of customer service.

***For the AMR hardware and key components We procure AMR hardware and key components from third-party OEMs and vendors and we do not manufacture robots. If these OEMs or partners cease or disrupt support, our ability to procure and integrate AMRs would be materially affected.***

Our AMRs are procured from OEMs. Collaboration with them is subject to risks with respect to operations that are outside our control. Our future business depends in large part on our ability to execute our plans to source AMR hardware from third-party OEMs, integrate our platform, deploy and operate, market, deploy and service our products. While this arrangement may lower operating costs, it may have an adverse effect on our flexibility to respond to changing conditions. Global supply chain problems may directly impact our ability to obtain these components cost-effectively. We could experience delays to the extent our current or future partners do not continue doing business with us, meet agreed upon timelines, experience capacity constraints or otherwise are unable to deliver components or manufacture robots as expected. There is risk of potential disputes with partners, and we could be affected by adverse publicity related to our partners whether or not such publicity is related to their collaboration with us. Our ability to successfully build a premium brand could also be adversely affected by perceptions about the quality of our partners' robots or other robots manufactured by the same partner. In addition, although we intend to be involved in material decisions in the supply chain and manufacturing process, given that we also rely on our partners to meet our quality standards, there can be no assurance that we will be able to maintain high quality standards.

We may in the future enter into strategic alliances, including joint ventures or minority equity investments, with various third parties to further our business purpose. These alliances could subject us to a number of risks, including risks associated with sharing proprietary information, non-performance by the third party, and increased expenses in establishing new strategic alliances, any of which may materially and adversely affect our business.

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***Defects, glitches, or malfunctions in our products or the software that operates them, failure of our products to perform as expected, connectivity issues or operator errors may result in product recalls, lower than expected return on investment for customers and cause significant safety concerns, each of which could adversely affect our results of operations, financial condition and our reputation.***

Our AMRs are procured from OEMs. We may not be aware of OEM manufacturing defects that could occur. Such adverse events could lead to unexpected failures in our products and could result, in certain cases, in the removal of our products from the market. A product recall could result in significant costs. To the extent any manufacturing defect occurs, our agreement with the third-party OEMs may contain a limitation on the OEMs liability, and therefore we could be required to incur the majority of related costs. Product defects or recalls could also result in negative publicity, damage to our reputation or, in the event of regulatory developments, delays in new product acceptance.

Our products incorporate sophisticated computer software. Complex software frequently contains errors, especially when first introduced. Our software may experience errors or performance problems in the future. If any part of our products' hardware or software were to fail, the service mission could be compromised. Additionally, users may not use our products in accordance with safety protocols and training, which could amplify the risk of failure. Any such occurrence could cause delay in market acceptance of our products, damage to our reputation, product recalls, increased service and warranty costs, product liability claims and loss of revenue relating to such hardware or software defects.

We anticipate that as part of our ordinary course of business we may be subject to product liability claims alleging defects in the AMRs we procure. A product liability claim, regardless of our merit or eventual outcome, could result in significant legal defense costs and high punitive damage payments. Although we maintain product liability insurance, as well as require the same from the OEMs the coverage is subject to deductibles and limitations, and may not be adequate to cover future claims. Additionally, we may be unable to maintain our existing product liability insurance in the future at satisfactory rates or adequate amounts.

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***Even if our products perform properly and are used as intended, if operators sustain any injuries while using our products, we could be exposed to liability and our results of operations, financial condition, and our reputation may be adversely affected.***

Our products contain complex technology and must be used as designed and intended in order to operate safely and effectively. While we expect to develop a training, customer service and maintenance and servicing infrastructure to ensure users are equipped to operate our products in a safe manner, we cannot be sure that the products will ultimately be used as designed and intended. In addition, we cannot be sure that we will be able to predict all the ways in which use or misuse of the products can lead to injury or damage to property, and our training resources may not be successful at preventing all incidents. If operators were to cause any injuries or damage to property while using our products, in a manner consistent with our training and instructions or otherwise, we could be exposed to liability and our results of operations, financial condition and our reputation may be adversely affected.

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***We operate in a competitive industry that is subject to rapid technological change, and competitors may have or attain more resources and/or greater market recognition than we do.***

Our competitor base may change or expand as we continue to develop and commercialize our AMR-based integrated robotics solutions in the future. Some of these companies are direct competitors, while others provide adjacent services such as delivery with autonomous vehicles on streets that could impact our market. A number of these companies may have, or may attain, more resources and/or greater market recognition than we do. These or other competitors may develop new technologies or products that provide superior results to customers or are less expensive than our products. Our technologies and products could have reduced competitiveness by such developments.

Our competitors may respond more quickly to new or emerging technologies, undertake more extensive marketing campaigns, have greater financial, marketing, manufacturing and other resources than we do, or may be more successful in attracting potential customers, employees and strategic partners. In addition, potential customers could have long-standing or contractual relationships with competitors. Potential customers may be reluctant to adopt our products, particularly if they compete with or have the potential to compete with or diminish the need/utilization of products or technologies supported through these existing relationships. If we are not able to compete effectively, our business, prospects, financial condition, and operating results will be negatively impacted.

In addition, because we operate in a new market, the actions of our competitors could adversely affect our business. Adverse events such as product defects or legal claims with respect to competing or similar products could cause reputational harm to the robotics market on the whole and, accordingly, our business.

**Risks Related to Our Intellectual Property**

***If we are unable to protect our intellectual property, our ability to maintain any technological or competitive advantage over our competitors and potential competitors would be adversely impacted, and our business may be harmed.***

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Our success, in large part, depends on our ability to protect and maintain the proprietary nature of our technology. We must prosecute and maintain its existing patents and obtain new patents. Some of our proprietary information may not be patentable, and there can be no assurance that others will not utilize similar or superior solutions to compete with us. We cannot guarantee we will develop proprietary products that are patentable, and that, if issued, any patent will give a competitive advantage or that such patent will not be challenged by third parties. The process of obtaining patents can be time consuming with no certainty of success, as a patent may not issue or may not have sufficient scope or strength to protect the intellectual property it was intended to protect.

As of the date of this registration statement, we currently have one granted patent in Israel and two additional patents that are in the allowed phase one in Israel and one in Europe that we are waiting to be granted. In addition, we have additional applications progressing in other global regions, including the U.S. Europe, the U.K., Japan and South Korea. These patents center around our proprietary autonomous navigation technologies, with a strong emphasis on outdoor and indoor mobility in human-dense environments. They specifically cover advanced visual navigation, adaptive route planning, and obstacle-rich path execution core capabilities that differentiate our solution in real-world deployments.

We cannot assure investors that any of our currently pending or future patent applications will result in granted patents, and we cannot predict how long it will take for such patents to be granted or whether the scope of such patents, if granted, will adequately protect our products from competitors. It is possible that, for any of our patents that have been granted or that may be granted in the future, others will design alternatives that do not infringe upon our patented technologies. Further, we cannot assure investors that other parties will not challenge any patents granted to us or that courts or regulatory agencies will hold our patents to be valid or enforceable. We cannot guarantee investors that we will be successful in defending challenges made against our patents and patent applications. Any successful third-party challenge to our patents could result in the unenforceability or invalidity of such patents, or such patents being interpreted narrowly or otherwise in a manner adverse to our interests. Our ability to establish or maintain a technological or competitive advantage over our competitors may be diminished because of these uncertainties. For these and other reasons, our intellectual property may not provide us with any competitive advantage. For example:

● We or our licensors might not have been the first to make the inventions covered by each of our pending patent applications or granted patents;

● We or our licensors might not have been the first to file patent applications for our inventions. To determine the priority of these inventions, we may have to participate in derivation proceedings declared by the U.S. Patent and Trademark Office, or the USPTO, that could result in substantial cost to us. No assurance can be given that our patent applications or granted patents (or those of our licensors) will have priority over any other patent or patent application involved in such a proceeding;

● Others may independently develop similar or alternative products and technologies or duplicate any of our products and technologies;

● It is possible that our pending patent applications will not result in granted patents, and even if such pending patent applications grant as patents, they may not provide a basis for intellectual property protection of commercially viable products, may not provide us with any competitive advantages, or may be challenged and invalidated by third parties;

● We may not develop additional proprietary products and technologies that are patentable;

● The patents of others may have an adverse effect on our business; and

● While we apply for patents covering our products and technologies and uses thereof, as we deem appropriate, we may fail to apply for patents on important products and technologies in a timely fashion or at all, or we may fail to apply for patents in potentially relevant jurisdictions.

Filing, prosecuting and defending patents on current and future products in all countries throughout the world would be prohibitively expensive, and our intellectual property rights in some countries outside the United States can be less extensive than those in the United States. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States. Consequently, regardless of whether we are able to prevent third parties from practicing our inventions in the United States, we may not be able to prevent third parties from practicing our inventions in all countries outside the United States, or from selling or importing products made using our inventions in and into the United States or other jurisdictions. Even if we pursue and obtain issued patents in particular jurisdictions, our patent claims or other intellectual property rights may not be effective or sufficient to prevent third parties from competing. Accordingly, we may choose not to seek patent protection in certain countries, and we will not have the benefit of patent protection in such countries.

If we fail to protect our intellectual property, third parties may be able to compete more effectively against us, we may lose our technological or competitive advantage, or we may incur substantial litigation costs in our attempts to recover or restrict use of our intellectual property. For these and other reasons, our intellectual property may not provide us with any competitive advantage.

***If we or any of our partners are sued for infringing the intellectual property rights of third parties, such litigation would be costly and time consuming, and an unfavorable outcome in any such litigation could have a material adverse effect on our business. We may be involved in lawsuits to protect or enforce our patents or the patents of our licensors, which could be expensive, time-consuming and unsuccessful.***

Our success also depends on our ability to develop, manufacture, market and sell our products and perform our services without infringing upon the proprietary rights of third parties. Numerous U.S. and foreign-issued patents and pending patent applications owned by third parties exist in the fields in which we are developing products and services. As is common in the robotics industry, we also engage the services of specialized consultants and employees who are currently providing or previously provided services to our competitors and we may become subject to claims that we, an employee, a consultant or an independent contractor inadvertently or otherwise used or disclosed trade secrets, intellectual property or other information proprietary to their former employers or their former or current clients. As part of a business strategy to impede our successful commercialization and entry into new markets, competitors may claim that our products and/or services infringe their intellectual property rights and may suggest that we enter into license agreements.

Even if such claims are without merit, we could incur substantial costs and the attention of our management, and technical personnel could be diverted in defending us against claims of infringement made by third parties or settling such claims. Any adverse ruling by a court or administrative body, or perception of an adverse ruling, may have a material adverse impact on our ability to conduct our business and our finances. Moreover, third parties making claims against us may be able to obtain injunctive relief against us, which could block our ability to offer one or more products or services and could result in a substantial award of damages against us. In addition, since we sometimes indemnify customers, collaborators or licensees, we may have additional liability in connection with any infringement or alleged infringement of third-party intellectual property.

There is a substantial amount of litigation involving patent and other intellectual property rights in the robotics space. As we face increasing competition and as our business grows, we will likely face more claims of infringement. If a third party claims that we or any of our licensors, customers or collaboration partners infringe upon a third party's intellectual property rights, we may have to:

● seek licenses that may not be available on commercially reasonable terms, if at all;

● abandon any infringing product or redesign our products or processes to avoid infringement;

● pay substantial damages including, in an exceptional case, treble damages and attorneys' fees, which we may have to pay if a court decides that the product or proprietary technology at issue infringes upon or violates the third-party's rights;

● pay substantial royalties or fees or grant cross-licenses to our technology; or

● defend litigation or administrative proceedings that may be costly whether we win or lose, and which could result in a substantial diversion of our financial and management resources.

Competitors may infringe our patents or the patents that we license. In the event of infringement or unauthorized use, we may file one or more infringement lawsuits, which can also be expensive and time-consuming. An adverse result in any such litigation proceedings could put one or more of our patents at risk of being invalidated, being found to be unenforceable or being interpreted narrowly and could put our patent applications at risk of not being issued. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during this type of litigation.

Patent litigation can be very costly and time consuming. Many of our competitors are larger than we are and have substantially greater resources. They are, therefore, likely to be able to sustain the costs of complex patent litigation longer than we could. In addition, the uncertainties associated with litigation, or an adverse outcome, could have a material adverse effect on our ability to raise any funds necessary to continue our operations, continue our internal research programs, in-license needed technology, expose us to significant liabilities, or enter into development partnerships that would help us bring our products to market.

***Changes in patent laws or patent jurisprudence could diminish the value of patents in general, thereby impairing our ability to protect our products.***

The America Invents Act, or AIA, was signed into law on September 16, 2011, and many of the substantive changes under the AIA became effective on March 16, 2013 is the primary governing legislation in the United States and many of the countries we operate within have similar governing legislation. Additionally, courts and administrative bodies often issue rulings on matters related to patent and intellectual property enforcement actions, which may either adversely or beneficially impact our ability to enforce our patent and intellectual property rights within the United States and elsewhere. The laws governing patent prosecution and enforcement are subject to change in unpredictable ways and such changes may be influenced by rulings of courts and other administrative bodies. These changes may weaken our ability to obtain new patents and/or enforce the rights of our existing patents.

***Security breaches and other disruptions could compromise our proprietary information and expose us to liability, which would cause our business and reputation to suffer.***

We rely on trade secrets, technical know-how, and other unpatented proprietary information relating to our product development activities to provide us with competitive advantages. We protect this information by entering into confidentiality agreements with our employees, consultants, strategic partners, and other third parties. We also design our computer systems and networks and implement various procedures to restrict unauthorized access to the dissemination of our proprietary information.

We face internal and external data security threats. For example, current, departing, or former employees or third parties could attempt to improperly use or access our computer systems and networks to copy, obtain, or misappropriate our proprietary information or otherwise interrupt our business. Like others, we are also subject to significant system or network disruptions from numerous causes, including computer viruses and other cyber-attacks, facility access issues, new system implementations, and energy blackouts.

Security breaches, computer malware, phishing, spoofing, and other cyber-attacks have become more prevalent and sophisticated in recent years. While we defend against these threats daily, we do not believe that such attacks have caused us any material damage to date. Because the techniques used by computer hackers and others to access or sabotage networks constantly evolve and generally are not recognized until launched against a target, we may be unable to anticipate, counter or ameliorate all these techniques. As a result, our and our customers' proprietary information may be misappropriated, and we cannot predict the impact of any future incident. Any loss of such information could harm our competitive position, result in a loss of customer confidence in the adequacy of our threat mitigation and detection processes and procedures, cause us to incur significant costs to remedy the damages caused by the incident, and divert management and other resources. We routinely implement improvements to our network security safeguards, and we are devoting increasing resources to the security of our information technology systems. However, we cannot assure that such system improvements will be sufficient to prevent or limit the damage from any future cyber-attack or network disruptions.

The costs related to cyber-attacks or other security threats or computer systems disruptions typically would not be fully insured or indemnified by others. As a result, the occurrence of any of the events described above could result in the loss of competitive advantages derived from our intellectual property. Moreover, these events may result in the diversion of the attention of management and critical information technology and other resources, or otherwise adversely affect our internal operations and reputation or degrade our financial results and share price.

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***If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets of interest and our business may be adversely affected.***

Our registered or unregistered trademarks or trade names may be challenged, infringed, circumvented or declared generic or determined to be infringing on other marks. We may not be able to protect our rights to these trademarks and trade names, which we need to build name recognition by potential partners or customers in our markets of interest. At times, competitors may adopt trade names or trademarks similar to ours, thereby impeding our ability to build brand identity and possibly leading to market confusion. In addition, there could be potential trade name or trademark infringement claims brought by owners of other registered trademarks. Over the long term, if we are unable to establish name recognition based on our trademarks and trade names, then we may not be able to compete effectively and our business may be adversely affected.

***We may use third-party open source software components in future products, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to sell such products.***

We have chosen, and we may choose in the future, to use open source software in our products. Use and distribution of open source software may entail greater risks than use of third-party commercial software, as open source licensors generally do not provide warranties or other contractual protections regarding infringement claims or the quality of the code. Some open source licenses may contain unfavorable requirements that could allow our competitors to create similar products with less development effort and time and ultimately could result in a loss of product sales.

Although we intend to monitor any use of open source software to avoid subjecting our products to conditions we do not intend, the terms of many open source licenses have not been interpreted by U.S. courts, and there is a risk that any such licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to commercialize our products. Moreover, there is no assurance that our processes for controlling our use of open source software in our products will be effective. If we are held to have breached the terms of an open source software license, we could be required to seek licenses from third parties to continue offering our products on terms that are not economically feasible, to re-engineer our products, to discontinue the sale of our products if re-engineering could not be accomplished on a timely basis, or to make generally available, in source code form, our proprietary code, any of which could adversely affect our business, operating results and financial condition.

**Risks Related to Government Regulation and Other Legal Compliance Matters**

***Our AMRs operate primarily indoors within customer facilities and, in some sites, along controlled-campus outdoor routes between buildings. Any safety incident, integration failure or operator error could jeopardize commercial relationships.***

Regulatory and compliance risks apply to indoor and controlled-campus outdoor AMR deployments. Our solution must comply with electrical and radio regulations, transport and storage requirements for lithium-ion batteries, workplace safety rules, and facility approvals or certifications required by customers. If we operate on private or semi-private campus pathways between buildings, additional permissions may be needed. Changes in these frameworks, or non-compliance, could delay deployments or increase costs, which could impact our ability to operate our business.

In addition, our solution must comply with electrical and radio regulations, transport and storage requirements for lithium-ion batteries, workplace safety rules, and facility approvals or certifications required by customers. If we operate on private or semi-private campus pathways between buildings, additional permissions may be needed. Changes in these frameworks, or non-compliance, could delay deployments or increase costs.

Furthermore, the cellular network and radio systems contained in our robots are regulated by the Federal Communications Commission, which allocates cellular and wireless bandwidth to ensure minimal conflict between operators. Further, the battery packs within our robots use custom lithium-ion cells. The transportation and effective storage of lithium-ion batteries is tightly regulated by the U.S. Department of Transportation and other regulatory bodies. Any failure to comply with the Department of Transportation's storage and transport requirements or the Federal Communications Commission's regulations on wireless communications could result in fines, loss of permits and licenses or other regulatory consequences, which could limit our ability to procure and deliver our AMR-based integrated robotics solutions and negatively affect our business, prospects, financial condition, results of operations, and cash flows.

***We may be subject to theft, loss, or misuse of personal data by or about our employees, customers, or other third parties, which could increase our expenses, damage our reputation, or result in legal or regulatory proceedings.***

In the ordinary course of our business, we have access to sensitive, confidential, or personal data or information regarding our employees and others that are subject to privacy and security laws and regulations. Therefore, the theft, loss, or misuse of personal data collected, used, stored, or transferred by us to run our business, or by our third-party service providers, including business process software applications providers and other vendors that have access to sensitive data, could result in damage to our reputation, disruption of our business activities, significantly increased business and security costs or costs related to defending legal claims.

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***Laws, regulations, and other legislative efforts related to climate change, environmental concerns, and health and safety could result in increased operating costs, reduced demand for our products and services, or the loss of future business.***

Concerns over environmental pollution and climate change have produced significant legislative and regulatory efforts on a global basis, and we believe this will continue both in scope and in the number of countries participating. These changes could directly increase the cost of energy, which may have an effect on the way we procure OEM-manufactured hardware or utilize energy to produce our products. In addition, any new regulations or laws in the environmental area might increase the cost of raw materials or key components we use in our products. Environmental regulations may require us to reduce product energy usage, monitor and exclude an expanding list of restricted substances and to participate in compulsory recovery and recycling of our products or components. We are unable to predict how any future changes will impact us and if such impacts will be material to our business.

Further, climate change laws, environmental regulations, and other similar measures may have an effect on the operating activities of our customers, which may, in turn, reduce the demand for our products and services. To the extent increasing concentrations of greenhouse gases in the Earth's atmosphere may produce climate changes that have significant physical effects, such as increased frequency and severity of storms, droughts, floods and other climatic events, such events could have a material adverse effect on the Company and potentially subject the Company to further regulation.

Our deployments do not involve offshore operations. We operate primarily indoors and, in some sites, along controlled-campus outdoor routes between buildings. We are subject to workplace, electrical and radio, battery, and facility-approval requirements applicable to indoor/campus AMR operations.

We may become subject to new or changing international, federal, state and local regulations, including laws relating to the design, manufacturing, marketing, distribution, servicing or use of our products. Such laws and regulations may require us to pause sales and modify our products, which could result in a material adverse effect on our revenues and financial condition. Such laws and regulations can also give rise to liability such as fines and penalties, property damage, bodily injury and cleanup costs. Capital and operating expenses needed to comply with laws and regulations can be significant, and violations may result in substantial fines and penalties, third-party damages, suspension of production or a cessation of our operations. Any failure to comply with such laws or regulations could lead to withdrawal or recall of our products from the market.

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***We are subject to cybersecurity risks to our operational systems, security systems, infrastructure, integrated software in our products and data processed by us or third-party vendors.***

Our business and operations involve the collection, storage, processing, and transmission of personal data and certain other sensitive and proprietary data of collaborators, customers, and others. Additionally, we maintain sensitive and proprietary information relating to our business, such as our own proprietary information and personal data relating to our employees. An increasing number of organizations have disclosed breaches of their information security systems and other information security incidents, some of which have involved sophisticated and highly targeted attacks. We may be a target for attacks by state-sponsored actors and others designed to disrupt our operations or to attempt to gain access to our systems or data that is processed or maintained in our business.

We are at risk for interruptions, outages and breaches of our: (a) operational systems, including business, financial, accounting, product development, data processing or production processes, owned by us or our third-party vendors or suppliers; (b) facility security systems, owned by us or our third-party vendors or suppliers; (c) transmission control modules or other in-product technology, owned by us or our third-party vendors or suppliers; (d) the integrated software in our units; or (e) customer data that we processes or that our third-party vendors or suppliers process on our behalf. Because techniques used to obtain unauthorized access to or to sabotage information systems change frequently and may not be known until launched against a target, we may be unable to anticipate or prevent these attacks, react in a timely manner, or implement adequate preventive measures, and may face delays in our detection or remediation of, or other responses to, security breaches and other privacy-and security-related incidents. Such incidents could: materially disrupt our operational systems; result in loss of intellectual property, trade secrets or other proprietary or competitively sensitive information; compromise certain information of customers, employees, suppliers, or others; jeopardize the security of our facilities; or affect the performance of in-product technology and the integrated software in our units. Certain efforts may be state-sponsored or supported by significant financial and technological resources, making them even more difficult to detect, remediate, and otherwise respond to.

We plan to include product services and functionality that utilize data connectivity to monitor performance and timely capture opportunities to enhance performance and for safety and cost-saving preventative maintenance. The availability and effectiveness of our services depend on the continued operation of information technology and communications systems. Our systems will be vulnerable to damage or interruption from, among others, physical theft, fire, terrorist attacks, natural disasters, power loss, war, telecommunications failures, viruses, denial or degradation of service attacks, ransomware, social engineering schemes, insider theft or misuse or other attempts to harm our systems. We intend to use our product services and functionality to log information about each unit's use in order to aid us in diagnostics and servicing. Our customers may object to the use of this data, which may require us to implement new or modified data handling policies and mechanisms, increase our unit maintenance costs and costs associated with data processing and handling, and harm our business prospects.

Although we are in the process of implementing certain systems and processes that are designed to protect our data and systems within our control, prevent data loss, and prevent other security breaches and security incidents, these security measures cannot guarantee security. The IT and infrastructure used in our business may be vulnerable to cyberattacks or security breaches, and third parties may be able to access data, including personal data and other sensitive and proprietary data of us and our customers, collaborators and partners, our employees' personal data, or other sensitive and proprietary data, accessible through those systems. Employee error, malfeasance, or other errors in the storage, use, or transmission of any of these types of data could result in an actual or perceived privacy or security breach or other security incident.

Moreover, there are inherent risks associated with developing, improving, expanding and updating our current systems, such as the disruption of our data management, procurement, production execution, finance, supply chain and sales and service processes. These risks may affect our ability to manage our data and inventory, procure parts or supplies or manufacture, deploy, deliver and service our units, adequately protect our intellectual property or achieve and maintain compliance with, or realize available benefits under, applicable laws, regulations and contracts. We cannot be sure that these systems upon which we rely, including those of our third-party vendors or suppliers, will be effectively implemented, maintained or expanded as planned. If we do not successfully implement, maintain or expand these systems as planned, our operations may be disrupted, our ability to accurately and timely report our financial results could be impaired, and deficiencies may arise in our internal control over financial reporting, which may impact our ability to certify our financial results. Moreover, our proprietary information or intellectual property could be compromised or misappropriated, and our reputation may be adversely affected. If these systems do not operate as we expect them to, we may be required to expend significant resources to make corrections or find alternative sources for performing these functions.

Any actual or perceived security breach or security incident, or any systems outages or other disruption to systems used in our business, could interrupt our operations, result in loss or improper access to, or acquisition or disclosure of, data or a loss of intellectual property protection, harm our reputation and competitive position, reduce demand for our products, damage our relationships with customers, partners, collaborators, or others, or result in claims, regulatory investigations, and proceedings and significant legal, regulatory, and financial exposure, and any such incidents or any perception that our security measures are inadequate could lead to loss of confidence in us and harm to our reputation, any of which could adversely affect our business, financial condition, and results of operations. Any actual or perceived breach of privacy or security, or other security incident, impacting any entities with which we share or disclose data (including, for example, our third-party technology providers) could have similar effects. We expect to incur significant costs in an effort to detect and prevent privacy and security breaches and other privacy- and security-related incidents and may face increased costs and requirements to expend substantial resources in the event of an actual or perceived privacy or security breach or other incident.

***We are subject to evolving laws, regulations, standards, policies, and contractual obligations related to data privacy and security laws and regulations, and our actual or perceived failure to comply with such obligations could harm our reputation, subject us to significant fines and liability, or otherwise adversely affect our business, prospects, financial condition and operating results.***

We are subject to or affected by a number of federal, state and local laws and regulations, as well as contractual obligations and industry standards, that impose certain obligations and restrictions with respect to data privacy and security, and govern our collection, storage, retention, protection, use, processing, transmission, sharing and disclosure of personal information, including that of our employees, customers and others. Most jurisdictions have enacted laws requiring companies to notify individuals, regulatory authorities and others of security breaches involving certain types of data. Such laws may be inconsistent or may change or additional laws may be adopted. In addition, our agreements with certain customers may require us to notify them in the event of a security breach. Such mandatory disclosures are costly, could lead to negative publicity, result in penalties or fines, result in litigation, may cause our customers to lose confidence in the effectiveness of our security measures and require us to expend significant capital and other resources to respond to and/or alleviate problems caused by the actual or perceived security breach.

The global data protection landscape is rapidly evolving, and implementation standards and enforcement practices are likely to remain uncertain for the foreseeable future. We may not be able to monitor and react to all developments in a timely manner. For example, California adopted the California Consumer Privacy Act ("CCPA"), which became effective in January 2020. The CCPA establishes a privacy framework for covered businesses, including an expansive definition of personal information and data privacy rights for California residents. The CCPA includes a framework with potentially severe statutory damages and private rights of action. The CCPA requires covered businesses to provide new disclosures to California residents, provide them new ways to opt-out of certain disclosures of personal information, and allow for a new cause of action for data breaches. Additionally, a new privacy law, the California Privacy Rights Act ("CPRA"), was approved by California voters in the November 3, 2020 election. The CPRA creates obligations relating to consumer data beginning on January 1, 2022, with implementing regulations expected on or before July 1, 2022, and enforcement beginning July 1, 2023. The CPRA significantly modifies the CCPA, potentially resulting in further uncertainty. Some observers have noted that the CCPA could mark the beginning of a trend toward more stringent privacy legislation in the United States. Other states have begun to propose and enact similar laws. For example, Virginia has enacted the Virginia Consumer Data Protection Act, which provides for obligations similar to the CCPA, and which will go into effect January 1, 2023. As we expand our operations, the CCPA, CPRA, and other laws and regulations relating to privacy and data security may increase our compliance costs and potential liability. Compliance with any applicable privacy and data security laws and regulations is a rigorous and time-intensive process, and we may be required to put in place additional mechanisms to comply with such laws and regulations.

Additionally, as our international presence expands, we may become subject to or face increasing obligations under laws and regulations in countries outside the United States, many of which, such as the European Union's General Data Protection Regulation ("GDPR") and national laws supplementing the GDPR, as well as legislation substantially implementing the GDPR in the United Kingdom, are significantly more stringent than those currently enforced in the United States. The GDPR requires companies to meet stringent requirements regarding the handling of personal data of individuals located in the European Economic Area ("EEA"). The GDPR also includes significant penalties for noncompliance, which may result in monetary penalties of up to the higher of €20 million or 4% of a group's worldwide turnover for the preceding financial year for the most serious violations. The United Kingdom's version of the GDPR, the UK GDPR, which it maintains along with its Data Protection Act (collectively, the "UK GDPR"), also provides for substantial penalties that, for the most serious violations, can go up to the greater of £17.5 million or 4% of a group's worldwide turnover for the preceding financial year. Many other jurisdictions globally are considering or have enacted legislation providing for local storage of data or otherwise imposing privacy, data protection and data security obligations in connection with the collection, use and other processing of personal data.

We publish privacy policies and other documentation regarding our collection, processing, use and disclosure of personal information and/or other confidential information. Although we endeavor to comply with our published policies and other documentation, we may at times fail to do so or may be perceived to have failed to do so. Moreover, despite our efforts, we may not be successful in achieving compliance, including if our employees, contractors, service providers or vendors fail to comply with our published policies and documentation. Such failures can subject us to potential action by governmental or regulatory authorities if they are found to be deceptive, unfair, or misrepresentative of our actual practices. Any actual or perceived inability of us to adequately address privacy and security concerns or comply with applicable laws, rules and regulations relating to privacy, data protection or data security, or applicable privacy notices, could lead to investigations, claims, and proceedings by governmental entities and private parties, damages for contract breach, and other significant costs, penalties, and other liabilities. Any such claims or other proceedings could be expensive and time-consuming to defend and could result in adverse publicity. Any of the foregoing may have an adverse effect on our business, prospects, results of operations, and financial condition.

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***We are subject to U.S. and foreign anti-corruption and anti-money laundering laws and regulations. We can face criminal liability and other serious consequences for violations, which can harm our business, prospects, financial condition and operating results.***

We are subject to the U.S. Foreign Corrupt Practices Act of 1977, as amended (the "FCPA"), the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, and other anti-corruption, anti-bribery and anti-money laundering laws in countries in which we conduct activities. Anti-corruption laws are interpreted broadly and prohibit companies and their employees, business partners, third-party intermediaries, representatives, and agents from authorizing, promising, offering or providing, directly or indirectly, improper payments or anything else of value to government officials, political candidates, political parties, or commercial partners for the purpose of obtaining or retaining business or securing an improper business advantage.

We have direct and indirect interactions with foreign officials, including in furtherance of sales to governmental entities in non-U.S. countries. We sometimes leverage third parties to conduct our business abroad, and our third-party business partners, representatives, and agents may have direct or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities. We can be held liable for the corrupt or other illegal activities of our employees or these third-parties, even if we do not explicitly authorize or have actual knowledge of such activities. The FCPA and other applicable laws and regulations also require that we keep accurate books and records and maintain internal controls and compliance procedures designed to prevent any such actions. While we have policies and procedures to address compliance with such laws, there can be no assurance that all of our employees, business partners, third-party intermediaries, representatives, and agents will not take actions in violation of our policies and applicable law, for which we may be ultimately held responsible. Our exposure for violating these laws increases as our international presence expands and as we increase sales and operations in foreign jurisdictions.

Any violations of the laws and regulations described above may result in whistleblower complaints, adverse media coverage, investigations, substantial civil and criminal fines and penalties, damages, settlements, prosecution, enforcement actions, imprisonment, the loss of export or import privileges, suspension or debarment from government contracts, tax reassessments, breach of contract and fraud litigation, reputational harm and other consequences, any of which could adversely affect our business, prospects, financial condition and operating results. In addition, responding to any investigation or action will likely result in a significant diversion of management's attention and resources and significant defense costs and other professional fees.

**Risks Related to Quantum X Labs's Business and Industry**

***Quantum X Labs's***  ***success depends, in part, upon the continued demand of digital advertising as an integral part of corporate marketing and internal communications plans and the continued growth and acceptance of digital content as effective alternatives to traditional offline marketing products and services.***

Quantum X Labs provides digital advertising platforms. Its revenues are derived from the sale of its platforms. If the demand for digital advertising does not continue to grow or customers do not embrace its platforms, this could have a material adverse effect on its business and financial condition.

Quantum X Labs's success also depends, in part, on its ability to compete for a share of available advertising/marketing expenditures as more traditional offline and emerging media companies continue to enter the digital advertising market, as well as on the continued growth and acceptance of digital advertising generally. If for any reason digital advertising is not perceived as effective (relative to traditional advertising), web browsers, software programs and/or other applications that limit or prevent advertising from being displayed become commonplace and/or the industry fails to effectively manage click fraud, the market for digital advertising will be negatively impacted. Any lack of growth in the market for digital advertising could adversely affect its business, financial condition, and results of operations.

***Online platform updates, including operating systems, search engines, browsers and social media might affect Quantum X Labs's ability to generate revenues, temporarily or permanently.***

Quantum X Labs complies with certain guidelines promulgated by online platforms for the use of the respective brands and services. Online platforms may unilaterally update their policies and guidelines, which could, in turn, require modifications to, or prohibit and/or render obsolete certain of its advertising solutions, products, services and practices, which could be costly to address or otherwise have an adverse effect on its business, its financial condition and results of operations. Noncompliance with platforms' guidelines, whether by Quantum X Labs or by third parties it works with, if not cured, could result in such online platforms' suspension of some or all of their services to it, or to the websites of third parties it works with, or the reimbursement of funds paid to it, or the imposition of additional restrictions on our advertising abilities or the termination of certain advertising agreements with its customers.

***Should the providers of internet browsers, advertisement platforms and Search Engines further regulate, constrain or limit Quantum X Labs's ability to offer advertising services, or materially change their guidelines, technology or the way they operate, its ability to generate revenue from advertising could be significantly reduced.***

As Quantum X Labs provides its services through the internet, it's reliant on its ability to work with the different internet browsers, search engines and advertisement platforms. If Microsoft, Google, Apple, Meta or other companies that provide internet browsers, advertisement platforms and search engines, effectively further restrict, discourage or otherwise hamper companies, like Quantum X Labs, from offering or advertising services, this would continue to cause a material adverse effect on its revenue and its financial results.

***The use of third-party software solutions for the purpose of blocking ads and/or alerts may cause Quantum X Labs's business to suffer.***

Digital advertising may be blocked by third-party providers. As a result, Quantum X Labs may lose both existing and potential new customers and its ability to generate revenue will be negatively impacted.

***Quantum X Labs***  ***depends on supply sources to provide it with advertising inventory in order for it to deliver advertising campaigns in a cost-effective manner.***

Quantum X Labs relies on a diverse set of publishers including direct publishers, advertising exchange platforms, social networks and other platforms, that aggregate advertising inventory, to provide it with high-quality digital advertising inventory on which it delivers ads, collectively referred to as "supply sources". The future growth of Quantum X Labs's advertising business will depend, in part, on its ability to maintain, expand and further develop successful business relationships in order to increase the network of its supply sources.

Quantum X Labs's supply sources typically make their advertising inventory available to it on a non-exclusive basis and are not required to provide any minimum amounts of advertising inventory to it or to provide it with a consistent supply of advertising inventory, at any predetermined price or through real time bidding. Supply sources often maintain relationships with various sources of demand that compete with Quantum X Labs, and it is easy for supply sources to quickly shift their advertising inventory among these demand sources, or to shift inventory to new demand sources, without notice or accountability. Supply sources may also seek to change the terms at which they offer inventory to Quantum X Labs, or they may allocate their advertising inventory to its competitors who offer more favorable economic terms, better solutions and advanced technology. Supply sources may also elect to sell all, or a portion, of their advertising inventory directly to advertisers and agencies, or they may develop their own competitive offerings, which could diminish the demand for Quantum X Labs's solutions. In addition, significant supply sources within the industry may enter into exclusivity arrangements with Quantum X Labs's competitors, which could limit its access to a meaningful supply of inventory. As a result of all of these factors, Quantum X Labs's supply sources may not supply it with sufficient amounts of high-quality digital advertising inventory in order for it to fulfill the demands of its advertising customers.

Because of these factors, Quantum X Labs seeks to expand and diversify its supply sources; nonetheless, if its supply sources terminate or reduce its access to their advertising inventory, increase the price of inventory or place significant restrictions on the sale of their advertising inventory, or if platforms or exchanges terminate its access to them and it is unsuccessful in establishing or maintaining its relationships with supply sources on commercially reasonable terms, it may not be able to replace this with inventory from other supply sources that satisfy its requirements in a timely and cost-effective manner. If any of these happens, Quantum X Labs's revenue could decline or its cost of acquiring inventory could increase, which, in turn, could lower its operating margins and materially adversely affect its advertising business.

***Reliance upon Quantum X Labs's top customers may adversely affect its revenue and operating results.***

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Quantum X Labs's main customers represented approximately 78% and 79% of its consolidated revenue for the years ended December 31, 2025, and 2024, respectively on a pro forma basis. It is likely that Quantum X Labs will depend on a relatively small number of customers for a significant portion of its revenue in the future. If a top customer fails to pay Quantum X Labs, cash flow from operations would be impacted and its operating results and financial condition could be harmed. Additionally, if Quantum X Labs were to lose a material customer, it may not be able to offer its services at similar utilization or pricing levels and such loss could have an adverse effect on its business until the services are offered at similar utilization or pricing levels.

***Reliance upon material suppliers may adversely affect Quantum X Labs's revenue and operating results.***

Quantum X Labs is dependent on certain material suppliers and service providers for some of the services it renders. In certain cases, Quantum X Labs relies on a single supplier and/or service provider for the services it offers its customers. In most cases Quantum X Labs does not have long term contracts with these suppliers, and even in the cases where it does, the contracts include significant qualifications that would make it extremely difficult for it to force the supplier or service provider to provide it with their services, should they choose not to do so. Quantum X Labs is therefore subject to the risk that these third-parties it works with will not be able or willing to continue to provide it with services that meet its specifications, quality standards and delivery schedules. Factors that could impact these third parties' willingness and ability to continue to provide Quantum X Labs with the required services include disruption at or affecting their facilities, such as work stoppages or natural disasters, adverse weather or other conditions that affect their supply, their financial conditions and/or deterioration in its relationships with these third parties. In addition, Quantum X Labs cannot be sure that it will be able to procure the services it needs on satisfactory terms. Any increase in costs could reduce Quantum X Labs's revenues and harm its gross margins. In addition, any loss of a material supplier and/or service provider may permanently cause a change in one or more of Quantum X Labs's services that may not be accepted by its customers or cause it to eliminate that product altogether.

***Quantum X Labs***  ***may not be able to receive credit facility to fund its operations on favorable terms, if at all.***

Quantum X Labs generally finances its operations primarily through a combination of cash flow generated from operations and borrowings under its credit facilities, loans, and through credit with its vendors. Quantum X Labs's ability to access capital through its existing credit facilities and raise additional capital by expanding its credit facilities on economically favorable terms (including available borrowing line and the rate of interest charged thereunder) or at all, or if it is in violation of its financial covenants in the future and does not receive a waiver, depends on its ability to stay in compliance with a financing agreement, which imposes certain limitations. In addition, and as a result of the decrease in its revenues, Quantum X Labs's financial performance has been negatively impacted, which may affect the terms on which it is able to obtain credit facilities and loans.

If adequate capital is not available at the time Quantum X Labs needs it, it may have to curtail future growth or change its expansion plans, which could have a material adverse effect on it.

If borrowing under Quantum X Labs's existing credit facilities is reduced, or otherwise becomes unavailable, or it is unable to arrange substitute financing facilities or other sources of capital, its ability to fund its operations would be impaired, which would have a material adverse effect on its results of operations.

***Quantum X Labs***  ***may be unable to pay its obligations when they become due.***

Quantum X Labs has financed its acquisitions principally through the raising of debt, credit facilities, and its operations through credit with our vendors. Its ability to continue its operations and to pay its obligations, including under a financing agreement with Bank Leumi Le Israel Ltd (the "Financing Agreement") and credit facilities, when they become due is contingent upon obtaining additional financing.

In addition, during August 2024, Quantum X Labs renegotiated the terms of the Financing Agreement and entered into the Fourth Addendum to the Financing Agreement. The availability of the credit facilities is subject to Quantum X Labs successfully raising additional capital and depositing at least $2,000,000 with Gix Media. If Quantum X Labs and certain of its subsidiaries cannot maintain compliance with the terms and covenant of the Financing Agreement, or if it is unable to obtain sufficient amounts of additional capital, it may be required to reduce the scope of its planned operations, and/or consider reductions in personnel costs or other operating costs, in addition to the measures currently contemplated pursuant to the Financing Agreement.

***Quantum X Labs's***  ***success is dependent on the preferences of consumers, internet users and advertisers.***

Quantum X Labs's services rely on the digital devices used by consumers and users. To the extent that users change their consumption habits, or to the extent that traffic does not grow, its activities may decrease and its business operations could be harmed.

A change in advertisers' preferences could also affect Quantum X Labs's operations. Advertisers may change their preferences relating to their willingness to work with certain technologies and certain advertising platforms, which could reduce Quantum X Labs's activities and harm its business operations.

***A loss of the services of Quantum X Labs's technology vendors could adversely affect the execution of its business strategy.***

Should some of Quantum X Labs's technology vendors terminate their relationship with Quantum X Labs, Quantum X Labs's ability to continue the development of some of its platforms could be adversely affected, until such time that Quantum X Labs finds an adequate replacement for these vendors, or until such time that it can continue the development on its own.

***Quantum X Labs's***  ***Search Platform depends heavily upon revenue generated from the material agreement with the Gix Major Customer, and any adverse change in that agreement could adversely affect Quantum X Labs's business, financial condition and results of operations.***

Quantum X Labs is highly dependent on the material agreement with the Gix Major Customer. If this material agreement is terminated or substantially amended (not on favorable terms), Quantum X Labs would experience a material decrease in its revenue from its Search Platform or the profits it generates and would be forced to seek alternative customers, at less competitive terms or accelerate the business we have with the current search engines. There are few companies in the market that provide internet search and search advertising services with whom Quantum X Labs can directly engage with in the same manner which it is engaged with the Gix Major Customer. Such companies are substantially the only participants in western markets, and competitors do not offer as much coverage through sponsored links or searches. Quantum X Labs may divert its operations and user traffic to other third-party partners which provide search feed to search engines, however it cannot guarantee that it will be successful. If Quantum X Labs fails to quickly locate, negotiate and finalize alternative arrangements or otherwise expedite current operations it has with such alternative search providers, or if it does, but the alternatives do not provide for terms that are as favorable as those currently provided and utilized, it would experience a material reduction in its revenue and, in turn, its business, financial condition and results of operations would be adversely affected.

Quantum X Labs relies on third-party Internet, mobile, and other products and services to deliver its mobile and web applications to its customers, and any disruption of, or interference with, its use of those services could adversely affect its business, financial condition, results of operations, and customers.

***A failure in its technology infrastructure may adversely affect Quantum X Labs's business and financial condition and disrupt its customers' businesses.***

Quantum X Labs utilizes "Cloud" servers, which are not immune to failures and is not without substantial risk, particularly at a time when businesses of almost every kind are finding themselves subject to an ever-expanding range of privacy, data collection and processing and cybersecurity laws and regulations, document retention requirements, and other standards of accountability. Such failures and risks, if materialized, could affect Quantum X Labs's activities, including its ad space-purchasing and processing capabilities.

**Risks Related to Quantum X Labs's Competition**

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***Large and established internet and technology companies, such as Google and Facebook, play a substantial role in the digital advertising market and may significantly impair Quantum X Labs's ability to operate in this industry.***

Google is a substantial player in the digital advertising market along with other players such as Microsoft. In addition, a small number of social network companies, such as Facebook, account for a large portion of digital advertising budgets. The high concentration of power among Google, Facebook and some other large market participants causes Quantum X Labs to be subject to any unilateral changes they may make with respect to advertising on their respective platforms, which may be more lucrative than alternative methods of advertising or partnerships with other publishers that are not subject to such changes. Furthermore, Quantum X Labs could have limited ability to respond to, and adjust for, changes implemented by large market participants.

These companies, along with other large and established Internet and technology companies, may also leverage their power to make changes to their web browsers, operating systems, platforms, networks or other products or services in a way that impacts the entire digital advertising marketplace. If Quantum X Labs fails to comply with or adopt to such changes, on the same level as its competitors, it may harm its ability to compete effectively in its market and operate in its market.

***The digital advertising market is highly competitive. If Quantum X Labs cannot compete effectively in this market, its revenues are likely to decline.***

Quantum X Labs faces intense competition in the marketplace. It operates in a dynamic market that is subject to rapid development and introduction of new technologies, products and solutions, changing branding objectives, evolving customer demands and industry guidelines, all of which affect its ability to remain competitive. There are a large number of companies and advertising technology companies that offer products or services similar to Quantum X Labs's and that compete with it for finite advertising budgets. There are also a large number of niche companies that are competitive with Quantum X Labs, as they provide a subset of the services that Quantum X Labs provides. Some of Quantum X Labs's existing and potential competitors may be better established, benefit from greater name recognition, may offer solutions and technologies that Quantum X Labs does not offer or that are more evolved than Quantum X Labs's, and may have significantly more financial, technical, sales and marketing resources than Quantum X Labs does. In addition, some competitors, particularly those with a larger and more diversified revenue base and a broader offering, may have greater flexibility than Quantum X Labs does to compete aggressively on the basis of price and other contract terms as well as respond to market changes. Additionally, companies that do not currently compete with Quantum X Labs in this space may change their services to be competitive if there is a revenue opportunity, and new or stronger competitors may emerge through consolidations or acquisitions. If Quantum X Labs's platforms are not perceived as competitively differentiated or Quantum X Labs fails to develop adequately to meet market evolution, it could lose customers and market share or be compelled to reduce its prices and harm its operational results.

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***Quantum X Labs's***  ***implementation and use of artificial intelligence technologies may not be successful, which may impair its ability to compete effectively, result in reputational harm and have an adverse effect on its business.***

Quantum X Labs uses artificial intelligence technologies ("AI") throughout its business and continuously attempts to improve its use of such technologies. For example, Quantum X Labs uses AI to translate articles from English into multiple languages on its content platform. As with many technological innovations, there are significant risks and challenges involved in developing, maintaining, and deploying these technologies and there can be no assurance that the usage of such technologies will always enhance Quantum X Labs's products or services or be beneficial to its business, including to its efficiency or profitability. In addition, the market for AI is rapidly evolving and remains unproven in many industries, including Quantum X Labs's own. Quantum X Labs cannot ensure that the market will continue to grow or that it will grow in the manner it anticipates.

Quantum X Labs is currently in various stages of development of its AI systems, and it may not be successful in such development in the face of novel and evolving technical, reputational and market factors. The development, maintenance and operation of Quantum X Labs's artificial intelligence technologies are expensive and complex, and may involve unforeseen difficulties including material performance problems, undetected defects, or errors. Furthermore, Quantum X Labs uses third-party AI technologies or software, which may introduce significant risks to its cybersecurity as these could spread vulnerabilities, defects viruses, ransomware, or malware through our products and/or services across its supply chain and operations. Quantum X Labs may encounter technical obstacles, and it is possible that it may discover additional problems that may prevent its technologies from operating properly, which could adversely affect its business, customer relationships and reputation.

Quantum X Labs faces significant competition from other companies in its industry in relation to the development and deployment of AI. Those other companies may develop AI technologies that are similar or superior to Quantum X Labs's and/or are more cost-effective and/or quicker to develop and deploy. If Quantum X Labs cannot develop, offer, or deploy new AI technologies as effectively, as quickly and/or as cost-efficiently as its competitors, Quantum X Labs could experience a material adverse effect on its results of operation, customer relationships and growth.

***Quantum X Labs***  ***may not be able to protect its systems, technology, and infrastructure from cyberattacks.***

Quantum X Labs relies on information technology systems to operate and manage its business and to process, maintain, and safeguard information, including information related to its customers, partners, and personnel. This information is stored and managed within its internal information technology infrastructure or, in certain instances, on platforms maintained by third-party service providers. These systems, whether operated internally or externally, may be subject to attacks by perpetrators of malicious technology-related events, such as the use of botnets, malware or other destructive or disruptive software, distributed denial of service attacks, phishing, attempts to misappropriate user information and other similar malicious activities. The incidence of events of this nature (or any combination thereof) is on the rise worldwide. Since the beginning of the war between Israel and Hamas which began on October 7, 2023, Israeli and Israeli associated companies have become more frequent targets of cyberattacks. As such, the risk of a cyberattack against Quantum X Labs's platforms may become heightened. While Quantum X Labs continuously develops and maintains systems designed to detect and prevent events of this nature from impacting its platforms, Quantum X Labs has invested and continues to invest in these efforts. These efforts are costly and require ongoing monitoring and updating as technologies change and efforts to overcome preventative security measures become more sophisticated.

Any event of this nature that Quantum X Labs experiences could damage its systems, technology, or infrastructure, prevent Quantum X Labs from providing its services, compromise the integrity of its services, damage its reputation and/or be costly to remedy, as well as subject Quantum X Labs to investigations by regulatory authorities, fines and/or litigation that could result in liability to third parties.

***As the regulatory framework for AI evolves, including with respect to unintentional bias and discrimination, Quantum X Labs's business, financial condition, and results of operations may be adversely affected.***

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Quantum X Labs's business increasingly relies on artificial intelligence technologies, machine learning and automated decision-making technologies and the legal and regulatory framework governing such technologies is rapidly evolving, and Quantum X Labs may not always be able to anticipate how to respond to applicable laws, regulations, regulatory guidance and evolving industry standards. Many federal, state, and foreign government bodies and agencies have introduced or are currently considering additional laws and regulations governing the use of such technologies. There is also an increase in litigation in a number of jurisdictions, including the United States, relating to the development, security and use of artificial intelligence, including claims relating to intellectual property, privacy, consumer protection and alleged discriminatory outcomes.

For example, government authorities in the United States, Europe and other jurisdictions have adopted, proposed or are actively considering laws, regulations and guidance relating to artificial intelligence, including with respect to transparency, accountability, data governance, consumer protection, intellectual property, privacy, cybersecurity, algorithmic bias, discrimination and automated decision-making. The European Union's Artificial Intelligence Act has entered into force and imposes a phased regulatory framework that may apply extraterritorially to companies offering AI-enabled products or services in the European Union. In the United States, while the federal regulatory approach continues to evolve, various federal agencies have asserted oversight authority over AI-related activities under existing laws, and multiple state and local jurisdictions have adopted or are considering AI-specific requirements.

It is possible that the U.S. and international artificial intelligence regulatory frameworks, along with the adoption of new laws and regulations in other jurisdictions, or the interpretation of existing laws and regulations, may affect the operation of Quantum X Labs's platforms and services and the way in which it uses artificial intelligence, including with respect to how it trains its models, unintentional bias and discrimination, the use of third-party or proprietary data, automated decision-making, consumer disclosures, privacy compliance, cybersecurity and intellectual property rights. Failure to comply with such laws or regulations could subject Quantum X Labs to legal or regulatory liability, investigations, enforcement actions, fines, penalties, contractual disputes or reputational harm.

Further, the cost of complying with such laws or regulations could be significant and would increase Quantum X Labs operating expenses, which could adversely affect its business, financial condition and results of operations. Compliance may also require Quantum X Labs to implement additional governance, testing, monitoring, disclosure or technical controls, modify or limit certain products, services or business practices, delay product development or commercialization, or discontinue certain uses of artificial intelligence technologies altogether. In addition, if Quantum X Labs' artificial intelligence systems produce inaccurate, misleading, biased, discriminatory, infringing, insecure or otherwise problematic outputs, Quantum X Labs could face legal, regulatory, commercial or reputational consequences, which could materially adversely affect its business, financial condition and results of operations.

**Risks Related to Israeli Law and Our Operations in Israel**

***Our headquarters and other significant operations are located in Israel and, therefore, our results may be adversely affected by political, economic and military instability in Israel.***

Our executive offices are located in Tel Aviv, Israel. In addition, the majority of our key employees, officers and directors are residents of Israel. Accordingly, political, economic and military conditions in the Middle East may affect our business directly. Since the establishment of the State of Israel in 1948, a number of armed conflicts have occurred between Israel and its neighboring countries and terrorist organizations active in the region, including Hamas (an Islamist militia and political group in the Gaza Strip), Hezbollah (an Islamist militia and political group in Lebanon) and Iran, which have involved missile strikes, hostile infiltrations, terrorism against civilian targets in various parts of Israel, and recently abduction of soldiers and citizens.

Following the October 7, 2023 attacks by Hamas, Israel has been involved in military conflicts with Hamas, Hezbollah, a terrorist organization based in Lebanon, and Iran, both directly and through proxies like the Houthi movement in Yemen and armed groups in Iraq and other terrorist organizations. Additionally, following the fall of the Assad regime in Syria, Israel has conducted limited military operations targeting the Syrian army, Iranian military assets and infrastructure linked to Hezbollah and other Iran-supported groups. In addition, in October 2025, Israel and Hamas entered into a renewed ceasefire agreement calling for a permanent end of the war. However, there are no assurances that such as agreement will hold. While the conflict has created heightened security concerns, disruptions to business operations, and economic instability, the ceasefire may contribute to improved regional stability. However, the security situation remains fluid, and any renewed military actions, restrictions, or government-imposed measures could adversely affect our operations, supply chains, and financial condition. As a result, the situation remains volatile, with the potential for escalation into a broader regional conflict involving additional terrorist organizations and possibly other countries.

On June 13, 2025, Israel launched a strike against Iran, aimed to disrupt Iran's capacity to coordinate or launch hostilities against Israel. Iran has retaliated in response, firing missiles and drones at Israeli military and civilian infrastructure. While a ceasefire was reached in June 2025 following 12 days of hostilities, on February 28, 2026, the United States and Israel launched coordinated military strikes against Iran, including attacks on strategic military infrastructure and leadership targets, with the stated aim of degrading Iran's capacity to conduct or support hostile operations against them. In response, Iran has fired missiles and drones toward population centers and military installations in Israel, Europe and neighboring countries in the Gulf region, and also launched counter-strikes against U.S. forces and allied bases throughout the Gulf region. While a temporary ceasefire agreed to between Iran and the U.S. on April 8, 2026 as part of ongoing negotiations for a permanent ceasefire agreement, the situation remains volatile and uncertain. Although the ceasefire has been subject to extensions and continued diplomatic engagement, it has reportedly been characterized by tensions, alleged violations and stalled negotiations. We cannot predict if and to what extent this ceasefire will remain in effect or upheld or whether hostilities may resume or further escalate. In addition, in March 2026, hostilities resumed along Israel's northern border with Lebanon, when Hezbollah resumed its attacks as part of a broader regional escalation. In response, Israel resumed military operations against Hezbollah in southern Lebanon. A broader regional conflict involving additional state and non-state actors remains a significant risk. Iran is also believed to have a strong influence among extremist groups in the region, such as Hamas in Gaza, Hezbollah in Lebanon, the Houthi movement in Yemen and various rebel militia groups in Syria and Iraq. Continued military escalation, retaliatory actions, or broader regional involvement may adversely affect economic conditions, disrupt markets, and create uncertainty that could negatively impact our business, financial condition and results of operations.

In connection with the Israeli security cabinet's declaration of war against Hamas and possible hostilities with other organizations, several hundred thousand Israeli military reservists were drafted to perform immediate military service, including the CEO of Gix Media who was called up for reserve service, but has since returned to work full time and his pre-war military reserve duties. Although many of such military reservists have since been released, they may be called up for additional reserve duty, depending on developments in the war in Gaza and along Israel's other borders. We rely on service providers located in Israel and have entered into certain agreements with Israeli counterparties. The absence of our employees or service providers due to their military service in the future may materially and adversely affect our ability to conduct our operations.

Since the war broke out on October 7, 2023, our operations have not been adversely affected by this situation, and we have not experienced disruptions to our business operations. As such, our product and business development activities remain on track. However the intensity and duration of the security situation in Israel have been difficult to predict, as are the economic implications on our business and operations and on Israel's economy in general. If the war extends for a long period of time or expands to other fronts, our operations may be harmed.

Our commercial insurance does not cover losses that may occur as a result of events associated with war and terrorism. Although the Israeli government currently covers the reinstatement value of certain direct damages that are caused by terrorist attacks or acts of war, we cannot assure you that such government coverage will be maintained or that it will sufficiently cover our potential damages. Any losses or damages incurred by us could have a material adverse effect on our business.

The global perception of Israel and Israeli companies, influenced by actions by international judicial bodies, may lead to increased sanctions and other negative measures against Israel, as well as Israeli companies and academic institutions. There is also a growing movement among countries, activists, and organizations to boycott Israeli goods, services and academic research or restrict business with Israel, which could affect business operations. If these efforts become widespread, along with any future rulings from international tribunals against Israel, they could significantly and negatively impact business operations.

Prior to the October 2023 war, the Israeli government pursued changes to Israel's judicial system and has recently renewed its efforts to effect such changes. In response to the foregoing developments, certain individuals, organizations, and institutions, both within and outside of Israel, voiced concerns that such proposed changes, if adopted, may negatively impact the business environment in Israel. Such proposed changes may also lead to political instability or civil unrest. If such changes to Israel's judicial system are pursued by the government and approved by the parliament, this may have an adverse effect on our business, results of operations, and ability to raise additional funds, if deemed necessary by our management and board of directors.

***Our operations may be disrupted as a result of the obligation of management or key personnel to perform military service.***

Certain of our employees and consultants in Israel, including members of our senior management, may be obligated to perform military reserve duty generally until they reach the age of 40 (or older, for officers or other citizens who hold certain positions in the Israeli armed forces reserves) and, in the event of a military conflict, may be called to active duty. In response to increases in terrorist activity, there have been periods of significant call-ups of military reservists. It is possible that there will be similar large-scale military reserve duty call-ups in the future. Our operations could be disrupted by the absence of a significant number of our officers, directors, employees and consultants. Military service call ups that result in absences of personnel from us for an extended period of time may materially and adversely affect our business, prospects, financial condition and results of operations.

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***We are exposed to fluctuations in currency exchange rates.***

Our functional currency is the U.S. dollar and our revenue and expenses are primarily denominated in U.S. dollars, with the exception of a portion of our operating expenses that consists of employee salaries and lease payments on our Israeli facilities, which are incurred in NIS. In addition, Quantum X Labs's revenues are denominated primarily in U.S. dollars, and we expect its future revenues to be denominated primarily in U.S. dollars. However, certain amount of our Quantum X Labs's expenses and investments are in NIS. Therefore, we are exposed to currency exchange fluctuations in other currencies, particularly in NIS and the risks related thereto. As a result, we are affected by foreign currency exchange fluctuations through both translation risk and transaction risk. Thus, we are exposed to the risks that: (a) the NIS may appreciate relative to the dollar; (b) the NIS devalue relative to the dollar; (c) the inflation rate in Israel may exceed the rate of devaluation of the NIS; or (d) the timing of such devaluation may lag behind inflation in Israel. In any such event, the dollar cost of our operations in Israel would increase and our dollar-denominated results of operations would be adversely affected. Our operations also could be adversely affected if we are unable to effectively hedge against currency fluctuations in the future.

***The termination or reduction of tax and other incentives that the Israeli government provides to Israeli companies may increase our costs and taxes.***

The Israeli government currently provides tax and capital investment incentives to Israeli companies, as well as grant and loan programs relating to research and development and marketing and export activities. We may in the future to receive grants from governmental authorities, including grants from the Israel Innovation Authority ("IIA") and similar bodies, which are provided for research and development purposes. These incentives and grants impose restrictions on the activities of the recipient companies, such as limitations on manufacturing outside of Israel and on selling know-how to foreign entities. Violating these restrictions, according to the approval letters and relevant laws, may subject the violating companies to various sanctions, including financial and criminal penalties. Changes in the budgets of the aforementioned governmental bodies, which prevent or reduce the grants and/or incentives we may receive in the future, could materially impact our operations and results. Furthermore, foreign investments are influenced, among other things, by the continued encouragement of foreign investments by regulatory bodies in Israel, including in the area of taxation. If such encouragement of foreign investments is discontinued and/or restricted, it could harm foreign investments in us and consequently impair our operations.

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***We received Israeli government grants for certain of our research and development activities, the terms of which may require us to pay royalties and to satisfy specified conditions in order to manufacture products and transfer technologies outside of Israel. If we fail to satisfy these conditions, we may be required to pay penalties and refund grants previously received.***

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Deliverz.ai's research and development efforts have been financed in part through royalty-bearing grants in an aggregate amount of approximately NIS 1.4 million ($439 thousand) that Deliverz.ai received from the IIA as of December 31, 2025. With respect to the royalty-bearing grants, we are committed to pay royalties at a rate of 2.5% to 3% on sales proceeds from our products that were developed under IIA programs, up to the total amount of grants received and bearing interest rate at an annual rate of SOFR applicable to U.S. dollar deposits. As of December 31, 2025, Deliverz.ai did not recognize a liability to the IIA, as there is uncertainty regarding the generation of future revenues and the completion of the development. Until October 25, 2023, the interest was calculated at a rate based on 12-month LIBOR applicable to US Dollar deposits. However, on October 25, 2023, the IIA published a directive concerning changes in royalties to address the expiration of the LIBOR. Under such directive, regarding IIA grants approved by the IIA prior to January 1, 2024 but which are outstanding thereafter, as of January 1, 2024, the annual interest is calculated at a rate based on 12-month Secured Overnight Financing Rate, or SOFR, or at an alternative rate published by the Bank of Israel plus 0.71513%; and, for grants approved on or following January 1, 2024, the annual interest shall be the higher of (i) the 12 months SOFR interest rate, plus 1%, or (ii) a fixed annual interest rate of 4%. Additionally, if the IIA's research committee grants us approval to transfer manufacturing rights or part of them outside of Israel, according to the provisions of the Research Law and the relevant benefit track, we will be required to pay royalties up to a total amount equal to 300% of the IIA grant amount plus annual interest, as determined by the IIA and according to the manufacturing rights which transfer outside of Israel is approved by the IIA. We do not anticipate being required to pay royalties at the increased rate. Furthermore, if the IIA's research committee grants us approval to transfer know-how outside of Israel, according to the provisions of the Research Law and the relevant benefit track, we will be required to pay royalties up to a total amount equal to up to six times the total grants received by us under the Research Law and other IIA support tracks, regarding that know-how, plus annual interest.

We are further required to comply with the requirements of the Israeli Encouragement of Industrial Research, Development and Technological Innovation Law, 5744-1984, as amended, and related regulations, or the Research Law, with respect to those past grants. When a company develops know-how, technology or products using IIA grants, the terms of these grants and the Research Law restrict the transfer or license of such know-how, and the transfer of manufacturing or manufacturing rights of such products, technologies or know-how outside of Israel, without the prior approval of the IIA. Therefore, the discretionary approval of an IIA committee would be required for any transfer or license to third parties inside or outside of Israel of know-how or for the transfer outside of Israel of manufacturing or manufacturing rights related to those aspects of such technologies. We may not receive those approvals. Furthermore, the IIA may impose certain conditions on any arrangement under which it permits us to transfer technology or development. As part of the conditions for receiving the IIA grant, we committed, among other things, to comply with the provisions of the Research Law and the intellectual property laws as they may be in effect from time to time in Israel. We also committed that if it is convicted of an offense under the intellectual property laws of Israel, in a final and conclusive judgment in an Israeli court, the IIA may cancel any benefit we received from it, including a grant, loan, tax benefit, or any other financial advantage, or part of such benefit, and demand their return with interest and linkage differentials as required by law. Additionally, we and our controlling shareholder or interested party (as defined in the Securities Law), as applicable, should report to the IIA's research committee on any change in control of the company and any change in the holding of control means (as defined in the Securities Law) in the company, which makes someone who is not an Israeli citizen or resident or a corporation incorporated in Israel, a direct interested party in the company. Upon such reporting, the interested party will sign an undertaking towards the IIA to comply with the provisions of the Research Law in the form published by the IIA.

The transfer or license of IIA-supported technology or know-how outside of Israel and the transfer of manufacturing of IIA-supported products, technology or know-how outside of Israel may involve the payment of significant amounts, depending upon the value of the transferred or licensed technology or know-how, our research and development expenses, the amount of IIA support, the time of completion of the IIA-supported research project and other factors. These restrictions and requirements for payment may impair our ability to sell, license or otherwise transfer our technology assets outside of Israel or to outsource or transfer development or manufacturing activities with respect to any product or technology outside of Israel. Furthermore, the consideration available to our shareholders in a transaction involving the transfer outside of Israel of technology or know-how developed with IIA funding (such as a merger or similar transaction) may be reduced by any amounts that we are required to pay to the IIA.

***We may be required to pay monetary remuneration to our Israeli employees for their inventions, even if the rights to such inventions have been duly assigned to us.***

We generally enter into agreements with our Israeli employees pursuant to which such individuals agree that any inventions created in the scope of their employment are either owned exclusively by us or are assigned to us, depending on the jurisdiction, without the employee retaining any rights. A portion of our intellectual property has been developed by our Israeli employees during their employment for us. Under the Israeli Patent Law, 5727-1967, or the Patent Law, inventions conceived by an employee during the course of his or her employment and within the scope of said employment are considered "service inventions. Service inventions belong to the employer by default, absent a specific agreement between the employee and employer otherwise. The Patent Law also provides that if there is no agreement regarding the remuneration for the service inventions, even if the ownership rights were assigned to the employer, the Israeli Compensation and Royalties Committee, or the Committee, a body constituted under the Patent Law, shall determine whether the employee is entitled to remuneration for these inventions. The Committee has not yet determined the method for calculating this Committee-enforced remuneration. While it has previously been held that an employee may waive his or her rights to remuneration in writing, orally or by conduct, litigation is pending in the Israeli labor court is questioning whether such waiver under an employment agreement is enforceable. Although our Israeli employees have agreed that we exclusively own any rights related to their inventions, we may face claims demanding remuneration in consideration for employees' service inventions. As a result, we could be required to pay additional remuneration or royalties to our current and/or former employees, or be forced to litigate such claims, which could negatively affect our business.

We have non-competition agreements with our employees, all of which are governed by Israeli law. These agreements prohibit our employees from competing with or working for our competitors, generally during their employment and for up to 12 months after termination of their employment. However, Israeli courts are reluctant to enforce non-compete undertakings of former employees and tend, if at all, to enforce those provisions for relatively brief periods of time in restricted geographical areas, and only when the employee has obtained unique value to the employer specific to that employer's business and not just regarding the professional development of the employee. If we are not able to enforce non-compete covenants, we may be faced with added competition.

***Provisions of Israeli law and our articles of association may delay, prevent or otherwise impede a merger with, or an acquisition of, us, which could prevent a change of control, even when the terms of such a transaction are favorable to us and our shareholders.***

Israeli corporate law regulates mergers, requires tender offers for acquisitions of shares above specified thresholds, requires special approvals for transactions involving directors, officers or significant shareholders and regulates other matters that may be relevant to such types of transactions. For example, a merger may not be consummated unless at least 50 days have passed from the date on which a merger proposal is filed by each merging company with the Israel Registrar of Companies and at least 30 days have passed from the date on which the shareholders of both merging companies have approved the merger. In addition, a majority of each class of securities of the target company must approve a merger. Moreover, a tender offer for all of a company's issued and outstanding shares can only be completed if the acquirer receives positive responses from the holders of at least 95% of the issued share capital. Completion of the tender offer also requires approval of a majority of the offerees that do not have a personal interest in the tender offer, unless, following consummation of the tender offer, the acquirer would hold at least 98% of the Company's outstanding shares. Furthermore, the shareholders, including those who indicated their acceptance of the tender offer, may, at any time within six months following the completion of the tender offer, claim that the consideration for the acquisition of the shares does not reflect their fair market value, and petition an Israeli court to alter the consideration for the acquisition accordingly, unless the acquirer stipulated in its tender offer that a shareholder that accepts the offer may not seek such appraisal rights, and the acquirer or the company published all required information with respect to the tender offer prior to the tender offer's response date.

In addition, Israeli corporate law requires special approvals for certain transactions involving directors, officers or significant shareholders and regulates other matters that may be relevant to these types of transactions.

Israeli corporate law does not provide for shareholder action by written consent for public companies, thereby requiring all shareholder actions to be taken at a general meeting of shareholders.

Provisions in our articles of association may discourage, delay, prevent or otherwise impede a merger, acquisition or other change in control of us that shareholders may consider favorable, including transactions in which they might otherwise receive a premium for their ordinary shares. As such, these provisions could also limit the price that investors might be willing to pay in the future for our ordinary shares, thereby depressing the market price of our ordinary shares. In addition, because our board of directors is responsible for appointing the members of our management team, these provisions may frustrate or prevent any attempts by our shareholders to replace or remove our current management by making it more difficult for shareholders to replace members of our board of directors.

Furthermore, Israeli tax considerations may make potential transactions unappealing to us or to our shareholders whose country of residence does not have a tax treaty with Israel exempting such shareholders from Israeli tax. For example, Israeli tax law does not recognize tax-free share exchanges to the same extent as U.S. tax law. With respect to mergers, Israeli tax law allows for tax deferral in certain circumstances but makes the deferral contingent on the fulfillment of a number of conditions, including, in some cases, a holding period of two years from the date of the transaction during which sales and dispositions of shares of the participating companies are subject to certain restrictions. Moreover, with respect to certain share swap transactions, the tax deferral is limited in time, and when such time expires, the tax becomes payable even if no disposition of the shares has occurred. These provisions could delay, prevent or impede an acquisition of us or our merger with another company, even if such an acquisition or merger would be beneficial to us or to our shareholders.

As a corporation incorporated under the laws of the State of Israel, we are also subject to the Israeli Economic Competition Law, 1988 and the regulations promulgated thereunder (formerly known as the Israeli Antitrust Law, 1988), under which we may be required in certain circumstances to obtain the approval of the Israel Competition Authority (formerly known as the Israel Antitrust Authority) in order to consummate a merger or a sale of all or substantially all of our assets.

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***Rights and responsibilities of shareholders will be governed in key respects by Israeli laws, which differs in some material respects from the rights and responsibilities of shareholders of U.S. companies.***

The rights and responsibilities of the holders of our ordinary shares are governed by our articles of association and by Israeli law. These rights and responsibilities differ in some material respects from the rights and responsibilities of shareholders in U.S. companies. In particular, a shareholder of an Israeli company has a duty to act in good faith and in a customary manner in exercising its rights and performing its obligations towards the company and other shareholders, and to refrain from abusing its power in such company, including, among other things, in voting at a general meeting of shareholders on matters such as amendments to a company's articles of association, increases in a company's authorized share capital, mergers and acquisitions and related party transactions requiring shareholder approval, as well as a general duty to refrain from discriminating against other shareholders. In addition, a shareholder who is aware that it possesses the power to determine the outcome of a vote at a meeting of the shareholders or to appoint or prevent the appointment of a director or executive officer in the company has a duty of fairness toward the company. There is limited case law available to assist us in understanding the nature of these duties or the implications of these provisions. These provisions may be interpreted to impose additional obligations and liabilities on holders of our ordinary shares that are not typically imposed on shareholders of U.S. companies.

***It may be difficult to enforce a U.S. judgment against us, our officers and directors in Israel or the United States, or to assert U.S. securities laws claims in Israel or serve process on our officers and directors.***

Most of our directors or officers are not residents of the United States and most of their and our assets are located outside the United States. Service of process upon us or our non-U.S. resident directors and officers and enforcement of judgments obtained in the United States against us or our non-U.S. directors and executive officers may be difficult to obtain within the United States. Israeli courts may refuse to hear a claim based on a violation of U.S. securities laws against us or our non-U.S. officers and directors because Israel may not be the most appropriate forum to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to the claim. If U.S. law is found to be applicable, the content of applicable U.S. law must be proved as a fact, which can be a time-consuming and costly process. Certain matters of procedure will also be governed by Israeli law. There is little binding case law in Israel addressing the matters described above. Israeli courts might not enforce judgments rendered outside Israel, which may make it difficult to collect on judgments rendered against us or our non-U.S. officers and directors.

Moreover, among other reasons, including but not limited to, fraud or absence of due process, or the existence of a judgment which is at variance with another judgment that was given in the same matter if a suit in the same matter between the same parties was pending before a court or tribunal in Israel, an Israeli court will not enforce a non-Israeli judgment if it was given in a state whose laws do not provide for the enforcement of judgments of Israeli courts (subject to exceptional cases) or if its enforcement is likely to prejudice the sovereignty or security of the State of Israel.

**Risks Related to Ownership of Our Ordinary Shares**

***The market price of our ordinary shares may be highly volatile, and you could lose all or part of your investment.***

The market price of our ordinary shares is likely to be volatile. This volatility may prevent you from being able to sell your ordinary shares at or above the price you paid for your securities. Our share price could be subject to wide fluctuations in response to a variety of factors, which include:

● whether we achieve our anticipated corporate objectives;

● actual or anticipated fluctuations in our quarterly or annual operating results;

● changes in our financial or operational estimates or projections;

● our ability to implement our operational plans;

● changes in the economic performance or market valuations of companies similar to ours; and

● general economic or political conditions in the United States or elsewhere.

In addition, the stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry factors may negatively affect the market price of our ordinary shares, regardless of our actual operating performance, and we have little or no control over these factors.

***There has been no prior public market in the United States for our ordinary shares, and an active trading market in the United States may not develop.***

Prior to the anticipated listing of our ordinary shares on Nasdaq, our ordinary shares have traded only on the TASE and there has been no public market in the U.S. for our ordinary shares. There can be no assurance that our application to list our ordinary shares on Nasdaq will be approved, or that an active trading market in the U.S. will develop or, if developed, that it will be sustained. The lack of an active market may impair your ability to sell your shares at the time you wish to sell them or at a price that you consider reasonable. An inactive market may also impair our ability to raise capital by selling shares and may impair our ability to acquire other companies or technologies by using our ordinary shares as consideration. The lack of an active trading market may also reduce the fair value of your shares. When our ordinary shares commence trading on Nasdaq, we expect the initial listing price of our ordinary shares to likely be based on the current trading price of our ordinary shares on the TASE. However, we cannot predict the price at which our ordinary shares will trade and cannot guarantee that investors can sell their shares at any particular price. There is no assurance that an active and liquid trading market for our ordinary shares will develop or be sustained in the United States or maintained in Israel.

***Our management team will have broad discretion in making strategic decisions to execute their growth plans, and there can be no assurance that our management's decisions will result in successful achievement of our business objectives or will not have unintended consequences that negatively impact our growth prospects.***

Our management will have broad discretion in making strategic decisions to execute their growth plans and may devote time and company resources to new or expanded solution offerings, potential acquisitions, prospective customers or other initiatives that do not necessarily improve our operating results or contribute to our growth. Management's failure to make strategic decisions that are ultimately accretive to our growth may result in unfavorable returns and uncertainty about our prospects, each of which could cause the price of our ordinary shares to decline.

***Our principal shareholders have significant influence over us.***

As of the date of this registration statement, our principal shareholders each holding more than 5% of our outstanding ordinary shares collectively beneficially own approximately 47.64% of our outstanding ordinary shares. See "Item 7.A. Major Shareholders". These shareholders or their affiliates will be able to exert significant influence over us and, if acting together, will be able to control matters requiring shareholder approval, including the election of directors and approval of significant corporate transactions, including a merger, consolidation or sale of all or substantially all of our assets and the issuance or redemption of equity interests in certain circumstances. The interests of these shareholders may not always coincide with, and in some cases may conflict with, our interests and the interests of our other shareholders. For instance, these shareholders could attempt to delay or prevent a change in control of our company, even if such change in control would benefit our other shareholders, which could deprive our shareholders of an opportunity to receive a premium for their ordinary shares. This concentration of ownership may also affect the prevailing market price of our ordinary shares due to investors' perceptions that conflicts of interest may exist or arise. As a result, this concentration of ownership may not be in your best interests.

***Our securities will be traded on more than one market or exchange and this may result in price variations.***

Our ordinary shares have been trading on the TASE since February 25, 1994. Assuming that our ordinary shares are listed for trading on the Nasdaq, trading in our ordinary shares will take place in different currencies (U.S. dollars on the Nasdaq and NIS on the TASE), and at different times (resulting from different time zones, trading days, and public holidays in the United States and Israel). The trading prices of our securities on these two markets may differ due to these and other factors. Any decrease in the price of our ordinary shares on the TASE could cause a decrease in the trading price of our ordinary shares on the Nasdaq.

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***If our existing shareholders sell ordinary shares, either on the TASE or Nasdaq, after our anticipated listing, the market price of our ordinary shares could decline.***

The sale of substantial amounts of our ordinary shares in the public market, or the perception that such sales could occur, could harm the prevailing market price of our ordinary shares on the TASE or Nasdaq. These sales, or the perception that these sales could occur, also might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. As of the date of this registration statement, we have a total of 2,075,079 ordinary shares outstanding. All of our outstanding shares will be freely tradable without restriction or further registration under the Securities Act, except that any shares held by our affiliates may be sold only in compliance with Rule 144 of the Securities Act and an aggregate of 622,524 ordinary shares issued in connection with the Deliverz.ai acquisition are subject to additional restrictions under the Israeli Securities Law, 5728-1968, or the Israeli Securities Law. Under Israeli Securities Law, no sales are permitted for the first six months after issuance, and for the following 18 months, sales each quarter cannot exceed 1% of the company's outstanding share capital or, on any given trading day, more than the average daily trading volume on the TASE during the prior eight weeks.

We intend to file one or more registration statements on Form S-8 under the Securities Act to register our ordinary shares or securities convertible into or exchangeable for our ordinary shares issued pursuant to our equity incentive plans. The ordinary shares registered under such registration statements will be available for sale in the open market. We expect that the initial registration statement on Form S-8 will cover approximately ordinary shares.

As restrictions on resale end, the market price of our ordinary shares could drop significantly if the holders of these restricted shares sell them or are perceived by the market as intending to sell them. These factors could also make it more difficult for us to raise additional funds through future offerings of our ordinary shares or other securities.

***If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they adversely change their recommendations or publish negative reports regarding our business or the ordinary shares, our share price and trading volume could decline.***

The trading market for the ordinary shares will be influenced by the research and reports that industry or securities analysts may publish about us, our business, our market or our competitors. We do not have any control over these analysts and we cannot provide any assurance that analysts will cover us or provide favorable coverage. If any of the analysts who may cover us adversely change their recommendation regarding the ordinary shares, or provide more favorable relative recommendations about our competitors, the price of our ordinary shares would likely decline. If any analyst who may cover us were to cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause the price of our ordinary shares or trading volume to decline.

***If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, our shareholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our ordinary shares.***

 ****

Following our anticipated listing on Nasdaq, we will become subject to the periodic reporting requirements of the Exchange Act. Although we evaluated our internal controls over financial reporting and identified no material weakness, we may not have developed sufficient infrastructure to accurately and timely report our financial results and may otherwise have material weaknesses over internal systems of control leading to delay, errors and restatement of financial statements. We cannot provide assurance that material weaknesses or control deficiencies will not occur in the future.

There is a possibility that we, once a public company, will be unable to comply with the requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner or assert that our internal control over financial reporting is effective, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our shares could be negatively affected. The Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial reporting. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. In addition, we will be required to have our independent registered public accounting firm attest to the effectiveness of our internal controls over financial reporting beginning with our annual report on Form 20-F following the date on which we are no longer an "emerging growth company" as defined in the JOBS Act (unless we meet the requirements of a non-accelerated filer). If we are not able to comply with the requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner, or if we or our independent registered public accounting firm identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the market price of our ordinary shares could decline.

Our ability to successfully implement our business plan and comply with Section 404 of the Sarbanes-Oxley Act requires us to be able to prepare timely and accurate financial statements. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems, procedures, or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financial reporting is effective and to obtain an unqualified report on internal controls from our independent registered public accounting firm. Moreover, we cannot be certain that these measures would ensure that we implement and maintain adequate controls over our financial processes and reporting in the future. Even if we were to conclude, and our independent registered public accounting firm were to concur, that our internal control over financial reporting provided reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP, because of its inherent limitations, internal control over financial reporting may not prevent or detect fraud or misstatements. This, in turn, could have an adverse impact on trading prices for our ordinary shares, and could adversely affect our ability to access the capital markets.

***If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below the expectations of securities analysts and investors, resulting in a decline in the trading price of our ordinary shares.***

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. See "Item 5 –Operating and Financial Review and Prospects", the results of which form the basis for making judgments about the carrying values of assets, liabilities, equity, revenue, and expenses that are not readily apparent from other sources. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below our publicly announced guidance or the expectations of securities analysts and investors, resulting in a decline in the market price of our ordinary shares.

***We have never paid cash dividends on our share capital, and we do not plan on paying any cash dividends in the foreseeable future.***

We have never declared or paid cash dividends, and we do not plan on paying cash dividends in the foreseeable future. Therefore, you should not rely on an investment in ordinary shares as a source for any future dividend income. Our board of directors has complete discretion as to whether to distribute dividends. Even if our board of directors decides to declare and pay dividends, the timing, amount and form of future dividends, if any, will depend on our future results of operations and cash flow, our capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiaries, our financial condition, contractual restrictions and other factors deemed relevant by our board of directors. In addition, the Israeli Companies Law, 5759-1999, or the Companies Law, imposes restrictions on our ability to declare and pay dividends.

 ****

***We may be a "passive foreign investment company," or PFIC, for U.S. federal income tax purposes in the current taxable year or may become one in any subsequent taxable year. There generally would be negative tax consequences for U.S. taxpayers that are holders of the ordinary shares if we are or were to become a PFIC.***

Based on the projected composition of our income and valuation of our assets, we do not expect we were a PFIC for 2024, and we do not expect to become a PFIC in the future, although there can be no assurance in this regard. The determination of whether we are a PFIC is made on an annual basis and will depend on the composition of our income and assets from time to time. We will be treated as a PFIC for U.S. federal income tax purposes in any taxable year in which either (1) at least 75% of our gross income is "passive income" or (2) on average at least 50% of our assets by value produce passive income or are held for the production of passive income. Passive income for this purpose generally includes, among other things, certain dividends, interest, royalties, rents and gains from commodities and securities transactions and from the sale or exchange of property that gives rise to passive income. Passive income also includes amounts derived by reason of the temporary investment of funds, including those raised in a public offering. In determining whether a non-U.S. corporation is a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account. The tests for determining PFIC status are applied annually, and it is difficult to make accurate projections of future income and assets which are relevant to this determination. In addition, our PFIC status may depend in part on the market value of the ordinary shares. Accordingly, there can be no assurance that we currently are not or will not become a PFIC in the future. If we are a PFIC in any taxable year during which a U.S. taxpayer holds the ordinary shares, such U.S. taxpayer would be subject to certain adverse U.S. federal income tax rules. In particular, if the U.S. taxpayer did not make an election to treat us as a "qualified electing fund", or QEF, or make a "mark-to-market" election, then "excess distributions" to the U.S. taxpayer, and any gain realized on the sale or other disposition of the ordinary shares by the U.S. taxpayer: (1) would be allocated ratably over the U.S. taxpayer's holding period for the ordinary shares; (2) the amount allocated to the current taxable year and any period prior to the first day of the first taxable year in which we were a PFIC would be taxed as ordinary income; and (3) the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year. In addition, if the U.S. Internal Revenues Service, or the IRS, determines that we are a PFIC for a year with respect to which we have determined that we were not a PFIC, it may be too late for a U.S. taxpayer to make a timely QEF or mark-to-market election. U.S. taxpayers that have held the ordinary shares during a period when we were a PFIC will be subject to the foregoing rules, even if we cease to be a PFIC in subsequent years, subject to exceptions for U.S. taxpayers who made a timely QEF or mark-to-market election. A U.S. taxpayer can make a QEF election by completing the relevant portions of and filing IRS Form 8621 in accordance with the instructions thereto. We do not intend to notify U.S. taxpayers that hold the ordinary shares if we believe we will be treated as a PFIC for any taxable year in order to enable U.S. taxpayers to consider whether to make a QEF election. In addition, we do not intend to furnish such U.S. taxpayers annually with information needed in order to complete IRS Form 8621 and to make and maintain a valid QEF election for any year in which we or any of our subsidiaries are a PFIC. U.S. taxpayers that hold the ordinary shares are strongly urged to consult their tax advisors about the PFIC rules, including tax return filing requirements and the eligibility, manner, and consequences to them of making a QEF or mark-to-market election with respect to the ordinary shares in the event that we are a PFIC (see "Item 10.E. *Taxation—Certain Material U.S. Federal Income Tax Considerations—Passive Foreign Investment Companies*" for additional information).

***We are an "emerging growth company" and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our ordinary shares less attractive to investors.***

For so long as we remain an "emerging growth company" as defined in the JOBS Act, we may take advantage of certain exemptions from various requirements that are applicable to public companies that are not "emerging growth companies." These provisions include, among other exemptions, that:

● we are not required to engage an auditor to report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

● we are not required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis); and

● to the extent that we no longer qualify as a foreign private issuer, (i) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and (ii) exemptions from the requirement to hold a non-binding advisory vote on executive compensation, including golden parachute compensation

We intend to take advantage of these exemptions until we are no longer an "emerging growth company." We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of our first sale of common equity securities pursuant to an effective registration statement under the Securities Act, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, as defined in the rule under the Exchange Act, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

We cannot predict if investors will find our ordinary shares less attractive because we may rely on these exemptions. If some investors find our ordinary shares less attractive as a result, there may be a less active trading market for the ordinary shares, and the trading price may be more volatile and may decline.

***As a "foreign private issuer" we are subject to less stringent disclosure requirements than domestic registrants and are permitted, and decided to elect to follow certain home country corporate governance practices instead of otherwise applicable SEC and Nasdaq requirements, which may result in less protection than is accorded to investors under rules applicable to domestic U.S. registrants.***

As a foreign private issuer and emerging growth company, we may be subject to different disclosure and other requirements than domestic U.S. registrants and non-emerging growth companies. For example, as a foreign private issuer, in the United States, we are not subject to the same disclosure requirements as a domestic U.S. registrant under the Exchange Act, including the requirements to prepare and issue quarterly reports on Form 10-Q or to file current reports on Form 8-K upon the occurrence of specified significant events and the proxy rules applicable to domestic U.S. registrants under Section 14 of the Exchange Act. Section 8103 of the National Defense Authorization Act for Fiscal Year 2026, named the "Holding Foreign Insiders Accountable Act", which was signed into law on December 18, 2025, will require directors and officers of foreign private issuers to make insider reports under *Section 16*(a) of the Exchange Act, effective March 18, 2026. Our principal shareholders continue to remain exempt from the reporting under Section 16(a) of the Exchange Act and our directors, officers and principal shareholders continue to remain exempt from the short-swing profit recovery provisions contained in Section 16(b) of the Exchange Act. In addition, we intend to rely on exemptions from certain U.S. rules which will permit us to follow Israeli legal requirements rather than certain requirements applicable to U.S. domestic registrants.

We will follow Israeli laws and regulations that are applicable to Israeli companies. However, Israeli laws and regulations applicable to Israeli companies do not contain any provisions comparable to the U.S. proxy rules, the U.S. rules relating to the filing of reports on Form 10-Q or 8-K or the U.S. rules relating to liability for insiders who profit from trades made in a short period of time, as referred to above.

Furthermore, foreign private issuers are required to file their annual report on Form 20-F within 120 days after the end of each fiscal year, while U.S. domestic registrants that are non-accelerated filers are required to file their annual report on Form 10-K within 90 days after the end of each fiscal year. Foreign private issuers are also exempt from Regulation Fair Disclosure, aimed at preventing issuers from making selective disclosures of material information, although we will be subject to Israeli laws and regulations having substantially the same effect as Regulation Fair Disclosure. As a result of the above, even though we are required to file reports on Form 6-K disclosing the limited information which we have made or are required to make public pursuant to Israeli law, or are required to distribute to shareholders generally, and that is material to us, you may not receive information of the same type or amount that is required to be disclosed to shareholders of a U.S. registrant.

These exemptions and leniencies will reduce the frequency and scope of information and protections to which you are entitled as an investor.

The determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter and, accordingly, the next determination will be made with respect to us on June 30, 2026. In the future, we would lose our foreign private issuer status if a majority of our shareholders, directors or management are U.S. citizens or residents and we fail to meet additional requirements necessary to avoid loss of foreign private issuer status. The regulatory and compliance costs to us under U.S. securities laws as a U.S. domestic registrant may be significantly higher.

***We may be subject to securities litigation, which is expensive and could divert management attention.***

In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Litigation of this type could result in substantial costs and diversion of management's attention and resources, which could seriously hurt our business. Any adverse determination in litigation could also subject us to significant liabilities.

 ****

***We will incur significant increased costs as a result of the listing of our securities for trading on Nasdaq. By becoming a public company in the United States, our management will be required to devote substantial time to new compliance initiatives as well as compliance with ongoing U.S. requirements.***

Upon the listing of securities on Nasdaq, we will become a publicly traded company in the United States. As a public company in the United States, we will incur additional significant accounting, legal and other expenses that we did not incur before the listing. We also anticipate that we will incur costs associated with corporate governance requirements of the SEC, as well as requirements under Section 404 and other provisions of the Sarbanes-Oxley Act. We expect these rules and regulations to increase our legal and financial compliance costs, introduce new costs such as investor relations, stock exchange listing fees and shareholder reporting, and to make some activities more time consuming and costly. The implementation and testing of such processes and systems may require us to hire outside consultants and incur other significant costs.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act, beginning as early as our second annual report on Form 20-F for the fiscal year ended December 31, 2023. In addition, we will be required to have our independent registered public accounting firm attest to the effectiveness of our internal control over financial reporting beginning with our annual report on Form 20-F following the date on which we are no longer an emerging growth company. Our compliance with Section 404 of the Sarbanes-Oxley Act will require that we incur substantial accounting expense and expend significant management efforts. If we are not able to comply with the requirements of Section 404 in a timely manner, or if we or our independent registered public accounting firm identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the market price of our shares could decline and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities, which would require additional financial and management resources.

Any future changes in the laws and regulations affecting public companies in the United States, including Section 404 and other provisions of the Sarbanes-Oxley Act, and the rules and regulations adopted by the SEC, for so long as they apply to us, will result in increased costs to us as we respond to such changes. These laws, rules and regulations could make it more difficult or more costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. The impact of these requirements could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, our board committees, or as executive officers.

***The estimates of market opportunity and forecasts of market growth included in this registration statement may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business could fail to grow at similar rates, or at all.***

The estimates of market opportunity and forecasts of market growth included in this Annual Report may prove to be inaccurate. Market opportunity estimates and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate, including as a result of any of the risks described in this Annual Report.

In addition, the variables that go into the calculation of our market opportunity are subject to change over time, and there is no guarantee that any particular number or percentage of addressable users or companies covered by our market opportunity estimates will purchase our offerings or generate any particular level of revenue for us. In addition, our ability to expand in any of our target markets depends on a number of factors, including the cost, performance, and perceived value associated with our platform and those of our competitors. Even if the markets in which we compete meet the size estimates and growth forecasted in this Annual Report, our business could fail to grow at similar rates, or at all. Our growth is subject to many factors, including our success in implementing our business strategy, which is subject to many risks and uncertainties. Accordingly, the forecasts of market growth included in this registration statement should not be taken as indicative of our future growth.

**ITEM 4. INFORMATION ON THE COMPANY**

**A. History and Development of the Company**

Our legal and commercial name is Gix Internet Ltd. (the "Company"). We are a company limited by shares organized under the laws of the State of Israel and were incorporated on July 24, 1978, under the name Theodor Herzl Hotel Jerusalem Ltd. On November 8, 1993, we changed our name to Maariv Holding Ltd, on October 24, 2013, we changed our name to Algomizer Ltd, and on June 6, 2020, we changed our name to Gix Internet Ltd.

On February 7, 2019, we entered into share exchange agreement (the "Recapitalization Transaction") with Quantum X Labs Inc. (Nasdaq: QXL) (f/k/a Viewbix Inc. (Nasdaq: VBIX) and prior to that, Virtual Crypto Technologies, Inc.), a company organized under the laws of the State of Delaware ("Quanum X Labs"), pursuant to which we assigned, transferred and delivered 99.83% of our holdings in Viewbix Ltd., a company organized under the laws of the State of Israel ("Viewbix Israel"), to Quantum X Labs in exchange for shares of restricted common stock, par value $0.0001 per share, of Quantum X Labs, which resulted in Quantum X Labs becoming a majority-owned subsidiary of the Company. In connection with the Recapitalization Transaction, effective as of July 26, 2019, Quantum X Labs's name was changed from Virtual Crypto Technologies, Inc. to Viewbix Inc. On April 30, 2026, Viewbix Inc. changed its name to Quantum X Labs Inc. As of the date hereof, we hold approximately 21.13% of Quantum X Labs's outstanding shares of common stock following the closings of the November 2025 Private Placement and Quantum Acquisition (each as defined below and as further described below in Item 4. "Information on Our Company—B. Business Overview—Quantum X Labs, Investment in Digital Advertising and Changes in Our Business". On September 25, 2025, following a decrease in our holding percentage in Quantum X Labs and a change in the composition of Quantum X Labs's board of directors, we lost control over Quantum X Labs. Accordingly, as a result of losing both majority ownership and control of Quantum X Labs, we will cease to consolidate the financial statements of Quantum X Labs as of the date of the change in control. Following the deconsolidation, our retained interest in Quantum X Labs has been accounted for under the equity method of accounting, as we continue to exercise significant influence but no longer control its operations.

On January 5, 2025, we entered into a securities exchange agreement (the "Securities Exchange Agreement") with Deliverz.ai, a company organized under the laws of the State of Israel, and all of the shareholders of Deliverz.ai (the "Deliverz.ai Shareholders") pursuant to which we issued to the Deliverz.ai Shareholders an aggregate of 25% of our issued and outstanding capital stock on a pro rata and post-closing basis, equal to 518,770 of our ordinary shares in exchange for 100% of Deliverz.ai's issued and outstanding share capital on a fully diluted and post-closing basis, equal to 1,000,000 Deliverz.ai ordinary shares. In addition, we also issued 103,754 of our ordinary shares, representing 5% of our issued and outstanding capital stock on post-closing basis, as a finder's fee to the finder that introduced us to Deliverz.ai. The transactions contemplated by the Securities Exchange Agreement closed on July 10, 2025 subject to the satisfaction of customary closing conditions, which resulted in Deliverz.ai becoming a wholly-owned subsidiary of the Company. Pursuant to the Securities Exchange Agreement, we may issue to Deliverz.ai Shareholders up to an additional 537,634 ordinary shares upon the achievement of certain milestones.

Our principal executive offices are located at 2 Jabotinsky St, Atrium Tower, 18th floor, Ramat Gan, Israel 5252903, and our telephone number is +972-9-774-1505.

We completed our initial public offering in Israel in February 25, 1994 and our ordinary shares are traded on the Tel Aviv Stock Exchange under the symbol "GIX."

Our capital expenditures for the years ended December 31, 2025, and 2024 were $110 thousand and $1 thousand, respectively. Our current capital expenditures the involve purchase of property and equipment.

The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers like us that file electronically with the SEC. The address of that site is *<u>www.sec.gov</u>*. We maintain a corporate website at *<u>www.gix-internet.com</u>.* Information contained on or accessible through our website is not a part of this registration statement, and the inclusion of our website address herein is an inactive textual reference only.

We use our website (<u>http://www.gix-internet.com</u>) as a channel of distribution of Company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. The contents of our website are not, however, a part of this registration statement.

We have not had any material commitments for capital expenditures, including any anticipated material acquisition of plant and equipment or interests in other companies.

**B. Business Overview**

**Introduction**

We, being Gix Internet, through our wholly-owned subsidiary, Deliverz.ai, an Israeli-based software company founded in 2017 by Amir Nardimon, specialize in the development of advanced logistics automation solutions that integrate with third-party autonomous robots. We do not manufacture our own robots—instead, we partner with leading hardware manufacturers to deploy our proprietary software stack, creating a unified, intelligent delivery solutions optimized for complex, high-traffic environments, such as hospitals and large campuses.

Our robotic platform enables autonomous navigation across multi-building, multi-floor facilities, including the ability to operate safely in high-density human environments. Coupled with its proprietary operations control and management system, we offer a complete solution for streamlining deliveries of medical supplies, lab samples, and pharmaceuticals, reducing operational costs, minimizing human error, and enhancing patient care through improved service continuity.

We leverage artificial intelligence (AI), computer vision, and machine learning algorithms to continuously improve path optimization, resource allocation, and predictive logistics. Our platform is designed to integrate seamlessly with physical infrastructures such as elevators and automated gates, and is capable of real-time analytics, exception handling, and decision-making with minimal human intervention.

Historically, we have carried out ad-tech operations via our digital advertising business unit through our stake in Quantum X Labs. However, as a result of certain departures from Quantum X Labs's board of directors and the dilution in our holdings in Quantum X Labs, while our digital advertising business unit remains, and is expected to continue to remain, an important part of our business, we are in the early stages of transitioning our active business operations to be conducted primarily through Deliverz.ai. Through our acquisition of Deliverz.ai, we have diversified our investments into new markets and industries and have adjusted our exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. As we progresses in transitioning our business strategy, it is expected that Deliverz.ai will carry out our primary operational activities and be the vehicle through which we pursue our business strategy. Our ad-tech operations are conducted exclusively through our ownership interest in Quantum X Labs, and we do not maintain any ad-tech operations outside of this stake. If management sells our shares in Quantum X Labs, we will no longer have ad-tech operations as part of our business. See "Information on Our Company—B. Business Overview—Quantum X Labs, Investment in Digital Advertising and Changes in our Business" and "Item 5 –Operating and Financial Review and Prospects—Overview— Changes in our Business" for additional information.

**Market Overview, Size and Trends**

According to Global Market Insights, the global medical robots market size reached was valued at $12.8 billion in 2024 and is estimated to grow at 16.6% compounded annual growth rate (CAGR) from 2025 to 2034, primarily driven by the growing demand for automation in healthcare facilities, coupled with government and private sector investments, as well as the increasing demand for minimally invasive surgery. According to the same report, rising healthcare costs are driving providers to adopt technologies that enhance efficiency and reduce patient care costs as medical robots can perform certain tasks autonomously, reduce human errors, and optimize resource utilization, making them a cost-effective solution. Additionally, these robots improve precision in surgeries, offer consistent care in rehabilitation, and enhance patient monitoring, leading to better patient outcomes and satisfaction. Over the past decade, the digital transformation of the healthcare sector has prompted the adoption of automated technologies. Hospitals and pharmacies are leveraging recent breakthroughs such as automated pill counters, robotic dispensing machines, and barcode scanners to enhance day-to-day operations. Such technological advancements are helping reduce the risk of manual errors in medication dispensing thus improving patient safety.

With emerging economies investing heavily in strengthening healthcare infrastructure and the establishment of modern and fully-equipped hospitals and medical centers, the adoption of hospital robots and the use of robots in medical settings in expected to increase. Hospital robots have emerged as a popular way to perform an array of healthcare operations, speeding up delivery, supply, and disinfection. Furthermore, advancements in autonomous mobile robots (AMRs) are eliminating the need for manual interventions across complex tasks.

Another key market to our company is the autonomous last-mile delivery market, which, according to Research and Markets, was valued at $21.9 billion in 2024 and is expected to reach $96.8 billion by 2033, growing at a CAGR of 17.95% during the forecast period. The growth is primarily driven by the growing demand for effective delivery methods to ensure more rapid accessibility of products among consumers. According to the same source consumer expectations for speed, reliability, and sustainability have driven logistics providers to rethink traditional delivery models and explore autonomous last-mile solutions. The convergence of e-commerce proliferation and urban congestion challenges has elevated the strategic importance of deploying aerial and ground vehicles capable of navigating complex delivery environments. Advanced robotics, machine learning, and electric propulsion technologies are redefining operational cost structures and enabling contactless drop-offs in settings ranging from dense city centers to suburban neighborhoods.

**Go-to-Market Strategy**

Our initial focus will be on the following market segments:

● Healthcare (Hospitals and Medical Centers): automating deliveries of medical supplies, lab samples, and pharmaceuticals. We have seen hospital and healthcare networks be early adopters of our solutions as they require a high need for streamlined logistics.

● Corporate, Industrial and Commercial Campuses: managing multi-building, multi-floor, human-dense environments with logistics needs for large manufacturing complexes, office parks and business districts.

● Residential and Smart Communities: streamlining last-mile deliveries in gated communities and large apartment complexes.

Our current customer acquisition strategy is comprised of three phases:

● Phase 1: Direct Sales to Enterprise Clients

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Engage
 hospitals, logistics heads, and facility managers through direct outreach and referrals.

○ Leverage
 pilot programs and proof-of-concept (POC) deployments to demonstrate return on investment.

○ Build
 partnerships with robot manufacturers and hospital enterprise resource (ERP) planning providers.

● Phase 2: Strategic Partnerships and Channel Sales

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Partner
 with robotics vendors and integrators, ERP providers and Internet of Things (IoT) companies for co-selling.

○ Collaborate
 with healthcare logistics service providers (e.g., supply chain managers for hospitals).

○ Offer
 white-labeled solutions for third-party logistics providers (3PLs).

● Phase 3: Inbound and Digital Expansion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Thought
 Leadership: Publish case studies and white papers on hospital logistics efficiency.

○ Industry
 Events: Present at healthcare and robotics expos (HIMSS, CES, LogiMed).

○ Referral
 and Network Growth: Leverage successful hospital deployments to enter hospital groups and chains.

**Products and Services**

The Deliverz.ai solution consists of two main components:

&nbsp;&nbsp;&nbsp;&nbsp;1. Autonomous
 Mobile Robots (AMRs): These robots are equipped with advanced AI and computer vision technologies, allowing them to navigate autonomously
 across complex indoor and outdoor environments. They are capable of operating across floors using elevator integrations, navigating
 in crowded hallways, opening automated doors via radio frequency identification (RFID), and communicating with humans through voice
 interaction using natural language processing (NLP). The robots are built in collaboration with leading hardware manufacturers and
 are customized to deliver payloads such as medical equipment, lab samples, and pharmaceuticals.

Deliverz.ai's autonomous delivery solution is a commercial-grade robot, serving as the core mobile base for autonomous logistics tasks in hospitals and commercial campuses.

The robot is built on a robust mobile base with high maneuverability and long runtime capabilities. Key features include:

● Chassis and Locomotion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Holonomic
 base with omnidirectional movement, enabling smooth navigation in tight indoor spaces.

○ LIDAR-based
 SLAM (Simultaneous Localization and Mapping) for real-time mapping and obstacle avoidance as well as a set of 3D cameras for visual
 SLAM and obstacle avoidance.

○ Integrated
 depth sensors and sonar to detect drop-offs, stairs, and low-lying objects.

○ Dynamic
 obstacle re-routing, allowing safe movement in crowded environments.

● Computing and Connectivity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Onboard
 computing unit with graphics processing unit (GPU) acceleration for real-time visual processing.

○ Dual-band
 Wi-Fi, 4G/5G support, and optional LAN integration for network redundancy.

○ 10.1
 inch touchscreen display for interaction and status monitoring.

○ Multiple
 microphone arrays and speaker system for voice interaction.

● Camera Suite:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Built-in
 RGBD (depth) camera for human detection and interaction.

○ Enhanced
 camera module (optional) for enhanced high-resolution video capture and edge processing (e.g., QR/barcode recognition, patient ID
 validation).

● Battery and Runtime:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Up
 to 8–10 hours continuous operation.

○ Auto-docking
 and wireless charging capability via custom or standard charging docks.

● Human Interaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Voice-based
 communication using NLP modules for staff interaction.

○ On-screen
 mission display with QR-based/OTP confirmation and delivery handoffs.

● Secured compartment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Supports
 multi-pickup and multi-drop-off with a dynamic compartment cabinet configuration, which can be changed at any given time. Supports
 up to 4 cabinets with a configuration of 1, 2 and 3 cabinets as well.

○ The
 compartment itself is always locked unless instructed programmatically otherwise.

● Security and Compliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ Fully
 CE Certified in Europe

○ Encrypted
 communication between robot and backend systems.

○ Audit
 logs for every delivery mission, including handoff verification and route tracking.

○ GDPR
 and HIPAA-ready architecture for sensitive environments.

&nbsp;&nbsp;&nbsp;&nbsp;2. Logistics
 Operations Management System (OMS): This proprietary system serves as the central intelligence layer for orchestrating autonomous
 deliveries within complex, dynamic environments such as hospitals and large campuses and are designed for high-availability, high-density
 operations. This cloud-based platform offers:

● Real-Time Task Orchestration: Dynamically assigns and reassigns delivery missions to available autonomous robots or human staff, factoring in urgency, payload type, distance, staff availability, building access constraints, and custom logistics policies.

● Unified Human-Robot Coordination: Enables seamless hybrid task execution by coordinating workflows between AMRs and human personnel. The system can reallocate tasks between agents in real time based on exception handling, delivery handoff validation, or unplanned downtime, ensuring continuity of service.

● Multi-Zone, Multi-Floor, Multi-Building, Multi-Pickup and Multi-Dropoffs Operations: Fully supports geofenced delivery zones across multiple buildings and floors, including intelligent elevator and automated door control integration, allowing complex routing scenarios with minimal manual oversight.

● Predictive Analytics and Demand Forecasting: Utilizes machine learning models to predict delivery volumes and logistics bottlenecks based on historical data, time of day, staff shifts, and emergency routines. This enables pre-emptive load balancing and informed staffing decisions.

● Visual Mission Planning and Command Center View: Includes an interactive dashboard with real-time robot locations, task progress indicators, delivery handoff confirmations, and facility heatmaps to monitor congestion, route conflicts, and idle resources.

● Exception Management and Service Level Agreement Enforcement: Automatically detects and flags failed or delayed deliveries, reassigns missions, and logs the full incident timeline. Service level compliance metrics are continuously monitored and optimized.

● Logistics Infrastructure Optimization Engine: Offers a "suggestive module" that analyzes delivery patterns and proposes improvements to infrastructure layouts (e.g., storage repositioning, delivery room placement) and robot route logic to reduce travel time and improve throughput.

● Full ERP and IoT System Integration: Seamlessly connects with hospital and facility systems for automated dispatch triggering, status syncing, inventory updates, and location-aware decision-making. Integrates with IoT components like RFID readers, elevators, smart doors, and environmental sensors.

● Compliance, Auditability and Security:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;○ End-to-end
 encryption of mission data and communications.

○ Built-in
 audit logs for every mission, including who received what, when, and where.

○ Architecture
 aligned with HIPAA, GDPR, and ISO 27001 standards, suitable for handling sensitive materials and operating in highly regulated environments.

This advanced orchestration engine is what transforms from a robotics vendor into a logistics automation infrastructure provider, offering clients complete visibility, control, and performance intelligence across every aspect of their internal delivery chain.

Deliverz.ai operates under a hybrid *Robot-as-a-Service (RaaS)* and *Software-as-a-Service (SaaS)* model. This dual-layered approach allows healthcare facilities and large campuses to adopt our robotics solution with minimal capital investment. The RaaS layer provides access to autonomous delivery robots on a subscription basis, including maintenance and hardware upgrades via our original equipment manufacturer (OEM) partners. The SaaS layer grants access to our cloud-based logistics orchestration platform, offering real-time mission management, analytics, and system integrations.

Our modular pricing ensures scalability from pilot deployments in a single building to full-facility automation across multi-site campuses. By decoupling hardware from software ownership, Deliverz.ai enables rapid ROI and operational flexibility without locking customers into proprietary ecosystems.

![](formdrs_001.jpg)

**Customers**

*Sheba Medical Center*

 

Deliverz.ai has completed a successful pilot at Sheba Medical Center, one of the largest and most advanced hospitals in the Middle East. As part of the pilot program, Deliverz.ai deployed one robot that completed chemotherapy drug deliveries between the pharmacy and the Sheba Medical Center's cancer center. This included outdoor, multi-building, underground tunnel and indoor multi-floor navigation in human dense environments while completing deliveries to five different departments within the four story building of Sheba Medical Center's cancer center.

This collaboration involved integration with Sheba Medical Center's infrastructure, including elevators and automated doors, ensuring the robot can deliver medical items across departments, buildings, and floors autonomously. The robot demonstrated high reliability and safety, with operational continuity in human-dense environments. The robot demonstrated an ability to complete four times an many deliveries as a human counterpart in a given hour.

Based on the pilot's success, Deliverz.ai won a public tender for the supply of up to 30 robots for Sheba Medical Center. Sheba Medical Center placed an initial order for three robots, and during the fourth quarter of 2025, Deliverz.ai deployed these robots at Sheba Medical Center. In connection with this, in May 2022 Deliverz.ai (f/k/a Seamless Vision (2017) Ltd.) entered into a framework agreement, or the Sheba Agreement, with The Sheba Fund for Health Services and Research, affiliated with the Sheba Medical Center, collectively Sheba, for the supply, installation, and operation of a fleet of robots, including the equipment and accompanying systems, implementation for mapping, mapping updates and software updates, repair and maintenance services, and in-person and telephone training support, at Sheba Medical Center. The initial term of Sheba Agreement is twenty-four (24) months from the date the robotic transport fleet was initially installed and operated, with Sheba holding the sole option to extend the agreement for additional one-year periods. The Sheba Agreement provides that Sheba shall pay Deliverz.ai a monthly payment of ILS 20,442 plus VAT for three robots, which includes maintenance services and fulfillment of Deliverz.ai's other obligations under the Sheba Agreement. The Sheba Agreement contains customary provisions regarding penalties for delays in installation, fault repair, non-compliance, as well as insurance coverage, product liability, confidentiality and indemnification provisions. Sheba may terminate the Sheba Agreement upon four months' notice, subject to shorter notice provisions in the event of material breach or insolvency.

Deliverz.ai plans to expand the deployment with additional robots in 2026, with further rollouts under discussion. We believe that this project serves as a cornerstone for future partnerships in both domestic and international healthcare networks.

**Competition**

The autonomous market is particular competitive due to a variety of factors. There are many players in all areas of the market, including a large number of robot manufacturers and a large number of software products and algorithms companies, with new companies frequently appearing in each of these areas. We compete with many companies that already offer both robots and software as well as new startup companies that frequently enter the market. There are a significant number of companies that offer technologies and services that are similar to those provided by us. Our technology competes on limited budgets and on specific innovation programs that adopt new technologies. Some of our competitors are companies that are considerably bigger than us with considerably higher budgets. We believe, based on our knowledge of competitor offerings, that we are well-positioned to leverage our innovative technologies compared to that of our competitors.

![](form20fr12b_001.jpg)

For purposes of the diagram above:

● "SAP EWM" refers to SAP SE's Extended Warehouse Management system;

● "PUDU" refers to Pudu Technology Inc.;

● "OTSAW" refers to OTSAW Digital Pte Ltd;

● "Locus Robotics" refers to Locus Robotics Corp.;

● "Fetch Robotics" refers to Fetch Robotics, Inc. (now part of Zebra Technologies);

● "MiR" refers to Mobile Industrial Robots A/S;

● "Aethon" refers to Aethon Inc.;

● "Autonomous Delivery Robot (ADR)" refers to a self-driving mobile robot capable of performing deliveries without human intervention;

● "Navigation AI" refers to artificial intelligence systems used for real-time route planning, obstacle avoidance, and fleet coordination;

● "Fleet Management Platform" refers to software that coordinates and monitors multiple robots within a facility;

● "Interoperability" refers to the ability to integrate and coordinate with third-party systems such as hospital management software or warehouse ERPs.

\* The foregoing information is based on internal company research based on data known to the company as of the date hereof and is not the product of a formal survey.

\*\* The trademarks above are the property of their respective owners.

*Competition Management*

We focus our competition management on developing advanced technological tools and receiving updates from time to time regarding new technologies that can be used to gain an advantage against our competitors. We also maintain high-quality and professional human capital with many years of experience in order to maintain a competitive advantage.

We continuously look for ways to improve the user experience for our customers and improve our distribution methods so that we can reach a higher number of users and leverage a critical mass of customers that will allow us to continue to promote our products and tools, all in conformance with the requirements of existing and future platforms in the market.

Deliverz.ai operates in a rapidly evolving space that includes both hardware-centric robotics companies and vertically integrated logistics automation providers. While many competitors deliver bundled hardware-software solutions with proprietary limitations, Deliverz.ai stands apart through its robot-agnostic software platform that deeply integrates with existing hospital infrastructure, including elevators, access controls, IoT systems, and ERP platforms.

By decoupling software from hardware and unifying the human-robot logistics flow under a single orchestration layer, Deliverz.ai seeks to redefine what scalable, intelligent delivery infrastructure looks like in mission-critical environments like hospitals.

**Marketing and Distribution**

Deliverz.ai is entering the market through a phased approach designed to validate its technology in high-need environments, build trust through operational results, and scale through strategic partnerships. Our strategy is initially to focus on healthcare institutions, with plans to expand to adjacent sectors, such as industrial campuses and gated communities. Each phase is structured to build network effects and expand our distribution reach.

Deliverz.ai 's software-centric model enables flexibility and ease of deployment across global markets. Upon completion of R&D, we plan to engage local distributors in target regions under a revenue-sharing model. These distributors will manage last-mile robot deployment, customization, and client onboarding, ensuring regulatory compliance and cultural alignment at the local level.

Additionally, Deliverz.ai's hybrid integration model combining robotic hardware from partners with proprietary logistics software removes the need for in-house manufacturing, drastically reducing capital requirements and accelerating time to market. This approach allows rapid scalability and adaptation to diverse environments, from hospital corridors to multi-floor residential buildings.

**Intellectual Property and Other Proprietary Rights**

Deliverz.ai's intellectual property portfolio underscores our commitment to technical leadership in autonomous logistics.

As of the date of this registration statement, as set forth in the table below, we currently have one granted patent in Israel and two additional patents that are in the allowed phase one in Israel and one in Europe that we are waiting to be granted. In addition, we have additional applications progressing in other global regions, including the U.S. Europe, the U.K., Japan and South Korea. These patents center around our proprietary autonomous navigation technologies, with a strong emphasis on outdoor and indoor mobility in human-dense environments. They specifically cover advanced visual navigation, adaptive route planning, and obstacle-rich path execution—core capabilities that differentiate our solution in real-world deployments. We cannot be certain that patents will be granted with respect to any of our pending patent applications or with respect to any patent applications filed by us in the future, nor can we be sure that any of our existing patents or any patents granted to us in the future will be commercially useful in protecting our technology. Despite our efforts to protect our intellectual property, any of our intellectual property and proprietary rights could be challenged, invalidated, circumvented, infringed or misappropriated, or such intellectual property and proprietary rights may not be sufficient to permit us to take advantage of current market trends or otherwise to provide competitive advantages. For more information, please see "*Item 3.D. Risk Factors Risks Related to our Intellectual Property*."

![](formdrs_003.jpg)

These innovations demonstrate not only our technical depth but also our ability to solve complex operational challenges with original thinking and high execution standards. Our patented technologies enable robots to operate across multi-building campuses, outdoors between facilities, through tunnels and elevators, and within crowded hallways—all while maintaining high reliability, safety, and efficiency. This reflects our dedication to delivering field-proven excellence, not just lab-tested capability.

While we view our patents as valuable assets that validate our innovation and may open future opportunities in adjacent industries as well, we believe that patents alone are not a barrier to competition in this fast-moving, globally fragmented market as one of the primary barriers to entry are operational. Accordingly, our commercial strategy is built around fast-paced deployment, measurable customer impact, and aggressive go-to-market execution. We believe that market leadership will be earned through scale, trust, and adaptability.

To protect our broader portfolio of proprietary technology, we rely on robust confidentiality and invention assignment agreements with all employees, contractors, and partners. We also maintain internal safeguards to protect trade secrets related to our software architecture, navigation stack, and system integrations. At the same time, we take care to avoid infringing on third-party IP rights, recognizing the complexity of overlapping technologies in our field.

In short, while our patents reflect our capacity for technical innovation and our pursuit of engineering excellence, we believe that the speed and quality of adoption—not exclusivity—that defines our path to long-term success.

**Product Development**

Deliverz.ai has a well-defined R&D roadmap focused on enhancing its proprietary logistics platform and navigation capabilities and has plans for additional investments in its R&D capabilities.

Our key R&D efforts include:

● Development of AI and GenAI modules for predictive analytics, delivery prioritization, and real-time bottleneck detection.

● Integration with hospital IoT systems and elevator/gate infrastructure.

● Creation of hybrid task management systems that assign delivery tasks to both robots and human logistics personnel.

● Ongoing improvement of the robot navigation stack, with deep-learning-based spatial recognition and localization in crowded and dynamic indoor environments.

**Government Regulation**

Deliverz.ai's platform is designed to operate in full compliance with global data privacy and security regulations, including HIPAA, GDPR, and the Israeli Privacy Protection Law. Our system is built on a privacy-by-design principle and does not collect, store, or process any personally identifiable information (PII) or protected health information (PHI). It also does not retain video footage, audio recordings, or sensitive delivery content.

In addition to data privacy, Deliverz.ai implements secure delivery protocols to ensure full traceability and controlled access. Each delivery transaction is executed using authorized user validation, whereby only verified personnel—after successful authentication and code-based verification—are allowed to access the delivery compartment. The robot's secure compartment is programmed to unlock only for pre-authorized recipients, with full audit logging of each handoff. This approach ensures that all deliveries, particularly those involving pharmaceuticals or sensitive medical items, are conducted safely, discreetly, and in compliance with healthcare security standards, without compromising patient privacy or operational transparency.

We may incur substantial fines if we violate any laws or regulations relating to the collection or use of personal data. Our actual or alleged failure to comply with applicable privacy or data protection laws, regulations, and policies, or to protect personal data, could result in enforcement actions and significant penalties against us, which could result in negative publicity and costs, subject us to claims or other remedies, and have a material adverse effect on our business, financial condition, and results of operations.

**Human Capital Management**

As of the date of this registration statement, we have two senior management positions, which includes our Chief Executive Officer and Chief Financial Officer, and we (either directly or through our subsidiaries) employ two full-time and part-time employees or consultants. Of these employees or consultants, Deliverz.ai employs a total of four full-time employees, of which three are dedicated to research and development efforts and the fourth in the Deliverz.ai chief executive officer, and two part-time consultants, which includes the Deliverz.ai chief financial officer and a U.S.-based business development specialist. None of our employees are members of a union or subject to the terms of a collective bargaining agreement.

We anticipate expanding our team in the coming months to support our continued growth and scaling objectives. Our ability to attract and retain talented professionals is a critical element of our strategic success. We rely heavily on technical and operational expertise of our engineering team, as well as the leadership and vision of our executive team and the skills, experience and performance of our customer service and research personnel. As a technology-driven company operating in the logistics and robotics space, we compete for highly skilled talent across sectors such as robotics software, systems engineering, AI, and enterprise operations. We believe that the success of our mission is inseparable from the well-being and engagement of our people. We are committed to fostering a safe, healthy, and empowering work environment—one where employees are encouraged to innovate, contribute, and grow. We believe in cultivating a culture of mutual respect and shared purpose, supported by an inclusive and equitable approach to workplace practices. We make employment decisions based on professional merit, experience, and role-specific capabilities. Discrimination of any kind is not tolerated. We strive to provide equal opportunity to all individuals regardless of race, gender, religion, age, nationality, sexual orientation, disability, or any other protected characteristic. We actively promote a culture of openness, where diverse backgrounds are not only welcomed but valued as a driver of innovation. We consider our relationship with our employees to be strong and collaborative, and we are committed to continuing to build an engaged, purpose-driven team as we grow.

*Employment Agreements*

Our non-executive employees are employed under written employment agreements, based on global monthly salary or on an hourly basis. Some employees receive base salaries and commissions contingent on targets based on the position they fill. The terms of employment generally include senior employees' insurance or a pension fund, study fund, loss of working capacity insurance, vacation days and recuperation pay. The Company may participate in employees' car and mobile phone expenses, under the conditions set out in their individual employment agreements, and also reimburses certain business expenses. The employment agreements are generally for an unlimited period of time and each side is entitled to terminate the agreement with advance notice. Our employment agreements also include an undertaking of confidentiality and non-competition by our employees.

**Legal Proceedings**

We are not currently, a party to any material or pending litigation or regulatory proceedings that could have a material adverse effect on our business, operating results, financial condition or cash flows. From time to time, we are involved in legal proceedings in the ordinary course of our business.

**Quantum X Labs,** **Investment in Digital Advertising and Changes in our Business**

*Acquisition of Quantum X Labs*

On February 7, 2019, we entered into the Recapitalization Transaction with Quantum X Labs pursuant to which we assigned, transferred and delivered 99.83% of our holdings in Viewbix Israel to Quantum X Labs in exchange for shares of restricted common stock, par value $0.0001 per share, of Quantum X Labs, which resulted in Quantum X Labs becoming a majority-owned subsidiary of the Company. As of the date hereof, we hold approximately 21.13% of Quantum X Labs's outstanding shares of common stock following the closings of the November 2025 Private Placement and Quantum Acquisition (each as defined below).

*Quantum X Labs's Business*

Quantum X Labs is a digital advertising platform that develops and markets a variety of technological platforms that automate, optimize and monetize digital online campaigns. Quantum X Labs's operations were previously focused on analysis of the video marketing performance of its clients as well as the effectiveness of their messaging ("Video Advertising Platform"). With the Video Advertising Platform, Quantum X Labs allowed its clients with digital video properties the ability to use its platforms in a way that allows viewers to engage and interact with the video. The Video Advertising Platform measures when a viewer performs a specific action while watching a video and collects and reports the results to the client.

<u>Search Platform</u>

Gix Media's Search Platform allows for the referral of user traffic (i.e., searches that are performed by internet users) to search engines, such as Yahoo and Bing, where the search engines display the ads of their customers. The search engines pay Gix Media for the searches that were referred by it, based on the amount of consideration that the search engine receives from the advertisers for the user traffic generated, less a certain percentage from the revenues attributed to the search engine. Since the customers of Gix Media are the search engines, and not the advertisers, Gix Media recognizes revenues for the actual amount received from the search engines, and not from the advertisement revenue itself.

The referral of user traffic by Gix Media to the search engines is possible after users download Gix Media's products, which are browser add-ons, usually from the browser stores (mostly Google Chrome browsers) and by downloading desktop software products, free of charge, for the Apple operating system (for Mac computers) and for the Microsoft operating system (for PC computers). When downloading Gix Media's products, the users grant permission to Gix Media to refer the searches performed while using Gix Media's products to the search engines.

Gix Media also provides traffic referral services to search engines through the referral of traffic of users who engage search ads generated by Gix Media, or the "Seach to Search" model. These ads are displayed on SERP's search engine's result pages (SERP) that are purchased by the Company from other search engines (such as Yahoo! Bing / Microsoft Ads and Google). When such user clicks on these search ads, Gix Media refers the user to a paid offering from a search engine which contains ads that are related to the initial ad made by Gix media (the Company buys ad space from search engines and sell them to other search ads while profiting from the price difference).

The Search Platform is operated through two models, direct and indirect. Gix Media operates its Search Platform using a direct model whereby it refers searches that are conducted by users of its products, which are thereafter distributed to search engines directly by Gix Media. Additionally, through the direct model Gix Media operates its search to search model and provides traffic referral services to the search engines through the referral of traffic of users who engage search ads generated by Gix Media. Gix Media also operates its Search Platform using an indirect model, whereby it refers searches that are conducted by users of products developed by third party strategic partners (in contrast to users of its own products as conducted through the direct model), which are thereafter distributed to search engines by Gix Media. Gix Media engages with strategic partners who have similar products and allow these strategic partners to integrate Gix Media's technological tools into their own products in order to refer searches conducted by resulting users to the customers of Gix Media. Using this model, Gix Media shares revenues received from search engines with its strategic partners.

<u>Competition Related to Quantum X Labs</u>

The competition in the digital advertising market is fierce. There are many players in all areas of the market: both a large number of advertisers and content owners, a large number of software products and algorithms, many advertising platforms and technologies. New players appear frequently in all of these areas. Quantum X Labs compete with many companies that offer solutions for advertisers and website owners, including in the pillar of ad search and digital content, and with tools that allow internet users to change the default search settings on their browsers. There is a large number of digital content companies and ad search companies that offer services that are similar to those provided by us. Its products compete on limited budgets of advertisers and on an inventory of ad spaces from website owners. Some of its competitors are companies that are considerably bigger than Quantum X Labs with considerably higher budgets, such as Google, Meta, and Microsoft. Since a major part of Quantum X Labs's revenues is generated from a supply of searches, Quantum X Labs also competes with the providers of the search engines themselves, such as Google, Microsoft, IAC and Verizon Media. Many of the present and potential competitors of Quantum X Labs have financial, R&D, analytical systems, production resources and sales and marketing systems that are significantly larger in scope than those of Quantum X Labs.

 

 

*Investment in Digital Advertising* 

On June 5, 2025, the common stock of Quantum X Labs Inc., then known as Viewbix Inc., began trading under the symbol "VBIX" on the Nasdaq Capital Market. Viewbix's shares of common stock were previously quoted on the OTC Markets, Pink Tier under the symbol "VBIX", and ceased to be quoted on the OTC Markets, Pink Tier. On April 30, 2026, Viewbix changed its name and ticker symbol to Quantum X Labs Inc. and QXL, respectively.

In July 2025, Quantum X Labs completed a private placement transaction (the "July 2025 Private Placement") pursuant to which Quantum X Labs issued and sold an aggregate of 848,763 shares of common stock, pre-funded warrants to purchase up to 77,160 shares of common stock and common warrants to purchase up to an aggregate of 925,923 shares of common stock, at an offering price of $4.86 per share of common stock and associated common warrant and an offering price of $4.8599 per pre-funded warrant and associated common warrant for approximately $4.5 million.

On September 25, 2025, each of Mr. Amihay Hadad, our chief financial officer, and Mr. Liron Carmel, a member of our board of directors, tendered his resignation from Quantum X Labs's board of directors, effective immediately. Mr. Hadad continues to serve as Quantum X Labs's chief executive officer.

In November 2025, as amended in January 2026, Quantum X Labs entered into a private placement transaction (the "November 2025 Private Placement") pursuant to which Quantum X Labs agreed to issue and sell an aggregate of 800,000 shares of common stock or pre-funded warrants in lieu thereof and common warrants to purchase up to an aggregate of 640,000 shares of common stock, at an offering price of $1.75 per share of common stock and associated common warrant and an offering price of $1.7499 per pre-funded warrant and associated common warrant for aggregate gross proceeds of approximately $1.4 million. The November 2025 Private Placement closed on March 4, 2026.

In December 2025, Quantum X Labs entered into a securities exchange agreement (the "SEA") with Quantum X Labs Ltd. ("Quantum Israel"), and certain of the shareholders of Quantum Israel (the "Quantum Israel Shareholders") pursuant to which Quantum X Labs agreed to issue to the Quantum Israel Shareholders an aggregate of up to 40.0% of Quantum X Labs's issued and outstanding capital stock as of the date of execution of the SEA (the "SEA Effective Date"), inclusive of the 800,000 shares and pre-funded warrants issued by Quantum X Labs in the November 2025 Private Placement (the "Private Placement Shares"), consisting of (i) up to 2,666,000 shares of Quantum X Labs's common stock, representing 19.99% of Quantum X Labs's issued and outstanding capital stock (the "Quantum X Labs Exchange Shares"), inclusive of the Private Placement Shares, and (ii) pre-funded warrants to purchase up to 4,447,595 shares of Quantum X Labs's common stock, representing the balance of the up to 40.0%, as of the SEA Effective Date, less the Quantum X Labs Exchange Shares (the "Quantum X Labs Exchange Pre-Funded Warrants" and together with the Quantum X Labs Exchange Shares, the "Quantum X Labs Exchange Securities"), in exchange for up to 100%, but not less than 85%, of Quantum's issued and outstanding share capital on a fully diluted and post-closing basis, equal to up to 589,319 of Quantum Israel's ordinary shares (the "Quantum Israel Exchange Securities" and together with the Quantum X Labs Exchange Securities, the "Exchange Securities") (the "Quantum Acquisition"). In addition to the Quantum X Labs Exchange Securities to be issued at the closing of the transaction, Quantum X Labs may issue to the Quantum Israel Shareholders earn-out payments payable of up to 12,702,847 shares of Quantum X Labs's common stock and/or pre-funded warrants to purchase shares of Quantum X Labs's common stock, contingent on Quantum Israel achieving certain performance criteria. At any time prior to the closing date of the Quantum Acquisition, a shareholder of Quantum Israel that did not execute the SEA on the SEA Effective Date (an "Additional Quantum Israel Shareholder") may become a party to the SEA by executing a joinder to be delivered to Quantum X Labs and Quantum Israel. Upon delivery of a fully executed joinder, such Additional Quantum Israel Shareholder shall become a party to the SEA for all purposes with respect to its Quantum Israel Exchange Securities, and shall be bound by all applicable terms, conditions, covenants, representations, warranties and obligations contained in the SEA as if an original signatory thereto. The Quantum Acquisition closed on March 4, 2026 and resulted in Quantum Israel becoming a wholly-owned subsidiary of Quantum X Labs.

Following the closings of the November 2025 Private Placement and the Quantum Acquisition, our beneficial ownership in Quantum X Labs was directly reduced to 21.13%, assuming the issuance of the Private Placement Shares and the Quantum X Labs Exchange Shares, but excluding the exercise of any warrants or pre-funded warrants issued in such transactions. As a result of the above mentioned transactions, which decreased our holding percentage in Quantum X Labs, and the resignations of Mr. Hadad and Mr. Carmel from Quantum X Labs's board of directors, we lost control over Quantum X Labs on September 25, 2025. Accordingly, as a result of losing both majority ownership and control of Quantum X Labs, we will cease to consolidate the financial statements of Quantum X Labs as of the date of the change in control. Following the deconsolidation, our retained interest in Quantum X Labs has been accounted for under the equity method of accounting, as we continue to exercise significant influence but no longer control its operations.

*Changes in Our Business*

As a result of such departures from Quantum X Labs's board of directors, the dilution in our holdings in Quantum X Labs and Quantum X Labs's sale of Cortex, while our digital advertising business unit remains, and is expected to continue to remain, an important part of our business, we are in the early stages of transitioning our active business operations to be conducted primarily through Deliverz.ai. Through our acquisition of Deliverz.ai, we have diversified our investments into new markets and industries and have adjusted our exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. As we progresses in transitioning our business strategy, it is expected that Deliverz.ai will carry out our primary operational activities and be the vehicle through which we pursue our business strategy. While we lost control over Quantum X Labs on September 25, 2025, we continue to hold a significant investment in Quantum X Labs and we have explored, and continue to explore, opportunities to utilize our significant and strategic investment in Quantum X Labs in order to obtain financing to further develop and invest in the Deliverz.ai business. Our ad-tech operations are conducted exclusively through our ownership interest in Quantum X Labs, and we do not maintain any ad-tech operations outside of this stake. If management sells our shares in Quantum X Labs, we will no longer have ad-tech operations as part of our business.

We believe that the acquisition of Deliverz.ai has the potential for long-term value creation through several key initiatives. These initiatives include expanding adoption of Deliverz.ai's advanced logistics automation solutions that are integrated with third-party autonomous robots to international commercial relationships and customers, increasing operating scale in order to improve gross margins and continuing to manage operating expenses with the objective of aligning cost growth with revenue growth. We believes that, over time, increased revenues combined with improved operating efficiency could contribute to reduced operating losses. See "Item 5 –Operating and Financial Review and Prospects—Overview— Changes in our Business" for additional information.

**C. Organizational Structure**

We currently have two wholly-owned subsidiaries: Deliverz.ai Ltd., which is incorporated in Israel, and Algomizer Inc., which is incorporated in Nevada. In addition, as of the date of this registration statement, we hold approximately 21.13% of the outstanding shares of common stock of Quantum X Labs Inc., which is incorporated in Delaware, following the closings of the November 2025 Private Placement and Quantum Acquisition (as further described above in Item 4. "Information on Our Company—B. Business Overview—Quantum X Labs, Investment in Digital Advertising and Changes in our Business".

The following diagram depicts our corporate structure, including ownership and voting control of each entity:

![](form20fr12b_002.jpg)

**D. Property, Plant and Equipment**

Our corporate headquarters is located in Tel Aviv, Israel. The monthly rental payments are approximately NIS 21,000 (approximately $6,583). The lease term is month-to-month.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

None.

**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

*You should read the following discussion in conjunction with our audited consolidated financial statements including the related notes thereto, beginning on page F-1 of this registration statement. In addition to historical information, this discussion contains forward-looking statements that involve risks and uncertainties. You should read the sections of this registration statement titled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" for a discussion of the factors that could cause our actual results to differ materially from our expectations.*

***Overview***

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We, through our wholly-owned subsidiary, Deliverz.ai, an Israeli-based software company founded in 2017 by Amir Nardimon, specialize in the development of advanced logistics automation solutions that integrate with third-party autonomous robots. We do not manufacture our own robots—instead, we partner with leading hardware manufacturers to deploy our proprietary software stack, creating a unified, intelligent delivery solutions optimized for complex, high-traffic environments, such as hospitals and large campuses.

Our robotic platform enables autonomous navigation across multi-building, multi-floor facilities, including the ability to operate safely in high-density human environments. Coupled with its proprietary operations control and management system, we offer a complete solution for streamlining deliveries of medical supplies, lab samples, and pharmaceuticals, reducing operational costs, minimizing human error, and enhancing patient care through improved service continuity.

We leverage artificial intelligence (AI), computer vision, and machine learning algorithms to continuously improve path optimization, resource allocation, and predictive logistics. Our platform is designed to integrate seamlessly with physical infrastructures such as elevators and automated gates, and is capable of real-time analytics, exception handling, and decision-making with minimal human intervention.

Historically, we have carried out ad-tech operations via our digital advertising business unit through our stake in Quantum X Labs in which as of December 31, 2025 and June 18, 2026, we held 26.42% and 21.13%, respectively, of its outstanding share capital. On September 25, 2025, we lost both majority ownership and control of Quantum X Labs and as a result, deconsolidated Quantum X Labs from our consolidated financial statements. Following the deconsolidation, our retained interest in Quantum X Labs has been accounted for under the equity method of accounting, as we continue to exercise significant influence but no longer control its operations. However, as a result of certain departures from Quantum X Labs's board of directors and the dilution in our holdings in Quantum X Labs, while our digital advertising business unit remains, and is expected to continue to remain, an important part of our business, we are in the early stages of transitioning our active business operations to be conducted primarily through Deliverz.ai. Through our acquisition of Deliverz.ai, we have diversified our investments into new markets and industries and have adjusted our exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. As we progresses in transitioning our business strategy, it is expected that Deliverz.ai will carry out our primary operational activities and be the vehicle through which we pursue our business strategy. Our ad-tech operations are conducted exclusively through our ownership interest in Quantum X Labs, and we do not maintain any ad-tech operations outside of this stake. If management sells our shares in Quantum X Labs, we will no longer have ad-tech operations as part of our business. See "Information on Our Company—B. Business Overview—Quantum X Labs, Investment in Digital Advertising and Changes in our Business" and "Item 5 –Operating and Financial Review and Prospects—Overview— Changes in our Business" for additional information.

For more information regarding our business and operations, see Item 4.B. "*Business*" above.

***Recent Transactions***

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*May 2026 Private Placement*

On May 6, 2026, we entered into a private placement agreement, or the May 2026 PIPE, with certain investors pursuant to which we issued and sold an aggregate of 417,272 ordinary shares and 417,272 warrants at a purchase price of NIS 22.00 (approximately $6.89) per share and associated warrant for aggregate gross proceeds of NIS 9.18 million (approximately $2.88 million).

The warrants are immediately exercisable upon issuance at an exercise price of NIS 27.50 (approximately $8.62) per share, subject to adjustment as set forth therein, and will expire eighteen months from the issuance date.

The May 2026 PIPE closed on May 19, 2026.

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*Deliverz.ai Acquisition*

 

On January 5, 2025, we entered into the Securities Exchange Agreement with Deliverz.ai, a company organized under the laws of the State of Israel, and all of the shareholders of Deliverz.ai (the "Deliverz.ai Shareholders") pursuant to which we issued to the Deliverz.ai Shareholders an aggregate of 25% of our issued and outstanding capital stock on a pro rata and post-closing basis, equal to 518,770 of our ordinary shares in exchange for 100% of Deliverz.ai's issued and outstanding share capital on a fully diluted and post-closing basis, equal to 1,000,000 Deliverz.ai ordinary shares. In addition, we also issued 103,754 of our ordinary shares, representing 5% of our issued and outstanding capital stock on post-closing basis, as a finder's fee to the finder that introduced us to Deliverz.ai. The transactions contemplated by the Securities Exchange Agreement closed on July 10, 2025 subject to the satisfaction of customary closing conditions, which resulted in Deliverz.ai becoming a wholly-owned subsidiary of the Company. Pursuant to the Securities Exchange Agreement, we may issue to Deliverz.ai Shareholders up to an additional 537,634 ordinary shares upon the achievement of certain milestones as follows: (i) 236,559 ordinary shares will be issued if Deliverz.ai shall successfully complete a transaction for the supply of 20 robots within 18 months of the closing date of the Deliverz.ai acquisition and (ii) 301,075 ordinary shares will be issued if Deliverz.ai shall successfully complete a transaction for the supply of 200 robots within 48 months of the closing date of the Deliverz.ai acquisition.

In addition, pursuant to the Securities Exchange Agreement, we agreed to provide Deliverz.ai a loan in the amount of NIS 900,000 (approximately $282,000), of which Deliverz.ai received a portion of the loan amount equal to NIS 250,000 (approximately $78,369) from L.I.A. Pure Capital Ltd. ("Pure Capital") as of the execution date of the Securities Exchange Agreement, with the remaining loan balance subject to the execution of a loan agreement between the parties. For additional information, see "Item 5. Operating and Financial Review and Prospects – Recent Financings – June 2025 Credit Facility."

 

*July 2025 Credit Facility*

 

In July 2025, we entered into a facility agreement for a NIS 12 million (approximately $3.8 million) credit facility (the "July 2025 Credit Facility") with certain lenders set forth therein (the "July 2025 Lenders").

The July 2025 Credit Facility will remain available until the earliest to occur of (i) its drawing down in full and (ii) the 18-month anniversary of the date of the first drawdown. We have the right to repay amounts outstanding under the July 2025 Credit Facility from time to time, in whole or in part, without any prepayment penalty. In addition, amounts owed under the July 2025 Credit Facility will be subject to repayment upon the occurrence of the following events: (A) upon 60 days prior written notice to us; and (B) immediately repayment following (i) liquidation, bankruptcy, or receivership proceedings are initiated against us, (ii) if one or more liens or enforcement actions are imposed or initiated against us in an amount exceeding NIS 500,00 (approximately $157,000), and such liens and/or enforcement actions are not cancelled or removed within 120 days from the date they were imposed or initiated, as applicable, or (iii) if we fail to register the security interest in favor of the July 2025 Lenders within 14 days from the date of signing of the July 2025 Credit Facility.

The July 2025 Credit Facility sets forth a drawdown schedule as follows: (i) we may draw down NIS 1,000,000 (approximately $313,000) each month, at our sole discretion, except that the first drawdown will be in the amount of NIS 2,000,000 (approximately $627,000). The second drawdown may take place 60 days after the first drawdown, and each subsequent drawdown shall occur in 30-day intervals thereafter. Outstanding amounts under the July 2025 Credit Facility will accrue interest at a rate of 10% per annum and will be paid in one lump sum together with the principal repayment of the July 2025 Credit Facility.

In addition, in connection with the July 2025 Credit Facility, we issued to the July 2025 Lenders warrants to purchase an aggregate of 600,000 ordinary shares, with an initial exercise price of NIS 18.00 (approximately $5.60) per share during the first 8 months following the date of issuance. The exercise price shall be increased to NIS 21.00 (approximately $6.60) per share from the end of such 8-month period until the end of the exercise period. The warrants are subject to certain beneficial ownership limitations, anti-dilution protection and price adjustments set forth therein and are exercisable from the issuance date for a period of 3 years from the date of issuance. The issuance of the warrants was subject to the approval of our shareholders at a general meeting of shareholders held on August 13, 2025.

In addition, we undertook that any proceeds that we receive in connection with the sale of shares of Quantum X Labs common stock held by us will be used to reduce undrawn available balances, if any, under the July 2025 Credit Facility. If, as a result of such reductions, the remaining undrawn balance equals the outstanding amount already drawn, then from that date onward, 70% of any proceeds received from the sale of shares of Quantum X Labs common stock held by us shall be used to repay the outstanding drawn balance of the July 2025 Credit Facility and the related interest. Furthermore, if we complete an equity fundraising by way of a public offering of shares prior to the repayment date, the total amount of the July 2025 Credit Facility shall be reduced by an amount equal to 20% of the net proceeds raised in such offering.

In the event that we fail to timely make a payment under the July 2025 Credit Facility, such unpaid amount will bear default interest at a rate equal to the prime rate then in effect plus 10% per annum. To secure full repayment of the July 2025 Credit Facility, we granted to the July 2025 Lenders a first-ranking lien over the shares of Quantum X Labs common stock held by us, provided that such lien does not restrict our ability to sell such Quantum X Labs shares subject to the terms of the July 2025 Credit Facility. As of the date of this registration statement, we have drawn down NIS 2,000,000 (approximately $627,000) under the July 2025 Credit Facility

*June 2025 Credit Facility*

 

On June 25, 2025, we entered into a loan agreement with L.I.A. Pure Capital Ltd. (the "Pure Capital") pursuant to which Pure Capital provided a loan to Deliverz.ai in the amount of NIS 1,452,000 (approximately $455,000) in order for Deliverz.ai to finance its ongoing operations following the closing of the Deliverz.ai acquisition. The loan will bear annual interest at a rate of 6%, and the principal will be repaid in 12 equal monthly installments starting from the closing date of the Deliverz.ai acquisition. On January 6, 2026, we and Pure Capital agreed to defer the repayment of the principal and the accrued interest that had not yet been paid as of such date until June 30, 2025 instead of repayment of the principal and the accrued interest in 12 equal monthly installments starting from the closing date of the Deliverz.ai acquisition. On May 20, 2026, the loan was amended such that the repayment date was extended to August 31, 2027.

 

*Xylo Loan Agreement*

 

On October 12, 2021, we entered into loan agreement with Xylo Technologies Ltd. ("Xylo"), pursuant to which Xylo agreed to extend us a loan in the amount of approximately NIS 4 million ($1.1 million) (the "Xylo Loan"). The Xylo loan was initially repayable upon the earliest of (i) the closing of a rights offering by us for an aggregate amount of at least NIS 12,000,000 or (ii) June 30, 2022 and bore interest at a rate equivalent to the minimal interest rate recognized and attributed by the Israel Tax Authority, as such may be adjusted from time to time.

In August 2022, the Xylo Loan was amended such that the repayment date was extended to June 30, 2023, and the interest rate was amended to be equal to the Prime Rate published by the Bank of Israel + 2.92%.

In August 2023, the Xylo Loan was amended such that the repayment date was extended to January 1, 2024.

In November 2023, the Xylo loan was amended to increase the amount of the Xylo Loan by NIS 100,000 (approximately $0.305).

In January 2024, the Xylo Loan was amended such that the repayment date was extended to July 1, 2024, and Xylo was given a right to convert the Xylo loan to the Company's ordinary shares at a price per share equal to the average closing bid price of our ordinary shares on the Tel Aviv Stock Exchange during the 30 trading days prior to a Trigger Event (as defined below). "Trigger Event" means (i) changes our principal business, entering new line of business, or exiting a principal portion of its current line of business; or (ii) the consummation of a transaction whereby it we either merge or consolidate with or into any other corporate entity.

In August 2024, the Xylo Loan was amended such that the repayment date was extended to December 31, 2024.

In October 2024, the Xylo loan was amended to increase the amount of the Xylo Loan by NIS 150,000 (approximately $0.46 million).

In January 2025, the Xylo Loan was amended such that the repayment date was extended to April 30, 2025, and the amount of the Xylo Loan was increased by NIS 150,000 (approximately $0.47 million).

In August 2025, the Xylo Loan was amended such that the repayment date was extended to June 30, 2026.

On May 20, 2026, the Xylo Loan was amended such that the repayment date was extended to August 31, 2027.

As of the date hereof, the outstanding balance of the Xylo Loan is NIS 2,975 thousand (approximately $932 thousand).

***Impact of the "Iron Swords" War on Israel***

In October 2023, Israel was attacked by a terrorist organization and entered a state of war on several fronts (the "War"). On June 13, 2025, Israel launched a strike against Iran, aimed to disrupt Iran's capacity to coordinate or launch hostilities against Israel. Iran has retaliated in response, firing missiles and drones at Israeli military and civilian infrastructure. While a ceasefire was reached in June 2025 following 12 days of hostilities, on February 28, 2026, the United States and Israel launched coordinated military strikes against Iran, including attacks on strategic military infrastructure and leadership targets, with the stated aim of degrading Iran's capacity to conduct or support hostile operations against them. In response, Iran has fired missiles and drones toward population centers and military installations in Israel, Europe and neighboring countries in the Gulf region, and also launched counter-strikes against U.S. forces and allied bases throughout the Gulf region. While a temporary ceasefire agreed to between Iran and the U.S. on April 8, 2026 as part of ongoing negotiations for a permanent ceasefire agreement, the situation remains volatile and uncertain. Although the ceasefire has been subject to extensions and continued diplomatic engagement, it has reportedly been characterized by tensions, alleged violations and stalled negotiations. We cannot predict if and to what extent this ceasefire will remain in effect or upheld or whether hostilities may resume or further escalate. In addition, in March 2026, hostilities resumed along Israel's northern border with Lebanon, when Hezbollah resumed its attacks as part of a broader regional escalation. In response, Israel resumed military operations against Hezbollah in southern Lebanon. A broader regional conflict involving additional state and non-state actors remains a significant risk. Iran is also believed to have a strong influence among extremist groups in the region, such as Hamas in Gaza, Hezbollah in Lebanon, the Houthi movement in Yemen and various rebel militia groups in Syria and Iraq. Continued military escalation, retaliatory actions, or broader regional involvement may adversely affect economic conditions, disrupt markets, and create uncertainty that could negatively impact our business, financial condition and results of operations. As of the date of this registration statement, our revenues have not been directly negatively affected by the ongoing hostilities in the region and our abilities to deliver or provide products and services to its customers have not been materially affected. We have business continuity procedures in place, and will continue to follow developments, assessing potential impact, if any, on our business, financials, and operations.

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***Changes in our Business***

On February 7, 2019, we entered into the Recapitalization Transaction with Quantum X Labs pursuant to which we assigned, transferred and delivered 99.83% of our holdings in Quantum X Labs Israel to Quantum X Labs in exchange for shares of restricted common stock, par value $0.0001 per share, of Quantum X Labs, which resulted in Quantum X Labs becoming a majority-owned subsidiary of the Company. As of the date hereof, we hold approximately 21.13% of Quantum X Labs's outstanding shares of common stock following the closings of the November 2025 Private Placement and Quantum Acquisition (as further described below in Item 4. "Information on Our Company—B. Business Overview—Quantum X Labs, Investment in Digital Advertising and Changes in Our Business". On September 25, 2025, following a decrease in our holding percentage in Quantum X Labs and a change in the composition of Quantum X Labs's board of directors, we lost control over Quantum X Labs. Accordingly, as a result of losing both majority ownership and control of Quantum X Labs, we will cease to consolidate the financial statements of Quantum X Labs as of the date of the change in control. Following the deconsolidation, our retained interest in Quantum X Labs has been accounted for under the equity method of accounting, as we continue to exercise significant influence but no longer control its operations.

In addition, in July 2025, we completed the acquisition of Deliverz.ai. While we have incurred significant operating losses, management believes that the acquisition of Deliverz.ai has the potential for long-term value creation. As a result, the Company's ability to achieve profitability and positive cash flows will depend on the successful execution of its business strategy; however, there can be no assurance that it will do so.

Management's strategy for achieving profitability is based on several key initiatives. These initiatives include expanding adoption of Deliverz.ai's advanced logistics automation solutions that are integrated with third-party autonomous robots to international commercial relationships and customers, increasing operating scale in order to improve gross margins and continuing to manage operating expenses with the objective of aligning cost growth with revenue growth. We believes that, over time, increased revenues combined with improved operating efficiency could contribute to reduced operating losses.

Our plans are subject to numerous assumptions and uncertainties, including, among others, market demand for our solutions, our ability to execute its business plan on a timely basis, the availability of sufficient capital to fund ongoing operations and growth initiatives, and general economic, competitive and industry conditions. Management's expectations further assume that we will be able to achieve certain operational and commercial milestones, including expanding our customer base and increasing utilization of solutions, which may take multiple reporting periods to accomplish, if at all.

While we do not expect to achieve profitability or positive cash flows in the near term, management believes that improvements in revenues and operating margins are achievable over the longer term; however, the timing of any such improvements is inherently uncertain and depends on factors that are outside of our control. Accordingly, there can be no assurance that we will achieve profitability or generate positive cash flows from operations on any particular timeline, or at all. We have also explored, and continue to explore, opportunities to utilize our significant and strategic investment in Quantum X Labs in order to obtain financing to further develop and invest in the Deliverz.ai business.

While our digital advertising business unit remains, and is expected to continue to remain, an important part of our business, we are in the early stages of transitioning our active business operations to be conducted primarily through Deliverz.ai. Through our acquisition of Deliverz.ai, we have diversified our investments into new markets and industries and have adjusted our exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. As we progresses in transitioning our business strategy, it is expected that Deliverz.ai will carry out our primary operational activities and be the vehicle through which we pursue our business strategy as further described in Item 4. "Information on Our Company—B. Business Overview" and "Item 3.B.—Capitalization and Indebtedness—Summary Historical and Pro Forma Consolidated Financial Data." Our ad-tech operations are conducted exclusively through our ownership interest in Quantum X Labs, and we do not maintain any ad-tech operations outside of this stake. If management sells our shares in Quantum X Labs, we will no longer have ad-tech operations as part of our business.

**A. Operating Results**

***Components of Operating Results***

***Revenues***

Our revenues were $7,744 thousand and $26,941 thousand for the years ended December 31, 2025 and 2024, respectively. We historically derived revenue from providing services to the world's leading search engines through the development, marketing, and distribution of software to internet users in our Search segment and providing services to Google through digital content based on related search for content (RSOC) in our Digital Content segment. Following our acquisition of Deliverz.ai, we primarily derive revenue from leasing contracts with Deliverz.ai customers, which cover robot rentals, maintenance and ongoing software updates. Deliverz.ai customer payments are made on a monthly basis over a 24-month period. We expect revenue to increase over time as we expand our customer base and product offerings.

Prior to the deconsolidation of Quantum X Labs Inc, we operated in two business segments prior to our acquisition of Deliverz.ai in July 2025. Following the acquisition, we operate in three business segments: (1) autonomous robots through Deliverz.ai, (2) digital content through Quantum X Labs and (3) search through Quantum X Labs.

***Traffic-acquisition and related costs***

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Our traffic-acquisition and related costs of sales were $6,336 thousand and $21,987 thousand for the years ended December 31, 2025 and 2024, respectively. Traffic-acquisition and related costs for digital content and search segments mainly consists of payment to digital platforms, such as Microsoft and Facebook, for traffic acquisition and other costs, such as anti-fraud costs. We have no traffic-acquisition and related costs expenses for the autonomous robots segment.

***Research and development expenses, net***

Our research and development expenses were $825 thousand and $1,891 thousand for the years ended December 31, 2025 and 2024, respectively. Research and development expenses for all segments include costs directly attributable to the conduct of research and development programs, including employee-related expenses, such as salaries and related expenses, share-based compensation, depreciation expenses, consulting fees and intellectual property expenses, such as patent application and maintenance expenses for the automation solutions segment. We expect to continue to invest in research and development to enhance our product offerings to our customers, including hiring additional employees and continuing research and development projects. As a result, we expect that our research and development expenses will increase in absolute dollars in future periods and vary from period to period as a percentage of revenue.

***Selling and marketing expenses***

Our selling and marketing expenses were $600 thousand, and $1,643 thousand for the years ended December 31, 2025 and 2024, respectively. Sales and marketing expenses for all segments include employee-related expenses, such as salaries share-based compensation, depreciation expenses, office rent and maintenance expenses relating to contracted services, such as subcontractor costs. We expect our sales and marketing expenses to increase significantly in absolute NIS or Dollars as we expand our commercial sales, marketing and business development teams, increase our presence globally; and increase marketing activities to drive awareness and adoption of our products. While these expenses may vary from period to period as a percentage of revenues, we expect these expenses to increase as a percentage of revenues in the short term as we continue to grow our commercial organization to drive anticipated growth in the business.

***General and administrative expenses***

Our general and administrative were $2,297 thousand, and $2,702 thousand for the years ended December 31, 2025 and 2024, respectively.

General and administrative expenses for all segments consist primarily of employee-related expenses including share-based compensation related to directors and employees, facility costs, insurance costs, depreciation expenses, maintenance expenses, and professional service costs, including legal, accounting, audit, finance and human resource services, and other consulting fees.

We anticipate that our general and administrative expenses will increase in the future as we increase our administrative headcount and infrastructure to support our growth and global expansion. We also anticipate that we will incur increased expenses related to audit, legal, regulatory and tax-related services associated with compliance with Nasdaq and SEC requirements, director and officer insurance premiums, director compensation, and other costs associated with being a public company traded on Nasdaq.

***Depreciation and Amortization Expenses***

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Our depreciation and amortization expenses were $1,170 thousand, and $1,300 thousand for the years ended December 31, 2025 and 2024, respectively.

Depreciation and amortization mainly related to intangible assets arising from business combinations.

***Goodwill Impairment Loss***

Our goodwill impairment loss was $6,105 thousand, and $2,025 thousand for the years ended December 31, 2025 and 2024, respectively.

Goodwill impairment loss for the year ended December 31, 2025 were related to the Content Platform, and driven mainly due to the Cortex Adverse Effect (as defined below).

***Other Expense (Income)***

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Our other expense, net were $1,327 thousand and $34 thousand for the years ended December 31, 2025 and 2024, respectively.

The other expenses (income) net, consisted mainly expenses related to the Uplist of Quantum X Labs's common stock to the Nasdaq Capital Market, which closed in June 2025, finder's fee in connection with the Deliverz.ai acquisition and listing expenses in connection with our anticipated listing on Nasdaq whereas the other income is mainly attributable to governmental grants received by Gix Media and Cortex from the Israel Tax Authority in connection with the "Iron Swords" war.

***Financial Expense (Income), Net***

Our financial expense, net were $11,536 thousand and $3,112 thousand for the years ended December 31, 2025 and 2024, respectively.

The financial expenses (income) net, consisted mainly of interest from short-term bank deposits, exchange rate differences income, interest expenses from loans and financial expense from the change at fair value of a derivative financial instrument.

***Income Taxes***

We have yet to generate taxable income. As of December 31, 2025, our net operating loss carryforwards for tax purposes were approximately $0 million (see note 12 to our consolidated financial statements). We anticipate that we will continue to generate losses for the foreseeable future and that we will be able to carry forward these losses for tax purposes to future taxable years. Accordingly, we do not expect to pay taxes in Israel until we have taxable income after the full utilization of our carry forward tax losses. On July 27, 2025, a tax ruling was received from the Israeli Tax Authority regarding the Securities Exchange Agreement with Deliverz.ai (the "Ruling"). According to the Ruling, the former shareholders of Deliverz.ai will be exempt from tax payments on the gains resulting from the sale of Deliverz.ai shares to the Company until the realization of the Company's shares paid to them as consideration, and concurrently all tax losses of the Company that existed prior to the date of Securities Exchange Agreement with Deliverz.ai will expire, except that such losses may be offset against a sale of Quantum X Labs Inc. shares. Additionally, according to the Ruling, any gain or loss arising from our potential sale of Deliverz.ai shares may not be offset against any tax loss that existed prior to the date of Securities Exchange Agreement.

***Results of Operations***

The period-to-period comparisons of our results of operations have been prepared using the historical periods included in our consolidated financial statements. The following discussion should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this document. We have derived this data from our consolidated financial statements included elsewhere in this registration statement.

**Comparison of the year ended December 31, 2025 to the year ended December 31, 2024**

**Results of Operations**

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| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
| ***(audited)*** | **2025** | **2024** |
| *(USD in thousands)* |  |  |
| Revenues | $7744 | $26941 |
| Traffic-acquisition and related costs | $6336 | $21987 |
| Gross profit | $1408 | $4954 |
| Research and development expenses, net | $825 | $1891 |
| Selling and marketing expenses | $600 | $1643 |
| General and administrative expenses | $2297 | $2702 |
| Depreciation and amortization | $1170 | $1300 |
| Goodwill impairment | $6105 | $2025 |
| Other expenses (income), net | $1327 | $34 |
| Operating loss | $(10916) | $(4641) |
| Gain from deconsolidation of Quantum X Labs Inc. | $6731 | $- |
| Finance expense (income), net | $11536 | $3112 |
| Equity loss from investments accounted for using the equity method | $(158) | $- |
| Tax income | $145 | $7 |
| Net loss | $(15734) | $(7746) |
| **Net loss is attributable to:** | $— | $— |
| Shareholders of Gix Internet Ltd. | $(3308) | $(4950) |
| Non-controlling interests | $(12426) | $(2796) |
|  | $(15734) | $(7746) |

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***Revenues***

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Our revenues for the year ended December 31, 2025 amounted to $7,744 thousand, representing a decrease of $19,197 thousand or 71% compared to $26,941 thousand for the year ended December 31, 2024. The decrease was primarily driven by the Cortex Adverse Effect, which materially affected Cortex's business and operations and occurred following certain recent developments relating to publishers that are categorized by a number of on-line advertisers as MFA, including decisions made by leading media on-line advertisers to prioritize different media categories and implement publishing restrictions in connection with MFA, and the deconsolidation of Quantum X Labs, which was consolidated for 12 months during the year ended December 31, 2024 compared to 9 months during the year ended December 31, 2025. In addition, during the year ended December 31, 2025, the number of search referrals to a major customer of Gix Media conducted by users from Gix Media's Search Platforms direct model was 17.06 million (which only includes search referrals up to September 25, 2025, the date of the deconsolidation of Quantum X Labs), compared to 55.1 million for the year ended December 31, 2024. The decrease in user search referrals is primarily due to changes and updates in internet browsers' technology, which have reduced the scale of distribution of Gix Media's products through the direct model and the deconsolidation of Quantum X Labs, which was consolidated for 12 months during the year ended December 31, 2024, compared to 9 months during the year ended December 31, 2025. The Company anticipates that its revenues from add-ons to internet browsers will continue to decrease due to changes and updates in internet browsers' technology while its revenues from the Search to Search model will increase.

***Traffic-Acquisition and Related costs***

Our traffic-acquisition and related costs for the year ended December 31, 2025 amounted to $6,336 thousand, representing a decrease of $15,651 thousand or 71% compared to $21,987 thousand for the year ended December 31, 2024. The decrease was primarily driven by the decrease in revenues during the year ended December 31, 2025, as mentioned above, and the deconsolidation of Quantum X Labs, which was consolidated for 12 months during the year ended December 31, 2024, compared to 9 months during the year ended December 31, 2025.

***Research and Development Expenses, net***

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Our research and development expenses for the year ended December 31, 2025 amounted to $825 thousand, representing a decrease of $1,066 thousand or 56%, compared to $1,891 thousand for the year ended December 31, 2024. The decrease was primarily driven by an expense reduction as a response to the decrease in the Company revenues during the year ended December 31, 2025, and the deconsolidation of Quantum X Labs, which was consolidated for 12 months during the year ended December 31, 2024, compared to 9 months during the year ended December 31, 2025.

***Selling and Marketing Expenses***

Our selling and marketing expenses for the year ended December 31, 2025 amounted to $600 thousand, representing a decrease of $1,043 thousand or 63%, compared to $1,643 thousand for the year ended December 31, 2024. The decrease was primarily driven by an expense reduction primarily in salaries in the during the year ended December 31, 2025 as a response to the decrease in the Company revenues and the deconsolidation of Quantum X Labs, which was consolidated for 12 months during the year ended December 31, 2024 compared to 9 months during the year ended December 31, 2025.

***General and Administrative Expenses***

Our general and administrative expenses for the year ended December 31, 2025 amounted to $2,297 thousand, representing a decrease of $405 thousand or 15%, compared to $2,702 thousand for the year ended December 31, 2024. The decrease was primarily driven by an expense reduction primarily in salaries, rental and headquarters expenses during the year ended December 31, 2025 and the deconsolidation of Quantum X Labs, which was consolidated for 12 months during the year ended December 31, 2024 compared to 9 months during the year ended December 31, 2025.

***Depreciation and Amortization expenses***

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Our depreciation and amortization expenses for the year ended December 31, 2025 amounted to $1,170 thousand, representing a decrease of $130 thousand or 10%, compared to $1,300 thousand for the year ended December 31, 2024. The decrease in depreciation and amortization expenses is attributable to the deconsolidation of Quantum X Labs, which was partially offset by depreciation and amortization expenses arising in connection with the Deliverz.ai transaction.

G***oodwill impairment loss***

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Our goodwill impairment loss expenses for the year ended December 31, 2025 amounted to $6,105 thousand as compared to $2,025 thousand for the year ended December 31, 2024. The increase was related to the Content Platform (see note 6.B to our consolidated financial statements).

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***Other expenses***

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Our other expenses for the year ended December 31, 2025, amounted to $1,327 thousand, representing an increase of $1,293 thousand as compared to $34 thousand for the year ended December 31, 2024. The increase was primarily driven due to professional expenses incurred in connection with the uplist of Quantum X Labs's common stock to the Nasdaq Capital Market, which closed in June 2025, the finder's fee in connection with the Deliverz.ai acquisition and listing expenses in connection with our anticipated listing on Nasdaq as compared to other income mainly due to the receipt governmental grants from the Israel Tax Authority in relation to the "Iron Swords" war during the year ended December 31, 2024.

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***Operating Loss***

As a result of the foregoing, our operating loss for the year ended December 31, 2025 was $10,916 thousand, as compared to an operating loss of $4,641 thousand for the year ended December 31, 2024, representing a decrease of $6,275 thousand, or 135%.

***Financial expense (income), net***

During the year ended December 31, 2025, we had financial expense net, of $11,536 thousand, which resulted mainly from financing expenses related to financial instruments arising from Credit Facility. During the year ended December 31, 2024, we had financial expenses net, of $3,112 thousand, which resulted mainly from interest expense on bank loans and loss from substantial debt terms modification (see note 10.F to our consolidated financial statements).

***Net Loss***

As a result of the foregoing, our total net loss for the year ended December 31, 2025 was $15,734 thousand, as compared to an operating loss of $7,746 thousand for the year ended December 31, 2024, representing an increase of $7,988 thousand, or 103%.

**B. Liquidity and Capital Resources**

***Overview***

 **

Our primary uses of cash are to fund working capital requirements and capital expenditures. Historically, we have funded our operations primarily through issuances of equity securities and cash flow from operations from sales of our products and partially from government grants from the IIA. Our capital requirements depend on many factors, including sales volume and the timing and extent of spending to expand our production capabilities, support research and development efforts, investments in information technology systems, the expansion of sales and marketing activities, increased costs as we continue to hire additional personnel, and market adoption of new and enhanced products and features. For the years ended December 31, 2025 and 2024, we had a net loss $15,734 thousand and $7,746 thousand, respectively. As of the date of the issuance of these financial statements, and for the years ended December 31, 2025, and 2024 our cash and cash equivalents amounted to $2,980, $205 thousand, and $632 thousand respectively.

We have committed to finance Deliverz.ai for a period of 12 months from the date of signing the Securities Exchange Agreement, in a total amount of $1,128 thousand, of which $662 thousand was funded by us as a loan as of December 31, 2025. In addition, we have also extended a loan to Deliverz.ai in the amount of $455 thousand, which was extended to Deliverz.ai as a loan by Pure Capital. Deliverz.ai received a portion of the loan amount equal to NIS 250,000 (approximately $78,000) from Pure Capital as of the execution date of the Securities Exchange Agreement.

On May 20, 2026, Pure Capital and Xylo agreed to defer their loans until August 31, 2027.

During the year ended December 31, 2025, we have utilized an amount of NIS 6,150 (approximately $1,928) thousand from the credit line. In addition, during 2026 until the date hereof, we have utilized additional amount of NIS 2,803 (approximately $879) thousands from the credit line, we except to utilized additional amount of NIS 746 (approximately $234) thousand until June 30, 2026, which will be used for working capital purposes. In total, we have utilized a partial amount of NIS 10 (approximately $3.4) million from total NIS 12 (approximately $4.1) million credit line.

In addition, during 2026 we may sell the shares of Quantum X Labs common stock that we currently hold, as a result of the Ruling received by the Israeli Tax Authority in July 2025, in which we are permitted to offset against any tax loss or gain arising from the potential sale of Quantum X Labs shares. For additional information, see "Item 5. Operating and Financial Review and Prospects — A. Operating Results — Components of Operating Results — Income Taxes." As of the date of this registration statement, we hold 2,818,585 shares of Quantum X Labs common stock, which are valued at approximately $10.4 million, based on the closing price of Quantum X Labs's common stock on May 19, 2026.

The sale of the Quantum X Labs shares together with expected capital raise will be used for repayment our short-term loans, working capital needs, loan repayments, and the future growth of Deliverz.ai.

Since we have not yet generated cash flows from operating activities, our funding sources primarily rely on the issuance of equity securities. Based on the May 2026 PIPE where we issued and sold an aggregate of 417,272 ordinary shares and 417,272 warrants for aggregate gross proceeds of NIS 9.18 million (approximately $2.88 million), the deferment of the loans received from Pure and Xylo until August 31, 2027, and our current business plan, we believe that our current cash and cash equivalents and short-term bank deposits together with anticipated cash flow from operations will be sufficient to meet our anticipated cash requirements over at least the next 12 months from the date of this registration statement. However, we expect to continue incurring losses and negative cash flows from operations until our products revenues reach a sufficient level. Therefore, in order to fund our operations until such time that we can generate substantial revenues, we may need to raise additional funds.

***Contractual Obligations***

Our principal short-term cash requirements over the next twelve months consist primarily of operating expenses, working capital needs, and payments under short and long-term loans. As of December 31, 2025, we have short-term loans, including accrued interest, in the aggregate amount of $3,184 thousand, comprised as follows: (1) a loan from Xylo, in the amount of $1,189 thousand.(2) a loan from Pure Capital in the amount of $367 thousand; and (3) a utilized credit line in the amount of $1,628 thousand, which is expected to be fully repaid by December 31, 2026.

Beyond the next twelve months, we expect to require additional capital to fund ongoing operations, execute our business strategy, and satisfy long-term loans.

Our plans include continued commercialization of our products and raising capital through sale of additional equity securities. There are no assurances, however, that we will be successful in obtaining the level of financing needed for our operations. If we are unsuccessful in commercializing our products or raising capital, we may need to reduce activities, curtail or cease operations.

***Capital Expenditures***

 ****

Our capital expenditures as of December 31, 2025 and 2024 amounted to $110 thousand and $1 thousand, respectively. These expenditures were for purchases of fixed assets. Our main purchases of fixed assets include computers, software and laboratory equipment and machines used for the development of our products.

***Off Balance Sheet Arrangements***

 

We do not currently have, any off-balance sheet arrangements involving commitments or obligations, including contingent obligations, arising from arrangements with unconsolidated entities or persons that have or are reasonably likely to have a material current or future effect on our financial condition, results of operations, liquidity, cash requirements or capital resources.

***Government Grants***

 ****

Under the Innovation Law, research and development programs that meet specified criteria and are approved by a committee of the IIA are eligible for grants. A company that receives a royalty-bearing grant from the IIA is typically required to pay royalties to the IIA on income generated from products, whose development was supported by the IIA through grants up to 100% linked to the U.S. dollar plus interest.

The obligation to pay royalties is contingent on actual income generated from such products. In the absence of such income, no payment of royalties is required.

Our research and development efforts were partially financed through royalty-bearing grants from the IIA. In 2024, we did not receive any new grants.

As of December 31, 2025, the maximum amount of royalties we are committed to pay to the IIA at a rate of 3% on sales proceeds from our products developed, using the IIA grants we received under IIA programs are up to NIS 1.4 million (approximately $439 thousand, linked to the U.S. dollar and bearing annual interest at rates as prescribed by the IIA's rules and guidelines. As of December 31, 2025, Deliverz.ai did not recognize a liability to the IIA, as there is uncertainty regarding the generation of future revenues and the completion of the development.

We may apply in the future to receive additional grants from the IIA. However, we cannot predict whether we will be entitled to any future grants, or the amounts of any such grants.

***Cash Flows***

***Year Ended December 31, 2025, Compared to Year Ended December 31, 2024***

 ****

The table below shows a summary of our cash flows for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| *(USD in thousands)* |  |  |
| **Cash, cash equivalents and restricted cash at beginning of the period** | $690 | $2059 |
| Net cash provided by (used in) operating activities | (3527) | 1282 |
| Net cash used in investing activities | (2450) | (1) |
| Net cash provided by (used in) financing activities | 5642 | (2669) |
| **Decrease in cash and cash Equivalents** | (335) | (1388) |
| **Effect of exchange rate changes on cash** | (142) | 19 |
| **Cash and cash equivalents at end of year** | 213 | 690 |

---

*<u>Net cash used in operating activities</u>*

 

Net cash used in operating activities amounted to $3,527 thousand for the year ended December 31, 2025, as compared to net cash provided by operating activities in an amount of $1,282 thousand for the year ended December 31, 2024. This decrease was driven primarily by: (i) a decrease in changes in assets and liabilities items in an amount of $475 thousand during the year ended December 31, 2025 as compared an increase in the amount of $3,373 thousand during the year ended December 31, 2024 mainly due to fact that Gix Media paid approximately $1.13 million to the service providers as part of a settlement agreement; (ii) an increase in the net loss for the year ended December 31, 2025 in an amount of $7,988 thousand due to the decrease in the Company's revenues.

*<u>Net cash used in investing activities</u>*

 

Net cash used in investing activities increased by $2,499 thousand, from $2,450 thousand for the year ended December 31, 2025, compared to $1 thousand for the year ended December 31, 2024. This decrease was driven primarily due to deconsolidation of Quantum X Labs and by the purchase of property and equipment.

*<u>Net cash used in financing activities</u>*

 

Net cash provided by financing activities amounted to $5,642 thousand for the year ended December 31, 2025, compared to net cash used in financing activities in amount of $2,669 thousand for the year ended December 31, 2024. The increase was primarily attributable to proceeds of $2,222 thousand from the exercise of warrants in connection with facility agreements and a private placement, $4,023 thousand received under the July 2025 Private Placement, $1,635 thousand received under July 2025 Credit Facility Agreement, net repayments of bank loans and convertible loans, which totaled $2,238 thousand during the year ended December 31, 2025 as compared to $2,872 thousand during the year ended December 31, 2024.

**C. Research and development, patents and licenses, etc.**

For a description of our research and development programs and the amounts that we have incurred over the last three years pursuant to those programs, please see "Item 5. Operating and Financial Review and Prospects — A. Operating Results — Research and Development Expenses, Net" and "Item 5. Operating and Financial Review and Prospects — A. Operating Results — Comparison of the Year Ended December 31, 2025 to the Year ended December 31, 2024."

**D. Trend Information**

Other than as disclosed in "Item 5. Operating and Financial Review and Prospects — Components of Operating Results" and elsewhere in this registration statement, we are not aware of any trends, uncertainties, demands, commitments or events for the period from January 1, 2025 to December 31, 2025 that are reasonably likely to have a material effect on our total revenues, income, profitability, liquidity or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial condition.

**E. Critical Accounting Estimates**

 ****

We prepare our financial statements in accordance with US GAAP. The preparation of these consolidated financial statements requires us to make estimates, assumptions and judgments that can significantly impact the amounts we report as assets, liabilities, revenue, costs and expenses and the related disclosures. We base our estimates on historical experience and other assumptions that we believe are reasonable under the circumstances. Our actual results could differ significantly from these estimates under different assumptions and conditions. Our significant accounting policies are summarized in note 2 to our consolidated financial statements. We identify here policies that entail significant judgments or estimates by management.

<u>Impairment test for Goodwill</u>

Goodwill is tested for impairment at least annually, and whenever events or changes in circumstances occur indicating that it is "more likely than not", impairment may be deemed to have been incurred. We have the option to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying value as a basis for determining if it is necessary to perform the quantitative goodwill impairment test. However, if we conclude otherwise, we are required to perform the quantitative impairment test by calculating the fair value of the reporting unit and comparing it against its carrying value.

We have two reporting units to which goodwill was allocated: the Search Platform and the Content Platform.

For both reporting units, we performed the quantitative impairment test. In estimating the fair value of our reporting units, we used the income approach, which requires us to make significant estimates and assumptions related to future cash flows and discount rates. Changes in these estimates and assumptions could have a significant impact on the fair value of the reporting units. If the fair value exceeds the carrying value, no further evaluation is required, and no impairment loss is recognized. An impairment charge would be recognized to the extent the carrying value of the reporting unit exceeds the reporting unit's fair value.

As of December 31, 2025, we recorded a goodwill impairment loss in the amount of $6,105 thousand for the Content Platform reporting unit.

**Quantitative and Qualitative Disclosures About Market Risk**

***Inflation Risk***

 **

We do not believe that inflation has had a material effect on our business, financial condition or results of operations, other than its impact on the general economy. Nonetheless, to the extent our costs are subject to inflationary pressures, we may not be able to fully offset such higher costs through price increases or manufacturing efficiencies. Our inability or failure to do so could harm our business, financial condition and results of operations.

***Liquidity risks***

 ****

As we have not yet generated significant cash flows from operating activities, our funding sources primarily rely on the issuance of equity instruments to our current and future shareholders.

**Emerging Growth Company Status**

We may qualify as an "emerging growth company" as defined in the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

● to the extent that we no longer qualify as a foreign private issuer, (i) reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and (ii) exemptions from the requirement to hold a non-binding advisory vote on executive compensation, including golden parachute compensation.

● an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002; and

● an exemption from compliance with the requirement that the Public Company Accounting Oversight Board has adopted regarding a supplement to the auditor's report providing additional information about the audit and the financial statements.

We intend to take advantage of these exemptions until we are no longer an "emerging growth company." We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of our first sale of common equity securities pursuant to an effective registration statement under the Securities Act, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, as defined in the rule under the Exchange Act, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. Directors and Senior Management**

**Executive Officers and Directors**

The following table sets forth information regarding our executive officers and directors, including their ages as of the date of this registration statement:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Eliyahu Yoresh | 55 | Chairman of the Board of Directors |
| Amir Nardimon | 47 | Interim Chief Executive Officer |
| Amihay Hadad | 49 | Chief Financial Officer |
| Liron Carmel (3) | 43 | Director |
| Avi Ben David (3) | 57 | Director |
| Asaf Itzhaik (1)(2)(3) | 52 | Director |
| Shoshi Eizenberg Hertz (1)(2)(3)(4) | 65 | Director |
| Ron Silberman (1)(2)(3)(4) | 67 | Director |

---

(1) Member
 of Audit Committee

(2) Member
 of Compensation Committee

(3) Independent
 director under Nasdaq and SEC independence standards

(4) External
 director (as defined under the Companies Law)

**Eliyahu Yoresh, Chairman of the Board**

Mr. Eliyahu Yoresh has served as the Chairman of our Board of Directors since September 2022 (prior to which he served as a director since November 2020). Additionally, Mr. Yoresh has served as a member of the Board of Directors of Quantum X Labs Inc. (Nasdaq: QXL) since September 19, 2022 and the Board of Directors of Xylo Technologies Ltd. (Nasdaq: XYLO) since September 2018. He also serves as Chairman of the Board of Xylo since February 2020. Mr. Yoresh also serves as Chief Financial Officer of Foresight Autonomous Holdings Ltd. (Nasdaq, TASE: FRSX). In addition, Mr. Yoresh serves as a director of Elbit Imagining Ltd (TASE: EMITF) since August 2021 and of Charging Robotics Inc (OTC: CHEV) since April 2023. Mr. Yoresh served as the Chief Executive Officer of Tomcar Global Holdings Ltd., a global manufacturer of off-road vehicles, from 2005 to 2008. Mr. Yoresh is an Israeli Certified Public Accountant. Yoresh acquired a B.A. in business administration from the Business College, Israel and an M.A. in Law Study from Bar-Ilan University, Israel.

**Amir Nardimon, Interim** **Chief Executive Officer**

Mr. Amir Nardimon was appointed as our interim Chief Executive Officer, effective May 3, 2026, subject to the approval of our shareholders at our next annual general meeting of shareholders. Mr. Nardimon has served as the Founder and Chief Executive Officer of Deliverz.ai Ltd., an AI-driven autonomous logistics platform focused on healthcare environments, since January 2017, including after his acquisition by Gix Internet Ltd. in 2025. In that role, he has led the company from inception through commercial deployment, overseeing the integration of robotics, workflow orchestration, and real-time operational intelligence in live hospital settings. Mr. Nardimon has managed all aspects of the business of Deliverz.ai, including product strategy, engineering, go-to-market execution, investor relations, and regulatory compliance. Since March 2026, Mr. Nardimon has served as a member of the board of directors of Charging Robotics Inc. (OTC: CHEV). Prior to founding Deliverz.ai, Mr. Nardimon previously served as Director of Software Engineering at Cadence Design Systems from April 2016 to December 2018, where he led global research and development operations comprising approximately 40 engineers across Israel, India, and the United States. Before that, he served as Compiler Group Manager at Rocketick Technologies, a venture-backed deep-tech company backed by NVIDIA, Intel, and Magnum VC, from July 2011 until its acquisition by Cadence Design Systems in April 2016. Earlier in his career, Mr. Nardimon was an Embedded Software Engineer at Intel Corporation from May 2005 to July 2011, where he developed software for wireless communication systems and received multiple performance awards. Mr. Nardimon holds a Bachelor of Science in Computer Science from Reichman University (IDC Herzliya) in Israel.

**Amihay Hadad, Chief Financial Officer**

Mr. Amihay Hadad has served as our Chief Financial Officer since May 30, 2023 and previously served as our Chief Executive Officer and Chief Financial Officer from October 1, 2018 to September 20, 2022. Additionally, Mr. Hadad serves as the Chief Executive Officer of Quantum X Labs Inc. (Nasdaq: QXL) since February 20, 2020, and served as Quantum X Labs's Chief Financial Officer from July 25, 2019 and until June 28, 2022, and was appointed as a member of Quantum X Labs's Board of Directors on January 1, 2020. From 2011 until 2018, Mr. Hadad served as the Chief Financial Officer of Yedioth Internet. Mr. Hadad holds both a B.A. and an MBA from the College of Management Academic Studies in Rishon LeZion, Israel, and an M.A. in law from Bar-Ilan University, Israel. Mr. Hadad is also a certified public accountant in Israel.

**Liron Carmel, Director**

Mr. Liron Carmel has served as a member of our Board of Directors since June 2021. Additionally, Mr. Carmel serves as a member of the Board of Directors of Quantum X Labs Inc. (Nasdaq: QXL) since September 19, 2022, and the Chief Executive Officer of Xylo Technologies Ltd. (Nasdaq: XYLO), which role he has held since April 2019. Mr. Carmel has vast experience in business and leadership across multiple industries, including bio pharma, internet technology, oil & gas exploration & production, real estate and financial services. In addition, he serves as Chairman of the Israel Tennis Table Association. Mr. Carmel also currently serves as a member of the Board of Directors of several private and public companies, including Polyrizon Ltd. (Nasdaq: PLRZ), beginning July 2020 until September 2024 and since January 2025, Jeffs' Brands Ltd. beginning January 2021 and as the Chairman of the Board of Directors of Eventer Technologies Ltd. beginning October 2020.

**Avi Ben David, Director**

Mr. Avi Ben David has served as a member of our Board of Directors since July 14, 2025. Mr. Ben David has served as the CEO and a director of Pareto Mergers and Acquisitions Ltd. since 2004, and as the CEO and a director of Landoit Technologies Israel Ltd since 2017. In addition, Mr. Ben David has also served as a co-managing director of Deliverz.ai since 2024. Mr. Ben David holds a B.A. in Economics from Bar-Ilan University.

**Asaf Izhaik, Director**

Mr. Asaf Itzhaik has served as a member of our Board of Directors since August 2021. Mr. Itzhaik has served as the chief executive officer of A.K.A Optics Ltd., a manufacturer of adaptive optics, since 1994 and as a member of the board of directors of A.K.A Optics Ltd. since 1998. Mr. Itzhaik has also served as a member of the board of directors of Jeffs' Brands Ltd. (Nasdaq: JFBR) since August 2022, Tzmicha Ltd. (TASE: TZMI) since August 2021 and Clearmind Medicine Inc. (Nasdaq: CMND) since December 2022. Mr. Itzhaik in a certified optometrist and graduated a program in corporate board leadership in Merkaz Hashilton Hamkomi. Mr. Izhaik has completed a continuing education director's course in Israel.

**Shoshi Eizenberg Hertz, External Director**

Ms. Shoshi Eisenberg Hertz has served as an External Director on our Board of Directors since May 23, 2019. Ms. Eisenberg Hertz serves as a member of our Audit Committee and Compensation Committee. Ms. Eisenberg Hertz served as the Director of the Suicide Prevention Unit at the Israeli Ministry of Health and as a Regional Supervisor from 2014 to 2025. She was also responsible for Ben Gurion Airport operations on behalf of the Israeli Ministry of Health from 2020 to 2025. Ms. Eisenberg Hertz retired from civil service in January 2025. Ms. Eisenberg Hertz holds an LL.B. degree and is a licensed attorney from Ono Academic College, a B.A. in Bible Studies, Jewish Thought and Music from Derby University, and an M.A. in Educational Administration from Derby University.

**Ron Silberman, External Director**

Mr. Ron Silberman has served as an External Director on our Board of Directors since February 17, 2021. Mr. Silberman serves as a member of our Compensation Committee, Audit Committee, and Investment Committee. Mr. Silberman served as the Chief Executive Officer of Meme Energy Bar Ltd. from 2011 to 2019. Mr. Silberman is a Certified Public Accountant and holds a B.A. in Economics and Accounting from Tel Aviv University.

 ****

***Family Relationships***

There are no family relationships between or among any of our directors or executive officers.

***Arrangements for Election of Directors and Members of Management***

There are no arrangements or understandings with major shareholders, customers, suppliers or others pursuant to which any of our executive management or our directors were selected. See "Item 7B — Major Shareholders and Related Party Transactions — Related Party Transactions" for additional information.

**B. Compensation**

The following table presents in the aggregate all compensation we paid to all of our directors and senior management as a group for the year ended December 31, 2025. The table does not include any amounts we paid to reimburse any of such persons for costs incurred in providing us with services during this period.

All amounts reported in the table below reflect the cost to us in U.S. dollars, for the year ended December 31, 2025. Amounts paid in NIS are translated into U.S. dollars at the rate of NIS 3.453 = $1.00, based on the average representative rate of exchange between the NIS and the U.S. dollar as reported by the Bank of Israel in the year ended December 31, 2025. All directors and senior management as a group, consisting of 8 persons (as of December 31, 2025).

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **NIS** | **NIS** | **Convenience translation into U.S. dollars** | **Convenience translation into U.S. dollars** |
| *(in thousands)* | | | | |
| Salary and related benefits |  | 1652 |  | 478 |
| Pension retirement and other similar benefits |  |  |  |  |
| Share based compensation |  | 742 |  | 215 |

---

As of December 31, 2025, options to purchase 26,667 ordinary shares granted to our directors and executive officers were outstanding under our 2017 Equity Incentive Plan at a weighted average exercise price of $29.88 per share.

The following table presents information regarding compensation accrued in our financial statements for our five most highly compensated office holders (within the meaning of the Companies Law), during or with respect to the year ended December 31, 2025.

All amounts reported in the table below reflect the cost to us in thousands of U.S. dollars, for the year ended December 31, 2025. Amounts paid in NIS are translated into U.S. dollars at the rate of NIS 3.453 = $1.00, based on the average representative rate of exchange between the NIS and the U.S. dollar as reported by the Bank of Israel in the year ended December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Salary<br> Costs<sup>(1)</sup>** | **Bonus<br> Payments,<br> Benefits<br> and<br> Perquisites (2)** | **Stock-Based<br> Compensation (3)** | **Total** |
| *(USD in thousands)* |  |  |  |  |
| **Amihay Hadad** | 237 |  |  | 237 |
| *Chief Financial Officer of Quantum X Labs and Chief Executive Officer of the Company* |  |  |  |  |
| **Eliyahu Yoresh** | 96 |  | 106 | 202 |
| *Chairman of the Compony Board of Directors and Chairman of Quantum X Labs Board of Director* |  |  |  |  |
| **Amitay Weiss\*** | 96 |  | 106 | 202 |
| *Former Chief Executive Officer the Company and Director of Quantum X Labs* |  |  |  |  |
| **Shahar Marom** | 151 |  |  | 151 |
| *Chief Financial Officer of Quantum X Labs* |  |  |  |  |
| **Amir Nardimon** | 89 |  | 57 | 146 |
| *Chief Executive Officer of Deliverz and Interim Chief Executive Officer of the Company* |  |  |  |  |

---

\* Mr. Amitay Weiss resigned as the Company's chief executive officer, effective May 3, 2026.

(1) Costs include gross salary, including benefits mandated by applicable law which may include, to the extent applicable to each executive officer, payments, contributions and/or allocations for pension, severance, vacation, payments for social security, study funds and other similar benefits consistent with applicable law and our guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Amounts
 reported in this column include benefits and perquisites, including those mandated by applicable law. Such benefits and perquisites
 may include, to the extent applicable to the respective executive officer, bonuses, payments, contributions, car or car allowance,
 and other similar benefits and perquisites consistent with our policies.

(3) Amounts
 reported in this column represent the expense recorded in our audited consolidated financial statements for the year ended December
 31, 2025, with respect to options to purchase our ordinary shares granted to our executive officers. Assumptions and key variables
 used in the calculation of such amounts are discussed in Note 13 to our audited consolidated financial statements for the year ended
 December 31, 2025.

***Employment Agreements and Consulting Agreements***

We have entered into written employment agreements with each of our executive officers, which provide for notice periods of varying duration for termination of the agreement by us or by the relevant executive officer, during which time the executive officer will continue to receive base salary and benefits. These agreements also contain customary provisions regarding noncompetition, confidentiality of information and assignment of inventions. However, the enforceability of the noncompetition provisions may be limited under applicable law. See "Risk Factors — Risks Related to Israeli Law and Our Operations in Israel— We may be required to pay monetary remuneration to our Israeli employees for their inventions, even if the rights to such inventions have been duly assigned to us." for a further description of the enforceability of non-competition clauses.

The following are summary descriptions of certain agreements to which we are a party. The descriptions provided below do not purport to be complete and are qualified in their entirety by the complete text of such agreements

*Mr. Amir Nardimon*

Effective May 3, 2026, our board of directors appointed Mr. Amir Nardimon to serve as our interim chief executive officer, subject to the approval of our shareholders at our next annual general meeting of shareholders Mr. Nardimon has also served as the chief executive officer of Deliverz.ai since January 18, 2017.

Mr. Nardimon's monthly salary is NIS 40,000. In addition, he is entitled to customary social and ancillary benefits, but not limited to, managers' insurance/pension fund, study fund, travel expenses and vacation days.

Mr. Nardimon has undertaken not to resign for a period of three years from the completion date of the Deliverz.ai acquisition transaction and to continue serving as chief executive officer on a full-time basis during this period.

His employment is for an indefinite term. Either party may terminate the employment upon 60 days' prior written notice; however, Mr. Nardimon may terminate the agreement with such prior notice only following the end of a three year non-compete (lock-up) period. The Company may terminate his employment immediately and without prior notice for cause.

In September 2025, Mr. Nardimon was granted 44,608 options exercisable into 44,608 ordinary shares. The vesting period is over four years in 16 equal quarterly installments, at an exercise price of NIS 19.5 per share.

*Mr. Amihay Hadad*

Effective as of June 1, 2023, Mr. Amihay Hadad was appointed as our chief financial officer. In consideration for his services as chief financial officer, the Company shall pay Viewbix Ltd. a monthly fee of NIS 12,000, plus VAT. Such payment is in addition to Mr. Hadad's monthly salary in his capacity as chief executive officer of Quantum X Labs. Quantum X Labs entered into an employment agreement, through its wholly-owned subsidiary in Israel, Viewbix Ltd., with Mr. Hadad, pursuant to which as of December 1, 2022, he is entitled to receive the following terms of compensation: (i) a gross monthly base salary of NIS 50,000 (approximately $14,200) and (ii) certain additional performance-based cash awards, including (a) Quantum X Labs's achievement of certain pre-determined financial targets (as evaluated pursuant to adjusted EBITDA metrics), (b) completion of certain merger and acquisition transactions, and (c) pursuant to the discretion of Quantum X Labs's board of directors following a review of Mr. Hadad's performance upon the completion of the fiscal year (collectively the "Bonus Payments"). The Bonus Payments, in the aggregate, are limited to an amount equal to six (6) months' base salary*.* In accordance with the terms of Mr. Hadad's employment agreement, he will also receive additional benefits customary for a chief executive officer of his experience and for companies of similar stature and standing to that of Quantum X Labs.

***Directors' Service Contracts***

We do not have written agreements with any director providing for benefits upon the termination of his employment with our company.

Our board members are each entitled to an annual fee and a per meeting fee of the fixed amounts set under the Companies Law in accordance with our then-effective grade, so that as of January 1, 2025 and according to our equity as of December 31, 2024, all members of our board of directors, who are not otherwise employed by us, shall be entitled to an annual fee of NIS 33,565 (approximately $9,203) and a per meeting fee of NIS 1,075 (approximately $295). Board members may waive their here right to receive the above fees or options or any part thereof, and director nominees may assign their right to remunerations to the shareholder that appointed them.

Our board members (except for Mr. Eliyahu Yoresh who receives compensation as chairman of our board of directors) requested to irrevocably waive the compensation to which they are entitled for their service as directors of the Company due to the Company's financial situation from October 1, 2023 until July 30, 2025, up to the minimum amounts set under the Companies Law, which are an annual fee of NIS 24,570 (approximately $6,737) and a per meeting fee of NIS 710 (approximately $195).

**C. Board Practices**

***Introduction***

 

We are incorporated in Israel, and, therefore, are generally subject to various corporate governance practices under Israeli law such as with respect to external directors, independent directors, audit committee, compensation committee, an internal auditor and approvals of interested party transactions. These matters are in addition to the requirements of The Nasdaq Capital Market and other relevant provisions of U.S. securities laws applicable to us. Under the Nasdaq Listing Rules, a foreign private issuer may generally follow its home country practices for corporate governance in lieu of the comparable Nasdaq Capital Market requirements, except for certain matters such as composition and responsibilities of the audit committee and the SEC-mandated standards for the independence of its members. We currently comply with all the above-mentioned requirements.

Our board of directors presently consists of 6 members, including two external directors required to be appointed under the Companies Law. We believe that Asaf Itzhaik, Shoshi Eizenberg Hertz, Ron Silberman, Liron Carmel and Avi Ben David are "independent" for purposes of the Nasdaq Stock Market rules. Our articles of association provide that the number of directors may be no less than 5 and no more than 15 (including external directors to the extent required to be appointed to the board of directors pursuant to the Companies Law, and independent directors). Each director, except external directors that may be required to be appointed under the Companies Law under certain circumstances, will hold office pursuant to the Companies Law, until the next annual general meeting of our shareholders following his or her appointment, or until he or she resigns or unless he or she is removed by a majority vote of our shareholders at a general meeting of our shareholders or upon the occurrence of certain events, in accordance with the Companies Law and our articles of association. Our directors may further be appointed by the board of directors and in this case shall hold office until the end of the immediately following annual general meeting or upon earlier termination in circumstanced referred to under the Companies Law or our and our articles of association. Our board of directors may exercise all powers and may take all actions that are not specifically granted to our shareholders or to management. Our executive officers are responsible for our day-to-day management. Our Chief Executive Officer is appointed by, and serves at the discretion of, our board of directors, subject to the employment agreement that we have entered into with him. All other executive officers are appointed by our Chief Executive Officer. Their terms of employment are subject to the approval of the compensation committee and of the board of directors, and are subject to the terms of any applicable employment agreements that we may enter into with them.

Each director, except external directors, will hold office until he or she resigns or unless he or she is removed by a majority vote of our shareholders at a general meeting of our shareholders or upon the occurrence of certain events, in accordance with the Companies Law and our articles of association.

In addition, under certain circumstances, our articles of association allow our board of directors to appoint directors to fill vacancies on our board of directors or in addition to the acting directors (subject to the limitation on the number of directors). The office of a director that was appointed by the board of directors to fill any vacancy shall only be for the remaining period of time during which the director whose service has ended would have held office. External directors may be elected for up to two additional three-year terms after their initial three-year term under the circumstances described below, with certain exceptions which allow to extend such period as described in "External Directors" below. External directors may be removed from office only under the limited circumstances set forth in the Companies Law. See "Item 6. C—Board Practices—External Directors" below.

According to regulations promulgated pursuant to the Companies Law and governing the terms of notice and publication of shareholder meetings of public companies, or the General Meeting Regulations, holder(s) of at least 1% of our voting rights may propose any matter appropriate for deliberation at a shareholder meeting to be included on the agenda of a shareholder meeting, unless such proposal refers to election or removal of a director, which requires such holder(s) to hold at least 5% of our voting rights, as set forth in the Alleviation Regulations. Such proposal may be submitted within seven days of publicizing the convening of a shareholder meeting, or within fourteen days, if we publish at least 21 days prior to publicizing the proxy materials for a shareholder meeting, a preliminary notice stating its intention to convene such meeting with all required information. Any such proposal must further comply with the information requirements under applicable law and our articles of association, and in the event that such shareholders propose to appoint directors for service on the Company's board of directors, the proposal must include information regarding the director candidates as well as certain declarations of the director candidates, as required pursuant to the General Meeting Regulations. The agenda for a shareholder meeting is determined by the board of directors and must include matters in respect of which the convening of a shareholder meeting was demanded and any matter requested to be included by holder(s) of the required voting rights, as detailed above.

Under the Companies Law, our board of directors must determine the minimum number of directors who are required to have accounting and financial expertise. In determining the number of directors required to have such expertise, our board of directors must consider, among other things, the type and size of the company and the scope and complexity of its operations. Our board of directors has determined that the minimum number of directors of our company who are required to have accounting and financial expertise is one.

The board of directors may elect one director to serve as the chairman of the board of directors to preside at the meetings of the board of directors, and may also remove that director as chairman. Pursuant to the Companies Law, neither the chief executive officer nor any of his or her relatives is permitted to serve as the chairman of the board of directors, and a company may not vest the chairman or any of his or her relatives with the chief executive officer's authorities. In addition, a person who reports, directly or indirectly, to the chief executive officer may not serve as the chairman of the board of directors; the chairman may not be vested with authorities of a person who reports, directly or indirectly, to the chief executive officer; and the chairman may not serve in any other position in the company or a controlled company, but he or she may serve as a director or chairman of a controlled company. However, the Companies Law permits a company's shareholders to determine, for a period not exceeding three years from each such determination, that the chairman or his or her relative may serve as chief executive officer or be vested with the chief executive officer's authorities, and that the chief executive officer or his or her relative may serve as chairman or be vested with the chairman's authorities. Such determination of a company's shareholders requires either: (1) the approval of at least a majority of the shares of those shareholders present and voting on the matter (other than controlling shareholders and those having a personal interest in the determination) (shares held by abstaining shareholders shall not be considered); or (2) that the total number of shares opposing such determination does not exceed 2% of the total voting power in the company. Currently, we have a separate chairman and chief executive officer.

The board of directors may, subject to the provisions of the Companies Law and our amended and restated articles of association, delegate any or all of its powers to committees of the board, and it may, from time to time, revoke such delegation or alter the composition of any such committees, subject to certain limitations. Unless otherwise expressly provided by the board of directors, the committees shall not be empowered to further delegate such powers. The composition and duties of our audit committee and compensation committee are described below.

The board of directors oversees how management monitors compliance with our risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by us. The board of directors is assisted in its oversight role by an internal auditor. The internal auditor undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to our board of directors.

***External Directors***

Under the Companies Law, an Israeli company whose shares have been offered to the public or whose shares are listed for trading on a stock exchange in or outside of Israel is generally required to appoint at least two external directors to serve on its board of directors. Accordance with the Alleviation Regulations, an Israeli public company with no controlling shareholder (within the meaning of the Companies Law), whose shares are listed on The Nasdaq Capital Market, may opt out from the requirement of electing and having external directors on its board of directors. External directors must meet stringent standards of independence. As of the date hereof, our external directors are Shoshi Eizenberg Hertz and Ron Silberman.

According to regulations promulgated under the Companies law, at least one of the external directors is required to have "financial and accounting expertise," unless another member of the audit committee, who is an independent director under the Nasdaq Stock Market rules, has "financial and accounting expertise," and the other external director or directors are required to have "professional expertise". An external director may not be appointed to an additional term unless: (1) such director has "accounting and financial expertise;" or (2) he or she has "professional expertise," and on the date of appointment for another term there is another external director who has "accounting and financial expertise" and the number of "accounting and financial experts" on the board of directors is at least equal to the minimum number determined appropriate by the board of directors. We have determined that has accounting and financial expertise.

A director with accounting and financial expertise is a director who, due to his or her education, experience and skills, possesses a high degree of proficiency in, and an understanding of, business - accounting matters and financial statements, such that he or she is able to understand the financial statements of the company in depth and initiate a discussion about the manner in which financial data is presented. A director is deemed to have "professional expertise" if he or she holds an academic degree in certain fields or has at least five years of experience in certain senior positions.

External directors are elected by a majority vote at a shareholders' meeting, so long as either:

● at least a majority of the shares held by shareholders who are not controlling shareholders and do not have personal interest in the appointment (excluding a personal interest that did not result from the shareholder's relationship with the controlling shareholder) have voted in favor of the proposal (shares held by abstaining shareholders shall not be considered); or

● the total number of shares voted against the election of the external director, does not exceed 2% of the aggregate voting rights of the company.

The Companies Law provides for an initial three-year term for an external director. Thereafter, an external director may be reelected by shareholders to serve in that capacity for up to two additional three-year terms, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) his
 or her service for each such additional term is recommended by one or more shareholders holding at least one percent of the company's
 voting rights and is approved at a shareholders meeting by a disinterested majority, where the total number of shares held by non-controlling,
 disinterested shareholders voting for such reelection exceeds two percent of the aggregate voting rights in the company and such
 external director is not an interested shareholder or a competitor or relative of such shareholder, at the time of appointment, and
 is not affiliated with or related to an interested shareholder or competitor, at the time of appointment or the two years prior to
 the date of appointment. An "Interested shareholder or a competitor" is a shareholder who recommended the appointment
 for each such additional term or a substantial shareholder, if at the time of appointment, it, its controlling shareholder or a company
 controlled by any of them, has business relations with the company or any of them are competitors of the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) his
 or her service for each such additional term is recommended by the board of directors and is approved at a shareholders meeting by
 the same disinterested majority required for the initial election of an external director (as described above); or

(3) the
 external director offered his or her service for each such additional term and was approved in accordance with the provisions of
 section (1) above.

Despite the aforesaid, the term of office for external directors for Israeli companies traded on certain foreign stock exchanges, including the Nasdaq Stock Market, may be extended indefinitely in increments of additional three-year terms, in each case provided that the audit committee and the board of directors of the company confirm that, in light of the external director's expertise and special contribution to the work of the board of directors and its committees, the reelection for such additional period(s) is beneficial to the company, and provided that the external director is reelected subject to the same shareholder vote requirements as if elected for the first time (as described above). Prior to the approval of the reelection of the external director at a general shareholders meeting, the company's shareholders must be informed of the term previously served by him or her and of the reasons why the board of directors and audit committee recommended the extension of his or her term.

External directors may be compensated only in accordance with regulations adopted under the Companies Law.

***Fiduciary Duties of Office Holders***

The Companies Law imposes a duty of care and a duty of loyalty on all office holders of a company.

The duty of care requires an office holder to act with the level of care with which a reasonable office holder in the same position would have acted under the same circumstances. The duty of care of an office holder includes a duty to use reasonable means to obtain:

● information on the advisability of a given action brought for his approval or performed by him by virtue of his position; and

● all other important information pertaining to these actions.

The duty of loyalty of an office holder requires an office holder to act in good faith and for the benefit of the company, and includes a duty to:

● refrain from any conflict of interest between the performance of his duties in the company and his performance of his other duties or personal affairs;

● refrain from any action that is competitive with the company's business;

● refrain from exploiting any business opportunity of the company to receive a personal gain for himself or others; and

● disclose to the company any information or documents relating to the company's affairs which the office holder has received due to his position as an office holder.

***Approval of Related Party Transactions under Israeli Law***

*General*

Under the Companies Law, we may approve an action by an office holder from which the office holder would otherwise have to refrain, as described above, if:

● the office holder acts in good faith and the act or its approval does not cause harm to the company; and

● the office holder disclosed the nature of his or her interest in the transaction (including any significant fact or document) to the company at a reasonable time before the company's approval of such matter.

*Disclosure of Personal Interests of an Office Holder*

The Companies Law requires that an office holder disclose to the company, promptly, and, in any event, not later than the board meeting at which the transaction is first discussed, any direct or indirect personal interest that he or she may have and all related material information known to him or her relating to any existing or proposed transaction by the company. If the transaction is an extraordinary transaction, the office holder must also disclose any personal interest held by:

● the office holder's relatives; or

● any corporation in which the office holder or his or her relatives holds 5% or more of the shares or voting rights, serves as a director or general manager or has the right to appoint at least one director or the general manager.

Under the Companies Law, an extraordinary transaction is a transaction:

● not in the ordinary course of business;

● not on market terms; or

● that is likely to have a material effect on the company's profitability, assets or liabilities.

The Companies Law does not specify to whom within us nor the manner in which required disclosures are to be made. We require our office holders to make such disclosures to our board of directors.

Under the Companies Law, once an office holder complies with the above disclosure requirement, the board of directors may approve a transaction between the company and an office holder, or a third party in which an office holder has a personal interest, unless the articles of association provide otherwise and provided that the transaction is in the company's interest. If the transaction is an extraordinary transaction in which an office holder has a personal interest, first the audit committee and then the board of directors, in that order, must approve the transaction. Under specific circumstances, shareholder approval may also be required. A director who has a personal interest in an extraordinary transaction, which is considered at a meeting of the board of directors or the audit committee, may not be present at this meeting or vote on this matter, unless a majority of the board of directors or the audit committee, as the case may be, has a personal interest. If a majority of the board of directors has a personal interest, then shareholder approval is generally also required.

Under the Companies Law, all arrangements as to compensation of office holders require approval of the compensation committee and board of directors, and compensation of office holders who are directors must be also approved, subject to certain exceptions, by the shareholders, in that order.

*Disclosure of Personal Interests of a Controlling Shareholder*

Under the Companies Law, the disclosure requirements that apply to an office holder also apply to a controlling shareholder of a public company. Extraordinary transactions with a controlling shareholder or in which a controlling shareholder has a personal interest, including a private placement in which a controlling shareholder has a personal interest, as well as transactions for the provision of services whether directly or indirectly by a controlling shareholder or his or her relative, or a company such controlling shareholder controls, and transactions concerning the terms of engagement of a controlling shareholder or a controlling shareholder's relative, whether as an office holder or an employee, require the approval of the audit committee or the compensation committee, as the case may be, the board of directors and a majority of the shares voted by the shareholders of the company participating and voting on the matter in a shareholders' meeting. In addition, the shareholder approval must fulfill one of the following requirements:

● at least a majority of the shares held by shareholders who have no personal interest in the transaction and are voting at the meeting must be voted in favor of approving the transaction, excluding abstentions; or

● the shares voted by shareholders who have no personal interest in the transaction who vote against the transaction represent no more than 2% of the voting rights in the company.

In addition, any extraordinary transaction with a controlling shareholder or in which a controlling shareholder has a personal interest with a term of more than three years requires the abovementioned approval every three years; however, such transactions not involving the receipt of services or compensation can be approved for a longer term, provided that the audit committee determines that such longer term is reasonable under the circumstances.

The Companies Law requires that every shareholder that participates, in person, by proxy or by voting instrument, in a vote regarding a transaction with a controlling shareholder, must indicate in advance or in the ballot whether or not that shareholder has a personal interest in the vote in question. Failure to so indicate will result in the invalidation of that shareholder's vote.

Pursuant to regulations promulgated under the Companies Law, certain transactions with a controlling shareholder or his or her relative, or with directors, that would otherwise require approval of a company's shareholders may be exempt from shareholder approval upon certain determinations of the audit committee or the compensation committee and board of directors.

The term "controlling shareholder" is defined in the Companies Law as a shareholder with the ability to direct the activities of the company, other than by virtue of being an office holder. A shareholder is presumed to be a controlling shareholder if the shareholder holds 50% or more of the voting rights in a company or has the right to appoint the majority of the directors of the company or its general manager. In the context of a transaction involving a shareholder of the company, a controlling shareholder also includes a shareholder who holds 25% or more of the voting rights in the company if no other shareholder holds more than 50% of the voting rights in the company. For this purpose, the holdings of all shareholders who have a personal interest in the same transaction will be aggregated.

***Duties of Shareholders***

Under the Companies Law, a shareholder has a duty to refrain from abusing its power in the company and to act in good faith and in an acceptable manner in exercising its rights and performing its obligations toward the company and other shareholders, including, among other things, voting at general meetings of shareholders (and at shareholder class meetings) on the following matters:

● amendment of the articles of association;

● increase in the company's authorized share capital;

● merger; and

● the approval of related party transactions and acts of office holders that require shareholder approval.

A shareholder also has a general duty to refrain from oppressing other shareholders.

The remedies generally available upon a breach of contract will also apply to a breach of the above mentioned duties, and in the event of oppression of other shareholders, additional remedies are available to the injured shareholder.

In addition, any controlling shareholder, any shareholder that knows that its vote can determine the outcome of a shareholder vote and any shareholder that, under a company's articles of association, has the power to appoint or prevent the appointment of an office holder, or has another power with respect to a company, is under a duty to act with fairness towards the company. The Companies Law does not describe the substance of this duty except to state that the remedies generally available upon a breach of contract will also apply in the event of a breach of the duty to act with fairness, taking the shareholder's position in the company into account.

**Committees of the Board of Directors**

Our board of directors has established two standing committees, the audit committee and the compensation committee.

***Audit Committee***

Under the Israeli Companies Law, we are required to appoint an audit committee. The audit committee must be comprised of at least three directors, including all of the external directors (one of whom must serve as chair of the committee) and the majority of its members shall be independent (as defined in the Companies Law). The audit committee may not include the chairman of the board; a controlling shareholder of the company or a relative of a controlling shareholder; a director employed by or providing services on a regular basis to the company, to a controlling shareholder or to an entity controlled by a controlling shareholder; or a director who derives most of his or her income from a controlling shareholder.

In addition, under the Israeli Companies Law, a majority of the members of the audit committee of a publicly-traded company must be independent directors.

In general, an "independent director" under the Israeli Companies Law is defined as either (i) an external director, or (ii) an individual who has not served as a director of the company for a period exceeding nine consecutive years and who meets the qualifications for being appointed as an external director, except that he or she need not meet the requirement being an Israeli resident (which does not apply to companies such as ours whose securities have been offered outside of Israel or are listed outside of Israel) and for accounting and financial expertise or professional qualifications. For these purposes, ceasing to serve as a director for a period of two years or less would not be deemed to sever the consecutive nature of such director's service. However, pursuant to the Alleviation Regulations, we may also classify directors who qualify as independent directors under the relevant non-Israeli rules, as 'independent directors' under the Companies Law. In addition, the Alleviation Regulations provide that 'independent directors' may be elected for additional terms that do not exceed three years each, beyond the 9 consecutive years, provided that, if the director is being re-elected for an additional term or terms beyond the 9 consecutive years, the audit committee and board of directors must determine that, in light of the director's expertise and special contribution to the board of directors and its committees, the re-election for an additional term is to the company's benefit and the director must be re-elected by the required majority of shareholders and subject to the terms specified in the Companies Law.

Our audit committee, acting pursuant to a written charter, is comprised of Shoshi Eizenberg Hertz, Ron Silberman and Asaf Itzhaik. Ron Silberman serves as the chairman of our audit committee.

Under the Companies Law, our audit committee is responsible for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) determining
 whether there are deficiencies in the business management practices of our company, and making recommendations to the board of directors
 to improve such practices;

(ii) determining
 whether to approve certain related party transactions (including transactions in which an office holder has a personal interest and
 whether such transaction is extraordinary or material under Companies Law) and establishing the approval process for certain transactions
 with a controlling shareholder or in which a controlling shareholder has a personal interest (see "Item 6 C.—Board Practices—Approval
 of Related Party Transactions under Israeli law");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) examining
 our internal controls and internal auditor's performance, including whether the internal auditor has sufficient resources and
 tools to dispose of its responsibilities;

(iv) examining
 the scope of our auditor's work and compensation and submitting a recommendation with respect thereto to our board of directors
 or shareholders, depending on which of them is considering the appointment of our auditor;

(v) establishing
 procedures for the handling of employees' complaints as to the management of our business and the protection to be provided
 to such employees; and

(vi) where
 the board of directors approves the working plan of the internal auditor, examining such working plan before its submission to the
 board of directors and proposing amendments thereto.

Our audit committee may not conduct any discussions or approve any actions requiring its approval (see "Item 6 C.—Board Practices—Approval of Related Party Transactions under Israeli law"), unless at the time of the approval a majority of the committee's members are present, which majority consists of independent directors including at least one external director.

***Nasdaq Stock Market Requirements for Audit Committee***

Under the Nasdaq Stock Market rules, we are required to maintain an audit committee consisting of at least three members, all of whom are independent and are financially literate and one of whom has accounting or related financial management expertise.

As noted above, the members of our audit committee include Asaf Itzhaik, Shoshi Eizenberg Hertz and Ron Silberman, each of whom is "independent," as such term is defined in under Nasdaq Stock Market rules. All members of our audit committee meet the requirements for financial literacy under the Nasdaq Stock Market rules. Our board of directors has determined that Ron Silberman is an audit committee financial expert as defined by the SEC rules and has the requisite financial experience as defined by the Nasdaq Stock Market rules.

 ****

***Compensation Committee***

Under the Companies Law, the board of directors of any public company must establish a compensation committee. The compensation committee must be comprised of at least three directors, including all of the external directors, who must constitute a majority of the members of the compensation committee (to the extent external director is required under the Companies Law and its regulations). Each compensation committee member that is not an external director must be a director whose compensation does not exceed an amount that may be paid to an external director. The compensation committee is subject to the same Companies Law restrictions as the audit committee as to (a) who may not be a member of the committee and (b) who may not be present during committee deliberations as described above.

Our compensation committee is acting pursuant to a written charter, and consists of Asaf Itzhaik, Shoshi Eizenberg Hertz and Ron Silberman, each of whom is "independent," as such term is defined under the Nasdaq Stock Market rules. Ron Silberman serves as the chairman of our compensation committee. Our compensation committee complies with the provisions of the Companies Law, the regulations promulgated thereunder, and our articles of association, on all aspects referring to its independence, authorities and practice. Our compensation committee follows home country practice as opposed to complying with the compensation committee membership and charter requirements prescribed under the Nasdaq Stock Market rules.

Our compensation committee inter-alia reviews and recommends to our board of directors: (1) the annual base compensation of our executive officers and directors; (2) annual incentive bonus, including the specific goals and amount; (3) equity compensation; (4) employment agreements, severance arrangements, and change in control agreements/provisions; (5) retirement grants and/or retirement bonuses; and (6) any other benefits, compensation, compensation policies or arrangements.

The duties of the compensation committee include the recommendation to the company's board of directors of a policy regarding the terms of engagement of office holders, to which we refer as a compensation policy. Such policy must be adopted by the company's board of directors, after considering the recommendations of the compensation committee. The compensation policy is then brought for approval by our shareholders, which requires a special majority. Under the Companies Law, the board of directors may adopt the compensation policy if it is not approved by the shareholders, provided that after the shareholders oppose the approval of such policy, and that the compensation committee and the board of directors revisit the matter and determine that adopting the compensation policy would be beneficial to the company. Our compensation policy was approved by our shareholders on May 28, 2025 and is valid until May 28, 2028.

The compensation policy must be reviewed from time to time by the board and must be re-approved or amended by the board of directors and generally by the shareholders at least once every three years. If the compensation policy is not approved by the shareholders, the compensation committee and the board of directors may nonetheless, approve the policy, following further discussion of the matter and for detailed reasons.

The compensation policy must serve as the basis for decisions concerning the financial terms of employment or engagement of executive officers and directors, including exculpation, insurance, indemnification or any monetary payment or obligation of payment in respect of employment or engagement. The compensation policy must relate to certain factors, including advancement of the company's objectives, the company's business and its long-term strategy, and creation of appropriate incentives for executives. It must also consider, among other things, the company's risk management, size and the nature of its operations. The compensation policy must furthermore consider the following additional factors:

● the education, skills, expertise and accomplishments of the relevant director or executive;

● the director's or executive's roles and responsibilities and prior compensation agreements with him or her;

● the relationship between the terms of service of an office holder and the cost of compensation of the other employees of the company, including those employed through manpower companies;

● the impact of disparities in salary upon work relationships in the company;

● the possibility of reducing variable compensation at the discretion of the board of directors; and the possibility of setting a limit on the exercise value of non-cash variable compensation; and

● as to severance compensation, the period of service of the director or executive, the terms of his or her compensation during such service period, the company's performance during that period of service, the person's contribution towards the company's achievement of its goals and the maximization of its profits, and the circumstances under which the person is leaving the company.

The compensation policy must also include the following principles:

● the link between variable compensation and long-term performance and measurable criteria;

● the relationship between variable and fixed compensation, and the ceiling for the value of variable compensation;

● the conditions under which a director or executive would be required to repay compensation paid to him or her if it was later shown that the data upon which such compensation was based was inaccurate and was required to be restated in the company's financial statements;

● the minimum holding or vesting period for variable, equity-based compensation; and

● maximum limits for severance compensation.

The compensation policy must also consider appropriate incentives from a long-term perspective.

The compensation committee is responsible for (1) recommending the compensation policy to a company's board of directors for its approval (and subsequent approval by the shareholders) and (2) duties related to the compensation policy and to the compensation of a company's office holders, including:

● recommending whether a compensation policy should continue in effect, if the then-current policy has a term of greater than three years (approval of either a new compensation policy or the continuation of an existing compensation policy must in any case occur every three years);

● recommending to the board of directors periodic updates to the compensation policy;

● assessing implementation of the compensation policy;

● determining whether the terms of compensation of certain office holders of the company need not be brought to approval of the shareholders; and

● determining whether to approve the terms of compensation of office holders that require the committee's approval.

***Compensation Policy***

 ****

Our compensation policy designed to promote retention and motivation of directors and executive officers, incentivize superior individual excellence, align the interests of our directors and executive officers with our long-term performance and provide a risk management tool. To that end, a portion of our executive officer compensation package is targeted to reflect our short- and long-term goals, as well as the executive officer's individual performance. On the other hand, our compensation policy includes measures designed to reduce the executive officer's incentives to take excessive risks.

Our compensation policy also addresses our executive officers' individual characteristics (such as their respective position, skills, education, scope of responsibilities and contribution to the attainment of our goals) as the basis for compensation variation among our executive officers and considers the internal ratios between compensation of our executive officers and directors and other employees. Pursuant to our compensation policy, the compensation that may be granted to an executive officer may include: base salary, annual bonuses and other cash bonuses, such as a signing bonus (which is subject to a claw back provision), special bonuses with respect to any special achievements, and IPO or stock exchange registration bonus. In addition, equity-based compensation, benefits and retirement and termination of service arrangements. All cash bonuses are limited to a maximum amount linked to the executive officer's base salary or his position. In addition, the variable compensation components (such as cash bonuses) may not exceed a multiple of the executive officer's total compensation package with respect to any given calendar year. Except for a special bonus, an IPO or stock exchange registration bonus, and a signing bonus, which may exceed the bonus cap for each officer position.

An annual cash bonus may be awarded to executive officers upon the attainment of pre-set periodic objectives and individual targets, along with non-material portion of discretionary evaluation. The measurable performance objectives of our current chief executive officer (which he also a director) will be determined annually by our compensation committee, the board of directors and the general meeting of the shareholders. A non-material portion of the chief executive officer's annual cash bonus, as provided in our compensation policy, may be based on a discretionary evaluation of the chief executive officer's overall performance by the compensation committee and the Board.

The equity-based compensation under our compensation policy for executive officers (including members of the Board) is designed to align their interests with the company's long-term objectives and those of its shareholders while supporting the retention and motivation of executive officers over time. The equity-based compensation framework is structured to complement the principles underlying base salary and annual cash bonuses, ensuring a balance between fixed and variable compensation components.

Our compensation policy provides for executive officer compensation through equity-based incentives, including share options, restricted share units (RSUs), performance share units (PSUs), phantom shares, and other equity-related awards, in accordance with the company's long-term equity incentive plan. All equity-based awards are subject to vesting periods, generally set at a minimum of three years, unless otherwise determined by the Compensation Committee and the Board of Directors, to promote long-term retention and sustained company growth. Equity-based compensation may be granted periodically and is individually determined based on the executive officer's performance, education, professional experience, qualifications, role, and scope of responsibilities.

Additionally, the annual value of equity-based compensation at the time of grant is subject to predefined caps based on the executive officer's position. These caps, as outlined in the company's compensation policy, are designed to ensure a balanced and responsible approach to equity incentives while maintaining alignment with the company's compensation structure and long-term strategic goals.

Furthermore, our compensation policy contains compensation recovery provisions which allow us under certain conditions to recover bonuses paid in excess, enables our chief executive officer to approve an immaterial change to the terms of employment of an executive officer who reports directly to him or her (provided that the changes of the terms of employment are in accordance with our compensation policy) and allows us to exculpate, indemnify and insure our executive officers and directors.

Our compensation policy also provides for compensation to the members of the Board in accordance with the amounts determined in our compensation policy.

Our compensation policy is filed as an exhibit to this registration statement.

 

***Internal Auditor***

Under the Companies Law, the board of directors of an Israeli public company must also appoint an internal auditor nominated by the audit committee. Our internal auditor is Dana Spira Blum. The role of the internal auditor is to examine, among other things, whether a company's actions comply with the law and proper business procedure. The audit committee is required to oversee the activities, and to assess the performance of the internal auditor as well as to review the internal auditor's work plan. An internal auditor may not be an interested party or office holder, or a relative of any interested party or office holder, and may not be a member of the company's independent accounting firm or its representative. The Companies Law defines an interested party as a holder of 5% or more of the outstanding shares or voting rights of a company, any person or entity that has the right to nominate or appoint at least one director or the general manager of the company or any person who serves as a director or as the general manager of a company. Our internal auditor is not our employee, but the managing partner of a firm which specializes in internal auditing.

***Remuneration of Directors and Executive Officers***

*Directors*. Under the Companies Law, remuneration of directors is subject to the approval of the compensation committee, thereafter by the board of directors and thereafter, unless exempted under the regulations promulgated under the Companies Law, by the general meeting of the shareholders. In case the remuneration of the directors is in accordance with regulations applicable to remuneration of the external directors then such remuneration shall be exempt from the approval of the general meeting. Where the director is also a controlling shareholder, the requirements for approval of transactions with controlling shareholders apply. If the compensation of our directors is inconsistent with our stated compensation policy, then, provided that those provisions that must be included in the compensation policy according to the Companies Law have been considered by the compensation committee and board of directors, shareholders approval by a special majority will be required.

*Executive officers other than the chief executive officer.* The Companies Law requires the approval of the compensation of a public company's executive officers (other than the chief executive officer) in the following order: (i) the compensation committee, (ii) the company's board of directors, and (iii) only if such compensation arrangement is inconsistent with the company's stated compensation policy, the company's shareholders by a special majority. However, if the shareholders of the company do not approve a compensation arrangement with an executive officer that is inconsistent with the company's stated compensation policy, the compensation committee and board of directors may override the shareholders' decision if each of the compensation committee and the board of directors provides detailed reasons for their decision.

*Chief executive officer.* Under the Companies Law, the compensation of a public company's chief executive officer is required to be approved by: (i) the company's compensation committee; (ii) the company's board of directors, and (iii) the company's shareholders by a special majority. However, if the shareholders of the company do not approve the compensation arrangement with the chief executive officer, the compensation committee and board of directors may override the shareholders' decision if each of the compensation committee and the board of directors provides detailed reasons for their decision. In addition, the compensation committee may exempt the engagement terms of a candidate to serve as the chief executive officer from shareholders' approval, if the compensation committee determines that the compensation arrangement is consistent with the company's stated compensation policy, that the chief executive officer did not have a prior business relationship with the company or a controlling shareholder of the company, and that subjecting the approval to a shareholders vote would impede the company's ability to attain the candidate to serve as the company's chief executive officer (and provide detailed reasons for the latter).

The approval of each of the compensation committee and the board of directors, with regard to the office holders and directors above, must be in accordance with the company's stated compensation policy; however, under special circumstances, the compensation committee and the board of directors may approve compensation terms of a chief executive officer that are inconsistent with the company's compensation policy provided that they have considered those provisions that must be included in the compensation policy according to the Companies Law and that shareholder approval was obtained by a special majority requirement.

***Insurance***

Under the Companies Law, a company may obtain insurance for any of its office holders against the following liabilities incurred due to acts he or she performed as an office holder, if and to the extent provided for in the company's articles of association:

● breach of his or her duty of care to the company or to another person, to the extent such a breach arises out of the negligent conduct of the office holder;

● a breach of his or her duty of loyalty to the company, provided that the office holder acted in good faith and had reasonable cause to assume that his or her act would not prejudice the company's interests; and

● a financial liability imposed upon him or her in favor of another person concerning an act performed by such office holder in his or her capacity as an officer holder.

We currently have directors' and officers' liability insurance, providing total coverage of $5,000,000 for the benefit of all of our directors and officers.

***Indemnification***

The Companies Law provides that a company may indemnify an office holder against the following liabilities and expenses incurred for acts performed by him or her as an office holder, either pursuant to an undertaking made in advance of an event or following an event, provided its articles of association include a provision authorizing such indemnification:

● a financial liability imposed on him or her in favor of another person by any judgment concerning an act performed in his or her capacity as an office holder, including a settlement or arbitrator's award approved by a court;

● reasonable litigation expenses, including attorneys' fees, expended by the office holder (a) as a result of an investigation or proceeding instituted against him or her by an authority authorized to conduct such investigation or proceeding, provided that (1) no indictment (as defined in the Companies Law) was filed against such office holder as a result of such investigation or proceeding; and (2) no financial liability as a substitute for the criminal proceeding (as defined in the Companies Law) was imposed upon him or her as a result of such investigation or proceeding, or, if such financial liability was imposed, it was imposed with respect to an offense that does not require proof of criminal intent; and (b) in connection with a monetary sanction

● reasonable litigation expenses, including attorneys' fees, expended by the office holder or imposed on him or her by a court,: (1) in proceedings that the company institutes, or that another person institutes on the company's behalf, against him or her; (2) in a criminal proceedings of which he or she was acquitted; or (3) as a result of a conviction for a crime that does not require proof of criminal intent.

Our articles of association allow us to indemnify our office holders up to a certain amount. The Companies Law also permits a company to undertake in advance to indemnify an office holder, provided that if such indemnification relates to financial liability imposed on him or her, as described above, then the undertaking should be limited and shall detail the following foreseen events and amount or criterion:

● to events that in the opinion of the board of directors can be foreseen based on the Company's activities at the time that the undertaking to indemnify is made; and

 in amount or criterion determined by the board of directors, to be reasonable under the circumstances.

We have entered into indemnification agreements with all of our directors and with certain members of our senior management.

The indemnification that we undertake towards all persons whom it resolved to indemnify for the matters and circumstances described therein, jointly and in the aggregate, do not exceed the amount equal to 25% of the Company's shareholders' equity at the time of the indemnification.

***Exculpation***

Under the Companies Law, an Israeli company may not exculpate an office holder from liability for a breach of his or her duty of loyalty, but may exculpate in advance an office holder from his or her liability to the company, in whole or in part, for damages caused to the company as a result of a breach of his or her duty of care (other than in relation to distributions), but only if a provision authorizing such exculpation is included in its articles of association. Our amended and restated articles of association provide that we may exculpate any office holder from liability to us to the fullest extent permitted by law. Under the indemnification agreements, we exculpate and release our office holders from any and all liability to us related to any breach by them of their duty of care to us to the fullest extent permitted by law.

***Limitations***

The Companies Law provides that we may not exculpate or indemnify an office holder nor enter into an insurance contract that would provide coverage for any liability incurred as a result of any of the following: (1) a breach by the office holder of his or her duty of loyalty unless (in the case of indemnity or insurance only, but not exculpation) the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice us; (2) a breach by the office holder of his or her duty of care if the breach was carried out intentionally or recklessly (as opposed to merely negligently); (3) any act or omission committed with the intent to derive an illegal personal benefit; or (4) any fine, monetary sanction, penalty or forfeit levied against the office holder.

Under the Companies Law, exculpation, indemnification and insurance of office holders in a public company must be approved by the compensation committee and the board of directors and, with respect to certain office holders or under certain circumstances, also by the shareholders.

The foregoing descriptions summarize the material aspects and practices of our board of directors. For additional details, we also refer you to the full text of the Companies Law, as well as of our amended and restated articles of association, which are exhibits to this registration statement and are incorporated herein by reference.

There are no service contracts between us and our directors in their capacity as directors, on the other hand, providing for benefits upon termination of service.

As of the date of this registration statement, we have no outstanding loan or guarantee commitments to members of the board of directors or management.

**D. Employees.**

As of the date of this registration statement, we have two senior management positions, which include our Chief Executive Officer and Chief Financial Officer, and we (either directly or through our subsidiaries) employ two full-time and part-time employees or consultants. Of these employees or consultants, Deliverz.ai employs a total of four full-time employees, of which three are dedicated to research and development efforts and the fourth is the Deliverz.ai chief executive officer, and two part-time consultants, which includes the Deliverz.ai chief financial officer and a U.S.-based business development specialist. None of our employees are members of a union or subject to the terms of a collective bargaining agreement. We believe that we maintain good relations with all of our employees. However, in Israel, we are subject to certain Israeli labor laws, regulations and national labor court precedent rulings, as well as certain provisions of collective bargaining agreements applicable to us by virtue of extension orders issued in accordance with relevant labor laws by the Israeli Ministry of Economy and which apply such agreement provisions to our employees even though they are not part of a union that has signed a collective bargaining agreement.

All of our employment and consulting agreements include employees' and consultants' undertakings with respect to non-competition, assignment to us of intellectual property rights developed in the course of employment, and confidentiality. The enforceability of such provisions is limited by Israeli law.

**E. Share Ownership.**

See "Item 7.A. Major Shareholders" below.

***Equity Incentive Plans***

 ****

We adopted the 2017 Equity Incentive Plan (the "2017 Plan"), on October 16, 2017. The 2017 Plan provides for the grant of equity-based incentive awards to our employees, directors, office holders, service providers and consultants in order to incentivize them to increase their efforts on behalf of the Company and to promote the success of the Company's business.

Shares Available for Grants. The maximum number ordinary shares (including ordinary shares resulting or issued as a result of share split, reverse share split, bonus shares, combination or other recapitalization events), or shares of such other class of shares as shall be designated by the board of directors of the Company in respect of the relevant award) available for issuance under the 2017 Plan is determined by our board of directors from time to time. Shares issued under the 2017 Plan may be, in whole or in part, authorized but unissued shares, (and, subject to obtaining a ruling as it applies to 102 awards) treasury shares (dormant shares) or otherwise shares that shall have been or may be repurchased by the Company (to the extent permitted pursuant to the Companies Law).

Any shares (a) underlying an award granted under the 2017 Plan that has expired, or was cancelled, terminated, forfeited, or settled in cash in lieu of issuance of shares, for any reason, without resulting in the issuance of shares; (b) if permitted by the Company, subject to an award that are tendered to pay the exercise price of an award; or withholding tax obligations with respect to an award; or, if permitted by the Company, subject to an award that are not delivered to a grantee because such shares are withheld to pay the exercise price of such award; or withholding tax obligations with respect to such award may again be available for issuance under the 2017 Plan and for issuance upon exercise or (if applicable) vesting thereof for the purposes of the 2017 Plan, unless determined otherwise by the our board of directors. Our board of directors may also reduce the number of ordinary shares reserved and available for issuance under the 2017 Plan in its discretion.

*Administration*. The 2017 Plan is administered by our board of directors (the "Administrator"), which has full discretion to determine participants, grant terms, vesting schedules, exercise or additional payment amounts, restrictions on transfer, acceleration of vesting, and to amend, suspend, or terminate the 2017 Plan.

*Eligibility*. Employees may receive awards in compliance with Section 102 of the Israeli Income Tax Ordinance (New Version) 5271-1961 (the "Ordinance") and Section 3(i) of the Ordinance. Grantees may receive grants of ordinary shares or options to purchase ordinary shares, with or without a trustee, under the Ordinance. Non-employees (consultants, service providers, controlling shareholders) may only receive options to purchase ordinary shares under Section 3(i) of the Ordinance.

Section 102 of the Ordinance allows employees, directors and officers who are not controlling shareholders and are considered Israeli residents to receive favorable tax treatment for compensation in the form of shares or options under certain terms and conditions. Any non-employee service providers and controlling shareholders who are considered Israeli residents may only be granted options under section 3(i) of the Ordinance, which does not provide for similar tax benefits. Section 102 includes two alternatives for tax treatment involving the issuance of options or shares to a trustee for the benefit of the grantees and also includes an additional alternative for the issuance of options or shares directly to the grantee. Section 102(b)(2) of the Ordinance, the most favorable tax treatment for the grantee, permits the issuance to a trustee under the "capital gain track".

*Grants.* All awards granted pursuant to the 2017 Plan will be evidenced by an award agreement, in a form approved, from time to time, by the Administrator in its sole discretion. The award agreement will set forth the terms and conditions of the award, including the type of award, number of shares subject to such award, vesting schedule and conditions (including performance goals or measures) and the exercise price, if applicable. Subject to the conditions of the 2017 Plan, the Administrator determines when awards vest and become exercisable and expire.

*Awards*. The 2017 Plan provides for the grant of share options, ordinary shares, restricted ordinary shares, restricted share units and other share-based awards. To the extent required by applicable law, the exercise price of an option may not be less than the par value of the shares (if the shares bear a par value) for which such option is exercisable.

*Exercise.* An award under the 2017 Plan may be exercised by providing the Company with a written or electronic notice of exercise and full payment of the exercise price for such shares underlying the award, if applicable, in such form and method as may be determined by the Administrator and permitted by applicable law. An award may not be exercised for a fraction of a share. With regard to tax withholding, exercise price and purchase price obligations arising in connection with awards under the 2017 Plan, the Administrator may, in its discretion, accept cash, provide for net withholding of shares in a cashless exercise mechanism or direct a securities broker to sell shares and deliver all or a part of the proceeds to the Company or the trustee. The exercise period of an award will be determined by the Administrator and stated in the award agreement, but will in no event be longer than ten (10) years from the date of grant of the award. Notwithstanding anything to the contrary, the Administrator may extend the periods for which awards held by any grantee may continue to vest and/or be exercisable; it being clarified that such awards may lose their entitlement to certain tax benefits under applicable law.

 

 

*Termination of Service*. In the event of termination of a grantee's employment or service with the Company or any of its affiliates without cause, the grantee retains only vested shares/options up to termination and unvested awards are forfeited. In the event of termination of a grantee's employment or service with the Company or any of its affiliates for cause, all awards, whether vested or unvested, shall be immediately and automatically forfeited in their entirety without any obligation of the Company to provide compensation or consideration to the grantee. In the event of death or disability, vested options may be exercised within 12 months by the grantee or heirs.

*Rights and Restrictions*. Shares (but not unexercised options) entitle holders to dividends, subject to the Company's articles of association and applicable tax law.

*Transferability*: Options and shares are generally non-transferable except by will or inheritance.

*Trustee Requirement*: Section 102 trustee awards must be held by a trustee for the statutory lock-up period. Early sale triggers tax penalties.

*Corporate Transactions and Adjustments*. If the Company undergoes a merger, acquisition, or reorganization where it is not the surviving entity, any outstanding options that have not yet been exercised will be replaced or converted into options of the acquiring company (or its parent/subsidiary). The conversion will reflect the exchange ratio of shares in the transaction, and the exercise price will be adjusted accordingly. Vesting schedules and other grant terms generally remain in effect, unless our board of directors decides otherwise. Our board of directors may decide that if the acquiring company does not assume or replace the options, then vesting of unvested options will accelerate. If the Company is voluntarily liquidated while options are still outstanding, grantees will be notified and given the option to exercise vested options. After this period, all unexercised options will immediately expire. In the event of a forward share split, reverse share split, share consolidation, or other capital restructuring, both the number of shares underlying the options and the exercise price will be adjusted proportionally. If the Company distributes bonus shares (share dividends), the number of shares issuable upon exercise will be increased accordingly, without changing the exercise price. If the Company distributes a cash dividend before the exercise of options, the exercise price will be reduced proportionally to reflect the dividend. If the Company issues rights offerings, option holders will be treated as if they had exercised their options prior to the record date, so they can participate in the rights offering on equal terms with shareholders. In all adjustments, fractional shares will not be issued. The number of shares will be rounded up to the nearest whole share.

*Duration*. The 2017 Plan became effective upon approval of our board of directors expires after 10 years.

*Governing Law*. Israeli law; exclusive jurisdiction in Tel Aviv courts.

*Tax Liability*. Grantees bear all tax obligations; Company and trustee may withhold taxes.

**F. Disclosure of a registrant's action to recover erroneously awarded compensation.**

Not applicable.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Shareholders**

The following table sets forth information with respect to the beneficial ownership of our ordinary shares as of the date of this registration statement by:

● each person or entity known by us to own beneficially 5% or more of our outstanding ordinary shares;

● each of our directors and executive officers individually; and

● all of our directors and executive officers as a group.

Beneficial ownership is determined in accordance with the rules of the SEC, and includes voting or investment power with respect to ordinary shares. The percentage of beneficial ownership for the following table is based on 2,492,351 ordinary shares outstanding as of June 18, 2026. Ordinary shares issuable under share options or warrants that are exercisable within 60 days after June 18, 2026 are deemed outstanding for the purpose of computing the percentage ownership of the person holding the options or warrants but are not deemed outstanding for the purpose of computing the percentage ownership of any other person.

Except as indicated in the footnotes to this table, we believe that the shareholders named in this table have sole voting and investment power with respect to all shares shown to be beneficially owned by them, based on information provided to us by such shareholders.

All of our shareholders, including the shareholders listed below, have the same voting rights attached to their ordinary shares, and neither our principal shareholders nor our directors and executive officers have different or special voting rights with respect to their ordinary shares. A description of any material relationship that our principal shareholders have had with us or any of our predecessors or affiliates within the past three years is included under "Certain Relationships and Related Party Transactions."

Unless otherwise noted below, the address of each shareholder, director and executive officer is 2 Jabotinsky St, Atrium Tower, 18th floor, Ramat Gan, Israel 5252903.

---

| | | |
|:---|:---|:---|
| **Name of beneficial owner** | **Ordinary shares<br> beneficially owned** | **Percentage <br> owned** |
| **5% or Greater Shareholders** |  |  |
| L.I.A Pure Capital Ltd. (1) | 242048 | 9.71% |
| Victor Tshuva (2) | 175271 | 6.87% |
| Roni Menashe (3) | 208394 | 8.13% |
| Amit Birk (4) | 227272 | 8.72% |
| Nissim Daniel (5) | 220320 | 8.12% |
| Capitalink Ltd. (6) | 280278 | 10.85% |
| Starmet Ventures Inc (7) | 363636 | 13.60% |
| **Directors and Executive Officers** |  |  |
| Eliyahu Yoresh (8) | 22136 | \*% |
| Amir Nardimon (9) | 86479 | 3.47% |
| Amihay Hadad (10) | 24415 | \*% |
| Liron Carmel (11) | 3333 | \*% |
| Avi Ben David (12) | 57635 | 2.31% |
| Asaf Itzhaik (13) | 51333 | 2.02% |
| Shoshi Eizenberg Hertz (14) | 3333 | \*% |
| Ron Silberman (15) | 3333 | \*% |
| **All directors and executive officers as a group 8 persons)** | 248666 | 9.93% |

---

\* Indicates beneficial ownership of less than 1% of the total ordinary shares outstanding.

(1) Consists of 242,048 ordinary shares held by Xylo Technologies Ltd. ("Xylo"). Xylo is a wholly-owned subsidiary of L.I.A. Pure Capital Ltd. Kfir Silberman is the officer, sole director, chairman of the board of directors and controlling shareholder of L.I.A. Pure Capital Ltd., and its address is 20 Raoul Wallenberg Street, Tel Aviv, Israel 6971916.

(2) Consists of (i) 115,271 ordinary shares issued in connection with the Securities Exchange Agreement and (ii) 60,000 ordinary shares issuable upon the exercise of warrants issued in connection with the July 2025 Credit Facility. Does not include up to an additional 119,462 ordinary shares for no additional consideration upon the achievement of certain pre-determined milestones as set forth in the Securities Exchange Agreement

(3) Consists
 of (i) 45,000 ordinary shares, (ii) 91,754 ordinary shares issued in connection with the Securities Exchange Agreement and
 (iii) 71,640 ordinary shares issuable upon the exercise of warrants issued in connection with the July 2025 Credit Facility. Roni
 Menashe is the control person of M.R.M. Merhavit Holdings and Management Ltd. and may be deemed to be the beneficial owner of all
 the reported shares. The address of M.R.M. Merhavit Holdings and Management Ltd. is 31 Sokolov Street, Ramat Gan, Israel. Does not
 include up to an additional 28,297 ordinary shares for no additional consideration upon the achievement of certain pre-determined
 milestones as set forth in the Securities Exchange Agreement

(4) Consists
 of (i) 113,636 ordinary shares and (ii) 113,636 ordinary shares issuable upon the exercise of warrants issued in connection with
 the July 2025 Credit Facility

(5) Consists
 of 220,320 ordinary shares issuable upon the exercise of warrants issued in connection with the July 2025 Credit Facility. Nissim
 Daniel's address is 5 Harav Levin Street, Ramat Gan, Israel 5226039.

(6) Consists
 of (i) 103,799 ordinary shares, (ii) 86,479 ordinary shares issued in connection with the Securities Exchange Agreement and
 (iii) 90,000 ordinary shares issuable upon the exercise of warrants issued in connection with the July 2025 Credit Facility.
 Does not include up to an additional 89,624 ordinary shares for no additional consideration upon the achievement of certain
 pre-determined milestones as set forth in the Securities Exchange Agreement. Lavi Krasney is the officer, sole director, chairman
 of the board of directors and controlling shareholder of Capitalink, and its address is 20 Raoul Wallenberg Street, Tel Aviv, Israel
 6971916.

(7) Consists
 of (i) 181,818 ordinary shares issued in connection with May 2026 PIPE and (ii) 181,818 ordinary shares issuable
 upon the exercise of warrants issued in connection with the May 2026 PIPE. The address of Starmet Ventures Inc. is 3292 Production
 Way, Suite 501, Burnaby, BC V5A 4R4, Canada. Starmet Ventures Inc. is a publicly traded company. To the best of our knowledge, Starmet
 Ventures Inc. does not have any controlling shareholders. The chief executive officer of Starmet Ventures Inc. is Ohad David.

(8) Consists
 of (i) 12,116 ordinary shares and (ii) 10,020 ordinary shares issuable upon the exercise of warrants issued in connection
 with the July 2025 Credit Facility.

(9) Consists
 of (i) 86,479 ordinary shares issued in connection with the Securities Exchange Agreement. Does not include up to an additional 89,634
 ordinary shares for no additional consideration upon the achievement of certain pre-determined milestones as set forth in the Securities
 Exchange Agreement and 44,608 ordinary shares that were granted on September 2, 2025 and have not vested.

(10) Consists
 of (i) 11,082 ordinary shares and (ii) 13,333 options to purchase 13,333 ordinary shares granted under the Company's Option
 Plan.

(11) Consists
 of 3,333 options to purchase 3,333 ordinary shares granted under the Company's Option Plan.

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Consists
 of 57,635 ordinary shares issued in connection with the Securities Exchange Agreement. Does not include up to an additional 59,731
 ordinary shares for no additional consideration upon the achievement of certain pre-determined milestones as set forth in the Securities
 Exchange Agreement

(13) Consists
 of (i) 3,333 options to purchase 3,333 ordinary shares granted under the Company's Option Plan and (ii) ordinary shares issued
 in connection with the Securities Exchange Agreement and (ii) 48,000 ordinary shares issuable upon the exercise of warrants issued
 in connection with the July 2025 Credit Facility.

(14) Consists
 of 3,333 options to purchase 3,333 ordinary shares granted under the Company's Option Plan.

(15) Consists
 of 3,333 options to purchase 3,333 ordinary shares granted under the Company's Option Plan.

 ****

***Changes in Ownership of Major Shareholders***

To our knowledge, other than as disclosed in this registration statement, there has been no significant change in the percentage ownership held by any major shareholder since January 1, 2022. The major shareholders listed above do not have voting rights with respect to their ordinary shares that are different from the voting rights of other holders of our ordinary shares.

**B. Related Party Transactions**

The following is a description of the material terms of those transactions with related parties to which we are party since January 1, 2023.

**Agreements with Directors and Officers**

***Employment Agreements***

We have entered into written employment agreements with each of our executive officers. See "Item 6.B — Compensation — Agreements with Executive Officers."

***Options***

Since our inception, we have granted our executive officers and certain of our directors options to purchase our ordinary shares. See "Item 6.E — Share Ownership — Equity Incentive Plans."

***Exculpation, Indemnification and Insurance***

Our articles of association permit us to exculpate, indemnify and insure our office holders to the fullest extent permitted by the Companies Law. We have entered into agreements with each of our directors and executive officers, exculpating them in advance from a breach of their duty of care to the fullest extent permitted by law and undertaking to indemnify them to the fullest extent permitted by law, to the extent that these liabilities are not covered by insurance. See "Item 6.C — Board Practices."

***Deliverz.ai Acquisition***

 ****

On January 5, 2025, we entered into the Securities Exchange Agreement with Deliverz.ai, a company organized under the laws of the State of Israel, and all of the shareholders of Deliverz.ai (the "Deliverz.ai Shareholders") pursuant to which we issued to the Deliverz.ai Shareholders an aggregate of 25% of our issued and outstanding capital stock on a pro rata and post-closing basis, equal to 518,770 of our ordinary shares in exchange for 100% of Deliverz.ai's issued and outstanding share capital on a fully diluted and post-closing basis, equal to 1,000,000 Deliverz.ai ordinary shares. In addition, we also issued 103,754 of our ordinary shares, representing 5% of our issued and outstanding capital stock on post-closing basis, as a finder's fee to the finder that introduced us to Deliverz.ai. The transactions contemplated by the Securities Exchange Agreement closed on July 10, 2025 subject to the satisfaction of customary closing conditions, which resulted in Deliverz.ai becoming a wholly-owned subsidiary of the Company. Pursuant to the Securities Exchange Agreement, we may issue to Deliverz.ai Shareholders up to an additional 537,634 ordinary shares upon the achievement of certain milestones as follows: (i) 236,559 ordinary shares will be issued if Deliverz.ai shall successfully complete a transaction for the supply of 20 robots within 18 months of the closing date of the Deliverz.ai acquisition and (ii) 301,075 ordinary shares will be issued if Deliverz.ai shall successfully complete a transaction for the supply of 200 robots within 48 months of the closing date of the Deliverz.ai acquisition.

In addition, pursuant to the Securities Exchange Agreement, we agreed to provide Deliverz.ai an interest-free loan in the amount of NIS 900,000 (approximately $273,000), of which Deliverz.ai received a portion of the loan amount equal to NIS 250,000 (approximately $76,000) from L.I.A. Pure Capital Ltd. ("Pure Capital") as of the execution date of the Securities Exchange Agreement, with the remaining loan balance subject to the execution of a loan agreement between the parties. For additional information, see "Item 5. Operating and Financial Review and Prospects – Recent Financings – June 2025 Credit Facility."

 ****

*May 2026 Private Placement*

On May 19, 2026, we closed the May 2026 PIPE. The brother of Mr. Avi Ben David, a member of our board of directors, is the controlling shareholder of one the investors in the May 2026 PIPE that purchase 15,000 ordinary shares and 15,000 warrants. In addition, Mr. Eli Yoresh, our chairman of the board of directors, is a minority investor in one of the investors in the May 2026 PIPE that purchased 181,818 ordinary shares and 181,818 warrants. For additional information, see "Item 5. Operating and Financial Review and Prospects – Recent Financings – May 2026 Private Placement."

 **

***Agreements with Former Chief Executive Officer***

 **

On August 12, 2025, the Company's shareholders approved the conversion of an amount of NIS 190 thousand (approximately $60 thousand) from a debt owed to Mr. Amitay Weiss, the Company's former chief executive officer, into a debt under the terms of the credit facility entered into between the Company and a number of lenders in June 2025, as well as the issuance of warrants to purchase 10,020 shares in connection with the credit facility.

In September 2022, our board of directors approved that Mr. Weiss shall be entitled to a grant of the Company's securities in connection with a business combination transaction, which shall be paid upon completion of such transaction (or immediately prior thereto, subject to the completion of the transaction), by way of an allocation of Company shares at a rate of 0.75% of the Company's total issued outstanding share capital on a fully diluted basis, immediately prior to the completion of such transaction. In July 2025, following the Company's acquisition of Deliverz.ai, Mr. Weiss was granted 11,144 ordinary shares of the Company.

 ****

***July 2025 Credit Facility***

In July 2025, we entered into the July 2025 Credit Facility for a NIS 12 million (approximately $3.3 million) with certain lenders pursuant to which we also issued warrants to the lenders. Two members of our board of directors, Eliyahu Yoresh and Asaf Itzahik and our former chief executive officer, Amitay Weiss, are lenders under the July 2025 Credit Facility. For additional information, see "Item 5. Operating and Financial Review and Prospects – Recent Financing – July 2025 Credit Facility."

 ****

***June 2025 Credit Facility***

 

On June 25, 2025, we entered into a loan agreement with Pure Capital pursuant to which Pure Capital provided a loan to Deliverz.ai in the amount of NIS 1,452,000 (approximately $400,000) in order for Deliverz.ai to finance its ongoing operations following the closing of the Deliverz.ai acquisition. The loan will bear annual interest at a rate of 6%, and the principal will be repaid in 12 equal monthly installments starting from the closing date of the Deliverz.ai acquisition. For additional information, see "Item 5. Operating and Financial Review and Prospects – Recent Transactions – June 2025 Credit Facility."

***Xylo Loan Agreement***

On October 12, 2021, we entered into loan agreement with Xylo Technologies Ltd. ("Xylo"), pursuant to which Xylo agreed to extend us a loan in the amount of approximately NIS 4 million ($1.1 million) (the "Xylo Loan"). In August 31, 2025, the Xylo Loan was amended such that the repayment date was extended to June 30, 2026. As of the date hereof, the outstanding balance of the Xylo Loan is NIS 2,975 thousand (approximately $816 thousand). For additional information, see "Item 5. Operating and Financial Review and Prospects – Recent Transactions – Xylo Loan Agreement."

 **

***2022 Loan Agreements***

 **

On February 13, 2022, the Company and Quantum X Labs entered into a loan agreement, according to which, the Company extended to Quantum X Labs a Loan (the "First Loan Agreement") and as of November 20, 2022, the outstanding amount due under the First Loan Agreement was approximately $2.5 million (the "First Loan Amount").

On March 22, 2020, the Company and Gix Media Ltd. ("Gix Media") entered into a loan agreement, according to which Gix Media extended the Company a loan (the "Second Loan Agreement" and together with the First Loan Agreement, the "Loan Agreements") and as of November 20, 2022, the outstanding amount due under the Second Loan Agreement was approximately $7.1 million (the "Second Loan Amount").

On November 20, 2022, the Company, Quantum X Labs and Gix Media agreed to restructure the Loan Agreements, such that Quantum X Labs repaid the First Loan Amount to the Company, by offsetting its amount from the Second Loan Amount owed by us to Gix Media. As a result, the outstanding amount due under the Second Loan Agreement was reduced to approximately $4.6 million and as of the date of this registration statement, the Company no further obligations under the First Loan Agreement. As of December 31, 2025, the outstanding amount due under the Second Loan Amount was approximately $4 million.

Additionally, on November 20, 2022, the Second Loan Agreement was amended to reflect the conversion of the currency of the Second Loan Amount (including any interest accrued thereunder) from NIS to USD, effective as of July 1, 2022.

On March 21, 2024, the Company's board of directors approved to extend the Second Loan Agreement until July 1, 2024 and on July 20, 2025, the Company's board of directors approved an addition extension until September 1, 2025.

On April 10, 2025, the board of directors of Quantum X Labs. approved the settlement of the existing intercompany loan between the Company and Gix Media. Following this, the Company and Gix Media entered into a loan settlement agreement (the "Intercompany Loan Agreement"), which became effective on May 27, 2025. Pursuant to the Intercompany Loan Agreement, the Company's loan to Gix Media was settled in exchange for the transfer of all of the Company's intangible assets to Gix Media, including, but not limited to, intellectual property rights, trademarks, software, algorithms, domains, technological know-how, and any other intangible asset.

 **

***Reorganization Transaction with Gix Media Ltd.***

 **

On December 5, 2021, Quantum X Labs entered into a certain Agreement and Plan of Merger with Gix Media Ltd. ("Gix Media"), an Israeli company and the majority-owned (77.92%) subsidiary of the Company, and Vmedia Merger Sub Ltd., an Israeli company and wholly-owned subsidiary of Quantum X Labs ("Merger Sub"), pursuant to which, Merger Sub merged with and into Gix Media, with Gix Media being the surviving entity and a wholly-owned subsidiary of Quantum X Labs (the "Reorganization Transaction").

On September 19, 2022, the Reorganization Transaction was consummated and as a result, all outstanding ordinary shares of Gix Media, having no par value (the "Gix Media Shares") were delivered to Quantum X Labs in exchange for the Quantum X Labs's shares of common stock. As a result of the Reorganization Transaction, the former holders of Gix Media Shares, who previously held approximately 68% of Quantum X Labs's common stock, held approximately 97% of the Quantum X Labs's common stock, and Gix Media became a wholly owned subsidiary of Quantum X Labs.

 ****

 ****

**C. Interests of Experts and Counsel**

Not applicable.

**ITEM 8. FINANCIAL INFORMATION.**

**A. Consolidated Statements and Other Financial Information.**

See "Item 18. Financial Statements."

**Legal Proceedings**

We are not currently subject to any material legal proceedings.

**Dividend Policy**

We have never declared or paid any cash dividends to our shareholders, and we do not anticipate or intend to pay cash dividends in the foreseeable future. Payment of cash dividends, if any, in the future will be at the discretion of our board of directors in compliance with applicable legal requirements and will depend on a number of factors, including future earnings, our financial condition, operating results, contractual restrictions, capital requirements, business prospects, our strategic goals and plans to expand our business, applicable law and other factors that our board of directors may deem relevant.

The Companies Law imposes further restrictions on our ability to declare and pay dividends.

**B. Significant Changes**

Other than as otherwise described in this registration statement and as set forth below, no significant change has occurred in our operations since the date of our financial statements included in this registration statement.

**ITEM 9. THE OFFER AND LISTING**

**A. Offer and Listing Details**

Our ordinary shares have been traded on the TASE since February 25, 1994 under the symbol "GIX".

**B. Plan of Distribution**

Not applicable.

**C. Markets**

Our ordinary shares have been traded on the TASE since June 2020 under the symbol "GIX". We are filing this registration statement in anticipation of the listing of our ordinary shares on the Nasdaq Capital Market.

**D. Selling Shareholders**

Not applicable.

**E. Dilution**

Not applicable.

**F. Expenses of the Issue**

Not applicable.

**ITEM 10. ADDITIONAL INFORMATION**

**A. Share Capital**

The following descriptions of share capital are summaries and are qualified by reference to our articles of association, a copy of which is filed with the SEC as an exhibit to this registration statement.

As of June 18, 2026, our authorized share capital consisted of 100,000,000 ordinary shares, having no par value per share, of which 2,075,079 shares were issued and outstanding as of such date. All of our outstanding ordinary shares have been validly issued, fully paid and non-assessable. Our ordinary shares are not redeemable and are not subject to any preemptive right.

Upon the effectiveness of this registration statement, our ordinary shares are anticipated to be listed for trading on Nasdaq and will continue to trade on the TASE.

Since January 1, 2022, our share capital has changed as follows:

● On January 5, 2025, we entered into the Securities Exchange Agreement Deliverz.ai and all of the Deliverz.ai Shareholders pursuant to which we issued to the Deliverz.ai Shareholders an aggregate of 25% of our issued and outstanding capital stock on a pro rata and post-closing basis, equal to 518,770 of our ordinary shares in exchange for 100% of Deliverz.ai's issued and outstanding share capital on a fully diluted and post-closing basis, equal to 1,000,000 Deliverz.ai ordinary shares. In addition, we also issued 103,754 of our ordinary shares, representing 5% of our issued and outstanding capital stock on post-closing basis, as a finder's fee to the finder that introduced us to Deliverz.ai. The transactions contemplated by the Securities Exchange Agreement closed on July 10, 2025, subject to the satisfaction of customary closing conditions, which resulted in Deliverz.ai becoming a wholly-owned subsidiary of the Company. On August 7, 2025, we issued an aggregate of a 22,288 ordinary shares in equal parts to the chairman of our board of directors and our chief executive officer as a special grant in connection with the completion of the Deliverz.ai transaction. Pursuant to the Securities Exchange Agreement, we may issue to Deliverz.ai Shareholders up to an additional 537,634 ordinary shares upon the achievement of certain milestones.

● On January 6, 2026, our board of directors approved the grant of options to purchase an aggregate of 62,253 of our ordinary shares to five of Deliverz.ai's employees. The options shall be issued under the following terms: (a) one quarter (1/4) of the options shall vest upon completion of 12 months from the grant date, and the remaining three quarters (3/4) shall vest over the subsequent 36 months in equal quarterly instalments; (b) the exercise price per option shall be NIS 19.50 (USD 5.30); and (c) the options may be exercised within a maximum period of four years from their respective vesting dates.

● On April 14, 2026, our board of directors approved the grant of options to purchase an aggregate of 15,564 of our ordinary shares to three of Deliverz.ai's employees. The options shall be issued under the following terms: (a) one quarter (1/4) of the options shall vest upon completion of 12 months from the grant date, and the remaining three quarters (3/4) shall vest over the subsequent 36 months in equal quarterly instalments; (b) the exercise price per option shall be NIS 19.50 (USD 5.30); and (c) the options may be exercised within a maximum period of four years from their respective vesting dates.

● On September 2, 2025, we issued options to purchase 44,608 of our ordinary shares to Deliverz.ai's CEO. The options were issued as part of the Deliverz.ai transaction under the following terms: (a) the vesting period of the options is four years, with vesting in 16 equal quarterly instalments (b) the exercise price per option is NIS 19.50 ($5.30); and (c) the options may be exercised within a maximum period of four years from their respective vesting dates.

● On December 23, 2023, we issued 86,667 ordinary shares to Xylo Technologies Ltd. as part of a private placement for aggregate gross proceeds of $356,000.

● During December 2023, options to purchase ordinary shares were exercised into an aggregate of 226 ordinary shares for aggregate gross proceeds of $4,700.

● On September 14, 2022, we issued an aggregate of 5,181 ordinary shares and 8,683 ordinary shares to the Company's former chief executive offcer and former chairman of our board of directors, respectively, as a special grant in connection with the Cortex share acquisition transaction.

● On June 19, 2022, we issued 115,027 ordinary shares as part of a rights offering for aggregate net proceeds of $1,531,000.

Our board of directors may determine the issue prices and terms for such shares or other securities, and may further determine any other provision relating to such issue of shares or securities. We may also issue and redeem redeemable securities on such terms and in such manner as our board of directors shall determine.

As of June 18, 2026 we had two holders of record of our ordinary shares (the TASE nominee company and Israel Land Development Media Ltd).

For further information on our shares, see "Item 10.B. Articles of Association".

**B. Articles of Association**

Our registration number with the Israeli Registrar of Companies is 520040262.

***Purposes and Objects of the Company***

Our purpose is set forth in Section of our articles of association to be in effect upon the effectiveness of the listing of our ordinary shares on Nasdaq and includes every lawful purpose.

***The Powers of the Directors***

Our board of directors shall direct our policy and shall supervise the performance of our chief executive officer and his actions. Our board of directors may exercise all powers that are not required under the Companies Law or under our amended and restated articles of association to be exercised or taken by our shareholders.

***Rights Attached to Shares***

Our ordinary shares shall confer upon the holders thereof:

● equal right to attend and to vote at all of our general meetings, whether regular or special, with each ordinary share entitling the holder thereof, which attend the meeting and participate at the voting, either in person electronically or by a proxy or by a written ballot, to one vote;

● equal right to participate in distribution of dividends, if any, whether payable in cash or in bonus shares, in distribution of assets or in any other distribution, on a per share pro rata basis; and

● equal right to participate, upon our dissolution, in the distribution of our assets legally available for distribution, on a per share pro rata basis.

***Election of Directors***

Pursuant to our amended and restated articles of association, our directors will be elected at an annual general meeting and/or a special meeting of our shareholders and serve on the board of directors until the next annual general meeting (except for external directors) or until they resign or until they cease to act as board members pursuant to the provisions of our amended and restated articles of association or any applicable law, upon the earlier. Pursuant to our amended and restated articles of association, other than the external directors, for whom special election requirements apply under the Companies Law, the vote that will be required to appoint a director is a simple majority vote of holders of our voting shares, participating and voting at the relevant meeting. In addition, as detailed hereinabove (See – "Board Practices"), our Board of Directors is allowed to appoint directors to fill vacancies and/or as an addition to the Board of Directors (subject to the maximum number of directors) to serve according to the duration of office of the director whom he replaces. External directors will be elected for an initial term of three years, may be elected for two additional terms of three years each under certain circumstances, and may be removed from office pursuant to the terms of the Companies Law. See "Management—Board Practices—External Directors."

***Annual and Special Meetings***

Under the Companies Law, we are required to hold an annual general meeting of our shareholders once every calendar year, at such time and place which shall be determined by our board of directors that must be no later than 15 months after the date of the previous annual general meeting. All meetings other than the annual general meeting of shareholders are referred to as special general meetings. Our board of directors may call special meetings whenever it sees fit and upon the written request of: (a) any two of our directors or such number of directors equal to one quarter of the members of our board of directors; and/or (b) one or more shareholders holding, in the aggregate, either (i) 5% or more of our outstanding voting power or (ii) 5% or more of our outstanding issued shares and 1% of our outstanding voting power.

Despite the aforesaid, in accordance with the Alleviation Regulations, in foreign-traded Israeli company, the threshold for a shareholder who may demand that a general meeting be convened was increased from at least 5% of the share capital and 1% of the voting rights in the company, or 5% of the voting rights in the company to at least 10% of the share capital and 1% of the voting rights in the company, or 10% of the voting rights in the company (provided that where the foreign law sets a threshold which is lower than 10% the original threshold under the Israeli Companies Law shall apply as detailed in the paragraph above.

Resolutions regarding the following matters must be passed at a general meeting of our shareholders:

● amendments to our amended and restated articles of association;

● appointment or termination of our auditors;

● appointment of directors, including external directors;

● approval of acts and transactions requiring general meeting approval pursuant to the provisions of the Companies Law and any other applicable law;

● increases or reductions of our authorized share capital; and

● a merger (as such term is defined in the Companies Law).

***Notices***

The Companies Law requires that a notice of any annual or special shareholders meeting be provided at least 21 days prior to the meeting, and if the agenda of the meeting includes, among other matters, the appointment or removal of directors, the approval of transactions with office holders or interested or related parties, or an approval of a merger, notice must be provided at least 35 days prior to the meeting.

***Quorum***

As permitted under the Companies Law, under our articles of association to be in effect upon the effectiveness of the listing of our ordinary shares on Nasdaq, the quorum required for our general meetings consists of at least two shareholders present in person, by proxy or written ballot, who hold or represent between them at least 25% of the total outstanding voting rights. If no quorum is present at the meeting within 30 minutes of the scheduled meeting start time, the meeting will be postponed by seven days, at the same time and place, without it being necessary to notify the shareholders of this, and subject to the Companies Law and any applicable law, or to a later date, if such a later date has been stated in the notice of the meeting, or to another day, time, and place, as the board of directors determines in a notice to the shareholders. If no quorum is present within half an hour of the time arranged, any number of shareholders participating in the meeting, shall constitute a quorum.

***Adoption of Resolutions***

Our articles of association provide that all resolutions of our shareholders require a simple majority vote, unless otherwise required under the Companies Law or our amended and restated articles of association. A shareholder may vote in a general meeting in person, by proxy or by a written ballot.

***Changing Rights Attached to Shares***

Unless otherwise provided by the terms of the shares and subject to any applicable law, in order to change the rights attached to any class of shares, such change must be adopted by the board of directors and at a general meeting of the affected class or by a written consent of all the shareholders of the affected class.

The enlargement of an existing class of shares or the issuance of additional shares thereof, shall not be deemed to modify the rights attached to the previously issued shares of such class or of any other class, unless otherwise provided by the terms of the shares.

***Provisions Restricting Change in Control of Our Company***

There are no specific provisions of our articles of association that would have an effect of delaying, deferring or preventing a change in control of the Company or that would operate only with respect to a merger, acquisition or corporate restructuring involving us. However, as described below, certain provisions of the Companies Law may have such effect.

The Companies Law includes provisions that allow a merger transaction and requires that each company that is a party to the merger have the transaction approved by its board of directors and, unless certain requirements described under the Companies Law are met, a vote of the majority of shareholders, and, in the case of the target company, also a majority vote of each class of its shares. For purposes of the shareholder vote of each party, unless a court rules otherwise, the merger will not be deemed approved if shares representing a majority of the voting power present at the shareholders meeting and which are not held by the other party to the merger (or by any person or group of persons acting in concert who holds 25% or more of the voting power or the right to appoint 25% or more of the directors of the other party) vote against the merger. If, however, the merger involves a merger with a company's own controlling shareholder or if the controlling shareholder has a personal interest in the merger, then the merger is instead subject to the same special majority requirement that governs all extraordinary transactions with controlling shareholders. Upon the request of a creditor of either party to the proposed merger, the court may delay or prevent the merger if it concludes that there exists a reasonable concern that as a result of the merger the surviving company will be unable to satisfy the obligations of any of the parties to the merger, and may further give instructions to secure the rights of creditors. In addition, a merger may not be completed unless at least (1) 50 days have passed from the time that the requisite proposals for approval of the merger were filed with the Israeli Registrar of Companies by each merging company and (2) 30 days have passed since the merger was approved by the shareholders of each merging company.

The Companies Law also provides that an acquisition of shares in an Israeli public company must be made by means of a "special" tender offer if as a result of the acquisition (1) the purchaser would become a holder of 25% or more of the voting rights in the company, unless there is already another holder of at least 25% or more of the voting rights in the company or (2) the purchaser would become a holder of more than 45% of the voting rights in the company, unless there is already a holder of more than 45% of the voting rights in the company. These requirements do not apply if, in general, the acquisition (1) was made in a private placement that received shareholders' approval, subject to certain conditions, (2) was from a holder of 25% or more of the voting rights in the company which resulted in the acquirer becoming a holder of 25% or more of the voting rights in the company, or (3) was from a holder of more than 45% of the voting rights in the company which resulted in the acquirer becoming a holder of more than 45% of the voting rights in the company. A "special" tender offer must be extended to all shareholders. In general, a "special" tender offer may be consummated only if (1) at least 5% of the voting power attached to the company's outstanding shares will be acquired by the offeror and (2) the offer is accepted by a majority of the offerees who notified the company of their position in connection with such offer (excluding the offeror, controlling shareholders, holders of 25% or more of the voting rights in the company or anyone on their behalf, or any person having a personal interest in the acceptance of the tender offer). If a special tender offer is accepted, then the purchaser or any person or entity controlling it or under common control with the purchaser or such controlling person or entity may not make a subsequent tender offer for the purchase of shares of the target company and may not enter into a merger with the target company for a period of one year from the date of the offer, unless the purchaser or such person or entity undertook to effect such an offer or merger in the initial special tender offer.

If, as a result of an acquisition of shares, the acquirer will hold more than 90% of an Israeli company's outstanding shares, the acquisition must be made by means of a tender offer for all of the outstanding shares. In general, if less than 5% of the outstanding shares are not tendered in the tender offer and more than half of the offerees who have no personal interest in the offer tendered their shares, all the shares that the acquirer offered to purchase will be transferred to it by operation of law. However, a tender offer will also be accepted if the shareholders who do not accept the offer hold less than 2% of the issued and outstanding share capital of the company or of the applicable class of shares. Shareholders may request appraisal rights in connection with a full tender offer for a period of six months following the consummation of the tender offer, but the acquirer is entitled to stipulate, under certain conditions, that tendering shareholders will forfeit such appraisal rights.

Further, Israeli tax considerations may make potential transactions undesirable to us or some of our shareholders whose country of residence does not have a tax treaty with Israel granting tax relief to such shareholders from Israeli tax. For example, Israeli tax law does not recognize tax-free share exchanges to the same extent as U.S. tax law. With respect to mergers, Israeli tax law allows for tax deferral in certain circumstances but makes the deferral contingent on the fulfilment of numerous conditions, including, a holding period of two years from the date of the transaction during which certain sales and dispositions of shares of the participating companies are restricted.

Moreover, with respect to certain share swap transactions, the tax deferral is limited in time, and when such time expires, the tax becomes payable even if no disposition of the shares has occurred.

***Changes in Our Capital***

Our articles of association enable us to increase or reduce our share capital. Any such changes are subject to the provisions of the Companies Law and must be approved by a resolution duly passed by our shareholders at a general meeting by voting on such change in the capital.

**C. Material Contracts**

We have not entered into any material contracts other than in the ordinary course of business and other than those described in Item 4. "Information on Our Company," Item 7B "Major Shareholders and Related Party Transactions - Related Party Transactions" or elsewhere in this registration statement.

**D. Exchange Controls**

There are currently no Israeli currency control restrictions on remittances of dividends on our ordinary shares, proceeds from the sale of the shares or interest or other payments to non-residents of Israel, except for shareholders who are subjects of countries that are, or have been, in a state of war with Israel.

**E. Taxation.**

*The following description is not intended to constitute a complete analysis of all tax consequences relating to the acquisition, ownership and disposition of our ordinary shares. You should consult your own tax advisor concerning the tax consequences of your particular situation, as well as any tax consequences that may arise under the laws of any state, local, foreign, or other taxing jurisdiction.*

**ISRAELI TAX CONSIDERATIONS AND GOVERNMENT PROGRAMS**

The following is a brief summary of the material Israeli tax laws applicable to us and certain Israeli Government programs. The following also contains a discussion of material Israeli tax consequences concerning the ownership and disposition of our ordinary shares purchased. To the extent that certain matters discussed below are based on new or evolving Israeli tax legislation that has not yet been subject to judicial or administrative interpretation, there can be no assurance that the Israel Tax Authority ("ITA") or the courts will interpret such provisions in a manner consistent with the views expressed herein. This summary is based on Israeli laws and regulations in effect as of the date hereof and is intended solely as general information. It should not be regarded as legal, accounting or tax advice to any particular investor.

***General Corporate Tax Structure in Israel***

Israeli resident companies are generally subject to corporate tax. The current corporate tax rate, effective as of 2018 and through 2025, is 23%. However, the effective tax rate payable by a company that derives income from an Approved Enterprise, a Preferred Enterprise, a Beneficiary Enterprise or a Technological Enterprise (as discussed below) may be considerably less.

Capital gains derived by an Israeli resident company are generally subject to tax at the same 23% corporate tax rate. Under Israeli tax legislation, a corporation will be considered as an "Israeli resident company" if it meets one of the following: (i) it was incorporated in Israel; or (ii) the control and management of its business are exercised in Israel.

***Law for the Encouragement of Industry (Taxes), 5729-1969***

The Law for the Encouragement of Industry (Taxes), 5729-1969, generally referred to as the Industry Encouragement Law, provides several tax benefits for "Industrial Companies."

The Industry Encouragement Law defines an "Industrial Company" as a company incorporated in, and resident of Israel, at least 90% of the income of which, in a given tax year, exclusive of income from specified government loans, capital gains, interest and dividends which are not classified for such company as business income, is derived from an industrial enterprise owned by it. In general, an "Industrial enterprise" is defined as an enterprise whose principal activity in a given tax year is industrial production.

Following are the main tax benefits available to Industrial Companies:

● **Amortization Benefit (Section 7A):** Amortization of the cost of purchased a patent, rights to use a patent, and know-how, which are used for the development or promotion of the Industrial Enterprise, over an eight-year period and certain other intangible property rights (other than goodwill), commencing on the year in which such rights were first exercised;

● **Filing Consolidated Returns:** Under limited conditions, an election to file consolidated tax returns with related Israeli Industrial Companies; and

● **Public Offering Expenses:** Under certain conditions, expenses related to a public offering are deductible in equal amounts over a three years period commencing on the year of the offering.

Eligibility for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority. There is no assurance that we qualify as an Industrial Company or that the benefits described above will be available in the future.

***Tax Benefits for Research and Development***

Israeli tax law allows, under certain conditions, a tax deduction for expenditures, including capital expenditures, related to scientific research and development, for the year in which they are incurred. Expenditures are deemed related to scientific research and development projects, if:

● The expenditures are approved by the relevant Israeli government ministry, determined by the field of research;

● The research and development must be for the promotion of the company; and

● The research and development is carried out by or on behalf of the company seeking such tax deduction.

The amount of such deductible expenses is reduced by the sum of any funds received through government grants for the finance of such scientific research and development projects. No deduction under these research and development deduction rules is allowed if such deduction is related to an expense invested in an asset depreciable under the general depreciation rules of The Israeli Income Tax Ordinance of 1961 (New Version), or the Ordinance. Expenditures related to scientific research and development that were not approved are deductible in equal amounts over three years.

From time to time we may apply the Israel Innovation Authority ("IIA") for approval to allow a tax deduction for all research and development expenses during the year incurred. There can be no assurance that such application will be accepted.

***Law for the Encouragement of Capital Investments, 5719-1959***

The Law for the Encouragement of Capital Investments, 5719-1959, generally referred to as the Investment Law, provides, inter alia, certain incentives for capital investments in production facilities (or other eligible assets) and certain tax benefits with respect to certain eligible income.

The Investment Law was significantly amended effective April 1, 2005, January 1, 2011, and January 1, 2017 (the "2017 Amendment"). The 2017 Amendment introduces new benefits for Technology Enterprises, alongside the existing tax benefits.

***Tax Benefits Under the 2017 Amendment***

The 2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January 1, 2017. The 2017 Amendment provides new tax benefits for two types of "Technological Enterprises" - "Preferred Technological Enterprises", or PTEs and "Special Preferred Technological Enterprise" or SPTEs as described below.

Additionally, In the framework of the 2017 amendment, the definition of "preferential income" was also updated and a transitional provision was established that was in effect, until June 30, 2021, that allowed the companies to continue implementing the "Preferred enterprise" and "Special Preferred Enterprise" regimes in their previous. As of June 30, 2021, with the expiration of the aforementioned Transitional Provision, all the companies that apply the Preferred Enterprise or Special Preferred Enterprise regimes are required to apply the rules of the 2017 amendment to their income from the Preferred Enterprise.

According to the 2017 Amendment, a company that complies with the terms under the PTE or SPTE regime may be entitled to certain tax benefits with respect to its "Preferred Technological Income", which is income that is generated during the company's regular course of business and derived from a benefitted intangible asset (as determined in the Investments Law), excluding income derived from intangible assets used for marketing and income attributed to production activity.

In order to calculate the preferred technological income, the PTE or the SPTE is required to take into account the income and the research and development expenses that are attributed to each single benefitted intangible asset, product or group of products (as defined in the Investment Law). Nevertheless, it should be noted that the transitional provisions allow companies to take into account all the income and research and development expenses attributed to all of the benefitted intangible assets they have, until December 31, 2021.

The 2017 Amendment applies to PTE that meet certain conditions, including: (1) the enterprise's research and development expenses in the three years preceding the relevant tax year were at least 7% on average of the total revenue of the company that owns the enterprise or exceeded NIS 75 million in each such year and (2) one of the following: (a) at least 20% of the workforce (or at least 200 employees) are employees whose full salary has been paid and reported in the company's financial statements as research and development expenses; (b) a venture capital investment approximately equivalent to at least NIS 8 million was previously made in the company and the company did not change its line of business since the investment was made; (c) growth in sales by an average of 25% or more over the three years preceding the relevant tax year, provided that the turnover was at least NIS 10 million, in the relevant tax year and in each of the preceding three years; or (d) growth in workforce by an average of 25% or more over the three years preceding the relevant tax year, provided that the company employed at least 50 employees in the relevant tax year and in each of the preceding three years.

An SPTE is an enterprise that meets conditions 1 and 2 above, and for which, among others, total consolidated revenues of its parent company and all subsidiaries is at least NIS 10 billion.

The Preferred Technological Income of a PTE, which is the portion of technological income derived from the benefitted intangible asset developed in Israel, according to the NEXUS approach, satisfying the required conditions, will enjoy a reduced corporate tax rate of 12%. The tax rate is further reduced to 7.5% for a PTE located in development zone "A."

In addition, a PTE will enjoy a reduced corporate tax rate of 12% on capital gain derived from the sale of certain "Benefitted Intangible Assets" (as defined in the Investment Law) to a related foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017, for at least NIS 200 million, and the sale receives prior approval from the IIA.

SPTEs, satisfying the required conditions, will enjoy a reduced corporate tax rate of 6% on "Preferred Technological Income" regardless of the company's geographic location within Israel. In addition, an SPTE will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain "Benefitted Intangible Assets" to a related foreign company if the Benefitted Intangible Assets were either developed by the SPTE or acquired from a foreign company on or after January 1, 2017, and the sale received prior approval from IIA. An SPTE that acquires Benefitted Intangible Assets from a foreign company for more than NIS 500 million will be eligible for these benefits for at least ten years, subject to certain approvals as specified in the Investment Law.

The Regulations for the Encouragement of Capital Investments (Preferred Technological Income and Capital Profits for a Technological Enterprise), 2017, or Regulations, describe, inter alia, the mechanism used to determine the calculation of the benefits under the PTE and SPTE Regimes.

In the event that intangible assets used for marketing purposes generate income, which exceeds 10% of the technological income from the benefitted intangible asset, the relevant portion, calculated using a transfer pricing study, would be subject to regular corporate income tax. If such income does not exceed 10%, the PTE or SPTE will not be required to attribute income to the marketing intangible asset.

The Regulations set a presumption of direct production expenses plus 10% with respect to income related to production, a presumption which can be countered by the results of a supporting transfer pricing study. Tax rates applicable to such production income expenses will be similar to the tax rates under the Preferred or special preferred Enterprise regimes, to the extent such income would be considered as eligible (as discussed above).

Dividends distributed to individuals or non-Israeli shared by a PTE or a SPTE, paid out of Preferred Technological Income or capital gain derived from the sale of certain "Benefited Intangible Assets", are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (non-Israeli shareholders are required to present, in advance of payment, a valid withholding certificate from the ITA allowing for such 20% tax rate or lower treaty rate). However, if such dividends are paid to an Israeli company, no tax is required to be withheld.

If such dividends are distributed to a foreign company (holding, solely or together with other non-Israeli companies, directly at least 90% in the Preferred Company or holding indirectly such 90% in the Preferred Company) and other conditions are met, the withholding tax rate will be 4% (subject to the receipt in advance of a valid withholding certificate from the ITA allowing for such 4%).

If in the future we generate taxable income, to the extent that we qualify as a "Preferred Company," the benefits under the Investment Law could materially reduce our Israeli corporate tax liability.

**Taxation of our Shareholders**

***Capital Gains***

Israeli capital gain tax is imposed on the disposal of capital assets by an Israeli resident, and on the disposal of such assets by a non-Israeli resident if those assets are either (i) located in Israel; (ii) are shares or a right to a share in an Israeli resident corporation, or (iii) represent, directly or indirectly, rights to assets located in Israel. Under the Israeli Income Tax Ordinance (the "Ordinance"), capital gains are divided into "Real Capital Gain" and "Inflationary Surplus". The Inflationary Surplus reflects the increase in the asset's adjusted cost basis due to Israeli CPI inflation (or foreign currency changes, as applicable) between purchase and sale dates, and is currently exempt from tax. The Real Capital Gain—total gain less the Inflationary Surplus—is subject to tax.

Real Capital Gain accrued by individuals on the sale of our ordinary shares will be taxed at the rate of 25%. However, if the individual shareholder is a "Substantial Shareholder" (i.e., a person who holds, directly or indirectly, alone or together with such person's relative or another person who collaborates with such person on a permanent basis, 10% or more of one of the Israeli resident company's "means of control." "Means of control" generally includes the right to vote, receive profits, nominate a director or an officer, receive assets upon liquidation, or order someone who holds any of the aforesaid rights how to act, and all regardless of the source of such right) at the time of sale or at any time during the preceding 12 months period, such real capital gain will be taxed at the rate of 30%.

Furthermore, where an individual claims real interest expenses and linkage differentials on securities, the capital gain on the sale of the securities will be taxed at a rate of 30%, this until the determination of provision and conditions for the deduction of real interest expenses and linkage differentials under Section 101A(a)(9) and 101A(b).

Real Capital Gain derived by corporations will be generally subject to a corporate tax rate of 23% (in 2024).

A non-Israeli resident who derives capital gains from the sale, exchange or disposition of shares in an Israeli resident company that were purchased after the company was listed on a stock exchange outside of Israel will be exempt from Israeli capital gains tax subject to certain conditions, inter alia that the shares were not held through or attributable to a permanent establishment that the non-Israeli resident maintains in Israel.

However, non-Israeli corporations will not be entitled to the foregoing exemption if Israeli residents (i) have, directly or indirectly, alone or together with such person's relatives or another person who, according to an agreement, collaborates with such person on a permanent basis regarding material affairs of the company, or with another Israeli tax resident, a controlling interest of more than 25% in any of the means of control of such non-Israeli corporation, or (ii) are the beneficiaries of, or are entitled to 25% or more of the revenues or profits of such non-Israeli corporation, whether directly or indirectly. Furthermore, such exemption is not applicable to a person whose gains from selling or otherwise disposing of the securities are deemed to be business income.

Additionally, a sale of shares by a non-Israeli resident may be exempt from Israeli capital gains tax under the provisions of an applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority, or the ITA).

For example, under Convention Between the Government of the United States of America and the Government of the State of Israel with respect to Taxes on Income, as amended, or the U.S.-Israel Tax Treaty, the sale, exchange or other disposition of shares by a shareholder who is a United States resident (for purposes of the treaty) holding the shares as a capital asset and is entitled to claim the benefits afforded to such a resident by the U.S.-Israel Tax Treaty, or a Treaty U.S. Resident, is generally exempt from Israeli capital gains tax unless either: (i) the capital gain arising from such sale, exchange or disposition is attributed to real estate located in Israel; (ii) the capital gain arising from such sale, exchange or disposition is attributed to royalties; (iii) the capital gain arising from the such sale, exchange or disposition is attributed to a permanent establishment of the Treaty U.S. Resident maintained in Israel, under certain terms; (iv) such Treaty U.S. Resident holds, directly or indirectly, shares representing 10% or more of the voting capital during any part of the 12-month period preceding the sale, exchange or disposition, subject to certain conditions; or (v) such Treaty U.S. Resident is an individual and was present in Israel for 183 days or more during the relevant taxable year. In any of these cases, the sale, exchange or disposition of our ordinary shares would be subject to Israeli tax, to the extent applicable.

In some instances where our shareholders may be liable for Israeli tax on the sale of their ordinary shares, the payment of the consideration may be subject to the withholding of Israeli tax at source. Shareholders may be required to demonstrate that they are exempt from tax on their capital gains in order to avoid withholding at source at the time of sale. Specifically, in transactions involving a sale of all of the shares of an Israeli resident company, in the form of a merger or otherwise, the ITA may require from shareholders who are not liable for Israeli tax to sign declarations in forms specified by this authority or obtain a specific exemption from the ITA to confirm their status as non-Israeli residents, and, in the absence of such declarations or exemptions, may require the purchaser of the shares to withhold taxes at source.

Either the purchaser, the Israeli stockbrokers or financial institution through which the shares are held, is obliged to withhold tax in the amount of consideration paid upon the sale of securities (or the Real Capital Gain realized on the sale, if known) at the Israeli corporate tax rate (23%) or 25% in case the seller is an individual. The individual or the company may provide an approval from the ITA for a reduced tax withholding rate, according to the applicable rate.

Individual shareholders whose income from the sale of securities considered as business income are taxed at the marginal tax rates applicable to business income – up to 47%.

At the sale of securities traded on a stock exchange, a detailed return, including a computation of the tax due, must be filed and an advance payment must be made on January 31 and July 31 of every tax year in respect of sales of securities made within the previous six months. However, if all tax due was withheld at source according to applicable provisions of the Ordinance and regulations promulgated thereunder, the aforementioned return is not required to be filed, and no advance payment must be paid. Capital gain is also reportable on the annual income tax return

***Dividends***

We do not currently expect to pay dividends in the foreseeable future as it is noted under the section entitled "Certain Material U.S. Federal Income Tax Considerations" below. Non-Israeli residents (whether individuals or corporations) are generally subject to Israeli income tax on the receipt of dividends paid from income, which is not attributed to Preferred (including Preferred Technological) Enterprise at the rate of 25% (or 30% in the case such shareholder is considered a "substantial shareholder" at the time of distribution or at any time during the preceding 12 month period), which tax will be withheld at source, unless relief is provided in an applicable tax treaty between Israel and the shareholder's country of residence (provided that a Withholding tax certificate from the ITA allowing for such relief is obtained in advance). However, a distribution of dividends to non-Israeli residents is subject to withholding tax at source at a rate of 20% if the dividend is distributed from income attributed to a Preferred (including Preferred Technological) Enterprise. If the dividend is attributable in part to income derived from a Preferred Enterprise or a Preferred Technological Enterprise, the withholding rate will be a blended rate reflecting the relative portions of the types of income. We cannot assure you that we will designate the profits that we may distribute in a way that will reduce shareholders' tax liability. Such dividends are generally subject to Israeli withholding tax at a rate of 25% so long as the shares are registered with a nominee company (whether the recipient is a substantial shareholder or not) and 20% if the dividend is distributed from income attributed to a Preferred Enterprise.

However, a reduced tax rate may be provided under an applicable tax treaty (provided that a Withholding tax certificate from the ITA allowing for such relief is obtained in advance).

For example, under the United States-Israel Tax Treaty, the maximum rate of tax withheld at source in Israel on dividends paid to a holder of our ordinary shares who is a Treaty U.S. Resident is 25%. However, generally, the maximum rate of withholding tax on dividends not generated by a Preferred Enterprise, that are paid to a United States corporation holding 10% or more of the outstanding voting capital throughout the tax year in which the dividend is distributed as well as during the previous tax year is 12.5%, provided that not more than 25% of the gross income for such preceding year consists of certain types of dividends and interest. If dividends are distributed from income that was subject to a reduced corporate tax rate under the Investment Law and the foregoing conditions are met, such dividends are subject to a withholding tax rate of 15% or 20% for a shareholder that is a United States corporation. Application for this reduced tax rate requires appropriate documentation presented to and specific instruction received from the ITA.

A non-Israeli resident who receives dividends from which tax was duly withheld is generally exempt from the obligation to file tax returns in Israel with respect to such income, provided that (i) such income was not generated from business conducted in Israel by the taxpayer; (ii) the taxpayer has no other taxable sources of income in Israel with respect to which a tax return is required to be filed; and (iii) the taxpayer is not liable for surtax (as further explained below).

***Surtax***

Under Section 121B of the Ordinance, a 3% surtax applies to annual taxable income exceeding NIS 721,560 (for 2024).This threshold is linked to the Israeli CPI, but linkage is frozen for 2025–2027 under recent legislation.

Beginning January 1 2025, individuals whose taxable income from capital sources (capital gains, dividends, and interest) exceeds NIS 721,560 in the tax year are subject to an additional 2% surtax, bringing the total potential surtax to 5% on such income.

***Estate and Gift Tax***

Israeli law presently does not impose estate or gift taxes.

**CERTAIN MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS**

THE FOLLOWING SUMMARY IS INCLUDED HEREIN FOR GENERAL INFORMATION AND IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSIDERED TO BE, LEGAL OR TAX ADVICE. EACH U.S. HOLDER SHOULD CONSULT WITH HIS OR HER OWN TAX ADVISOR AS TO THE PARTICULAR U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND SALE OF ORDINARY SHARES, INCLUDING THE EFFECTS OF APPLICABLE STATE, LOCAL, FOREIGN OR OTHER TAX LAWS AND POSSIBLE CHANGES IN THE TAX LAWS.

Subject to the limitations described in the next two paragraphs, the following discussion summarizes certain material U.S. federal income tax consequences to a "U.S. Holder" arising from the purchase, ownership and sale of the ordinary shares. For this purpose, a "U.S. Holder" is a holder of ordinary shares that is: (1) an individual citizen or resident of the United States, including an alien individual who is a lawful permanent resident of the United States or meets the substantial presence residency test under U.S. federal income tax laws; (2) a corporation (or entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of the United States or the District of Columbia or any political subdivision thereof; (3) an estate, the income of which is includable in gross income for U.S. federal income tax purposes regardless of its source; (4) a trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have authority to control all substantial decisions of the trust; or (5) a trust that has a valid election in effect to be treated as a U.S. person to the extent provided in U.S. Treasury regulations.

This summary is for general information purposes only and does not purport to be a comprehensive description of all of the U.S. federal income tax considerations that may be relevant to a decision to purchase our ordinary shares. This summary generally considers only U.S. Holders that will own our ordinary shares as capital assets. Except to the limited extent discussed below, this summary does not consider the U.S. federal tax consequences to a person that is not a U.S. Holder, nor does it describe the rules applicable to determine a taxpayer's status as a U.S. Holder. This summary is based on the provisions of the Code and final, temporary and proposed U.S. Treasury regulations promulgated thereunder, administrative and judicial interpretations thereof, and the United States-Israel Income Tax Treaty, all as in effect as of the date hereof and all of which are subject to change, possibly on a retroactive basis, and all of which are open to differing interpretations. We will not seek a ruling from the Internal Revenue Service, or the IRS, with regard to the U.S. federal income tax treatment of an investment in our ordinary shares by U.S. Holders and, therefore, can provide no assurances that the IRS will agree with the conclusions set forth below.

This discussion does not address all of the aspects of U.S. federal income taxation that may be relevant to a particular U.S. Holder based on such holder's particular circumstances and in particular does not discuss any estate, gift, generation-skipping transfer, state, local, and excise or non-U.S. tax considerations. In addition, this discussion does not address the U.S. federal income tax treatment of a U.S. Holder who is: (1) a bank, life insurance company, regulated investment company, or other financial institution or "financial services entity;" (2) a broker or dealer in securities or foreign currency; (3) a person who acquired our ordinary shares in connection with employment or other performance of services; (4) a U.S. Holder that is subject to the U.S. alternative minimum tax; (5) a U.S. Holder that holds our ordinary shares as a hedge or as part of a hedging, straddle, conversion or constructive sale transaction or other risk-reduction transaction for U.S. federal income tax purposes; (6) a tax-exempt entity; (7) real estate investment trusts or grantor trusts; (8) a U.S. Holder that expatriates out of the United States or a former long-term resident of the United States; or (9) a person having a functional currency other than the U.S. dollar. This discussion does not address the U.S. federal income tax treatment of a U.S. Holder that owns, directly or constructively, at any time, ordinary shares representing 10% or more of the shares of our company. Additionally, the U.S. federal income tax treatment of partnerships (or other pass-through entities) or persons who hold ordinary shares through a partnership or other pass-through entity are not addressed.

Each prospective investor is advised to consult his or her own tax adviser for the specific tax consequences to that investor of purchasing, holding or disposing of our ordinary shares, including the effects of applicable state, local, non-U.S. or other tax laws and possible changes in the tax laws.

***Taxation of Dividends Paid on Ordinary Shares***

We do not intend to pay dividends in the foreseeable future. In the event that we do pay dividends, and subject to the discussion under the heading "Passive Foreign Investment Companies" below and the discussion of "qualified dividend income" below, a U.S. Holder, other than certain U.S. Holders that are U.S. corporations, will be required to include in gross income as ordinary income the amount of any distribution paid on the ordinary shares (including the amount of any Israeli tax withheld on the date of the distribution), to the extent that such distribution does not exceed our current and accumulated earnings and profits, as determined for U.S. federal income tax purposes. The amount of a distribution that exceeds our earnings and profits will be treated first as a non-taxable return of capital, reducing the U.S. Holder's tax basis for the ordinary shares to the extent thereof, and then capital gain. We do not expect to maintain calculations of our earnings and profits under U.S. federal income tax principles and, therefore, U.S. Holders should expect that the entire amount of any distribution generally will be reported as dividend income.

In general, preferential tax rates for "qualified dividend income" and long-term capital gains are applicable for U.S. Holders that are individuals, estates or trusts. For this purpose, "qualified dividend income" means, inter alia, dividends received from a "qualified foreign corporation." A "qualified foreign corporation" is a corporation that is entitled to the benefits of a comprehensive tax treaty with the United States that includes an exchange of information program. The IRS has stated that the United States-Israel Tax Treaty satisfies this requirement and we believe we are eligible for the benefits of that treaty.

In addition, our dividends will be qualified dividend income if our ordinary shares are readily tradable on the Nasdaq Capital Market or another established securities market in the United States. Dividends will not qualify for the preferential rate if we are treated, in the year the dividend is paid or in the prior year, as a passive foreign investment company, or PFIC, as described below under "Passive Foreign Investment Companies." A U.S. Holder will not be entitled to the preferential rate: (1) if the U.S. Holder has not held our ordinary shares for at least 61 days of the 121 day period beginning on the date which is 60 days before the ex-dividend date, or (2) to the extent the U.S. Holder is under an obligation to make related payments with respect to positions in substantially similar or related property. Any days during which the U.S. Holder has diminished its risk of loss on our ordinary shares are not counted towards meeting the 61-day holding period. Finally, U.S. Holders who elect to treat the dividend income as "investment income" pursuant to Section 163(d)(4) of the Code will not be eligible for the preferential rate of taxation.

The amount of a distribution with respect to our ordinary shares will be measured by the amount of the fair market value of any property distributed, and for U.S. federal income tax purposes, the amount of any Israeli taxes withheld therefrom. Cash distributions paid by us in NIS will be included in the income of U.S. Holders at a U.S. dollar amount based upon the spot rate of exchange in effect on the date the dividend is includible in the income of the U.S. Holder, and U.S. Holders will have a tax basis in such NIS for U.S. federal income tax purposes equal to such U.S. dollar value. If the U.S. Holder subsequently converts the NIS into U.S. dollars or otherwise disposes of them, any subsequent gain or loss in respect of such NIS arising from exchange rate fluctuations will be U.S. source ordinary exchange gain or loss.

Subject to certain significant conditions and limitations, any Israeli taxes paid on or withheld from distributions from us and not refundable to a U.S. Holder may be credited against the U.S. Holder's U.S. federal income tax liability or, alternatively, may be deducted from the U.S. Holder's taxable income. However, as a result of recent changes to the U.S. foreign tax credit rules, a withholding tax generally may need to satisfy certain additional requirements in order to be considered a creditable tax for a U.S. Holder. We have not determined whether these requirements have been met and, accordingly, no assurance can be given that any withholding tax on dividends paid by us will be creditable. The election to deduct, rather than credit, foreign taxes, is made on a year-by-year basis and applies to all foreign taxes paid by a U.S. Holder or withheld from a U.S. Holder that year. Dividends paid with respect to our ordinary shares will be treated as foreign source income, which may be relevant in calculating the U.S. Holder's foreign tax credit limitation. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends that we distribute generally should constitute "passive category income," or, in the case of certain U.S. Holders, "general category income." The rules relating to the determination of the foreign tax credit are complex, and U.S. Holders should consult their tax advisor to determine whether and to what extent such holder will be entitled to this credit.

Dividends paid with respect to our ordinary shares will not be eligible for the "dividends-received" deduction generally allowed to corporate U.S. Holders with respect to dividends received from U.S. corporations.

***Taxation of the Sale, Exchange or other Disposition of*** ***Ordinary Shares***

Except as provided under the PFIC rules described below under "Passive Foreign Investment Companies," upon the sale, exchange or other disposition of our ordinary shares, a U.S. Holder will recognize capital gain or loss in an amount equal to the difference between such U.S. Holder's tax basis for the ordinary shares, determined in U.S. dollars, and the U.S. dollar value of the amount realized on the disposition (or its U.S. dollar equivalent determined by reference to the spot rate of exchange on the date of disposition, if the amount realized is denominated in a foreign currency). The gain or loss realized on the sale, exchange or other disposition of ordinary shares will be long-term capital gain or loss if the U.S. Holder has a holding period of more than one year at the time of the disposition. Individuals who recognize long-term capital gains may be taxed on such gains at reduced rates of tax. The deduction of capital losses is subject to various limitations. U.S. Holders should consult their own tax advisors regarding the U.S. federal income tax consequences of receiving currency other than U.S. dollars upon the disposition of their ordinary shares.

***Passive Foreign Investment Companies***

Special U.S. federal income tax laws apply to U.S. taxpayers who own shares of a corporation that is a PFIC. We will be treated as a PFIC for U.S. federal income tax purposes for any taxable year that either:

● 75% or more of our gross income (including our pro rata share of gross income for any company, in which we are considered to own 25% or more of the shares by value), in a taxable year is passive; or

● At least 50% of our assets generally determined on the basis of a quarterly average and based upon fair market value (including our pro rata share of the assets of any company in which we are considered to own 25% or more of the shares by value) are held for the production of, or produce, passive income.

For this purpose, passive income generally consists of rents, dividends, interest, royalties, gains from the disposition of passive assets and gains from commodities and securities transactions. Generally, cash is treated as generating passive income and is therefore treated as a passive asset for purposes of the PFIC rules.

We believe that we were not a PFIC for the year ended December 31, 2025 and we will not be a PFIC for the current taxable year, although we have not determined whether we will be a PFIC in the foreseeable future. The tests for determining PFIC status are applied annually, and it is difficult to make accurate projections of future income and assets which are relevant to this determination. In addition, our PFIC status may depend in part on the market value of our ordinary shares. Accordingly, there can be no assurance that we currently are not, and we cannot assure that we will not be in the future, classified as PFIC.

If we currently are or become a PFIC, each U.S. Holder who has not elected to mark the shares to market (as discussed below), would, upon receipt of certain "excess distributions" by us and upon disposition of our ordinary shares at a gain: (1) have such excess distribution or gain allocated ratably over the U.S. Holder's holding period for the ordinary shares, as the case may be; (2) the amount allocated to the current taxable year and any period prior to the first day of the first taxable year in which we were a PFIC would be taxed as ordinary income; and (3) the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year. Distributions received by a U.S. Holder in a taxable year that are greater than 125% of the average annual distributions received during the shorter of the three preceding taxable years or the U.S. Holder's holding period for the ordinary shares will be treated as excess distributions. In addition, when shares of a PFIC are acquired by reason of death from a decedent that was a U.S. Holder, the tax basis of such shares would not receive a step-up to fair market value as of the date of the decedent's death, but instead would be equal to the decedent's basis if lower, unless all gain were recognized by the decedent. Indirect investments in a PFIC may also be subject to these special U.S. federal income tax rules.

The PFIC rules described above would not apply to a U.S. Holder who makes a qualified electing fund, or QEF, election for all taxable years that such U.S. Holder has held the ordinary shares while we are a PFIC, provided that we comply with specified reporting requirements. Instead, each U.S. Holder who has made such a QEF election is required for each taxable year that we are a PFIC to include in income such U.S. Holder's pro rata share of our ordinary earnings as ordinary income and such U.S. Holder's pro rata share of our net capital gains as long-term capital gain, regardless of whether we make any distributions of such earnings or gain. In general, a QEF election is effective only if we make available certain required information. The QEF election is made on a shareholder-by-shareholder basis and generally may be revoked only with the consent of the IRS. We do not intend to notify U.S. Holders if we believe we will be treated as a PFIC for any tax year. In addition, we do not intend to furnish U.S. Holders annually with information needed in order to complete IRS Form 8621 and to make and maintain a valid QEF election for any year in which we or any of our subsidiaries are a PFIC. Therefore, the QEF election will not be available with respect to our ordinary shares.

In addition, the PFIC rules described above would not apply if we were a PFIC and a U.S. Holder made a mark-to-market election. A U.S. Holder of our ordinary shares which are regularly traded on a qualifying exchange, including the Nasdaq Capital Market, can elect to mark the ordinary shares to market annually, recognizing as ordinary income or loss each year an amount equal to the difference as of the close of the taxable year between the fair market value of the ordinary shares and the U.S. Holder's adjusted tax basis in the ordinary shares. Losses are allowed only to the extent of net mark-to-market gain previously included income by the U.S. Holder under the election for prior taxable years.

A U.S. Holder that owns (or is deemed to own) shares in a PFIC during any taxable year of the U.S. Holder generally is required to file an IRS Form 8621 with such U.S. Holder's U.S. federal income tax return and provide such other information as the IRS may require. Failure to file IRS Form 8621 for each applicable taxable year may result in substantial penalties and result in the U.S. Holder's taxable years being open to audit by the IRS until such forms are properly filed.

U.S. Holders who hold our ordinary shares during a period when we are a PFIC generally will be subject to the foregoing rules, even if we cease to be a PFIC. A U.S. Holder is encouraged to consult its tax advisor with respect to any available elections that may be applicable in such a situation, including a "deemed sale" election. The U.S. federal income tax rules relating to PFICs are complex. U.S. Holders are urged to consult their own tax advisors with respect to the consequences to them of an investment in a PFIC, any elections available with respect to the ordinary shares and the IRS information reporting obligations with respect to the purchase, ownership, and disposition of the ordinary shares in the event we are determined to be a PFIC.

**Tax on Net Investment Income**

U.S. Holders who are individuals, estates or trusts will generally be required to pay a 3.8% Medicare tax on their net investment income (including dividends on and gains from the sale or other disposition of our ordinary shares), or in the case of estates and trusts on their net investment income that is not distributed to beneficiaries of the estate or trust. In each case, the 3.8% Medicare tax applies only to the extent the U.S. Holder's total adjusted income exceeds applicable thresholds.

***Information Reporting and Withholding***

Dividend and sale proceeds may be subject to backup withholding at 24% if a U.S. Holder fails to provide a valid taxpayer identification number (TIN) or Form W-9. Backup withholding is not an additional tax and may be claimed as a credit against U.S. federal income tax upon filing a return.

**THE DISCUSSION ABOVE IS A GENERAL SUMMARY AND IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF ALL TAX CONSEQUENCES RELATING TO THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR ORDINARY SHARES. IT DOES NOT COVER ALL TAX MATTERS THAT MAY BE OF IMPORTANCE TO A PROSPECTIVE INVESTOR. EACH PROSPECTIVE INVESTOR IS URGED TO CONSULT ITS OWN TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO IT RELATING TO THE PURCHASE, OWNERSHIP, AND DISPOSITION OF ORDINARY SHARES IN LIGHT OF THE INVESTOR'S OWN CIRCUMSTANCES.**

**F. Dividends and Paying Agents**

Not applicable.

**G. Statements by Experts**

The consolidated financial statements of Gix Internet Ltd. as of December 31, 2025 and 2024, and for each of the two years in the period ended December 31, 2025, included in this registration statement, have been audited by Brightman Almagor Zohar & Co., a Firm in Deloitte Global Network, an independent registered public accounting firm, as stated in their report. Such consolidated financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

**H. Documents on Display**

When this registration statement becomes effective, we will be subject to the information reporting requirements of the Exchange Act, applicable to foreign private issuers and under those requirements will file reports with the SEC. You may read and copy this registration statement, including the related exhibits and schedules, and any document we file with the SEC without charge at the SEC's public reference room at 100 F Street, N.E., Room 1580, Washington, DC 20549. You may also obtain copies of the documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, N.E., Room 1580, Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. The SEC also maintains an Internet website that contains reports and other information regarding issuers that file electronically with the SEC. Our filings with the SEC will also available to the public through the SEC's website at www.sec.gov.

As a foreign private issuer, we will be exempt from the rules under the Exchange Act related to the furnishing and content of proxy statements., Section 8103 of the National Defense Authorization Act for Fiscal Year 2026, named the "Holding Foreign Insiders Accountable Act", which was signed into law on December 18, 2025, will require directors and officers of foreign private issuers to make insider reports under *Section 16*(a) of the Exchange Act, effective March 18, 2026. Our principal shareholders continue to remain exempt from the reporting under Section 16(a) of the Exchange Act and our directors, officers and principal shareholders continue to remain exempt from the short-swing profit recovery provisions contained in Section 16(b) of the Exchange Act. In addition, we will not be required under the Exchange Act to file annual, quarterly and current reports and financial statements with the SEC as frequently or as promptly as U.S. domestic companies whose securities are registered under the Exchange Act. However, we will file with the SEC, within 120 days after the end of each fiscal year, or such applicable time as required by the SEC, an annual report on Form 20-F containing financial statements audited by an independent registered public accounting firm, and may submit to the SEC, on a Form 6-K, unaudited quarterly financial information.

In addition, since our ordinary shares are traded on the TASE, we have filed Hebrew language periodic and immediate reports with, and furnish information to, the TASE and the Israel Securities Authority, or the ISA, as required under Chapter Six of the Israel Securities Law, 1968. Copies of our filings with the ISA can be retrieved electronically through the MAGNA distribution site of the ISA (www.magna.isa.gov.il) and the TASE website (www.maya.tase.co.il).

We maintain a corporate website <u>www.gix-internet.com</u>. Information contained on, or that can be accessed through, our website and the other websites referenced above do not constitute a part of this registration statement. We have included these website addresses in this registration statement solely as inactive textual references.

**I. Subsidiary Information.**

Not applicable.

**J. Annual Report to Security Holders**

Not applicable.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

For information about the effects of currency and interest rate fluctuations and how we manage currency and interest risk, see "Item 5. Operating and Financial Review and Prospects—5.B. Liquidity and Capital Resources." Please also see the information set forth under "Note 2.T. Derivative Financial Instruments" of our audited financial statements and related notes included elsewhere in this registration statement.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

**A. Debt Securities.**

Not applicable.

**B. Warrants and rights.**

Not applicable.

**C. Other Securities.**

Not applicable.

**D. American Depositary Shares**

Not applicable.

**PART II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

None.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

Not applicable.

**ITEM 15. CONTROLS AND PROCEDURES**

Not applicable.

**ITEM 16. [RESERVED]**

Not applicable.

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Not applicable.

**ITEM 16B. CODE OF ETHICS**

Not applicable.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

Not applicable.

**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not applicable.

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

Not applicable.

**ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

Not applicable.

**ITEM 16G. CORPORATE GOVERNANCE**

Pursuant to an exception under the Nasdaq listing standards available to foreign private issuers, we are not required to comply with all of the corporate governance practices followed by U.S. companies under the Nasdaq listing standards, which are available at www.nasdaq.com, because in certain cases we follow our home country (Israel) practice. Pursuant to Section 5600 of the Nasdaq Listed Company Manual, we are required to list the significant differences between our corporate governance practices that comply with and follow our home country practices and the Nasdaq standards applicable to listed U.S. companies. Set forth below is a list of those differences:

● *Distribution of periodic reports to shareholders; proxy solicitation*. As opposed to the Nasdaq Stock Market rules, which require listed issuers to make such reports available to shareholders in one of a number of specific manners, Israeli law does not require us to distribute periodic reports directly to shareholders, and the generally accepted business practice in Israel is not to distribute such reports to shareholders but to make such reports available through a public website. In addition to making such reports available on a public website, we currently make our audited financial statements available to our shareholders at our offices and will only mail such reports to shareholders upon request. As a foreign private issuer, we are generally exempt from the SEC's proxy solicitation rules.

● *Quorum*. While the Nasdaq Stock Market rules require that the quorum for purposes of any meeting of the holders of a listed company's common voting stock, as specified in the company's bylaws, be no less than 33 1/3% of the company's outstanding issued and outstanding share capital, under Israeli law, a company is entitled to determine in its articles of association the number of shareholders and percentage of holdings required for a quorum at a shareholders meeting. Our articles of association provide that a quorum of two or more shareholders holding at least 25% of the voting rights in person or by proxy is required for commencement of business at a general meeting.

● *Nomination of our directors*. Our articles of association provide that with the exception of directors elected by our board of directors to fill a vacancy and external directors, which will be elected by an annual or special meeting of our shareholders and shall hold office until the remaining period of time during which the director whose service has ended would have held office, or in case of a vacancy due to the number of directors serving being less than the minimum number stated in our amended articles, the board of directors shall determine at the time of appointment the class to which the additional director shall be assigned, or 3 years period in case of external director. The nominations for directors, which are presented to our shareholders by our board of directors, are generally made by the board of directors itself, in accordance with the provisions of our amended and restated articles of association and the Companies Law. Nominations need not be made by a nominating committee of our board of directors consisting solely of independent directors, as required under the Nasdaq Stock Market rules.

● *Compensation of officers*. Israeli law and our articles of association will not require that the independent members of our board of directors (or a compensation committee composed solely of independent members of our board of directors) determine an executive officer's compensation, as is generally required under the Nasdaq Stock Market rules with respect to the chief executive officer and all other executive officers. Instead, compensation of executive officers is determined and approved by our compensation committee and our board of directors, and in certain circumstances by our shareholders, either in consistency with our office holder compensation policy or, in special circumstances in deviation therefrom, taking into account certain considerations stated in the Companies Law. See "Management—Board Practices—Approval of Related Party Transactions under Israeli Law" for additional information.

● *Independent directors*. Israeli law does not require that a majority of the directors serving on our board of directors be "independent," as defined under Nasdaq Stock Market Rule 5605(a)(2), and rather requires we have at least two external directors who meet the requirements of the Companies Law, as described below under "Management—Board Practices—External Directors." The definition of independent director under Nasdaq Stock Market rules and external director under the Companies Law overlap to a significant degree such that we would generally expect the directors serving as external directors to satisfy the requirements to be independent under Nasdaq Stock Market rules. However, it is possible for a director to qualify as an "external director" under the Companies Law without qualifying as an "independent director" under the Nasdaq Stock Market rules, or vice-versa. Notwithstanding Israeli law, we believe that a majority of our directors are currently "independent" under the Nasdaq Stock Market rules. Our board of directors has determined that Asaf Itzhaik, Shoshi Eizenberg Hertz, Ron Silberman, Liron Carmel and Avi Ben David are "independent" for purposes of the Nasdaq Stock Market rules. Pursuant to the Alleviation Regulations we may classify directors who qualify as independent directors under the relevant non-Israeli rules, as 'independent directors' under the Companies Law, each of these four directors is also deemed to qualify as an 'independent director' under the Companies Law (as supplemented by the Alleviation Regulations). We are required, however, to ensure that all members of our Audit Committee are "independent" under the applicable Nasdaq and SEC criteria for independence (as we cannot exempt ourselves from compliance with that SEC independence requirement, despite our status as a foreign private issuer), and we must also ensure that a majority of the members of our Audit Committee are "independent directors" as defined in the Companies Law. Furthermore, Israeli law does not require, nor do our independent directors conduct, regularly scheduled meetings at which only they are present, which the Nasdaq Stock Market rules otherwise require.

● *Shareholder approval*. We will seek shareholder approval for all corporate actions requiring such approval under the requirements of the Companies Law, rather than seeking approval for corporate actions in accordance with Nasdaq Stock Market Rule 5635. In particular, under this Nasdaq Stock Market rule, shareholder approval is generally required for: (i) an acquisition of shares or assets of another company that involves the issuance of 20% or more of the acquirer's shares or voting rights or if a director, officer or 5% shareholder has greater than a 5% interest in the target company or the consideration to be received; (ii) the issuance of shares leading to a change of control; (iii) adoption or amendment of equity compensation arrangements (although under the provisions of the Companies Law there is no requirement for shareholder approval for the adoption/amendment of the equity compensation plan); and (iv) issuances of 20% or more of the shares or voting rights (including securities convertible into, or exercisable for, equity) of a listed company via a private placement (and/or via sales by directors, officers or 5% shareholders) if such equity is issued (or sold) at below the greater of the book or market value of shares. By contrast, under the Companies Law, shareholder approval is required for, among other things: (i) transactions with directors concerning the terms of their service or indemnification, exemption and insurance for their service (or for any other position that they may hold at a company), for which approvals of the compensation committee, board of directors and shareholders are all required, (ii) extraordinary transactions with controlling shareholders of publicly held companies, which require the special approval, and (iii) terms of employment or other engagement of the controlling shareholder of us or such controlling shareholder's relative, which require special approval. In addition, under the Companies Law, a merger requires approval of the shareholders of each of the merging companies.

● *Approval of Related Party Transactions*. All related party transactions are approved in accordance with the requirements and procedures for approval of interested party acts and transaction as set forth in the Companies Law, which requires the approval of the audit committee, or the compensation committee, as the case may be, the board of directors and shareholders, as may be applicable, for specified transactions, rather than approval by the audit committee or other independent body of our board of directors as required under the Nasdaq Stock Market rules. See "Management—Board Practices—Approval of Related Party Transactions under Israeli Law" for additional information.

**ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

**ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**ITEM 16J. INSIDER TRADING POLICIES**

Not applicable.

**ITEM 16K. CYBERSECURITY**

Not applicable.

**PART III**

**ITEM 17. FINANCIAL STATEMENTS**

We have elected to provide financial statements and related information pursuant to Item 18.

**ITEM 18. FINANCIAL STATEMENTS**

The financial statements and the related notes required by this Item are included in this registration statement beginning on page F-1.

**ITEM 19. EXHIBITS.**

---

| | |
|:---|:---|
| **Exhibit**<br>**No.** | <br>**Document** |
| 1.1\*# | [Amended and Restated Articles of Association of the Registrant](ex1-1.htm) |
| 4.1\*+# | [2017 Equity Incentive Plan](ex4-1.htm) |
| 4.2\*#+ | [Compensation Policy for Executive Officers and Directors](ex4-2.htm) |
| 4.3\*#+ | [Form of Indemnification Agreement](ex4-3.htm) |
| 4.4\*#^ | [Share Purchase Agreement dated January 5, 2025 by and between Gix Internet Ltd., Deliverz.ai Ltd. and the shareholders of Deliverz.ai Ltd.](ex4-4.htm) |
| 4.5\*# | [Amendment No. 1 dated June 26, 2025 to Share Purchase Agreement dated January 5, 2025 by and between Gix Internet Ltd., Deliverz.ai Ltd. and the shareholders of Deliverz.ai Ltd.](ex4-5.htm) |
| 4.6\*#^ | [Facility Agreement dated June 26, 2025 by and between Gix Internet Ltd. and the lenders thereto](ex4-6.htm) |
| 4.7\*# | [Form of Warrant issued by Gix Internet Ltd. in connection with the Facility Agreement dated June 26, 2025 by and between Gix Internet Ltd. and the lenders thereto](ex4-7.htm) |
| 4.8\*# | [Facility Agreement dated June 25, 2025 by and between Gix Internet Ltd. and L.I.A. Pure Capital Ltd.](ex4-8.htm) |
| 4.9\* | [Loan Agreement dated October 12, 2021 by and between Gix Internet Ltd. and Xylo Technologies Ltd. (f/ka Medigus Ltd.)](ex4-9.htm) |
| 4.10\* | [Amendment to Loan Agreement dated August 25, 2022 by and between Gix Internet Ltd. and Xylo Technologies Ltd. (f/ka Medigus Ltd.)](ex4-10.htm) |
| 4.11\* | [Amendment No. 2 to Loan Agreement dated August 28, 2023 by and between Gix Internet Ltd. and Xylo Technologies Ltd. (f/ka Medigus Ltd.)](ex4-11.htm) |
| 4.12\* | [Amendment No. 3 to Loan Agreement dated November 8, 2023 by and between Gix Internet Ltd. and Xylo Technologies Ltd. (f/ka Medigus Ltd.)](ex4-12.htm) |
| 4.13\* | [Amendment No. 4 to Loan Agreement dated January 1, 2024 by and between Gix Internet Ltd. and Xylo Technologies Ltd. (f/ka Medigus Ltd.)](ex4-13.htm) |
| 4.14\* | [Amendment No. 5 to Loan Agreement dated August 22, 2024 by and between Gix Internet Ltd. and Xylo Technologies Ltd.](ex4-14.htm) |
| 4.15\* | [Amendment No. 6 to Loan Agreement dated October 6, 2024 by and between Gix Internet Ltd. and Xylo Technologies Ltd.](ex4-15.htm) |
| 4.16\* | [Amendment No. 7 to Loan Agreement dated January 6, 2025 by and between Gix Internet Ltd. and Xylo Technologies Ltd.](ex4-16.htm) |
| 4.17\* | [Amendment No. 8 to Loan Agreement dated August 31, 2025 by and between Gix Internet Ltd. and Xylo Technologies Ltd.](ex4-17.htm) |
| 4.18\* | [Amendment No. 9 to Loan Agreement dated May 20, 2026 by and between Gix Internet Ltd. and Xylo Technologies Ltd.](ex4-18.htm) |
| 4.19\*# | [Framework Agreement dated May 31, 2022 by and between Sheba Health Services and Research Foundation and Deliverz.ai Ltd. (f/k/a/ Seamless Vision (2017) Ltd.)](ex4-19.htm) |
| 4.20\*^ | [Form of Private Placement Agreement dated May 6, 2026 or May 8, 2026, by and between Gix Internet Ltd. and each of the investors identified on Schedule A attached thereto](ex4-20.htm) |
| 4.21\* | [Form of Warrant](ex4-21.htm) |
| 8.1\* | [Subsidiaries of the Registrant](ex8-1.htm) |
| 15.1\* | [Consent of Brightman Almagor Zohar & Co., a firm in the Deloitte Global Network, independent registered public accounting firm of Gix Internet Ltd.](ex15-1.htm) |
| 15.2\* | [Consent of Brightman Almagor Zohar & Co., a firm in the Deloitte Global Network, independent registered public accounting firm of Deliverz.ai Ltd.](ex15-2.htm) |
| 15.3\* | [Consent of Brightman Almagor Zohar & Co., a firm in the Deloitte Global Network, independent registered public accounting firm of Quantum X Labs Inc. (f/k/a Viewbix Inc.)](ex15-3.htm) |

---

---

| | |
|:---|:---|
| \* | Filed herewith. |
| + | Indicates a management contract or any compensatory plan, contract or arrangement. |
| ^ | Portions of this exhibit (indicated by asterisks) have been omitted under rules of the U.S. Securities and Exchange Commission permitting the confidential treatment of select information. |
| # | English translation of original Hebrew document. |

---

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this registration statement filed on its behalf.

---

| | | |
|:---|:---|:---|
|  | **GIX INTERNET LTD.** | **GIX INTERNET LTD.** |
| Date: June 18, 2026 | By: | */s/ Amir Nardimon* |
|  |  | Amir Nardimon |
|  |  | Interim Chief Executive Officer |

---

**Gix Internet Ltd.**

**CONSOLIDATED FINANCIAL STATEMENTS**

**<u>CONTENTS</u>**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#a_001) | F-2 |
| [Consolidated Balance Sheets](#a_002) | F-3 |
| [Consolidated Statements of Comprehensive Income](#a_003) | F-5 |
| [Consolidated Statements of Changes in Shareholders' Equity](#a_004) | F-6 |
| [Consolidated Statements of Cash Flows](#a_005) | F-8 |
| [Notes to the Consolidated Financial Statements](#a_006) | F-12 |

---

![](fin_001.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**To the Stockholders and Board of Directors of Gix Internet Ltd.**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Gix Internet Ltd. and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, changes in shareholders' equity and cash flows, for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Brightman Almagor Zohar & Co.

Certified Public Accountants

A Firm in the Deloitte Global Network

Tel Aviv, Israel

May 21, 2026

We have served as the Company's auditor since 2018.

**GIX INTERNET LTD.**

**<u>CONSOLIDATED BALANCE SHEETS</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **As of**<br> **December 31**<br> **2025** | **As of**<br> **December 31**<br> **2024** |
| **<u>ASSETS</u>** |  |  |  |
| **CURRENT ASSETS** |  |  |  |
| Cash and cash equivalents |  | 205 | 632 |
| Restricted deposits | **13A** | 8 | 58 |
| Accounts receivable |  | 16 | 1832 |
| Other current assets | **3** | 1171 | 1304 |
| **Total current assets** |  | 1400 | 3826 |
| **NON-CURRENT ASSETS** |  |  |  |
| Deferred taxes | **12** |  | 164 |
| Property and equipment, net | **4** | 109 | 28 |
| Investment in shares at fair value | **14A** | 88 | 61 |
| Investments accounted for using the equity <br> method | **7E** | 7776 |  |
| Intangible assets, net | **6** | 3024 | 3089 |
| Goodwill | **6** | 2781 | 9950 |
| **Total non-current assets** |  | 13778 | 13292 |
| **Total assets** |  | 15178 | 17118 |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**GIX INTERNET LTD.**

**<u>CONSOLIDATED BALANCE SHEETS (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Note** | **As of<br> December 31<br> 2025** | **As of**<br> **December 31**<br> **2024** |
| **<u>LIABILITIES AND SHAREHOLDERS' EQUITY</u>** |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |
| Accounts payable | **8** | 534 | 6417 |
| Short-term loans | **10** | 1572 | 3174 |
| Current maturities of long-term loans | **10** |  | 3064 |
| Embedded derivatives | **11** | 780 | 29 |
| Short-term convertible loans | **10.F-H** |  | 779 |
| Other payables | **9** | 570 | 989 |
| **Total current liabilities** |  | 3456 | 14452 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| Long-term loans, net of current maturities | **10** | 1240 | 496 |
| Deferred taxes | **12C** | 695 | 367 |
| **Total non-current liabilities** |  | 1935 | 863 |
| Commitments and contingencies | **13** |  |  |
| **SHAREHOLDERS' EQUITY** | **14** |  |  |
| Ordinary shares no par value - Authorized: 100,000,000 shares; Issued and outstanding: 2,075,079 and 1,430,267 shares as of December 31, 2025 and December 31, <br>2024, respectively |  |  |  |
| Foreign currency translation reserve |  | (303) | 211 |
| Additional paid-in capital |  | 51473 | 35425 |
| Accumulated deficit |  | (41383) | (38075) |
| Equity attributed to shareholders of Gix Internet Ltd. |  | 9787 | (2439) |
| Non-controlling interests |  | - | 4242 |
| **Total equity** |  | 9787 | 1803 |
| **Total liabilities and shareholders' equity** |  | 15178 | 17118 |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**GIX INTERNET LTD.**

**<u>CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2025** | **2024** |
| **Revenues** |  | 7744 | 26941 |
| **Costs and expenses:** |  |  |  |
| Traffic-acquisition and related costs | **15A** | 6336 | 21987 |
| Research and development | **15B** | 825 | 1891 |
| Selling and marketing | **15C** | 600 | 1643 |
| General and administrative | **15D** | 2297 | 2702 |
| Depreciation and amortization | **46** | 1170 | 1300 |
| Goodwill impairment | **6B** | 6105 | 2025 |
| Other expenses, net | **15E** | 1327 | 34 |
| **Operating loss** |  | (10916) | (4641) |
| Gain from deconsolidation of Quantum X Labs Inc. | **7E** | 6731 |  |
| Financial expense, net | **15F** | 11536 | 3112 |
| Equity loss | **7E** | (158) |  |
| **Loss before income taxes** |  | (15879) | (7753) |
| Tax benefit | **12C** | 145 | 7 |
| **Net loss** |  | (15734) | (7746) |
| **Other comprehensive loss:** |  |  |  |
| Foreign currency translation adjustments |  | (514) | 18 |
| **Total comprehensive loss** |  | (16248) | (7728) |
| **Net loss is attributable to:** |  |  |  |
| Shareholders of Gix Internet Ltd. |  | (3308) | (4950) |
| Non-controlling interests |  | (12426) | (2796) |
|  |  | (15734) | (7746) |
| **Total comprehensive loss is attributable to:** |  |  |  |
| Shareholders of Gix Internet Ltd. |  | (3822) | (4932) |
| Non-controlling interests |  | (12426) | (2796) |
|  |  | (16248) | (7728) |
| Net loss per share – Basic and diluted attributed to shareholders of Gix Internet Ltd. |  | (1.91) | (3.46) |
| Weighted average number of shares – Basic and diluted |  | 1735947 | 1430051 |

---

**The accompanying notes are an integral part of these financial statements.**

**GIX INTERNET LTD.**

**<u>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | | | | | | |
|  | **Number** | **Amount** | **Foreign**<br> **Currency Translation**<br>**Reserve** | **Additional**<br> **Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Equity Attributed to Shareholders of Gix**<br>**Internet Ltd** | **Non- Controlling**<br>**Interests** | **Total**<br>**Equity** |
| **Balance as of January 1, 2025** | 1430267 |  | 211 | 35425 | (38075) | (2439) | 4242 | 1803 |
| Net loss |  |  |  |  | (3308) | (3308) | (12426) | (15734) |
| Other comprehensive income | - |  | (514) | - | - | (514) | - | (514) |
| **Total comprehensive loss** | 1430267 |  | (514) |  | (3308) | (3822) | (12426) | (16248) |
| Share-based compensation (see note 14.B) |  |  |  | 23 |  | 23 |  | 23 |
| Subsidiaries' share-based compensation Company (see note 13.B) |  |  |  | 13 |  | 13 | 65 | 78 |
| Issuance of shares and warrants in connection with conversion of loans in Quantum X Labs Inc. (see note 10.F -10.H) |  |  |  | 4341 |  | 4341 | 6731 | 11072 |
| Issuance of shares in connection with acquisition by Quantum X Labs Inc. (see note 7.C) |  |  |  | 1792 |  | 1792 | 3367 | 5159 |
| Exercise of warrants in Quantum X Labs Inc. (see note 13.B) |  |  |  | 398 |  | 398 | 1824 | 2222 |
| Redemption of loan from subsidiary (see note 10.I) |  |  |  | 2324 |  | 2324 | (2324) |  |
| Issuance of shares and warrants in connection with private placement by Quantum X Labs Inc. (see note 13.B) |  |  |  | 911 |  | 911 | 3112 | 4023 |
| Issuance of shares in connection with acquisition of a subsidiary (see note 7.D) | 622524 |  |  | 5247 |  | 5247 |  | 5247 |
| Issuance of shares to the Company's Officers (see note 14.B) | 22288 |  |  | 215 |  | 215 |  | 215 |
| Issuance of the Quantum X Labs Inc.'s warrants in connection with the July 2025 Credit Facility Agreement (see note 10.K) |  |  |  | 592 |  | 592 |  | 592 |
| July 2025 Credit Facility Agreement's adjustment to fair value (see note 10.K) |  |  |  | 192 |  | 192 |  | 192 |
| Deconsolidation of Quantum X Labs Inc. (see note 7.E) |  |  |  |  |  |  | (4591) | (4591) |
| **Balance as of December 31, 2025** | 2075079 |  | (303) | 51473 | (41383) | (9787) | - | 9787 |

---

**GIX INTERNET LTD.**

**<u>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares** | **Ordinary Shares** | | | | | | |
|  | **Number** | **Amount** | **Foreign**<br> **Currency Translation**<br>**Reserve** | **Additional**<br> **Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Equity Attributed**<br> **to Shareholders of Gix Internet**<br>**Ltd** | **Non- Controlling**<br>**Interests** | **Total**<br>**Equity** |
| **Balance as of January 1, 2024** | 1430041 |  | 193 | 34810 | (33125) | 1878 | 4647 | 6525 |
| Net loss |  |  |  |  | (4950) | (4950) | (2796) | (7746) |
| Other comprehensive income | - |  | 18 | - | - | 18 | - | 18 |
| **Total comprehensive loss** | 1430041 |  | 18 |  | (4950) | (4932) | (2796) | (7728) |
| Share-based compensation (see note 14.B) |  |  |  | 12 |  | 12 |  | 12 |
| Subsidiaries' share-based compensation (see note 14.B) |  |  |  |  |  |  | 68 | 68 |
| Exercise of warrants | 226 |  |  | 5 |  | 5 |  | 5 |
| Issuance of shares and warrants by Quantum X Labs Inc. (see notes 10, 14.A, 14.B) |  |  |  | (705) |  | (705) | 1793 | 1088 |
| Reclassification of derivative warrant liability into equity (see note 10.F) | - |  | - | 1303 | - | 1303 | 530 | 1833 |
| **Balance as of December 31, 2024** | 1430267 |  | 211 | 35425 | (38075) | (2439) | 4242 | 1803 |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**GIX INTERNET LTD.**

**<u>CONSOLIDATED STATEMENTS OF CASH FLOWS</u>**

**U.S. dollars in thousands (except share data)**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| **<u>Cash flows from Operating Activities</u>** |  |  |
| Net loss | (15734) | (7746) |
| **Adjustments to reconcile net loss to net cash provided by (used in) operating activities:** |  |  |
| Depreciation and amortizations | 1170 | 1300 |
| Share-based compensation | 882 | 80 |
| Deferred taxes | (178) | (186) |
| Accrued interest, net | 141 | 105 |
| Amortization of loan discounts | (21) | 59 |
| Change in the fair value of financial assets at fair value through profit or loss | 10057 | 99 |
| Goodwill impairment (see note 6.B) | 6105 | 2025 |
| Amortization of deferred debt issuance costs (see notes 10.F and 10.K) | 1099 | 152 |
| Share based debt issuance costs (see note 10.E) |  | 26 |
| Loss from substantial debt terms modification (see note 10.E) |  | 1914 |
| Loss on sale and disposal of property and equipment |  | 73 |
| Loss from termination of lease agreement |  | 8 |
| Gain from deconsolidation of Quantum X Labs Inc. (see note 7.E) | (6731) |  |
| Equity loss | 158 |  |
| **Changes in assets and liabilities items:** |  |  |
| Decrease in accounts receivable | 489 | 9527 |
| Decrease in other current assets | 138 | 126 |
| Decrease in accounts payable | (1210) | (6195) |
| Increase (decrease) in other payables | 108 | (85) |
| **Net cash provided by (used in) operating activities** | (3527) | 1282 |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**GIX INTERNET LTD.**

**<u>CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| **<u>Cash flows from Investing Activities</u>** |  |  |
| Net cash from acquisition of a subsidiaries (see notes 7.C and 7.D) | 31 |  |
| Deconsolidation of Quantum X Labs Inc. (Appendix B and note 7.E) | (2371) |  |
| Purchase of property and equipment | (110) | (1) |
| **Net cash used in investing activities** | (2450) | (1) |
| **<u>Cash flows from Financing Activities</u>** |  |  |
| Receipt of short-term loans | 8495 | 935 |
| Receipt of short-term convertible loans | 630 | 630 |
| Repayment of short-term loans | (9140) | (3967) |
| Receipt of long-term loans (see note 10.B) | 1562 |  |
| Receipt of a loan from parent company | 42 | 40 |
| Repayment of long-term loans | (3560) | (510) |
| Receipt of short-term loans from private lenders (see note 10.K) | 1635 |  |
| Repayment of a loan from a related party (see notes 10.D and 10.J) | 267 |  |
| Issuance of common shares and warrants in connection with private placement in Quantum X Labs Inc. (see note 13.B) | 4023 | 198 |
| Proceeds from exercise of warrants in Quantum X Labs Inc | 2222 | 5 |
| **Net cash provided by (used in) financing activities** | 5642 | (2669) |
| **Decrease in cash and cash equivalents and restricted cash** | (335) | (1388) |
| **Cash and cash equivalents and restricted cash at beginning of the year** | 690 | 2059 |
| **Gains (loss) from exchange differences on cash and cash equivalents and restricted cash** | (142) | 19 |
| **Cash and cash equivalents and restricted cash at end of the year** | 213 | 690 |
| **<u>Supplemental Disclosure of Cash Flow Activities:</u>** |  |  |
| **Cash paid during the year** |  |  |
| Income taxes paid | (7) | (123) |
| Interest paid | (357) | (676) |

---

**GIX INTERNET LTD.**

**<u>CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

**APPENDIX A TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS:**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| Non-cash financing and investing activities: |  |  |
| Deemed extinguishment and re-issuance of debt (see note 10.E) |  | 500 |
| Termination of operating lease agreement (see note 5) |  | 389 |
| Deferred debt issuance costs paid in common shares (see notes 10.G and 10.F) |  | 481 |
| Deferred debt issuance costs paid in warrants (see notes 10.G and 10.F) |  | 296 |
| Redemption of loan from subsidiary (see note 10.I) | 2324 |  |
| Conversion of loans into shares and warrants in Quantum X Labs Inc. (see notes 18.K and 7.D) | 922 |  |
| Issuance of shares in connection with acquisition of a subsidiary (see notes 7.C and 7.D) | 12615 | - |

---

**APPENDIX B TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS:**

**Deconsolidation of Quantum X Labs Inc. (see note 7.E):**

---

| | |
|:---|:---|
|  | **As of<br> September 25,<br> 2025** |
| Net working capital other than cash | 6819 |
| Property and equipment, net | (81) |
| Deferred taxes - long term asset | (28) |
| Intangible assets, net | (3315) |
| Goodwill | (8970) |
| Investments accounted for using the equity method | 7934 |
| Long-term loans, net of current maturities | 781 |
| Earn-out liability | 1010 |
| Deferred taxes - long term liability | 361 |
| Derecognition of non-controlling interests | 4591 |
| Gain arising from deconsolidation | (6731) |
| Net cash deconsolidated upon loss of control | 2371 |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Organizational Background**

Gix Internet Ltd. (the "Company") was incorporated in the State of Israel on July 24, 1978, under the name Theodor Herzl Hotel Jerusalem Ltd. On November 08, 1993, the Company changed its name to Maariv Holding Ltd. On October 24, 2013, the Company changed its name to Algomizer Ltd. and on June 06, 2020 the Company changed its name to Gix Internet Ltd. The Company's ordinary shares have been trading on the Tel Aviv Stock Exchange (the "TASE") since February 25, 1994.

As of December 31, 2025, the Company holds 100% of Algomizer Inc.'s outstanding shares and 26.42% of Quantum X Labs Inc.'s (formerly known as Viewbix Inc.) outstanding shares and Quantum X Labs Inc. holds all of the outstanding shares of Viewbix Ltd. and Gix Media Ltd. (the "Gix Media"). Through the periods included in these financial statements, Algomizer Inc's did not have business operations.

The shares of Quantum X Labs Inc. are listed in the United States. On June 5, 2025, Quantum X Labs Inc. completed its uplisting to the Nasdaq Stock Market and began trading on the Nasdaq Capital Market under the ticker symbol "VBIX" (the "Uplist"). Following the Uplist, Quantum X Labs Inc.'s shares ceased to be quoted on the OTC Markets, Pink Tier at the close of business on June 4, 2025 (see note 13.B). Viewbix Ltd. and Gix Media are private entities incorporated in Israel. On April 30, 2026, Quantum X Labs Inc. ("Quantum Inc") changed its name from Viewbix Inc. to Quantum X Labs Inc. and its trading symbol from "VBIX" to "QXL" on The Nasdaq Capital Market (see note 18.E).

On October 13, 2021, Gix Media completed the acquisition of 70% of the shares of Cortex Media Group Ltd. (the "Cortex" and the "Cortex Transaction", respectively), a private company incorporated in Israel. On January 23, 2023, Gix Media acquired an additional 10% of Cortex's shares (see note 7). On November 9, 2025, Gix Media sold all of its holdings in Cortex (see notes 7.B).

On July 10, 2025, the Company completed the acquisition of 100% of the shares of Deliverz.ai Ltd. ("Deliverz" and the "Deliverz Transaction"), a private company incorporated in Israel. Deliverz develops advanced technological solutions for managing logistics delivery operations in complex environments, utilizing autonomous robots and a software-based control and management system (see note 7.D).

During the year ended December 31, 2025, as a result of an increase in the number of Quantum Inc.'s common share the Company's holdings in Quantum Inc.'s decreased to 26.42% compared to 53.31% as of December 31, 2024. In addition, on September 25, 2025, following changes in the composition of the Board of Directors of Quantum Inc., the number of directors of Quantum Inc. appointed by the Company decreased to less than 50%. As a result of the decrease in the Company's holdings in Quantum Inc.'s, common share together with the change in the composition of Quantum Inc.'s Board of Directors, the Company lost control over Quantum Inc. and, accordingly, deconsolidated the assets, liabilities and financial results of Quantum Inc. As of September 30, 2025, the Company presents its investment in Quantum Inc. using the equity method (see Note 7.E).

The Company, Quantum Inc., Viewbix Ltd., Algomizer Inc., Deliverz, Gix Media and its subsidiaries, Metagramm Software Ltd. (the "Metagramm") and its subsidiary, Cortex and its subsidiaries are collectively referred as the Group in these financial statements.

Prior to the deconsolidation of Quantum Inc. the Group's business operations are conducted under Gix Media, Metagramm and Cortex. Following the deconsolidation of Quantum Inc. the Company's business operations are conducted under Deliverz.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Business Overview**

Prior to the deconsolidation of Quantum Inc., the Group had three main activities that were reported as separate operating segments: the search segment, the digital content segment and Autonomous Robots segment.

The search segment develops a variety of technological software solutions, which perform automation, optimization, and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted under Gix Media.

The digital content segment is engaged in the creation and editing of content, in different languages, for different target audiences, for the purpose of generating revenues from leading advertising platforms, by utilizing such content to obtain and route internet user traffic for its customers. The digital content segment activity is conducted under Cortex.

The Autonomous Robots segment develops advanced technological solutions for managing logistics delivery operations in complex environments, utilizing autonomous robots and a software-based control and management system

Additionally, on March 24, 2025, Quantum Inc. entered into a securities exchange agreement with the shareholders of Metagramm, a private entity incorporated in Israel, pursuant to which Quantum Inc. acquired 100% of Metagramm's shares for consideration of $5,159 (see note 7.C). Metagramm specializes in developing writing assistance tools that leverage artificial intelligence, machine learning and natural language processing technologies.

On July 10, 2025, the Company completed the acquisition of 100% of the shares of Deliverz. .While the Company's digital advertising business unit remains, and is expected to continue to remain, an important part of its business, it is in the early stages of transitioning its active business operations to be conducted primarily through Deliverz. Through its acquisition of Deliverz, it has diversified its investments into new markets and industries and have adjusted its exclusive focus from the digital advertising industry to the development of advanced logistics automation solutions that integrate with third-party autonomous robots. As the Company progresses in transitioning its business strategy, it is expected that Deliverz will carry out the Company's primary operational activities and be the vehicle through which the Company pursues its business strategy. The Company's ad-tech operations are conducted exclusively through its ownership interest in Quantum Inc., and it does not maintain any ad-tech operations outside of this stake. If management sells the Company's shares in Quantum Inc., the Company will no longer have ad-tech operations as part of its business.

On December 15, 2025, Quantum Inc. entered into a securities exchange agreement with Quantum X Labs Ltd., an Israeli company focusing on developing and promoting quantum algorithms for the transportation, drug discovery and security segments as well as developing quantum-based GPS replacement and quantum atom accuracy solutions ("Quantum Ltd" and the "Quantum transaction"), and its shareholders. The Quantum transaction was completed on March 4, 2026 (see note 18.B).

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Impact of the "Iron Swords" War on Israel**

In October 2023, Israel was attacked by the Hamas terrorist organization and entered a state of war on several fronts (the "War"). In addition, Iran, Hezbollah and the Houthi movement attacked military and civilian targets in Israel, to which Israel responded, including through increased air and/or ground operations in Lebanon, Syria, Yemen and Iran. Following years of conflict in the region, on October 9, 2025, Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas. On February 28, 2026, the United States and Israel launched joint combat operations in Iran to which Iran and Hezbollah responded with ballistic missile and drone attacks on Israel as well as other countries and U.S. military bases in the region. On April 8, 2026, the United States and Iran agreed to a two-week ceasefire. How long and how severe the current conflicts in Gaza, Northern Israel, Lebanon, Iran or the broader region last and become is unknown at this time and any continued clash among Israel, Hamas, Hezbollah, Iran or other countries or militant groups in the region may escalate in the future into a greater regional conflict. The intensity and duration of the security situation in Israel have been difficult to predict, as are the economic implications on the Company's business and operations and on Israel's economy in general.

In January 2024, Gix Media and Cortex filed a request with the Israeli Tax Authority (the "ITA") to receive compensation for the decrease in revenues related to the War. In April and May 2024, Gix Media and Cortex received a total of $337 from the ITA that were recorded as a reduction of other expenses, net in the Company's consolidated statement of operations for the year ended December 31, 2025.

As the Group's customers are mainly in the U.S. and Europe, its operations, revenues, and profitability are not directly affected by the War. However, this is an ongoing event and there is uncertainty regarding its duration, nature, and scope, management is unable to reasonably estimate the extent of the impact at this time.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Cortex Adverse Effect**

In April 2024, Cortex's significant customer ceased advertising on Cortex's sites, as part of its policy decision to cease advertising on Made for Advertising (the "MFA") sites (the "Cortex Adverse Effect"). The Cortex Adverse Effect, which has materially affected Cortex's business and operations, has occurred following certain developments relating to publishers that are categorized by a number of on-line advertisers as MFA, including decisions made by leading media on-line advertisers to prioritize different media categories and implement publishing restrictions in connection with MFA. Due to the Cortex Adverse Effect, the Company recorded an impairment of $6,105 and $2,025 in the goodwill related to the digital content segment during the years ended December 31, 2025, and 2024 respectively (see also note 6.B).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Liquidity and management plans**

During the years ended December 31, 2025, and 2024, the Group experienced a decrease in its revenues from the digital content and search segments, mainly due to Cortex Adverse effect (see note 1.D). On September 25, 2025, as a result of changes in the composition of the Board of Directors of Quantum Inc. (formerly Viewbix Inc.) the Company deconsolidated the assets, liabilities and financial results of Quantum Inc. In addition, On November 9, 2025, Gix Media sold all of it's shares holdings in Cortex (see note 7.B). As of the date of the issuance of these financial statements the Company, through Deliverz, is in the research and development (R&D) stage and, as such, has not generated material revenues from Deliverz operations. The Company's activities are primarily funded through the proceeds from July 2025 Credit Facility Agreement at the amount of NIS 8,953 ($2,807) (see note 10.K) and, as a subsequent event, on May 2026 the Company completed a Private Placement at the amount of NIS 9,180 ($2,880) (see note 18.E). To further alleviate its financial burden, on May 20, 2026, the Company entered into an amendment to the loan agreements with shareholders to defer the repayments at the amount of $1,333 until August 2027 (see notes 18.D and 18.G). During the year ended December 31, 2025, the Company recorded an operating loss of $10,916 and net loss of $15,734 which was recorded mainly due to Quantum Inc.'s loss. As of the date of the issuance of these financial statements and following the May 2026 Private Placement (See note 18.E), the Company had cash and cash equivalents of $2,980.

To support its operations, increase Deliverz's revenues, advance its commercialization efforts, and continue the development of its programs, the Company expects to seek additional financing, including through potential investments from investors. While the Company will continue to evaluate available financing alternatives, if additional funding is not obtained on a timely basis, it may need to adjust the pace or scope of certain operational, commercialization, or development activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Company Strategy**

Following the Company's strategy as approved by the Company's Board of Directors in 2021 whereby the Company would seek new business activity for merger into the Company. On July 10, 2025, the Company entered into an agreement with Deliverz, a company engaged in the development, manufacturing, and marketing of autonomous robots for logistics and delivery solutions. The Deliverz Transaction was completed on July 10, 2025 (see note 7.D).

Additionally, following the completion of the uplisting of Quantum Inc.'s shares on June 5, 2025, the acquisition of Metagramm shares by Quantum Inc. in exchange for Quantum Inc.'s shares, and capital raises by Quantum Inc., the Company's holdings in Quantum Inc. decreased during the year ended December 31, 2025, to 26.42% as compared to 53.23% as of December 31, 2024. On September 25, 2025, following a decrease in the Company's holding percentage in Quantum Inc. and a change in the composition of Quantum Inc.'s Board of Directors, the Company lost controlling financial interest in Quantum Inc. Accordingly, the Company ceased to consolidate the financial statements of Quantum Inc. as of such date and accounts for its remaining interest in Quantum Inc. as an equity method investee.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Basis of Presentation and Principles of Consolidation:**

The accompanying consolidated financial statements (the "financial statements") include the accounts of the Company and its wholly owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States of America (the "U.S. GAAP"). All intercompany accounts and transactions have been eliminated in consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported of assets and liabilities and disclosure at the date of the financial statements and the reported amounts of income and expense during the reporting period. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, income taxes, deferred taxes, share-based compensation and leases. Actual results could differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Functional Currency and Foreign Currency Transactions**

During the year ended December 31, 2025, and 2024, most of the revenues of the Company's subsidiaries are received in U.S. dollars. In addition, a substantial portion of the costs of the Company's subsidiaries are incurred in U.S. dollars. Therefore, the Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company's subsidiaries operate. Thus, the functional currency of most of the Company's subsidiaries is the U.S. dollar.

Accordingly, monetary balances denominated in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Statement of the Accounting Standard Codification (the "ASC") No. 830 "Foreign Currency Matters" (the "ASC No. 830").

The currency of the primary economic environment in which the Company operates is NIS. Thus, the functional currency of the Company is NIS.

The Company's reporting currency is the U.S. dollar. Accordingly, monetary balances of the Company denominated in currencies other than the NIS are re-measured into NIS, and are then translated, together with all of the Company's assets and liabilities from NIS to US dollars using year-end exchange rates.

Profit or loss items of the Group are translated at average exchange rates during the year. Gains or losses resulting from NIS to USD translation adjustments are recorded as other comprehensive income or loss, and are reflected in stockholders' equity, under Foreign Currency Translation Reserve, in accordance with ASC No. 830.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Cash and Cash Equivalents**

The Company considers all short-term investments, which are highly liquid investments with original maturities of three months or less at the date of purchase, to be cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Restricted Deposits**

Restricted deposits held in interest bearing saving accounts which are used as a security for the Group's credit card and lease obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Accounts Receivable and Allowance for Credit Losses**

Accounts receivables are recorded at the invoiced amount, net of an allowance for credit losses. The Group evaluates its outstanding accounts receivables and establishes an allowance for credit losses based on information available on their credit condition, current aging, historical experience, future economic and market conditions. The allowance for credit losses is reevaluated and adjusted periodically as additional information is available. Provision for credit losses are recorded under general and administrative expenses in the consolidated statements of operations. The allowance for credit losses as of December 31, 2025 and 2024 is 0$.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Property and Equipment**

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line basis over the estimated useful lives, at the following annual rates:

---

| | |
|:---|:---|
|  | **%** |
| Computers and peripherals equipment | 33 |
| Office furniture and equipment | 6-15 |
| Leasehold improvements | (\*) |

---

(\*) Over the shorter of the lease term (including options if any that are reasonably certain to be exercised estimated useful life).

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. Leases**

In accordance with ASC No. 842 "Leases", the Company determines if an arrangement is a lease at inception. If an arrangement is a lease, the Company determines whether it is an operating lease or a finance lease at the lease commencement date. Operating leases are included in operating lease right-of-use asset, operating lease liabilities – current, and non-current operating lease liabilities in the Company's consolidated balance sheets.

Operating lease right-of-use assets represent the Company's right to control the use of an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the estimated lease.

Operating lease right-of-use assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term.

The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The incremental borrowing rate is estimated based on factors such as the lease term, credit standing and the economic environment of the location of the lease. Variable lease payments, including payments based on an index or a rate, are expensed as incurred and are not included within the operating lease right-of-use asset and operating lease liabilities. The Company does not separate non-lease components from lease components for its leases of real estate.

The Company's lease terms were the noncancelable periods, including any rent-free periods provided by the lessor, and included options to extend or terminate the lease when it was reasonably certain that the Company will exercise the option to extend or will not exercise the option to terminate. Lease costs were recognized on a straight-line basis over the lease term.

The Company does not recognize operating lease right-of-use asset and operating lease liabilities for leases with terms shorter than 12 months (the "short-term leases"). Lease costs for short-term leases are recognized on a straight-line basis over the lease term.

When a lease is terminated before the expiration of the lease term, the Company derecognizes the operating right-of-use asset and corresponding lease liability. Any difference is recognized as a gain or loss related to the termination of the lease.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Revenue Recognition**

As described in notes 1.A and 1.C, prior to the date of deconsolidation of Quantum Inc. the Company generates revenues from obtaining internet user traffic and routing such traffic to its customers. The Company is entitled to receive consideration for its service upon each individual internet user traffic routed to and monetized by its customers.

The Company's revenues are measured according to the ASC 606, "Revenue from Contracts with Customers" ("ASC 606"). Under ASC 606, revenues are measured according to the amount of consideration that the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties, such as VAT taxes. Revenues are presented net of VAT. The Company's payments terms are less than one year. Therefore, no finance component is recognized.

As the Company operates as the primary obligor in its arrangements and has sole discretion in determining to which of its customers internet user traffic is to be routed, revenues are presented on a gross basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. Traffic-acquisition and Related Costs**

Traffic acquisition and related costs consist primarily of fees paid to suppliers in connection with the Company's internet traffic sources, as well as internal costs incurred in connection with the acquisition of such traffic. Traffic acquisition costs are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K. Research and Development Expenses**

Research and development costs are charged to the consolidated statements of operations as incurred, except for certain costs relating to internally developed software, which are capitalized.

The Company capitalizes certain internal**-**use software development costs, consisting of direct subcontractors' costs associated with creating the internally developed software. Software development projects generally include three stages: (i) the preliminary project stage (all costs expensed as incurred); (ii) the application development stage (costs are capitalized) and (iii) the post implementation/operation stage (all costs expensed as incurred).

The costs capitalized in the application development stage primarily include the costs of designing the application, coding and testing of the software. Capitalized costs are amortized using the straight-line method over the estimated useful life of the software, once it is ready for its intended use.

The Company believes that the straight-line recognition method best approximates the manner in which the expected benefit of the software will be derived. Management evaluates the useful lives of these software on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these software.

The Company did not capitalize internal-use software development costs during the years ended December 31, 2025 and 2024.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L. Income Taxes**

The Company accounts for income taxes in accordance with ASC 740, "Income Taxes", (the "ASC 740"). ASC 740 prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized.

Uncertain tax positions are accounted for in accordance with the provisions of ASC 740-10, under which a company may recognize the tax benefit from an uncertain tax position claimed or expected to be claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxation authorities, based on the technical merits of the position, at the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties, if any, related to unrecognized tax benefits, are recognized in tax expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**M. Contingencies**

The Company records accruals for loss contingencies arising from claims, litigation and other sources when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available. Legal costs incurred in connection with loss contingencies are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**N. Fair Value of Financial Instruments**

Fair value is defined as the price that would be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement date. US GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets.

● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**O. Debt Modification and Extinguishments of Debts**

The Company evaluates amendments to its debt agreements in accordance with ASC 470-50 Debt–Modification and Extinguishments for modification and extinguishment accounting.

This evaluation includes comparing the net present value of cash flows of the new debt to the old debt to determine if changes greater than 10 percent occurred. In instances where the net present value of future cash flows changed more than 10 percent, the Company applies extinguishment accounting and determines the fair value of its debt based on factors available to the Company. If the amendments are determined to represent a substantial difference in the instrument's terms, the modification is accounted for as an extinguishment of the financial instrument and the reissuance if a new instrument, such that the difference between the fair value of the instrument as of the date of modification and its carrying value as of such date is recorded as finance gain or loss in the Company's statement of comprehensive income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**P. Business Combinations**

The Company accounts for its business combinations in accordance with ASC 805, "Business Combinations" (the "ASC 805"). ASC 805 specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. ASC 805 requires recognition of assets acquired, liabilities assumed and any non-controlling interest at the acquisition date, measured at their fair values as of that date.

Acquisition-related intangible assets result from the Company's acquisitions of businesses accounted for under the acquisition method and consist of the fair value of identifiable intangible assets including customer relations, technology, as well as goodwill. Goodwill is the amount by which the acquisition cost exceeds the fair values of identifiable acquired net assets on the date of purchase. Acquisition-related definite lived intangible assets are reported at cost, net of accumulated amortization. For transactions between entities under common control see note 1.B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Q. Goodwill**

The Company's goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired.

Goodwill is not amortized but instead is tested for impairment, in accordance with ASC 350, "Intangibles – Goodwill and Other" (the "ASC 350"), at the reporting unit level, at least annually at December 31 each year, or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.

The goodwill impairment test is performed by evaluating an initial qualitative assessment of the likelihood of impairment. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed.

In the impairment test, the Company compares the fair value of the reporting unit to the carrying value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, then the second step of the impairment test is performed to measure the amount of the impairment (see note 6.B).

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**R. Intangible Assets, Other than Goodwill**

Intangible assets are identifiable non-monetary assets that have no physical substance. Intangible assets with indefinite useful lives are not amortized and are tested for impairment once a year, or whenever there is a sign indicating that impairment may have occurred, in accordance with ASC 350. An estimate of the useful life of intangible assets with an indefinite useful life is examined at the end of each reporting year. A change in the estimated useful life of an intangible asset that changes from indefinite-lived to finite-lived is treated prospectively.

Intangible assets with a finite useful life are amortized in a straight line over their estimated useful life subject to impairment testing. A change in the estimated useful life of an intangible asset with a finite useful life is treated prospectively.

The useful life used to amortize intangible assets with a finite useful life is at the following annual rates:

---

| | |
|:---|:---|
|  | **%** |
| Customer relations | 14.3 |
| Technology | 10.0-22.2 |
| Internal**-**use software | 33.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**S. Impairment of Long-lived Assets**

The Company's long-lived assets to be held or used, including property and equipment, right-of-use assets and intangible assets subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plants and Equipment" (the "ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**T. Derivative Financial Instruments**

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, "Derivatives and Hedging". Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of comprehensive income.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**U. Share-based Compensation**

The Company accounts for share-based compensation in accordance with ASC 718, "Stock Compensation" ("ASC 718"), which requires companies to estimate the fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period, in the Company's consolidated statements of operations.

The Company selected the Black-Scholes option pricing model as the most appropriate fair value method for its share options awards. The option-pricing model requires several assumptions, of which the most significant are the expected share price volatility and the expected option term. The Company recognizes share-based compensation cost for equity awards on an accelerated basis over the employee's requisite service period and accounts for forfeitures as they occur. For restricted stock units, the fair value is based on the closing trading price of the underlying shares at the date of grant.

The compensation expenses are recognized using the graded vesting attribution method based on the vesting terms of each unit granted resulting in an accelerated recognition of compensation costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. Warrants**

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and in accordance with ASC 480, "Distinguishing Liabilities from Equity" (the "ASC 480"), and ASC 815, "Derivatives and Hedging" (the "ASC 815"). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued warrants that meet all of the criteria for equity classification, the warrants are recorded as a component of additional paid-in capital at the time of issuance. For issued warrants that do not meet all the criteria for equity classification, the warrants are classified as liability and are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**W. Net Loss Per Share**

In accordance with ASC 260, "Earnings Per Share" (the "ASC 260"), basic net earnings per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net earnings per share reflects the potential dilution that could occur if share options, warrants or other commitments to issue ordinary shares were exercised or restricted stock units or other equity awards vested, resulting in the issuance of ordinary shares that could share in the net loss of the Company.

For periods in which the Company has generated a net loss, the Company's basic net loss per share is the same as diluted net income (loss) per share, as the effects of ordinary stock equivalents outstanding and ordinary shares issuable upon exercise of share options or warrants are antidilutive and therefore excluded from the calculation of diluted net income (loss) per share.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X. Segment Reporting**

The Company reports financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria as defined in ASC 280, "Segments Reporting".

Operating segments are distinguishable components of an entity for each of which a separate financial information is available and have the potential to earn revenues and incur expenses and is reported in a manner consistent with the internal reporting provided to the entity's Chief Operating Decision Maker ("CODM") in making decisions about how to allocate resources and in assessing performance. The review of the CODM is carried out according to the results of the segment's activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Y. Investments in Affiliated Company**

An affiliated company is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee. The Group is presumed to have significant influence when it holds 20 percent or more of the voting rights of an investee, unless it can be clearly demonstrated that this is not the case. The Group does not control its affiliated company.

Under the equity method, an investment in an affiliated company is recognized initially in the consolidated statements of comprehensive income at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the affiliated company. Dividends received or receivable from affiliated company are recognized as a reduction in the carrying amount of the investment. When the Group's share of losses of an affiliated company or exceeds the Group's interest in that affiliated company (which includes any long-term interests that, in substance, form part of the Group's net investment in the affiliated company), the Group discontinues recognizing its share of further losses.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Z. Deconsolidation of a Subsidiary**

The Company accounts for the deconsolidation of a subsidiary by recognizing a net income attributable to the shareholders of the Company measured as the difference between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
 aggregate of all of the following: (1) the fair value of any consideration received and (2) the carrying amount of any non-controlling
 interest in the former subsidiary (including any accumulated other comprehensive income attributable to the non-controlling interest)
 at the date the subsidiary is deconsolidated.

b. The
 carrying amount of the former subsidiary's assets and liabilities.

**AA. Recent accounting pronouncements**

*ASU 2023-07, Segment Reporting (Topic 280)*

In November 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-07, "Improvements to Reportable Segment Disclosures,". The ASU's effective date is for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of the ASU 2023-07 enhances expense disclosures in segment reporting and other qualitative disclosures and allows for disclosing multiple measures of segment profit or loss (see also note 17).

*ASU 2023-09, Income Taxes (Topic 740)*

December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – "Improvements to Income Tax Disclosures". The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this ASU are required to be adopted starting January 1, 2025. The amendments should be applied on a prospective basis. There is no material impact from the adoption of this standard on the Company's financial statements.

*ASU 2024-04, "Debt-Debt with Conversion and Other Options (Subtopic 470-20)*

In November 2024, the FASB issued ASU 2024-04, "Debt-Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments". The amendments in this Update affect entities that settle convertible debt instruments for which the conversion privileges were changed to induce conversion. This ASU is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. There is no material impact from the adoption of this standard on the Company's financial statements.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

**AA. Recent accounting pronouncements (Cont.)**

The following is accounting pronouncement that is not yet effective for the Company:

*ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)*

In November 2024, the FASB issued ASU 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses".

The amendments in this Update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments require that at each interim and annual reporting period an entity: 1. Disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (DD&A) (or other amounts of depletion expense) included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the expense categories listed in (a)–(e). 2. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements. 3. Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. 4. Disclose the total

amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. An entity is not precluded from providing additional voluntary disclosures that may provide investors with additional decision-useful information. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The Company is in the process of evaluating the potential impacts on its financial statements that could arise from the adoption of this standard.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 3: OTHER CURRENT ASSETS**

**Composition:**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| Prepaid expenses | 23 | 75 |
| Government authorities | 123 | 526 |
| Deferred debt issuance costs (see notes 10.G, 10.F and 10.K) | 1021 | 638 |
| Other receivables | 4 | 65 |
|  | 1171 | 1304 |

---

**NOTE 4: PROPERTY AND EQUIPMENT, NET**

**Composition:**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| Cost: |  |  |
| Computers and peripheral equipment | 222 | 519 |
| Office furniture and equipment | 14 | 16 |
| Total cost | 236 | 535 |
| Less: accumulated depreciation | (127) | (507) |
| Property and equipment, net | 109 | 28 |

---

Depreciation expenses totalled $57 and $131 for the years ended December 31, 2025 and 2024 respectively.

**NOTE 5: LEASES**

On February 25, 2021, Gix Media entered into a lease agreement for a new corporate office of 479 square meters in Ramat Gan, Israel, at a monthly rent fee of $10. The lease period was for 36 months (the "initial lease period") with an option by the Company to extend the lease period for two additional terms of 24 months each. In accordance with the lease agreement, the Company made leasehold improvements in exchange for a rent fee discount of $67 which will be spread over the initial lease period.

The Company included renewal options as it was reasonably certain to exercise the option to extend the lease in the measurement of the lease liabilities. In December 2023, the Company exercised the option to extend the lease period for an additional term of 24 months (from March 1, 2024, to February 28, 2026).

On June 20, 2024, Gix Media and the lessor of its corporate offices entered into a lease termination agreement. According to the agreement, the lease, which originally had a termination date of February 28, 2026, was terminated on June 30, 2024. In compensation for the lessor's consent to an early termination, Gix Media paid the lessor $7 in cash and $62 in office furniture and equipment, representing the carrying values of such assets on the Company's books as of the early termination date.

As a result of the early termination of the agreement, the Company recorded a capital loss of $46 in other expense, net in its statement of comprehensive income for the year ended December 31, 2024.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 6: GOODWILL AND INTANGIBLE ASSETS, NET**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Composition:** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Internal-use Software** | **Customer Relations** | **Technology** | **Goodwill** | **Total** |
| **Cost:** |  |  |  |  |  |
| **Balance as of January 1, 2025** | 465 | 2608 | 4640 | 9950 | 17663 |
| Impairment of goodwill (see note 6.B) |  |  |  | (6105) | (6105) |
| Acquisition of a subsidiary (see note 7.D) |  |  | 3183 | 2781 | 5964 |
| Acquisition of a subsidiary by a subsidiary (see note 7.C) |  | 420 | 760 | 5125 | 6305 |
| Deconsolidation of Quantum Inc. (see note 7.E) | (465) | (3028) | (5400) | (8970) | (17863) |
| Balance as of December 31, 2025 | - | - | 3183 | 2781 | 5964 |
| **Accumulated amortization:** |  |  |  |  |  |
| Balance as of January 1, 2025 | (429) | (1705) | (2490) |  | (4624) |
| Amortization recognized during the year | (36) | (263) | (814) |  | (1113) |
| Deconsolidation of Quantum Inc. (see note 7.E) | 465 | 1968 | 3145 | - | 5578 |
| Balance as of December 31, 2025 | - | - | (159) |  | (159) |
| **Amortized cost:** |  |  |  |  |  |
| **As of December 31, 2025** | - | - | 3024 | 2781 | 5805 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Internal-use Software** | **Customer Relations** | **Technology** | **Goodwill** | **Total** |
| **Cost:** |  |  |  |  |  |
| **Balance as of January 1, 2024** | 465 | 2608 | 4640 | 11975 | 19688 |
| Impairment of goodwill | - | - | - | (2025) | (2025) |
| Balance as of December 31, 2024 | 465 | 2608 | 4640 | 9950 | 17663 |
| **Accumulated amortization:** |  |  |  |  |  |
| Balance as of January 1, 2024 | (276) | (1465) | (1714) |  | (3455) |
| Amortization recognized during the year | (153) | (240) | (776) | - | (1169) |
| Balance as of December 31, 2024 | (429) | (1705) | (2490) | - | (4624) |
| **Amortized cost:** |  |  |  |  |  |
| **As of December 31, 2024** | 36 | 903 | 2150 | 9950 | 13039 |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 6: GOODWILL AND INTANGIBLE ASSETS, NET (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Impairment of goodwill:**

As of the deconsolidation of Quantum Inc. (see note 7.E) and December 31, 2024, the Company identified indicators of impairment of the digital content reporting unit. As a result, the Company performed an impairment test which included a quantitative analysis of the fair value of the reporting unit. The estimation of the fair value as of deconsolidation of Quantum Inc. was based on indications of the consideration payable, in connection with the sale of Cortex, whose operations are attributable to the digital content reporting unit and as of December 31, 2024, the fair value was estimated using the income approach, which is based on the present value of the future cash flows attributable to the reporting unit. The Company compared the fair value of the reporting unit to its carrying amount. As the carrying amount exceeded the fair value, the Company recognized an impairment loss of $6,105 and $2,025 for the years ended December 31, 2025, and 2024, respectively, which was driven mainly due to the Cortex Adverse Effect (see note 1.D) and due to a decrease in the cash flow projections.

As of December 31, 2025, the Company also performed a quantitative impairment test of the Autonomous Robots reporting unit, in respect of which no impairment loss was recorded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Estimated annual amortization expense as of December 31, 2025 for each of the next four years is as follows:**

---

| | |
|:---|:---|
| 2026 | 318 |
| 2027 | 318 |
| 2028 | 318 |
| 2029 | 318 |

---

**NOTE 7: BUSINESS COMBINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Gix Media Acquisition**

On July 18, 2017, the acquisition of Gix Media was completed. As part of the acquisition, the Company acquired all of the issued and outstanding share capital of Gix Media, including its subsidiaries and sub-subsidiaries.

The Company paid to the former shareholders of Gix Media a total of approximately $9,000. In addition, following the closing date of the acquisition and in accordance with the settlement mechanism agreed upon by the parties, an additional amount of approximately NIS 3,481 ($1,091) was paid to the former shareholders.

The Company recognized the fair value of the acquired assets and assumed liabilities as part of the business combination, based on a valuation performed by an external counsel regarding the fair value of the identifiable acquired assets and liabilities.

**Fair Value of Gix Media's Identifiable Assets and Liabilities as of July 18, 2017:**

---

| | |
|:---|:---|
| Technology | 3248 |
| Deferred taxes | (520) |
| Customer Relations | 6336 |
| Deferred taxes | (1014) |
| Acquired assets, net | 978 |
| Goodwill arising from the acquisition | 3017 |
| **Total acquisition cost** | 12045 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Cortex Acquisition**

On October 13, 2021, Gix Media acquired 70% (on a fully diluted basis) of the shares of Cortex, a private company operating in the field of online media and advertising. In consideration for the Cortex Transaction, Gix Media paid NIS 35 million in cash (approximately $11 million). The financing of the Cortex transaction was carried out through bank financing provided by Bank Leumi Le Israel Ltd (the "Bank Leumi"), which extended approximately NIS 3 million ($0.9 million) to the Company and approximately $9.5 million to Gix Media, in addition to the Company's equity and a loan to the Company from Xylo in the amount of approximately NIS 4 million.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 7: BUSINESS COMBINATION (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Cortex Acquisition (Cont.)**

On January 23, 2023, Gix Media acquired an additional 10% of Cortex, increasing its holdings to 80% of the share capital of Cortex in consideration for $2.6 million (the "Subsequent Purchase"). The Subsequent Purchase was financed by Gix Media's existing cash balances and by a long-term bank loan received on January 17, 2023, in the amount of $1.5 million (see note 10.B).

**Fair Value of Cortex's Identifiable Assets and Liabilities as of October 13, 2021:**

---

| | |
|:---|:---|
| Cash and cash equivalents | 775 |
| Restricted deposits | 29 |
| Trade receivables | 10662 |
| Other accounts receivables | 346 |
| Property and equipment | 10 |
| Goodwill arising from the acquisition | 9581 |
| Technology | 4640 |
| Customer relations | 1673 |
| **Total assets** | 27716 |
| Accounts payables | 8906 |
| Short-term loan | 1500 |
| Accrued expenses and other current liabilities | 854 |
| Deferred taxes and taxes payable | 758 |
| **Total liabilities** | 12018 |
| Non-controlling interests | 4709 |
| **Total acquisition cost** | 10989 |

---

On November 9, 2025, Gix Media, Cortex, and certain founders of Cortex entered into a share purchase agreement (the "Cortex Sale Agreement") with Pro Sportority (Israel) Ltd. (the "Purchaser"), a subsidiary of Minute Media Inc. (the "MM"). Pursuant to the Cortex Sale Agreement, the Purchaser acquired from Gix Media all of its holdings in Cortex, representing 80% of Cortex's issued and outstanding share capital.

The aggregate consideration paid to Gix Media was $800,000, consisting of (i) $200,000 in cash, and (ii) $600,000 in the form of 5,161 newly issued Preferred J Shares of MM (the "MM Shares"), the most senior class of preferred shares of MM.

MM retains a call option to repurchase the MM Shares from Gix Media under certain conditions, including insolvency or a change of control of Gix Media. In addition, Gix Media is subject to a two-year non-compete and non-solicitation covenant following the Closing Date.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 7: BUSINESS COMBINATION (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Metagramm Acquisition**

On July 31, 2024, the Viewbix Inc. entered into a securities exchange agreement (the "2024 SEA") with Metagramm pursuant to which the Viewbix Inc. agreed to issue to Metagramm 9.99% of its issued and outstanding share capital in exchange for 19.99% of Metagramm's issued and outstanding share capital.

On March 24, 2025 (the "Closing Date"), Quantum Inc. entered into a new securities exchange agreement with the shareholders of Metagramm (the "2025 SEA") which replaced and terminated the 2024 SEA.

Pursuant to the 2025 SEA, Quantum Inc. acquired 100% of Metagramm's shares in exchange for consideration of $5,159. The consideration was paid to Metagramm's shareholders in the form of 1,323,000 common shares of Quantum Inc., representing 19.99% of Quantum Inc.'s issued and outstanding share capital immediately following the acquisition (the "Metagramm Acquisition").

In addition, Quantum Inc. agreed to pay Metagramm's shareholders cash earn-out payments on a pro rata basis of up to a cumulative sum of $2.0 million, contingent on achieving certain financing and revenue milestones within 3 years following the Closing Date (the "Earn Out Term").

**Fair Value of Metagramm's Total Consideration Transferred:**

---

| | |
|:---|:---|
| Consideration paid in Quantum Inc.'s common shares (1) | 5159 |
| Earn-out liability arising from the acquisition (2) | 1010 |
| **Fair value of total consideration transferred** | **6169** |
| **Recognized amounts of identifiable assets acquired and liabilities assumed:** |  |
| Cash and cash equivalents | 12 |
| Other current assets | 18 |
| Property and equipment | 106 |
| Technology, net of deferred taxes | 585 |
| Customer Relations, net of deferred taxes | 323 |
| **Total identifiable net assets** | 1044 |
| Goodwill arising from the acquisition | 5125 |
|  | **6169** |

---

The total consideration transferred was allocated to the fair value of assets acquired and liabilities assumed as of March 24, 2025, with the excess of the total consideration transferred over net assets acquired recorded as goodwill.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 7: BUSINESS COMBINATION (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Metagramm Acquisition (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 consideration paid is equal to 19.99% of the Quantum Inc's issued and outstanding common shares on a post-closing basis, totalling
 to 1,323,000 of common shares of Quantum Inc. and representing a total fair value of $5,159.

(2) According
 to the Earn Out Term Quantum Inc. agreed to pay the Metagramm shareholders cash earn-out payments on a pro rata basis of up to a
 cumulative sum of $2,000, contingent upon the achievement of certain financing and revenue milestones during the 3-year period following
 the Closing Date (the "Earn Out Term") as the following: (1) a cash payment equal to 5% of each Equity Financing Amount
 raised by Quantum Inc. after the Closing Date until the lapse of the Earn Out Term, up to a total amount of $1,000, "Equity
 Financing Amount" shall mean equity proceeds received by Quantum Inc. after the Closing Date in consideration for issuance
 of shares of Quantum Inc., at a fixed company valuation (not including amounts raised under convertibles loans or other loans, employee
 stock options, etc.), (2) a cash payment of $1,000 contingent upon the Metagramm ARR exceeding $2,000 during the Earn Out Term. "Metagramm
 ARR" shall mean the net recurring annual fees for the Metagramm's software-as-a-service subscriptions and managed services
 booked by the Metagramm during the applicable measurement period and included in firm, non-cancellable contracts (other than customary
 termination provisions) that have a term of at least one year, so long as the initial subscription or managed service billing contemplated
 by any such contract has occurred by its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Deliverz Acquisition**

On July 10, 2025 (the "Closing Date"), the Company entered into an agreement with Deliverz and all shareholders of Deliverz (the "Sellers"), pursuant to which the Company acquired all shares of Deliverz from the Sellers in consideration for the issuance of 518,770 shares of the Company which equal to 25% of the Company's ordinary shares on the Closing Date to the Sellers and issuance of 103,754 ordinary shares of the Company which equal to 5% of the Company's ordinary shares on the Closing Date to the initiator (the "Deliverz Transaction").

As part of the agreement, several milestones were established as follows: (a) if within 18 months from the Closing Date, Deliverz successfully completes commercial transactions (as defined in the agreement) for the supply of 20 autonomous delivery robots, the Company will issue an additional 236,559 of its ordinary shares to the Sellers and additional ordinary shares to the initiator up to 12,450 of the Company's ordinary shares, (b) If within 48 months from Closing date, Deliverz completes commercial transactions for the supply of 200 autonomous delivery robots, the Company will issue an additional 301,075 ordinary shares to the Sellers and additional shares to the founder up to 15,846 ordinary shares of the Company.

The Company's commitment to finance Deliverz's working capital needs in a total amount of NIS 3.6 million ($1.1 million), to be provided by the Company in 12 monthly instalments starting from the Closing Date of the Deliverz Transaction with the loan to Deliverz bearing the same terms as the loan from Pure Capital (see note 10.J). In addition, the Company's Board of Directors approved the provision of a loan to Deliverz in the amount of NIS 1.452 million ($0.45 million), which was extended to Deliverz as a loan by Pure Capital Ltd. (hereinafter – "Pure Capital").

Furthermore, the Sellers signed a waiver of dividend rights in the event of an in-kind distribution of Quantum Inc. shares, and also agreed to sign a waiver in the event that the Company sells the Quantum Inc. shares it holds and distributes the net proceeds from such sale to its shareholders.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 7: BUSINESS COMBINATION (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Deliverz Acquisition (cont.)**

**Fair Value of Deliverz's Total Consideration Transferred:**

---

| | |
|:---|:---|
| Consideration paid in Company's shares (1) | 2828 |
| Contingent consideration transferred in Company's shares (2) | 1853 |
|  | **4681** |
| **Acquisition-related costs (3)** | 566 |
| **Recognized amounts of identifiable assets acquired and liabilities assumed:** |  |
| Cash and cash equivalents | 19 |
| Other current assets | 6 |
| Property and equipment | 6 |
| Accounts payable | (10) |
| Short-term loans | (457) |
| Other payables | (115) |
| Technology, net of deferred taxes | 2451 |
| **Total identifiable net assets** | 1900 |
| Goodwill arising from the acquisition | 2781 |
|  | **4681** |

---

The total consideration transferred was allocated to the fair value of assets acquired and liabilities assumed as of July 10, 2025, with the excess of the consideration transferred recorded as goodwill. The goodwill is not anticipated to be deductible for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 consideration paid is equal to 25% of the Company issued and outstanding ordinary shares on a post-closing basis, totalling to 518,770
 of ordinary shares of the Company based on the Company's share price on the TASE on the closing date, representing a total
 value of $2,828.

(2) As
 part of the agreement, several milestones representing a total value of $1,853 were established as follows: (a) If within 18 months
 from the closing date, Deliverz successfully completes commercial transactions for the supply of 20 autonomous delivery robots, the
 Company will issue an additional 236,559 of its ordinary shares to Deliverz's shareholders, (b) If within 48 months from Closing
 date, Deliverz completes commercial transactions for the supply of 200 autonomous delivery robots, the Company will issue an additional
 301,075 ordinary shares to Deliverz's shareholders.

(3) The
 acquisition-related costs paid is equal to 5% of the Company issued and outstanding ordinary
 shares on a post-closing basis, totalling to 103,754 of ordinary shares of the Company based
 on the Company's share price on the TASE on the closing date, representing a total
 value of $566 and were initially recognized as other expenses in the Company consolidated
 statement of comprehensive income against additional paid in capital in the Company consolidated
 statement of changes in shareholders' equity.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 7: BUSINESS COMBINATION (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Deconsolidation of Quantum Inc.**

During the year ended December 31, 2025, Quantum Inc. issued of 5,373,447 common shares as part of facility agreements entered into in June and July 2024, private placement transactions entered into in July 2024 and July 2025, the acquisition of Metagramm and exercises of warrants into Quantum Inc. common stock (see notes 10.F-10.G, 13.B), which decreased the Company's holdings in Quantum Inc. to 26.42% as of December 31, 2025, compared to 53.31% as of December 31, 2024.

In addition, on September 25, 2025, Quantum Inc. announced that Mr. Amihay Hadad and Mr. Liron Carmel, two serving directors appointed by the Company, had completed their terms as directors of Quantum Inc., they were replaced by two newly appointed directors (the "Change in the Composition of the Board of Directors"). As a result of the Change in the Composition of the Board of Directors, the number of directors serving on behalf of the Company decreased to below 50% of the serving directors of Quantum Inc. as of the date following the Change in the Composition of the Board of Directors (the "Change of Control of Quantum Inc."). Following the decrease in the Company holdings in Quantum Inc. and the Change of Control of Quantum Inc., the Company deconsolidated the assets, liabilities and financial results of Quantum Inc. (the " Deconsolidation of Quantum Inc."), since it owns 26.42% in Quantum Inc., the Company accounts for its investment in Quantum Inc. using the equity method.

**The table below summarizes the statement of comprehensive income of Quantum Inc. for the period from January 1, 2025 through the date of Deconsolidation of Quantum Inc.:**

---

| | |
|:---|:---|
| **Revenues** | 7731 |
| **Operating loss** | (9523) |
| **Loss before income taxes** | (20716) |
| **Net loss** | (20215) |
| Less: net loss attributable to non- controlling interests | (1496) |
| **Net loss attributable to shareholders of Quantum Inc.** | (18719) |

---

As of the date of the Deconsolidation of Quantum Inc., the new cost basis of Quantum Inc.'s shares was determined based on the market price of Quantum Inc.'s shares on the Nasdaq Stock Market as of the date of the Deconsolidation of Quantum Inc. (the "Market Value"). As a result, the Company recognized income in the amount of $6,731, in the Company's statement of comprehensive income, representing the difference between the Market Value and the carrying amount of Quantum Inc. assets and liabilities as of the date of the Deconsolidation of Quantum Inc. In addition, as part of using the equity method the non-controlling interests of Quantum Inc. was derecognized as of the date of the Deconsolidation of Quantum Inc. and accordingly the amount of $4,591 was recorded against non-controlling Interests in the Company's consolidated statements of changes in shareholders' equity as of December 31, 2025.

**NOTE 8: ACCOUNTS PAYABLE**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Trade payables |  | 108 |  | 4124 |
| Accrued expenses | | 426 | | 2,293 |
|  | | 534 | | 6,417 |

---

**NOTE 9: OTHER PAYABLES**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Government authorities |  |  |  | 293 |
| Employees and payroll accruals |  | 148 |  | 352 |
| Accrued interest |  | 369 |  | 220 |
| Other payables | | 53 | | 124 |
|  | | 570 | | 989 |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Composition of long-term loans, short-term loans, and credit lines of the Group:**

The following is the composition of the balance of the Group's loans according to their nominal value:

---

| | | | |
|:---|:---|:---|:---|
|  | **Interest rate** | **As of December 31, 2025** | **As of December 31, 2024** |
| Long - term loan - Gix Internet (see note 10.D) | Prime + 2.92% | 901 | 864 |
| Short - term loan - Gix Internet July 2025 Credit Facility (see note 10.K) | 10% | 1572 |  |
| Long-term loan - Gix Internet Pure Capital loan (see note 10.J) | 6% | 339 |  |
| Short-term bank loans - Gix Media | SOFR + 4.60% |  | 1138 |
| Short-term bank loan - Cortex | SOFR + 4.35% |  | 830 |
| Long-term bank loan, including current maturity - Gix Media (received on October 13, 2021) | SOFR + 4.12% |  | 2564 |
| Long-term bank loan, including current maturity - Gix Media (received on January 17, 2023) | SOFR + 5.37% |  | 996 |
| Short-term loan – June 2024 Facility Agreement – Quantum Inc. | 12% |  | 342 |
| Short-term convertible loan – June 2024 Facility Agreement – Quantum Inc. | 12% |  | 649 |
| Short-term convertible loan – First July 2024 Facility Agreement – Quantum Inc. | 12% |  | 50 |
| Short-term convertible loan – Second July 2024 Facility Agreement – Quantum Inc. | 12% | - | 80 |
|  |  | 2812 | 7513 |

---

**Maturities of the Group's loans as of December 31, 2025 are as follows:**

---

| | |
|:---|:---|
| 2026 | 2812 |
| Total | 2812 |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Gix Media's Loan Agreement with Bank Leumi:**

In connection with the Cortex Transaction (see note 7.B), on October 13, 2021, Gix Media entered into a financing agreement with Bank Leumi, an Israeli bank, for the provision of a line of credit in the total amount of up to $3,500 bearing annual interest of SOFR + 3.2% (the "Gix Media Credit Line"), and a long-term loan totaling $6,000, which will be repaid in 48 monthly payments at an annual interest rate of SOFR + 4.12% (the "Financing Agreement").

As of January 1, 2023, Gix Media has drawn $3,500 of the Gix Media Credit Line and the outstanding balance of the long-term loan amounted to $4,381.

On January 23, 2023, Gix Media acquired an additional 10% of Cortex's capital shares (see notes 1.A and 7.B) which was financed by Gix Media's existing cash balances and by an additional loan received from Bank Leumi in the amount of $1,500 to be repaid in 42 monthly payments at an annual interest rate of SOFR + 5.37%.

On June 13, 2024, Gix Media and Bank Leumi entered into a third addendum to the Financing Agreement between the parties which was effective from May 15, 2024, pursuant to which, inter alia: (i) the addendum will be effective until August 31, 2024; (ii) the Company will transfer to Gix Media $600; (iii) a new covenant which replaced the previous financial covenant, requiring positive EBITDA as measured by reference to the trailing 12 months as of each quarterly balance sheet date, was implemented; (iv) all payments due to Bank Leumi on the long-term loan were deferred to August 31, 2024 and from September 1, 2024, payments will be repaid as scheduled until the end of the long-term loan; (v) a new loan of $350 was provided to Gix Media on June 13, 2024 which was repaid in full on August 30, 2024, in addition to the Gix Media Credit Line which will remain equal to 80% of Gix Media's accounts receivable balance and (vi) Gix Media is obligated to perform a reduction in expenses, including reduction in human capital.

As of December 31, 2024, Gix Media has drawn $788 of the Gix Media Credit Line and the outstanding balance of the long-term loan amounted to $2,564.

Effective as of August 30, 2024, Gix Media and Bank Leumi entered into a fourth addendum to the Financing Agreement pursuant to which, inter alia: (i) subject to the receipt of at least $2,000 from the Company by no later than January 1, 2025, the Gix Media Credit Line will be extended until February 27, 2025 and (ii) the repayment of the outstanding principal amounts of the long-term loans of Gix Media under the Financing Agreement and an additional short-term loan in the amount of $160, will be deferred until December 31, 2024 and from January 1, 2025, all due payments will be repaid in accordance with the revised schedule as per the addendum until the end of the term of the long term loans.

On February 4, 2025, Gix Media and Bank Leumi entered into a fifth addendum to the Financing Agreement, which was effective as of January 29, 2025, according to which, inter alia: (i) the Gix Media Credit Line was extended to March 31, 2025, (ii) the repayment of the outstanding principal amounts of the long term bank loans of Gix Media under the Financing Agreement, was deferred until the actual deposit by the Company in Gix Media's account of an investment account equal to the amounts of the deferred long term bank loans owed by Gix Media (the "Investment Amount"), which in any event shall be no later than March 31, 2025 (the "Deposit Date"), (iii) upon such Deposit Date, all deferred payments will be immediately repaid using the deposited amounts and any remaining amounts from any other sources, (iv) all remaining future due payments will be repaid as scheduled until the end of the updated terms of each long term bank loan.

On March 30, 2025, Gix Media and Bank Leumi entered into a sixth additional addendum to the Financing Agreement, which extended the Deposit Date until May 20, 2025.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Gix Media's Loan Agreement with Bank Leumi (cont.):**

On July 8, 2025, Gix Media and Bank Leumi entered into an agreement in respect of the Financing Agreement, (the "July Loan Agreement") according to which, inter alia: (i) the Deposit Date will be extended until October 1, 2025 (ii) Gix Media agreed to repay $2.4 million to Bank Leumi by October 1, 2025, and (iii) subject to the full repayment of the $2.4 million, Bank Leumi would provide a new 24-month loan equal to the then outstanding balance of the loan. In July 2025, Gix Media repaid a total of $2.4 million to Leumi, in accordance with the July Loan Agreement.

As result of the deconsolidation of the balance sheet of Quantum Inc. on September 25, 2025, Gix Media's bank loans were not included in the Company's consolidated balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Cortex's Loan Agreement:**

On September 21, 2022, Cortex and Bank Leumi entered into an addendum to an existing loan agreement dated August 15, 2020 ("Cortex Loan Agreement"). As part of the addendum to the Cortex Loan Agreement, Bank Leumi provided Cortex with a monthly renewable line of credit of up to $1,500 (the "Cortex Credit Line"). The amount that can be drawn under Cortex Credit Line is determined every month at the level of 70% of Cortex's account receivable balance. The amounts that are drawn from the Cortex Credit Line bear an annual interest of SOFR + 3.52%.

On April 27, 2023, Bank Leumi increased the Cortex Credit Line by $1,000. In September 2023, Cortex and Bank Leumi entered into an additional addendum to the Cortex Loan Agreement, in which Bank Leumi extended the Cortex Credit Line by one year which will expire on September 20, 2024. The amounts that are drawn from the Cortex Credit Line bear an annual interest of SOFR + 4.08%.

On May 27, 2024, Cortex and Bank Leumi entered into an additional amendment to Cortex Loan Agreement, pursuant to which the amount that can be drawn under the line of credit to Cortex Credit Line was increased to 80% of Cortex's accounts receivable balance but not higher than $2,000.

On August 15, 2024, Cortex and Bank Leumi entered into an additional addendum to Cortex Loan Agreement, pursuant to which the Cortex Credit Line was reduced to $2,000 but was extended until February 27, 2025 and bears an annual interest of SOFR + 4.35%.

On February 28, 2025, Cortex and Bank Leumi entered into an additional amendment to the Cortex Loan Agreement, pursuant to which: (i) the line of credit of $1,000 for Cortex will be extended until December 12, 2025; (ii) Cortex will establish a first-ranking fixed pledge over the cash deposit held in the Cortex's Bank Leumi Account, up to a maximum of $100, no later than April 15, 2025, or three days following Cortex's receipt of its expected tax refund, whichever occurs first. This deposit may be released upon Cortex's submission of a financial report demonstrating two consecutive quarters of positive EBITDA, with a minimum of $75 per quarter.

As result of the deconsolidation Quantum Inc. on of September 25, 2025, Cortex's bank loan was not included in the Company's consolidated balance sheet.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Company's Loan Agreement with Xylo**

On October 12, 2021, the Company entered into loan agreement with Xylo Technologies Ltd. (the "Xylo" or the "Parent Company") pursuant to which the Company will received from Xylo a loan in the amount of approximately NIS 4 million ($1.25 million) (the "Loan Principal").

As of January 1, 2023, the outstanding balance of the loan from Xylo amounted to NIS 4 million ($1.25 million) and bears annual interest at a rate of Prime + 2.29%. Pursuant to the loan agreement, the loan is payable on June 30, 2023.

On August 28, 2023, the Company and Xylo agreed to extend the loan repayment until January 1, 2024 and, on November 8, 2023, Xylo provided an additional loan of NIS 100 ($31).

On February 8, 2024, and on August 22, 2024, the Company and Xylo agreed to extend the loan repayment until July 1, 2024, and December 31, 2024, respectively and on October 6, 2024, Xylo provided an additional loan of NIS 150 ($47).

On January 26, 2025, the Company and Xylo signed an addendum to the loan agreement, extending the loan repayment date to April 30, 2025. Additionally, Xylo provided an additional loan of NIS 150 ($47), while all other terms remained unchanged.

On August 31, 2025, the Company and Xylo agreed to extend the loan maturity date to June 30, 2026. All other terms of the loan will remain unchanged.

During the year ended December 31, 2025, the Company repaid a total of NIS 425 ($133) of the Loan Principal.

The loan repayment extensions and additional loans during the years ended December 31, 2025 and 2024 did not constitute a material modification of the terms of the loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Viewbix Ltd's Long Term Loan and Issuance of Warrants:**

On November 15, 2023, Viewbix Ltd. entered into a loan agreement (the "2023 Loan Agreement") with certain lenders (the "Lenders") whereby the Lenders provided Viewbix Ltd. with loans in the aggregate amount of $480 (the "2023 Loan"). In connection with the 2023 Loan, Quantum Inc. issued to each lender a warrant to purchase common shares (the "2023 Warrants"). The 2023 Warrants allow the holders to purchase 120,000 shares of common stock at an exercise price of $2.00 per share and will expire on December 31, 2025. The Company recorded the 2023 Warrants as an equity instrument.

The terms of the 2023 Loan Agreement were substantially amended on June 18, 2024 pursuant to the June 2024 Facility Agreement (see note 10.F). These amendments represented a substantial modification in accordance with ASC Topic 470. Accordingly, the amendment was accounted for as an extinguishment of the 2023 Loan and the initial recognition of new loan and financial instruments (the "2024 Loan") issued at their fair value as of the effective date of the June 2024 Facility Agreement. As a result of the amendment, the Company recognized finance expense of $1,914, representing the difference between the fair values of the 2023 Loan and the 2024 Loan as of such date, and the carrying amount of the 2023 Loan as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Quantum Inc's June 2024 Facility Agreement:**

On June 18, 2024, Quantum Inc. entered into a line of credit agreement with certain lenders for an amount of up to $1 million (the "June 2024 Facility Agreement"), which was amended on July 22, 2024. In addition to the $1 million line of credit, the terms of 2023 Loan in the amount of $531 from November 15, 2023 (see note 10.E above), which Quantum Inc. obtained from private lenders were also modified. As a result, the total line of credit amounted to $1.53 million (the "Total Credit Line"). The Total Credit Line will become payable 12 months from the date June 18, 2024, or, alternatively, if Quantum Inc. uplists its shares on the Nasdaq Stock Market ("Uplist") within 12 months of June 18, 2024, the repayment will be due 12 months from the Uplist date.

The Total Credit Line is available under the following terms: (a) $350 at June 18, 2024; (b) $150 upon submitting a prospectus for listing the shares to be issued to the lenders; and (c) $500 upon the Uplist.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Quantum Inc's June 2024 Facility Agreement (cont.):**

The Total Credit Line accrues annual interest at a rate of 12%, paid in advance at the time of signing the June 2024 Facility Agreement, in the amount of $184. The interest was paid through: (a) 183,679 common shares of Quantum Inc., reflecting a value of $1.00 per share per dollar of interest; and (b) 183,679 warrants to purchase 183,679 common shares of Quantum Inc. at an exercise price of $1.00 per warrant. The warrants have a term of three years from the issuance.

Upon the completion of the Uplist on June 5, 2025 (the "Uplist Date"), Quantum Inc. drew additional $500 of Total Credit Line and in addition, $663 of the Total Credit Line was automatically converted pursuant to its original terms into 662,957 units consisting each of a common share and a warrant to purchase common share of Quantum Inc., with a warrant term of three years from the conversion date, at an exercise price of $1.00. Lenders whose portion were not automatically converted have the option to convert their portion into 362,004 units, consisting each of a common share and a warrant to purchase common share of Quantum Inc. within 12 months from the Uplist Date, at a conversion price of $1.00 per unit. The warrants were recorded at fair value and were classified as equity.

Additionally, Quantum Inc. agreed to pay L.I.A. Pure Capital Ltd. (the "Lead Lender") a fee consisting of: (a) 50,000 common shares; and (b) 50,000 warrants to purchase 50,000 common shares at an exercise price of $1.00 per share. Furthermore, Quantum Inc. agreed to grant 625,000 warrants to purchase 625,000 common shares at an exercise price of $4.00 per share ("Lead Lender Warrants"). The warrants have a term of three years from the issuance.

In July 2024, following the completion of the private placement (see note 13.B), the exercise price of the Lead Lender Warrants granted under the June 2024 Facility Agreement was adjusted to $0.472, reflecting the effective price per share of each unit in the private placement. Accordingly, the number of Lead Lender Warrants was adjusted to 5,296,610 warrants, exercisable for 5,296,610 common shares, with a total aggregate exercise price of $2.5 million, consistent with the aggregate exercise price before applying the anti-dilution mechanism.

The conversion related features of the June 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date. Loans received in connection with the June 2024 Facility Agreement were initially recorded at its fair value and subsequently measured at cost. The shares and warrants issued as prepayment of interest and as a fee to the Lead Lender were initially recognized at fair value and classified as equity reserve for transactions with non-controlling interests, which is included under "Additional paid-in capital" in the consolidated statement of changes in equity.

The Lead Lender Warrants were initially recognized at fair value at the amount of $1,833 and classified as a liability measured at fair value at each balance sheet date. Following the closing of the private placement in July 2024 (see note 13.B) and the adjustments made to the number of shares in the Lead Lender Warrants as part of the June 2024 Facility Agreement, the Lead Lender Warrants were reclassified to equity.

On June 5, 2025, upon completion of the Uplist, Quantum Inc. drew additional $500 of the Total Credit Line which was recorded as a short-term convertible loan. In addition, immediately following the Uplist, $663 of the Total Credit Line was converted into units, which included 662,957 shares of common stock and the same amount of warrants, each warrant is exercisable into one share of common stock of Quantum Inc. at an exercise price of $1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity.

During June and July 2025, out of 896,636 warrants granted under the June 2024 Facility Agreement, 722,495 warrants were exercised into 722,495 shares of Quantum Inc.'s common stock. Quantum Inc. received total proceeds of $722 upon exercise of the warrants.

As result of the deconsolidation of Quantum Inc. on September 25, 2025, June 2024, Facility Agreement was not included in the Company's consolidated balance sheet.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Quantum Inc's First July 2024 Facility Agreement**

On July 4, 2024, Quantum Inc. entered into a line of credit agreement with a certain lender (the "First July 2024 Facility Agreement"). Under the First July 2024 Facility Agreement and its amendments dated July 22, 2024 and July 25, 2024, the lender will provide a total line of credit of $2.5 million (the "First July 2024 Facility Credit Line"), which will be available for use as follows: (a) $50 at the time of signing, (b) $50 upon the Uplist, and (c) following the Uplist, $200 will be available on a quarterly basis, up to a cumulative total of $2.5 million.

The First July 2024 Facility Agreement will become immediately payable upon the earliest of the following events: (a)(1) full utilization of the First July 2024 Facility Credit Line, (a)(2) 36 months from the signing date, or (b) if Quantum Inc. completes an equity fundraising of $2 million through issuance of its shares. The First July 2024 Loan Amount will accrue interest at an annual rate of 12%, to be prepaid for the first year through: (a) 300,000 common shares of Quantum Inc., reflecting a share price of $1.00 per share for each dollar of accrued interest on the full amount, and (b) 300,000 warrants to purchase 300,000 common shares of Quantum Inc. at an exercise price of $1.00 per warrant. The warrants will have a 3-year term from the signing date.

Immediately following the Uplist, $100 from the total First July 2024 Facility Credit Line will be automatically converted into common shares of Quantum Inc. at an exercise price of $1.00 per share. In addition, Quantum Inc. will issue an identical number of warrants to purchase common shares of Quantum Inc. at an exercise price of $1.00 per warrant. Furthermore, Quantum Inc. agreed to pay the lender a one-time fee consisting of: (a) 125,000 common shares of Quantum Inc., representing a 5% fee of the First July 2024 Facility Credit Line and assuming a share price of $1.00 per share, and (b) 250,000 warrants to purchase 250,000 common shares of Quantum Inc. at an exercise price of $1.00 per warrant (the "First July 2024 Facility Fees"). The warrants will have a 3-year term from the signing date of the First July 2024 Facility Agreement.

The First July 2024 Facility Fees and the prepaid interest were classified in the balance sheet as of December 31, 2024, as deferred fundraising expenses under "Other current assets" in the amount of $315, and will be amortized over the term of the First July 2024 Facility Agreement.

The conversion related features of the First July 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date.

In connection with the First July 2024 Facility Agreement, Quantum Inc. received a loan of $50 which was recorded as a short-term convertible loan. The fair value of this loan was substantially the same as the amount received. Warrants associated with the First July 2024 Facility Agreement were measured at fair value and classified as equity reserve for transactions with non-controlling interests, which is included under "Additional paid-in capital" in the consolidated statement of changes in equity.

On the Uplist Date, Quantum Inc. drew additional $50 of the First July 2024 Facility Credit Line. In addition, as part of the terms of the First July 2024 Facility Agreement, $100 of the amount drawn was converted into units which included 100,000 shares of common stock and the same amount of warrants of Quantum Inc., each warrant is exercisable into one share of common stock of Quantum Inc. at an exercise price of $1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity.

During June 2025, all 650,000 warrants granted under the First July 2024 Facility Agreement were exercised into 650,000 shares of Quantum Inc.'s common stock. Quantum Inc. received total proceeds of $650 upon exercise of the warrants.

As result of the deconsolidation of Quantum Inc. on September 25, 2025, First July 2024 Facility Agreement was not included in the Company's consolidated balance sheet.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. Quantum Inc's Second July 2024 Facility Agreement**

On July 28, 2024, Quantum Inc. entered into a line of credit agreement with certain lenders (the "Second July 2024 Facility Agreement") for a total amount of $3 million (the "Second July 2024 Facility Credit Line"). The Second July 2024 Facility Credit Line will become immediately payable upon the earliest of the following events: (a)(1) full utilization of the entire line of credit, (a)(2) 40 months from the signing date, or (b) if Quantum Inc. completes an equity fundraising of $2.5 million through the issuance of its shares.

The Second July 2024 Facility Credit Line will bear interest at an annual rate of 12%, which will be prepaid for the first year through: (a) 360,000 common shares of Quantum Inc., reflecting a share price of $1.00 per share for each dollar of accrued interest on the full amount, and (b) 360,000 warrants to purchase 360,000 common shares of Quantum Inc. at an exercise price of $1.00 per warrant. The warrants will be exercisable for three years from July 28, 2024. Starting from the second year of the Second July 2024 Facility Credit Line, interest will be paid to the lenders in cash.

Immediately following the Uplist, $160 of the Second July 2024 Facility Credit Line will be automatically converted into common shares of Quantum Inc. at a conversion price of $1.00 per share. In addition, Quantum Inc. will issue an equal number of warrants to purchase common shares of Quantum Inc. at an exercise price of $1.00.

Furthermore, Quantum Inc. agreed to pay the lenders under the Second July 2024 Facility Agreement a one-time fee of 150,000 common shares of Quantum Inc., representing a 5% fee of the Second July 2024 Facility Credit Line, assuming a share price of $1.00 per share (the "Second July 2024 Facility Credit Line Fees").

The Second July 2024 Facility Credit Line Fees and the prepaid interest were classified in the Company's balance sheet as of December 31, 2024, as deferred fundraising expenses under "Other current assets" in the amount of $302 and will be amortized over the term of the Second July 2024 Facility Credit Line.

The conversion related features of the Second July 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date.

On the Uplist Date, Quantum Inc. drew additional $80 of the Second July 2024 Facility Credit Line. In addition, as part of the Second July 2024 Facility Credit Line's terms $160 of the amount drawn was converted into units which included 160,000 shares of common stock and the same amount of warrants of Quantum Inc., each warrant is exercisable into one share of common stock of Quantum Inc. at an exercise price of $1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity.

During June 2025, all 520,000 warrants granted under the Second July 2024 Facility Agreement were exercised into 520,000 shares of Quantum Inc.'s common stock. Quantum Inc. received total proceeds of $520 upon exercise of the warrants.

As result of the deconsolidation of Quantum Inc. on September 25, 2025, Second July 2024 Facility Agreement was not included in the Company's consolidated balance sheet.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Intercompany Loan**

The balance with the Gix Media represents a balance of an intercompany loan under a loan agreement signed between Gix Media and the Company on March 22, 2020. The loan bore interest at a rate determined from time to time in accordance with Section 3(j) of the Income Tax Ordinance, new version, and the Income Tax Regulations (Determination of Interest Rate for the purposes of Section 3(j), 1986) or according to a market interest rate decision as agreed between the parties. The amount of the loan is in U.S. dollars.

On April 10, 2025, Quantum Inc.'s Board of Directors approved the redemption of the loan between Gix Media and the Company. As a result, Gix Media and the Company entered into a redemption agreement, effective as of May 27, 2025, pursuant to which the outstanding loan was redeemed in consideration for the transfer to Gix Media of all of the Company's intangible assets, including, inter alia, intellectual property rights, trademarks, software, algorithms, domains, technological know-how and any other intangible asset (the "Redemption"). Since this transaction is between entities under common control, the intangible assets received from the Company were recorded at their historical carrying amount as they were recorded at the Company's financial statements which is $0.

As a result, the outstanding loan amount including accrued interest, totalling $4,048, was redeemed in full. The redemption was recorded as decrease in non-controlling interests, in proportion to their shareholding in Quantum Inc., in the amount of $2,324 thousand as of the redemption date, against additional paid-in capital in the consolidated statements of changes in shareholders' equity as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. Pure Capital Loan**

On June 25, 2025, the Company entered into a loan agreement with L.I.A. Pure Capital Ltd. ("Pure Capital") in the amount of NIS 1,452 ($455) (the "Pure Capital Loan"). The full loan amount was provided to Deliverz to finance its ongoing operations during the period prior to the Deliverz Transaction date. The Pure Capital Loan will bear annual interest at a rate of 6%, and the principal will be repaid in 12 equal monthly installments starting from the date of the Deliverz Transaction. On January 6, 2026, the Company and Pure Capital agreed to defer the repayment of the loan principal and the accrued interest (see note 18.D).

During the year ended December 31, 2025, the Company repaid a total of NIS 460 ($144) of Pure Capital Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K. July 2025 Credit Facility Agreement**

On June 25, 2025, the Company's Board of Directors approved the entry into a Credit Facility Agreement with M.R.M. Merhavit Holdings and Management Ltd. or its designee (the "Lenders"). The closing date was set as July 1, 2025, corresponding with the date of the first actual credit drawdown. Pursuant to the Credit Facility Agreement (the "July 2025 Credit Line Agreement"), the Lenders or its designee will provide the Company with a Credit line Agreement in a total amount of NIS 12 million ($3.8 million) (the "July 2025 Credit Line"), under the following terms: (a) from the date of signing the July 2025 Credit Line Agreement, the Company may draw NIS 1,000 ($313) each month, at its discretion, except for the first drawdown which, if executed, will be in the amount of NIS 2,000 ($627). The next drawdown may take place 60 days after the first, and each subsequent drawdown shall occur at 30-day intervals thereafter. (b) the repayment date for any utilized amount under the July 2025 Credit Line will be 18 months from the date of the first drawdown, subject to the Company's right to make early repayment at its discretion and without any prepayment penalty. (c) the utilized portion of the July 2025 Credit Line will bear annual interest at a rate of 10% and the interest will be paid in one lump sum together with the principal repayment. (d) the Company undertook that any proceeds it receives in connection with the sale of Quantum Inc. shares will reduce the remaining available balance of the July 2025 Credit Line. If, as a result of such reductions, the remaining credit balance equals the amount already drawn, then from that point onward, 70% of any proceeds received from the sale of Quantum Inc. shares shall be used to repay the drawn balance of the July 2025 Credit Line and the related interest. Furthermore, if the Company completes an equity fundraising by way of a public offering of shares prior to the repayment date, the total amount of the July 2025 Credit Line shall be reduced by an amount equal to 20% of the net proceeds raised in such offering. (e) in the event the Company fails to make timely payment under the July 2025 Credit Line, the unpaid debt will bear default interest at an annual rate of Prime + 10%. (f) to secure full repayment of the July 2025 Credit Line, the Company shall register a first-ranking lien over its shares in Quantum Inc. This lien shall not restrict the Company from selling such shares, subject to the terms of the agreement.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 10: LOANS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K. July 2025 Credit Facility Agreement (cont.)**

Additionally, as part of the July 2025 Credit Line Agreement, the Company granted the Lenders an option to purchase shares of Quantum Inc. (Quantum Inc.'s Option) held by the Company, in an aggregate amount of up to NIS 16 million ($5 million). The exercise price of the option shall be equal to the closing price of Quantum Inc.'s share on the NASDAQ Stock Exchange on the trading day preceding the exercise date, less a 25% discount. The option shall be valid from the date of signing the July 2025 Credit Line agreement and for as long as the Company holds shares of Quantum Inc.

Furthermore, the Company will issue to the Lenders (or its designee) 600,000 warrants of the Company, exercisable into 600,000 ordinary shares of the Company, under the following terms: (a) the warrants shall be exercisable over a period of 36 months. The warrants will be subject to customary adjustments, excluding adjustments related to an in-kind distribution of Quantum Inc. shares or the distribution of proceeds from the sale of Quantum Inc. shares by the Company. (b) the exercise price of each warrant shall be NIS 18 ($5.6) per share during the first 8 months following the grant date. From the end of such 8-month period until the end of the exercise period, the exercise price shall be NIS 21 ($6.5) per share. (c) the grant of the warrants shall be subject to all required legal approvals, including the approval of the Company's shareholders. In the event that such approvals are not obtained, the option granted to the Lenders to purchase shares of Quantum Inc. (as described above) shall be increased, such that the total value of Quantum Inc. shares subject to the option shall increase to NIS 32 million ($10 million).

The July 2025 Credit Line shall be subject to immediate repayment, upon 60 business days prior written notice to the Company, in the event that one or more of the following events occur: (a) If liquidation, bankruptcy, or receivership proceedings are initiated against the borrower, including the appointment of a special administrator or any other officer to the borrower's assets. (b) If one or more liens or enforcement actions are imposed or initiated against the borrower in an amount exceeding NIS 500 ($156), and such liens and/or enforcement actions are not cancelled or removed within 120 days from the date they were imposed or initiated, as applicable. (c) If the borrower fails to register the security interest in favor of the Lenders within 14 days from the date of signing this agreement.

The Company agreed to pay the Lenders a fee for the provision of the line of credit in an amount NIS 240 ($75) plus VAT as required by law equal to 2% of the total line of credit. In addition, for each credit drawdown made by the Company, the Lenders shall transfer to the Company an amount equal to 95% of the requested drawdown amount, while for the purpose of calculating principal and interest repayments, the full requested amount shall be deemed to have been provided.

On August 13, 2025, the Company's shareholders approved the issuance of 600,000 warrants as follows: (a) issuance of 531,960 warrants to Lenders under the July 2025 Credit Line. (b) issuance of 20,040 warrants to the Chairman and CEO of the company, in equal parts, following the approval of their participation in the line of credit in the amount of NIS 190 ($60) each. The participation will be carried out through the conversion of debts related to accrued compensation of the Chairman and CEO, amounting to NIS 190 ($60) each, into a loan under the same terms of the July 2025 Credit Line. (c) participation of a company director in the July 2025 Credit Line in the amount of NIS 960 ($301) and allocation of 48,000 warrants to the director as part of the July 2025 Credit Line's terms. On September 9, 2025, the Company issued a total of 600,000 warrants to the Lenders.

In connection with the July 2025 Credit Line Agreement, as of December 31, 2025, the Company incurred debt issuance costs of $1,021, which was deferred and recorded under other current assets in the Company's balance sheet. These debt issuance costs were initially recognized at the fair value of Quantum Inc.'s option and the Company's warrants issued to the Lenders, which were classified as a liability measured at fair value and as equity, respectively. The deferred debt issuance costs will be amortized to financial expenses over the term of the July 2025 Credit Line Agreement.

As of the issuance date of these financial statements, the Company has drawn a total of NIS 8,953 ($2,807) of July 2025 Credit Facility Agreement.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 11: FINANCIAL INSTRUMENTS AT FAIR VALUE**

**Financial instruments:**

The Company has financial instruments measured at level 3 from the June 2024, July 2024 and July 2025 Facility Agreements (see notes 10.E, 10.F, 10.G and 10.K).

The fair value of the financial instruments under the July 2025 Facility Agreement as of December 31, 2025 was calculated using the following unobservable inputs: share price: $1.53, expected volatility: 116.15%, risk-free interest rate: 3.59, expected life: 0.48 year.

The fair value of the financial instruments under the June 2024 and July Facility Agreement as of December 31, 2024, was calculated using the following unobservable inputs: share price: $0.472, expected volatility: 148%, exercise price: $1.00, risk-free interest rate: 4.24%-4.32%, expected life: 0.46-0.50 years.

The following table presents the financial instruments that were measured at fair value through profit or loss:

---

| | |
|:---|:---|
|  | **Embedded derivatives** |
| **Balance as of January 1, 2025** | 29 |
| Net changes in fair value recognized through profit or loss | 10100 |
| Embedded derivatives recorded in connection with the July 2025 Facility Agreement (see note 10.K) | 801 |
| Embedded derivatives converted to equity | (10150) |
| **Balance as of December 31, 2025** | 780 |

---

---

| | |
|:---|:---|
|  | **Embedded derivatives** |
| **Balance as of January 1, 2024** | - |
| Embedded derivatives recorded in connection with the June 2024 Facility Agreement | 40 |
| Lead Lender Warrants (see note 10.F) | 1833 |
| Reclassification of derivative warrant liability into equity | (1833) |
| Net changes in fair value recognized through profit or loss | (11) |
| **Balance as of December 31, 2024** | 29 |

---

**NOTE 12: INCOME TAX EXPENSE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Tax rates applicable to the income of the Company:**

The Company, Deliverz, Metagramm and Viewbix Ltd. are taxed according to Israeli tax laws. The Israeli corporate tax rate is 23% in the years ended December 31, 2025 and 2024.

Gix Media and Cortex are recognized as a "Preferred-Technology Enterprise" in accordance with Section 51 of the Encouragement of Capital Investments Law, 1959 and are taxed at a reduced corporate tax rate of 12%.

Quantum Inc. as a US incorporated company, is taxed according to U.S. tax laws. The U.S. corporate tax rate is 21% in the years ended December 31, 2025, and 2024.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 12: INCOME TAX EXPENSE (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Tax assessments:**

As of December 31, 2025, the Company has a final tax assessment for all tax year up to the year ended December 31, 2020.

Deliverz has a final tax assessment for all tax year up to the year ended December 31, 2021.

Gix Media has a final tax assessment for all tax year up to the year ended December 31, 2020.

Cortex has a final tax assessment for all tax year up to the year ended December 31, 2019.

Viewbix Ltd. has a final tax assessment for all tax year up to the year ended December 31, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Tax Ruling:**

On July 27, 2025, a tax ruling was received from the Israeli Tax Authority regarding to Deliverz Transaction (the "Ruling").

According to the Ruling, the former shareholders of Deliverz will be exempt from tax payments on the gain resulting from the sale of Deliverz shares to the Company until the realization of the Company's ordinary shares paid to them as consideration, and concurrently all tax losses of the Company that existed prior to the date of Exchange Agreement with Deliverz will expire, except that such losses may be offset against the sale of Quantum Inc. common shares.

Additionally, according to the Ruling, any gain or loss arising from the potential sale of Deliverz shares by the Company during the period until December 31, 2027, may not be offset against any tax loss or gain within those tax fiscal years.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 12: INCOME TAX EXPENSE (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Deferred taxes are comprised of the following components:**

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Deferred taxes are comprised of the following components:

---

| | | |
|:---|:---|:---|
|  | **As of**<br>**December 31**<br>**2025** | **As of**<br>**December 31**<br>**2024** |
| **Deferred tax assets** |  |  |
| Deferred research and development expenses |  | 57 |
| Employee compensation and benefits | 14 | 8 |
| Operating loss carryforward | 1074 | 13427 |
| **Total deferred tax assets** | 1088 | 13492 |
| **Deferred tax liabilities:** |  |  |
| Intangible assets associated with business combinations | 695 | 367 |
| **Total deferred tax liabilities** | 695 | 367 |
| Net deferred tax assets before valuation allowance | 393 | 13125 |
| Valuation allowance | (1088) | (13328) |
| **Net deferred tax liabilities** | (695) | 203 |

---

As of December 31, 2025 and 2024, the Company has recorded a valuation allowance of $1,088 and $13,328 respectively, in respect of the deferred tax assets for the year ended 31 December, 2025, resulting from tax loss carryforward of Deliverz and for the year ended 31 December, 2024, resulting from tax loss carryforward of Quantum Inc., Viewbix Ltd. and the Company, as management currently believes these deferred tax assets will not be realized in the foreseeable future.

**Tax expenses are comprised as follows:**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| Current tax expenses | 11 | 171 |
| Tax benefit in respect of prior years | 8 | 9 |
| Deferred tax income | (164) | (187) |
| **Tax expense (benefit)** | (145) | (7) |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 12: INCOME TAX EXPENSE (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Reconciliation of the theoretical tax expenses to the actual tax expenses:**

The Company adopted ASU 2023-09 for the year ended December 31, 2025, on a prospective basis. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the Income tax benefit as reported in the statements of operations is as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|  | **Amount** | **Percent** |
| Statutory tax rate in Israel | $(3652) | 23% |
| Foreign tax effects: |  |  |
| Statutory tax rate difference between Israel and the United States | 237 | (1.5)% |
| Difference between Israeli corporate tax rate and reduced corporate tax rate for preferred technology enterprises: | 789 | (5.0)% |
| Changes in valuation allowances: | (4139) | 26.1% |
| Non-taxable or non-deductible items: |  |  |
| Stock-based payments awards | 17 | (0.1)% |
| Change in the fair value of financial assets at fair value through profit or loss | 2125 | (13.4)% |
| Goodwill Impairment | 733 | (4.6)% |
| Gain from deconsolidation of Quantum Inc. | (1548) | 9.7% |
| Other | 306 | (1.9)% |
| Other Adjustments: | 4987 | (31.4)% |
| **Income tax benefit** | $(145) | 0.9% |

---

Reconciliation between the Company's theoretical tax benefit to the Income tax benefit prior to the adoption of ASU 2023-09:

---

| | |
|:---|:---|
|  | **Year ended<br> December 31**<br>**2024** |
| Loss before income taxes | (7753) |
| Statutory tax rate in Israel | 23% |
| Theoretical tax benefit | (1783) |
| Increase in tax expenses resulting from: |  |
| Different tax rates applicable to subsidiaries | 404 |
| Non-deductible expenses | 375 |
| Income tax expense in respect of prior years | 9 |
| Change in valuation allowance | 978 |
| Others | 10 |
| **Income tax benefit** | (7) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Available carryforward tax losses:**

As of December 31, 2025, Deliverz incurred operating losses of approximately $4,670 which may be carried forward and offset against taxable income in the future for an indefinite period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Loss before taxes includes the following components:**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| USA | (11859) | (3714) |
| Israel (\*) | (4020) | (4039) |
|  | (15879) | (7753) |

---

---

| | |
|:---|:---|
| (\*) | Including a goodwill impairment loss of $6,105 and $2,025 for the years ended December 31, 2025, and 2024, respectively and including a gain from deconsolidation of Quantum Inc. of $6,731 for the year ended December 31, 2025 (see notes 6.B, 7.E). |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 13: COMMITMENTS AND CONTINGENCIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Liens:**

As part of July 2025 Credit Facility, the Company provided a first-priority lien over its holdings in Quantum Inc., which, under its terms, will not restrict the Company if the Company sells its holdings in Quantum Inc.

As part of the Gix Media's Financing Agreement with Bank Leumi (see note 10.B), Quantum Inc. provided to Bank Leumi the following securities: (1) a guarantee to Bank Leumi of all of Gix Media's obligations and undertakings to Bank Leumi unlimited in amount; (2) a subordination letter signed by the Quantum Inc. to Bank Leumi; (3) a first degree lien over all of Quantum Inc.'s assets and (4) a Deposit Account Control Agreement over Quantum Inc.'s bank accounts pursuant to which Bank Leumi may assume control over such bank accounts in an event of insolvency.

Gix Media has provided several liens under the Financing Agreement with Bank Leumi in connection with the Cortex Transaction, as follows: (1) a floating lien on Gix Media's assets; (2) a lien on Gix Media's bank account in Bank Leumi; (3) a lien on Gix Media's rights under the Cortex Transaction; (4) a fixed lien on Gix Media's intellectual property; and (5) a lien on Gix Media's full holdings in Cortex.

The Company restricted deposits in the amount of $8 as of December 31, 2025 are used as a security mainly in respect of credit cards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Commitments in Quantum Inc.:**

1) On July 3, 2024, Quantum Inc. entered into a private placement agreement (the "July 2024 Private Placement") with a global investment firm for the allocation of 256,875 units at a purchase price of $1.00 per unit. The units consist of: (i) 256,875 common shares of Quantum Inc. and (ii) 385,332 warrants to purchase 385,322 common shares of Quantum Inc. The warrants are exercisable at an exercise price of $1.00 per share, subject to certain adjustments and anti-dilution protections detailed therein, and will be valid for a period of three years from the date of issuance. Warrants issued as part of July 2024 Private Placement will be automatically exercised upon the Uplisting event. The total gross proceeds from July 2024 Private Placement amounted to $257. In addition, Quantum Inc. agreed to pay the global investment firm: (a) a cash commission of $13; (b) 12,844 common shares; and (c) up to $10 for reimbursement of actual expenses. In July 2024, Quantum Inc. issued to investors a total of 269,719 shares and 385,332 warrants in connection with July 2024 Private Placement.

2) On July 14, 2024 and July 25, 2024, Quantum Inc. entered into consulting agreements with certain advisors (the "Advisors") under which the Advisors agreed to provide certain services to the Company in connection with the Uplist. In consideration for these services, Quantum Inc. issued a total of 120,000 common shares of Quantum Inc. to the Advisors.

3) On March 14, 2025, Quantum Inc. effected a reverse stock split of its issued share capital at a ratio of 1-for-4, whereby every four (4) issued shares and options of Quantum Inc. were consolidated into one (1) share or option, respectively. The par value of the issued shares remained unchanged as part of the reverse stock split. The share and option data of Quantum Inc. included in these financial statements were retrospectively adjusted in the Company's financial statements as of December 31, 2024, to reflect the reverse split. The reverse stock split did not affect the total consolidated equity.

4) On March 24, 2025, as part of the Metagramm Acquisition (see note 7.C), Quantum Inc. issued to Metagramm's shareholders of 1,323,000 common shares of Quantum Inc., representing 19.99% of Quantum Inc.'s issued and outstanding share capital immediately following the Metagramm Acquisition.

**NOTE 13: COMMITMENTS AND CONTINGENCIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Commitments in Quantum Inc.: (Cont.)**

5) On March 27, 2025, a petition (the "Petition") was filed with the District Court of Tel Aviv-Jaffa (the "Court") for a court order to commence insolvency proceedings of Gix Media. The Petition was filed by a primary service provider of Gix Media (the "Service Provider") alleging that Gix Media owes it approximately $260 (excluding linkage differentials and interest) and that Gix Media is unable to repay its debts to the Service Provider. On July 16, 2025, the Court approved a settlement agreement entered into between Gix Media, the Service Provider and other creditors of Gix Media that joined the Petition (collectively, the "Service Providers") with respect to the debts owed by Gix Media to the Service Providers. In connection with the settlement agreement, Quantum Inc. agreed to provide a guarantee for the debts owed by Gix Media to the Service Providers. On July 22, 2025, pursuant to the terms of the settlement agreement, Gix Media paid approximately $1.13 million to the Service Providers as payment in full of the debts owed to the Service Providers. As a result of such payment in full by Gix Media to the Service Providers, the Petition was dismissed.

6) On June 4, 2025, the Quantum Inc.'s shares of common stock were approved for listing on The Nasdaq Capital Market (the "Nasdaq"). Quantum Inc.'s shares began trading under the symbol "VBIX" on the Nasdaq on June 5, 2025. Quantum Inc.'s shares were previously quoted on the OTC Markets, Pink sheets under the symbol "VBIX", and ceased to be quoted on the OTC Markets, Pink sheets at the close of business on June 4, 2025 (the "Uplist"). As a result of the Uplist, Quantum Inc. received during June 2025, aggregate gross proceeds of $2,450 in connection with a private placement and three facility agreements, consisting of $630 from the receipt of additional loans and $1,820 from the exercise of warrants (see notes 10.F, 10.G, 10.H and section 1 above).

7) During June and July 2025, a total of 2,241,213 warrants issued as part of the July 2024 private placement and Credit Facility Agreement from June and July 2024, (see notes 10.F, 10.G, 10.H and section 1 above), were exercised into a total of 2,241,213 common shares of Quantum Inc. As a result of the warrant exercises, Quantum Inc. received total proceeds of $2,222.

8) On July 11, 2025, Quantum Inc. entered into a securities purchase agreement with certain accredited investors pursuant to which Quantum Inc. issued and sold in a private placement (the "July 2025 Private Placement") an aggregate of 848,763 shares of its common stock, pre-funded warrants to purchase up to 77,160 shares of common stock and common warrants to purchase up to an aggregate of 925,923 shares of its common stock, at an offering price of $4.86 per share of common stock and associated common warrant and an offering price of $4.8599 per pre-funded warrant and associated common warrant. The pre-funded warrants were immediately exercisable upon issuance at an exercise price of $0.0001 per share and will not expire until exercised in full. The common warrants were immediately exercisable upon issuance at an exercise price of $4.74 per share, subject to adjustment as set forth therein, and will expire five and a half years from the issuance date. The common warrants may be exercised on a cashless basis if there is no effective registration statement registering the shares of shares of common stock underlying the common warrants. In connection with the July 2025 Private Placement, Quantum Inc. also entered into a letter agreement with a placement agent on July 11, 2025, according to which Quantum Inc. agrees to pay a cash placement fee equal to 7.0% of the gross proceeds and $50 for reasonable legal fees and disbursements. The July 2025 Private Placement closed on July 14, 2025. The aggregate gross proceeds received by Quantum Inc. on the closing date were $4.5 million.

9) On November 5, 2025, Quantum Inc. entered into a private placement agreement with certain investors. Pursuant to the private placement agreement, as amended on January 1, 2026, Quantum Inc. will issue to the investors a total of 800,000 units at a price of $1.75 per unit, consisting of 800,000 common shares of Quantum Inc. and 640,000 warrants to purchase 640,000 ordinary shares of Quantum Inc. The warrants are exercisable at an exercise price of $2.625 per share and will be valid for a period of five years from the date of issuance. The private placement was completed on March 4, 2026, and the gross proceeds received by Quantum Inc. amounted to $1,400 thousand (the "March 2026 Private Placement"). For further details, (see note 18.A).

10) On December 15, 2025, Quantum Inc. entered into Quantum Transaction agreement with Quantum Ltd and its shareholders. Quantum focuses on developing and promoting quantum algorithms for the transportation, drug discovery and security segments as well as developing quantum-based GPS replacement and quantum atom accuracy solutions. Pursuant to the Quantum transaction, Quantum Inc. agreed to issue to the Quantum Ltd Shareholders an aggregate of up to 40% of its issued and outstanding common shares, inclusive of the 800,000 shares of the Quantum Inc.'s common shares issuable by the Quantum Inc. in the March 2026 Private Placement (see Section 9 above). In addition, Quantum Inc. may issue additional shares of the Quantum Inc.'s common shares, upon the achievement of certain milestones. The Quantum Transaction was completed on March 4, 2026. For further details, (see Note 18.B). 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Commitments in Deliverz:**

Deliverz partially financed its research and development expenses through programs of the Israel Innovation Authority (the "IIA") (previously the Office of the Chief Scientist). In consideration for the participation of the IIA, Delivrz is obligated to pay royalties at a rate of 3% of revenues generate from its products developed by Deliverz, indexed to the U.S. dollar, until full repayment of the aggregate amount of the grants, together with SOFR interest.

The total amount of grants received as December 31, 2025, amounted to approximately NIS 1,400 ($439) (including SOFR interest).

As of December 31, 2025, Deliverz did not recognize a liability to the IIA, as there is uncertainty regarding the generation of future revenues and the completion of the development.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 14: SHAREHOLDERS' EQUITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Ordinary shares**

Ordinary shares confer the rights to: (i) participate in the general meetings, to one vote per share for any purpose, to an equal part, on share basis, (ii) in distribution of dividends and (iii) to equally participate, on share basis, in distribution of excess of assets and funds from the Company and will not confer other privileges.

On December 3, 2023, a total of 86,667 ordinary shares of the Company were issued to Xylo through a private placement in consideration for: (i) cash payment of NIS 800 ($251); and (ii) issuance of 673,019 ordinary shares or 16,825 ADRs of Xylo traded on Nasdaq at a fair value of $164.

On August 26, 2025, the Company announced that, based on information provided to it by Xylo, the controlling shareholder of the Company, on August 22, 2025, a transaction was completed pursuant to which Xylo was delisted from trading on NASDAQ, and Pure Capital became the controlling shareholder of Xylo, and accordingly, became the controlling shareholder of the Company.

On May 28, 2025, the Company's general meeting approved a reverse split of the Company's authorized and issued and outstanding share capital at a ratio of 1:30, such that every thirty (30) ordinary no-par value shares of the Company were consolidated into one (1) ordinary no-par value share, and every thirty (30) warrants were consolidated into one warrant exercisable into one ordinary share. The record date for the reverse stock split was set for June 10, 2025, and the effective date of the reverse stock split was set for June 11, 2025. The Company's share and warrant data were retrospectively adjusted in the financial statements as of December 31, 2025, to reflect the reverse stock split.

On July 21, 2025, the Company announced the issuance of 22,288 ordinary shares of the Company, to be issued in equal parts to the Chairman of the Board and the CEO. The total number of ordinary shares issued under the private placement represents a special grant to the Chairman and the CEO in connection with the completion of the Deliverz Transaction on July 10, 2025, and in accordance with the terms of their employment. On August 7, 2025, 22,288 ordinary shares were issued to the Chairman and the CEO of Deliverz.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Share option plan** 

1) During the year ended December 31, 2025, and 2024, 6,666 and 1,167 unregistered share options expired following the termination of employment of certain employees including officers.

**2)** On September 2, 2025, the Company issued 44,608 Company options to Deliverz's CEO, exercisable for 44,608 ordinary shares of the Company. The options were issued as part of the Deliverz Transaction under the following terms: (a) the vesting period of the option is four years, with vesting in 16 equal quarterly instalments (b) the exercise price per option is NIS 19.5 ($6.1); and (c) the options may be exercised within a maximum period of four years from their respective vesting dates. Following the date of the financial statements the Company's Board of Directors approved the issuance of 77,817 options to eight of Deliverz's employees, exercisable into 77,817 ordinary shares of the Company (see also note 18.C).

The Company recognized share-based compensation expenses in the statements of comprehensive income as follows:

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Research and development | 1 | 8 |
| Selling and marketing | 2 | (9) |
| General and administrative | 238 | 24 |
| Other expenses (see notes 14.B and 15.F) | 641 | 57 |
| Total | 882 | 80 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Dividends**

No dividends were distributed for the years ended December 31, 2025 and 2024.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: ADDITIONAL INFORMATION REGARDING PROFIT AND LOSS ITEMS**

**Composition:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Traffic-acquisition and related costs:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Social network ads | $5978 | $11635 |
| Native ads | 41 | 7920 |
| Search ads | 243 | 1730 |
| Other related costs | 74 | 702 |
|  | $6336 | $21987 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Research and development expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2024** | **2024** |
| Salaries and related expenses | $666 | $1235 |
| Professional services and subcontractors | 102 | 464 |
| Share-based compensation | 1 | 8 |
| Other | 56 | 184 |
|  | $825 | $1891 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Selling and marketing expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Salaries and related expenses | $436 | $1302 |
| Advertising and marketing expenses | 107 | 151 |
| Share-based compensation | 2 | (9) |
| Other | 55 | 199 |
|  | $600 | $1643 |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: ADDITIONAL INFORMATION REGARDING PROFIT AND LOSS ITEMS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. General and administrative expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Salaries and related expenses | $629 | $1145 |
| Professional services | 1133 | 1264 |
| Share-based compensation | 238 | 24 |
| Other | 297 | 269 |
|  | $2297 | $2702 |

---

**E**. **Other expenses, net:**

**Other income:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Income related to War grants (see Note 1.C) | $- | $337 |
|  | $- | $337 |

---

**Other expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Expenses related to Quantum Inc.'s Uplist | $613 | $219 |
| Expenses related to the listing of the Company's shares on Nasdaq | 73 |  |
| Share-based payment expenses related to Quantum Inc.'s Uplist | 75 | 57 |
| Share-based payment expenses to the initiator in the Deliverz transaction (see Note 7.D) | 566 |  |
| Loss from sale of fixed assets |  | 73 |
| Other | - | 22 |
|  | $1327 | $371 |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: ADDITIONAL INFORMATION REGARDING PROFIT AND LOSS ITEMS (Cont.)**

**F**. **Financial expense, net:**

**Financial income:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Exchange rate differences | $265 | $18 |
| Change in the fair value of financial assets at fair value through profit or loss | 26 |  |
| Other | 64 | 24 |
|  | $355 | $42 |

---

**Financial expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Bank interest and fees | $30 | $70 |
| Interest expense on bank loans | 324 | 687 |
| Interest expense on loans from Xylo (see note 10.D) | 81 | 74 |
| Loss from substantial debt terms modification (see note 10.F) |  | 1914 |
| Exchange rate differences |  | 43 |
| Amortization of deferred debt issuance costs | 1099 | 152 |
| Change in the fair value of financial assets at fair value through profit or loss | 10121 | 92 |
| Other | 236 | 122 |
|  | $11891 | $3154 |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

N**OTE 16: MAJOR CUSTOMERS**

The following table sets forth the customers that represent 10% or more of the Group's revenues in each of the periods presented below:

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Customer A | 12% | 16% |
| Customer B | 84% | 20% |
| Customer C | 0% | 14% |

---

**NOTE 17: SEGMENT REPORTING**

Prior to the deconsolidation of Quantum Inc. the Group operated in three different segments in such a way that each segment relates to a different company in the Group. The search segment and the digital content segment operate in the digital advertising industry and the Autonomous Robots focused on development of advanced logistics automation solutions that integrate with third-party autonomous robots to create delivery solutions for complex, high-traffic environments, such as hospitals and large campuses.

**Search segment**- the search segment develops a variety of technological software solutions, which perform automation, optimization and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers.

**Digital content segment**- the digital content segment is engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, including Google, Facebook, Yahoo and Apple, by utilizing such content to obtain internet user traffic for its customers.

**Autonomous Robots segment**- Autonomous Robots' revenues are generated from leasing agreements that include robot rentals, maintenance, and ongoing software updates.

The segments' results include items that directly serve and/or are used by the segment's business activity and are directly allocated to the segment. As such they do not include depreciation and amortization expenses for intangible assets created at the time of the purchase of those companies and financing expenses incurred on loans taken for the purpose of purchasing those companies. Therefore, these items are not allocated to the various segments.

The chief executive officer of the Company under which substantially all business activity of the Group is conducted, is the chief operating decision maker ("CODM"). The CODM assesses performance for these segments and decides how to allocate resources based the segments' operating income or loss and income or loss before tax. Segments' assets and liabilities are not reviewed by the CODM and therefore were not reflected in the segment reporting. The significant expense categories comprising segments profit and loss regularly reviewed by the CODM for the years ended December 31, 2025 and 2024 are set forth in the table below.

The substantial amount of non-current assets is derived from Israel and the substantial amount of revenues is derived from United States.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 17: SEGMENT REPORTING (Cont.):**

**Segments revenues and operating results:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** |
|  |<br>**Search<br> segment** | **Digital**<br>**content**<br>**segment** | **Autonomous Robots** | **Adjustments**<br>**and eliminations**<br>**(see below)** | **Total** |
| Revenues from external customers | 1225 | 6486 | 13 | 20 | 7744 |
| &nbsp;&nbsp;&nbsp;Inter segment revenues | - | (55) | - | 55 | - |
| Total revenues | 1225 | 6431 | 13 | 75 | 7744 |
| &nbsp;&nbsp;&nbsp;Traffic-acquisition and related costs | 188 | 6093 |  | 55 | 6336 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 57 | 330 | 433 | 5 | 825 |
| &nbsp;&nbsp;&nbsp;Sales and marketing expenses | 76 | 503 | 21 |  | 600 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 191 | 258 | 125 | 1723 | 2297 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  |  |  | 1170 | 1170 |
| &nbsp;&nbsp;&nbsp;Goodwill impairment |  |  |  | 6105 | 6105 |
| &nbsp;&nbsp;&nbsp;Other expenses (income), net |  |  |  | 1327 | 1327 |
| Segment operating income (loss) | 713 | (753) | (566) | (10310) | (10916) |
| &nbsp;&nbsp;&nbsp;Gain from deconsolidation of Quantum Inc. |  |  |  | 6731 | 6731 |
| &nbsp;&nbsp;&nbsp;Financial expenses, net | (160) | (20) | (26) | (11330) | (11536) |
| Equity loss |  |  |  | (158) | (158) |
| Segment income (loss) before income taxes | 553 | (773) | (592) | (15067) | (15879) |

---

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 17: SEGMENT REPORTING (Cont.)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
|  | **Search<br> segment** | **Digital**<br>**content**<br>**segment** | **Adjustments**<br>**and eliminations**<br>**(see below)** | **Total** |
| Revenues from external customers | 4969 | 21972 |  | 26941 |
| &nbsp;&nbsp;&nbsp;Inter segment revenues | - | 259 | (259 | - |
| Total revenues | 4969 | 22231 | (259) | 26941 |
| &nbsp;&nbsp;&nbsp;Traffic-acquisition and related costs | 1989 | 20257 | (259) | 21987 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 818 | 1049 | 24 | 1891 |
| &nbsp;&nbsp;&nbsp;Sales and marketing expenses | 304 | 1332 | 7 | 1643 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 549 | 415 | 1738 | 2702 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |  |  | 1300 | 1300 |
| &nbsp;&nbsp;&nbsp;Goodwill impairment |  |  | 2025 | 2025 |
| &nbsp;&nbsp;&nbsp;Other expenses (income), net | (5) | (237) | 276 | 34 |
| Segment operating income (loss) | 1314 | (585) | (5370) | (4641) |
| &nbsp;&nbsp;&nbsp;Financial expenses, net | (16) | (154) | (2942) | (3112) |
| Segment income (loss) before income taxes | 1298 | (739) | (8312) | (7753) |

---

The "adjustments and eliminations" column for segment operating income includes unallocated selling, general, and administrative expenses and certain items which management excludes from segment results when evaluating segment performance, as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31,**<br>**2025** | **Year ended**<br>**December 31,**<br>**2024** |
| Depreciation and amortization expenses not attributable to segments (\*\*) | (1170) | (1300) |
| Research and development expenses, sales and marketing expenses, general and administrative expenses and other expenses, net not attributable to the segments (\*\*\*) | (3035) | (2045) |
| Goodwill Impairment | (6105) | (2025 |
|  | (10310) | (5370) |

---

(\*) Mainly consist of financial expenses from substantial debt terms modification loss, facilities agreements, change in the fair value of financial assets and interest expenses on bank loans in connection with the Financing Agreement (see notes 10 and 11).

(\*\*) Mainly consist of technology and customer relations amortization costs from business combinations. <br>(\*\*\*) Mainly consist of general and administrative expenses such as salary and related expenses and professional consulting expenses.

**GIX INTERNET LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 18: SUBSEQUENT EVENTS**

The Company has evaluated subsequent events from December 31, 2025, through May 21, 2026, the date of issuance of these financial statements as of December 31, 2025, and 2024 and for the two years in the period ended December 31, 2025:

---

| | |
|:---|:---|
| **A.** | **Private Placement Offering Quantum Inc.:**<br>On November 5, 2025, Quantum Inc. entered into a private placement agreement with certain investors. Pursuant to the private placement agreement, as amended on January 1, 2026, Quantum Inc. will issue to the investors a total of 800,000 units at a price of $1.75 per unit, consisting of 800,000 ordinary shares of Quantum Inc. and 640,000 warrants to purchase 640,000 ordinary shares of Quantum Inc. The warrants are exercisable at an exercise price of $2.625 per share and will be valid for a period of five years from the date of issuance.<br>The private placement is subject to customary closing conditions, including the approval of the shareholders of Quantum Inc., as well as the approval of the shareholders of Quantum Inc. in connection with the acquisition of with Quantum Ltd. (see Section B below).<br>In connection with the March 2026 Private Placement, Quantum Inc. entered into a consulting agreement with Pure Capital, pursuant to which Quantum Inc. undertook to pay Pure Capital a cash fee of $70 thousand and to issue 32,000 warrants to purchase 32,000 ordinary shares of Quantum Inc., on terms identical to the warrants issued in the March 2026 Private Placement (the "Pure Capital Fees"). In addition, in connection with the completion of the March 2026 Private Placement, Quantum Inc. undertook to repay an amount of $200 thousand from the outstanding loan balance to Pure Capital, in accordance with the June 2024 Facility Agreement.<br>The March 2026 Private Placement was completed on March 4, 2026, and the gross proceeds received by Quantum Inc. amounted to $1,400, before deduction of the Pure Capital Fees and other expenses applicable to Quantum Inc.<br>|
| **B.** | **Securities Exchange Agreement Quantum Inc.:** |
|  | On December 15, 2025 (the "Effective Date"), Quantum Inc. entered into a share exchange agreement with Quantum Ltd., a company incorporated in Israel, and its shareholders.<br>Pursuant to the Quantum Transaction, Quantum Inc. will issue to Quantum Ltd's shareholders up to 40.0% of its total issued and outstanding ordinary shares as of the Effective Date (the "Exchange Shares"), including 800,000 common shares of Quantum Inc. issuable under the March 2026 Private Placement (see Section A above).<br>The warrants are exercisable at an exercise price of $2.625 per share and will be valid for a period of five years from the date of issuance.<br>The Exchange Shares shall include common shares and pre-funded warrants as follows: (a) 2,666,000 common shares of Quantum Inc., representing 19.99% of the Company's issued and outstanding common shares, including the common shares issued in the March 2026 Private Placement; and (b) pre-funded warrants to purchase up to 4,447,595 common shares of Quantum Inc., representing the remainder required to reach the 40.0% ownership threshold as of the Effective Date. The foregoing represents 100% of the issued and outstanding share capital of Quantum Ltd on a fully diluted basis following completion of the Quantum Transaction, equivalent to 589,319 ordinary shares of Quantum Ltd. The pre-funded warrants will be immediately exercisable upon issuance, at an exercise price of $0.0001 per share, and will not expire until fully exercised.<br>|

---

**NOTE 18: SUBSEQUENT EVENTS (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Securities Exchange Agreement Quantum Inc.: (Cont.)** 

---

| | |
|:---|:---|
|  | In addition, pursuant to the Quantum Transaction, Quantum Inc. may issue up to 12,702,847 additional shares of the Quantum Inc.'s common shares or pre-funded warrants to purchase shares of the Quantum Inc.'s common shares (collectively, the "Earn-Out Securities") upon the achievement of certain milestones as follows: (i) the issuance of up to 1,975,998 Earn-Out Securities upon the submission of five (5) patent applications including provisional applications in total, across at least three (3) distinct sub-fields within the quantum sector, by the Quantum or any of its Portfolio Companies during the 18-month period following the Closing Date; (ii) the issuance of up to 3,436,519 Earn-Out Securities upon the closing of listing, public offering, or an M&A Transaction of any Portfolio Company of Quantum Ltd, at a pre-money valuation of no less than $20 million during the twenty four-month period following the Closing Date, and; (iii) the issuance of up to 7,290,330 Earn-Out Securities upon the earlier of: (1) a capital raise of at least $10 million into either the Quantum Inc. or Quantum Ltd at a pre-money valuation of no less than $250 million; or (2) closing of any M&A Transaction Quantum Ltd, at a pre-money valuation not less than $250 million during the 48-month period following the Closing Date. Subject to the Agreement, the Earn-Out Securities may become issuable to the Quantum Ltd Shareholders only following the 12-month anniversary of the Closing Date, and only upon achievement of the applicable earn-out milestones set forth above. |
|  | On January 2, 2026, Quantum Inc. received the Stockholders' Approval to the Quantum Transaction by written consent of the holders of a majority of its issued and outstanding common shares. The Quantum Transaction was completed on March 4, 2026. Following to Quantum Transaction and March 2026 Private Placement the Company's holdings in Quantum Inc decrease to 21.13%. |
| **C.** | **Options issued to Deliverz's Employees:** |
|  | On January 6, 2026, the Company's Board of Directors approved the issuance of 62,253 options to five of Deliverz's employees, exercisable into 62,253 ordinary shares of the Company (the "January 2026 Issuance"). The options shall be issued under the following terms: (a) one quarter (1/4) of the options shall vest upon completion of 12 months from the grant date, and the remaining three quarters (3/4) shall vest over the subsequent 36 months in equal quarterly instalments; (b) the exercise price per option shall be NIS 19.5 (USD 6.1); and (c) the options may be exercised within a maximum period of four years from their respective vesting dates.<br>On April 14, 2026, the Company's Board of Directors approved the issuance of 15,564 options to three of Deliverz's employees, exercisable into 15,564 ordinary shares of the Company. The options issued under the same terms of the January 2026 Issuance. |
| **D.** | **Pure Capital Loan Deferral:** |
|  | On January 6, 2026, in connection with the Pure Capital loan, the Company and Pure Capital agreed to defer the repayment of the loan principal and the accrued interest that to June 30, 2026, instead of repayment of the principal and interest in 12 equal monthly instalments following the date of the Deliverz Transaction. On May 20, 2026, Pure Capital agreed to defer the repayment of the loan principal and the accrued interest to August 31, 2027. |
| **E.** | **Change in the Name of Quantum Inc.:** |
|  | On April 30, 2026, Quantum Inc. changed its name from Viewbix Inc. to Quantum X Labs Inc. and its trading symbol from "VBIX" to "QXL" on the Nasdaq Capital Market. |
| **F.** | **May 2026** **Private Placement:** |
|  | On May 6, 2026, the Company entered into a private placement agreement, (the "May 2026 PIPE"), with certain investors pursuant to which the Company issued and sold an aggregate of 417,272 ordinary shares and 417,272 warrants at a purchase price of NIS 22.00 (approximately $6.89) per share and associated warrant for aggregate gross proceeds of NIS 9.18 million (approximately $2.88 million). The warrants are immediately exercisable upon issuance at an exercise price of NIS 27.50 (approximately $8.62) per share, subject to adjustment as set forth therein, and will expire eighteen months from the issuance date. The May 2026 PIPE closed on May 19, 2026. |
| **G.** | **Xylo Loan Deferral:** |
|  | On May 20, 2026, Xylo agreed to defer the repayment of the loan principal and the accrued interest to August 31, 2027. |

---

**DELIVERZ.AI LTD.**

**FINANCIAL STATEMENTS**

**<u>DECEMBER 31, 2024</u>**

**<u>CONTENTS</u>**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#fd_001) | F-62 |
| [Balance Sheet](#fd_002) | F-63 |
| [Statement of Operations](#fd_003) | F-65 |
| [Statement of Changes in Shareholders' Deficit](#fd_004) | F-66 |
| [Statement of Cash Flows](#fd_005) | F-67 |
| [Notes to Financial Statement](#fd_006) | F-68 |

---

![](form20fr12b_005.jpg)

**INDEPENDENT AUDITOR'S REPORT**

**To the Shareholders and Board of Directors of DELIVERZ.AI LTD.** 

To the Shareholders and Board of Directors of Deliverz.ai Ltd.

**Opinion**

We have audited the financial statements of Deliverz.ai Ltd. (the "Company"), which comprise the balance sheet as of December 31, 2024 and 2023, and the related statements of operations, changes in shareholders' deficit, and cash flows for the years then ended, and the related notes to the financial statements (collectively referred to as the "financial statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Substantial Doubt About the Company's Ability to Continue as a Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1.E to the financial statements, the Company has incurred operating losses, has a shareholders' deficit, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 1.E. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

**Responsibilities of Management for the Financial Statements**

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are issued.

**Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

● Exercise
 professional judgment and maintain professional skepticism throughout the audit.

● Identify
 and assess the risks of material misstatement of the financial statements, whether due to
 fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
 include examining, on a test basis, evidence regarding the amounts and disclosures in the
 financial statements.

● Obtain
 an understanding of internal control relevant to the audit in order to design audit procedures
 that are appropriate in the circumstances, but not for the purpose of expressing an opinion
 on the effectiveness of the Company's internal control. Accordingly, no such opinion
 is expressed.

● Evaluate
 the appropriateness of accounting policies used and the reasonableness of significant accounting
 estimates made by management, as well as evaluate the overall presentation of the financial
 statements.

● Conclude
 whether, in our judgment, there are conditions or events, considered in the aggregate, that
 raise substantial doubt about the Company's ability to continue as a going concern
 for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

**/s/ Brightman Almagor Zohar & Co.**

**Certified Public Accountants**

**A Firm in the Deloitte Global Network**

Tel Aviv, Israel

January 16, 2026.

![](form20fr12b_006.jpg)

**DELIVERZ.AI LTD.**

**<u>BALANCE SHEET</u>**

**U.S. dollars in thousands**

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of**<br> **December 31** | **As of**<br> **December 31** |
|  | <br>**Note** | **2024** | **2023** |
| **<u>ASSETS</u>** |  |  |  |
| **CURRENT ASSETS** |  |  |  |
| Cash and cash equivalents |  | 51 | 1 |
| Receivable from tax authorities |  | 1 | - |
| **Total current assets** |  | 52 | 1 |
| **NON-CURRENT ASSETS** |  |  |  |
| Property and equipment, net | **3** | 2 | 2 |
| **Total non-current assets** |  | 2 | 2 |
| **Total assets** |  | 54 | 3 |

---

**The accompanying notes are an integral part of these financial statements.**

**DELIVERZ.AI LTD.**

**<u>BALANCE SHEET (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of**<br> **December 31** | **As of**<br> **December 31** |
|  | <br>**Note** | **2024** | **2023** |
| **<u>LIABILITIES AND SHAREHOLDERS' EQUITY</u>** |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |
| Accounts payable |  | 24 | 128 |
| Employees and payroll accruals |  | 31 | 173 |
| Other payables | **4** | 5 | 30 |
| Loan from shareholders | **5** | 201 | - |
| **Total current liabilities** |  | 261 | 331 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| Loan from shareholders | **5** | 283 | 494 |
| **Total non-current liabilities** |  | 283 | 494 |
| **SHAREHOLDERS' DEFICIT** |  |  |  |
| Ordinary shares of NIS0.001 par value - Authorized: 100,000,000 shares; Issued and outstanding: 1,000,000 and 276,612 as of December 31, 2024 and December 31, 2023, respectively. |  | (\*) | (\*) |
| Additional paid-in capital |  | 3110 | 2619 |
| Accumulated deficit |  | (3600) | (3441) |
| **Total shareholders' deficit** |  | (490) | (822) |
| **Total liabilities and shareholders' deficit** |  | 54 | 3 |

---

**The accompanying notes are an integral part of these financial statements.**

---

| | |
|:---|:---|
| (\*) | Represents an amount less than $1. |

---

**DELIVERZ.AI LTD.**

**<u>STATEMENT OF OPERATIONS</u>**

**U.S. dollars in thousands**

---

| | | | |
|:---|:---|:---|:---|
|  | | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2024** | **2023** |
| **Costs and expenses:** |  |  |  |
| Research and development | **6.A** | 108 | 4 |
| Sales and marketing expenses | **6.B** | 17 |  |
| General and administrative | **6.C** | 115 | 5 |
| Depreciation and amortization |  | 1 | 1 |
| Other income | **6.D** | (92) | - |
| **Operating loss** |  | (149) | (10) |
| Financial expense, net |  | 10 | - |
| **Net loss** |  | (159) | (10) |

---

**The accompanying notes are an integral part of these financial statements.**

**DELIVERZ.AI LTD.**

**<u>STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares (\*)** | **Ordinary Shares (\*)** | | | |
|  | **Number** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total Shareholders'**<br>**Deficit** |
| **Balance as of January 1, 2024** | 276612 | (\*) | 2619 | (3441) | (822) |
| Net loss |  |  |  | (159) | (159) |
| Shares forfeited to former shareholders (see note 1.C) | (276612) | (\*) |  |  |  |
| Issuance of shares to the shareholders of the Company (see note 1.C) | 1000000 | (\*) | 491 |  | 491 |
| **Balance as of December 31, 2024** | **1000000** | (\*) | 3110 | (3600) | (490) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares (\*)** | **Ordinary Shares (\*)** | | | |
|  | **Number** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total Shareholders'**<br>**Deficit** |
| **Balance as of January 1, 2023** | 276612 | (\*) | 2619 | (3431) | (812) |
| Net loss |  |  |  | (10) | (10) |
| **Balance as of December 31, 2023** | 276612 | (\*) | 2619 | (3441) | (822) |

---

---

| | |
|:---|:---|
| (\*) | Represents an amount less than $1. |

---

**The accompanying notes are an integral part of these financial statements.**

**DELIVERZ.AI LTD.**

**<u>STATEMENT OF CASH FLOWS</u>**

**U.S. dollars in thousands**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2023** |
| **<u>Cash flows from Operating Activities</u>** |  |  |
| Net loss | (159) | (10) |
| **Adjustments to reconcile net loss to net cash used in operating activities:** |  |  |
| Depreciation and amortizations | 1 | 1 |
| **Changes in assets and liabilities items:** |  |  |
| Increase (decrease) in receivable from tax authorities | (1) |  |
| Decrease in accounts payable | (103) | (38) |
| Increase (decrease) in employees and payroll accruals | (143) | 39 |
| Decrease in other payables | (25) | (494) |
| **Net cash used in operating activities** | (430) | (502) |
| **<u>Cash flows from Investing Activities</u>** |  |  |
| Purchase of property and equipment | (1) | - |
| **Net cash Used in investing activities** | (1) | - |
| **<u>Cash flows from Financing Activities</u>** |  |  |
| Receipt of short-term loans from shareholders (see note 5) | 201 |  |
| Receipt of long-term loans from shareholders (see note 5) | 283 | 494 |
| Repayment of loans from shareholders (see note 5) | (494) |  |
| Issuance of shares to the shareholders of the Company (see note 1.C) | 491 | - |
| **Net cash provided by financing activities** | 481 | 494 |
| **Increase (decrease) in cash and cash equivalents** | 50 | (8) |
| **Cash and cash equivalents at beginning of the period** | 1 | 9 |
| **Cash and cash equivalents at the end of period** | 51 | 1 |

---

**The accompanying notes are an integral part of these financial statements.**

**DELIVERZ.AI LTD.**

**<u>NOTES TO FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 1: GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Organizational Background and Business Overview**

Deliverz.Ai Ltd. (the "Company") was incorporated in the state of Israel in January 2017. The Company specializes in the development of advanced logistics automation solutions that integrate with third-party autonomous robots. The Company partners with hardware manufacturers to deploy its proprietary software stack, creating a unified, intelligent delivery solutions optimized for complex, high-traffic environments, such as hospitals and large campuses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Grants from the Israel Innovation Authority**

In March 2021, the Company received an approval letter from the Israel Innovation Authority (the "IIA") (previously the Office of the Chief Scientist). According to this letter of approval, the Company was entitled to fund 30% of its total research and development expenses, up to a NIS 5.7 million, for a period of 18 months beginning in January 2021, in addition pursuant to the approval letter, the Company has to pay royalties of 3% to the IIA up to the amount IIA funding received indexed to the U.S. and the accrued interest repayment of the grant is contingent upon the Company successfully completing its research and development plans and generating sales from it. The Company has no obligation to repay these grants if its enhancement plans are not completed or aborted or if it generates no sales. During 2022, the Company entered insolvency proceedings (see note 1.C below), as a result the development expenses approved under the letter of approval were halted. The total amount of grants received as of December 31, 2024 amounted to approximately NIS 1,400 ($384) (including SOFR interest). In addition, during 2022 the Company had received a total of $23 as an advance against its research and development expenses. During 2025, the IIA approved the research and development expenses advance and accordingly, the amount of $21 was recognized as a reimbursement of research and development expenses in the statement of operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Insolvency Proceedings**

In 2022, the Company entered insolvency proceedings through a trustee appointed by the Tel Aviv District Court (the "Court"), due to its inability to meet its obligations to its creditors. In March 2024, the Court approved a creditors' arrangement under which the shareholders of the Company as of insolvency proceedings would forfeit their shares, and the Company issued 1, 000,000 shares to the new shareholders who undertook to provide the Company with a loan in amount of $274, thus 276,612 shares of the Company owned by the former shareholder were forfeited. The loan was used to settle creditor debts that were approved by the trustee. The remainder of the Company's debts in amount of $92 thousand were written off or forgiven and was recorded in the statement of operation as other income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Gix Transaction** 

On July 10, 2025 (the "Closing date"), the Company and its shareholders entered into an agreement with Gix Internet Ltd. (the "Gix"), pursuant to which Gix acquired all shares of the Company from Its shareholders in consideration for the issuance of 518,770 shares of Gix which equal to 25% of the Gix's ordinary shares on the Closing date (the "Gix Transaction") (see note 7).

**DELIVERZ.AI LTD.**

**<u>NOTES TO FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 1: GENERAL (Cont.)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Going Concern**

The Company has incurred an operating loss of $149 and generated negative cash flow from operating activities of $430 for the year ended December 31, 2024. Additionally, as of December 31, 2024, the Company had cash and cash equivalents of $51 and total shareholders' deficit of $3,600. Management expects the Company to continue to generate operating losses.

Management plans to address these conditions by raising funds through its parent company, Gix Internet Ltd. (see note 7) and by generating larger volumes of revenues. However, there is no assurance such funding will be available to the Company or that it will be obtained on terms favorable to the Company or will provide the Company with sufficient funds to meet its objectives, or that the Company will successfully generate sufficient revenue to meet its objectives.

Such conditions raise substantial doubts about the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of assets, carrying amounts or the amount and classification of liabilities that may be required should the Company be unable to continue as a going concern.

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Basis of Presentation and Principles of Consolidation**

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The significant accounting policies followed in the preparation of the financial statements are as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported of assets and liabilities and disclosure at the date of the financial statements and the reported amounts of income and expense during the reporting period. On an ongoing basis, management evaluates its estimates, judgments and assumptions. Management bases its estimates, judgments and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.

**DELIVERZ.AI LTD.**

**<u>NOTES TO FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Functional Currency and Foreign Currency Transactions** 

The functional currency is the currency that best reflects the economic environment in which the Company operates and conducts its transactions. The currency of the primary economic environment in which the Company operates is NIS. Thus, the functional currency of the Company is NIS.

The Company's reporting currency is the U.S. dollar. Accordingly, monetary balances of the Company denominated in currencies other than the NIS are re-measured into NIS, and are then translated, together with all of the Company's assets and liabilities from NIS to US dollars using year-end exchange rates.

Profit or loss items of the Company are translated at average exchange rates during the year. Gains or losses resulting from NIS to USD translation adjustments are recorded as other comprehensive income or loss, and are reflected in stockholders' equity, under Foreign Currency Translation Reserve, in accordance with ASC No. 830. During the year ended December, 31 2024 and 2023, due to the low operational activities the Foreign Currency Translation Reserve was less than $1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Cash and cash equivalents**

The Company considers all short-term investments, which are highly liquid investments with original maturities of three months or less at the date of purchase, to be cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Property and equipment, net**

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line basis over the estimated useful lives, at the following annual rate:

---

| | |
|:---|:---|
|  | **%** |
| Computers and peripheral equipment | 33 |
| Office furniture and equipment | 7 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Revenue Recognition**

The Company generates revenue via leasing contracts with its customers, which cover robot rental, maintenance, and ongoing software updates. These leasing services revenues are measured according to the ASC 606, "Revenue from Contracts with Customers" ("ASC 606").

Leasing revenue is generated from fees charged to customers for access to the Company's products. The performance obligation is satisfied ratably over the contract period as the service is provided, commencing when the subscription service is made available to the customer. The Company's contracts with customers are generally for a term of 24 months. During the years ended December 31, 2024, and 2023 no revenue was generated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Research and development expenses**

Research and development costs are charged to the statements of operations as incurred.

**DELIVERZ.AI LTD.**

**<u>NOTES TO FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 3: PROPERTY AND EQUIPMENT, NET**

**Composition:**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2023** |
| Cost: |  |  |
| Computers and peripheral equipment | $37 | $36 |
| Office furniture and equipment | 1 | 1 |
| Total cost | 38 | 37 |
| Less: accumulated depreciation | (36) | (35) |
| Property and equipment, net | $2 | $2 |

---

Depreciation expenses totaled $1 for the years ended December 31, 2024, and 2023.

 **NOTE 4: OTHER PAYABLES**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2023** |
| IIA |  | 23 |
| Government authorities | $- | $5 |
| Shareholders of the Company | 5 | 2 |
|  | $5 | $30 |

---

**DELIVERZ.AI LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 5: SHAREHOLDERS LOAN** 

On March 13, 2024, as part of the creditors' settlement, the new shareholders provided to the Company with a loan in amount of NIS 1 million (the "Initial Loan"), which was to be used for the repayment of creditor debts approved by the trustee. According to the agreement, the principal and accrued interest of the Initial Loan will be repaid in one payment later of: (1) March 13, 2028, (2) when the Company becomes profitable. The Initial Loan bears annual interest at the rate specified in Section 3(j) of the Israeli Income Tax regulations.

In addition, the new shareholders provided short-term loans for the Company's ongoing operations (the "Operational Loan"). The principal and accrued interest of the Operational Loan will be repaid during November and December 2025 (see note 7). The Operational Loan bears annual interest at the rate specified in Section 3(j) of the Israeli Income Tax regulations.

**NOTE 6: ADDITIONAL INFORMATION REGARDING PROFIT AND LOSS ITEMS**

**Composition:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Research and development expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2024** | **2023** |
| Salaries and related expenses | $90 | $- |
| Professional services and subcontractors | 39 | 4 |
| Settlement with the IIA (see note 1.B) | (21) | - |
|  | $108 | $4 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Sales and marketing expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2024** | **2023** |
| Advertising and marketing expenses | $17 | $- |
|  | $17 | $- |

---

**DELIVERZ.AI LTD.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 6: ADDITIONAL INFORMATION REGARDING PROFIT AND LOSS ITEMS (Cont.)** 

**C**. **General and administrative expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2024** | **2023** |
| Salaries and related expenses | $42 | $- |
| Professional services | 60 | 2 |
| Other | 13 | 3 |
|  | $115 | $5 |

---

**D**. **Other income:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2024** | **2023** |
| Written off or forgiven debts (see note 1.C) | $92 | $- |
|  | $92 | $- |

---

**NOTE 7: SUBSEQUENT EVENTS**

The Company has evaluated subsequent events from December 31, 2024 through January 16, 2026, the date of issuance of these financial statements:

**A.** On July 10, 2025 (the "Closing
 date"), the Company and its shareholders entered into an agreement with Gix Internet
 Ltd. ("Gix"), pursuant to which Gix acquired all shares of the Company from the
 shareholders of the Company in consideration for the issuance of 518,770 shares of Gix which
 equal to 25% of the Gix's ordinary shares on the Closing date (the "Gix Transaction").
 As part of the agreement, several milestones were established as follows: (a) If within 18
 months from the closing date, the Company successfully completes commercial transactions
 (as defined in the agreement) for the supply of 20 autonomous delivery robots, Gix will allocate
 an additional 236,559 of its ordinary shares to the Company shareholders (b) If within 48
 months from Closing date, the Company completes commercial transactions for the supply of
 200 robots, Gix will allocate an additional 301,075 ordinary shares to the Company shareholders.
 In addition, Gix commitment to finance the Company working capital needs in a total amount
 of NIS 3.6 million ($1 million), to be provided by Gix in 12 monthly installments starting
 from the Closing date of the Gix Transaction the loan to the Company will bear annual interest
 at a rate of 6%. As part of the Gix Transaction the Operational Loan together with the accrued interest was assigned to Gix and
the repayment date was deferred until December 31, 2026.

**VIEWBIX INC.**

**CONSOLIDATED FINANCIAL STATEMENTS**

**<u>DECEMBER 31, 2025</u>**

**<u>CONTENTS</u>**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#sh_001) (PCAOB ID No. 1197) | F-73 |
| [Consolidated Balance Sheets](#sh_002) | F-75 |
| [Consolidated Statements of Operations](#sh_003) | F-77 |
| [Consolidated Statements of Changes in Shareholders' Equity](#sh_004) | F-78 |
| [Consolidated Statements of Cash Flows](#sh_005) | F-80 |
| [Notes to the Consolidated Financial Statements](#sh_006) | F-83 |

---

![](form10-k_005.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**To the Stockholders and Board of Directors of Viewbix Inc.**

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Viewbix Inc. and its subsidiaries (the "Company") as of December 31, 2025, and 2024 and the related consolidated statements of operations, changes in shareholder's equity and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern** 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1I to the financial statements, the decrease in revenues and cash flows from operations may result in the Company's inability to repay its debt obligations during the 12-month period following the issuance date of these financial statements. Management's plans in regard to these matters are also described in Note 1I. These conditions raise a substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the board of directors and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

 ****

 **

 ****

***Business combinations – accounting for the acquisition of Metagramm Software Ltd. — Refer to Note 1c and 8c to the Consolidated Financial Statements***

 **

*Critical Audit Matter Description*

In March 24, 2025 (the "acquisition date"), the Company completed the acquisition of 100% of the issued and outstanding share capital of Metagramm Software Ltd. ("Metagramm") for a total consideration of $6.17 million, of which $1,010 thousands was recorded as contingent consideration related to a potential earn-out provision, which is based on achieving certain financing and revenue milestones of Metagramm during the years of the earn-out provision terms.

The transaction was accounted for as a business combination in accordance with ASC 805 "Business Combinations". Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their respective fair values which primarily consisted of technology, customer relationships and goodwill intangible assets of $550 thousands, $390 thousands and $5,309 thousands, respectively (collectively the "Intangible Assets"). In addition, the Company estimated the fair value of the contingent consideration ("Earn-out Liability") of $1,010 thousands as of the acquisition date.

We identified the valuation of the Intangible Assets and Earn-out Liability as a critical audit matter because auditing management's estimations of the fair value of the Intangible Assets and Earn-out Liability were complex due to the significant assumptions and judgment required by management in determining the fair value of the Intangible Assets and Earn-out Liability. The Company used the income approach to measure the fair value of the Intangible Assets and the Monte Carlo Method to measure the fair value of the Earn-out Liability (the "Valuation Models"). The significant assumptions used to estimate the fair value of the Intangible Assets and Earn-out Liability included, among others, forecasted revenues, revenues growth rates and discount rates. These significant assumptions are forward-looking and could be affected by future economic and market conditions.

 

*How the Critical Audit Matter Was Addressed in the Audit*

 

Our audit procedures related to forecasts used by management to estimate the fair value of the Intangible Assets and Earn-out Liability included the following, among others:

● We assessed the reasonableness of management's forecasts of future cash flows by comparing the forecasts to historical results and by evaluating revenue trends and material events that occurred after the acquisition date and their potential influence on management's forecasts, as well as by testing the other underlying source information for accuracy and completeness.

● We assessed the reasonableness of management's estimations relating to the Earn-out Liability milestones by inquiring management personnel, comparing them to historical results and by evaluating trends, circumstances and material events that occurred after the acquisition date and their potential influence on management's estimations.

● With the assistance of our fair value specialists, we evaluated the Valuation Models and the reasonableness of the significant assumptions including discount rate, tested the mathematical accuracy of the calculations, developed a range of independent estimates and compared those to the discount rate selected by management.

/s/ Brightman Almagor Zohar & Co.

Certified Public Accountants

A Firm in the Deloitte Global Network

Tel Aviv, Israel

March 27, 2026

We have served as the Company's auditor since 2012.

**VIEWBIX INC.**

**<u>CONSOLIDATED BALANCE SHEETS</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Note** | **As of**<br> **December 31**<br>**2025** | **As of**<br> **December 31**<br>**2024** |
| **<u>ASSETS</u>** |  |  |  |
| **CURRENT ASSETS** |  |  |  |
| Cash and cash equivalents |  | 1018 | 24 |
| Restricted deposits | **14** | 20 | 30 |
| Accounts receivable |  | 315 | 557 |
| Loan to parent company | **17** |  | 3981 |
| Other current assets | **4** | 299 | 775 |
| Current assets of discontinued operations | **3** | - | 2385 |
| **Total current assets** |  | 1652 | 7752 |
| **NON-CURRENT ASSETS** |  |  |  |
| Deferred taxes | **13** | 12 | 56 |
| Property and equipment, net | **5** | 56 | 17 |
| Financial assets measured at cost method | **8B** | 600 |  |
| Intangible assets, net | **7** | 2045 | 1886 |
| Goodwill | **7** | 6392 | 1083 |
| Non-current assets of discontinued operations | **3** | - | 11172 |
| **Total non-current assets** |  | 9105 | 14214 |
| **Total assets** |  | 10757 | 21966 |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**VIEWBIX INC.**

**<u>CONSOLIDATED BALANCE SHEETS (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**Note** | **As of**<br> **December 31**<br>**2025** | **As of**<br> **December 31**<br>**2024** |
| **<u>LIABILITIES AND SHAREHOLDERS' EQUITY</u>** |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |
| Accounts payable | **9** | 1204 | 2442 |
| Short-term loans | **11** | 260 | 1480 |
| Current maturities of long-term loans | **11** | 781 | 3064 |
| Embedded derivatives | **1112** |  | 29 |
| Short-term convertible loans | **11** | 867 | 779 |
| Other payables | **10** | 951 | 597 |
| Current liabilities of discontinued operations | **3** | - | 4538 |
| **Total current liabilities** |  | 4063 | 12929 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| Long-term loans, net of current maturities | **11** | 586 | 496 |
| Deferred taxes | **13** | 326 | 222 |
| Earn-out liability | **8** | 793 |  |
| Non-current liabilities of discontinued operations | **3** | - | 812 |
| **Total non-current liabilities** |  | 1705 | 1530 |
| Commitments and Contingencies | **14** |  |  |
| **SHAREHOLDERS' EQUITY** | **15** |  |  |
| Common stock of $0.0001 par value - Authorized: 490,000,000 shares; Issued and outstanding: 10,670,392 and 5,296,945 shares as of December 31, 2025, and December 31, 2024, respectively (\*). |  | 4 | 3 |
| Additional paid-in capital |  | 51032 | 28482 |
| Accumulated deficit |  | (46047) | (22714) |
| Equity attributed to shareholders of Viewbix Inc. |  | 4989 | 5771 |
| Non-controlling interests |  | - | 1736 |
| **Total equity** |  | 4989 | 7507 |
| **Total liabilities and shareholders' equity** |  | 10757 | 21966 |

---

(\*) Share and per share data in these financial statements have been retrospectively adjusted, for all periods presented, to reflect a number of shares that is equivalent to the number of shares of the Company post the Reverse Stock Split (see note 15.E).

**The accompanying notes are an integral part of these consolidated financial statements.**

**VIEWBIX INC.**

**<u>CONSOLIDATED STATEMENTS OF OPERATIONS</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2025** | **2024** |
| **Revenues** |  | 1569 | 4969 |
| **Costs and Expenses:** |  |  |  |
| Traffic-acquisition and related costs | **16A** | 297 | 1730 |
| Research and development | **16B** | 69 | 830 |
| Selling and marketing | **16C** | 100 | 309 |
| General and administrative | **16D** | 1625 | 1853 |
| Depreciation and amortization | **57** | 848 | 813 |
| Other expenses, net | **1D,6** | 814 | 271 |
| **Operating loss** |  | (2184) | (837) |
| Financial expense, net | **16E** | 11253 | 2610 |
| **Loss from continuing operations, before taxes** |  | (13437) | (3447) |
| Income tax expense (benefit) | **13** | (39) | 131 |
| **Net loss from continuing operations** |  | (13398) | (3578) |
| **Net loss from discontinued operations** |  | (7417) | (10528) |
| **Net loss** |  | (20815) | (14106) |
| Less: net loss attributable to non-controlling interests |  | (1530) | (2053) |
| **Net loss attributable to shareholders of Viewbix Inc.** |  | (19285) | (12053) |
| **Net loss from continuing operations attributable to:** |  |  |  |
| Shareholders of Viewbix Inc. |  | (13398) | (3578) |
| Non-controlling interests |  | - | - |
|  |  | (13398) | (3578) |
| **Net loss from discontinued operations attributable to:** |  |  |  |
| Shareholders of Viewbix Inc. |  | (5887) | (8475) |
| Non-controlling interests |  | (1530) | (2053) |
|  |  | (7417) | (10528) |
| **Net loss per share from continuing operations – Basic and diluted attributed to shareholders:** |  | (1.58) | (0.80) |
| **Net loss per share from discontinued operations – Basic and diluted attributed to shareholders:** |  | (0.69) | (1.89) |
| **Total net loss per share – Basic and diluted attributed to shareholders:** |  | (2.28) | (2.69) |
| Weighted average number of shares – Basic and diluted (\*): |  | 8474057 | 4476013 |

---

(\*) Share and per share data in these financial statements have been retrospectively adjusted, for all periods presented, to reflect a number of shares that is equivalent to the number of shares of the Company post the Reverse Stock Split (see note 15.E).

**The accompanying notes are an integral part of these financial statements.**

**VIEWBIX INC.**

**<u>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock (\*)** | **Common stock (\*)** | | | | | |
|  | **Number** | **Amount** | **Additional**<br> **paid-in**<br>**capital** | **Accumulated**<br>**Deficit** | **Total**<br> **Attributed**<br> **to the company's**<br>**Shareholders** | **Non-**<br> **Controlling**<br>**Interests** | **Total**<br>**Equity** |
| **Balance as of January 1, 2025** | 5296945 | 3 | 28482 | (22714) | 5771 | 1736 | 7507 |
| Net loss |  |  |  | (19285) | (19285) | (1530) | (20815) |
| Share-based compensation (see note 15.A) | 37500) |  | 75 |  | 75 | 3 | 78 |
| Shares issued in connection with the Reverse Stock Split (see note 15.E) | 14) |  |  |  |  |  |  |
| Issuance of shares in connection with acquisition of a subsidiary (see note 8.C) | 1323000) |  | 5159 |  | 5159 |  | 5159 |
| Issuance of shares and warrants in connection with conversion of loans (see notes 11.D, 11.E, 11.F) | 922957) |  | 11072 |  | 11072 |  | 11072 |
| Issuance of shares and warrants in connection with a private placement (see note 15.C) | 848763) |  | 4023 |  | 4023 |  | 4023 |
| Exercise of warrants (see notes 15.A, 15.B, 15.C) | 2241213 | 1 | 2221 |  | 2222 |  | 2222 |
| Redemption of loan to parent company (see note 17) |  |  |  | (4048) | (4048) |  | (4048) |
| Deconsolidation of Cortex (see note 8.B) | - | - | - | - | - | (209) | (209) |
| **Balance as of December 31, 2025** | 10670392 | 4 | 51032 | (46047) | 4989 | - | 4989 |

---

(\*) Share and per share data in these financial statements have been retrospectively adjusted, for all periods presented, to reflect a number of shares that is equivalent to the number of shares of the Company post the Reverse Stock Split (see note 15.E).

---

| | |
|:---|:---|
| (\*\*) | Represents an amount less than $1. |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**VIEWBIX INC.**

**<u>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock (\*)** | **Common stock (\*)** | | | | | |
|  | **Number** | **Amount** | **Additional**<br> **paid-in**<br>**capital** | **Accumulated**<br>**Deficit** | **Total**<br> **Attributed**<br> **to the**<br> **company's**<br>**Shareholders** | **Non- Controlling**<br>**Interests** | **Total**<br>**Equity** |
| **Balance as of January 1, 2024** | 3732169 | 3 | 25476 | (10661) | 14818 | 3806 | 18624 |
| Net loss |  |  |  | (12053) | (12053) | (2053) | (14106) |
| Share-based compensation (see note 15.F) |  |  | 12 |  | 12 | (1) | 11 |
| Expiration of options granted to subsidiary's employees |  |  | 16 |  | 16 | (16) |  |
| Issuance of shares upon RSUs vesting (see note 15.F) | 6378) |  |  |  |  |  |  |
| Issuance of shares to consultants (see note 15.A) | 120000) |  | 57 |  | 57 |  | 57 |
| Issuance of shares and warrants in connection with short-term loan and convertible loans (see notes 11, 15.A) | 1168679) |  | 890 |  | 890 |  | 890 |
| Issuance of shares and warrants in connection with a private placement (see note 15.B) | 269719) |  | 198 |  | 198 |  | 198 |
| Reclassification of derivative warrant liability to equity (see note 11.D) | - | - | 1833 | - | 1833 | - | 1833 |
| **Balance as of December 31, 2024** | 5296945 | 3 | 28482 | (22714) | 5771 | 1736 | 7507 |

---

(\*) Share and per share data in these financial statements have been retrospectively adjusted, for all periods presented, to reflect a number of shares that is equivalent to the number of shares of the Company post the Reverse Stock Split (see note 15.E).

---

| | |
|:---|:---|
| (\*\*) | Represents an amount less than $1. |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**VIEWBIX INC.**

**<u>CONSOLIDATED STATEMENTS OF CASH FLOWS</u>**

**U.S. dollars in thousands (except share data)**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| **<u>Cash flows from Operating Activities of Continuing Operations</u>** |  |  |
| Net loss | 20815 | 14106 |
| Less: net loss from discontinued operations | 7417 | 10528 |
| Net loss from continuing operations | 13398 | 3578 |
| **Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:** |  |  |
| Depreciation and amortizations | 848 | 813 |
| Share-based compensation | 75 | 69 |
| Deferred taxes | (68) | (40) |
| Accrued interest, net | 23 | 33 |
| Interest income | (63) | (160) |
| Amortization of loan discounts | 38 | 59 |
| Change in the fair value of financial liabilities at fair value through profit or loss (see note 12) | 9904 | (11) |
| Amortization of deferred debt issuance costs (see notes 11.D, 11.E, 11.F) | 632 | 152 |
| Equity based debt issuance costs (see note 11.D) |  | 26 |
| Loss from substantial debt terms modification (see note 11.C) |  | 1914 |
| Loss on sale and disposal of property and equipment |  | 73 |
| Loss from termination of lease agreement |  | 8 |
| **Changes in assets and liabilities items:** |  |  |
| Decrease in accounts receivable | 297 | 1967 |
| Decrease (increase) in other current assets | (153) | 319 |
| Decrease in accounts payable | (1226) | (372) |
| Increase in other payables | 322 | 128 |
| **Net cash provided by (used in) operating activities from continuing operations** | (2769) | 1400 |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**VIEWBIX INC.**

**<u>CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| **<u>Cash flows from Investing Activities of Continuing Operations</u>** |  |  |
| Net cash from acquisition of a subsidiary (see appendix A) | 12 |  |
| Net cash from deconsolidation of a subsidiary (see appendix B) | (163) | - |
| **Net cash used in investing activities from continuing operations** | (151) | - |
| **<u>Cash flows from Financing Activities of Continuing Operations</u>** |  |  |
| Receipt of short-term bank loans | 8325 | 935 |
| Receipt of short-term convertible loans | 630 | 630 |
| Repayment of short-term bank loans | (9203) | (3297) |
| Receipt of a long-term bank loan (see note 11.B) | 1562 |  |
| Repayment of long-term bank loans | (3755) | (510) |
| Increase in loan to parent company | (4) | (69) |
| Proceeds from issuance of shares and warrants in connection with 2024 Private Placement, net of issuance costs (see note 15.B) |  | 198 |
| Proceeds from issuance of shares and warrants in connection with July 2025 Private Placement, net of issuance costs (see note 15.C) | 4023 |  |
| Proceeds from exercise of warrants | 2222 | - |
| **Net cash provided by (used in) financing activities from continuing operations** | 3800 | (2113) |
| **<u>Cash flows of Discontinued Operations</u>** |  |  |
| Net cash provided by (used in) operating activities from discontinued operations | (694) | 143 |
| Net cash used in investing activities from discontinued operations |  | (1) |
| Net cash provided by (used in) financing activities from discontinued operations | 170 | (670) |
| **Net cash used in discontinued operations** | (524) | (528) |
| **Increase (decrease) in cash and cash equivalents and restricted cash** | 356 | (1241) |
| **Cash and cash equivalents and restricted cash at beginning of period** | 682 | 1923 |
| **Cash and cash equivalents and restricted cash at end of period** | 1038 | 682 |
| **<u>Supplemental Disclosure of Cash Flow Activities:</u>** |  |  |
| **Cash paid during the period** |  |  |
| Taxes paid | (8) | (123) |
| Interest paid | (405) | (676) |
|  | (413) | (799) |
| **Substantial non-cash activities:** |  |  |
| Deemed extinguishment and re-issuance of debt (see note 11.C) |  | 500 |
| Termination of operating lease agreement (see note 6) |  | 389 |
| Redemption of loan to parent company (see note 17) | 4048 |  |
| Conversion of loans into shares and warrants (see notes 11.D, 11.E, 11.F) | 922 |  |
| Investment in shares received in connection with deconsolidation of Cortex (see note 8.B) | 600 |  |

---

**The accompanying notes are an integral part of these consolidated financial statements.**

**VIEWBIX INC.**

**<u>CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

**<u>Appendix A</u>:**

---

| | |
|:---|:---|
|  | **As of**<br> **March 24, 2025** |
| **Consolidation of Metagramm (see note 8.C):** |  |
| Other current assets | 18 |
| Property and equipment | 106 |
| Goodwill | 5309 |
| Technology, net of deferred taxes | 424 |
| Customer Relations, net of deferred taxes | 300 |
| Earn-out liability | (1010) |
| Consideration paid in Company's shares | (5159) |
| **Balance as of March 24, 2025** | (12) |

---

**<u>Appendix B</u>:**

---

| | |
|:---|:---|
|  | **As of**<br> **November 9, 2025** |
| **Deconsolidation of Cortex (see note 8.B):** |  |
| Net working capital other than cash | 2000 |
| Property and equipment | (3) |
| Deferred taxes | (152) |
| Technology, net of deferred taxes | (1860) |
| Customer Relations, net of deferred taxes | (1457) |
| Short-term loan | 1000 |
| Derecognition of non-controlling interests | 209 |
| Consideration paid in shares | 600 |
| Gain from deconsolidation of Cortex | (174) |
| **Balance as of November 9, 2025** | 163 |

---

**The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements.**

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Organizational Background**

Viewbix Inc. (formerly known as Virtual Crypto Technologies, Inc.) (the "Company") was incorporated in the State of Delaware on August 16, 1985, under a predecessor name, The InFerGene Company ("InFerGene Company"). On August 25, 1995, a wholly owned subsidiary of InFerGene Company merged with Zaxis International, Inc., an Ohio corporation, which following such merger, the surviving entity, InFerGene Company, changed its name to Zaxis International, Inc. In 2015 the Company changed its name to Emerald Medical Applications Corp., subsequent to which the Company, through its subsidiary, was engaged in the development of technology for use in detection of skin cancer. On January 29, 2018, the Company ceased its business operations in this field.

On January 17, 2018, the Company formed a new wholly owned subsidiary under the laws of the State of Israel, Virtual Crypto Technologies Ltd. ("VCT Israel"), to develop and market software and hardware products facilitating and supporting the purchase and/or sale of cryptocurrencies. Effective as of March 7, 2018, the Company's name was changed from Emerald Medical Applications Corp. to Virtual Crypto Technologies, Inc. VCT Israel ceased its business operation in 2019 and prior to consummation of the Recapitalization Transaction. On January 27, 2020, VCT Israel was sold to a third party for NIS 50 thousand (approximately $13).

On February 7, 2019, the Company entered into a share exchange agreement (the "Share Exchange Agreement" or the "Recapitalization Transaction") with Gix Internet Ltd., a company organized under the laws of the State of Israel ("Gix" or "Parent Company"), pursuant to which, Gix assigned, transferred and delivered its 99.83% holdings in Viewbix Ltd., a company organized under the laws of the State of Israel ("Viewbix Israel"), to the Company in exchange for shares of the Company, which resulted in Viewbix Israel becoming a subsidiary of the Company. In connection with the Share Exchange Agreement, effective as of August 7, 2019, the Company's name was changed from Virtual Crypto Technologies, Inc. to Viewbix Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Reorganization Transaction**

On December 5, 2021, the Company entered into a certain Agreement and Plan of Merger with Gix Media Ltd. ("Gix Media"), an Israeli company and the majority-owned (77.92%) subsidiary of Gix, the Parent Company and Vmedia Merger Sub Ltd., an Israeli company and wholly-owned subsidiary of the Company ("Merger Sub"), pursuant to which, Merger Sub merged with and into Gix Media, with Gix Media being the surviving entity and a wholly-owned subsidiary of the Company (the "Reorganization Transaction").

On September 19, 2022, the Reorganization Transaction was consummated and as a result, all outstanding ordinary shares of Gix Media, having no par value (the "Gix Media Shares") were delivered to the Company in exchange for the Company's shares of common stock, par value $0.0001 per share ("Common Stock"). As a result of the Reorganization Transaction, the former holders of Gix Media Shares, who previously held approximately 68% of the Company's Common Stock, hold approximately 97% of the Company's Common Stock, and Gix Media became a wholly owned subsidiary of the Company.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Reorganization Transaction (Cont.)**

In connection with the closing of the Reorganization Transaction, the Company filed an Amended and Restated Certificate of Incorporation (the "Amended COI") with the Secretary of State of Delaware, effective as of August 31, 2022, pursuant to which, concurrently with the effectiveness of the Amended COI, the Company, among other things, effected a reverse stock split of its common stock at a ratio of 1-for-28.

As the Company and Gix Media were consolidated both by the Parent Company and Xylo Technologies Ltd. (formerly known as Medigus Ltd.) (the "Ultimate Parent"), before and after the Reorganization Transaction, the Reorganization Transaction was accounted for as a transaction between entities under common control. Accordingly, the financial information of the Company and Gix Media is presented in these financial statements, for all periods presented, reflecting the historical cost of the Company and Gix Media, as it is reflected in the consolidated financial statements of the Parent Company, for all periods preceding March 1, 2022, the date the Ultimate Parent obtained a controlling interest in the Parent Company and as it is reflected in the consolidated financial statements of the Ultimate Parent for all periods subsequent to March 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Business Overview**

The Company and its subsidiaries (the "Group"), Gix Media and the former majority-owned subsidiary of Gix Media, Cortex Media Group Ltd. ("Cortex"), operate in the field of digital advertising. As of November 2025, the Group had two main activities which were reported as separate operating segments: the search segment and the digital content segment. On November 9, 2025, Gix Media sold all of its holdings in Cortex (see notes 8.A, 8.B). Subsequently, the Group ceased its operations in the digital content segment.

The search segment develops a variety of technological software solutions, which perform automation, optimization, and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted by Gix Media.

The digital content segment was engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, by utilizing such content to obtain and route internet user traffic for its customers. The digital content segment activity was conducted by Cortex until November 9, 2025 (see note 8.B).

On March 24, 2025, the Company entered into a securities exchange agreement with Metagramm Software Ltd. ("Metagramm") and all of the shareholders of Metagramm, pursuant to which the Company acquired 100% of Metagramm's share capital in exchange for consideration equal to $5,159. The consideration was paid to Metagramm's shareholders in the form of 1,323,000 shares of common stock of the Company, representing 19.99% of the Company's issued and outstanding share capital (see note 8.C).

Metagramm specializes in developing advanced writing assistance tools that leverage artificial intelligence, machine learning and natural language processing technologies. Metagramm's main product, "Bubbl" is a writing tool designed to provide personalized and customized text tailored to the user's unique expression and can translate various languages into English. Metagramm licenses its products on a subscription basis to businesses and individual customers.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Impact of the War in Israel**

In October 2023, Israel was attacked by the Hamas terrorist organization and entered a state of war on several fronts (the "War").

In January 2024, Gix Media and Cortex filed a request with the Israeli Tax Authority (the "ITA") to receive compensation for the decrease in revenues related to the War. In April and May 2024, Gix Media and Cortex received a total of $337 from the ITA that were recorded as a reduction of other expenses, net in the Company's consolidated statement of operations for the year ended December 31, 2024.

In June 2025, following escalating threats and intelligence reports of imminent attacks, Israel conducted preemptive strikes on military and nuclear infrastructure in Iran. Iran responded with drones and missiles attacks, some of which caused civilian casualties and infrastructure damage. After 12 days of hostilities, a ceasefire between Israel and Iran was reached in June 2025.

In October 2025, Israel and Hamas entered into a ceasefire agreement calling for a permanent end of the War. However, the situation remains volatile, and the risk of a broader regional escalation involving additional actors still exists.

On February 28, 2026, after the reporting date, "The Lion's Roar Operation" (the "Operation") commenced, a joint military operation by the United States and Israel involving attacks in Iran. In response, Iran launched ballistic missiles and unmanned aerial vehicles toward Israel, Europe and neighboring countries in the Gulf region, and also launched counter-strikes against U.S. forces and allied bases throughout the Gulf region. These events have resulted in civilian casualties and property damage in Israel. Additionally, Hezbollah, a terrorist organization in Lebanon, joined the attacks against Israel and Israel has started military operations in Lebanon.

Following the commencement of the Operation, Israel's Home Front Command announced a "special home front situation" and updated safety guidelines that include, among other measures, restrictions on passenger flights, limitations on gatherings, broad reserve recruitment, and temporary closure of certain businesses, which has contributed to a partial reduction in economic activity.

As the Group's customers are mainly in the U.S. and Europe, its operations, revenues, and profitability are not directly affected by the Operation. However, this is an ongoing event and there is uncertainty regarding its duration, nature, and scope, management is unable to reasonably estimate the extent of the impact at this time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Cortex Adverse Effect**

In April 2024, the Company was informed by Cortex that a significant customer of Cortex recently notified Cortex it will stop advertising on Cortex's sites, as part of its policy decision to cease advertising on Made for Advertising ("MFA") sites (the "Cortex Adverse Effect"). The Cortex Adverse Effect, which has materially affected Cortex's business and operations, has occurred following certain recent developments relating to publishers that are categorized by a number of on-line advertisers as MFA, including decisions made by leading media on-line advertisers to prioritize different media categories and implement publishing restrictions in connection with MFA. Due to the Cortex Adverse Effect and additional circumstances as explained in note 3, the Company recorded impairments in the goodwill and intangible assets related to the digital content segment of $5,525 and $7,675 as of December 31, 2025 and 2024, respectively. On November 9, 2025, Gix Media sold all of its holdings in Cortex (see notes 3 and 8.B).

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Filing of Insolvency Petition Against Gix Media**

On March 27, 2025, a petition (the "Petition") was filed with the District Court of Tel Aviv-Jaffa (the "Court") for a court order to commence insolvency proceedings against Gix Media. The Petition was filed by a primary service provider of Gix Media (the "Service Provider") alleging that Gix Media owes it approximately $260 (excluding linkage differentials and interest) and that Gix Media is unable to repay its debts to the Service Provider.

On July 16, 2025, the Court approved a settlement agreement entered into between Gix Media, the Service Provider and other creditors of Gix Media that joined the Petition (collectively, the "Service Providers") with respect to the debts owed by Gix Media to the Service Providers. In connection with the settlement agreement, the Company agreed to provide a guarantee for the debts owed by Gix Media to the Service Providers. On July 22, 2025, pursuant to the terms of the settlement agreement, Gix Media paid approximately $1.13 million to the Service Providers as payment in full of the debts owed to the Service Providers. As a result of such payment in full by Gix Media to the Service Providers, the Petition was dismissed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Nasdaq Uplisting**

On June 4, 2025, the Company's shares of common stock were approved for listing on The Nasdaq Capital Market ("Nasdaq"). The Company's shares began trading under the symbol "VBIX" on the Nasdaq on June 5, 2025 (the "Uplist Date"). The Company's shares were previously quoted on the OTC Markets, Pink Tier under the symbol "VBIX", and ceased to be quoted on the OTC Markets, Pink Tier at the close of business on June 4, 2025 (the "Uplist").

As a result of the Uplist, the Company received during June and July 2025, aggregate gross proceeds of $2,852 in connection with a private placement and three facility agreements, consisting of $630 from the receipt of additional loans and $2,222 from the exercise of warrants (see notes 11.D, 11.E and 11.F).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. Quantum Acquisition and Private Placement**

On December 15, 2025, the Company entered into a securities exchange agreement (the "Quantum Exchange Agreement") with Quantum X Labs Ltd. ("Quantum") and certain of the shareholders of Quantum (the "Quantum Shareholders") pursuant to which the Company agreed to issue to the Quantum Shareholders an aggregate amount of up to 40.0% of the Company's issued and outstanding capital stock as of December 15, 2025, inclusive of 800,000 shares of the Company's common stock issuable by the Company in a private placement offering (the "Private Placement Shares") that the Company entered into in November 2025 (see also note 20.B), consisting of (i) up to 2,666,000 shares of our common stock, representing 19.99% of the Company's issued and outstanding capital stock (the "Viewbix Exchange Shares"), inclusive of the Private Placement Shares, and (ii) pre-funded warrants to purchase up to 4,447,595 shares of the Company's common stock, representing the balance of up to the 40.0%, as of December 15, 2025, less the Viewbix Exchange Shares, in exchange for up to 100%, but not less than 85%, of Quantum's issued and outstanding share capital on a fully diluted and post-closing basis, equal to an amount up to 589,319 of Quantum's ordinary shares (the "Quantum Acquisition").

In addition, pursuant to the Quantum Exchange Agreement, the Company may issue to the Quantum Shareholders up to 12,702,847 additional shares of the Company's common stock or pre-funded warrants to purchase shares of the Company's common stock, only following the 12-month anniversary of the closing date of the Quantum Acquisition and upon the achievement of specified post-closing milestones as defined in the Quantum Exchange Agreement.

On March 4, 2026, the Quantum Acquisition was closed along with a private placement transaction (see note 20).

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Going Concern**

During the second half of 2023 and the year ended December 31, 2024, the Company experienced a decrease in its revenues from the digital content and search segments, as a result of the Cortex Adverse Effect (see note 1.E), a decrease in user traffic acquired from third party advertising platforms, an industry-wide decrease in advertising budget, changes and updates to internet browsers' technology, which adversely impacted the Company's ability to acquire traffic in the search segment and a decrease in revenues from routing of traffic acquired from third-party strategic partners in the search segment, as a result of lack of availability of suppliers credit from such third party strategic partners. As a result of the foregoing, during the year ended December 31, 2025, the Company recorded an operating loss from continuing operations of $2,184 compared to $837 during the year ended December 31, 2024. Additionally, the Company recorded a net loss of $20,815 during the year ended December 31, 2025, compared to $14,106 during the year ended December 31, 2024. As of December 31, 2025, the Company had cash and cash equivalents of $1,018, bank loans of $1,627 and accumulated deficit of $46,047.

The decline in revenues and other circumstances described above raise substantial doubts about the Company's ability to continue as a going concern during the 12-month period following the issuance date of these financial statements.

Management's response to these conditions included reduction of salaries and related expenses and reduction of professional services in the research and development and selling and marketing functions, reduction of other operational expenses, such as lease costs and overheads, as well as creation of new partnerships and other new income sources.

In addition, the Company raised funds during 2025, increasing its cash balance, as follows: (1) pursuant to the consummation of the Uplist (as described in note 1.G above), the Company received during June and July 2025, aggregate gross proceeds of $2,852 in connection with a private placement (see note 15.B) and three facility agreements (see notes 11.D, 11.E, 11.F), consisting of $630 from the receipt of additional loans and $2,222 from the exercise of warrants and (2) on July 14, 2025, the Company closed an additional private placement transaction with certain accredited investors, pursuant to which the Company received gross proceeds of $4.5 million (see note 15.C).

Moreover, on March 4, 2026, the Company closed a private placement transaction with certain accredited investors, pursuant to which the Company received gross proceeds of $1.4 million (see note 20.B).

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 1: GENERAL (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Going Concern (Cont.)**

Notwithstanding the foregoing, there remains uncertainty as to whether the Company will be able to secure additional funding when needed. Such conditions raise substantial doubts about the Company's ability to continue as a going concern for at least a year after the issuance date of the accompanying financial statements.

These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Basis of Presentation and Principles of Consolidation:**

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and were prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All intercompany accounts and transactions have been eliminated in consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported of assets and liabilities and disclosure at the date of the consolidated financial statements and the reported amounts of income and expense during the reporting period. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, income taxes, deferred taxes, share-based compensation and leases. Actual results could differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Functional Currency and Foreign Currency Transactions**

Most of the revenues of the Company are received in U.S. dollars. In addition, a substantial portion of the costs of the Company are incurred in U.S. dollars. Therefore, the Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operates. Thus, the functional and reporting currency of the Company is the U.S. dollar.

Accordingly, monetary balances denominated in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Statement of the Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters" ("ASC No. 830").

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Functional Currency and Foreign Currency Transactions (Cont.)**

Under ASC No. 830, transactions and balances originally denominated in U.S. dollars are presented at their original amounts. Balances in non-U.S. dollar currencies are translated into U.S. dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-U.S. dollar transactions and other items in the statements of operations (indicated below), the following exchange rates are used: (i) for transactions exchange rates at transaction dates and (ii) for other items (derived from non-monetary balance sheet items such as depreciation and amortization) historical exchange rates. Currency transaction gains and losses are presented in the financial income net, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Cash and cash equivalents**

The Company considers all short-term investments, which are highly liquid investments with original maturities of three months or less at the date of purchase, to be cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Restricted Deposits**

Restricted deposits are held as security for the Group's credit card and rental obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Accounts receivable and allowance for credit losses**

Accounts receivables are recorded at the invoiced amount, net of an allowance for credit losses. The Group evaluates its outstanding accounts receivables and establishes an allowance for credit losses based on information available on their credit condition, current aging, historical experience, future economic and market conditions. These allowances are reevaluated and adjusted periodically as additional information is available. Changes in the allowance for expected credit losses are recorded under general and administrative expenses in the consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Fixed assets**

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line basis over the estimated useful lives, at the following annual rates:

SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIVES

---

| | |
|:---|:---|
|  | **%** |
| Computers and peripherals equipment | 33 |
| Office furniture and equipment | 6-15 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. Leases**

In accordance with ASC No. 842 "Leases", the Company determines if an arrangement is a lease at inception. If an arrangement is a lease, the Company determines whether it is an operating lease or a finance lease at the lease commencement date. Operating leases are included in operating lease right-of-use asset, operating lease liabilities – current, and non-current operating lease liabilities in the Company's consolidated balance sheets.

Operating lease assets represent the Company's right to control the use of an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the estimated lease.

Operating lease assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term.

The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The incremental borrowing rate is estimated based on factors such as the lease term, credit standing and the economic environment of the location of the lease. Variable lease payments, including payments based on an index or a rate, are expensed as incurred and are not included within the operating lease asset and operating lease liabilities. The Company does not separate non-lease components from lease components for its leases of real estate.

The Company's lease terms were the noncancelable periods, including any rent-free periods provided by the lessor, and included options to extend or terminate the lease when it was reasonably certain that the Company will exercise that option. At lease inception, and in subsequent periods as necessary, the Company estimated the lease term based on its assessment of extension and termination options that were reasonably certain to be exercised. Lease costs were recognized on a straight-line basis over the lease term.

The Company does not recognize operating lease asset and operating lease liabilities for leases with terms shorter than 12 months. Lease costs for short-term leases are recognized on a straight-line basis over the lease term.

When a lease is terminated before the expiration of the lease term, the Company derecognizes the right of use asset and corresponding lease liability. Any difference is recognized as a gain or loss related to the termination of the lease.

The Company had a material non-functional currency lease. Lease liabilities in respect of leases denominated in a foreign currency were remeasured using the exchange rate at each reporting date. Lease assets were measured at historical rates, which were not affected by subsequent changes in the exchange rates.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Revenue Recognition**

As described in note 1.C, the Company generates revenues from obtaining internet user traffic and routing such traffic to its customers. The Company is entitled to receive consideration for its service upon each individual internet user traffic routed to and monetized by its customers.

The Company's revenues are measured according to the ASC 606, "Revenue from Contracts with Customers" ("ASC 606"). Under ASC 606, revenues are measured according to the amount of consideration that the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties, such as VAT taxes. Revenues are presented net of VAT. The Company's payments terms are less than one year. Therefore, no finance component is recognized.

As the Company operates as the primary obligor in its arrangements and has sole discretion in determining which of its customers internet user traffic is to be routed, revenues are presented on a gross basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. Traffic-acquisition and related costs**

Traffic acquisition and related costs consist primarily of fees paid to suppliers in connection with the Company's internet traffic sources, as well as internal costs incurred in connection with the acquisition of such traffic. Traffic acquisition costs are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K. Research and development expenses**

Research and development expenses consist of costs incurred in the process of developing improvements of software products and systems or new products and are charged to the consolidated statements of operations as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L. Income taxes**

The Company accounts for income taxes in accordance with ASC 740, "Income Taxes", and ("ASC 740"). ASC 740 prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and for carry forward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized.

Uncertain tax positions are accounted for in accordance with the provisions of ASC 740-10, under which a company may recognize the tax benefit from an uncertain tax position claimed or expected to be claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxation authorities, based on the technical merits of the position, at the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties, if any, related to unrecognized tax benefits, are recognized in tax expense.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**M. Contingencies**

The Company records accruals for loss contingencies arising from claims, litigation and other sources when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available. Legal costs incurred in connection with loss contingencies are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**N. Fair Value of Financial Instruments**

Fair value is defined as the price that would be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets.

● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**O. Debt Modification and Extinguishments**

The Company evaluates amendments to its debt in accordance with ASC 470-50 Debt–Modification and Extinguishments for modification and extinguishment accounting.

This evaluation includes comparing the net present value of cash flows of the new debt to the old debt to determine if changes greater than 10 percent occurred. In instances where the net present value of future cash flows changed more than 10 percent, the Company applies extinguishment accounting and determines the fair value of its debt based on factors available to the Company.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**P. Business Combinations**

The Company accounts for its business combinations in accordance with ASC 805, "Business Combinations" ("ASC 805"). ASC 805 specifies the accounting for business combinations and the criteria for recognizing and reporting intangible assets apart from goodwill. ASC 805 requires recognition of assets acquired, liabilities assumed and any non-controlling interest at the acquisition date, measured at their fair values as of that date.

Acquisition-related intangible assets result from the Company's acquisitions of businesses accounted for under the purchase method and consist of the fair value of identifiable intangible assets including customer relations, technology, as well as goodwill. Goodwill is the amount by which the acquisition cost exceeds the fair values of identifiable acquired net assets on the date of purchase. Acquisition-related definite lived intangible assets are reported at cost, net of accumulated amortization. For transactions between entities under common control see note 1.B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Q. Deconsolidation of a Subsidiary**

The Company accounts for the deconsolidation of a subsidiary by recognizing a net income attributable to the shareholders of the Company measured as the difference between: (a) the aggregate of all of the following: (1) the fair value of any consideration received and (2) the carrying amount of any non-controlling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the non-controlling interest) at the date the subsidiary is deconsolidated, and (b) the carrying amount of the former subsidiary's assets and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**R. Goodwill**

The Company's goodwill reflects the excess of the consideration paid or transferred including the fair value of contingent consideration over the fair values of the identifiable net assets acquired.

Goodwill is not amortized but instead is tested for impairment, in accordance with ASC 350, "Intangibles – Goodwill and Other" ("ASC 350"), at the reporting unit level, at least annually at December 31 each year, or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.

The goodwill impairment test is performed by evaluating an initial qualitative assessment of the likelihood of impairment. If this step indicates that the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed.

In the impairment test, the Company compares the fair value of the reporting unit to the carrying value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. If the fair value is less than the carrying value of the reporting unit, then the second step of the impairment test is performed to measure the amount of the impairment (see note 7.B).

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**S. Intangible assets, other than goodwill**

Intangible assets are identifiable non-monetary assets that have no physical substance. Intangible assets with indefinite useful lives are not amortized and are tested for impairment once a year, or whenever there is a sign indicating that impairment may have occurred, in accordance with ASC 350. An estimate of the useful life of intangible assets with an indefinite useful life is examined at the end of each reporting year. A change in the estimated useful life of an intangible asset that changes from indefinite-lived to finite-lived is treated prospectively.

Intangible assets with a finite useful life are amortized in a straight line over their estimated useful life subject to impairment testing. A change in the estimated useful life of an intangible asset with a finite useful life is treated prospectively.

The useful life used to amortize intangible assets with a finite useful life is at the following annual rates:

SCHEDULE OF AMORTIZE INTANGIBLE ASSETS

---

| | |
|:---|:---|
|  | **%** |
| Customer relations | 14.3-40.0 |
| Technology | 16.7-20.0 |
| Internal**-**use software | 33.3 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**T. Impairment of long-lived assets**

The Company's long-lived assets to be held or used, including property and equipment, right of use assets and intangible assets subject to amortization are reviewed for impairment in accordance with ASC 360, "Property, Plants and Equipment" ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**U. Derivative Financial Instruments**

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, "Derivatives and Hedging". Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. Equity Investments**

The Company measures equity investments at fair value with changes in fair value recognized in net income. The Company accounts for equity investments that do not have a readily determinable fair value as cost method investments under the measurement alternative to the extent such investments are not subject to consolidation or the equity method. Under the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly for triggering events), adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**W. Share-based compensation**

The Company accounts for share-based compensation in accordance with ASC 718, "Stock Compensation" ("ASC 718"), which requires companies to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods, which is generally the vesting period, in the Company's consolidated statement of operations.

The Company selected the Black-Scholes option pricing model as the most appropriate fair value method for its share options awards. The option-pricing model requires several assumptions, of which the most significant are the expected share price volatility and the expected option term. The Company recognizes share-based compensation cost for option awards on an accelerated basis over the employee's requisite service period and accounts for forfeitures as they occur.

The Company recognized share-based compensation expenses of restricted stock units based on the grant-date fair values. The compensation expenses are recognized using the graded vesting attribution method based on the vesting terms of each unit included in the award resulting in an accelerated recognition of compensation costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X. Warrants**

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and in accordance with ASC 480, "Distinguishing Liabilities from Equity" ("ASC 480"), and ASC 815, "Derivatives and Hedging" ("ASC 815"). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued warrants that meet all of the criteria for equity classification, the warrants are recorded as a component of additional paid-in capital at the time of issuance. For issued warrants that do not meet all the criteria for equity classification, the warrants are classified as liability and are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Y. Net loss per share**

In accordance with ASC 260, "Earnings Per Share" ("ASC 260"), basic net earnings per share is computed by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net earnings per share reflects the potential dilution that could occur if share options, warrants or other commitments to issue ordinary shares were exercised or equity awards vested, resulting in the issuance of ordinary shares that could share in the net earnings of the Company.

For periods in which the Company has generated a net loss, the Company's basic net loss per share is the same as diluted net loss per share, as the effects of common stock equivalents outstanding and shares issuable upon exercise of share options or warrants are antidilutive and therefore excluded from the calculation of diluted net income (loss) per share.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Z. Segment reporting**

The Company reports financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria as defined in ASC 280, "Segments Reporting".

Operating segments are distinguishable components of an entity for each of which a separate financial information is available and is reported in a manner consistent with the internal reporting provided to the entity's Chief Operating Decision Maker ("CODM") in making decisions about how to allocate resources and in assessing performance. The review of the CODM is carried out according to the results of the segment's activity.

**AA. Discontinued Operations**

The Company classifies as discontinued operations a component of an entity or group of components that has been disposed of by sale, disposed of other than by sale or is classified as held for sale and will have a major effect on the Company's operations and financial results (see note 3).

**AB. Recent accounting pronouncements**

*ASU 2023-07, Segment Reporting (Topic 280)*

In November 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-07, "Improvements to Reportable Segment Disclosures,". The ASU's effective date is for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of the ASU 2023-07 will enhance expense disclosures in segment reporting and other qualitative disclosures and allows for disclosing multiple measures of segment profit or loss (see also note 19).

*ASU 2023-09, Income Taxes (Topic 740)*

December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – "Improvements to Income Tax Disclosures". The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this ASU are required to be adopted starting January 1, 2025. Early adoption is permitted, and the amendments should be applied on a prospective basis. There is no material impact from the adoption of this standard on the Company's financial statements.

*ASU 2024-04, "Debt-Debt with Conversion and Other Options (Subtopic 470-20)*

In November 2024, the FASB issued ASU 2024-04, "Debt-Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments". The amendments in this Update affect entities that settle convertible debt instruments for which the conversion privileges were changed to induce conversion. This ASU is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. There is no material impact from the adoption of this standard on the Company's financial statements.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

**AB. Recent accounting pronouncements (Cont.)**

The following are accounting pronouncements that are not yet effective for the Company:

*ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)*

In November 2024, the FASB issued ASU 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses".

The amendments in this Update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments require that at each interim and annual reporting period an entity: 1. Disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (DD&A) (or other amounts of depletion expense) included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the expense categories listed in (a)–(e). 2. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements. 3. Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. 4. Disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. An entity is not precluded from providing additional voluntary disclosures that may provide investors with additional decision-useful information. This ASU is effective for Fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is in the process of evaluating the potential impacts on its consolidated financial statements that could derive from the adoption of this standard.

*ASU 2025-11, Interim Reporting (Topic 270)*

 

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"), to amend the guidance in "Interim Reporting" (Topic 270). The update provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. The guidance is effective for annual and interim periods beginning January 1, 2028. The Company is currently evaluating the impact the adoption of ASU 2025-11 will have on its consolidated financial statements and related disclosures.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 3: DISCONTINUED OPERATIONS**

On November 9, 2025, Gix Media sold all of its holdings in Cortex (see note 8.B), following which the Group ceased its operations in the digital content segment activity. The Company has determined that the sale of Cortex has a major effect on the Company's operations and financial results. In this respect, the results of operations and cash flows of the digital content segment, as well as its assets and liabilities, are reported as discontinued operations. The comparative figures in these consolidated financial statements have been adjusted on the basis of presenting separately the discontinued operations' figures.

The components of assets and liabilities of discontinued operations in the consolidated balance sheet at December 31, 2024 consisted of the following:

---

| | |
|:---|:---|
|  | **As of**<br> **December 31**<br>**2024** |
| **CURRENT ASSETS** |  |
| Cash and cash equivalents | 600 |
| Restricted deposits | 28 |
| Accounts receivable | 1275 |
| Other current assets | 482 |
| **Total current assets of discontinued operations** | 2385 |
| **NON-CURRENT ASSETS** |  |
| Property and equipment, net | 10 |
| Intangible assets, net | 7666 |
| Goodwill | 3496 |
| **Total non-current assets of discontinued operations** | 11172 |
| **CURRENT LIABILITIES** |  |
| Accounts payable | 3493 |
| Short-term loan (a) | 830 |
| Other payables | 215 |
| **Total current liabilities of discontinued operations** | 4538 |
| **NON-CURRENT ASSETS** |  |
| Deferred taxes | 812 |
| **Total non-current liabilities of discontinued operations** | 812 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Includes a renewable monthly credit line, determined each month at 80% of Cortex's customers'
balance, and bears annual interest at a rate of SOFR + 4.35%. As of December 31, 2024, Cortex has drawn $830 under this credit line.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 3: DISCONTINUED OPERATIONS (Cont.)**

The components of the loss from discontinued operations for the year ended December 31, 2024 and for the period ended November 9, 2025, in the consolidated statements of income consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **For the period ended <br> November 9, 2025** | **Year ended<br> December 31, 2024** |
| **Revenues** | 8406 | 21972 |
| **Costs and Expenses:** |  |  |
| Traffic-acquisition and related costs | 7863 | 20257 |
| Research and development | 358 | 1049 |
| Selling and marketing | 565 | 1332 |
| General and administrative | 274 | 415 |
| Depreciation and amortization | 1874 | 2199 |
| Impairment of intangible assets and goodwill (b) | 5525 | 7675 |
| Other income, net | (174) | (237) |
| **Operating loss** | (7879) | (10718) |
| Financial expense, net | 24 | 154 |
| **Loss from discontinued operations before taxes** | (7903) | (10872) |
| Income tax benefit | 486 | 344 |
| **Net loss from discontinued operations** | (7417) | (10528) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On September 30, 2025, the Company identified indicators of impairment of the digital
content reporting unit. As a result, the Company performed an impairment test which included a quantitative analysis of the fair value
of the reporting unit. The estimation of the fair value was based on indications of the consideration payable, as of September 30, 2025,
in connection with the sale of Cortex (see note 8.B), whose operations are attributable to the digital content reporting unit. The Company
determined that the fair value of the reporting unit was less than its carrying amount and recognized an impairment loss of $5,525 for
the period ended November 9, 2025. As of December 31, 2024, the Company recognized impairment losses related to the digital content reporting
unit of $7,675

**NOTE 4: OTHER CURRENT ASSETS**

**Composition:**

SCHEDULE OF OTHER CURRENT ASSETS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Prepaid expenses |  | 172 |  | 1 |
| Government authorities |  | 92 |  | 136 |
| Deferred debt issuance costs |  | 6 |  | 638 |
| Other receivables | | 29 | | - |
|  | | 299 | | 775 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 5: PROPERTY AND EQUIPMENT, NET**

**Composition:**

SCHEDULE OF PROPERTY AND EQUIPMENT, NET

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| Cost: |  |  |
| Computer programs and equipment | 679 | 354 |
| Office furniture and equipment | 1 | 1 |
| Total cost | 680 | 355 |
| Less: accumulated depreciation | (624) | (338) |
| Property and equipment, net | 56 | 17 |

---

Depreciation expenses totaled $67 and $115 for the years ended December 31, 2025, and 2024, respectively.

**NOTE 6: LEASES**

On February 25, 2021, Gix Media entered into a lease agreement for a new corporate office of 479 square meters in Ramat Gan, Israel, at a monthly rent fee of $10. The lease period was for 36 months (the "Initial Lease Period") with an option by the Company to extend the lease period for two additional terms of 24 months each. In accordance with the lease agreement, the Company made leasehold improvements in exchange for a rent fee discount of $67 which will be spread over the Initial Lease Period.

The Company included renewal options that it was reasonably certain to exercise in the measurement of the lease liabilities. In December 2023, the Company exercised the option to extend the lease period for an additional term of 24 months (from March 1, 2024, to February 28, 2026).

On June 20, 2024, Gix Media and the lessor of its offices entered into a lease termination agreement. According to the agreement, the lease, which originally had a termination date of February 28, 2026, terminated on June 30, 2024. In compensation for the lessor's consent to an early termination, Gix Media paid the lessor $7 in cash and $62 in office furniture and equipment, as per the carrying values of such assets on the Company's books as of the early termination date.

As a result of the early termination of the agreement, the Company recorded a capital loss of $46 in other expenses, net in its statement of operations for the year ended December 31, 2024.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Composition:**

SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Internal-use Software** | **Customer Relations** | **Technology** | **Goodwill** | **Total** |
| **Cost:** |  |  |  |  |  |
| **Balance as of January 1, 2025** | 465 | 870 | 2523 | 1083 | 4941 |
| Consolidation of Metagramm (note 8.C) | - | 390 | 550 | 5309 | 6249 |
| Balance as of December 31, 2025 | 465 | 1260 | 3073 | 6392 | 11190 |
| **Accumulated amortization:** |  |  |  |  |  |
| Balance as of January 1, 2025 | 429 | 351 | 1192 |  | 1972 |
| Amortization recognized during the period | 36 | 241 | 504 | - | 781 |
| Balance as of December 31, 2025 | 465 | 592 | 1696 | - | 2753 |
| **Amortized cost:** |  |  |  |  |  |
| **As of December 31, 2025** | - | 668 | 1377 | 6392 | 8437 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Internal-use Software** | **Customer Relations** | **Technology** | **Goodwill** | **Total** |
| **Cost:** |  |  |  |  |  |
| **Balance as of January 1, 2024** | 465 | 870 | 2523 | 1083 | 4941 |
| Additions | - | - | - | - | - |
| Balance as of December 31, 2024 | 465 | 870 | 2523 | 1083 | 4941 |
| **Accumulated amortization:** |  |  |  |  |  |
| Balance as of January 1, 2024 | 276 | 227 | 771 |  | 1274 |
| Amortization recognized during the year | 153 | 124 | 421 | - | 698 |
| Balance as of December 31, 2024 | 429 | 351 | 1192 | - | 1972 |
| **Amortized cost:** |  |  |  |  |  |
| **As of December 31, 2024** | 36 | 519 | 1331 | 1083 | 2969 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Impairment of intangible assets and goodwill:**

As of December 31, 2025, the Company performed a quantitative impairment test of the search reporting unit. The Company did not recognize impairment losses regarding this reporting unit for the years ended December 31, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Estimated annual amortization expense for each of the next five years is as follows:**

SCHEDULE OF ESTIMATED ANNUAL AMORTIZATION EXPENSE

---

| | |
|:---|:---|
| 2026 | 811 |
| 2027 | 772 |
| 2028 | 302 |
| 2029 | 133 |
| 2030 | 27 |

---

**NOTE 8: BUSINESS COMBINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Cortex Acquisition**

On October 13, 2021, Gix Media acquired 70% (on a fully diluted basis) of the shares of Cortex (the "Cortex Transaction"), a private company operating in the field of online media and advertising. In consideration for the Cortex Transaction, Gix Media paid NIS 35 million in cash (approximately $11 million). The Cortex Transaction was financed by Gix Media's existing cash balances and substantially by debt through a bank financing in the aggregate amount of $9.5 million, that consists of a line of credit of up to $3.5 million and a long-term loan of $6 million (see note 11.B).

On January 23, 2023, Gix Media acquired an additional 10% of Cortex, increasing its holdings to 80% of the share capital of Cortex in consideration for $2.6 million (the "Subsequent Purchase"). The Subsequent Purchase was financed by Gix Media's existing cash balances and by a long-term bank loan received on January 17, 2023, in the amount of $1.5 million (see note 11.B).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Cortex Sale**

On November 9, 2025 (the "Cortex Closing Date"), Gix Media, Cortex, and certain founders of Cortex entered into a share purchase agreement (the "Cortex Sale Agreement") with Pro Sportority (Israel) Ltd. (the "Purchaser"), a subsidiary of Minute Media Inc. (the "Parent"). Pursuant to the Cortex Sale Agreement, the Purchaser acquired from Gix Media all of its holdings in Cortex, representing 80% of Cortex's issued and outstanding share capital.

The aggregate consideration paid to Gix Media was $800, consisting of (i) $200 in cash, and (ii) $600 in the form of 5,161 newly issued Preferred J Shares of the Parent (the "Parent Shares"), the most senior class of preferred shares of the Parent.

The Parent retains a call option to repurchase the Parent Shares from Gix Media under certain conditions, including insolvency or a change of control of Gix Media. In addition, Gix Media is subject to a two-year non-compete and non-solicitation covenant following the Cortex Closing Date.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 8: BUSINESS COMBINATION (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Metagramm Acquisition:**

On July 31, 2024, the Company entered into a securities exchange agreement with Metagramm pursuant to which the Company agreed to issue to Metagramm 9.99% of its issued and outstanding share capital in exchange for 19.99% of Metagramm's issued and outstanding share capital (the "2024 SEA").

On March 24, 2025 (the "Closing Date"), the Company entered into a new securities exchange agreement with Metagramm and all of the shareholders of Metagramm which replaced and terminated the 2024 SEA (the "2025 SEA"). Pursuant to the 2025 SEA, the Company acquired 100% of Metagramm's shares in exchange for consideration of $5,159. The consideration was paid to Metagramm's shareholders in the form of 1,323,000 shares of common stock of the Company, representing 19.99% of the Company's issued and outstanding share capital immediately following the acquisition (the "Metagramm Acquisition").

In addition, the Company agreed to pay Metagramm's shareholders cash earn-out payments on a pro rata basis of up to a cumulative sum of $2.0 million, contingent on achieving certain financing and revenue milestones within 3 years following the Closing Date (see note 15.C).

**Fair Value of Metagramm's Identifiable Assets and Liabilities:**

SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES

---

| | |
|:---|:---|
| Cash and cash equivalents | 12 |
| Other current assets | 18 |
| Property and equipment | 106 |
| Goodwill arising from the acquisition | 5309 |
| Technology, net of deferred taxes | 424 |
| Customer Relations, net of deferred taxes | 300 |
| **Total cost of the acquisition** | 6169 |
| Earn-out liability arising from the acquisition | 1010 |
| **Total liabilities** | 1010 |
| **Consideration paid in Company's shares** | 5159 |

---

The total consideration has been allocated between assets acquired and liabilities assumed based on estimated fair values, with the residual of the total consideration recorded as goodwill.

The goodwill that arose from the acquisition consists of synergies expected from the activities of the Company and Metagramm. The estimation of the fair value of these intangible assets was determined using the income approach, which is based on the present value of the future cash flows attributable to each identifiable intangible asset. The estimation of the fair value of the earn-out liability was calculated based on Monte Carlo method.

Other current assets were estimated to have fair values that approximate their carrying values due to the short-term maturities of these instruments.

The estimated useful lives for the acquired technology and customer relations of Metagramm Acquisition are 5 years and 2.5 years, respectively. The goodwill will not be deductible for income tax purposes.

**NOTE 9: ACCOUNTS PAYABLE**

SCHEDULE OF ACCOUNTS PAYABLE

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Trade payables |  | 762 |  | 1566 |
| Accrued expenses | | 442 | | 876 |
|  | | 1,204 | | 2,442 |

---

**NOTE 10: OTHER PAYABLES**

SCHEDULE OF OTHER ACCOUNTS PAYABLE

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Government authorities |  | 355 |  | 284 |
| Employees and payroll accruals |  | 124 |  | 170 |
| Accrued interest |  | 65 |  | 42 |
| Other payables | | 407 | | 101 |
|  | | 951 | | 597 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 11: LOANS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Composition of long-term loans, short-term loans, and credit lines of the Group:**

The following is the composition of the balance of the Group's loans according to their nominal value:

SCHEDULE OF COMPOSITION OF BALANCE OF GROUP'S LOANS

---

| | | | |
|:---|:---|:---|:---|
|  | **Interest rate** | **As of**<br> **December 31, 2025** | **As of**<br> **December 31, 2024** |
| Short-term bank loans – Gix Media | SOFR + 4.60% | 260 | 1138 |
| Long-term bank loan, including current maturity – Gix Media (received on October 13, 2021) | SOFR + 4.12% |  | 2564 |
| Long-term bank loan, including current maturity – Gix Media (received on January 17, 2023) | SOFR + 5.37% |  | 996 |
| Long-term bank loan, including current maturity – Gix Media (received on July 10, 2025) | SOFR + 4.92% | 1367 |  |
| Short-term loan – June 2024 Facility Agreement – Viewbix Inc | 12% |  | 342 |
| Short-term convertible loan – June 2024 Facility Agreement – Viewbix Inc | 12% | 867 | 649 |
| Short-term convertible loan – First July 2024 Facility Agreement – Viewbix Inc | 12% |  | 50 |
| Short-term convertible loan – Second July 2024 Facility Agreement – Viewbix Inc | 12% | - | 80 |
|  |  | 2494 | 5819 |

---

**Maturities of the Group's loans as of December 31, 2025, are as follows:**

SCHEDULE OF MATURITIES OF DEBT

---

| | | |
|:---|:---|:---|
| 2026 | 1908 | (\*) |
| 2027 | 586 |  |
| Total | 2494 |  |

---

---

| | |
|:---|:---|
| (\*) | Includes renewable monthly credit lines of $260 and convertible loans of $867. |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Gix Media's Loan Agreement and short-term loans:**

In connection with the Cortex Transaction (see note 8.A), on October 13, 2021, Gix Media entered into a financing agreement with Bank Leumi Le Israel Ltd ("Leumi"), an Israeli bank, for the provision of a line of credit in the total amount of up to $3,500 and a long-term loan totaling $6,000, which Gix Media used to finance the Cortex Transaction (the "Financing Agreement").

The Financing Agreement included the following main terms:

1) A loan of $6,000 to be provided to Gix Media which will be repaid in 48 monthly payments at an annual interest rate of LIBOR + 4.12%.

2) A renewable monthly line of credit, of up to $3,500 to be provided to Gix Media, which will be available for utilization for a period of two years and will be determined on a monthly basis, at 80% of Gix Media's accounts receivable balance ("Gix Media Credit Line"). The amounts that will be withdrawn from the Gix Media Credit Line will bear annual interest of LIBOR + 3.2%.

3) Gix Media undertook to meet financial covenants over the life of the loans as follows: the ratio of debt to EBITDA, based on the Gix Media's consolidated financial statements in all 4 consecutive quarters, will not exceed 2.4 in the first two years and will not exceed 1.75 in the following two years. As of December 31, 2023, Gix Media didn't meet the financial covenants in connection with the Financing Agreement, however, Gix Media has received a waiver by Leumi to be effected until April 16, 2024, according to which, Leumi agreed to delay its right for immediate repayment of the loans. Accordingly, the Company did not reclassify long-term loans, net of current maturities item in the balance sheet as a current liability.

4) As part of the Financing Agreement, Gix Media and the Company provided several liens in favor of Leumi (see note 14).

On July 25, 2022, Gix Media and Leumi entered into an addendum to the Financing Agreement, according to which, Leumi will provide Gix Media with a loan of $1,500, to be withdrawn at the discretion of Gix Media no later than January 31, 2023 (the "Additional Loan").

On January 23, 2023, Gix Media acquired an additional 10% of Cortex's capital shares (see note 8.A) which was financed by Gix Media's existing cash balances and by the Additional Loan received on January 17, 2023, in the amount of $1,500 to be repaid in 42 monthly payments at an annual interest rate of SOFR + 5.37%.

On October 10, 2023, Gix Media and Leumi entered into a second addendum to the Financing Agreement, according to which, Leumi extended the Gix Media Credit Line by one year, until October 13, 2024. The amounts that are drawn from the Gix Media Credit Line bear an annual interest of SOFR + 4.05%. In addition, according to the second addendum the 2.4 ratio of debt to EBITDA was extended by nine months to June 30, 2024.

On June 13, 2024, Gix Media and Leumi entered into a third addendum to the Financing Agreement between the parties which was effective from May 15, 2024, pursuant to which, inter alia: (i) the addendum will be effective until August 31, 2024; (ii) the Company is obligated to transfer to Gix Media $600; (iii) a new covenant which replaced the previous financial covenant, measured by reference to positive EBTIDA was implemented; (iv) all payments due to Leumi Long-term bank loan were deferred to August 31, 2024 and from September 1, 2024, payments will be repaid as schedule until the end of the Long-term bank loan; (v) a new loan of $350 was granted to Gix Media on June 13, 2024, to be repaid until August 30, 2024, alongside the Gix Media Credit Line; (vi) Gix Media is obligated to perform a reduction in expenses, including reduction in human capital.

As of December 31, 2024 and 2025, Gix Media met the new covenant in connection with the Financing Agreement.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Gix Media's Loan Agreement and short-term loans (Cont.):**

Effective as of August 30, 2024, Gix Media and Leumi entered into a fourth addendum to the Financing Agreement, pursuant to which, inter alia: (i) subject to the receipt of at least $2,000 from the Company by no later than January 1, 2025, the Gix Media Credit Line will be extended until February 27, 2025 and (ii) the repayment of the outstanding principal amounts of the long-term bank loans of Gix Media under the Financing Agreement and an additional short-term loan in the amount of $160, will be deferred until December 31, 2024 and from January 1, 2025, all due payments will be repaid as schedule until the end of the term of the long term bank loans.

On September 16, 2024, Gix Media repaid an aggregate amount of $350, consisting of the short-term bank loan in the amount of $160 and principal amounts of the long-term bank loans totaling $190. On the same date, Gix Media received a new short-term bank loan of $350 which replaced the repaid amounts. The new loan bore an annual interest rate of SOFR + 4.60% and is was repaid in one single payment on January 2, 2025.

On September 19, 2024, Gix Media received a short-term loan of $75. The loan bore an annual interest rate of SOFR + 4.60% and was repaid in monthly installments of $25 over a 3-month period from October to December 2024.

As of December 31, 2024, Gix Media has drawn $788 of the Gix Media Credit Line.

On February 4, 2025, Gix Media and Leumi entered into a fifth addendum to the Financing Agreement, which was effective as of January 29, 2025, according to which, inter alia: (i) the Gix Media Credit Line was extended to March 31, 2025; (ii) the repayment the outstanding principal amounts of the long term bank loans of Gix Media under the Financing Agreement, was deferred until the actual deposit by the Company in Gix Media's account of an investment account equal to the amounts of the deferred long term bank loans owned by Gix Media (the "Investment Amount"), which in any event shall be no later than March 31, 2025 (the "Deposit Date"); (iii) upon such Deposit Date, all deferred payments will be immediately repaid using the deposited amounts and any remaining amounts from any other sources; (iv) all remaining future due payments will be repaid as scheduled until the end of the updated terms of each long term bank loan.

On March 30, 2025, Gix Media and Leumi entered into a sixth additional addendum to the Financing Agreement, which extended the Deposit Date until May 20, 2025.

On June 18, 2025, Gix Media received a short-term loan of $1,722, bearing an annual interest rate of SOFR + 4.65%, which was repaid in a single payment on July 3, 2025.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Gix Media's Loan Agreement and short-term loans (Cont.):**

On July 3, 2025, Gix Media received a short-term loan of $1,948, bearing an annual interest rate of SOFR + 4.65%, which was repaid in a single payment on August 4, 2025.

On July 8, 2025, Gix Media and Leumi entered into an agreement in respect of the Financing Agreement, (the "July 2025 Repayment and Financing Agreement") according to which, inter alia: (i) the Deposit Date will be extended until October 1, 2025 (ii) Gix Media agreed to repay $2.4 million to Leumi by October 1, 2025, and (iii) subject to the full repayment of the $2.4 million, Leumi would provide a new loan equal to the then outstanding balance of the debt. The loan will be repaid in up to 24 monthly payments at an annual interest rate of Leumi's applicable rate at the time of the granting of the loan.

In July 2025, Gix Media repaid a total of $2.4 million to Leumi in accordance with the July 2025 Repayment and Financing Agreement. As a result, the outstanding balance of the existing short-term loan of $1,948 and the long-term loans under the Financing Agreement were extinguished on July 10, 2025. On the same date, Gix Media received a new loan in the amount of $1,562 to be repaid in 24 consecutive monthly payments beginning in October 2025, at an annual interest rate of SOFR + 4.92%.

As of December 31, 2025, Gix Media has drawn $260 of the Gix Media Credit Line.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Long term loan and issuance of warrants:**

On November 15, 2023, Viewbix Israel entered into a loan agreement with certain lenders, pursuant to which Viewbix Israel received aggregate loans of $480 (the "2023 Loan"). In connection with the 2023 Loan, the Company issued to each lender a warrant to purchase shares of common stock (the "2023 Warrants"). The 2023 Warrants are exercisable to 120,000 shares of common stock, at an exercise price of $2.00 per share and will expire on December 31, 2025. The Company recorded the 2023 Warrants as an equity instrument.

The terms of the 2023 Loan were substantially amended on June 18, 2024, by the June 2024 Facility Agreement (see note 11.D). These amendments represented a substantial modification in accordance with ASC Topic 470. Accordingly, the terms modification was accounted for as an extinguishment of the original financial liability and the initial recognition of new financial instruments issued at their fair value as of the effective date of the June 2024 Facility Agreement. As a result of the substantial modification of terms, the Company recognized finance expense of $1,914 during the year ended December 31, 2024.

As of December 31, 2025, all remaining 2023 Warrants were expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. June 2024 Facility Agreement:**

On June 18, 2024, the Company entered into a credit facility agreement with a group of lenders including a lead lender (the "June 2024 Lead Lender", and collectively, the "June 2024 Lenders") for an amount of up to $1.0 million which was amended and restated on July 22, 2024 (the "June 2024 Facility Agreement"). The June 2024 Facility Agreement also includes $531 of outstanding debt owed by the Company to the lenders of the 2023 Loan (see note 11.C), such that the total amount of the credit line reached $1.53 million (the "Total Credit Facility Amount"). The Total Credit Facility Amount will be due for repayment following 12 months from the date of the June 2024 Facility Agreement (the "Initial Maturity Date") or alternatively, in the event the completion of the Uplist (as defined in note 1.G) prior to the Initial Maturity Date, then the Total Credit Facility Amount will be due for repayment following 12 months from the Uplist Date. The Total Credit Facility Amount will be available for use as follows: (a) $350 upon the date of the June 2024 Facility Agreement, (b) $150 upon submitting a prospectus for the registration of shares to be issued to the June 2024 Lenders, and (c) $500 upon the completion of the Uplist.

The Total Credit Facility Amount will accrue interest at a rate of 12% per annum, to be paid in advance.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. June 2024 Facility Agreement (Cont.):**

The interest for the first year of the June 2024 Facility Agreement, which was equal to $184, was paid by the Company in advance in: (a) 183,679 shares of the Company's common stock, reflecting a value of $1.00 per share for each dollar of interest accrued on the Total Credit Facility Amount, and (b) 183,679 warrants to purchase 183,679 shares of the Company's common stock at an exercise price of $1.00 per share. The warrants will be exercisable for a 3three-year period from the date of the June 2024 Facility Agreement.

Immediately following the effectiveness of the Uplist, $663 of the Total Credit Facility Amount will be automatically converted into units, which will include shares of common stock at a conversion rate of $1.00 per share, equal to an aggregate of 662,957 shares of common stock and the same amount of warrants to purchase common stock of the Company with an exercise price of $1.00 per share. The warrants will be exercisable for a three-year period from the Uplist Date.

During the term of the June 2024 Facility Agreement, some of the June 2024 Lenders whose portion of the Total Credit Facility Amount is not automatically converted as part of the Uplist will have the right to convert their portion of the Total Credit Facility Amount within 12 months from the Uplist Date into units, which will include shares of common stock of the Company at a conversion rate of $1.00 per share, equal to an aggregate of up to 362,004 shares of common stock and the same amount of warrants to purchase common stock of the Company with an exercise price of $1.00 per share. The warrants will be exercisable for a three-year period from the issuance date.

In addition, the Company paid to the June 2024 Lead Lender a commission consisting of: (a) 50,000 shares of common stock of the Company, (b) 50,000 warrants to purchase 50,000 shares of common stock of the Company at an exercise price of $1.00 per share (c) 625,000 warrants for the purchase of 625,000 shares of common stock with an exercise price of $4.00 per share ("June 2024 Lead Lender Fee Warrants"). The June 2024 Lead Lender Fee Warrants are exercisable for a three-year period from the date of the June 2024 Facility Agreement.

The June 2024 Lead Lender Fee Warrants, which were exercisable immediately after the closing of the June 2024 Facility Agreement, were allocated subject to certain ownership restrictions, adjustments, and anti-dilution protections.

In July 2024, following the closing of the 2024 Private Placement (as defined in note 15.B), the exercise price of the June 2024 Lead Lender Fee Warrants was adjusted to $0.472, which is equal to the effective price per share of common stock in the 2024 Private Placement, and the number of shares of common stock issuable upon the exercise of the June 2024 Lead Lender Fee Warrants was also adjusted to a total of 5,296,610 shares, such that the adjusted exercise price and number of warrants issued is equal to an aggregate amount of $2.5 million.

The conversion related features of the June 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date. Loans received in connection with the June 2024 Facility Agreement were initially recorded at their fair value and subsequently measured at cost. The shares and warrants issued as prepayment of interest and as commission to the June 2024 Lead Lender were initially recognized at fair value and classified in equity.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. June 2024 Facility Agreement (Cont.):**

In connection with the June 2024 Facility Agreement, the Company incurred deferred debt issuance costs of $60, consisting of an annual advance interest payment. The deferred debt issuance costs were recorded in other current assets in the Company's balance sheet and are amortized as financial expense over the term of the June 2024 Facility Agreement. Deferred debt issuance costs amounted to $21 and $6 as of December 31, 2025 and 2024, respectively.

The June 2024 Lead Lender Fee Warrants were initially recognized in fair value at the amount of $1,833 and classified as a liability measured at fair value at each balance sheet date. Following the closing of the 2024 Private Placement (see note 15.B) and the adjustments made to the number of shares in the June 2024 Lead Lender Fee Warrants as part of the June 2024 Facility Agreement, the June 2024 Lead Lender Fee Warrants were reclassified to equity.

On June 5, 2025, upon completion of the Uplist, the Company drew additional $500 of the Total Credit Facility Amount (the "Additional Amount"). The Additional Amount was provided by the June 2024 Lead Lender, which has the right to convert the Additional Amount within 12 months from the Uplist Date into units, which will include shares of common stock of the Company at a conversion rate of $1.00 per share, equal to an aggregate of up to 500,000 shares of common stock and the same amount of warrants to purchase shares of common stock of the Company with an exercise price of $1.00 per share. The warrants will be exercisable for a three-year period from the issuance date. The Additional Amount was recorded as a short-term convertible loan.

In addition, immediately following the Uplist, $663 of the Total Credit Facility Amount was converted into units, which included 662,957 shares of common stock and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity.

During June and July 2025, out of 896,636 warrants granted under the June 2024 Facility Agreement, 722,495 warrants were exercised into 722,495 shares of common stock. The Company received total proceeds of $722 upon exercise of the warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. First July 2024 Facility Agreement**

On July 4, 2024, the Company entered into a credit line agreement with a certain lender (the "First July 2024 Facility Agreement"). Under the First July 2024 Facility Agreement and amendments from July 22, 2024, and July 25, 2024, the lender will provide a total credit line of $2.5 million (the "First July 2024 Facility Loan Amount"), which will be available for use as follows: (a) $50 upon the date of the First July 2024 Facility Agreement, (b) $50 upon the Uplist, and (c) after the Uplist, $200 will be available for use on a quarterly basis until the total amount reaches $2.5 million.

The First July 2024 Facility Agreement will remain available until the earliest of: (a)(1) full utilization of the First July 2024 Facility Loan Amount, (a)(2) after 36 months from the date of the First July 2024 Facility Agreement, and (b) upon such date that the Company completes a $2.0 million financing transaction (the "First July 2024 Facility Term"). In the event the First July 2024 Facility Term lapses, the First July 2024 Facility Loan Amount will be repaid to the lender immediately (see note 15.C).

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. First July 2024 Facility Agreement (Cont.)**

The First July 2024 Facility Agreement Amount will accrue interest at a rate of 12% per annum. The interest for the first year was paid in advance in: (a) 300,000 shares of the Company's common stock at a conversion rate of $1.00 for each dollar of interest accrued on the total amount, and (b) 300,000 warrants to purchase 300,000 shares of the Company's common stock an exercise price of $1.00 per share. The warrants are exercisable upon issuance at an exercise price of $1.00 per share of common stock and will be exercisable for a three-year3 period from the date of the First July 2024 Facility Agreement.

Immediately after the Uplist, $100 from the First July 2024 Facility Loan Amount will be automatically converted into common stock of the Company at an exercise price of $1.00 per share. Additionally, the Company will issue an identical number of warrants to purchase common stock of the Company at an exercise price of $1.00 per share.

Furthermore, the Company paid the lender of the First July 2024 Facility Agreement a one-time fee consisting of: (a) 125,000 shares of common stock of the Company, which representing a fee of five percent (5%) of the First July 2024 Facility Loan Amount, at a share price of $1.00 per share, and (b) 250,000 warrants to purchase 250,000 shares of common stock of the Company at an exercise price of $1.00 per share. The warrants are exercisable for three years3 from the date of the First July 2024 Facility Agreement.

The conversion related features of the First July 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date.

In connection with the First July 2024 Facility Agreement, the Company incurred deferred debt issuance costs of $375, which consisted of a one-time fee to the lender of the First July 2024 Facility Agreement, an annual advance interest payment and other additional direct costs. The deferred debt issuance costs were recorded in other current assets in the Company's balance sheet and were amortized as financial expense over the term of the First July 2024 Facility Agreement. Deferred debt issuance costs amounted to $315 as of December 31, 2024, and were fully amortized during year ended December 31, 2025, following the termination of the First July 2024 Facility Agreement (see note 15.C).

Under the terms of the First July 2024 Facility Agreement, the Company received in July 2024 a loan of $50 which was recorded as a short-term convertible loan. The fair value of this loan was substantially the same as the amount received. Warrants associated with the First July 2024 Facility Agreement were measured at fair value and recorded as equity.

On the Uplist Date, the Company drew additional $50 of the First July 2024 Facility Loan Amount. In addition, immediately following the Uplist Date, $100 of the First July 2024 Facility Loan Amount was converted into units, which included 100,000 shares of common stock and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity.

During June 2025, all 650,000 warrants granted under the First July 2024 Facility Agreement were exercised into 650,000 shares of common stock. The Company received total proceeds of $650 upon exercise of the warrants.

On July 14, 2025, following the closing of the July 2025 Private Placement and the proceeds received by the Company (see note 15.C), the First July 2024 Facility Agreement was terminated.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Second July 2024 Facility Agreement**

On July 28, 2024, the Company entered into a credit line agreement with certain lenders (the "Second July 2024 Facility Agreement") for a total amount of $3.0 million (the "Second July 2024 Facility Loan Amount").

The Second July 2024 Facility Loan Amount will remain available until the earliest of: (a) (1) full utilization of the Second July 2024 Facility Loan Amount, (a)(2) after 40 months from the date of Second July 2024 Facility Agreement, and (b) upon such date that the Company completes a $2.5 million financing transaction.

The Second July 2024 Facility Loan Amount will accrue interest at a rate of 12% per annum. The interest for the first year was paid in advance in: (a) 360,000 shares of the Company's common stock, reflecting a share price of $1.00 per share for each dollar of interest accrued on the total amount, and (b) 360,000 warrants to purchase 360,000 shares of common stock of the Company at an exercise price of $1.00 per share. The warrants are exercisable for three years from the date of the Second July 2024 Facility Agreement. Starting from the second year of the Second July 2024 Facility Agreement, the interest will be paid in cash to the lenders.

Immediately after the Uplist, $160 out of the Second July 2024 Facility Loan Amount will be automatically converted into common stock of the Company at an exercise price of $1.00 per share. Additionally, the Company will issue an identical number of warrants to purchase common stock of the Company at an exercise price of $1.00 per share.

Furthermore, the Company paid the lenders of the Second July 2024 Facility Agreement a one-time fee consisting of 150,000 shares of common stock of the Company, which represents a fee of five percent (5%) of the Second July 2024 Facility Loan Amount at a share price of $1.00 per share.

The conversion related features of the Second July 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date.

In connection with the Second July 2024 Facility Agreement, the Company incurred deferred debt issuance costs of $355, which consisted of a one-time fee to the lenders of the Second July 2024 Facility Agreement, an annual advance interest payment and other additional direct costs. The deferred debt issuance costs were recorded in other current assets in the Company's balance sheet and were amortized as financial expense over the term of the Second July 2024 Facility Agreement. Deferred debt issuance costs amounted to $302 as of December 31, 2024, and were fully amortized during the year ended December 31, 2025, following the termination of the Second July 2024 Facility Agreement (see note 15.C).

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Second July 2024 Facility Agreement (Cont.)**

Under the terms of the Second July 2024 Facility Agreement, the Company received in July 2024 a loan of $80 which was recorded as a short-term convertible loan. The fair value of this loan was substantially the same as the amount received. Warrants associated with the Second July 2024 Facility Agreement were measured at fair value and recorded as equity.

On the Uplist Date, the Company drew additional $80 of the Second July 2024 Facility Loan Amount. In addition, immediately following the Uplist Date, $160 of the Second July 2024 Facility Loan Amount was converted into units, which included 160,000 shares of common stock and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity.

During June 2025, all 520,000 warrants granted under the Second July 2024 Facility Agreement were exercised into 520,000 shares of common stock. The Company received total proceeds of $520 upon exercise of the warrants.

On July 14, 2025, following the closing of the July 2025 Private Placement and the proceeds received by the Company (see note 15.C), the Second July 2024 Facility Agreement was terminated.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 12: FINANCIAL INSTRUMENTS AT FAIR VALUE**

**Financial instruments:**

The Company has financial instruments measured at level 3 arising from the June 2024 Facility Agreement, the First July 2024 Facility Agreement and the Second July 2024 Facility Agreement (see notes 11.D, 11.E, 11.F). Embedded derivatives were identified and recognized at fair value upon initial recognition of each of the financial instruments and measured at fair value at each balance sheet date.

The fair value of the financial instruments as of December 31, 2024, was calculated using the following unobservable inputs: share price: $0.472, expected volatility: 148%, exercise price: $1.00, risk-free interest rate: 4.24%-4.32%, expected life: 0.46-0.50 years.

On June 5, 2025, immediately after the Uplist, the Company converted all embedded derivatives to equity. At the Uplist Date and before the conversion, these embedded derivatives were measured at their intrinsic value through profit or loss.

The following table presents the financial instruments that were measured at fair value through profit or loss:

SCHEDULE OF FINANCIAL INSTRUMENTS

---

| | | |
|:---|:---|:---|
|  | **Embedded**<br> **derivatives** | **Earn-out liability** |
| **Balance as of January 1, 2025** | 29 |  |
| Earn-out liability recorded in connection with Metagramm Acquisition (see note 8.C) |  | 1010 |
| Earn-out payable amounts upon achieving financing milestone in connection with Metagramm Acquisition (see note 8.C) |  | (201) |
| Net changes at fair value recognized through profit or loss | 10121 | (16) |
| Embedded derivatives converted to equity | (10150) | - |
| **Balance as of December 31, 2025** | - | 793 |

---

---

| | |
|:---|:---|
|  | **Embedded**<br> **derivatives** |
| **Balance as of January 1, 2024** |  |
| Embedded derivatives recorded in connection with the June 2024 Facility Agreement, the First July 2024 Facility Agreement and the Second July 2024 Facility Agreement | 40 |
| Warrants issued to the June 2024 Lead Lender (see note 11.D) | 1833 |
| Reclassification of derivative warrant liability into equity (see note 11.D) | (1833) |
| Net changes at fair value recognized through profit or loss | (11) |
| **Balance as of December 31, 2024** | 29 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 13: INCOME TAX EXPENSE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Tax rates applicable to the income of the Company:**

Viewbix Inc. is taxed according to U.S. tax laws.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act, which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018.

Viewbix Israel is taxed according to Israeli tax laws. The Israeli corporate tax rate is 23% in the years 2025 and 2024.

Gix Media and Cortex are recognized as a "Preferred-Technology Enterprise" in accordance with Section 51 of the Encouragement of Capital Investments Law, 1959 and are taxed at a reduced corporate tax rate of 12%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Tax assessments:**

As of December 31, 2025, Gix Media has a final tax assessment for all tax year up to the year ended December 31, 2020.

Viewbix Israel has a final tax assessment for all tax year up to the year ended December 31, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Deferred taxes are comprised of the following components:**

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Deferred taxes are comprised of the following components:

SCHEDULE OF DEFERRED INCOME TAXES

---

| | | |
|:---|:---|:---|
|  | **As of**<br> **December 31**<br>**2025** | **As of**<br> **December 31**<br>**2024** |
| **Deferred tax assets** |  |  |
| Deferred research and development expenses | 12 | 57 |
| Employee compensation and benefits |  | 1 |
| Operating loss carryforward | 9178 | 8766 |
| **Total deferred tax assets** | 9190 | 8824 |
| **Deferred tax liabilities:** |  |  |
| Intangible assets associated with business combinations | 326 | 222 |
| **Total deferred tax liabilities** | 326 | 222 |
| Net deferred tax assets before valuation allowance | 8864 | 8602 |
| Valuation allowance | (9178) | (8768) |
| **Net deferred tax liabilities** | 314 | 166 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 13: INCOME TAX EXPENSE (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Deferred taxes are comprised of the following components: (Cont.)**

As of December 31, 2025 and 2024, the Company has recorded a valuation allowance of $9,178 and $8,768 respectively, in respect of the deferred tax assets resulting primarily from tax loss carryforward of Viewbix Inc. and Viewbix Israel, as management currently believes these deferred tax assets will not be realized in the foreseeable future.

**Income tax expenses are comprised as follows:**

SCHEDULE OF INCOME TAX EXPENSES (BENEFITS)

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| Current tax expenses | 29 | 171 |
| Deferred tax income | (68) | (40) |
| **Income tax expense (benefit)** | (39) | 131 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Reconciliation of the theoretical tax expenses to the actual tax expenses:**

The Company adopted ASU 2023-09 for the year ended December 31, 2025, on a prospective basis. A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense as reported in the statements of operations is as follows:

SCHEDULE OF RECONCILIATION THEORETICAL TAX EXPENSES

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31, 2025** | **Year ended December 31, 2025** |
|  | **Amount** | **Percent** |
| &nbsp;&nbsp;&nbsp;&nbsp;US federal statutory tax rate | $2822 | 21% |
| Foreign tax effects: |  |  |
| Statutory tax rate difference between Israel and the United States | 26 | (0.2)% |
| Changes in Valuation Allowances: | 410 | (3.1)% |
| Non-taxable or non-deductible items: |  |  |
| Stock-based payments awards | 16 | (0.1)% |
| Change in the fair value of financial assets at fair value through profit or loss | 2126 | (15.8)% |
| Other | 8 | (0.1)% |
| Other Adjustments: | 197 | (1.4)% |
| **Income tax benefit** | $(39) | 0.3% |

---

Reconciliation between the Company's theoretical tax benefit to the actual tax expense prior to the adoption of ASU 2023-09:

SCHEDULE OF RECONCILIATION THEORETICAL TAX BENEFIT

---

| | |
|:---|:---|
|  | **Year ended December 31**<br>**2024** |
| Loss before income taxes as reported in the consolidated statements of operations | (3447) |
| Statutory tax rate in the U.S. | 21% |
| Theoretical tax benefit | 724 |
| Increase (decrease) in tax expenses resulting from: |  |
| Lower tax rates for preferred technology enterprises | (27) |
| Non-deductible expenses | 35 |
| Change in valuation allowance | 835 |
| Others | 12 |
| **Income tax expense** | 131 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 13: INCOME TAX EXPENSE (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Available carryforward tax losses:**

As of December 31, 2025, Viewbix Israel incurred operating losses of approximately $14,506 which may be carried forward and offset against taxable income in the future for an indefinite period.

As of December 31, 2025, the Company incurred operating losses in the U.S. of approximately $27,532. Net operating losses in the U.S. are available through 2035. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the "change in ownership" provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Income (loss) before taxes includes the following components:**

SCHEDULE OF INCOME (LOSS) BEFORE TAXES ON INCOME

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** |
| USA | (13342) | (3711) |
| Israel | (95) | 264 |
|  | (13437) | (3447) |

---

**NOTE 14: COMMITMENTS AND CONTINGENCIES**

**Liens:**

On September 19, 2022, as part of the Reorganization Transaction terms, the Company has provided several liens under Gix Media's Financing Agreement with Leumi in connection with the Cortex Transaction, as follows: (1) a guarantee to Bank Leumi of all of Gix Media's obligations and undertakings to Bank Leumi unlimited in amount; (2) a subordination letter signed by the Company to Leumi Bank; (3) A first ranking all asset charge over all of the assets of the Company; and (4) a Deposit Account Control Agreement over the Company's bank accounts.

Gix Media has provided several liens under the Financing Agreement with Leumi in connection with the Cortex Transaction, as follows: (1) a floating lien on Gix Media's assets; (2) a lien on Gix Media's bank account in Leumi; (3) a lien on Gix Media's rights under the Cortex Transaction; (4) a fixed lien on Gix Media's intellectual property; and (5) a lien on Gix Media's full holdings in Cortex.

On November 9, 2025, under the Cortex Sale Agreement (see note 8.B), Gix Media provided Leumi a lien on the consideration received in the form of shares and Leumi released its lien on the shares of Cortex sold by Gix Media.

Gix Media's restricted deposits in the amount of $20 as of December 31, 2025, are held as a security in respect of credit cards and its rented offices.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: SHAREHOLDERS' EQUITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Shares of Common Stock:**

Shares of Common Stock confer the rights to: (i) participate in the general meetings, to one vote per share for any purpose, to an equal part, on share basis, (ii) in distribution of dividends and (iii) to equally participate, on share basis, in distribution of excess of assets and funds from the Company and will not confer other privileges.

On June 18, 2024, as part of the June 2024 Facility Agreement, the Company issued to the June 2024 Lenders 233,679 shares of common stock and 233,679 warrants to purchase such number of shares of common stock with an exercise price of $1.00 per share. In addition, the Company issued to the June 2024 Lead Lender a warrant to purchase 625,000 shares of common stock with an exercise price of $4.00 per share, representing an aggregate exercise amount of $2.5 million (see note 11.D). In July 2024, following the closing of the 2024 Private Placement (as defined in note 15.B), the exercise price of the June 2024 Lead Lender Fee Warrants was adjusted to $0.472, which is equal to the effective price per share of common stock in the 2024 Private Placement, and the number of shares of common stock issuable upon the exercise of the June 2024 Lead Lender Fee Warrants was also adjusted to a total of 5,296,610 shares, such that the adjusted exercise price and number of warrants issued is equal to an aggregate amount of $2.5 million

On July 4, 2024, as part of the First July 2024 Facility Agreement, the Company issued to the First July 2024 Lender 425,000 shares of common stock and 550,000 warrants to purchase such number of shares of common stock with an exercise price of $1.00 per share (see note 11.E).

On July 14, 2024 and July 25, 2024, the Company entered into consulting agreements with certain consultants (the "Consultants") pursuant to which the Consultants agreed to provide certain services to the Company in connection with the Uplist (as defined in note 1.G). In consideration with the Consultants' services, the Company issued to the Consultants 120,000 shares of common stock in July 2024. The Company recorded a share-based compensation expense of $57 in other expenses, net in connection with the issuance of shares to the Consultants, for the year ended December 31, 2024.

On July 28, 2024, as part of the Second July 2024 Facility Agreement, the Company issued to the lenders of the Second July 2024 Facility Agreement 510,000 shares of common stock and 360,000 warrants to purchase such number of shares of common stock with an exercise price of $4.00 per share (see note 11.F).

On March 24, 2025, the Company entered into the 2025 SEA with Metagramm and all of the shareholders of Metagramm, pursuant to which the Company issued to Metagramm's shareholders 1,323,000 of the Company's shares representing 19.99% of its issued and outstanding share capital in exchange for 100% of Metagramm's issued and outstanding share capital (see note 8.C).

On June 5, 2025, following the Uplist and as part of the June 2024 Facility Agreement, $663 of the Total Credit Facility Amount was converted into an aggregate of 662,957 shares of common stock of the Company and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $1.00 per share. In addition, during June and July 2025, out of 896,636 warrants granted under the June 2024 Facility Agreement, 722,495 warrants were exercised into 722,495 shares of common stock (see note 11.D).

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: SHAREHOLDERS' EQUITY (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Shares of Common Stock: (Cont.)**

On June 5, 2025, following the Uplist and as part of the First July 2024 Facility Agreement, $100 of the First July 2024 Facility Loan Amount was converted into an aggregate of 100,000 shares of common stock of the Company and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $1.00 per share. In addition, during June 2025, all 650,000 warrants granted under the First July 2024 Facility Agreement were exercised into 650,000 shares of common stock (see note 11.E).

On June 5, 2025, following the Uplist and as part of the Second July 2024 Facility Agreement, $160 of the Second July 2024 Facility Loan Amount was converted into an aggregate of 160,000 shares of common stock of the Company and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $1.00 per share. In addition, during June 2025, all 520,000 warrants granted under the Second July 2024 Facility Agreement were exercised into 520,000 shares of common stock (see note 11.F).

On June 15, 2025, the Company issued 37,500 shares of common stock to a consultant as consideration for services provided in connection with the Uplist. The Company recognized $75 of share-based compensation expense, recorded in other expenses, net, during the year ended December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. 2024 Private Placement**

On July 3, 2024, the Company entered into a definitive securities purchase agreement with a certain investor (the "Lead Investor") for the purchase and sale in a private placement (the "2024 Private Placement") of units consisting of (i) 256,875 shares of the Company's common stock at a purchase price of $1.00 per share and (ii) 385,332 warrants to purchase 385,332 shares of the Company's common stock (the "PIPE Warrants") to the Lead Investor and other investors acceptable to the Lead Investor and the Company. The PIPE Warrants are exercisable upon issuance at an exercise price of $1.00 per share and have a 3three-year term from the issuance date. In addition, the PIPE Warrants are subject to an automatic exercise provision in the event that the Company's shares of common stock are approved for listing on the Nasdaq Capital Market.

The aggregate gross proceeds received by the Company from the 2024 Private Placement were $257, of which $237 received in June 2024 and the $20 remaining received in July 2024.

Upon the closing of the 2024 Private Placement, the Company agreed to pay the Lead Investor: (1) $10 for actual and documented fees and expenses incurred and, (2) a commission consisting of (i) a cash fee of $13 and (ii) 12,844 shares of the Company's common stock.

The Company incurred share issuance costs of $65 ($59 in cash and $6 in shares of common stock) which were recognized as a reduction of additional paid-in capital.

In July 2024, the Company issued 269,719 shares of common stock and 385,332 warrants in connection with the 2024 Private Placement.

Following the Uplist Date, out of 385,332 warrants granted under the 2024 Private Placement, 328,142 warrants were exercised during June and July 2025 into 328,142 shares of common stock. The Company received total proceeds of $328 upon exercise of the warrants.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: SHAREHOLDERS' EQUITY (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. July 2025 Private Placement**

On July 11, 2025, the Company entered into a securities purchase agreement with certain accredited investors pursuant to which the Company issued and sold in a private placement, (the "July 2025 Private Placement") an aggregate of 848,763 shares of common stock, pre-funded warrants to purchase up to 77,160 shares of common stock and common warrants to purchase up to an aggregate of 925,923 shares of common stock, at an offering price of $4.86 per share of common stock and associated common warrant and an offering price of $4.8599 per pre-funded warrant and associated common warrant.

The pre-funded warrants were immediately exercisable upon issuance at an exercise price of $0.0001 per share and will not expire until exercised in full. The common warrants were immediately exercisable upon issuance at an exercise price of $4.74 per share, subject to adjustment as set forth therein, and will expire five and a half years from the issuance date. The common warrants may be exercised on a cashless basis if there is no effective registration statement registering the shares of common stock underlying the common warrants.

In connection with the July 2025 Private Placement, the Company also entered into a letter agreement with a placement agent on July 11, 2025, according to which the Company paid a cash placement fee equal to 7.0% of the gross proceeds and $50 for reasonable legal fees and disbursements.

The July 2025 Private Placement closed on July 14, 2025. The aggregate gross proceeds received by the Company on the closing date were $4,500. The Company incurred share issuance costs of $477 which were recognized as a reduction of additional paid-in capital.

In connection with the closing of the July 2025 Private Placement and the related proceeds, the First July 2024 Facility Agreement and the Second July 2024 Facility Agreement were terminated. In addition, the shareholders of Metagramm became entitled to partial earn-out payments on a pro rata basis pursuant to the 2025 SEA (see note 8.C).

On September 5, 2025, 20,576 pre-funded warrants were exercised into 20,576 shares of common stock.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: SHAREHOLDERS' EQUITY (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Warrants:**

The following table summarizes information of outstanding warrants as of December 31, 2025:

SCHEDULE OF OUTSTANDING WARRANTS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Warrants** | **Warrant Term** | **Exercise**<br> **Price** | **Exercisable** |
| Class J Warrants | 32584 | July 2029 | 53.76 | 32584 |
| Class K Warrants | 32584 | July 2029 | 89.60 | 32584 |
| June 2024 Facility Agreement Warrants (note 11.D) | 174141 | June 2027 | 1.00 | 174141 |
| June 2024 Lead Lender Fee Warrants (note 11.D) | 5296610 | June 2027 | 0.472 | 5296610 |
| 2024 PIPE Warrants (note 15.B) | 57190 | July 2027 | 1.00 | 57190 |
| 2025 July Private Placement - pre-funded warrants (note 15.C) | 56584 | Until exercised in full | 0.00 | 56584 |
| 2025 July Private Placement – common warrants (note 15.C) | 925923 | January 2031 | 4.74 | 925923 |

---

The following table summarizes the activity in outstanding warrants during the year ended December 31, 2025:

SUMMARY OF ACTIVITY IN OUTSTANDING WARRANTS

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Warrants outstanding as of January 1, 2025** | **Warrants granted** | **Warrants Exercised** | **Warrants Expired** | **Warrants outstanding as of December 31, 2025** |
| Class J Warrants | 32584 |  |  |  | 32584 |
| Class K Warrants | 32584 |  |  |  | 32584 |
| 2023 Warrants (note 11.C) | 120000 |  |  | (120000) |  |
| June 2024 Facility Agreement Warrants (note 11.D) | 233679 | 662957 | (722495) |  | 174141 |
| June 2024 Lead Lender Fee Warrants (note 11.D) | 5296610 |  |  |  | 5296610 |
| First July 2024 Facility Warrants (note 11.E) | 550000 | 100000 | (650000) |  |  |
| Second July 2024 Facility Warrants (note 11.F) | 360000 | 160000 | (520000) |  |  |
| 2024 PIPE Warrants (note 15.B) | 385332 |  | (328142) |  | 57190 |
| 2025 July Private Placement - pre-funded warrants (note 15.C) |  | 77160 | (20576) |  | 56584 |
| 2025 July Private Placement – common warrants (note 15.C) | - | 925923 | - | - | 925923 |
| **Total** | **7010789** | **1926040** | **(2241213)** | **(120000)** | **6575616** |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: SHAREHOLDERS' EQUITY (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Reverse Stock Split:**

On July 15, 2024, the Company filed an amendment to its Amended COI to effect a 1-for-4 reverse stock split of the Company's Common Stock (the "Reverse Stock Split"). The Reverse Stock Split became effective on March 14, 2025.

As a result of the Reverse Stock Split, every 4 outstanding shares of the Company's common stock were converted into 1 share of the Company's common stock. The Reverse Stock Split did not change the par value of the Company's common stock or the number of its authorized shares.

Share and per share data in these financial statements have been retrospectively adjusted to reflect the Reverse Stock Split for all periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Share option plan**:

On March 2, 2023, the Board approved the adoption of the 2023 Stock Incentive Plan (the "2023 Plan"). The 2023 Plan permits the issuance of up to (i) 625,000 shares of Common Stock, plus (ii) an annual increase equal to the lesser of (A) 5% of the Company's outstanding capital stock on the last day of the immediately preceding calendar year; and (B) such smaller amount as determined by the Board, provided that no more than 625,000 shares of Common Stock may be issued upon the exercise of Incentive Stock Options. If any outstanding awards expire, are canceled or are forfeited, the underlying shares would be available for future grants under the 2023 Plan.

The 2023 Plan provides for the grant of stock options, restricted stock, restricted stock units, stock or other stock-based awards, under various tax regimes, including, without limitation, in compliance with Section 102 and Section 3(i) of the Israeli Income Tax Ordinance (New Version) 5271-1961, and for awards granted to United States employees or service providers, including those who are deemed to be residents of the United States for tax purposes, Section 422 and Section 409A of the United States Internal Revenue Code of 1986.

In connection with the adoption of the 2023 Plan, on March 7, 2023, the Company entered into certain intercompany reimbursement agreements with two of its subsidiaries, Viewbix Israel and Gix Media (the "Recharge Agreements"). The Recharge Agreements provide for the offer of awards under the 2023 Plan to employees or service providers of Viewbix Israel and Gix Media (the "Affiliates") under the 2023 Plan. Under the Recharge Agreements, the Affiliates will each bear the costs of awards granted to its employees or its service providers under the 2023 Plan and will reimburse the Company upon the issuance of shares of Common Stock pursuant to an award, for the costs of shares issued, but in any event not prior to the vesting of an award. The reimbursement amount will be equal to the lower of (a) the book expense for such award as recorded on the financial statements of one of the respective Affiliates, determined and calculated according to U.S. GAAP, or any other financial reporting standard that may be applicable in the future, or (b) the fair value of the shares of Common Stock at the time of exercise of an option or at the time of vesting of an RSU, as applicable.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 15: SHAREHOLDERS' EQUITY (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Share option plan**: **(Cont.)**

On July 20, 2023, the Company granted 12,756 restricted share units (the "RSUs") under the 2023 Plan to Gix Media's CEO, as part of his employment terms, (the "Grantee") under the following terms and conditions: (1) 12,756 of Common Stock underlying the grant of RSUs (2) Vesting Commencement Date: July 1, 2023 (3) vesting schedule: 50% of the RSUs vested immediately upon the Vesting Commencement Date (the "First Tranche") and the remaining 50% of the RSUs vested 12 months after the Vesting Commencement Date (the "Second Tranche"), provided, in each case, that the Grantee remains continuously as a Service Provider (as defined under the 2023 Plan) of Gix Media or its affiliates throughout each such vesting date (the "Grant").

On July 1, 2023, upon the vesting of the First Tranche, the Company issued 6,378 shares of Common Stock to the Grantee. On July 1, 2024, upon the vesting of the Second Tranche, the Company issued 6,378 shares of Common Stock to the Grantee. The Company recorded a share-based compensation expense of $12 in general and administrative expenses in connection with the Grant for the year ended December 31, 2024.

On July 11, 2025, in accordance with the terms of the 2023 Plan, the Company's board of directors approved an increase in the number of shares of common stock reserved for issuance under the 2023 Plan by up to 2,713,613 shares.

The Company recognized stock-based compensation expenses in the statement of operations as follows:

SCHEDULE OF STOCK BASED COMPENSATION EXPENSES

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| General and administrative |  | 12 |
| Other expenses, net (see note 15.A) | 75 | 57 |
| Total | 75 | 69 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 16: ADDITIONAL INFORMATION REGARDING PROFIT AND LOSS ITEMS**

**Composition:**

SCHEDULE OF INFORMATION REGARDING TO ACQUISITION RELATED COSTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Traffic-acquisition and related costs:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Search ads | 297 | 1730 |
|  | $297 | $1730 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Research and development expenses:**

SCHEDULE OF INFORMATION REGARDING TO PROFIT AND LOSS

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Salaries and related expenses | $- | $369 |
| Professional services and subcontractors | 64 | 392 |
| Other | 5 | 69 |
|  | $69 | $830 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Selling and marketing expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Salaries and related expenses | $- | $216 |
| Advertising and marketing expenses | 100 | 44 |
| Other | - | 49 |
|  | $100 | $309 |

---

**D**. **General and administrative expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Salaries and related expenses | $592 | $738 |
| Professional services | 748 | 910 |
| Share-based compensation |  | 12 |
| Other | 285 | 193 |
|  | $1625 | $1853 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 16: ADDITIONAL INFORMATION REGARDING PROFIT AND LOSS ITEMS (Cont.)**

**E**. **Financial expense, net:**

**Financial income:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Exchange rate differences | $157 | $9 |
| Interest income on loan to Parent Company | 63 | 160 |
| Change in the fair value of financial assets at fair value through profit or loss |  | 11 |
| Other | - | 13 |
|  | $220 | $193 |

---

**Financial expenses:**

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Bank interest and fees | $19 | $34 |
| Interest expense on bank loans | 298 | 578 |
| Loss from substantial debt terms modification (note 11.C) |  | 1914 |
| Exchange rate differences | 249 | 22 |
| Amortization of deferred debt issuance costs | 632 | 152 |
| Change in the fair value of financial assets at fair value through profit or loss (note 12) | 10121 |  |
| Other | 154 | 103 |
|  | $11473 | $2803 |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

N**OTE 17: LOAN TO PARENT COMPANY**

SCHEDULE OF LOAN FROM TO PARENT COMPANY

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Loan to Parent Company | | - | | 3,981 |

---

The balance with the Parent Company represents a balance of an intercompany loan under a loan agreement signed between Gix Media and the Parent Company on March 22, 2020. The loan bore interest at a rate determined from time to time in accordance with Section 3(j) of the Income Tax Ordinance, new version, and the Income Tax Regulations (Determination of Interest Rate for the purposes of Section 3(j), 1986) or according to a market interest rate decision as agreed between the parties. The amount of the loan is in U.S. dollars.

On March 19, 2025, the Company's board of directors approved to extend the loan between Gix Media and the Parent Company until September 1, 2025. All other terms and conditions of the loan will remain unchanged.

On April 10, 2025, the Company's board of directors approved the redemption of the loan between Gix Media and the Parent Company. As a result, Gix Media and the Parent Company entered into a redemption agreement, effective as of May 27, 2025, pursuant to which the outstanding loan was redeemed in consideration for the transfer to Gix Media of all of the Parent Company's intangible assets, including, inter alia, intellectual property rights, trademarks, software, algorithms, domains, technological know-how and any other intangible asset (the "Redemption"). Since this transaction is between entities under common control, the intangible assets received from the Parent Company were recorded at their historical carrying amount as they were recorded at the Parent Company's financial statements which is $0.

As a result, the outstanding loan amount including accrued interest, totaling $4,048, was redeemed in full. The Redemption was recorded as an increase to the accumulated deficit in the Company's statement of changes in shareholders equity for the year ended December 31, 2025.

For the year ended December 31, 2025 and 2024, Gix Media recognized interest income in the amount of $63 and $160, respectively.

N**OTE 18: MAJOR CUSTOMERS**

The following table sets forth the customers that represent 10% or more of the Group's total revenues in each of the periods presented below:

SCHEDULE OF TOTAL REVENUES

---

| | | |
|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** |
|  | **2025** | **2024** |
| Customer A | 79% | 88% |
| Customer B | 19% | 5% |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 19: SEGMENT REPORTING**

The Group operates in such a way that each company in the Group represents a 2separate business segment. These business segments currently do not include Metagramm's operations as they do not meet the segment definition criteria.

**Search segment** - the search segment develops a variety of technological software solutions, which perform automation, optimization and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted by Gix Media.

**Digital content segment** - the digital content segment was engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, including Google, Facebook, Yahoo and Apple, by utilizing such content to obtain internet user traffic for its customers. The digital content segment activity was conducted by Cortex until November 9, 2025 (see note 8.B), after which the Group ceased operations in this segment and continued to operate solely in the search segment (see note 3).

The segments' results include items that directly serve and/or are used by the segment's business activity and are directly allocated to the segment. As such they do not include depreciation and amortization expenses for intangible assets created at the time of the purchase of those companies and financing expenses incurred on loans taken for the purpose of purchasing those companies. Therefore, these items are not allocated to the various segments.

The chief executive officer, who is the Company's chief operating decision maker ("CODM"), assesses performance for these segments and decides how to allocate resources based the segments' operating income or loss and income or loss before tax. Segments' assets and liabilities are not reviewed by the CODM and therefore were not reflected in the segment reporting. The significant expense categories comprising segments profit and loss regularly reviewed by the CODM for the years ended December 31, 2025 and 2024 are set forth in the table below.

The substantial amount of non-current assets is derived from Israel and the substantial amount of revenues is derived from United States.

**Segments revenues and operating results:**

SCHEDULE OF SEGMENTS REVENUES AND OPERATING RESULTS

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** | **For the year ended December 31, 2025** |
|  | **Search**<br> **Segment** | **Adjustments**<br> **and eliminations**<br> **(See below)** | **Total** |
| Revenues from external customers | 1543 | 26 | 1569 |
| Traffic-acquisition and related costs | 242 | 55 | 297 |
| Research and development expenses | 69 |  | 69 |
| Sales and marketing expenses | 100 |  | 100 |
| General and administrative expenses | 250 | 1375 | 1625 |
| Depreciation and amortization |  | 848 | 848 |
| Other expenses (income), net | (144) | 958 | 814 |
| Segment operating income (loss) | 1026 | (3210) | (2184) |
| Financial expenses, net | (317) | (10936) | (11253) |
| Segment income (loss), before income taxes | 709 | (14146) | (13437) |

---

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 19: SEGMENT REPORTING (Cont.)**

**Segments revenues and operating results: (Cont.)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** | **For the year ended December 31, 2024** |
|  | **Search**<br> **Segment** | **Adjustments**<br> **and eliminations**<br> **(See below)** | **Total** |
| Revenues from external customers | 4969 |  | 4969 |
| Traffic-acquisition and related costs | 1989 | (259) | 1730 |
| Research and development expenses | 818 | 12 | 830 |
| Sales and marketing expenses | 304 | 5 | 309 |
| General and administrative expenses | 549 | 1304 | 1853 |
| Depreciation and amortization |  | 813 | 813 |
| Other expenses (income), net | (5) | 276 | 271 |
| Segment operating income (loss) | 1314 | (2151) | (837) |
| Financial expenses, net | (16) | (2594) | (2610) |
| Segment income (loss), before income taxes | 1298 | (4745) | (3447) |

---

The "adjustments and eliminations" column for segment operating income includes unallocated selling, general, and administrative expenses and certain items which management excludes from segment results when evaluating segment performance, as follows:

SCHEDULE OF RECONCILIATION BETWEEN SEGMENTS OPERATING RESULTS

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br> **December 31,**<br> **2025** | **Year ended**<br> **December 31,**<br> **2024** |
| Depreciation and amortization expenses not attributable to segments (\*\*\*) | (848) | (813) |
| Revenues, research and development expenses, sales and marketing expenses, general and administrative expenses and other expenses, net not attributable to the segments (\*\*\*\*) | (2362) | (1338) |
|  | (3210) | (2151) |

---

---

| | |
|:---|:---|
| (\*) | Mainly consist of financial expenses arising from changes in the fair value of financial assets measured at fair value through profit or loss (see note 12). |
| (\*\*) | Mainly consist of financial expenses from substantial debt terms modification loss and interest expenses on bank loans in connection with the Financing Agreement (see notes 11.B, 11.C). |

---

(\*\*\*) Mainly consist of technology and customer relations amortization costs from business combinations. <br>(\*\*\*\*) Mainly consist of general and administrative expenses such as salaries and related expenses and professional services.

**VIEWBIX INC.**

**<u>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands (except share data)**

**NOTE 20: SUBSEQUENT EVENTS**

The Company has evaluated subsequent events from December 31, 2025 through March 27, 2026, the date of issuance of these financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** On
 March 4, 2026, the Company closed the Quantum Acquisition (the "Quantum Closing Date"), pursuant to which the Company
 acquired 100% of Quantum's issued and outstanding share capital on a fully diluted, post-closing basis and Quantum became a
 wholly owned subsidiary of the Company. On the Quantum Closing Date, the Company issued to the Quantum Shareholders 1,866,000 shares
 of its common stock and pre-funded warrants to purchase 4,447,595 shares of its common stock. The pre-funded warrants were exercisable
 upon issuance at an exercise price of $0.0001 per share and will not expire until exercised in full.

**B.** On January 1, 2026, the Company entered into an amended and restated securities purchase agreement with certain accredited investors
pursuant to which the Company agreed to sell and issue in a private placement, an aggregate amount of 800,000 shares of common stock
(the "2026 Private Placement") and common warrants to purchase up to an aggregate amount of 640,000 shares of common stock
(the "2026 PIPE Warrants"), at an offering price of $1.75 per share of common stock and associated common warrant. The 2026
PIPE Warrants are exercisable upon issuance at an exercise price of $2.625 per share and will expire five years from the issuance date.

In connection with the 2026 Private Placement, the Company also entered into an advisory agreement, as amended, with L.I.A. Pure Capital Ltd. ("the Advisor") pursuant to which the Company agreed to pay the Advisor a commission consisting of (i) a cash fee of $70 and (ii) a warrant to purchase 32,000 shares of the Company's common stock on the same terms as the 2026 PIPE Warrants. Payment of the commission is conditioned upon the closing of the 2026 Private Placement. In addition, in connection with the closing of the 2026 Private Placement, the Company agreed to repay $200 of the outstanding loan amount owed to the Advisor pursuant to the June 2024 Facility Agreement (see note 11.D).

The 2026 Private Placement closed on March 4, 2026, pursuant to which the Company issued 800,000 shares of its common stock and warrants to purchase 640,000 shares of its common stock. The aggregate gross proceeds received by the Company were $1,400, before deducting fees payable to the Advisor and other offering expenses payable by the Company.

**DELIVERZ.AI LTD.**

**FINANCIAL STATEMENTS**

**<u>JUNE 30, 2025</u>**

**<u>CONTENTS</u>**

---

| | |
|:---|:---|
|  | **Page** |
| [Interim Balance Sheet](#fj_002) | F-131 |
| [Interim Statement of Other Comprehensive Loss](#fj_003) | F-133 |
| [Interim Statement of Changes in Shareholders' Deficit](#fj_004) | F-134 |
| [Interim Statement of Cash Flows](#fj_005) | F-135 |
| [Notes to Financial Statement](#fj_006) | F-136 |

---

**DELIVERZ.AI LTD.**

**<u>INTERIM BALANCE SHEET (Unaudited)</u>**

**U.S. dollars in thousands**

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of**<br> **June 30** | **As of**<br> **December 31** |
|  | <br>**Note** | **2025** | **2024** |
| **<u>ASSETS</u>** |  |  |  |
| **CURRENT ASSETS** |  |  |  |
| Cash and cash equivalents |  | 19 | 51 |
| Receivable from tax authorities |  | 6 | 1 |
| **Total current assets** |  | 25 | 52 |
| **NON-CURRENT ASSETS** |  |  |  |
| Property and equipment, net |  | 9 | 2 |
| **Total non-current assets** |  | 9 | 2 |
| **Total assets** |  | 34 | 54 |

---

**The accompanying notes are an integral part of these financial statements.**

**DELIVERZ.AI LTD.**

**<u>INTERIM BALANCE SHEET (Unaudited) (Cont.)</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of**<br> **June 30** | **As of**<br> **December 31** |
|  | <br>**Note** | **2025** | **2024** |
| **<u>LIABILITIES AND SHAREHOLDERS' EQUITY</u>** |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |
| Accounts payable |  | 12 | 24 |
| Employees and payroll accruals |  | 105 | 31 |
| Other payables |  | 17 | 5 |
| Loan form shareholders | **3** | 481 | 201 |
| **Total current liabilities** |  | 615 | 261 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| Loan form shareholders | **3** | 306 | 283 |
| **Total non-current liabilities** |  | 306 | 283 |
| **SHAREHOLDERS' DEFICIT** |  |  |  |
| Ordinary Shares of NIS 0.001 par value - Authorized: 100,000,000 shares; Issued and outstanding: 1,000,000 as of June 30, 2025 and December 31, 2024, respectively. |  | (\*) | (\*) |
| Foreign currency translation reserve |  | (69) | (\*) |
| Additional paid-in capital |  | 3110 | 3110 |
| Accumulated deficit |  | (3928) | (3600) |
| **Total shareholders' deficit** |  | (887) | (490) |
| **Total liabilities and shareholders' deficit** |  | 34 | 54 |

---

**The accompanying notes are an integral part of these financial statements.**

---

| | |
|:---|:---|
| (\*) | Represents an amount less than $1. |

---

**DELIVERZ.AI LTD.**

**<u>INTERIM STATEMENT OF OTHER COMPREHENSIVE LOSS (Unaudited)</u>**

**U.S. dollars in thousands**

---

| | | | |
|:---|:---|:---|:---|
|  | | **For the six months ended<br> June 30,** | **For the six months ended<br> June 30,** |
|  | <br>**Note** | **2025** | **2024** |
| **Costs and expenses:** |  |  |  |
| Research and development |  | 243 | 37 |
| Sales and marketing expenses |  | 30 |  |
| General and administrative |  | 45 | 15 |
| **Operating loss** |  | (318) | (52) |
| Financial expenses (income), net |  | 10 | (46) |
| **Net loss** |  | (328) | (6) |
| **Other comprehensive loss:** |  |  |  |
| Foreign currency translation adjustments |  | (69) |  |
| **Total comprehensive loss** |  | (397) | (6) |

---

**The accompanying notes are an integral part of these financial statements.**

**DELIVERZ.AI LTD.**

**<u>INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT (Unaudited)</u>**

**U.S. dollars in thousands (except share data)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares (\*)** | **Ordinary Shares (\*)** | | | | |
|  | **Number** | **Amount** | **Foreign Currency Translation**<br>**Reserve** | **Additional Paid-in**<br>**Capital** | **Accumulated<br> Shareholders'<br>** <br> **Deficit** | **Total<br> Shareholders'** <br>**Deficit** |
| **Balance as of January 1, 2025** | 1000000 | (\*) |  | 3110 | (3600) | (490) |
| Net loss |  |  |  |  | (328) | (328) |
| Other comprehensive loss | - | - | (69) | - | - | (69) |
| **Total comprehensive loss** |  |  | (69) |  | (328) | (397) |
| **Balance as of June 30, 2025** | **1000000** | (\*) | (69) | 3110 | (3928) | (887) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Ordinary Shares (\*)** | <br>**Ordinary Shares (\*)** | | | |
|  | **Number** | **Amount** | **Additional Paid-in**<br>**Capital** | **AccumulatedShareholders'**<br>**Deficit** | **TotalShareholders'** <br>**Deficit** |
| **Balance as of January 1, 2024** | 276612 | (\*) | 2619 | (3441) | (822) |
| Net loss |  |  |  | (6) | (6) |
| Shares forfeited to former shareholders (see note 1.C) | (276612) | (\*) |  |  |  |
| Issuance of shares to the shareholders of the Company (see note 1.C) | 1000000 | (\*) | 491 |  | 491 |
| **Balance as of June 30, 2024** | 276612 | (\*) | 3110 | (3447) | (337) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares (\*)** | **Ordinary Shares (\*)** | | | |
|  | **Number** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total**<br>**Deficit** |
| **Balance as of January 1, 2024** | 276612 | (\*) | 2619 | (3441) | (822) |
| Net loss |  |  |  | (159) | (159) |
| Shares forfeited to former shareholders (see note 1.C) | (276612) | (\*) |  |  |  |
| Issuance of shares to the shareholders of the Company (see note 1.C) | 1000000 | (\*) | 491 |  | 491 |
| **Balance as of December 31, 2024** | 1000000 | (\*) | 3110 | (3600) | (490) |

---

---

| | |
|:---|:---|
| (\*) | Represents an amount less than $1. |

---

**The accompanying notes are an integral part of these financial statements.** 

**DELIVERZ.AI LTD.**

**<u>INTERIM STATEMENT OF CASH FLOWS (Unaudited)</u>**

 **U.S. dollars in thousands**

---

| | | |
|:---|:---|:---|
|  | **For the six months ended**<br> **June 30,** | **For the six months ended**<br> **June 30,** |
|  | **2025** | **2024** |
| **<u>Cash flows from Operating Activities</u>** |  |  |
| Net loss profit (loss) | (328) | (6) |
| **Adjustments to reconcile net loss to net cash used in operating activities:** |  |  |
| **Changes in assets and liabilities items:** |  |  |
| Increase (decrease) in receivable from tax authorities | (5) | (4) |
| Decrease in accounts payable | (12) | (113) |
| Increase (decrease) in employees and payroll accruals | 74 | (145) |
| Increase (decrease) in other payables | 12 | (5) |
| **Net cash used in operating activities** | (259) | (273) |
| **<u>Cash flows from Investing Activities</u>** |  |  |
| Purchase of property and equipment | (7) | - |
| **Net cash Used in investing activities** | (7) | - |
| **<u>Cash flows from Financing Activities</u>** |  |  |
| Receipt of short-term loans from shareholders (see note 3) | 303 | 28 |
| Receipt of long-term loans from shareholders (see note 3) |  | 268 |
| Repayment of loans from shareholders (see note 3) |  | (494) |
| Issuance of shares to the shareholders of the Company (see note 1.C) | - | 491 |
| **Net cash provided by financing activities** | 303 | 293 |
| **Increase in cash and cash equivalents** | 37 | 20 |
| **Cash and cash equivalents at the beginning of period** | 51 | 1 |
| **Loss from exchange differences on cash and cash equivalents** | (69) |  |
| **Cash and cash equivalents at end of the period** | 19 | 21 |

---

**The accompanying notes are an integral part of these financial statements.**

**DELIVERZ.AI LTD.**

**<u>NOTES TO FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 1: GENERAL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Organizational Background and Business Overview**

Deliverz.Ai Ltd. (the "Company") was incorporated in the state of Israel in January 2017. The Company specializes in the development of advanced logistics automation solutions that integrate with third-party autonomous robots. The Company partners with hardware manufacturers to deploy its proprietary software stack, creating a unified, intelligent delivery solutions optimized for complex, high-traffic environments, such as hospitals and large campuses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Grants from the Israel Innovation Authority**

In March 2021, the Company received an approval letter from the Israel Innovation Authority (previously the Office of the Chief Scientist or the "IIA"),. According to this letter of approval, the Company was entitled to fund 30% of its total research and development expenses, up to a NIS 5.7 million, for a period of 18 months beginning in January 2021, in addition pursuant to the approval letter, the Company has to pay royalties of 3% to the IIA up to the amount IIA funding received and the accrued interest repayment of the grant is contingent upon the Company successfully completing its research and development plans and generating sales from it. The Company has no obligation to repay these grants if its enhancement plans are not completed or aborted or if it generates no sales. During 2022, the Company entered insolvency proceedings (See note 1.C below), as a result the development expenses approved under the letter of approval were halted. The total amount of grants received as of 31, 2024 and June 30 amounted to approximately NIS 1,400 ($384) and NIS 1,324 ($393) (including SOFR interest). In addition, during 2022 the Company received a total of $23 as an advance against its research and development expenses. During 2025, the IIA approved the research and development expenses advance, and accordingly, the amount of $21 was recognized as a reimbursement of research and development expenses in the statement of operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Insolvency Proceedings**

In 2022, the company entered insolvency proceedings through a trustee appointed by the Tel Aviv District Court (the "Court"), due to its inability to meet its obligations to its creditors. In March 2024, the Court approved a creditors' arrangement under which the shareholders of the Company as of insolvency proceedings would forfeit their shares, and the Company issued 1,000,000 shares to the new shareholders who undertook to provide the company with a loan in amount of $274 thus, 276,612 shares of the Company owned by the former shareholder were forfeited. The loan was used to settle creditor debts that were approved by the trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Gix Transaction** 

On July 10, 2025 (the "Closing date"), the Company and its shareholders entered into an agreement with Gix Internet Ltd. ("Gix"), pursuant to which Gix acquired all shares of the Company from it's shareholders in consideration for the issuance of 518,770 shares of Gix which equal to 25% of the Gix's ordinary shares on the Closing date (the "Gix Transaction") (see note 4).

**DELIVERZ.AI LTD.**

**<u>NOTES TO FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 1: GENERAL (Cont.)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Going Concern**

The Company has incurred an operating loss of $318 and $149 and generated negative cash flow from operating activities of $259 and $430 for the six months ended June 30, 2025, and for the year ended December 31, 2024 receptively. Additionally, as of June 30, 2025, and December 31, 2024, the Company had cash and cash equivalents of $19 and $51 and total shareholders' deficit of $3,928 and $3,600 receptively. Management expects the Company to continue to generate operating losses.

Management plans to address these conditions by raising funds through its parent company, Gix Internet Ltd. (see note 4) and by generating larger volumes of revenues. However, there is no assurance such funding will be available to the Company or that it will be obtained on terms favorable to the Company or will provide the Company with sufficient funds to meet its objectives, or that the Company will successfully generate sufficient revenue to meet its objectives.

Such conditions raise substantial doubts about the Company's ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of assets, carrying amounts or the amount and classification of liabilities that may be required should the Company be unable to continue as a going concern.

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Unaudited Interim Financial Statements**

The accompanying interim balance sheet as of June 30, 2025, the interim statements of comprehensive loss, interim statement of changes in shareholders' deficit, and interim statement cash flows for the six months ended June 30, 2025 and June 30, 2024, and the related notes to the interim financial statements are unaudited.

These unaudited interim financial statements have been prepared in accordance with GAAP and are presented in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP.

In management's opinion, the accompanying interim financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company's financial position as of June 30, 2025 and the Company's results of operations and cash flows for the six months ended June 30, 2025 and June 30, 2024.

The significant accounting policies referenced in the annual financial statements of the Company as of December 31, 2024, have been applied consistently in these unaudited interim financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been recorded within the accompanying interim financial statements.

The results for the six months ended June 30, 2025, are not necessarily indicative of the results to be expected for the full year ending December 31, 2025, or any other future interim or annual period. The accompanying unaudited interim financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes contained in the Company's Annual Report for the fiscal year ended December 31, 2024.

**DELIVERZ.AI LTD.**

**<u>NOTES TO FINANCIAL STATEMENTS</u>**

**U.S. dollars in thousands**

**NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported of assets and liabilities and disclosure at the date of the financial statements and the reported amounts of income and expense during the reporting period. On an ongoing basis, management evaluates its estimates, judgments and assumptions. Management bases its estimates, judgments and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.

**NOTE 3: SHAREHOLDERS LOAN** 

On March 13, 2024, as part of the creditors' settlement, the new shareholders provided to the Company with a loan in amount of NIS 1 million (the "Initial Loan"), which was to be used for the repayment of creditor debts approved by the trustee. According to the agreement, the principal and accrued interest of the Initial Loan will be repaid in one payment later of: (1) March 13, 2028, (2) when the Company becomes profitable. The Initial Loan bears annual interest at the rate specified in Section 3(j) of the Israeli Income Tax regulations.

In addition, the new shareholders provided short-term loans for the Company's ongoing operations (the "Operational Loan"). The principal and accrued interest of the Operational Loan will be repaid during November and December 2025. The Operational Loan bears annual interest at the rate specified in Section 3(j) of the Israeli Income Tax regulations.

**NOTE 4: SUBSEQUENT EVENTS**

For its interim financial statements as of June 30, 2025, the Company evaluated subsequent events through January 16, 2026, the date on which the interim financial statements were available to be issued. The Company identified the following subsequent events:

On July 10, 2025 (the "Closing date"), the Company and its shareholders entered into an agreement with Gix Internet Ltd. ("Gix"), pursuant to which Gix acquired all shares of the Company from the shareholders of the Company in consideration for the issuance of 518,770 shares of Gix which equal to 25% of the Gix's ordinary shares on the Closing date (the "Gix Transaction"). As part of the agreement, several milestones were established as follows: (a) If within 18 months from the closing date, the Company successfully completes commercial transactions (as defined in the agreement) for the supply of 20 autonomous delivery robots, Gix will allocate an additional 236,559 of its ordinary shares to the Company shareholders (b) If within 48 months from Closing date, the Company completes commercial transactions for the supply of 200 robots, Gix will allocate an additional 301,075 ordinary shares to the Company shareholders. In addition, Gix commitment to finance the Company working capital needs in a total amount of NIS 3.6 million ($1 million), to be provided by Gix in 12 monthly installments starting from the Closing date of the Gix Transaction the loan to the Company will bear annual interest at a rate of 6%.

**UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION**

**A. General:** 

Gix Internet Ltd. (the "Company") was incorporated in the State of Israel on July 24, 1978, the Company's ordinary shares have been trading on the Tel Aviv Stock Exchange ("TASE") since February 25, 1994.

As of December 31, 2025, the Company holds 26.42% of Quantum X Labs Inc.'s (formerly: known as Viewbix Inc.) outstanding shares and Quantum X Labs Inc. holds all of the outstanding shares of Viewbix Ltd. and Gix Media Ltd. (the "Gix Media"). On April 30, 2026, Quantum X Labs Inc. changed its name from Viewbix Inc. and its trading symbol from "VBIX" to "QXL" on The Nasdaq Capital Marke.

On July 10, 2025, the Company completed the acquisition of 100% of the shares of Deliverz ai Ltd. (the "Deliverz"), a private company incorporated in Israel (see below).

On September 25, 2025, as a result of an increase in the number of Quantum X Labs Inc.'s common shares the Company's holdings in Quantum X Labs Inc. decreased to 26.42% and change in the composition of the board of directors of Quantum X Labs Inc., the Company deconsolidated the financial results of Quantum X Labs Inc. and, accordingly, as of December 31, 2025, and for the period from September 25, 2025 to December 31, 2025 the Company presents its investment in Quantum X Labs Inc. using the equity method (see below).

**B. Deliverz's shares purchase agreement:** 

On July 10, 2025 (the "Closing Date"), the Company entered into an agreement with Deliverz and all shareholders of Deliverz (the "Sellers"), pursuant to which the Company acquired all shares of Deliverz from the Sellers in consideration for the issuance of 518,770 shares of the Company which equal to 25% of the Company's ordinary shares on the Closing Date to the Sellers and issuance of 103,754 ordinary shares of the Company which equal to 5% of the Company's ordinary shares on the Closing Date to the initiator (the "Deliverz Transaction").

As part of the agreement, several milestones were established as follows: (a) If within 18 months from the Closing Date, Deliverz successfully completes commercial transactions (as defined in the agreement) for the supply of 20 autonomous delivery robots, the Company will allocate an additional 236,559 of its ordinary shares to the Sellers and additional ordinary shares to the initiator up to 12,450 of the Company's ordinary shares, (b) If within 48 months from Closing Date, Deliverz completes commercial transactions for the supply of 200 robots, the Company will allocate an additional 301,075 ordinary shares to the Sellers and additional shares to the founder up to 15,846 ordinary shares of the Company.

The Company has committed to finance Deliverz's working capital needs in a total amount of NIS 3.6 million ($1.1 million), to be provided by the Company in 12 monthly installments starting from the Closing Date of the Deliverz Transaction the loan to Deliverz shall bear the same terms as the loan from Pure Capital. In addition, the Company's Board of Directors approved the provision of a loan to Deliverz in the amount of NIS 1.452 million ($0.46 million), which was extended to Deliverz as a loan by Pure Capital Ltd. (hereinafter – "Pure Capital").

Furthermore, the Sellers signed a waiver of dividend rights in the event of an in-kind distribution of Quantum X Labs Inc. shares and also agreed to sign a waiver in the event that the Company sells the Quantum X Labs Inc. shares it holds and distributes the net proceeds from such sale to its shareholders.

**C. Deconsolidation of Quantum X Labs Inc.:** 

During 2025, as a result of an increase in the number of Quantum X Labs Inc.'s outstanding common shares the Company's holdings in Quantum X Labs Inc. decreased to 26.42%, compared to 53.31% as of December 31, 2024.

In addition, on September 25, 2025, Quantum X Labs Inc. announced that Mr. Amihay Hadad and Mr. Liron Carmel, two serving directors appointed by the Company, had completed their terms as directors of Quantum X Labs Inc., they were replaced by two newly appointed directors (the "Change in the Composition of the Board of Directors"). As a result of the Change in the Composition of the Board of Directors, the number of directors serving on behalf of the Company decreased to below 50% of the number of serving directors of Quantum X Labs Inc. as of the date following the Change in the Composition of the Board of Directors (the "Change of Control of Viewbix Inc."). Following the decrease in the Company holdings in Quantum X Labs Inc. and the Change of Control of Quantum X Labs Inc., the Company deconsolidated the assets, liabilities and financial results of Quantum X Labs Inc. (the "Deconsolidation of Quantum X Labs Inc."). In addition since it only owns 26.42% in Quantum X Labs Inc, the Company accounts for its investment in Quantum X Labs Inc. using the equity method. As a result of using the equity method the Company recorded an equity loss in amount of $5,416, during the year ended December 31, 2025.

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF COMPREHENSIVE INCOME**

**For the year ended December 31, 2025**

**(U.S. dollars in thousands)**

**C. Deconsolidation of Quantum X Labs Inc. (Cont.):** 

As of the date of the Deconsolidation of Quantum X Labs Inc., the new cost basis of the Company's investment in Quantum X Labs Inc.'s shares was determined based on the market price of Quantum X Labs Inc.'s shares on the Nasdaq Stock Market as of the date of the Deconsolidation of Quantum X Labs Inc (the "Market Value"). The difference between the Market Value and the carrying amount of the assets and liabilities of Quantum X Labs Inc. as of the date of the Deconsolidation of Quantum X Labs Inc. was recognized as other income in the Company's statement of comprehensive income for the year ended December 31, 2025.

**D. Unaudited Pro Forma:** 

The unaudited pro forma condensed combined statements of comprehensive income for the year ended December 31, 2025 is based on the individual historical statements of comprehensive income of the Company and historical statements of operations of Deliverez prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and has been prepared to depict the adjustments made in the historical financial statements of the Company for the year ended December 31, 2025 to reflect the accounting of:, (1) the Acquisition of Deliverz (which was completed on July 10, 2025) (2) the deconsolidation of Quantum X Labs Inc. (which was completed on September 25, 2025), and (3) for the period presented, the application of the equity method accounting for 26.42% interest in Quantum X Labs Inc. as if adjustments were made on January 1, 2025. The unaudited pro forma condensed combined financial information were prepared in accordance with Article 11 of the U.S. Securities and Exchange Commission, or the SEC, Regulation S-X.

The unaudited pro forma condensed combined financial information is derived from and should be read in conjunction with the Company's historical financial statements as of and for the year ended December 31, 2025 and the historical financial statements of Deliverz for the year ended December 31, 2025. Since the Company's consolidated financial statements as of December 31, 2025, already reflect the consolidation of Deliverz the Deconsolidation of Quantum X Labs Inc. and the investment in 26.42% interest in Quantum X Labs Inc., the unaudited pro forma condensed combined balance sheet as of December 31, 2025, have not been included in this unaudited pro forma condensed combined financial information.

The unaudited pro forma combined condensed financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have resulted had adjustments reflecting the accounting of the Acquisitions of Deliverz and the deconsolidation of Quantum X Labs Inc. and for the period presented, the application of the equity method accounting for the 26.42% interest in Quantum X Labs Inc. as described above been made at the dates indicated, nor is it necessarily indicative of the results of operations which may be realized in the future. Furthermore, the unaudited pro forma combined condensed financial information does not give effect to the potential impact of current financial conditions, regulatory matters, operating efficiencies or other savings or expenses that may be associated with the integration of the Company and Deliverz.

**UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF COMPREHENSIVE INCOME** 

**For year ended December 31, 2025**

**(U.S. dollars in thousands)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Gix Internet** | **Deliverz** | **Deconsolidation of Quantum X Labs Inc.** | **Deliverz's** <br> **Acquisition Adjustments** | **Pro <br> Forma** |
| **Revenues** | $7744 |  | (7731) |  | 13 |
| **Costs and expenses:** |  |  |  |  |  |
| Traffic-acquisition and related costs | 6336 |  | (6336) |  |  |
| Research and development | 825 | 243 | (387) |  | 681 |
| Selling and marketing | 600 | 30 | (579) |  | 51 |
| General and administrative | 2297 | 45 | (1448) |  | 894 |
| Depreciation and amortization | 1170 |  | (1006) | 159 | 323 |
| Goodwill impairment | 6105 |  | (6105) |  |  |
| Other expenses, net | 1327 | - | (688) | - | 639 |
| **Operating income (loss)** | (10916) | (318) | (8818) | (159) | (2575) |
| Equity loss | (158) |  | (5258) |  | (5416) |
| Gain from deconsolidation of Quantum X Labs Inc. | 6731 |  | (6731) |  |  |
| Finance expenses, net | 11536 | 10 | (11193) | - | 353 |
| **Income (loss) before income taxes** | (15879) | (328) | (8022) | (159) | (8345) |
| Income tax expenses (benefit) | (145) | - | 108 | (37) | (74) |
| **Net loss** | (15734) | (328) | (7914) | (123) | (8271) |
| Net loss per share – Basic and diluted attributed to shareholders: | (1.91) | (0.19) | (2.60) | (0.07) | (4.76) |
| Weighted-average number of shares used in computing net loss per share, basic and diluted | 1735947 | 1735947 | 1735947 | 1735947 | 1735947 |

---

**Notes to Unaudited Pro Forma Condensed Combined Consolidated Financial Information**

***Note 1 - Basis of presentation***

The unaudited pro forma condensed combined statements of comprehensive income for the year ended December 31, 2025, depicts adjustments made in the historical financial statements of the Company as of and for the year ended December 31, 2025 to reflect the accounting for the Acquisition of Deliverz (which was completed on July 10, 2025), the deconsolidation of Quantum X Labs Inc. (which was completed on September 25, 2025), and for the period presented, the application of the equity method accounting for the 26.42% interest in Quantum X Labs Inc. as if those adjustments were made on January 1, 2025.

The unaudited pro forma condensed combined financial information herein has been prepared to illustrate the effects of the accounting for the Acquisition of Deliverz, deconsolidation of Quantum X Labs Inc. and the application of the equity method accounting for the 26.42% interest in Quantum X Labs Inc.in accordance with U.S. GAAP.

The unaudited pro forma condensed combined statements of comprehensive income for the year ended December 31, 2025, have been prepared using, and should be read in conjunction with, the following:

● The Company's consolidated statements of comprehensive income for the year ended December 31, 2025 and the related notes; and

● Deliverz's statements of operations for the six months ended June 30, 2025 and for year ended December 31, 2024, and the related notes.

Information has been prepared based on these preliminary estimates, and the final amounts recorded may differ materially from the information presented. The unaudited pro forma condensed combined financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings, or cost savings that may be associated with the Acquisition.

Management has made significant estimates and assumptions in its determination of the transaction accounting adjustments. The transaction accounting adjustments reflecting the consummation of the pro forma events described above are based on certain currently available information and certain assumptions and methodologies that the Company believes are reasonable under the circumstances. The transaction accounting adjustments, which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the transaction accounting adjustments reflected herein. The Company believes that these assumptions and methodologies provide a reasonable basis for presenting all of the significant effects of the pro forma events based on information available to management at the time of the preparation of the unaudited pro forma condensed combined financial information and that the transaction accounting adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial information.

The unaudited pro forma condensed combined financial information is presented solely for informational purposes and is not necessarily indicative of the combined results of operations that might have been achieved for the periods presented, nor is it necessarily indicative of the future results of the combined company.

The unaudited pro forma condensed combined financial information does not necessarily reflect what the combined company's financial condition or results of operations would have been had the transactions occurred on the dates indicated. The unaudited pro forma condensed combined financial information also may not be useful in predicting the future financial condition and results of operations of the combined company. The actual results of operations may differ from the pro forma amounts reflected herein due to a variety of factors.

**Notes to Unaudited Pro Forma Condensed Combined Consolidated Financial Information**

***Note 2 - Adjustments to Unaudited Pro Forma Condensed Combined Financial Information***

The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X as amended by Release No. 33-10786 "Amendments to Financial Disclosures about Acquired and Disposed Businesses." Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the transaction, or Transaction Accounting Adjustments, and present the reasonably estimable synergies and other transaction effects that have occurred or are reasonably expected to occur, or Management's Adjustments. The Company has elected not to present Management's Adjustments and will only be presenting Transaction Accounting Adjustments in the unaudited pro forma condensed combined financial information.

The unaudited pro forma combined provision for income taxes does not necessarily reflect the amounts that would have resulted had the combined company following consummation of the pro forma events filed consolidated income tax returns during the periods presented.

***Note 3 - Transaction Accounting Adjustments***

The following describes the transaction accounting adjustments related to the adjustments made to reflect the accounting for the Acquisition of Deliverz, that have been made in the accompanying unaudited pro forma condensed combined statements of comprehensive income for the year ended December 31, 2025, as if those adjustments were made on January 1, 2025, all of which are based on preliminary estimates that could change significantly as additional information is obtained:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The preliminary allocation of consideration transferred is as follows (in thousand):

---

| | | |
|:---|:---|:---|
| Stock consideration in Company's shares |  | 2828 |
| Contingent consideration in Company's shares |  | 1853 |
| Total consideration transferred |  | $4681 |
| Net acquired tangible assets |  | (551) |
| Excess purchase price |  | 5232 |
| Fair value adjustments: |  |  |
| Intangible asset – Technology | 3138 |  |
| Deferred tax liabilities | (732) |  |
| Total fair value adjustments |  | 2451 |
| Goodwill |  | 2781 |

---

A portion of consideration transferred of $2,828 thousand equal to 518,770 of the Company's ordinary shares which were allocated to the Deliverz's Shareholders at the Closing Date.

Contingent consideration of $1,853 thousand represents the estimated fair value of the Company's ordinary shares contingent payments the Company has agreed to pay to Deliverz's Shareholders, contingent upon the achievement of certain milestones during the 4-year period following the Closing Date.

The transaction accounting adjustments give effect to the forward acquisition accounting, and specifically:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to
 recognize $3,138 thousand of Deliverz's identified intangible assets comprised of technology with a 10-year useful life which
 included amortization expense of $318 during the year ended December 31, 2025.

(2) to
 recognize $732 thousand of Deliverz's deferred tax liabilities associated with the identified intangible asset which included
 tax benefit of $73 during the year ended December 31, 2025.

(3) to
 recognize Deliverz's goodwill of $2,781 thousand.

## Exhibit 1.1

**Exhibit 1.1**

**Articles of Association**

**Pursuant to the Companies Law, 5759-1999 of a Company Limited by Shares**

**Gix Internet LTD.**

---

| | |
|:---|:---|
| **Section** | **Page** |
| Interpretation | 2 |
| Name of the Company | 3 |
| Objects of the Company | 3 |
| Purpose of the Company | 3 |
| Registered Share Capital | 3 |
| Liability of Shareholders | 4 |
| Public Company | 4 |
| Shares | 4 |
| Share Certificate; Share Warrant | 5 |
| Calls for Payment | 6 |
| Forfeiture and Lien on Shares | 7 |
| Transfer and Delivery of Shares | 9 |
| Redeemable Shares | 11 |
| Alteration of Capital | 11 |
| General Meetings | 12 |
| Adoption of Resolutions at General Meetings | 14 |
| Voting of Shareholders | 15 |
| Voting Rights | 16 |

---

---

| | |
|:---|:---|
| **Section** | **Page** |
| The Board of Directors | 17 |
| Powers of the Board of Directors | 20 |
| Meetings of the Board of Directors | 20 |
| Committees of the Board of Directors | 22 |
| Minutes | 23 |
| The General Manager | 24 |
| Local Managements | 25 |
| Register of Shareholders | 25 |
| Office Holders | 26 |
| Distribution | 26 |
| The Internal Auditor | 27 |
| The Auditing Accountant | 28 |
| Transactions Requiring Special Approvals | 28 |
| Merger | 28 |
| Notices | 28 |
| Winding-Up of the Company | 29 |
| Exemption from Liability | 30 |
| Liability Insurance | 30 |
| Indemnification | 31 |
| Binding the Company | 32 |
| Amendment of the Articles of Association | 32 |

---

1. **Interpretation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 In these Articles of Association, unless the context requires otherwise, the following words and expressions shall have the meanings set forth below:

\*\*"The Stock Exchange"\*\* - The Tel Aviv Stock Exchange Ltd.

\*\*"The Board of Directors"\*\* - The Board of Directors duly elected in accordance with the provisions of these Articles of Association.

\*\*"Director"\*\* - A member of the Board of Directors of the Company and anyone who serves in practice as a director, whatever his title may be.

\*\*"Administrative Proceeding"\*\* - A proceeding pursuant to Chapters H'3 (Imposition of a Financial Sanction by the Securities Authority), H'4 (Imposition of Administrative Enforcement Measures by the Administrative Enforcement Committee) or I'1 (Arrangement for Avoidance or Discontinuation of Proceedings, Subject to Conditions) of the Securities Law, 5729-1969, as may be amended from time to time.

\*\*"Enforcement Streamlining Law"\*\* - The Enforcement Streamlining in the Securities Authority (Legislative Amendments) Law, 5771-2011, as may be updated from time to time.

\*\*"The Securities Law"\*\* - The Securities Law, 5728-1968, as may be amended from time to time, and the regulations promulgated thereunder.

\*\*"The Companies Law"\*\* - The Companies Law, 5759-1999, as may be amended from time to time, and the regulations promulgated or to be promulgated thereunder.

\*\*"The Law"\*\* - The Companies Law, the Securities Law and any valid law in connection with companies, applicable to the Company at that time.

\*\*"The Company"\*\* - The Company mentioned above.

\*\*"The Register"\*\* - The register of shareholders to be maintained in accordance with Section 127 of the Companies Law, the register of substantial shareholders to be maintained in accordance with Section 128 of the Companies Law, and if the Company shall maintain an additional register outside of Israel, any additional register, as the case may be.

\*\*"The Office"\*\* - The registered office of the Company as it may be at that time.

\*\*"In Writing"\*\* - Print, lithography, photography, telegram, telex, facsimile, electronic mail, and any other form of creating or imprinting words in a visible form.

\*\*"Securities"\*\* - Including, shares, debentures, capital notes, certificates and other documents conferring a right to sell, convert or sell to such.

\*\*"The Companies Ordinance"\*\* - The Companies Ordinance [New Version], 5743-1983, as may be amended from time to time.

\*\*"The Articles"\*\* - The Articles of Association of the Company as formulated herein or as may be amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The provisions of Sections 2, 3, 4, 5, 6, 7, 8, 10 of the Interpretation Law, 5741-1981, shall apply, *mutatis mutandis*, also to the interpretation of the Articles, if there is no other provision regarding the matter in question and if there is nothing in the matter in question or in its context that is inconsistent with such application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Except as stated in this section, every word and expression in the Articles shall have the meaning ascribed to them in the Companies Law, unless there is a contradiction to the subject matter or its content.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Subject to the provisions of this regulation, in these Articles - unless the context requires otherwise, terms defined in the Companies Law shall have the meanings given to them therein; and words in the singular shall include the plural and vice versa, and words in the masculine gender shall include the feminine, and words meaning persons shall also include corporations.

2. **Name of the Company** 

The name of the Company is as follows:

In Hebrew: **גיקס אינטרנט בע"מ**

In English: **Gix Internet LTD.**

3. **Objects of the Company** 

To engage in any lawful occupation.

4. **Purpose of the Company** 

The purpose of the Company is to act according to business considerations to maximize its profits, however, the Company may donate a reasonable amount for a worthy cause, even if the donation is not within the framework of such business considerations, and at the discretion of the Company's Board of Directors.

5. **Registered Share Capital** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The registered share capital of the Company is 100,000,000 (one hundred million) ordinary shares of no par value (hereinafter: "**Share**", "**Ordinary Share**", "**Shares**" or "**Ordinary Shares**", as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 All Ordinary Shares shall be of equal rights among themselves for all intents and purposes, and each Ordinary Share shall grant its holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The right to be invited and to participate in all general meetings of the Company, both annual and ordinary, and the right to one vote for each Ordinary Share held by it, in every vote, at every general meeting of the Company in which it participated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The right to receive dividends, if and when distributed, and the right to receive bonus shares, if distributed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The right to participate in the distribution of the Company's assets upon its winding-up.

6. **Liability of Shareholders** 

The liability of the holders of Ordinary Shares is limited such that each holder of Ordinary Shares is liable for the payment of the amount not yet paid by him, if any, to the Company in connection with the allotment of the Ordinary Shares held by him.

7. **Public Company** 

The Company is a public company.

8. **Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Without prejudice to the special rights previously granted to existing shareholders of the Company, the Company may issue shares with preferred rights or with deferred rights or issue from the unissued capital redeemable securities, subject to Section 309A of the Companies Law, or issue shares with other special limited rights or with restrictions in connection with the distribution of dividends, voting rights, or in connection with other matters, as the Company shall determine from time to time by a resolution adopted at a general meeting by an ordinary majority of the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 If at any time the share capital is divided into different classes of shares, the Company may, by a resolution adopted at a general meeting, by an ordinary majority of the votes of the shareholders, unless the terms of issue of that class of shares provide otherwise, convert, extend, add to or otherwise vary the rights, privileges, advantages, restrictions and provisions attached or not attached at that time to any of the classes, or as shall be determined by a resolution adopted at a general meeting by an ordinary majority of the votes of the shareholders of that class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 The special rights conferred upon the holders of shares or a class of shares that have been issued, including shares with preferred rights or other special rights, shall not be deemed to be varied by the creation or issue of additional shares ranking *pari passu* therewith, unless otherwise provided in the terms of allotment of those shares.

The provisions in these regulations concerning general meetings shall apply, \*mutatis mutandis\*, to any such class meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 The unissued shares of the Company shall be under the control of the Board of Directors, which may allot them up to the limit of the registered share capital of the Company, to such persons, for cash or for other non-cash consideration, with such reservations and conditions, and at such times as the Board of Directors shall deem appropriate, and the Board of Directors shall have the authority to make a call for payment on any such shares to any person, during such time and for such consideration and conditions as the Board of Directors shall deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 Upon the allotment of shares, the Board of Directors may make distinctions between shareholders with respect to the amounts of the calls for payment and/or the times of their payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 If, according to the terms of allotment of any share, the payment of the consideration for the share, in whole or in part, is to be in installments, then each such installment shall be paid to the Company at its due date by the person who is the registered owner of the shares at that time or by his guardian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 The Company may at any time pay a commission to any person for his role as an underwriter or his agreement to act as an underwriter, whether unconditionally or conditionally, for any security, including debenture stock of the Company, or for his agreement to underwrite, whether unconditionally or conditionally, any security, debenture or debenture stock of the Company. In each and every case, the commission may be paid or settled in cash or in securities or in debentures or in debenture stock of the Company.

9. **Share Certificate; Share Warrant** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Subject to and in accordance with the provisions of the Companies Law, a share certificate shall bear the seal or stamp of the Company, together with the signatures of two directors, or as the Board of Directors of the Company shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Every shareholder registered in the register of shareholders is entitled to receive one share certificate for the shares registered in his name, or if the Board of Directors shall approve (after he pays the amount which the Board of Directors shall determine from time to time), several share certificates, each for one or more of such shares; each share certificate shall state the number of shares for which it was issued and the serial numbers of the shares.

A share certificate registered in the names of two or more persons shall be delivered to the person whose name appears first in the register of shareholders among the names of the joint owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 (a) The Company may deliver a share warrant for shares for which the full consideration has been paid to the Company, which shall grant the holder thereof the rights to the shares specified therein and the right to transfer it by delivery of the share, and the provisions of these Articles of Association concerning the transfer of shares shall not apply to shares specified in such a share warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A shareholder who lawfully holds a share warrant is entitled to return it to the Company for its cancellation and conversion into a registered share in his name; and is entitled, for a fee to be determined by the Board of Directors, to have his name registered in the register of shareholders for the shares specified in the share warrant, and to be issued a share certificate in his name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The holder of a share warrant may deposit the share warrant at the Office, and as long as it is deposited there, the depositor shall have the right to demand the convening of a meeting of the Company, in accordance with and subject to the provisions of the Companies Law and these Articles of Association, to be present thereat, to vote and to exercise the other rights of a shareholder at any meeting convened upon his demand as aforesaid 30 days after the deposit, as if his name were registered in the register of shareholders as the owner of the shares included in the share warrant. Only one person shall be recognized as the depositor of the share, and the Company must return the share warrant to the depositor if he so requests in writing 30 days in advance.

If the share warrant is not deposited as aforesaid, the holder thereof shall not have the rights detailed in this sub-regulation (c), and he shall have, subject to the provisions of these Articles of Association, all other rights granted to a shareholder in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 If a share certificate or a share warrant is lost or defaced, the Board of Directors may issue a new certificate or warrant in its place, provided that the certificate or warrant has not been cancelled by the Company, or it has been proven to the satisfaction of the Board of Directors that the certificate or warrant was lost or destroyed, and it has received security to its satisfaction for any possible damage, all for a payment, if the Board of Directors decides to impose one.

10. **Calls for Payment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 The Board of Directors may, from time to time, at its discretion, make calls upon the shareholders for payment of all monies not yet paid in respect of the shares held by each of the shareholders, and which, according to the terms of allotment of the shares, are not to be paid at fixed times, and each shareholder shall pay to the Company the amount of the call made upon him, at the time and place as determined by the Board of Directors. A call for payment may be by dividing the payment into installments. The date of the call for payment shall be the date of the Board of Directors' resolution regarding the call for payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Fourteen (14) days' prior notice shall be given of every call for payment, which shall specify the rate of payment and the place of its payment, provided that before the time of payment of such a call, the Board of Directors may, by notice in writing to the shareholders, cancel the call or extend the time for its payment, provided that such a resolution was adopted before the time of payment of the call.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Joint owners of a share shall be jointly liable for the payment of all installments and calls for payment due in respect of such a share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 If, according to the terms of allotment of any share or otherwise, any amount is to be paid on a fixed date or in installments on fixed dates, then each such amount or installment shall be paid as if it were a call for payment duly made by the Board of Directors and of which due notice was given, and all the provisions in these Articles of Association concerning calls for payment shall apply to such amount or installment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 If the amount of the call for payment or the installment is not paid on or before its due date, the person who is at that time the owner of the share in respect of which the call was made or on which the installment is due, shall pay interest on the aforesaid amount, at the rate that the Board of Directors shall determine from time to time, or at the rate permitted at that time by law, from the day fixed for its payment until the day it is actually paid, but the Board of Directors may waive the payment of interest, in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 If the Board of Directors shall deem it fit, it may accept from a shareholder who wishes to pay in advance monies not yet called or whose payment date has not yet arrived and which have not yet been paid on account of his shares, or part thereof. The Board of Directors may pay the shareholder on the monies advanced as aforesaid, or on part thereof, interest until the day on which the monies should have been paid had they not been advanced, at a rate to be agreed upon between the Board of Directors and the shareholder.

11. **Forfeiture and Lien on Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 If a shareholder has not paid the consideration he undertook to pay, in whole or in part, on the date and under the conditions determined, whether a call for payment was issued or not, the Board of Directors may at any time give notice to that shareholder and demand that he pay the unpaid amount, together with the accrued interest and all expenses incurred by the Company due to such non-payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 The notice shall set a day, which shall be at least fourteen (14) days after the date of the notice, and a place or places where the said call for payment or installment is to be paid, together with the interest and expenses as aforesaid. The notice shall state that in the event of non-payment on the fixed date and at the place specified in that notice, the Company may forfeit the shares in respect of which the call for payment was made or the due date of the installment has arrived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 If the requirements contained in the notice as aforesaid are not fulfilled, then at any time thereafter, before payment of the call for payment or the installment, interest and expenses due in connection with these shares, the Board of Directors may, by a resolution on the matter, forfeit the shares in respect of which notice was given as aforesaid. Such forfeiture shall include all dividends declared in respect of the forfeited shares and which were not actually paid before the forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 Any share so forfeited shall be deemed the property of the Company, and the Board of Directors shall be entitled, subject to the provisions of these Articles of Association, to sell, re-allot or otherwise transfer it as it shall deem fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 Forfeited shares that have not yet been sold shall be dormant shares in accordance with the Companies Law, and they shall not confer any rights whatsoever as long as they are owned by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 The Board of Directors may at any time before the sale, re-allotment or other transfer of any share so forfeited, cancel the forfeiture on such terms as the Board of Directors shall deem fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any shareholder whose shares have been forfeited shall cease to be the owner of the shares so forfeited, but he shall continue to be indebted to the Company for all calls for payment, installments, interest and expenses due on account of these shares or for them at the time of forfeiture, together with interest on those amounts from the day of forfeiture until the day of payment, at the maximum rate that shall be permitted at that time by law, unless the forfeited shares were sold and the Company received the full consideration that the shareholder undertook to pay, plus the expenses associated with the sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the consideration received for the sale of the forfeited shares exceeds the consideration that the shareholder whose shares were forfeited undertook to pay, the shareholder is entitled to the return of the partial consideration he gave for them, if any, subject to the provisions of the allotment agreement, provided that the consideration remaining with the Company shall not be less than the full consideration that the shareholder whose shares were forfeited undertook to pay, plus the expenses associated with the sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 The provisions of these Articles of Association regarding the forfeiture of shares shall also apply to cases of non-payment of a known sum which, according to the terms of allotment of the share, is due on a fixed date, as if this sum were to be paid by virtue of a call for payment that was delivered and notified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 The Company shall have a first-ranking lien on all shares registered in the name of any shareholder, except for fully paid-up shares, and on the proceeds from their sale for the settlement of the debts and obligations of that shareholder to the Company, whether by himself or together with any other person, whether the due date for the settlement of these debts or the due date for the fulfillment of these obligations has arrived or not, whatever the sources of the debts may be, and no equitable rights shall be created on any share. The aforesaid lien and charge shall apply to all dividends which may be declared from time to time on these shares. Unless otherwise decided, the registration by the Company of a transfer of shares shall be deemed a waiver by the Company of the lien or charge (if any) on the shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 In order to realize the aforesaid lien, the Board of Directors shall be entitled to sell the charged shares in such manner as it shall see fit, at its discretion; however, no share may be sold unless the period specified in regulation 11.2 above has passed, and a notice in writing has been delivered to the shareholder (or to the person entitled to it due to his death or due to his bankruptcy or winding-up or receivership) stating that the Company intends to sell the share, and the shareholder or the person entitled to the share as aforesaid has not paid the aforesaid debts or has not fulfilled or has not performed the aforesaid obligations within fourteen (14) days from the date of sending this notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 The proceeds from any such sale, after settlement of the sale expenses, shall be used to settle the debts and fulfill the obligations of such shareholder (including debts, obligations and engagements whose settlement or performance date has not yet arrived) and the provisions of regulation 11.6(b) shall apply, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 In the event of a sale after forfeiture or for the purpose of enforcing a lien by using the powers granted above, the Board of Directors shall be entitled to appoint a person to sign a deed of transfer of the sold share and to register the purchaser in the register of shareholders as the owner of the sold shares, and the purchaser shall not be obliged to verify that these actions were properly carried out, and it shall not be his concern what the sale proceeds were used for, and after his name is registered in the register of shareholders in respect of these shares, the validity of the sale shall not be challenged, and the remedy of any person aggrieved by the sale shall be only in a claim for damages from the Company and from it alone.

12. **Transfer and Delivery of Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 A transfer of shares shall not be registered unless a suitable deed of transfer has been delivered to the Company. A deed of transfer of a share in the Company shall be signed by the transferor and the transferee, and the transferor shall be deemed to remain the owner of the share until the name of the transferee is registered in the register of shareholders in respect of the transferred share.

The deed of transfer of a share shall be drawn up and completed in the following form or in a form as similar thereto as possible or in a regular or customary form that shall be approved by the Board of Directors:

\*\*"I _______________ , of _________________ ("the Transferor"), for the consideration of the sum of NIS _______ paid to me by _____________ of _______________ ("the Transferee") hereby transfer to the Transferee _________ shares of _________ of NIS ________ each, marked with the numbers up to _____ and inclusive, of _________ Ltd., to be held by the Transferee, his executors, administrators, and assigns, subject to all the conditions under which I held them on the eve of signing this deed, and I, the Transferee, hereby agree to accept the said shares subject to the said conditions."\*\*

---

| | | |
|:---|:---|:---|
| \*\*In witness whereof we have signed on the ____ day of the month of _____ in the year _______.\*\* | \*\*In witness whereof we have signed on the ____ day of the month of _____ in the year _______.\*\* | \*\*In witness whereof we have signed on the ____ day of the month of _____ in the year _______.\*\* |
| \*\*_____________________ | _____________________\*\* |  |
| \*\* The Transferor | The Transferee\*\* |  |
| \*\*_____________________ | _____________________\*\* |  |
| \*\* Witness to the Transferor's signature | Witness to the Transferee's signature" | \*\* |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 The Company may close the register of shareholders for such time as the Board of Directors may deem fit, provided that it does not exceed thirty (30) days in any year. The Company shall notify the shareholders of the closing of the register of shareholders in accordance with the provisions of these Articles of Association regarding the delivery of notices to shareholders. The Company may set a record date for the purpose of the right to receive invitations to general meetings, to participate and vote therein, and also for the purpose of the right to receive a dividend, provided that this date does not exceed 7 days before the date set for holding the general meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 (a) Every deed of transfer shall be delivered to the Office for registration. Deeds of transfer that are registered shall remain with the Company, but all deeds of transfer which the Board of Directors refuses to register shall be returned upon demand to the person who delivered them, together with the share certificate (if delivered).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may demand payment of a fee for the registration of the transfer, which shall be determined by the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 The guardians and executors of a deceased sole shareholder, or, where there are no executors or guardians, the persons who are entitled as heirs of the deceased sole shareholder, shall be the only ones whom the Company shall recognize as having a right to the share that was registered in the name of the deceased.

If a share is registered in the name of two or more owners, the Company shall recognize only the surviving partner or surviving partners as the persons who have the right to the share or a beneficial interest in it. If a share is registered in the name of several joint owners as aforesaid, each of them shall be entitled to transfer his right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 The Company may recognize a receiver or a liquidator of a shareholder that is a corporation in liquidation or winding-up or a trustee in bankruptcy or any receiver of a bankrupt shareholder as having a right to the shares registered in the name of such shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 Any person who becomes entitled to shares due to the death of a shareholder shall be entitled, upon showing proof of the existence of a will or the appointment of a guardian or the granting of a probate order, which proves that he has the right to the shares of the deceased shareholder, to be registered as a shareholder in respect of such shares, or may, subject to the provisions of these Articles of Association, transfer those shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7 The receiver or liquidator of a shareholder that is a corporation in liquidation or winding-up, or the trustee in bankruptcy or any receiver of a bankrupt shareholder, may, after having produced such evidence as the Board of Directors may require of him, which proves that he has the right to the shares of the shareholder in liquidation or winding-up or in bankruptcy, with the consent of the Board of Directors (and the Board of Directors shall be entitled to refuse to give its consent without giving any reason for its refusal) be registered as a shareholder in respect of such shares, or may, subject to the provisions of these Articles of Association, transfer those shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8 All of the above regarding the transfer of shares shall apply to the transfer of other securities of the Company, *mutatis mutandis*.

13. **Redeemable Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 The right to redemption is limited to the case of the winding-up of the Company after payment of all the Company's liabilities to its creditors at the time of the winding-up.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 Redeemable shares shall grant their holders the rights detailed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Rights to participate in dividends.

14. **Alteration of Capital** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 The Company may from time to time, by a resolution of the general meeting adopted by an ordinary majority of the votes of the shareholders, increase its registered share capital by such classes of shares as it shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 Unless otherwise stated in the resolution approving the increase of the share capital as aforesaid, the provisions of these Articles of Association shall apply to the new shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 By a resolution of the general meeting adopted by an ordinary majority of the votes of the shareholders, the Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consolidate and re-divide its share capital into shares of a larger par value than the par value of the existing shares, and if its shares were of no par value - into a capital composed of a smaller number of shares, provided that this shall not change the holding percentages of the shareholders in the issued capital.

For the purpose of implementing any such resolution, the Board of Directors may settle as it sees fit any difficulty that may arise, and among other things, issue certificates of fractional shares or certificates in the names of several shareholders that shall include the fractional shares due to them.

Without derogating from the authority of the Board of Directors as aforesaid, in the event that as a result of the consolidation there are shareholders whose share consolidation leaves fractions, the Board of Directors shall be entitled, with the approval of the general meeting adopted by an ordinary majority of the votes of the shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To sell the total of all fractions and for this purpose to appoint a trustee in whose name the share certificates including the fractions will be issued, who will sell them and the proceeds received, net of commissions and expenses, will be distributed to those entitled; or -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To allot to each shareholder for whom the consolidation leaves a fraction, shares of the class of shares before the consolidation, fully paid, in such number that their consolidation with the fraction will be sufficient for one whole consolidated share, and such allotment shall be considered valid immediately before the consolidation; or -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To determine that shareholders shall not be entitled to receive a consolidated share for a fraction of a consolidated share, resulting from the consolidation of half or less of the number of shares whose consolidation creates one consolidated share, and shall be entitled to receive a consolidated share for a fraction of a consolidated share resulting from the consolidation of more than half of the number of shares whose consolidation creates one consolidated share;

In the event that an action under paragraphs (2) or (3) above requires the issuance of additional shares, then their payment shall be made in the manner in which bonus shares can be paid. Consolidation and division as aforesaid shall not be considered a change in the rights of the shares subject to the consolidation and division.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Divide by re-division of its existing shares, all or part of them, its share capital, all or part of it, into shares of a smaller par value than the par value of the existing shares, and if its shares were of no par value - into an issued capital composed of a larger number of shares, provided that this shall not change the holding percentages of the shareholders in the issued capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Cancel registered share capital that on the day of the adoption of the resolution has not yet been allotted, provided that there is no commitment of the Company, including a contingent commitment, to allot the shares.

15. **General Meetings** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 In addition to the resolutions which the general meeting is authorized to adopt, and which are detailed in these Articles of Association and/or in the Companies Law, the Company's resolutions on the following matters shall be adopted at a general meeting by an ordinary majority of the votes of the participating shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Amendment of these Articles of Association as stated in regulation 39 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Exercise of the powers of the Board of Directors in the event that the meeting has determined that the Board of Directors is prevented from exercising its powers, and that the exercise of one of its powers is essential for the proper management of the Company as stated in Section 52(a) of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Appointment of the Company's auditing accountant, determination of his terms of engagement and termination of his engagement in accordance with the provisions of Sections 154 to 167 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Approval of acts and transactions requiring the approval of the general meeting according to the provisions of Sections 255, 270(1)-(3), 271 to 273 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Increase and cancellation of the registered share capital in accordance with the provisions of Sections 286 and 287 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Merger as stated in Section 320(a) of the Companies Law and subject to Section 320(a1) of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 The general meeting may assume powers vested in another organ.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 The Company shall hold an annual meeting each year and no later than the end of fifteen (15) months after the last annual meeting. A general meeting that is not an annual meeting shall be a special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 The agenda at the annual meeting shall include the subjects listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Discussion of the audited financial statements of the Company, together with the report of the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Appointment of directors as stated in regulation 19.1 and determination of their remuneration as directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Appointment of an auditing accountant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Subjects that the Board of Directors has decided to bring for the resolution of the general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Subjects for which the convening of a special meeting is required according to Section 63 of the Companies Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Subjects requested from the Board of Directors by one or more shareholders holding at least five (5) percent of the issued capital and at least one (1) percent of the voting rights in the Company or one or more shareholders holding at least five (5) percent of the voting rights in the Company, provided that they are suitable for discussion at a general meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 Whenever the Board of Directors shall deem it fit, it may convene a special meeting by its resolution, and special meetings shall also be convened upon demand as stated in the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6 Notice of a general meeting on whose agenda there are no subjects which can be voted on by means of voting instruments as stated in Section 87 of the Companies Law shall be published at least fourteen (14) days before the convening of the meeting, while a notice on whose agenda there are such subjects shall be published at least twenty-one (21) days before the convening of the meeting. The notice shall be published in at least two daily newspapers with wide circulation in Israel, published in the Hebrew language. In any case, notice shall not be delivered to each of the shareholders registered in the Company's register of shareholders.

The notice shall specify the type of meeting, the place and time of the meeting, a breakdown of the subjects on the agenda, a summary of the proposed resolutions, the majority required to adopt the resolutions, and also the date for determining the eligibility of all shareholders to vote at the general meeting, as stated in Section 182 of the Companies Law. If a date for an adjourned meeting is set for a date later than that specified in Section 78(b) of the Companies Law, i.e., more than seven (7) days, that date shall be specified in the notice.

16. **Adoption of Resolutions at General Meetings** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 No discussion shall be opened at a general meeting unless a legal quorum is present within half an hour from the time set for its opening. Except in cases where otherwise provided by the Companies Law or these Articles of Association, a legal quorum shall be constituted when there are present, in person or by proxy, at least two (2) shareholders holding together at least twenty-five percent (25%) of all the voting rights in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 If after half an hour from the time set for the meeting a legal quorum is not present, it shall be adjourned to the same day in the following week, at the same time and in the same place, or to a later date, if specified in the notice of the meeting, and at the adjourned meeting the matters for which the first meeting was called shall be discussed. If at the adjourned meeting a legal quorum is not present after half an hour from the time set for the meeting, then the meeting shall be held with any number of participants whatsoever.

If the general meeting was convened at the demand of shareholders, as stated in the Companies Law, the adjourned meeting shall be held only if there are present at it at least shareholders in the number required for convening a meeting as stated in Section 63 of the Companies Law, i.e.: one or more shareholders holding at least five (5) percent of the issued capital and at least one (1) percent of the voting rights in the Company, or one or more shareholders holding at least five (5) percent of the voting rights in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 The chairman of the Board of Directors shall preside at every general meeting. If there is no chairman or if he is not present after fifteen (15) minutes have passed from the time set for the meeting, or if he does not wish to serve as chairman of the meeting, the shareholders present at the meeting shall elect one of them to be chairman.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 The chairman of a general meeting may, with the consent of the meeting in which there is a legal quorum, adjourn the meeting from time to time and from place to place, and he must adjourn it as aforesaid if the meeting has instructed him to do so. At the adjourned meeting, only matters that were on the agenda and the discussion of which was not concluded or did not begin at the meeting where the adjournment was decided upon may be discussed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 Subject to the provisions of the Companies Law and the provisions of these Articles of Association requiring a supermajority of the shareholders, every proposed resolution submitted to the meeting shall be decided by an ordinary majority of the count of votes of the shareholders present and participating in it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6 The chairman of a general meeting shall not have an additional or casting vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7 The chairman's declaration that a resolution was adopted unanimously or by a certain majority or was rejected, and the minutes of the meeting signed by the chairman of the meeting, shall serve as prima facie evidence of what is stated in the minutes.

17. **Voting of Shareholders** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 Subject to any special conditions, privileges and restrictions regarding the voting of shareholders attached at that time to any shares, in a vote by a count of votes or by secret ballot, every shareholder, present in person or by proxy or by means of a voting instrument, shall have one vote for every share belonging to him and conferring a voting right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 A corporation that is a shareholder in the Company may authorize, by a resolution of its directors or other governing body, the power of such person as it shall deem fit to be its representative at any general meeting. A person authorized as aforesaid shall be entitled to exercise on behalf of the corporation he represents the same voting rights that the corporation itself could have exercised if it were a sole shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3 Subject to the provisions of the Companies Law, resolutions of the general meeting on the subjects listed below shall also be adopted by way of a voting instrument:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Appointments and dismissals of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Approval of acts or transactions requiring the approval of the general meeting according to the provisions of Sections 255 and 268 to 275 of the Companies Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Approval of a merger according to Section 320 of the Companies Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subjects determined by the Minister of Justice in regulations promulgated or to be promulgated by virtue of Section 89 of the Companies Law;

Subject to the provisions of the Companies Law, the voting instrument shall be deposited at the Office or at the place designated for the convening of the meeting not less than 48 hours before the time set for the beginning of the meeting at which the person named in the voting instrument is to vote. However, the chairman of the meeting may waive this requirement and accept the voting instrument at the beginning of the meeting.

18. **Voting Rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 A minor shareholder and a shareholder who has been declared legally incompetent by a competent court may vote only through their guardians, and any such guardian may vote by proxy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 In the case of joint owners of a share, the opinion of one of the joint owners, in person or by proxy, shall be accepted, and the opinion of the other partners shall not be accepted, and for this purpose, the partner whose opinion shall be heard shall be determined according to the order in which the names are registered in the register of shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 Shareholders may vote in person, by proxy, or in the case of a corporation - by a representative according to regulation 18.4 below, or by a duly authorized attorney, as shall be provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 Any document appointing a proxy to vote (hereinafter: "**instrument of appointment**") shall be signed by the appointor or by his attorneys who have written authority to do so, or, if the appointor is a corporation - the appointment shall be made in writing duly signed and with the seal of the corporation or the signature of its authorized attorney.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 The instrument of appointment and also the power of attorney (if any) under which the instrument of appointment was signed, or a copy thereof certified to the satisfaction of the Board of Directors, shall be deposited at the Office or at the place designated for the convening of the meeting not less than 48 hours before the time set for the beginning of the meeting at which the person named in the instrument of appointment is to vote. However, the chairman of the meeting may waive this requirement for all participants with respect to any meeting, and accept the powers of attorney at the beginning of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.6 A shareholder holding more than one share shall be entitled to appoint more than one proxy, subject to the provisions below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The instrument of appointment shall specify the class and the number of shares for which it is given;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the total number of shares of any class specified in the instruments of appointment given by one shareholder exceeds the number of shares of that class held by him, all instruments of appointment given by that shareholder for the excess shares shall be void, without prejudice to the validity of the vote for the shares held by him;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If only one proxy is appointed by a shareholder and the instrument of appointment does not specify the number and class of shares for which it is given, the instrument of appointment shall be deemed to have been given for all the shares held by the shareholder on the day the instrument of appointment was deposited with the Company or on the day it was delivered to the chairman of the meeting, as the case may be. If the instrument of appointment was given for a number of shares less than the number of shares held by the shareholder, the shareholder shall be deemed to have abstained from voting for the remainder of the shares held by him, and the instrument of appointment shall be valid only for the number of shares specified therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.7 Any instrument of appointment of a proxy, whether for a specifically mentioned meeting or otherwise, shall be, as far as circumstances permit, in the following form:

"I, ___________________ , of ____________________ , a shareholder in ________________ Ltd. (hereinafter: "\*\*the Company\*\*"), hereby appoint __________________ , whose identity number is ________________ , of ____________ , or in his/her absence - _____________ , whose identity number is ____________ , of _____________ , or in his/her absence - _______________ , whose identity number is ___________ , of _____________ , to vote for me and in my name for ____ shares of class _______ , held by me, at the Annual/Special General Meeting of the Company / at the meeting of the shareholders of class _______________ , to be held on the _____ day of the month of ___________ in the year _________ , and at any adjournment of this meeting.

In witness whereof I have signed on the __ day of the month of ___________ in the year _________.

Signature"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8 A vote in accordance with the provisions of a document appointing a proxy shall be valid notwithstanding the death of the appointor, or the revocation of the power of attorney or the transfer of the share in respect of which the vote was cast as aforesaid, unless notice in writing of the death, revocation or transfer was received at the Office or by the chairman of the meeting before the vote.

19. **The Board of Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 The number of members of the Company's Board of Directors shall not be less than five (5) and shall not exceed fifteen (15) (hereinafter: "**the Ordinary Directors**"), including the number of external directors whose appointment is required by law (hereinafter: "**the External Directors**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 (a) Directors in the Company shall be elected by a resolution adopted at an annual general meeting, where at each annual general meeting the Ordinary Directors shall be appointed, while the External Directors shall be appointed in accordance with the provisions of the Companies Law. The election of the members of the Board of Directors as aforesaid shall be made by the shareholders present at the meeting, in person or by their proxy, or, subject to the provisions of the Companies Law, by means of a voting instrument, by an ordinary majority of the votes of the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term of office of a director shall commence on the date of his appointment by the meeting as aforesaid. A director appointed as aforesaid by the general meeting shall serve until the end of the next annual meeting after the annual meeting at which he was appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding all of the above, the general meeting may at any time, by a resolution with an ordinary majority, remove from office any director, except for an external director, before the end of his term of office, provided that the director is given a reasonable opportunity to present his position before the general meeting. Any general meeting may also, by a resolution with an ordinary majority, appoint another person as a director in place of a director who was removed from office as aforesaid. A director so appointed shall serve in his position only for the term of office which the director he was appointed to replace would have served.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to the maximum number of directors as stated in regulation 19.1 above, the Board of Directors shall be entitled, by a resolution adopted in the Board of Directors by an ordinary majority of the serving directors who were present at the meeting (not including abstaining directors), to appoint additional directors in the Company. If a director is appointed as stated in this regulation, the appointment shall be brought to the knowledge of the shareholders, by way of a notice given by the Company. The appointment shall be valid until its approval at the next annual general meeting to be convened for the first time after the appointment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3 (a) A director is entitled at any time to appoint a person to serve as his alternate director on the Board of Directors, subject to the provisions of the Companies Law (hereinafter: "**Alternate Director**"). A person who is not qualified to be appointed as a director and also a person who serves as a director or as an alternate director shall not be appointed as an alternate director. As long as the appointment of the Alternate Director is in effect, he shall be entitled to receive invitations to every meeting of the Board of Directors (without derogating from the right of the director to receive invitations) and to participate and vote at every meeting of the Board of Directors from which the appointing director is absent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Alternate Director shall have, subject to the provisions of the instrument of appointment under which he was appointed, all the powers that the director for whom he serves as an alternate has, and his status shall be that of a director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4 (a) A director who has appointed an Alternate Director shall be entitled at any time to revoke the appointment. The term of office of an Alternate Director shall cease if the director who appointed him has notified the Company in writing of his resignation or if his term of office as a director has ceased in any other way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any appointment of an Alternate Director and revocation of his appointment shall be made by notice in writing to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5 A director who has ceased to serve in his office may be reappointed, but in the event that his term of office expired because he was convicted of an offense as detailed in regulation 19.6(c) below, he may be reappointed only if five (5) years have passed from the date of the judgment in which he was convicted, as stated in Section 226 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.6 The office of a director shall become vacant automatically in any of the following cases:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If he has resigned from his office as stated in Section 229 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If he has been convicted of an offense as stated in Section 232 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the court has decided to order the termination of his term of office as stated in Section 233 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If he has been declared bankrupt, and if he is a corporation - has decided on its voluntary winding-up or a winding-up order has been issued against it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon his death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If he has become legally incompetent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.7 If in place of a director whose term of office has ended, another director is not appointed at the annual general meeting, then the term of office of the director whose term of office has ended shall be appointed for an additional term, or if despite the above a director is not appointed or the office of a director becomes vacant, the remaining directors shall be entitled to act in any matter, as long as their number is not less than three members. The remaining directors are also entitled to appoint a director, in place of a director whose term of office has ended or expired, who shall serve until the next annual general meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.8 Directors shall not receive remuneration from the Company's funds unless the Company so decides as provided in Sections 270(3) and 273 of the Companies Law. A director is entitled to receive his reasonable expenses for travel and other expenses related to his participation in meetings of the Board of Directors and the fulfillment of his role as a member of the Board of Directors. Remuneration and expenses for external directors shall be paid in accordance with the Companies Regulations (Rules Regarding Remuneration and Expenses for an External Director), 5760-2000, or any regulations that may replace them.

20. **Powers of the Board of Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;**20.1** **In addition to the powers vested in the Board of Directors by the Companies Law and by these Articles of Association, and without derogating from them, the Board of Directors shall outline the Company's policy and supervise the performance of the General Manager's duties and his actions, including: -** 

(a) It
 shall determine the Company's action plans, principles for their financing and priorities among them;

(b) It
 shall examine the financial position of the Company, and shall determine the credit framework that the Company may take;

(c) It
 shall determine the organizational structure and the salary and remuneration policy;

(d) It
 may decide on the issuance of a series of debentures;

(e) It
 is responsible for the preparation of the financial statements and for their approval as stated in Section 171 of the Companies Law;

(f) It
 shall appoint and dismiss the General Manager as stated in Section 250 of the Companies Law;

(g) It
 shall decide on acts and transactions requiring its approval according to the provisions of Sections 253 and 268 to 275 of the Companies
 Law and the provisions of these Articles of Association;

(h) It
 may allot shares and convertible securities up to the limit of the Company's registered share capital according to the provisions
 of Section 288 of the Companies Law;

(i) It
 may decide on a distribution as stated in Sections 307 and 308 of the Companies Law;

(j) It
 shall express its opinion to the general meeting on a special tender offer as stated in Section 329 of the Companies Law;

(k) It
 may determine, from time to time, who shall be authorized to sign on behalf of the Company on bills of exchange, promissory notes,
 receipts, acceptances, endorsements, checks, contracts and other documents of any kind, but such authorized signatories shall be
 required to sign together with the Company's seal or next to its printed or written name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2 The Board of Directors shall act in each of the matters listed in regulation 20.1 above in accordance with the provisions of the Companies Law and these Articles of Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3 The powers of the Board of Directors under regulations 20.1(a) to (j) above are not delegable to the General Manager, except as provided in Section 288(b)(2) of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4 The recommendations, reports and approvals that the Board of Directors must give according to regulation 20.1 above shall be accompanied by the Board of Directors' reasons for the recommendation, report or approval, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5 The chairman of the Board of Directors shall preside over the meeting of the Board of Directors. At the first meeting of the Board of Directors after each annual general meeting, the Company's Board of Directors shall elect one of its members to serve as chairman of the Board of Directors. The appointment of the chairman of the Board of Directors shall be until the first annual general meeting after his appointment.

21. **Meetings of the Board of Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1 The Board of Directors shall convene for meetings according to the needs of the Company, and at least once every three (3) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2 The chairman of the Board of Directors may convene the Board of Directors at any time. In addition, any two directors (and if the number of members of the Board of Directors does not exceed five (5) - one director) shall be entitled to demand the convening of a meeting of the Board of Directors on a subject to be specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.3 Any notice of a meeting of the Board of Directors may be given orally, by telephone conversation, in writing (including by facsimile or electronic mail), or by telegram, provided that the notice is given at least 12 hours before the time set for the meeting, unless all members of the Board of Directors or their alternates (if any) have agreed to a shorter time or to convene without notice. A director who is absent from the country at any time shall not be entitled to receive during his days of absence notice of the convening of meetings of the Board of Directors, provided that if a director who is absent from the country has appointed an alternate director according to these Articles of Association, such notice shall be sent to that alternate director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.4 The notice of a meeting of the Board of Directors shall specify the time of the meeting and the place where it will convene and a reasonable breakdown of all the subjects on the agenda.

The agenda shall include the subjects determined as stated in regulation 21.2 above and also any subject that a director or the General Manager has requested from the chairman of the Board of Directors, a reasonable time before the convening of the meeting of the Board of Directors, to include in the agenda.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.5 Until decided otherwise by the Board of Directors, a majority of the members of the Board of Directors at that time who are not prevented by any law from participating and voting at the meeting of the Board of Directors, shall constitute a legal quorum at meetings of the Board of Directors and in its resolutions. The legal quorum shall be checked at the opening of the meeting and at the time of adoption of each resolution of the Board of Directors.

Notwithstanding the above, the legal quorum for the purpose of the Board of Directors' resolution regarding the termination of the term of office of the Internal Auditor shall in no case be less than a majority of the members of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.6 Resolutions in the Board of Directors shall be adopted by an ordinary majority of the directors present and voting. Each director shall have one vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.7 The chairman of the Board of Directors shall preside at every meeting of the Board of Directors. If the chairman of the Board of Directors is not present after fifteen (15) minutes have passed from the time set for the meeting, or if he does not wish to preside over it, the members of the Board of Directors present at the meeting shall elect one of them to serve as chairman, to conduct the meeting and to sign the minutes of the meeting, but the person so elected shall not have an additional or casting vote in the votes of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.8 Every meeting of the Board of Directors at which a legal quorum was present shall have the authority to exercise all the powers, authorities and discretions vested at that time, according to the provisions of these Articles of Association, in the Board of Directors or generally exercised by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.9 The Board of Directors may adopt resolutions even without actually convening, with the consent of all the directors entitled to participate in the discussion and vote on the resolution. In such a case, the chairman of the Board of Directors shall record minutes and attach to them the signatures of the directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.10 Subject to the provisions of any law, all acts done by or pursuant to a resolution of the Board of Directors or by a meeting of a committee of the Board of Directors or by a person serving as a member of the Board of Directors, shall be valid even if it is later discovered that there was some defect in the election of these members of the Board of Directors or the persons serving as aforesaid, or that all or one of them were disqualified, as if each of them had been lawfully elected and as if he had the necessary qualifications to be a member of the Board of Directors or the said committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.11 A resolution signed by all the directors (or their alternates) or to which the directors (or their alternates), who are not prevented by any law from participating in the adoption of such a resolution, have agreed in writing, including by facsimile; and also, resolutions adopted using any means of communication in which all the directors who are not prevented by any law from participating in such a resolution can hear the other directors simultaneously - shall have the same validity for all purposes, as if they had been adopted at a duly convened meeting of the Board of Directors.

22. **Committees of the Board of Directors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1 The Board of Directors may, by a resolution adopted by a majority of the directors who at that time constitute the Board of Directors, establish committees and appoint members to them from among the members of the Board of Directors. Subject to the provisions of the Companies Law and the provisions of these Articles of Association, the Board of Directors may delegate its powers or part of them to such committees, and for a specific matter it may from time to time revoke this delegation of authority. At least two directors shall serve on each committee. At least one external director shall serve on any committee authorized to exercise any of the powers of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2 Any committee established as stated in regulation 22.1 above must, when exercising its powers, comply with all the instructions that shall be determined by the Board of Directors. The meetings and actions of any such committee shall be conducted according to the provisions contained in these Articles of Association concerning the meetings and actions of the Board of Directors, as far as they are appropriate and as far as they have not been replaced by instructions given by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.3 (a) A resolution adopted or an act done in a committee of the Board of Directors, by virtue of authority delegated to it from the powers of the Board of Directors, is like a resolution adopted or an act done in the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the provisions of this regulation, on the subjects listed below, a committee of the Board of Directors shall not be entitled to adopt resolutions, but only for the purpose of recommendations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Determining general policy for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Distribution, unless it is a purchase of the Company's shares in accordance with a framework outlined in advance by the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Determining the position of the Board of Directors in connection with an act requiring the approval of the general meeting, or in the matter of giving an opinion as stated in Section 329 of the Companies Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Appointment of directors, in the event that the Board of Directors is authorized to appoint them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Allotment of shares or of securities convertible into shares or exercisable into shares, or of a series of debentures, unless it is an allotment of shares due to the exercise or conversion of the Company's securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Approval of financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Approval by the Board of Directors for transactions and acts requiring the approval of the Board of Directors according to the provisions of Sections 255 and 268 to 275 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.4 A committee of the Board of Directors shall report to the Board of Directors on an ongoing basis on its resolutions or recommendations in accordance with the determination of the Board of Directors. The Board of Directors may revoke a resolution of a committee appointed by it, but the revocation shall not prejudice the validity of a resolution of a committee on which the Company acted towards another person, who did not know of its revocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.5 The Board of Directors may revoke a resolution of a committee appointed by it, but the revocation shall not prejudice the validity of a resolution of a committee on which the Company acted towards another person, who did not know of its revocation.

However, all acts done in good faith at a meeting of the Board of Directors or by a committee of the Board of Directors or by any person acting as a director shall be valid even if it is later discovered that there was a defect in the appointment of such a director or person acting as aforesaid or that they or one of them were disqualified, just as if every such person had been duly appointed and was qualified to be a director.

23. **Minutes** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1 The Company shall maintain a register of minutes of general meetings, class meetings, meetings of the Board of Directors and meetings of committees of the Board of Directors, and shall keep them at its office, for a period of seven (7) years from the date of the meeting or session, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2 All minutes shall include the following details:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The date and place where the meeting or session was held;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The names of those present, and if they are proxies or alternates, the names of the appointors or principals, and at a shareholders' meeting, the number of shares by virtue of which the vote is held and their class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A summary of the discussions, the course of the discussions and the resolutions adopted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Instructions given by the Board of Directors to the committees of the Board of Directors or to the General Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Documents, reports, approvals, opinions and the like that were presented, discussed and/or attached.

Any such minutes of a general meeting, signed by the chairman of the meeting, shall serve as prima facie evidence of what is stated therein, and minutes of a meeting of the Board of Directors or a committee of the Board of Directors that were approved and signed by the chairman of the meeting, or the chairman of the Board of Directors, shall serve as prima facie evidence of what is stated therein.

The above provisions shall also apply to resolutions in writing.

24. **The General Manager** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1 The General Manager shall be appointed either for a fixed term or for a limited term, and shall be dismissed by the Board of Directors by a majority of the members of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.2 The General Manager shall be responsible for the day-to-day management of the Company's affairs within the framework of the policy determined by the Board of Directors and subject to its instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.3 (a) The General Manager shall have all the management and executive powers that have not been vested by the Companies Law or by these Articles of Association in another organ of the Company, and he shall be subject to the supervision of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The General Manager may, with the approval of the Board of Directors, delegate to another, subordinate to him, some of his powers; the approval may be general and in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.4 (a) The General Manager shall notify the chairman of the Board of Directors without delay of any extraordinary matter that is material to the Company, and shall also submit to the Board of Directors reports on subjects, at times and to the extent that the Board of Directors shall determine. If the Company did not have a chairman of the Board of Directors or if he was prevented from fulfilling his role, the General Manager shall notify all members of the Board of Directors as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The chairman of the Board of Directors may, on his own initiative or by a resolution of the Board of Directors, demand from the General Manager a report regarding the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a notice or report as aforesaid requires an action by the Board of Directors, the chairman of the Board of Directors shall convene a meeting of the Board of Directors without delay for the purpose of discussing the notice or deciding on the required action.

25. **Local Managements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1 The Board of Directors may from time to time make arrangements for the management of the Company's business in any particular place, whether in Israel or abroad, as it shall deem fit, and the provisions in regulation 25.2 below shall not prejudice the general powers vested in the Board of Directors by this regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2 The Board of Directors may at any time and from time to time establish any local management or local agency, to manage the business of the Company in any particular place, in Israel or abroad, and may appoint any person to be a member of such a local management, or any manager or agent and may determine their remuneration. The Board of Directors may from time to time delegate to any person so appointed any power, authority and discretion vested at that time in the Board of Directors and may authorize any person serving at that time as a member of a local management to continue in his position despite any vacancy there, and any such appointment or such power of attorney may be made on such terms as the Board of Directors shall deem fit and the Board of Directors may at any time dismiss any person so appointed and revoke any such power of attorney or amend it.

26. **Register of Shareholders** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1 (a) The Company shall maintain a register of shareholders (hereinafter: "**the Main Register**") and shall record therein the following details:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) With respect to registered shares -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The name, identity number and address of each shareholder, all as delivered to the Company; and also

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The number of shares and the class of shares owned by each shareholder, specifying their par value, if any, and if any amount has not yet been paid on account of the consideration determined for the share - the amount not yet paid; and also -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The date of allotment of the shares or the dates of their transfer to the shareholders, as the case may be; and also -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the shares are marked with serial numbers, the Company shall specify next to the name of each shareholder the numbers of the shares registered in his name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All those other details which according to the Companies Law or these Articles of Association are required or permitted to be registered in the Main Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Bearer shares -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A note of the fact of the allotment of bearer shares, the date of their allotment and the number of shares allotted; and also -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The numbering of the bearer shares and of the share warrants;

If the share warrant is cancelled at the request of the shareholder, the name of the shareholder shall be registered in the Main Register, specifying the number of shares registered in his name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Dormant shares - their number and the date on which they became dormant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A company may, subject to and in accordance with the provisions of Sections 138 and 139 of the Companies Law, maintain an additional register of shareholders outside of Israel.

27. **Office Holders** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.1 The General Manager shall be entitled from time to time to appoint for the Company office holders (other than directors and the general manager) for permanent, temporary or special positions, as the General Manager shall deem fit from time to time, and the General Manager shall also be entitled to terminate the services of one or more of the said persons from time to time and at any time, at his absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.2 The General Manager may determine, subject to the provisions of the Companies Law, the powers and duties of the office holders appointed by him as aforesaid, and also their terms of office and require security in such cases and in such amounts as he shall deem fit.

28. **Distribution** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1 Subject to any special or limited rights granted to any shares, a dividend or bonus shares shall be distributed and paid to the shareholders in proportion to the amount of the paid-up capital on the par value of the shares held by them, if any, and without regard to the premium paid on them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2 A resolution on the distribution of a dividend shall be adopted by the Board of Directors of the Company. All distributable profits that are generated, subject to generally accepted accounting principles and the provisions of the Companies Law, shall be distributed by it to its shareholders, either as a dividend or by way of a purchase of shares from all shareholders by the Company or a corporation under its control, and this shall be done close to their actual receipt by the Company and subject to any law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.3 The Board of Directors may withhold any dividend, benefit, rights or sums payable in respect of shares on which the Company has a lien and/or charge, and use any such sum or realize any benefit and any right and use the proceeds of the realization for the purpose of settling the debts in respect of which the Company has a lien and/or charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.4 The transfer of a share shall not grant the transferee the right to a dividend or to any other distribution that was declared after that transfer and before the registration of the transfer, provided that in the event that the transfer of the shares requires the approval of the Board of Directors, the date of approval shall replace the date of registration of the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.5 A dividend whose payment has not been claimed within a period of seven (7) years from the date of the resolution on its distribution shall be deemed to have been waived by the person entitled to it, and it shall revert to the ownership of the Company.

Unless other instructions have been given, any dividend may be paid by a check or payment order sent by mail to the registered address of the Company or the person entitled to it or in the case of registered joint owners, to that member whose name is registered first in the register in respect of the joint ownership. Any such check shall be drawn to the order of the person to whom it is sent. The receipt of the person whose name is registered in the register of members as the owner of a share on the date of the declaration of the dividend, or in the case of joint owners - of one of the joint owners, shall serve as a discharge in respect of all payments made in connection with that share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.6 The Board of Directors may deduct from any dividend, grant or other distribution payable in connection with shares held by a shareholder, whether he is their sole owner or in partnership with another shareholder, any sums of money due from him which he must settle alone or in partnership with another to the Company, on account of calls for payment and the like.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.7 Subject to regulation 28.2, the Board of Directors may at its discretion set aside for special funds any amount from the Company's profits, or from the revaluation of its assets, or its proportional share in the revaluation of the assets of its affiliated companies and determine the purpose of these funds.

29. **The Internal Auditor** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.1 The Board of Directors of the Company shall appoint an internal auditor, upon the proposal of the audit committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2 The organizational superior of the Internal Auditor shall be the chairman of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3 The Internal Auditor shall submit for the approval of the Board of Directors a proposal for an annual or periodic work plan and the Board of Directors shall approve it with such changes as it sees fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.4 The Internal Auditor shall act in accordance with the provisions of the Companies Law.

30. **The Auditing Accountant** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.1 The auditing accountant shall be appointed at each annual meeting and shall serve in his position until the end of the annual meeting thereafter. Notwithstanding the above, the general meeting may, by a resolution adopted by a majority of the votes of the shareholders, appoint an auditing accountant who shall serve in his position for a longer period, which shall not extend beyond the end of the third annual meeting after the one in which he was appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.2 The general meeting may terminate the term of office of the auditing accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.3 The remuneration of the auditing accountant for the audit work shall be determined by the general meeting and in accordance with Section 165 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.4 The remuneration of the accountant for additional services to the Company that are not audit work shall be determined by the Board of Directors.

31. **Transactions Requiring Special Approvals** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1 A transaction of a company with an office holder therein and also a transaction of a company with another person in which an office holder in the company has a personal interest and which is not an extraordinary transaction requires the approval of the Board of Directors only, all subject to Chapter Five of Part Six of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.2 The Company may not enter into a transaction with interested parties therein for a period of 3 years beginning on the date on which that interested party became a controlling shareholder in the Company, unless following the completion of the transaction as a result of which the interested party became a controlling shareholder holding not less than 75% of the share capital of the Company, and all subject to Chapter Five of Part Six of the Companies Law;

For this purpose, "control" as defined in the Securities Law, 5728-1968.

32. **Merger** 

Approval of a merger requires an ordinary majority of the votes of the shareholders and is subject to the provisions of Section 320(a1) of the Companies Law.

33. **Notices** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.1 Subject to the provisions of regulation 15.6 of the Articles, notice of a general meeting shall be given only to the holders of shares registered in the Main Register and who are entitled to participate in general meetings, who have provided an address in Israel. Any other person shall not be entitled to receive notices of general meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.2 When the Company has reason to believe that an address provided to the Company by a shareholder is no longer his address, that shareholder shall be considered as not having provided the Company with an address, in any of the following cases:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When the Company has sent him to the address he provided a letter by registered mail in which he was asked to confirm that the said address is still his address or to inform the Company of a new address, and the Company has not received a reply within thirty (30) days from the date of delivery of such a letter to the post office by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) When the Company has sent him to the said address a letter by registered mail, and the postal authority - upon returning the letter or without doing so - has informed the Company that the letter was not delivered to him at the said address, because he is not known at the said address or for any other similar reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.3 (a) The Company may deliver any notice and any document to a shareholder by delivering it to him or by sending it by mail according to the address he provided to the Company. If a notice is sent by mail, the notice shall be deemed to have been duly executed if the letter containing the notice bears the address he provided to the Company and was delivered to the post office duly stamped, and as long as the contrary has not been proven, the delivery shall be deemed to have been executed within seventy-two (72) hours of its delivery by the Company to the post office when the address is in Israel, and when the address is abroad - within ten (10) days of its delivery by the Company to the post office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company may give notice to the shareholders, whether they hold registered shares or bearer shares, by publishing the notice at least once in two daily newspapers with wide circulation in the Hebrew language as stated in regulation 15.6 above, and the date of publication in the newspaper shall be considered the date on which the notice was received by the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing in paragraphs (a) and (b) above shall impose any obligation on the Company to give notice to anyone who has not provided the Company with an address in Israel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.4 To partners in a share, the Company may give notice by sending a notice to the partner whose name is mentioned first in the register of shareholders with respect to that share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.5 Any document or notice delivered by the Company in accordance with the provisions of these Articles of Association shall be deemed to have been duly delivered notwithstanding the death, bankruptcy or winding-up of that shareholder (whether the Company knew of it or not), as long as another has not been registered in his place as the shareholder, and such sending and delivery shall be considered for all purposes as sufficient with respect to any person interested in those shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.6 The non-sending of a notice to a shareholder about a meeting, inadvertently, or the non-receipt of such a notice by a shareholder shall not affect the validity of any resolution adopted at such a meeting.

34. **Winding-Up of the Company** 

In the event of the winding-up of the Company, whether voluntary or otherwise, then - unless expressly provided otherwise in these Articles of Association or in the terms of issue of any share - the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The liquidator shall first use all the assets of the Company for the purpose of paying its debts (the assets of the Company after payment of its debts shall hereinafter be called: "**the Surplus Assets**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to special rights attached to shares, the liquidator shall distribute the Surplus Assets among the shareholders in *pari passu* proportion to the par value of the shares, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With the approval of the Company by a resolution adopted at a general meeting by an ordinary majority of the votes of the shareholders, the liquidator may distribute the Surplus Assets of the Company or any part thereof among the shareholders in kind and also deliver any asset from the Surplus Assets to a trustee in trust for the benefit of the shareholders as the liquidator shall deem fit.

35. **Exemption from Liability** 

The Company may, by a resolution adopted in the manner prescribed by the Companies Law, exempt in advance an office holder therein from his liability, in whole or in part, for a breach of the duty of care towards it, but in accordance with Sections 259(b) and 311 of the Companies Law, the Company may not exempt in advance a director from his liability towards it due to a breach of the duty of care in a distribution.

36. **Liability Insurance** 

Subject to the provisions of the Companies Law, the Company may, by a resolution adopted in the manner prescribed by the Companies Law, enter into a contract for the insurance of the liability of an office holder therein for a liability imposed on him due to an act he performed by virtue of his being an office holder therein, in whole or in part, in any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A breach of the duty of care towards the Company or towards another person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A breach of the duty of loyalty towards it, provided that the office holder acted in good faith and had a reasonable basis to assume that the act would not harm the Company's interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A financial liability imposed on him for the benefit of another person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A financial liability imposed on the office holder for all those harmed by the breach in an administrative proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Expenses incurred by an office holder in connection with an administrative proceeding conducted in his matter, including reasonable litigation expenses and including attorney's fees.

37. **Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.1 Subject to the provisions of the Companies Law, the Company may, by a resolution adopted in the manner prescribed by the Companies Law, indemnify an office holder therein for a liability or expense as detailed in paragraphs (a) to (e) below, imposed on him or incurred by him, due to an act he performed by virtue of his being an office holder therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A financial liability imposed on him for the benefit of another person by a judgment, including a judgment given in a compromise or an arbitrator's award approved by a court, provided that the undertaking to indemnify shall be limited to events that in the opinion of the Board of Directors are foreseeable in light of the Company's actual activity at the time of giving the undertaking to indemnify and also to a sum or criterion that the Board of Directors has determined to be reasonable in the circumstances of the matter, and that in the undertaking to indemnify the events that in the opinion of the Board of Directors are foreseeable in light of the Company's actual activity at the time of giving the undertaking and also the sum or criterion which the Board of Directors has determined to be reasonable in the circumstances of the matter shall be specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reasonable litigation expenses, including attorney's fees, incurred by an office holder due to an investigation or proceeding conducted against him by an authority authorized to conduct an investigation or proceeding, and which ended without the filing of an indictment against him and without a financial liability being imposed on him as an alternative to a criminal proceeding, or which ended without the filing of an indictment against him but with the imposition of a financial liability as an alternative to a criminal proceeding for an offense that does not require proof of criminal intent;

In this regulation - the conclusion of a proceeding without the filing of an indictment in a matter in which a criminal investigation was opened - means the closing of the file according to Section 62 of the Criminal Procedure Law [Consolidated Version], 5742-1982 (hereinafter in this subsection: "\*\*the Criminal Procedure Law\*\*") or a stay of proceedings by the Attorney General according to Section 231 of the Criminal Procedure Law. "Financial liability as an alternative to a criminal proceeding" - a financial liability imposed by law as an alternative to a criminal proceeding, including an administrative fine according to the Administrative Offenses Law, 5746-1985, a fine for an offense designated as a fineable offense according to the provisions of the Criminal Procedure Law, a financial sanction or a ransom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Reasonable litigation expenses, including attorney's fees, incurred by an office holder or for which he was charged by a court, in a proceeding filed against him by the Company or on its behalf or by another person, or in a criminal charge of which he was acquitted, or in a criminal charge in which he was convicted of an offense that does not require proof of criminal intent.

Furthermore, the Company may indemnify an office holder therein as aforesaid retroactively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A financial liability imposed on the office holder for all those harmed by the breach in an administrative proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Expenses incurred by an office holder in connection with an administrative proceeding conducted in his matter, including reasonable litigation expenses and including attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.2 The amount of indemnification that the Company shall pay to all office holders in the Company, according to all letters of indemnification, for one or more of the types of events detailed in the addendum to the letter of indemnification, is limited to an aggregate amount equal to 25% of the Company's equity, at the time of the actual payment of the indemnification, according to the Company's latest audited or reviewed consolidated financial statements, plus amounts that will be received, if received, from an insurance company under an insurance policy entered into by the Company.

38. **Binding the Company** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.1 The signature of any person who shall be appointed from time to time by the Board of Directors generally or for a special case, either by himself or together with additional persons, together with the seal or stamp of the Company, shall bind the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.2 The Board of Directors may determine separate signing rights for different businesses of the Company and for the amount of the sums for which the persons are authorized to sign.

39. **Amendment of the Articles of Association** 

These Articles of Association may be amended by a resolution of the shareholders at a general meeting, by an ordinary majority of the votes of the participating shareholders, and including and notwithstanding anything stated in these Articles of Association, the adoption of a resolution that constitutes an amendment of a provision of these Articles of Association, directly or indirectly, shall require a resolution of the shareholders at a general meeting, by an ordinary majority of the votes of the participating shareholders.

## Exhibit 4.1

**Exhibit 4.1**

**Algomizer Ltd.<br> 2017 Israeli Incentive Plan for the Allocation of Options and Shares<br> (\*In accordance with the Amendment to the Income Tax Ordinance (No. 132), 5762 - 2002)**

**Definitions**

For the purpose of this Israeli Incentive Plan and its related documents, including the Grant Letter, the following definitions shall apply as follows:

(a) "**Option**" - A non-transferable option to purchase one or more shares of the Company, subject to this Incentive Plan.

(b) "**102 Option**" - An option granted by the Company to its Employees subject to Section 102 of the Ordinance.

(c) "**102 Option under the Trustee Track**" - An option granted subject to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of the Employee.

(d) "**102 Option under the Non-Trustee Track**" - An option granted subject to Section 102(c) of the Ordinance and not held in trust by a Trustee for the benefit of the Employee.

(e) "**Option under the Capital Gains Track**" - An option with respect to which the Company has elected and determined that the applicable tax track shall be the capital gains track in accordance with Section 102(b)(2) of the Ordinance.

(f) "**Option under the Employment Income Track**" - An option with respect to which the Company has elected and determined that the applicable tax track shall be the employment income track in accordance with Section 102(b)(1) of the Ordinance.

(g) "**3(i) Option**" - An option granted subject to Section 3(i) of the Ordinance to a Non-Employee.

(h) "**Controlling Shareholder**" - As defined in Section 32(9) of the Ordinance.

(i) "**Board of Directors**" - The Board of Directors of the Company.

(j) "**Record Date**" - The record date for a shareholder's eligibility for the distribution of bonus shares and/or cash dividends and/or the issuance of rights.

(k) "**Public Offering**" - The initial public offering of the Company's shares.

(l) "**Company**" - Algomizer Ltd., a company incorporated under the laws of the State of Israel.

(m) "**Affiliated Company**" - An "employing company" as defined in Section 102(a) of the Ordinance.

(n) "**Acquiring Company**" - Any entity into which the Company merges or by which it is acquired, and where the Company is not the surviving company.

(o) "**Companies Law**" - The Israeli Companies Law, 5759 - 1999.

(p) "**Chairman**" - The Chairman of the Board of Directors.

(q) "**Grant Letter**" - A signed document between the Company and the Grantee, which includes, regulates, and determines the terms under which the Option/Share will be granted to the Grantee and which shall apply to it, subject to the provisions of this Incentive Plan.

(r) "**Grant Date**" - The date of grant of the Option/Share, as shall be determined by the Board of Directors or as stated in the Grant Letter with the Grantee.

(s) "**Vesting Date**" - The date on which the Grantee shall be entitled to receive the Shares and/or to exercise the Options or part thereof, as detailed in Sections 9-10 of the Incentive Plan and as shall be determined by the Board of Directors.

(t) "**Option Expiration Date**" - The date on which the Option expires, as stated in Section 10.4 of the Incentive Plan.

(u) "**Share**" - An ordinary share of the Company, with no par value.

(v) "**102 Share**" - A share granted to Employees subject to Section 102 of the Ordinance.

(w) "**102 Share under the Trustee Track**" - A share granted subject to Section 102(b) of the Ordinance and held in trust by a Trustee for the benefit of the Employee.

(x) "**102 Share under the Non-Trustee Track**" - A share granted subject to Section 102(c) of the Ordinance and not held in trust by a Trustee for the benefit of the Employee.

(y) "**Share under the Capital Gains Track**" - Means a share with respect to which the Company has elected and determined that the applicable tax track shall be the capital gains track in accordance with Section 102(b)(2) of the Ordinance.

(z) "**Share under the Employment Income Track**" - A share with respect to which the Company has elected and determined that the applicable tax track shall be the employment income track in accordance with Section 102(b)(1) of the Ordinance.

(aa) "**Trustee**" - A person appointed by the Company to serve as a trustee and approved by the Tax Authority, all subject to Section 102(a) of the Ordinance.

(bb) "**Grantee**" - A person to whom the Company has granted Shares and/or Options by virtue of this Incentive Plan.

(cc) "**Cause**" - Any of the following:

(1) Conviction of an offense involving moral turpitude or one that affects the Company and/or Affiliated Companies;

(2) The Grantee's refusal to comply with a reasonable instruction from his/her superiors, including the Board of Directors, the CEO, and the Grantee's direct manager, in connection with the business of the Company and/or the business of Affiliated Companies, which could have been lawfully performed;

(3) Embezzlement of funds of the Company and/or of Affiliated Companies;

(4) Breach of the duty of loyalty towards the Company and/or towards Affiliated Companies, including the disclosure of confidential information regarding the Company and/or Affiliated Companies;

(5) Any act or omission (other than conduct in good faith) which, in the opinion of the Board of Directors, is significantly detrimental to the Company and/or to Affiliated Companies;

(6) As this term is defined in the Grantee's employment agreement or engagement agreement with the Grantee or any other agreement signed between the Grantee and the Company and/or Affiliated Companies;

(7) In any other case where the Employee's employment with the Company and/or the Affiliated Company is terminated without being entitled to severance pay.

(dd) "**Section 102**" - Section 102 of the Ordinance, as in effect today or as it may be amended in the future, and all rules and/or regulations and/or rulings and/or other legislation by virtue of this section, including the Income Tax Rules (Tax Relief in the Allocation of Shares to Employees), 5763 - 2003.

(ee) "**Employee**" - A person employed by the Company or an Affiliated Company, including an officer or director, but excluding a Controlling Shareholder as defined in Section 32(9) of the Ordinance.

(ff) "**Transaction**" - Any of the following:

(1) A merger, acquisition, or reorganization of the Company with or into another company, where the Company is not the surviving company;

(2) The sale of all or substantially all of the assets or shares of the Company.

(gg) "**Ordinance**" - The Income Tax Ordinance (New Version), 5721 - 1961, as in effect today or as it may be amended in the future.

(hh) "**Tax Authority**" - The Israel Tax Authority.

(ii) "**Non-Employee**" - A consultant, service provider, Controlling Shareholder, or any other entity that is not an Employee.

(jj) "**Fair Market Value**" - At any given time, shall be the value of a Share which shall be determined as follows:

(1) If the Shares are listed for trading on a recognized stock exchange or a national market system, including the Tel Aviv Stock Exchange, the Fair Market Value shall be the closing price of the Share as reported on the stock exchange or national market system as aforesaid on the last trading day preceding the determining date, according to any source selected by the Board of Directors in its discretion.

Without derogating from the foregoing, and for the purpose of determining the tax liability in accordance with Section 102(b)(3) of the Ordinance only, if on the Grant Date of the Options and/or Shares, the Company's shares are listed for trading on any stock exchange or national market system, or if the Company's shares are listed for trading within ninety (90) days from the Grant Date of the Options and/or Shares, the Fair Market Value of the Share on the Grant Date of the Options and/or Shares shall be determined according to the average value of the Company's shares during the thirty (30) trading days preceding the Grant Date of the Options and/or Shares, or during the thirty (30) trading days following the date of the Public Offering, as the case may be.

(2) If there is current reporting on the Shares through an authorized stock dealer, but there is no reporting of sale prices, then the Fair Market Value shall be determined by the average between the highest bid and the lowest asked price of the Shares on the last trading day preceding the determining date, or;

(3) In the absence of an organized market for the Shares, the Fair Market Value shall be determined, in good faith, by the Board of Directors.

(kk) "**Incentive Plan**" - This 2017 Incentive Plan for the Allocation of Options and Shares of the Company.

(ll) "**Exercise Price**" - Reflects the price for each Share subject to an Option which shall be paid by the Grantee to the Company upon the exercise of the Option into a Share.

**The Incentive Plan**

This Incentive Plan, as it may be updated from time to time, shall be called the 2017 Israeli Incentive Plan for the Allocation of Options and Shares of Algomizer Ltd.

1. Introduction

The purpose of the Incentive Plan is to grant to employees, consultants, officers, directors, and service providers of the Company and of Affiliated Companies, Shares and/or Options exercisable into Shares of the Company, in order to create an incentive among them to maximize the Company's profits and to have them participate in the Company's development and success.

2. Administration
 of the Incentive Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Incentive Plan shall be administered by the Board of Directors of the Company, subject to any law that may be in force and to the provisions of the Company's Articles of Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 The Board of Directors shall have the full and absolute authority and discretion to decide as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To determine who the Grantees are;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To determine the terms of the Grant Letters, including the number of Shares and/or Options granted to each Grantee, the number of Shares subject to each Option, the vesting dates, the manner of exercising the Option into a Share, the Exercise Price, to set restrictions on the transferability of the Shares and/or Options, as well as terms regarding forfeiture, repurchase of the Shares, and cancellation of the Shares and/or Options, and to cancel and suspend grants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To determine the Fair Market Value of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) To elect the tax track for a 102 Share under the Trustee Track and/or a 102 Option under the Trustee Track;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) To determine the type of Share and/or Option granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) To amend restrictions and conditions applicable to Shares and Options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) To interpret the terms of the Incentive Plan and to supervise the administration of the Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) To accelerate, in whole or in part, the vesting dates of the Shares and/or Options granted to any Grantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) To freeze, terminate, or cancel the Incentive Plan in whole or in part, to amend or modify the Incentive Plan and its provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) To decide and determine on any other matter necessary for the administration of the Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 The Board of Directors shall have the authority to grant, at its discretion, the following to a Grantee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In consideration for the cancellation of an Option granted to him/her, a new Option with an Exercise Price that is identical to, lower than, or higher than the Exercise Price of the original Option that was cancelled, and subject to other terms as shall be determined by the Board of Directors in accordance with the terms of the Incentive Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) To change the original Exercise Price of the Option granted to him/her and set it at a different and new Exercise Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Subject to the Company's Articles of Association, all decisions of the Board of Directors in connection with the Incentive Plan shall be made by a majority of votes, but any member of the Board of Directors shall be denied the right to vote or the right to be counted in the quorum required for the approval or making of a decision by the Board of Directors regarding the grant of Shares and/or Options to that member. Any written decision of the Board of Directors shall be made in accordance with the terms of the Company's Articles of Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 The interpretation of the Board of Directors regarding any section in the Incentive Plan and/or in the Grant Letter shall be final and absolute unless determined otherwise by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Subject to the Company's Articles of Association and the Company's decision and subject to all required approvals under any law, including the Companies Law, every member of the Board of Directors shall be indemnified, shall not bear personal liability, and shall not be liable in any way, for any reasonable expense he/she incurs (including reasonable consulting expenses) in connection with actions taken by him/her or which he/she refrained from taking in connection with the Incentive Plan, unless such actions were taken fraudulently or in bad faith, up to the maximum amount stipulated by law. Such indemnification shall be in addition to any right of indemnification that such member may have, if any, by virtue of being a director of the Company or in accordance with the provisions of the Company's Articles of Association, an agreement, a resolution of the shareholders' meeting, an insurance policy, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Without derogating from the foregoing, any grant of Shares and/or Options to a director and to officers shall be approved and implemented in accordance with the provisions of the Companies Law, as they may be in effect from time to time, and/or any law that may replace it.

3. Determination
 of Participants in the Incentive Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The persons eligible to participate in the Incentive Plan as Grantees shall include Employees and Non-Employees of the Company or of Affiliated Companies, provided that: (1) Employees shall receive only 102 Shares and/or 102 Options; (2) Non-Employees shall receive only 3(i) Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The grant of Shares and/or Options to a Grantee by virtue of the Incentive Plan does not entitle and does not preclude the Grantee from the right to participate in grants of Shares and/or Options by virtue of the Incentive Plan or by virtue of any other incentive plan for the grant of Shares and/or Options of the Company or of Affiliated Companies.

4. Determination
 of the Type of Shares and/or Options in Accordance with Section 102

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Company may designate the Shares and/or Options to be granted to Employees in accordance with Section 102 as a "102 Share under the Non-Trustee Track" and/or as a "102 Option under the Non-Trustee Track" or as a "102 Share under the Trustee Track" and/or as a "102 Option under the Trustee Track".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The grant of a "102 Share under the Trustee Track" and/or a "102 Option under the Trustee Track" by virtue of the Incentive Plan shall be subject to the approval of the Incentive Plan by the Board of Directors, as detailed in Section 15 below, and shall be subject to the approval of the Incentive Plan by the Tax Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 A "102 Share under the Trustee Track" may be classified as a "Share under the Capital Gains Track" or as a "Share under the Employment Income Track".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 A "102 Option under the Trustee Track" may be classified as an "Option under the Capital Gains Track" or as an "Option under the Employment Income Track".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 The Company's election regarding the type of "102 Share under the Trustee Track" and/or the type of "102 Option under the Trustee Track" as detailed in Sections 4.3-4.4 above, respectively (hereinafter: "the **Election**"), shall be submitted as required to the Tax Authority prior to the Grant Date of the said Shares and/or Options. The Election shall take effect from the first Grant Date and shall remain in effect until the end of the year following the year in which the Company first granted a "102 Share under the Trustee Track" and/or a "102 Option under the Trustee Track". The Election shall obligate the Company to grant only the type of Shares and/or Options under the chosen tax track (capital gains or employment income) that it has elected, and shall apply to all Employees who receive Shares and/or Options under the Trustee Track during the aforementioned period, all in accordance with the provisions of Section 102(g) of the Ordinance. For the avoidance of doubt, the Election shall not prevent the Company from granting a "102 Share under the Non-Trustee Track" and/or a "102 Option under the Non-Trustee Track" simultaneously.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 All "102 Shares under the Trustee Track" and/or "102 Options under the Trustee Track" and/or shares resulting from the exercise of "102 Options under the Trustee Track" shall be held in trust by a Trustee, as described in Section 5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 For the avoidance of doubt, the designation of the type of Shares and/or the type of Options as "102 Shares under the Trustee Track" and/or as "102 Options under the Trustee Track" or "102 Shares under the Non-Trustee Track" and/or "102 Options under the Non-Trustee Track" shall be subject to the terms of Section 102 of the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 In the case of "102 Shares under the Trustee Track" and/or "102 Options under the Trustee Track", the terms of the Incentive Plan and/or the Grant Letter, as the case may be, shall be subject to the terms of Section 102 of the Ordinance and the approval of the Assessing Officer, and these terms and approval shall form an integral part of the Incentive Plan and the Grant Letter. Any of the terms of Section 102 and/or the said approval, which are necessary to obtain and/or maintain tax benefits in accordance with Section 102, and which are not explicitly detailed in the Incentive Plan or the Grant Letter, shall be deemed to apply to and be binding on the Company and the Grantees.

5. Trustee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 "102 Shares under the Trustee Track" and/or "102 Options under the Trustee Track" which are granted by virtue of the Incentive Plan and/or shares to be issued following the exercise of "102 Options under the Trustee Track" and/or other shares which will be issued by virtue of the exercise of rights, including bonus shares, shall be allocated or issued in the name of the Trustee and held by him for the periods stipulated and required in Section 102 (hereinafter: "the **Holding Period**"). If the conditions for the grant of "102 Shares under the Trustee Track" and/or "102 Options under the Trustee Track" are not met, then the "102 Shares under the Trustee Track" and/or the "102 Options under the Trustee Track" which were granted may be considered as "102 Shares under the Non-Trustee Track" and/or "102 Options under the Non-Trustee Track", as the case may be, all in accordance with the terms of Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Without derogating from and subject to the foregoing and to any other relevant restriction in this Incentive Plan, in another relevant incentive plan, in the Grant Letter, and in the applicable law, the Trustee shall not transfer to the Grantee "102 Shares under the Trustee Track" and/or shares which were granted as a result of the exercise of a "102 Option under the Trustee Track" and/or shares granted by virtue of the exercise of rights, prior to the full payment of the tax liability arising from the grant and/or exercise and/or sale of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 With respect to "102 Shares under the Trustee Track" and/or "102 Options under the Trustee Track", subject to the terms of Section 102, a Grantee shall not sell or transfer from the Trustee "102 Shares under the Trustee Track" and/or shares which were granted as a result of the exercise of a "102 Option under the Trustee Track" and/or shares which were granted as a result of the exercise of rights, including bonus shares, until the expiration of the Holding Period required by virtue of Section 102. Notwithstanding the foregoing, if such a sale or transfer occurs during the Holding Period, the sanctions under Section 102 shall apply to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Upon receipt of a "102 Share under the Trustee Track" and/or a "102 Option under the Trustee Track", the Grantee shall sign an undertaking to release the Trustee from any liability for actions or decisions made in good faith in connection with the Incentive Plan, or for any "102 Share under the Trustee Track" and/or "102 Option under the Trustee Track" or share granted to him/her.

6. Reserved
 Shares, Restrictions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 The grant of a Share and/or Option to a Grantee in accordance with the Incentive Plan shall be made by means of a Grant Letter which shall be signed between the Company and the Grantee in a form as shall be approved by the Board of Directors, from time to time. Each Grant Letter shall specify, inter alia, the number of Shares and/or Options granted or the number of Shares that will result from the exercise of the Option, the type of Share and/or Option granted ("Share under the Capital Gains Track", "Share under the Employment Income Track", "102 Share under the Non-Trustee Track", "Option under the Capital Gains Track", "Option under the Employment Income Track", "102 Option under the Non-Trustee Track", etc.), the vesting dates, and other terms as shall be determined by the Board of Directors, provided that they are consistent with the terms of the Incentive Plan.

7. Exercise
 Price of the Options

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 The Exercise Price of each Share with respect to an Option shall be determined by the Board of Directors at its sole discretion in accordance with the provisions of the law. The Exercise Price for each Grantee shall be determined in a Grant Letter to be signed between the Grantee and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 The Exercise Price shall be paid by the Grantee to the Company at the time of exercising the Option into a Share, in a manner to be determined by the Board of Directors, including through one of the following options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Payment in cash, by check, or by bank transfer;

or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Exercise of part or all of the Options whose vesting date has arrived by means of a Net Exercise mechanism, whereby the Grantee shall be entitled to receive Shares reflecting the benefit component inherent in the exercised Options according to the formula below, in exchange for payment of the par value of the Shares only. For the avoidance of doubt, it is hereby clarified that under this exercise method, the Options are exercisable for the number of Shares reflecting only the benefit component. The Grantee shall not pay the Exercise Price, which is used solely for the purpose of calculating the benefit component.

The number of Shares that can be purchased by the Grantee under this mechanism in exchange for their par value shall be determined according to the following formula:

Y = The number of **exercisable Options whose vesting date has arrived and have not yet been exercised and which the Grantee wishes to exercise through this mechanism.**

A = The Fair Market Value of each Share on the exercise date.

B = The adjusted Exercise Price for each Option.

N = The par value of each Share.

or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) At the discretion of the Board of Directors, any combination of the methods specified in this Section 7.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 The Exercise Price shall be denominated in the primary currency of the economic environment of the Company or the Grantee (i.e., the functional currency of the Company or the currency in which the employee receives salary), as shall be determined by the Company.

8. Adjustments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 In the event of a Transaction, any Option granted under the Incentive Plan that has not yet been exercised shall be replaced or converted into options for shares in accordance with the number of shares under the Grant Letter that have not yet been exercised, or for any security of the Acquiring Company (or a parent or subsidiary company of the Acquiring Company) which were distributed to the shareholders of the Company against the Shares in connection with such Transaction, and appropriate adjustments shall be made to the Exercise Price of the Option for a Share to reflect such event. All other terms of the Grant Letter shall remain in effect, including the vesting dates, all as shall be determined by the Board of Directors, whose decision shall be exclusive and final. The Company shall notify the Grantee of the Transaction in such manner and form as the Company deems appropriate at least seven (7) days before the Record Date of the Transaction.

This section shall apply, mutatis mutandis, also to Shares whose vesting date has not yet arrived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Without derogating from the foregoing and subject to the provisions of any law, the Board of Directors shall have the authority to determine, at its sole and final discretion, in connection with certain Grant Letters, that the Grant Letter shall contain a clause stating that if, upon the occurrence of a Transaction as detailed in Section 8.1 above, the Acquiring Company (or a parent or subsidiary company of the Acquiring Company) does not agree to convert or replace the Options, the vesting dates of all or part of the Options whose vesting date has not yet arrived shall be accelerated, and the Grantee shall be entitled to exercise the Options into Shares seven (7) days before the date of the occurrence of the Transaction detailed in Section 8.1 above.

This section shall apply, mutatis mutandis, also to Shares whose vesting date has not yet arrived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 For the purposes of Section 8.1 above, the Share and/or Option shall be considered replaced or converted if, following the Transaction, the Share and/or Option grants the right to purchase or receive, for each Share and/or Share subject to an Option, immediately before the Transaction, the consideration (whether shares, options, cash, or other securities or property) which will be received in the Transaction by the shareholders for each Share held on the Record Date of the Transaction (and if such holders were given a choice as to the consideration, the type of consideration chosen by the holders of a majority of the Shares); provided that, if such consideration received in the event of a Transaction is not solely in ordinary shares (or their equivalent) of the Acquiring Company (or its parent or subsidiary company), the Board of Directors may, after obtaining the consent of the Acquiring Company, determine that the consideration to be received upon exercise of the Option shall be solely ordinary shares (or their equivalent) of the Acquiring Company (or its parent or subsidiary company) whose market price is equal to the price per share received by the holders of a majority of the Shares in the Transaction; and provided that the Board of Directors may determine, at its discretion, that in such a case of replacement or conversion of a Share against a Share and/or an Option against an Option of the Acquiring Company, such Share and/or Option shall be replaced against any other type of asset, including cash, in a fair manner under the existing circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 Should a voluntary liquidation of the Company be decided upon while there are unexercised Options under the Incentive Plan, the Company shall give notice to all Option holders of such decision, and each Option holder shall have seven (7) days to exercise the unexercised Options into Shares whose vesting date has arrived, in accordance with the exercise procedure set forth below. Upon the expiration of these seven (7) days, all Options that have not been exercised into Shares by that day shall immediately expire.

This section shall apply, mutatis mutandis, also to Shares whose vesting date has not yet arrived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 In any case where a change occurs in the issued share capital of the Company by way of a share split, consolidation or exchange of shares, a change in the capital structure of the Company, or any similar event by or of the Company, then the number and type of Shares under the Incentive Plan or the Shares exercisable as a result of the exercise of Options granted under the Incentive Plan, and the Exercise Price, shall be adjusted proportionally to preserve proportionately the number of Shares and their cumulative Exercise Price, provided that no such adjustments shall be made as a result of the distribution of rights in respect of issued shares. Upon the occurrence of one of the events listed above, the type and cumulative number of Shares subject to issuance under the Incentive Plan (as detailed in Section 6 above), with respect to unexercised Options, shall be similarly adjusted, all as shall be determined by the Board of Directors, whose decision shall be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 Subject to the provisions below, should the Company distribute bonus shares to its shareholders, the Record Date for which distribution shall occur after the Grant Date of the Options but before the exercise of the Options and before the expiration of the Grantee's eligibility to exercise them, the rights of the Grantees shall be preserved, such that immediately after the Record Date, the number of Shares resulting from the exercise of the Options to which the Grantees would have been entitled upon their exercise and payment of the Exercise Price for them (hereinafter: "**Exercise Shares**") shall be increased, by adding shares in the number and of the type to which the Grantees would have been entitled as bonus shares upon their exercise prior to the Record Date for bonus shares. The fixed Exercise Price for the Options shall not change as a result of the increase in the number of Exercise Shares as aforesaid.

The provisions relating to the Exercise Shares shall also apply in the event that shares are added to the Exercise Shares, subject to the necessary changes.

It is hereby clarified that the number of Exercise Shares to which the Grantees will be entitled shall be adjusted only in the case of a distribution of bonus shares as stated in this section, but not in the case of any other issuances (including issuances to interested parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 If the Company distributes a cash dividend, and the Record Date precedes the exercise date of Options, including Options for which the vesting date has not yet arrived, the Exercise Price shall be reduced and the rights of the Grantees in the Options shall be preserved, according to the following provisions:

Immediately after the Record Date, the ratio between the price of the Company's share on the stock exchange, as determined by the stock exchange, adjusted for the dividend distribution (ex-dividend price), and the share price at the end of the Record Date (hereinafter: "**Dividend Ratio**") shall be calculated.

The new Exercise Price of the Options shall be determined by multiplying the basic Exercise Price of the Options on the Record Date by the Dividend Ratio.

The Exercise Price shall also be adjusted in the other cases falling under distribution, as this term is defined in the Companies Law, in accordance with the principle in this section, mutatis mutandis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 Should the Company offer to its shareholders by way of a rights issue, rights to purchase any securities, the Company shall treat the Grantees as if they had exercised the Options to which they were entitled on the eve of the rights issue and shall ensure or cause that the rights are also offered to the Grantees on the same terms as they were offered to the other shareholders of the Company, mutatis mutandis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 For the avoidance of doubt, in any case of adjustments under this section, the Grantees shall not be entitled to receive a fraction of one whole share, and the number of Shares to be granted to each and every Grantee shall be rounded up to the nearest share, and the provisions of the Incentive Plan shall apply in this regard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 Without derogating from the terms of the Incentive Plan, if prior to the Public Offering all or substantially all of the assets or shares of the Company are sold or in the event of a Transaction all or substantially all of the assets or shares of the Company are exchanged for securities of another company, then each Grantee shall be obligated to sell or exchange, as the circumstances may be, the Shares which were granted to him/her or which were purchased by him/her by virtue of the Incentive Plan, in accordance with the instructions and directives which shall be given by the Board of Directors regarding the Transaction, whose decision shall be final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 The Grantee acknowledges and is aware that if the Company's shares are listed for trading on any stock exchange, the Employee's right to sell the Shares may be subject to certain restrictions (including Lock-Up Periods), as may be required by the Company, and the Grantee unconditionally agrees to be subject to such restrictions.

9. Terms
 of the Share

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Subject to the terms of the Incentive Plan, each Share shall be exercisable in accordance with the vesting dates as shall be determined in the Grant Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 The Share may be subject to additional conditions concerning its vesting date, as shall be determined by the Board of Directors at its discretion. The vesting dates of the Shares may differ from one another.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 If the Grantee ceases to be an employee or service provider of the Company or Affiliated Companies without "Cause", the Grantee shall be entitled to receive all Shares whose vesting date has arrived by the date of termination of the employment or service relationship. Shares whose vesting date has not yet arrived by the date of such termination of employment or service relationship shall be forfeited to the Company in consideration for the price paid by the Grantee for such Shares. For the avoidance of doubt, it is clarified that the Grantee shall not be entitled to Shares whose vesting date has not yet arrived as of the date of termination of the employment or service relationship.

In the event that the termination of the relationship is for "Cause", then all Shares (both Shares whose vesting date has arrived and Shares whose vesting date has not yet arrived by the date of termination of the relationship) shall be subject to forfeiture by the Company in consideration for the price paid by the Grantee for such Shares, and all of the Grantee's rights in the Shares, including the right to receive dividends, shall expire.

With respect to "102 Shares under the Non-Trustee Track", upon termination of the relationship between the Company or Affiliated Companies and the Grantee, the Grantee shall provide the employer with security or a guarantee for the payment of the tax applicable at the time of the sale of the Shares, all in accordance with the terms of Section 102 of the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Notwithstanding anything stated in any other provision of the Incentive Plan and/or in any agreement and/or elsewhere, in any case where the Grantee ceases to be an employee of the Company or Affiliated Companies (whether without "Cause" or for "Cause"), the Company shall have an absolute and unconditional right to forfeit all Shares to which the Grantee is entitled, including all Shares whose vesting date has passed before the date of termination of the employment relationship.

In the event that the termination of the employment relationship was without "Cause", the Company shall pay the Grantee for the forfeiture of the Shares whose vesting date passed before the date of termination of the employment relationship only, their Fair Market Value, as defined above. For Shares whose vesting date has not yet arrived by the date of termination of the employment relationship, no consideration whatsoever shall be paid to the Grantee for the forfeiture of the Shares by the Company.

For the removal of doubt, in any case where the termination of the employment relationship was for "Cause", no consideration whatsoever shall be paid to the Grantee against the forfeiture of the Shares by the Company.

10. Terms of the Option
and its Exercise

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 A Grantee wishing to exercise the Option in his/her possession shall provide written notice thereof to the Company or its representative, in the form and manner to be determined by the Company and, if necessary, by the Trustee in accordance with the requirements of Section 102. The exercise shall be effective upon receipt of the exercise notice by the Company and/or its representative and payment of the Exercise Price at the office of the Company or its representative. In the notice, the Grantee shall specify the number of Shares with respect to the Option that the Grantee wishes to exercise. All other documents that the Grantee must sign as a condition for the exercise of the Option, as detailed in the Incentive Plan and the Grant Letter and according to the decision of the Board of Directors, shall also be attached to the notice. The Board of Directors shall be entitled to make changes to the exercise procedures and manner at any time, at its discretion, inter alia, for the purpose of improving and streamlining the exercise procedures and for adapting them to changes that may occur in the applicable law and the Company's accumulated experience. The Company shall provide the Grantees with notice of the said changes and of the new procedures that will apply, to the extent that the matter is relevant to them. For the avoidance of doubt, it is clarified that to the extent required, any change and/or adjustment shall be made in cooperation and coordination with the Trustee and subject to the provisions of Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Subject to the terms of the Incentive Plan, each Option shall be exercisable in accordance with the vesting dates and for the number of Shares as shall be determined in the Grant Letter. However, the Options shall not be exercisable after the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 The Option may be subject to additional conditions concerning its exercise date, as shall be determined by the Board of Directors at its discretion. The vesting dates of the Options may differ from one another.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 The Option shall expire if not previously exercised into a Share, on the earlier of: (1) the Expiration Date as mentioned in the Grant Letter; (2) the expiration of the period in the cases specified in Section 10.7 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 The Options are exercisable by the Grantee in full at any time or in part from time to time, provided that the vesting and exercise date of the Option has arrived, and before the Expiration Date has passed, and provided that, subject to the terms of Section 10.7 below, the Grantee is employed by or provides services to the Company or Affiliated Companies, at all times during a period beginning on the grant of the Option and ending on the date of exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 Subject to Section 10.7 below, if the Grantee ceases to be an employee or service provider of the Company or Affiliated Companies, all Options granted to him/her shall immediately expire on the date of termination of the employment or service provision relationship (as this term is defined in Section 10.7 below). Such cessation shall not be deemed to have occurred merely by reason of the transfer of the Grantee's employment or service provision relationship from the Company to Affiliated Companies. For the avoidance of doubt, in the event of termination of the employment or service provision relationship, Options whose vesting date has not yet arrived on the date of termination of the relationship shall not vest and shall not be exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 Without derogating from the foregoing and unless otherwise determined in the Grantee's Grant Letter, the Grantee shall be entitled to exercise the Options at a date later than the date of termination of the employment or service provision relationship, but only with respect to Options whose vesting date has arrived on the date of termination of the employment or service provision relationship, in accordance with the vesting periods of the Option, and all in accordance with the cases detailed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In the event of termination of the relationship without "Cause", the Grantee shall have the right to exercise the Options that he/she was entitled to exercise by virtue of the Grant Letter in accordance with the vesting dates and provided they have not yet expired, for a period after receipt of the prior notice of termination of the relationship and until the actual date of severance of the relationship, a total period of ninety (90) days unless the Board of Directors determines otherwise in the specific Grant Letter of each Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of termination of the relationship due to the death or disability of the Grantee, the Grantee or his/her legal heirs shall have the right to exercise the Options that the Grantee was entitled to exercise by virtue of the Grant Letter in accordance with the vesting dates and provided they have not yet expired, for twelve (12) months from the actual date of severance of the relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Board of Directors has approved, at a date prior to the date of severance of the relationship, an extension of the terms of the unexercised Options beyond the date of severance of the relationship for a period not to exceed the original period set for the exercise of the Option.

For the purpose of this section, and for the purpose of Section 9.4 above, "date of termination of the employment or service provision relationship" and/or "date of termination of the relationship" shall be considered the actual date of severance of the relationship.

For the avoidance of doubt, in the event that the termination of the relationship is caused by resignation and/or dismissal for "Cause", then the Options shall expire for all intents and purposes (whether the Grantee on the date of termination of the relationship was entitled to exercise part of the Options or not), and the Grantee shall have no right in connection with the Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 For the avoidance of doubt, Grantees shall not have the rights granted to shareholders of the Company with respect to the Shares they received by virtue of the exercise of the Options, nor shall the Grantees be considered as holders of a class of shares or as creditors of the Company for the purposes of Sections 350 and 351 of the Companies Law, until the date of registration of the Grantee as a shareholder in the Company's register of shareholders after the exercise of the Option into a Share, subject to the terms of the Incentive Plan, but in the case of Options and Shares held by a Trustee, subject to the terms of Section 5 of the Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 The Grant Letter which shall be approved by virtue of the Incentive Plan may include other additional terms, in accordance with the discretion of the Board of Directors from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 With respect to "102 Options under the Non-Trustee Track", upon termination of the relationship between the Company or Affiliated Companies and the Grantee, the Grantee shall provide the employer with security or a guarantee for the payment of the tax applicable at the time of the sale of the Shares, all in accordance with the terms of Section 102 of the Ordinance.

11. Right of First
Refusal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Without derogating from the provisions of the Company's Articles of Association, Grantees shall have no right of first refusal in connection with any sale of the Company's shares by other shareholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 Unless otherwise determined by the Board of Directors, until the date of listing of the Company's shares for trading on a stock exchange, any sale of shares by the Grantee shall be subject to a right of first refusal as stipulated in the Company's articles of incorporation and/or in the Company's shareholders' agreement and/or in the Grant Agreement, as they may be in effect from time to time.

**12.** Dividend

Without derogating from the terms of the Incentive Plan and in addition, it is clarified that all Shares (excluding, for the avoidance of doubt, unexercised Options) which shall be granted to the Grantees or to the Trustee, as the case may be, shall entitle their owners to the right to receive a dividend in accordance with the number of Shares, subject to the terms of the Company's Articles of Association and subject to the tax applicable to the distribution of such dividends, and as the case may be, subject to Section 102.

13. Restriction
 on Transferability of Options and/or Shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 The Shares, Options, or the Grantee's rights in any matter related to the Options, whether or not payment has been made for them, are not transferable, assignable, pledgeable, or any right in respect thereof to be given to a third party other than by will or the laws of inheritance, except as expressly stated in the Incentive Plan, and during the Grantee's lifetime, all of the Grantee's rights to purchase Shares by virtue of the exercise of Options under the Incentive Plan are exercisable by the Grantee only.

Any such action, whether direct or indirect, whether its effect is immediate or future, shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 As long as the Shares and/or Options are held by the Trustee for the benefit of the Grantee, then all of the Grantee's rights are personal and are not transferable, assignable, pledgeable, attachable, or subject to any other encumbrance, except for transfer by will or the laws of inheritance.

14. Term
 of the Incentive Plan

The Incentive Plan shall come into effect on the date of its adoption by the Company's Board of Directors and shall expire at the end of ten (10) years from the date of adoption.

15. Amendments
 or Termination of the Incentive Plan

The Board of Directors may at any time, and as the case may be after consultation with the Trustee, amend, modify, suspend, or terminate the Incentive Plan. Such amendment, modification, suspension, or termination shall not adversely affect the rights of any Grantee, unless mutual consent has been obtained between the Grantee and the Company in a writing signed by the Grantee and the Company. The termination of the Incentive Plan shall not affect the rights of the Board of Directors to exercise the powers granted to it by virtue of the Incentive Plan, with respect to Shares and/or Options which were granted in accordance with the Incentive Plan before the date of termination of the Incentive Plan.

16. Applicable
 Rules

The Incentive Plan, the grant of Shares and/or Options and the exercise of Options thereunder, and the Company's undertaking to sell and transfer Shares, shall be subject to all applicable laws, regulations, and rules of the State of Israel which has jurisdiction over the Company and the Grantee, including the registration of the Shares in accordance with the securities laws of the State of Israel, the Ordinance, and to those approvals by government offices or stock exchanges, as may be required. Nothing in the foregoing shall obligate the Company to register its shares in accordance with the securities laws of any jurisdiction.

17. Continued
 Employment

No provision in the Incentive Plan and the Grant Letter with the Grantee shall be interpreted as an undertaking and/or as an agreement on the part of the Company and/or an Affiliated Company to continue to employ the Grantee, nor shall any provision in such agreements and/or in the Incentive Plan be interpreted as granting the Grantee any right to continue to be employed by or to provide services to the Company and/or Affiliated Companies, or as restricting the right of the Company and/or an Affiliated Company to terminate the employment of any Grantee at any time.

18. Governing
 Law and Jurisdiction

The Incentive Plan shall be administered, interpreted, and enforced in accordance with the laws of the State of Israel applicable to agreements made and to be performed therein, without regard to principles of choice of law. The exclusive jurisdiction under the Incentive Plan shall be with the competent courts in Tel Aviv, Israel.

19. Taxation
 and Other Arrangements Concerning the Transfer of Shares to the Grantee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 The Grantee alone shall bear all tax liabilities in respect of the grant and sale of the Shares and/or the grant of the Options and the exercise of the Options, payment for Shares by virtue of the exercise of Options, or in respect of any other action (of the Company, and/or Affiliated Companies and/or the Trustee and/or the Grantee). The Company and/or Affiliated Companies and/or the Trustee shall deduct, in accordance with any law, regulations, and rules, all taxes, including withholding tax at source. The Grantee agrees to indemnify the Company and/or Affiliated Companies and/or the Trustee and to release them from any liability with respect to the payment of such taxes, interest, and penalties and from any other payment, including in respect of charges originating from the need to deduct tax or from the failure to deduct tax from any payment transferred to the Grantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 The Company and/or the Trustee, as the case may be, shall not transfer the share certificate to the Grantee until full payment of all mandatory payments in respect of the said Shares and/or Options.

20. Non-Exclusivity
 of the Incentive Plan

The adoption of the Incentive Plan by the Board of Directors shall not be interpreted as amending, modifying, or revoking any previously approved incentive arrangement or as limiting the authority of the Board of Directors to adopt other incentive arrangements as it may deem appropriate, including the grant of additional Shares and/or Options not by virtue of the Incentive Plan, and those arrangements may apply generally or in specific cases.

For the avoidance of doubt, prior grants of Shares and/or Options to Grantees in their employment agreements and not within the framework of a previous incentive plan shall not be considered approved incentive arrangements for the purposes of this section.

21. Multiplicity
 of Agreements

The terms of each Share and/or Option may differ from other Shares and/or Options, as the case may be, granted under the Incentive Plan simultaneously. The Board of Directors may grant more than one Share and/or Option to any Grantee during the term of the Incentive Plan, whether in addition to or as a substitute for one or more Shares and/or Options, as the case may be, which were granted to that Grantee.

22. Absence
 of Representation

This Incentive Plan and the Grant Letter shall not be deemed to create any representation on the part of the Company towards any Grantee regarding the Company's relationship, the value of its shares in general and/or the shares to be received from the exercise of the Options granted under the Incentive Plan in particular, including regarding the Company's business areas. By signing the Grant Letter, the Grantee undertakes that his/her consent given to the grant of the Shares and/or Options and the exercise of the said Options (should they be exercised), was not given and will not be given in any form or manner whatsoever on the basis of any representation or undertaking on the part of the Company or any of the directors serving on the Company's Board of Directors, officers of the Company, shareholders of the Company, or employees of the Company. Furthermore, the Grantee shall waive any claim of "non-conformity" and/or any cause of action or any other claim of any kind or type whatsoever in connection with the Shares and/or the underlying Options.

## Exhibit 4.2

**Exhibit 4.2**

**Compensation Policy for Office Holders**

**Gix Internet Ltd.**

(the "**Company**")

1. **Background - Purpose and Applicability of the Document** 

The compensation policy detailed in this document is a product that combines the provisions of the Companies Law with overarching principles that the Company's Board of Directors, following the recommendation of the Compensation Committee, has seen fit to adopt regarding the compensation of the Company's office holders. This policy is intended to establish and outline principles and guidelines for determining appropriate and reasonable compensation for the Company's office holders for their employment.

2. **Purpose of the Compensation Policy** 

The compensation policy is designed to assist in achieving the Company's goals and objectives, its work plans, and its long-term policy, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Increasing the motivation of office holders to promote the Company's business and profitability, with a long-term perspective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Recruiting and retaining senior managers with the ability to lead the Company to long-term business success, to achieve the Company's goals, and to cope with the challenges it faces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Structuring the discretion of the relevant organs of the Company regarding the determination of the terms of office and employment of the Company's office holders, based on defined principles and parameters, taking into account the Company's size, the nature of its activity, and its risk management policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Outlining the alignment between an office holder's contribution, according to their role in the Company, and the achievement of the Company's goals and the maximization of its profitability in the long term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Creating an appropriate balance between different compensation components – fixed versus variable, short-term versus long-term.

3. **Definitions** 

---

| | |
|:---|:---|
| **"Companies Law"** | **The Companies Law, 5759-1999** |
| "**Office Holder**" | As this term is defined in the Companies Law. |
| "**VP**" | Vice President, Deputy CEO, or any other management position holder reporting directly to the CEO in the Company or its subsidiaries. |
| "**Active Chairman of the Board**" | An active Chairman of the Board of Directors in the Company, who provides management and/or consulting services to the Company. |
| "**Terms of Office and Employment**" | As this term is defined in the Companies Law. |
| "**Compensation Regulations**" | The Companies Regulations (Rules Concerning Remuneration and Expenses for an External Director), 5760-2000. |

---

4. **Validity and Applicability of the Compensation Policy –** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. This compensation policy shall apply to office holders in the Company and/or its subsidiaries and shall be valid for a period of three years from the date it was approved by the general meeting of the Company's shareholders. Changes to the compensation policy will be brought for approval in accordance with the law applicable at that time. The Company has the right to change the compensation policy at any time, in accordance with the provisions of the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. If and to the extent that after the date of approval of the compensation policy in accordance with the provisions of the law, reliefs are established by law, regulations, or orders issued thereunder regarding the mandatory requirements or threshold conditions that must be included in a compensation policy as of its approval date, said reliefs shall be deemed included in the compensation policy, notwithstanding any other provision set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. Specific terms of office and employment for office holders in the Company, with their various components, will be agreed upon between the Company and the office holders on an individual basis and will be approved by the authorized organs of the Company in accordance with the provisions of the law and subject to the compensation policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. It is emphasized that this compensation policy and the principles and parameters set forth therein do not grant any right to anyone employed by the Company and/or by corporations under its control, and in particular, they do not grant any right to the Company's office holders, solely as a result of the adoption of the compensation policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. This compensation policy does not alter the provisions of agreements approved prior to the approval of this compensation policy.

5. **Supervision and Control of Office Holder Compensation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The Company's Board of Directors is responsible for the compensation policy and its implementation and for all actions necessary for this purpose, including the authority to interpret the provisions of the compensation policy in any case of doubt regarding its implementation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. Without derogating from the role of the Compensation Committee by law, the Compensation Committee will supervise the proper implementation of the compensation policy, in order to ensure that it is implemented in accordance with the goals of the compensation policy, its principles, and the parameters set forth therein, and will also examine, at least once every 3 years, and in particular if a material change has occurred in the circumstances that existed at the time of its determination or for other reasons, the extent to which the compensation policy is aligned with its purposes as detailed in section 2 above, and will recommend to the Company's Board of Directors its update, from time to time, as necessary.

6. **Guiding Principles for Examining and Determining Terms of Office and Employment for Office Holders in the Company** 

When determining compensation for an office holder in the Company, the following considerations, among others, will be examined:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Economic Considerations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1. Promoting the Company's goals, its work plans, and its policy, with a long-term perspective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2. Ensuring fair compensation for office holders, to strengthen the bond between them and the Company and to incentivize them to be partners in its success;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3. The salary alternatives offered in the market for a person with skills like those of the office holder in question or similar to them, and the Company's ability to retain existing personnel and recruit new personnel under competitive conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Company-Specific Considerations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1. Maintaining its financial stability while, to the extent possible, improving and expanding the scope of the Company's activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2. The need for quality personnel with experience in the Company's field of activity to ensure the Company meets its tasks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3. Ensuring appropriate compensation that will help in retaining existing office holders in the Company and in recruiting new quality office holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.4. Maintaining transparency and fairness towards shareholders and holders of other securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Office Holder's Data and Suitability for the Position

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1. Their suitability for the requirements of the position and the responsibility derived from it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2. Their education, professional skills, and specific expertise, if such is required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.3. Their experience, relevant professional achievements, both in the current position and in previous positions in the Company and/or in corporations under its control and/or in other places;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.4. Their expected contribution to promoting the Company's interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.5. The compensation of office holders of a similar rank, position, and level of responsibility and the salary of the previous office holder who held the position (if relevant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.6. The existing ratio between the cost of the terms of office and employment of the office holders and the average and median salary cost of the rest of the Company's employees and employees of companies under its control, excluding office holders in the Company, as well as the maximum ratio between the cost of the terms of office and employment of the office holders and the average and median employment cost of the rest of the Company's employees and employees of companies under its control.

7. **Overall Compensation Structure** 

The compensation framework structure for the Company's office holders may, but is not required to, include one or more of the following compensation components:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. Fixed compensation (base salary or management fees, including social benefits and ancillary components);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Variable compensation – bonuses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Variable compensation – equity-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Retirement terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. Exemption, insurance, and indemnification.

When discussing any compensation component (even when brought for discussion separately), the entire compensation package and its total cost will be taken into account, with reference to the ratio between the different compensation components.

8. **Fixed Compensation** 

The fixed compensation detailed below refers to the terms of office and employment of an office holder, except for serving as a director, but including for serving as an Active Chairman of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. Considerations for Determining Fixed Compensation

The fixed compensation, i.e., monthly salary (in annual terms) or the fixed remuneration paid to or for the office holder on an ongoing basis, which includes benefits, social benefits, and ancillary conditions, as detailed in section 8.5 below, is for the time they invest in performing their role in the Company and for performing the routine day-to-day tasks of the position. The fixed compensation will be determined taking into account the considerations and data detailed in section 6 above, the customary conditions in the labor market and in the Company, and in relation to benefits and ancillary conditions and compliance with the provisions of the law regarding the employment of employees.

If necessary, for the purpose of determining the fixed compensation for a new office holder or when examining an update to the fixed salary of an existing office holder, if the Compensation Committee and the Board of Directors deem it appropriate, a comparison will be made to the customary consideration in the relevant market in other comparable companies and for similar positions in similar companies and/or to relevant data from public salary surveys or other reliable published data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. General Conditions

The fixed compensation, including benefits and ancillary conditions, will be approved before the employment of the office holder in the relevant period or shortly after its commencement, without derogating from the Company's right to update the fixed compensation terms according to its needs, subject to obtaining the required approvals by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. Fixed Compensation Cap

The following is the cap for fixed compensation for office holders (gross), in terms of a full-time monthly position (100%) [^footnote1]:

---

| | |
|:---|:---|
| **Office Holder** | **Gross Fixed Compensation Cap in NIS Thousands¹** |
| **Active Chairman of the Board** | 60 |
| **CEO or CEO of a Subsidiary** | 60 |
| **VP** | 50 |

---

If any of the office holders serves in a less than full-time position, the maximum cost of their fixed compensation shall not exceed the proportional part appropriate for an office holder in their position, according to the portion of the position they hold.

It is clarified that a deviation of up to 10% above the fixed compensation caps detailed in the table in this subsection shall not be considered a deviation or departure from the provisions of this compensation policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. Linkage

The Company shall have the option to link the fixed remuneration of office holders to the increase in the consumer price index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. Benefits and Ancillary Conditions

The Company may, but is not obligated to, grant the office holders in the Company the following ancillary conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.1. Social rights and ancillary conditions in accordance with the provisions of the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.2. Additional customary benefits, such as: advanced study fund (keren hishtalmut), managers' insurance, loss of work capacity insurance, communication expenses (mobile phone, daily newspapers, internet, etc.), vehicle (including reimbursement of vehicle expenses and gross-up), vacation and sick days beyond what is stipulated by law, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.3. Reimbursement of expenses, including travel expenses, against presentation of an invoice, and in accordance with the Company's procedures, as they may be.

It is emphasized that the conditions detailed above do not constitute a closed list and they reflect the main ancillary conditions customary in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. Change in the Fixed Compensation Terms of VPs

The Company's CEO shall be entitled to approve a non-material change in the terms of office of VPs, provided that their terms of office and employment are consistent with the Company's compensation policy.

For this purpose, a change in an annual scope of up to 10% (and not more than 20% cumulatively throughout the policy period) in all compensation components, compared to the existing terms of office of the said office holder, shall not be considered a material change in compensation.

9. **Variable Compensation** 

The variable compensation components are designed to achieve several goals:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Conditioning part of the compensation for office holders on the achievement of business goals and objectives which, in the long term, will maximize value for the Company's shareholders and create a common interest for office holders and shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. Increasing the motivation of office holders to achieve the Company's goals over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. Aligning part of the Company's salary expenses with its performance and increasing its financial and operational flexibility.

10. **Short-Term Variable Compensation - Annual Bonus** 

The Company's office holders may be eligible for an annual bonus as detailed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. Principles

Annual bonuses for office holders will be calculated according to an annual bonus plan, if such is approved by the Compensation Committee and the Board of Directors. The bonus plan will be determined once a year, so that eligibility for compensation under the annual bonus plan will be for meeting the goals/results of that year of activity.

---

| | |
|:---|:---|
| **Rank** | **Maximum Bonus (including discretionary component, by number of monthly salaries) [^footnote2]** |
| CEO or CEO of a Subsidiary | Up to 6 times the maximum gross fixed compensation cap (section 8.3 above) |
| Active Chairman of the Board | Up to 6 times the maximum gross fixed compensation cap (section 8.3 above) |
| VP in the Company or in the Subsidiaries | Up to 4 times the maximum gross fixed compensation cap (section 8.3 above) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. Definition of Metrics and Targets for the Bonus Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1. The bonus plan for office holders in the Company shall be based on targets that will be determined by the Compensation Committee and the Board of Directors in advance each year, and payment of the bonus will be conditional on meeting at least 60% (or a higher rate to be determined by the Compensation Committee and the Board of Directors) of the set targets. The targets under the annual bonus plan may include company metrics, measurable personal metrics, and supervisor's discretion, or any part thereof as detailed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1.1. Company Metrics: Economic metrics for the Company's performance which will include at least one and no more than three financial metrics from the following list: Company revenues, gross profit, operating profit, EBITDA, net profit, sales growth, order backlog, reduction in losses, meeting annual budget targets [^footnote3], all in accordance with the consolidated financial statements.

The total weight given to the Company's targets will be between 40% and 100% of the total annual bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1.2. Measurable Personal Targets: These targets will be determined on a personal basis by the CEO or CEO of the subsidiaries (for office holders at the VP level in the Company or in the subsidiaries) and by the Compensation Committee and the Board of Directors (with respect to the CEO and CEO of the subsidiaries), and will be based on measurable parameters in the area of professional responsibility of each office holder in the Company. The measurable personal targets will include up to three measurable personal targets.

The weight given to the measurable personal targets will be between 40% and 60% of the total annual bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.1.3. Supervisor's Discretion: The performance evaluation component of office holders at the VP level will be carried out by the Company's CEO or the CEO of the subsidiaries (as applicable). The performance evaluation of each office holder will relate to their contribution to the Company during the year for which the bonus is paid, separate from the company metrics and personal metrics.

The weight given to the supervisor's discretion shall not exceed 30% of the total bonus and in any case shall not exceed 3 monthly salaries.

The metrics, targets, and weights used for determining the annual bonus, if determined, will be determined by the Company's CEO or the CEO of the subsidiaries (as applicable) each year for VPs and by the Compensation Committee and the Board of Directors with respect to the Company's CEO or the CEO of the subsidiaries.

Notwithstanding the foregoing, with the approval of the Compensation Committee and the Company's Board of Directors, the Company may approve the payment of an annual bonus to VPs, based solely on the recommendation of the Company's CEO or the CEO of the subsidiaries (as applicable), provided that the total annual bonus, which includes a discretionary bonus and a bonus according to the bonus plan, if such a bonus plan is established, does not exceed what is stated in the table in section 10.1 above.

The Compensation Committee may grant the CEO or the CEO of the subsidiaries a bonus not exceeding 3 salaries, based on non-measurable criteria in accordance with the provisions of the First Schedule A to the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.2. The payment of the annual bonus may be given in whole or in part in cash or in Company shares (including options), at the discretion of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2.3. The bonus plan for an Active Chairman of the Board shall be based on Company metrics and measurable personal targets, which will be determined by the Compensation Committee and the Board of Directors annually in advance, and shall be in accordance with the meeting of said targets and in accordance with the provisions of the First Schedule A to the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. Signing Bonus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.1. The Compensation Committee and the Board of Directors shall have the authority to approve up to 3 times the monthly salary cost/monthly management fees (as will be determined for that office holder) as a signing bonus for a new office holder whose recruitment to the Company is of special importance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3.2. The Company shall be entitled to determine that the office holder will be required to repay to the Company all or part of the signing bonus granted to them, if the office holder does not complete a minimum term of office of at least 12 months in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. One-Time Bonus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.1. The Company's Board of Directors, upon the recommendation of the Compensation Committee, shall be entitled to grant a one-time bonus to an office holder for an event or events that are outside the ordinary course of the Company's business, or for exceptional performance by an office holder that has a material positive impact on the Company's business, which are not included in the targets as detailed in section 10.2 above. The amount of the one-time bonus shall not exceed a multiple of three times the amount of the maximum gross fixed compensation in the table in section 8.3 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.2. In any case, the actual payment of the bonus for meeting targets, according to the provisions of section 10.2 above, or for the one-time bonus, according to the provisions of section 10.4 above, will be made in accordance with the provisions of the law, and will be brought for the approval of the general meeting if necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4.3. Should it become clear, after the payment of the annual bonus or the one-time bonus, as the case may be, that the bonus calculation was based on data that turned out to be erroneous and was restated in the Company's financial statements, during a period of three consecutive periodic financial statements after the date of payment of the bonus, the office holders shall return to the Company the portion of the bonus paid to them, which was based, as stated, on erroneous data, within six (6) months from the date of publication of the restated financial statements. The amount to be returned by the office holders will be linked to the consumer price index from the date of publication of the restated statements until the day of their actual return to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. Eligibility for Bonus - Minimum Employment Period

An office holder will be eligible for a bonus provided that they have worked in the Company and/or in a subsidiary for a minimum period of 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. Determining the Variable Bonus Budget

The total annual budget for bonuses for office holders in the Company will be determined according to the sum of the maximum bonuses of all office holders.

At the end of each year, the extent of meeting the set targets, if set, for each of the office holders will be calculated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6.1. A lower performance threshold will be set (a minimum percentage of meeting targets) up to which the office holder will not be paid any bonus at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6.2. A bonus cap will be set which will constitute the bonus amount for payment, in a scope not exceeding the total maximum bonus, which will be paid for meeting the maximum performance level;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6.3. For each performance level between the lower performance threshold and the bonus cap, the bonus amount will be calculated on a linear basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. Actual Bonus Approval Process

The bonuses planned for actual payment to office holders will be brought for the approval of the Compensation Committee and the Board of Directors immediately after the approval of the Company's annual financial statements for the year for which the bonus is paid.

The Compensation Committee and the Board of Directors shall be entitled to reduce the annual bonus of an office holder at their discretion, taking into account the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.1. The extent of the office holder's contribution to the Company's business development beyond their specific responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.2. The quality and speed of the office holder's response to crises and unexpected events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7.3. The overall managerial performance of the office holder, employee motivation, and leadership.

In addition, the Board of Directors shall be entitled at any time not to grant or to reduce the annual bonus.

The annual bonuses of the office holders, as approved by the Compensation Committee and the Board of Directors, will be paid to the office holders together with the first salary paid after the approval of the annual bonuses by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8. Possibility of Repaying Amounts from a Bonus Paid to Office Holders

At the time of payment of the bonus, the office holders will sign a commitment to repay to the Company the bonus amount or part of it in the event that it becomes clear in the future that the bonus calculation was based on data that turned out to be erroneous and was restated in the Company's financial statements during a period of three consecutive periodic financial statements after the date of the bonus approval.

11. **Long-Term Variable Compensation - Equity-Based Compensation** 

The purpose of equity-based compensation is to create an alignment of interests between the office holders and the Company's shareholders. Due to the long-term nature of equity-based compensation plans, they support the Company's ability to retain its senior managers in their positions for a long period. Seeing the advantages inherent in equity-based compensation plans, the Company shall be entitled to offer its office holders, including directors, to participate in the Company's equity-based compensation plan, as it may be in effect from time to time, and to offer the office holder securities including shares, restricted shares, and restricted share units, the exercise of which does not involve the payment of an exercise price by the office holder (hereinafter: "**Equity Compensation Units**") as well as options or other securities convertible into Company shares (together, "**Options**"), according to the rules detailed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. Main Conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.1. The annual value of equity-based compensation for each office holder, at the time of its grant, shall not exceed the following cap:

---

| | |
|:---|:---|
| **Position** | **Cap on Value of Equity-Based Compensation at Grant Date** |
| **Chairman of the Board** | Up to 2 times the gross fixed compensation cap in NIS thousands set in section 8.3 above, for each year included in the share-based compensation |
| **Member of the Board of Directors** |  |
| **CEO** |  |
| **VP** |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.2. The value of the options at their grant date, in accordance with the Black & Scholes formula or in accordance with the binomial model, shall not exceed 200% of the gross fixed compensation cap for the office holder, for each year included in the equity-based compensation. In the case of a director (including an Active Chairman of the Board), the value of the options at their grant date, in accordance with the Black & Scholes formula or in accordance with the binomial model, shall not exceed 200% of the total annual fixed compensation of the Active Chairman of the Board, for each year included in the equity-based compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.3. The exercise price to be set for the options will be determined according to one of the following mechanisms: (1) the average price of the Company's share in the period between thirty (30) and ninety (90) trading days prior to the date of approval of the grant by the Board of Directors (hereinafter in this section: "**the Average Price**"); (2) the price determined for the Company's share in the last capital or debt raising conducted by the Company, provided that the number of offerees (who are not interested parties in the Company) in such raising is not less than five; or- (3) at a rate to be determined at the grant date which shall not be less at the grant date than the Average Price; all according to the decision of the Board of Directors and in accordance with the stock exchange rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.4. The vesting period of the options to be granted to office holders shall not be less than three years, with vesting being quarterly so that at the end of each quarter, 1/12 of the options allocated to the office holders will vest. It is clarified that the vesting period will apply as long as the office holder is employed by the Company. The Compensation Committee and the Board of Directors may determine that the options allocated to the office holder, all or part of them, will be subject to a vesting period dependent on quantitative and pre-determined targets (such as sales, revenues, profit, etc.), which will be measured according to its financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.5. An office holder will be entitled to options only after serving for one year in the Company and/or in a subsidiary, meaning that upon completion of one year of their tenure, the first four tranches will vest. If they have worked in the Company for less than a year, the office holder will not be entitled to any vesting of the options granted to them, unless the Compensation Committee and the Board of Directors have determined, with respect to a quantity not exceeding one-third of the total quantity of options allocated to the office holder, that they will be exercisable from their allocation date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.6. The grant of Equity Compensation Units shall not be subject to the payment of any exercise price by the offeree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.7. The maximum cumulative dilution resulting from all grants made to employees and office holders in the Company shall not exceed 20% of the Company's share capital on a fully diluted basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.8. In the event that the employer-employee relationship between the office holder and the Company has terminated, the expiration date of the vested options shall not be less than 90 days after the date of termination of the employer-employee relationship and shall not exceed a period of 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.9. The Company's Board of Directors will have the discretion to accelerate the vesting of the options allocated to the Company's office holders, including upon the occurrence of the following events:

● Sale/transfer
 of control in the Company to a third party;

● Merger
 of the Company, as this term is defined in the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.10. It is emphasized that the foregoing does not derogate from what is stipulated in the employment agreement(s) signed and duly approved with the Company's office holders prior to the approval of this policy.

12. **Ratio Between Variable and Fixed Compensation** 

The maximum short-term variable component paid by the Company in any calendar year in accordance with this compensation policy to the Company's CEO and to another office holder (including an Active Chairman of the Board), shall not exceed 33% of the total annual compensation cost of the office holder's terms of office and employment.

13. **Exemption, Indemnification, and Insurance** 

In accordance with the Company's articles of association, its office holders shall be entitled to exemption, indemnification, and insurance for their liability, if and to the extent approved by the Company as required by law and under the terms and scope approved by the Company. For this purpose, the Company shall be entitled to enter into a directors' and office holders' insurance policy for the Company, as they may serve in the Company from time to time, provided that the policy is approved within the following limits: (a) the deductible and the annual premium to be determined will be in accordance with the insurance market conditions as they may be at that time, in accordance with the advice the Company receives from its insurance consultants and provided they are not likely to materially affect the Company's profitability, assets, or liabilities, (b) coverage for an event and for a period of up to 25 million US dollars.

It is clarified that, assuming this policy is approved by the Company's general meeting, entering into insurance as detailed above, within the limits detailed above, will not require re-approval by the general meeting as long as the compensation policy is in effect and the actual engagement is approved by the Compensation Committee and the Company's Board of Directors once a year.

The Company shall also be entitled to grant office holders and directors a letter of indemnification in which it will be determined that the total scope of indemnification shall not exceed 25% of the Company's equity at the time the indemnification is granted or NIS 25 million, whichever is higher.

Subject to any law, the Company will strive to grant each office holder a letter of exemption from liability, in the wording as will be customary in the Company from time to time.

As long as the Company has a valid directors' and office holders' insurance policy, all directors or office holders who have left the Company will be included in it for up to 7 years from the date of their departure, subject to the condition that the policy terms will not be inferior to the terms of the policy that existed in the Company prior to their departure. In the event that the Company ceases in the future to enter into an insurance policy to cover the liability of directors and office holders or if the terms of the policy to be renewed after their departure are inferior to those that existed prior to their departure, the Company shall be entitled to purchase for the directors and office holders a Run-off insurance for the remaining period of up to 7 years from the date of the director's or office holder's departure and on terms not inferior to the policy that existed in the Company prior to their departure, and at a cost not exceeding 4 times the cap on the cost of an annual premium for such directors' and office holders' insurance.

14. **Termination of Office Terms** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. Prior Notice

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.1. The prior notice period for each office holder will be determined by the Compensation Committee and the Company's Board of Directors, prior to signing the employment agreement with the office holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.2. During the prior notice period, the office holder will be required to continue to fulfill their role, unless the Company's Board of Directors decides to release them from this obligation. In such a case, the office holder will be entitled to the continuation of all terms of office and employment without any change to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.3. Payment for the prior notice period shall not exceed the following:

---

| | | |
|:---|:---|:---|
| **Rank** | **Seniority of up to 1 year** | **Seniority of over 1 year** |
| **CEO** | Up to 3 salaries | Up to 6 salaries |
| **VP** | Up to 2 salaries | Up to 3 salaries |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.4. The salary to be paid during the prior notice period will be calculated according to the last salary (and according to the fixed compensation only, i.e., not including bonuses paid to the office holder, but including ancillary social benefits) paid to the office holder before the date of their dismissal/resignation in a manner that entitles them to severance pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. Retirement Grant

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1. The Compensation Committee and the Company's Board of Directors shall be entitled to approve the payment of a retirement grant to office holders in the Company upon their retirement, provided that the total retirement grant does not exceed the following:

---

| | | | |
|:---|:---|:---|:---|
| **Rank** | **Seniority of up to 2 years** | **Seniority of between 2 and 4 years** | **Seniority of over 4 years** |
| **CEO** | Up to 1 salary | Up to 2 salaries | Up to 3 salaries |
| **VP** | Up to 1 salary | Up to 2 salaries | Up to 3 salaries |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2. As part of the considerations whether to grant a one-time retirement grant as stated above, the Compensation Committee and the Board of Directors will examine, based on the recommendation of the Chairman of the Board (in the case of a CEO) or the Company's CEO (in the case of a VP), the extent of the office holder's contribution to the Company and to the promotion of the goals it has set for itself, with an emphasis on specific activities and projects they managed or were in charge of, the extent to which they met personal targets set for them, if set, and the extent to which they met the targets defined in the Company's budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.3. The retirement grant will be paid at the time of termination of the employer-employee relationship, or at the end of the engagement with the office holder, as the case may be, and will be paid based on the last salary (and according to the fixed compensation only, i.e., not including bonuses paid to the office holder) paid to the office holder before the date of their dismissal/resignation in a manner that entitles them to severance pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.4. In any case, the payment of the retirement grant together with the prior notice payment shall not exceed 9 salaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. It is hereby clarified that the provisions of sections 14.1 and 14.2 above, regarding the payment of prior notice or the payment of a retirement grant, do not derogate from the employment/service agreements signed between the Company and its office holders prior to the determination of the compensation policy.

15. **Directors' Remuneration** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. The directors in the Company (except for those who fill another role in the Company and except for an Active Chairman of the Board, in the event that he receives other compensation in accordance with the terms of the compensation policy) will be entitled to remuneration in accordance with the Compensation Regulations, i.e., an annual remuneration and a participation remuneration that will not exceed the maximum amount according to the Compensation Regulations, in accordance with the Company's equity level as defined in the Compensation Regulations (as it may be from time to time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. A member of the Board of Directors will be entitled to a fixed remuneration different from that of the other members of the Board of Directors serving in the Company only when he serves as an 'active board member', meaning that his areas of responsibility and his role also include ongoing work in the Company, such as meetings with investors, clients, active involvement in the day-to-day life of the Company, etc., all in accordance with the employment/service agreement that the Company has signed/will sign with him. In any case, the position scope of an active board member will not be less than a 20% position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. The Company shall be entitled to grant to the directors in the Company, including the external directors, to whom the provisions of the Compensation Regulations will apply, equity-based compensation. The scope of the equity-based compensation for a director will not exceed the equity-based remuneration paid to an Active Chairman of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. The directors in the Company may be entitled to office holders' liability insurance, a letter of indemnification, and a letter of exemption as detailed in section 13 above.

It is clarified that for an office holder who will be employed as a service provider, the fixed components, including the base salary and ancillary conditions as determined in this compensation policy, will be converted to equivalent management fees.

In terms of gross salary.

The Compensation Committee and the Board of Directors shall be entitled to neutralize one-time events that are mainly accounting in nature and do not necessarily reflect the office holder's performance.

[^footnote1]: It is clarified that for an office holder who will be employed as a service provider, the fixed components, including the base salary and ancillary conditions as determined in this compensation policy, will be converted to equivalent management fees.

[^footnote2]: In terms of gross salary.

[^footnote3]: The Compensation Committee and the Board of Directors shall be entitled to neutralize one-time events that are mainly accounting in nature and do not necessarily reflect the office holder's performance.

## Exhibit 4.3

**Exhibit 4.3**

**Gix Internet Ltd.**

**("The Company")**

**Letter of Exemption and Indemnification**

---

| |
|:---|
| **To** |
| Name of the Indemnified Party |

---

**WHEREAS** the Company's Articles of Association permit the Company to exempt and indemnify, in advance and retroactively, the directors and office holders of the Company;

**AND WHEREAS** the authorized organs of the Company have adopted the resolutions required by law in order to approve the provision of an undertaking by the Company to exempt and indemnify, in advance and retroactively, office holders in the Company for any liability or expense that may be imposed on them due to an act they performed or will perform by virtue of their being office holders in the Company and/or in another corporation, in accordance with the terms detailed in this Letter of Exemption and Indemnification below;

**AND WHEREAS**: You have served/are serving and/or may serve as an office holder in the Company and/or you have served/are serving and/or may serve and/or be employed on behalf of the Company in any other corporation in which the Company holds any securities, directly and/or indirectly through other corporations (hereinafter: "**Another Corporation**");

**THEREFORE, THE COMPANY HEREBY CONFIRMS AND IRREVOCABLY UNDERTAKES TOWARDS YOU, SUBJECT TO THE PROVISIONS OF ANY LAW AND THE PROVISIONS OF THIS LETTER OF EXEMPTION AND INDEMNIFICATION, AS FOLLOWS:**

1. **Definitions** 

In this Letter of Exemption and Indemnification, each of the following terms shall have the meaning ascribed to it, unless expressly stated otherwise.

---

| | |
|:---|:---|
| **"Administrative Enforcement**<br> **Proceeding"** | **A proceeding under Chapters H3 (Imposition of a Monetary Sanction by the Securities Authority), H4 (Imposition of Administrative Enforcement Measures by the Administrative Enforcement Committee) or I1 (Arrangement for Avoiding or Discontinuing Proceedings, Subject to Conditions) of the Securities Law; a proceeding under Section D of Chapter Four of Part Nine of the Companies Law; a proceeding under Chapters J, J1 and K1 of the Joint Investment Trust Law, 5754-1994; a proceeding under Chapters G1, G2 and H1 of the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995; a proceeding under Chapter I1 of the Supervision of Financial Services (Insurance) Law, 5741-1981; a proceeding under Chapter H of the Supervision of Financial Services (Provident Funds) Law, 5765-2005; a proceeding under Chapter G1 of the Economic Competition Law, 5748-1988; a proceeding under the Increased Enforcement of Labor Laws Law, 5772-2012; and subject to any law, any similar or other administrative enforcement proceeding, whatever its name may be, whether under existing law or future legislation - for which indemnification is permitted by law - to the extent, for the events and under the conditions set forth in that law.** |
| **"Legal Proceeding" or "Claim"** | Including a civil claim, a criminal claim, a derivative action, a class action, an administrative enforcement proceeding, settlement applications and creditors' claims. |
| **"The Companies Law"** | The Companies Law, 5759-1999; |
| **"The Securities Law"** | The Securities Law, 5728-1968 |
| **"Act"** | Including a decision and/or omission, during the term of office of the office holder in the Company and/or his term of office or employment on behalf of the Company in Another Corporation. |

---

2. **Interpretation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The preamble and appendices to this Letter of Exemption and Indemnification form an integral part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. The division of this Letter of Exemption and Indemnification into sections and the provision of headings to the sections are for convenience only and shall not be given any meaning in its interpretation.

3. **The Undertaking to Indemnify** 

Subject to the provisions of any law, the provisions of the Company's Articles of Association and the provisions of this Letter of Exemption and Indemnification, the Company hereby irrevocably undertakes to indemnify you for any liability or expense as detailed in Section 4 below, which is imposed on you or which you incur as a result of your acts and/or their derivatives by virtue of your being an office holder in the Company and/or an employee or office holder and/or a service provider on behalf of the Company in Another Corporation.

4. **Grounds for Indemnification** 

The undertaking to indemnify as stated in Section 3 above shall apply to any liability or expense imposed on you as detailed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. A monetary liability that was and/or will be imposed on you in favor of another person pursuant to a judgment, including a judgment given in a compromise or an arbitrator's award approved by the court, to the extent that such liability was imposed on you due to acts directly and/or indirectly related to one and/or more of the types of events detailed in the Addendum to this Letter of Exemption and Indemnification (hereinafter: the "**Addendum**" and the "**Determining Types of Events**"), and subject to the provisions of Section 5.1 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. Reasonable litigation expenses, including attorneys' fees, that you incur as a result of an investigation or proceeding conducted against you by an authority authorized to conduct an investigation or proceeding, and which concluded without an indictment being filed against you and without a monetary liability being imposed on you as an alternative to a criminal proceeding, or which concluded without an indictment being filed against you but with the imposition of a monetary liability as an alternative to a criminal proceeding for an offense that does not require proof of criminal intent or in connection with a monetary sanction.

In this subsection, "**conclusion of a proceeding without the filing of an indictment in a matter in which a criminal investigation was opened**" and "**monetary liability as an alternative to a criminal proceeding**" - shall have their meaning in Section 260(a)(1A) of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. Reasonable litigation expenses, including attorneys' fees, that you incur or are charged with by a court, in a proceeding filed against you by the Company or on its behalf, or by Another Corporation or another person, or in a criminal charge of which you are acquitted, or in a criminal charge in which you are convicted of an offense that does not require proof of criminal intent.

In this section, "**another person**" - including in the case of a claim filed against an office holder by way of a derivative action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. Expenses, including reasonable litigation expenses, and including attorneys' fees, that you incurred in connection with an administrative enforcement proceeding conducted in your matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. A payment to a victim of a violation as stated in Section 52ND(a)(1)(a) of the Securities Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. Any other liability or expense permitted or that will be permitted from time to time for indemnification under law.

5. **Maximum Indemnification Amount** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The amount of indemnification that the Company shall pay to all office holders in the aggregate, under all letters of indemnification that have been and/or will be granted to office holders and employees of the Company who serve in the Company or who will serve or be employed at the Company's request as office holders or as employees or as service providers in other corporations, for a liability or expense imposed on them in accordance with the provisions of Section 4.1 above, shall not exceed the higher of (1) 25% of the Company's equity according to the latest audited or reviewed (as applicable) consolidated financial statements published by the Company before the occurrence of the event for which indemnification is required under this Letter of Exemption and Indemnification or (2) NIS 25 million, for each of the said office holders, employees and service providers and for all of them together, for a single event and in the aggregate for all events (hereinafter: the "**Maximum Indemnification Amount**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. It is hereby clarified that the payment of the aforementioned indemnification amount shall not prejudice your right to receive insurance proceeds that the Company will receive for you or that you will receive from time to time, if you receive them, under any directors' and office holders' liability insurance policy of the Company, subject to the provisions of Section 5.4 below and provided that you are not paid double compensation for the same liability or expense that is indemnifiable as stated in Sections 3 and 4 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. If and to the extent that the total indemnification amounts that the Company is required to pay for a cause of action subject to Section 4.1 above, plus the total indemnification amounts that the Company has paid up to that date for a cause of action as stated in Section 4.1 above under the letters of indemnification it has granted, exceeds the Maximum Indemnification Amount or the balance of the Maximum Indemnification Amount (as it may exist at that time), the Maximum Indemnification Amount or its balance, as the case may be, shall be divided among the office holders who are entitled to indemnification for claims they have submitted to the Company for a cause of action as stated in Section 4.1 under the letters of indemnification, and which have not been paid to them before that date (hereinafter: the "**Entitled Office Holders**"), such that the indemnification amount for the said cause of action that each of the Entitled Office Holders will actually receive, shall be calculated according to the ratio between the indemnification amount for the said cause of action due to each of the Entitled Office Holders and the aggregate indemnification amount for the said cause of action due to all Entitled Office Holders at that date for these claims, were it not for the limitation of the Maximum Indemnification Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5. In the event that you receive or are entitled to receive indemnification from the insurer of the insurance policy for the event subject to the indemnification, the indemnification shall be provided in the amount of the difference between the amount of the monetary liability imposed on you and the legal expenses, and the amount received from the insurer for that matter, provided that with respect to indemnification for a cause of action as stated in Section 4.1 above, the indemnification amount undertaken by the Company shall not exceed the Maximum Indemnification Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6. Interim Payments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.1. Upon the occurrence of an event for which you may be entitled to indemnification under this Letter of Exemption and Indemnification, the Company shall make available to you, from time to time, the funds necessary to cover the expenses and other payments of various kinds involved in handling that legal proceeding, including in investigation proceedings, such that you will not be required to pay or finance them yourself, all subject to the terms and provisions of this Letter of Exemption and Indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.2. As part of its undertaking as stated above, the Company shall also provide securities that may be required or guarantees that you may have to provide pursuant to interim decisions of a court (in a non-criminal proceeding) or an arbitrator (hereinafter: the "**Securities**"), including for the purpose of replacing attachments that may be imposed on your assets, provided that the total outstanding Securities, including forfeited securities, plus amounts you have received or will receive under this Letter of Exemption and Indemnification for a cause of action as stated in Section 4.1 above, shall not exceed the Maximum Indemnification Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7. Conditions for Indemnification

Without derogating from the foregoing, the undertaking to indemnify under this Letter of Exemption and Indemnification is also subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.1. Notice of Indemnification

You must notify the Company in writing of any legal proceeding initiated against you or of any written warning or written threat delivered to you that such a proceeding will be initiated against you in connection with any event for which indemnification may apply (hereinafter, jointly and severally: "**Legal Proceeding**"), and of circumstances brought to your attention that may lead to the initiation of a legal proceeding against you, within a reasonable time after you first become aware thereof, and at a time that allows a reasonable time for a response to that proceeding, as required by any law (hereinafter: the "**Notice of Indemnification**"), and you shall transfer to the Company, or to whomever it notifies you, without delay, any document delivered to you in connection with that proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.2. Handling the Defense

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.2.1. Provided that this does not contradict the provisions of the relevant law or the terms of an office holders' liability insurance policy purchased by the Company, the Company shall be entitled to assume the handling of your defense in a Legal Proceeding and/or to entrust said handling to any attorney the Company chooses for this purpose and whose identity will be notified to you in advance.

The Company and/or the said attorney shall provide you with regular reports on the progress of the proceeding and shall consult with you regarding its management. The attorney so appointed shall owe a duty of loyalty to the Company and to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.2.2. If within 10 days from the date of receipt of the Notice of Indemnification by the Company, the Company does not assume the handling of your defense in the said Legal Proceeding and/or if you object to your representation by the Company's attorney for reasonable grounds or for fear of a conflict of interest between you and the Company and/or between you and another office holder in the Company, you shall be entitled to entrust your representation to an attorney of your choice, whose details will be provided by you to the Company in advance, and the provisions of this Letter of Exemption and Indemnification shall apply to the reasonable expenses you will bear for the appointment of such an attorney and the handling by him. Should the Company not approve the fee of the attorney chosen by you, after examining its reasonableness, you and the Company shall appoint an agreed-upon adjudicator (and if you do not agree on an agreed-upon adjudicator, one shall be appointed by the head of the Tel Aviv District Committee of the Israel Bar Association), whose decision in this matter shall be final. Should the fee amount of the attorney chosen by you be only partially approved, you shall be entitled to receive from the Company that approved amount, and to bear the remainder of the fee yourself and at your own expense.

Notwithstanding the provisions of this section, if the Company's directors' and office holders' insurance policy applies to that matter, the office holder and the Company shall act in accordance with the provisions of the policy in all matters relating to disagreements with the insurer regarding the identity of the representing counsel, if the provisions of the policy so require, such that entrusting the handling to the other representing counsel will not allow the insurer to be released from its obligation under the policy or to reduce it in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.2.3. The Company shall not be entitled to bring the dispute subject to the aforesaid Legal Proceeding to a decision by way of arbitration, conciliation or mediation, except with your prior written consent thereto, provided that you shall not refuse to give this consent except for reasonable grounds that will be provided to the Company in writing. For the avoidance of doubt, it is hereby clarified that even if the dispute in the Legal Proceeding is transferred for resolution by way of arbitration, conciliation, mediation or any other way, the Company shall bear the related expenses within the framework of the expenses of this Letter of Exemption and Indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.2.4. The Company shall not be entitled to bring the Legal Proceeding to an end by way of a compromise and/or settlement and/or to agree to a compromise and/or settlement as a result of which you will be required to pay amounts for which you will not be indemnified under this Letter of Exemption and Indemnification, and which will not be paid under an office holders' liability insurance purchased and/or to be purchased by the Company, except with your prior written consent to the compromise reached.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.3. Cooperation with the Company

Subject to the provisions of Section 5.6 above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.3.1. At the Company's request, you shall sign any document that authorizes it and/or any such attorney to handle your defense in a Legal Proceeding on your behalf and to represent you in all related matters in accordance with the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.3.2. You shall cooperate with the Company and/or with any attorney as aforesaid, in any reasonable manner required of you by any of them in the course of their handling of that Legal Proceeding, and you shall also comply with all instructions of the insurers under any office holders' liability insurance policy that the Company may enter into in connection with the defense in a Legal Proceeding, provided that the Company shall arrange for the coverage of all your expenses involved therein, such that you will not be required to pay or finance them yourself, all subject to the provisions of this Letter of Exemption and Indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.4. Coverage of Liabilities

Whether or not the Company acts as detailed in Section 5.6.2 above, it shall arrange for the coverage of all expenses and other payments of various kinds mentioned in Section 4 above, such that you will not be required to pay or finance them yourself, all subject to the provisions of this Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.5. Non-Applicability of Indemnification

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.5.1. The indemnification in connection with any Legal Proceeding against you, as stated in this Letter of Exemption and Indemnification, shall not apply to any amount due from you to the plaintiff following a compromise or arbitration, unless the Company agrees in writing and in advance to that compromise or to the holding of that arbitration, as the case may be, but the Company shall not withhold its consent as aforesaid except for specified reasonable grounds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.5.2. Furthermore, the indemnification shall not apply in the case of your admission to a criminal charge for an offense that does not require proof of criminal intent, unless your admission received the Company's prior written consent thereto, provided that such indemnification is permitted under any law. The Company shall not withhold its consent as aforesaid except for specified reasonable grounds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.6. Non-Applicability of Indemnification in Cases of Indemnification and/or Insurance by Another Party

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.6.1. The Company shall not be required to pay under this Letter of Exemption and Indemnification amounts for any event to the extent that such amounts were actually paid to you or for you or in your place in any way under an insurance policy or any indemnification undertaking of any other person other than the Company. For the avoidance of doubt, it is clarified that the indemnification amount under this Letter of Exemption and Indemnification shall apply in excess of (and in addition to) the amount that will be paid (if and to the extent paid) under such insurance and/or indemnification, provided that you are not paid double compensation for a liability or expense that is indemnifiable as stated in Sections 3 and 4 above, and provided that with respect to indemnification for a cause of action as stated in Section 4.1 above, the indemnification amount for which the Company is liable shall not exceed the Maximum Indemnification Amount. This section does not derogate from the rights of the office holder with respect to the Company's bearing of the deductible specified in the policy and/or the transfer of insurance proceeds received by the Company from insurers for the office holder's liability and/or legal expenses he incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.7. Payment of Indemnification

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.7.1. Upon your request for payment in connection with any event under this Letter of Exemption and Indemnification, the Company shall take all actions necessary by law for its payment, and shall act to arrange any approval that may be required in connection therewith, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.7.2. With respect to the Company's undertaking to indemnify for an act performed by virtue of your being an employee or office holder or service provider on behalf of the Company in Another Corporation (hereinafter: the "**Liable Corporation**"), the following provisions shall also apply:

1. The
 Company shall not be required to pay under this Letter of Exemption and Indemnification amounts
 which you will be entitled to receive and will actually receive from the Liable Corporation
 under an insurance policy arranged by the Liable Corporation and/or under a prior undertaking
 for indemnification or under a permission for retroactive indemnification given by the Liable
 Corporation.

2. If
 your demand to receive indemnification and/or insurance coverage for an act you performed
 by virtue of your position in the Liable Corporation, which may be indemnifiable under this
 Letter of Exemption and Indemnification, is rejected by the Liable Corporation or the insurance
 company of the Liable Corporation, as the case may be, the Company shall pay you under this
 Letter of Exemption and Indemnification amounts to which you will be entitled under this
 Letter of Exemption and Indemnification, if you are entitled to these amounts, and you shall
 assign to the Company your rights to receive amounts from the Liable Corporation and/or under
 the insurance policy of the Liable Corporation and shall authorize the Company to collect
 these amounts in your name, to the extent such authorization is required to fulfill the provisions
 of this section. For this purpose, you undertake to sign any document required by the Company
 for the purpose of assigning your said rights and authorizing the Company to collect the
 said amounts in your name.

3. For
 the avoidance of doubt, it is clarified that this Letter of Exemption and Indemnification
 does not grant the Liable Corporation and/or any other third party any rights against the
 Company, including, but without derogating from the generality of the foregoing, the right
 to claim and/or demand any payment from the Company as a contribution to the indemnification
 and/or insurance coverage that will be provided to you by the Liable Corporation for an act
 you performed by virtue of your position in the Liable Corporation.

6. **Limitations on Indemnification** 

Notwithstanding the foregoing, the Company shall not indemnify you for a monetary liability or expense imposed on you for any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. A breach of the duty of loyalty to the Company, unless you acted in good faith and had reasonable grounds to assume that the act would not harm the Company's interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. A breach of the duty of care committed intentionally or recklessly, except if committed with negligence only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. An act done with the intent to derive an unlawful personal profit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. A fine, civil fine, monetary sanction or ransom imposed on you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. An administrative enforcement proceeding conducted in your matter (but subject to the provisions of Sections 4.4 and 4.5 above).

The prohibitions in this section above shall apply unless indemnification or insurance is permitted for any of the above cases, all or some of them, by law or by an instruction of a competent authority.

7. **Return of Indemnification Amounts Paid** 

In the event that the Company pays you or in your place any amounts under this Letter of Exemption and Indemnification in connection with a said Legal Proceeding, and thereafter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The liability for which the amount was paid is canceled or its amount is reduced for any reason - you shall assign to the Company all your rights to the restitution of the amount from the plaintiff in the proceeding and shall do all that is necessary for this assignment to be valid and for the Company to be able to realize it, and having done so, you shall be exempt from returning to the Company the amount for which the right of restitution was assigned to the Company. If you have not done so, you shall be obligated to return to the Company the amount or part thereof, as the case may be, plus linkage differentials and interest at the rates and for the period for which you are entitled to a refund of the amount from the plaintiff.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. It becomes clear in a final judgment that you are not entitled to indemnification from the Company for those amounts - these amounts shall be considered a loan given to you by the Company, which shall bear interest at the minimum rate as determined from time to time by any law so as not to constitute a taxable benefit in the hands of the loan recipient, and you shall be required to return these amounts to the Company when so requested in writing by it and to do so according to a payment schedule determined by the Company.

8. **Exemption** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. As you are an office holder, the Company hereby exempts you, to the extent permitted by law, from any liability towards it, for any damage caused to it by you in your acts by virtue of your being an office holder in the Company and/or an office holder or employee or service provider on behalf of the Company in Another Corporation, due to a breach of the duty of care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. Notwithstanding the foregoing, the Company does not exempt you from liability for damage due to a breach of the duty of care in a distribution (as defined in the Companies Law), transactions with an interested party, and also in any "counterclaim" proceeding by the Company against you in response to your claim against the Company, except where your claim is for the protection of protective rights in labor law originating from law and/or a personal employment agreement between you and the Company. It is clarified that the exemption shall not apply to a decision or transaction in which the controlling shareholder or any office holder in the Company (including an office holder other than the one for whom the letter of exemption is granted) has a personal interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. The Company's undertakings under this letter of exemption shall be interpreted broadly and in a manner intended to uphold them, to the extent permitted by law, for the purpose for which they are intended. In the event of a conflict between any provision in this letter of exemption and a provision of law that cannot be conditioned upon, changed or added to, the said provision of law shall prevail, but this shall not impair or derogate from the validity of the other provisions in this letter of exemption.

9. **Period of Indemnification and Exemption** 

The Company's undertakings under this Letter of Exemption and Indemnification shall also apply to events, circumstances, claims and/or matters whose cause of action arose in the period prior to the date of granting this letter of undertaking, provided that their cause of action is from the date you were first appointed as an office holder in the Company and/or as an employee and/or as an office holder and/or service provider in Another Corporation on its behalf, and they shall remain in your favor even after the termination of your tenure as an office holder in the Company and/or after the termination of your employment or tenure in Another Corporation on behalf of the Company, provided that the acts for which the exemption from liability and/or the undertaking to indemnify are given were performed (from the date of the beginning of your tenure or employment in the Company or in Another Corporation on behalf of the Company) or will be performed during your tenure as an office holder and/or your employment or tenure in Another Corporation on behalf of the Company, regardless of the date of discovery of the event for which you are entitled to indemnification and/or exemption under this Letter of Exemption and Indemnification. The Company's undertakings as aforesaid shall also be in favor of your estate, heirs and other successors by law, and it shall not be canceled or amended except in your favor.

10. **Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. This Letter of Exemption and Indemnification is subject to any law and to the Company's articles of association, as they may be from time to time. Subject to the provisions of law or duties under law that cannot be conditioned upon, the Company shall not amend its articles in a manner that would impair the validity of this Letter of Exemption and Indemnification or derogate from the scope or validity of any of your rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. The Company's undertakings under this Letter of Exemption and Indemnification shall be interpreted broadly and in a manner intended to uphold them, to the extent permitted by law, for the purpose for which they are intended. In the event of a conflict between any provision in this Letter of Exemption and Indemnification and a provision of law that cannot be conditioned upon, changed or added to, the said provision of law shall prevail, but this shall not impair or derogate from the validity of the other provisions in this Letter of Exemption and Indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. To the extent that any of the indemnification limitations mentioned in Sections 4, 5.1, 6 or 8 do not apply to you by law because you are not an office holder of the Company or for any other reason, then these limitations shall not apply to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. For the avoidance of doubt, it is hereby clarified that the undertaking in this Letter of Exemption and Indemnification does not cancel, derogate from, or waive any other indemnification to which you are entitled from any other source under the provisions of any law or under any prior undertaking or agreement of the Company, provided that the Company shall not be obligated to indemnify you for more than the actual damage and expenses caused to you for each event, both under the prior undertaking (if and to the extent it is in effect) and under this Letter of Exemption and Indemnification, and provided that the total indemnification amount for a cause of action as stated in Section 4.1 above (excluding amounts received from insurance policies) shall not exceed the Maximum Indemnification Amount as defined above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. This Letter of Exemption and Indemnification does not limit or prevent the Company from increasing the Maximum Indemnification Amount, whether because the insurance amounts under the office holders' liability insurance policy are reduced, whether because the Company is unable to obtain office holders' insurance that covers the events subject to indemnification on reasonable terms, or for any other reason, provided that such decision is made in the manner prescribed by any law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. No waiver, delay, forbearance from action or grant of an extension by the Company or by you shall be interpreted under any circumstances as a waiver and shall not prejudice your and/or the Company's rights and obligations under this Letter of Exemption and Indemnification and under any law, and shall not prevent the Company or you from taking any legal and other steps necessary to realize such rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. For the avoidance of doubt, it is hereby clarified that the undertaking to indemnify under this letter does not derogate from the Company's right to decide on any additional indemnifications, retroactively or in advance, and/or to expand any existing indemnification for any reason, all subject to obtaining the approvals required by any law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8. This Letter of Exemption and Indemnification does not constitute a contract for the benefit of a third party, including any insurer, and is not assignable, and no third party, including an insurer, shall have the right to demand the Company's participation in a payment for which it is obligated under an agreement entered into with it, except for the deductible specified in such agreement.

11. This
 Letter of Indemnification shall also apply for the benefit of an alternate director.

12. Subject
 to the provisions of law or duties under law that cannot be conditioned upon, this Letter
 of Indemnification shall not be amended in a manner that impairs the scope or validity of
 any of your rights hereunder without your prior written consent.

13. The
 law applicable to this Letter of Exemption and Indemnification is the law in Israel, and
 the court in Tel Aviv-Jaffa is vested with the exclusive jurisdiction to adjudicate disputes
 arising from the application of this Letter of Exemption and Indemnification.

14. The
 Addendum to this Letter of Indemnification constitutes an integral part hereof.

15. This
 Letter of Exemption and Indemnification shall come into effect upon your signing a copy thereof
 in the designated place and its delivery to the Company. This Letter of Exemption and Indemnification
 replaces any prior letter of exemption and indemnification granted to you.

In witness whereof, the Company has signed:

**Gix Internet Ltd.**

**I confirm receipt of this Letter of Exemption and Indemnification and confirm my agreement to all its terms:**

**Signature of the Indemnified Party Date**

**Addendum**

---

| | |
|:---|:---|
| **The Determining Events** |  |
| 1 | Any claim and/or demand filed by a customer, supplier, contractor and/or any other third party conducting business with the Company, its subsidiaries and/or Another Corporation (as defined above) (hereinafter in this Addendum, collectively: the "**Company**") and/or any claim and/or demand filed against the Indemnified Party by any person and/or corporation and/or body and/or authority acting under law. |
| 2 | Any claim and/or demand filed in connection with a transaction, whether in the ordinary course of business or not in the ordinary course of business of the Company, including for obtaining credit, sale, lease, transfer, purchase of assets and/or liabilities, as well as the receipt and/or grant of an option to sell, lease, transfer or purchase such assets and/or liabilities. |
| 3 | Any claim and/or demand filed by employees, consultants, agents, marketers, other individuals and/or a body employed by and/or providing services to the Company in connection with compensation owed to them or damages and/or liabilities caused to them in connection with their employment by the Company or their engagement with the Company, including also events related to the employment conditions of employees and employer-employee relations, including but not limited to, negotiations, entering into and implementing personal employment agreements, working and employment conditions, employee benefits, granting of securities, promotion of employees, handling of pension arrangements, insurance and savings funds, and events related to workplace safety and work-related injuries, whether causing bodily injury or property damage. Any act in connection with the Company's activity or an omission attributed to the Company, or respectively to its employees, agents or other persons acting or claiming to act on behalf of the Company or by virtue of the office holder's position, which caused bodily injury, illness, death and/or damage to property including the loss of its use. |
| 4 | Any claim and/or demand regarding non-disclosure or failure to provide any type of information at the required time in accordance with the law and/or in connection with a misleading and/or deficient disclosure of such information, to third parties, including the Income Tax Authority, Value Added Tax, National Insurance, Investment Center, local authorities, the Ministry of Environmental Protection and any governmental, institutional and/or professional or other body, all to the extent that indemnification for such is permitted by law. Also, events arising from or related to proper disclosure and/or information provided or not provided by the Company to third parties, including in connection with securities, financial assets, deposits or any other information related to its activities, to the extent that indemnification for such is permitted by law. |
| 5 | Any claim and/or demand filed with respect to a cause of action that was committed or is alleged to have been committed or misuse with respect to a third party's intellectual property right by the Company and/or anyone on its behalf. |
| 6 | Any claim and/or demand filed by a lender or creditor or regarding funds loaned by them and/or debts owed to them. |

---

---

| | |
|:---|:---|
| **The Determining Events** |  |
| 7 | Any claim and/or demand filed by a third party suffering from bodily injury and/or damage to business and/or personal property, including the loss of its use, during any act and/or omission attributed to the Company, its employees, agents and/or other persons acting and/or claiming to act on behalf of the Company. |
| 8 | Any claim and/or demand filed directly or indirectly in connection with a failure in whole or in part, by the Company and/or by the office holders, directors and/or employees of the Company, with respect to the payment, reporting or documentation of documents, of one of the state authorities, a foreign authority, a municipal authority and/or any other payment required by the laws of the State of Israel, including income tax payments, sales tax, capital gains tax, transfer taxes, excise tax, value added tax, stamp duty, customs, national insurance, salaries and/or withholding of wages for employees and/or other withholdings, including any type of interest and additions for linkage. |
| 9 | Any claim and/or demand filed by purchasers, owners, lessors and/or other holders of assets for damages and/or losses related to the use of said assets. |
| 10 | A claim or demand in connection with any action directly or indirectly related to the activity of the Company and/or Another Corporation, including negotiations and entering into agreements of any kind, including their performance and/or termination, with external contractors, agents, distributors, customers, suppliers, service providers, etc., all whether or not such engagements and/or actions were completed or will not be completed for any reason. |
| 11 | Any administrative, public or judicial action, orders, judgments, claims, demands, claim letters, instructions, allegations, liens, attachments, investigation proceedings and/or notices of non-compliance and/or violations of an action by a governmental authority and/or other bodies alleging potential liability and/or liability (including for enforcement expenses, investigations, responses by governmental authorities and/or fines or contributions, indemnification, recovery payments, compensation) as a result thereof and/or for failure to comply with a provision of a law, regulation, order, ordinance, rule, practice, instruction, license, directive, policy and/or judgment by the Company and/or Another Corporation and/or by the office holders of the Company or any other indemnified party within the scope of their role in the Company and/or in Another Corporation, whether in Israel or abroad (including for an administrative enforcement proceeding, to the extent that indemnification for such is permitted by law). |

---

---

| | |
|:---|:---|
| **The Determining Events** |  |
| 12 | Any legal proceeding, whether in Israel or abroad, in connection with the Company and/or Another Corporation, on matters related, directly or indirectly, to the issuance of licenses and permits or to restrictive trade practices, including restrictive arrangements, mergers and monopolies. |
| 13 | Any claim and/or demand relating to a change in the Company's structure or its reorganization, including but not limited to, merger, split-off, change in the Company's capital, establishment of subsidiaries, their liquidation and/or sale to third parties. |
| 14 | Any claim and/or demand relating to a decision and/or activity of the Company and/or of the Indemnified Party within the scope of his role in the Company and/or in Another Corporation, including decisions made by the board of directors of the Company and/or Another Corporation and/or in one of their committees. |
| 15 | Any claim and/or demand relating to an expression, statement, including the expression of a position or opinion and/or a vote at general meetings of the Company or of other corporations and/or in other organs of the Company or of other corporations, made by the office holder in the course of fulfilling his role in the Company, including any claim or demand filed by any person in connection with defamation and/or invasion of privacy. |
| 16 | The issuance of securities, including, but not limited to, offers of securities made or to be made by the Company and/or Another Corporation to the public and/or not to the public, including tender offers (including any claim and/or demand regarding the opinion of the Company's board of directors to the offerees in a tender offer, regarding the advisability of a special tender offer in accordance with Section 329 of the Companies Law, or refraining from giving such an opinion) and other proceedings, pursuant to prospectuses or other documents, as well as in connection with other actions related to the capital of the Company and/or Another Corporation. |

---

---

| | |
|:---|:---|
| **The Determining Events** |  |
| 17 | Events arising from or related to the Company's holdings, whether on its own or as a trustee, in various corporations, including with respect to the manner of voting at the general meetings of those corporations. |
| 18 | Events related to the making of investments by the Company in any corporations (including investments that did not materialize), before, during and after the making of the investment, during the engagement, signing, development and follow-up, including actions taken on behalf of the Company as a director, office holder, employee or observer on the board of directors of the corporation in which the investment is made. |
| 19 | Any transaction as defined in Section 1 of the Companies Law regarding the transfer, purchase and/or sale of securities of various corporations, or investment in securities of various corporations and/or obtaining rights in various corporations, as well as an action directly or indirectly involved in such a transaction, all whether or not the Company and/or Another Corporation are a party thereto. |
| 20 | Any action that resulted in the failure to arrange adequate insurance and/or a failure in risk management. |
| 21 | Any action related to a distribution, including the purchase of the Company's shares, provided that the indemnification for such an action does not violate any law, as well as any claim or demand in connection with the distribution of dividends to the shareholders of the Company and/or Another Corporation. |
| 23 | Events that had or could have had a material effect on the profitability of the Company and/or Another Corporation or their property or their rights or their liabilities. |

---

---

| | |
|:---|:---|
| **The Determining Events** |  |
| 24 | Any claim or demand in connection with the provision of information, representations, opinions, financial statements, reports or notices to any competent authority under any law, including but not limited to, the Securities Law and the Companies Law, including regulations enacted thereunder, or under the provisions of the tax laws applicable to the Company. |
| 25 | Any action that the Company and/or Another Corporation will take in the areas of the transactions they perform, their holdings, their investments, trade, development, finance, cash management, manufacturing, import, marketing, storage and inventory management of any kind, and other activities of the Company and/or Another Corporation or that will be permitted to them by law. |
| 26 | Formulation of work plans, including pricing, marketing, distribution, instructions to employees, customers, agents, marketers and suppliers, and any collaborations. |
| 27 | Decisions and/or actions relating to the Consumer Protection Law and/or orders and/or regulations thereunder. |
| 28 | Anything related, directly or indirectly, to the management of the investment portfolio of the Company and/or of Another Corporation and/or the bank accounts of the Company or of Another Corporation. |
| 29 | Events related to the preparation and/or approval of financial statements. |
| 30 | Any claim and/or demand relating to the types of events detailed above, in connection with the tenure or employment of the Indemnified Party in subsidiaries and/or affiliates of the Company and/or in Another Corporation, all if this was done within the scope of his role as an office holder and/or as an employee and/or as a service provider in one of the said companies. |

---

## Exhibit 4.4

**Exhibit 4.4**

**<u>Agreement</u>**

**Made and entered into in Tel Aviv, on the 5th day of January, 2025**

---

| | |
|:---|:---|
| **Between:** | **GIX INTERNET LTD**<br> Public Company No. 520040262<br> 11 Menachem Begin Road, Ramat Gan 5268104<br> (hereinafter: the "**Company**" or "**GIX**")<br>|

---

**<u>On the First Part</u>**;

---

| | |
|:---|:---|
| **And between:** | **Deliverz.AI LTD**<br> Private Company No. 515592301<br> 54 Arlozorov Street, Tel Aviv – Yafo 6248827<br> (hereinafter: "**Deliverz**") |

---

**<u>On the Second Part</u>**;

---

| | |
|:---|:---|
| **And between:** | **The shareholders of Deliverz as detailed in <u>Appendix A</u> to this Agreement**<br>(hereinafter: "**Deliverz Shareholders**") |

---

**<u>On the Third Part</u>**;

(The Company, Deliverz, and the Deliverz Shareholders shall collectively be referred to hereinafter as the "**Parties**")

---

| | |
|:---|:---|
| **Whereas:** | The Company is a public company whose shares are listed on the Tel Aviv Stock Exchange Ltd. (hereinafter: the **"Stock Exchange"**); |
| **And whereas:** | Deliverz is a private company incorporated and registered in Israel on January 18, 2017, engaged in the development, manufacturing, and marketing of autonomous robots that provide delivery services (hereinafter: the **"Field of Activity of Deliverz"**), and Deliverz was awarded a tender by Tel HaShomer Hospital; |

---

---

| | |
|:---|:---|
| **And whereas:** | The Company wishes, on the basis of the representations and undertakings of Deliverz and the Deliverz Shareholders as set forth in this Agreement, and Deliverz and the Deliverz Shareholders likewise wish, on the basis of the representations and undertakings of the Company as set forth in this Agreement, that subject to the fulfillment of the conditions set forth in this Agreement, the Company shall acquire all (100%) of the issued and paid-up share capital of Deliverz, on a fully diluted basis, in exchange for the allocation of ordinary shares of the Company to the Deliverz Shareholders, and the granting of the right to receive additional ordinary shares of the Company upon the achievement of milestones, as set forth in Section 6 of this Agreement, all in accordance with the terms set forth in this Agreement (hereinafter: the **"Transaction"** or the **"Merger"**); |
| **And whereas:** | The purpose of the Merger is a business and economic one, and by virtue thereof, Deliverz shall become a wholly owned subsidiary of the Company; |
| **And whereas:** | On June 3, 2024, the Parties to this Agreement entered into a non-binding memorandum of understanding in which they recorded the principal understandings reached between them in connection with the Transaction, which constitute the basis for this Agreement (hereinafter: the **"Memorandum of Understanding"**); |
| **And whereas:** | The Parties wish to determine and define the legal relationship between them within the framework of this Agreement, based on the principal understandings reached in the Memorandum of Understanding; |

---

**<u>Therefore, it has been agreed, declared, and stipulated between the Parties as follows</u>:**

1.  **<u>Preamble, Appendices, and Section Headings</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The
 preamble to this Agreement and its appendices constitute an integral part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The
 division of this Agreement into sections and subsections and the headings appearing herein
 are solely for convenience and shall not be given any weight, including for the purpose of
 interpreting this Agreement.

2.  **<u>Definitions</u>** 

As used in this Agreement, the following terms in Section 2 below shall have the respective meanings set forth beside them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 **"Company Approvals"** Approval
 by the Audit Committee and/or Compensation Committee, Board of Directors, and General Meeting of all provisions of this Agreement,
 including securities allocation, per Sections 274 and 275 of the Companies Law.

2.2 **"Deliverz Shareholders"** The
 holders of ordinary shares of Deliverz, as shall exist on the Completion Date. The list of Deliverz shareholders as of the date of
 signing this Agreement is as set forth in  **<u>Appendix A</u>** .

2.3 **"Transaction Report"** A
 transaction report that shall be duly published by the Company for the purpose of approving the transaction that is the subject of
 this Agreement by the General Meeting (the approval of which is a condition precedent to this Agreement), in accordance with the
 Securities Law, which shall also constitute an Exceptional Private Offering pursuant to the Private Offering Regulations and any
 other applicable legal provisions.

2.4 **The "Financial Statements"** Consolidated
 financial statements of the Company as of December 31, 2023, and June 30, 2024.

2.5 **The "Annual Report"** The
 Company's annual report for 2023, published on March 28, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 **"Deliverz Financial Statements"** The
 financial statements of Deliverz as of December 31, 2023, and as of June 30, 2024, attached as  **<u>Appendix 2.6</u>** to the
 Agreement, and any updates thereto as may be required under any applicable law, including the staff positions of the Israel Securities
 Authority; the aforesaid financial statements shall describe the assets and results of operations of Deliverz for the period required
 for approval of the transaction in accordance with the provisions of any applicable law, including the staff positions of the Israel
 Securities Authority. The financial statements of Deliverz shall be prepared in accordance with generally accepted accounting principles
 and the provisions of the Securities Law and the regulations promulgated thereunder.

2.7 **The "Serving Directors"** Directors
 serving on the Company's Board as of the Agreement date, listed in the Annual Report.

2.8 **The "Director on behalf of the Deliverz Shareholders"** The
 Director proposed by the Shareholders of Deliverz, whose identity, together with an appropriate affidavit on his behalf, shall be
 delivered to the Company together with the Financial Statements of Deliverz.

2.9 **The "Nominee Company"** Mizrahi-Tefahot
 Registration Company Ltd.

2.10 **The "Trustee"** 102
 Equity Compensations Ltd. or other mutually agreed trustee.

2.11 **The "Closing Date"** The
 date when all conditions precedent in Section 16 are fulfilled.

2.12 **The "Allocated Shares"** Ordinary
 Shares of the Company to be allocated to the Shareholders of Deliverz on the Closing Date, and which shall constitute, immediately
 upon their allocation, 25% of the share capital of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 **"Founder Shares"** Ordinary
 shares allocated to the Founder; 5% of issued share capital post-Merger.

2.14 **"Milestone Share Rights"** Rights
 to be allocated additional Ordinary Shares of the Company to the Deliverz Shareholders and to the Founder, which shall be allocated
 without additional consideration (other than the Securities being acquired), and which shall grant the Shareholders of Deliverz the
 right to receive additional allocated shares of the Company upon the achievement of the milestones detailed in Section 6.5 of this
 Agreement.

2.15 **The "Founder"** M.R.M.
 MERHAVIT HOLDINGS AND MANAGEMENT LTD, Private Company No. 513142562 wholly owned by Mr. Roni Menashe.

2.16 **The "Allocated Securities"** The
 Allocated Shares, Founder Shares, and Milestone Share Rights.

2.17 **The "Acquired Securities"** Ordinary
 shares of Deliverz that shall together constitute 100% of the issued and paid-up share capital of Deliverz, on a fully diluted basis,
 which shall be transferred to the Company on the Closing Date; as of the date of execution of this Agreement, the number of such
 shares is 1,000,000 ordinary shares.

2.18 **The "Private Placement"** Allocation
 of Allocated Shares, Founder Shares, and Milestone Share Rights per Agreement.

2.19 **The "Ruling"** A
 Tax Ruling by agreement to be obtained from the Israel Tax Authority, which shall grant a deferral of tax payment to the Deliverz
 Shareholders in respect of the transfer of the Acquired Securities to the Company until the date of realization of the Acquired Securities,
 pursuant to section 103T of the Ordinance and subject to the conditions of section 103T of the Ordinance, and a draft thereof shall
 be attached as  **<u>Appendix 2.21</u>** to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 **The "Companies Law"** The
 Companies Law, 5759-1999, and the regulations enacted thereunder;

2.21 **The "Securities Law"** The
 Securities Law, 5728-1968, and the regulations enacted thereunder.

2.22 **"Ordinary Shares of the Company"** Ordinary
 shares of the Company, with no par value.

2.23 **"Deliverz Ordinary Shares"** Ordinary
 shares of Deliverz, par value ILS 0.001 each.

2.24 **The "Outline"** A
 description of the business of Deliverz, as required under the Private Placement Regulations and pursuant to the First Schedule to
 the Securities Regulations (Details of the Prospectus and Draft Prospectus – Structure and Form), 5729-1969, including its
 Financial Statements and the appendices to the Outline, if any.

2.25 **"Free and Clear"** <u>In connection with the Allocated Shares, the Milestone Share Rights, and the Founder Shares</u>: clean, free, and clear of any debt
 and/or pledge and/or lien and/or attachment and/or any other right in favor of any third party, except for the lock-up provisions
 under the Securities Law; <u>in connection with the Acquired Securities</u>: Free and Clear of any pledge, lien, attachment, debt
 and/or right in favor of any third party whatsoever, including the Shareholders of Deliverz.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 **"Net Cash Amount at Closing"** As
 defined in Section 4.20.

2.27 **"Company Capital Raise"** Capital
 raise by Company to meet Agreement conditions.

2.28 **The "Income Tax Ordinance" or the "Ordinance"** The
 Income Tax Ordinance [New Version], 1961, and all rules, regulations, orders, directives, and determinations promulgated thereunder,
 and all amendments thereto, in particular the Rules (as defined above), as may be amended from time to time.

2.29 **"Misleading Item"** As
 defined in the Securities Law.

2.30 **"Third Party"** Any
 individual or entity, as applicable, who is not a Party to this Agreement.

2.31 **"Conditions Precedent"** All
 conditions precedent listed in Section 16.

2.32 **"Interim Period"** The
 period commencing as of the Agreement execution until the Closing Date.

2.33 **"Reporting Regulations"** Securities
 Regulations (Periodic and Immediate Reports), 5730-1970.

2.34 **"Private Placement Regulations"** Securities
 Regulations (Private Placement of Securities in a Listed Company), 5760-2000.

2.35 **"Related Party Transaction Regulations"** Securities
 Regulations (Transaction with Controlling Shareholder), 5761-2001.

2.36 **"Adverse Change" / "Material Adverse Change"** Any
 event or circumstance that affects, or could reasonably be expected to adversely affect, in the aggregate, the financial condition
 of the relevant Company in an amount equal to ILS 100,000.

3.  **<u>Representations of the Parties</u>** 

The Parties each represent, solely with respect to themselves, that they have reviewed their legal and tax status in connection with this Agreement and the Transaction, and that, subject to the fulfillment of the Conditions Precedent, there is no restriction and/or prohibition and/or impediment under the provisions of any agreement, whether written or oral, and no impediment under any agreement and/or law, preventing them from entering into this Agreement and fulfilling their obligations hereunder. Furthermore, their execution of and performance under this Agreement (subject to the fulfillment of all Conditions Precedent as detailed in Section 16 below) does not and will not constitute a breach of any obligation binding upon them, as applicable.

4.  **<u>Representations, Warranties, and Covenants of the Company</u>** 

**In addition to its representations under Section 3 above, the Company hereby represents and warrants as follows**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The
 Company is a public company, as defined in the Companies Law, whose shares are listed for
 trading on the Tel Aviv Stock Exchange Ltd. (hereinafter: the "**Stock Exchange** "),
 duly incorporated and registered under the laws of the State of Israel in 1978, and its registration
 number with the Companies Registrar is 520040262. The Company is registered as an active
 company with the Companies Registrar. The Company has paid all fees and charges due to the
 Companies Registrar in full and has not received any notice from the Companies Registrar
 of any intention to declare it a "company in violation of the law" under the
 Companies Law, and it is not aware of any breach vis-à-vis the Companies Registrar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The
 Company's current Articles of Association, as of the execution date of this Agreement,
 are attached as  **<u>Appendix 4.2</u>** hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. As
 of the execution date of this Agreement, the Company's authorized share capital consists
 of 100,000,000 ordinary shares of the Company; and the issued and paid-up share capital consists
 of 42,901,224 ordinary shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. As
 of the execution date of this Agreement, to the best of the Company's knowledge and
 as reported to it by its interested parties, the interested parties in the Company by virtue
 of holdings in its shares are as detailed in the Company's immediate report dated January
 4, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. As
 of the execution date of this Agreement, the controlling shareholder of the Company is Xylo
 Technologies Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. As
 of the execution date of this Agreement, the ordinary shares of the Company, comprising its
 issued and paid-up share capital, are listed for trading on the Stock Exchange, on the main
 list; without derogating from the foregoing, on July 11, 2024, the Stock Exchange notified
 the Company that it does not meet the continued listing requirements due to low public float
 value, and that it was granted an extension to comply with such requirements until December
 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. As
 of the execution date of this Agreement, except as disclosed in the Company's reports,
 the Company has not allocated, nor has it undertaken to allocate, to any person and/or entity,
 any ordinary shares and/or options and/or other securities of any kind and/or rights to shares
 and/or other rights of the Company, nor has it received any payment in respect of shares
 and/or options and/or such other securities or rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. As
 of the execution date of this Agreement, and subject to Section 4.10 below, no dividend has
 been declared by the Company which has not been distributed, and no resolution has been adopted
 for the distribution of bonus shares which have not been allocated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. The
 Company undertakes, subject to applicable law, that from the execution date of this Agreement
 until the Closing Date or the termination date of this Agreement, whichever occurs earlier,
 it shall operate and take actions in the ordinary course of business or as part of implementing
 this Agreement.

As of the execution date of this Agreement, the directors serving on the Company's Board of Directors, its officers, and their terms of service are as specified in the Annual Report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. As
 of the execution date of this Agreement, the Company holds shares in the companies listed
 in the Annual Report (the "**Held Companies** "). The Company intends to consider
 a distribution in kind of all or part of its holdings in VBIX shares as an in-kind
 dividend to the shareholders of the Company. The Company has no obligations towards the Held
 Companies, including obligations to invest and/or guarantees and/or any other commitments,
 and the Company is not obligated to bear any of the liabilities of the Held Companies. Other
 than the Held Companies, the Company holds no shares in any other company or affiliated or
 related company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. All
 material agreements that remain binding on the Company and/or that include provisions which
 are in force as of the date of this Agreement are listed in the Annual Report, and the Company
 is not in breach of any agreement and/or undertaking it has entered into, nor is there any
 reason for concern that any of said agreements may be breached by the Company in a manner
 that would allow their termination by the counterparty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. The
 Company's public reports, as published on the official website of the stock exchange,
 including the financial statements published and those to be published until the Completion
 Date, were and shall be prepared, as applicable, in accordance with the relevant legal provisions
 in effect at the time of their publication. The Company's public reports do not contain
 any misleading information. As of their date of publication, the aforesaid reports accurately
 reflected, in all material respects, the information contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13. The
 financial statements, as well as the financial statements of the Company to be published,
 if any, until the Completion Date, reflect and shall reflect, as applicable, the Company's
 financial condition, operations and results, changes in equity, and cash flows accurately.
 Furthermore, the financial statements accurately reflect the entirety of the Company's
 equity, assets, and liabilities as of the date of the statements, and except as stated in
 such statements, the Company has, as of the date of the financial statements, no other assets
 and/or liabilities. The financial statements were and shall be prepared in accordance with
 International Financial Reporting Standards (IFRS) and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14. As
 of the execution date of this Agreement, the Company has no liens or obligations to create
 liens over any of its assets and/or share capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15. As
 of the date of execution of this Agreement, the Company has not provided any guarantee for
 the debts and obligations of any third parties and/or any commitment to provide a guarantee
 for the debts and obligations of any third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16. Upon
 completion of the Transaction, the Company will not be a guarantor for any obligations of
 third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.17. Except
 as detailed in  **<u>Appendix 4.17</u>** to this Agreement, and as reflected in the Company's
 financial statements attached as part of said Appendix 4.17, and in any amending and/or supplementary
 report to be published, as of the execution date of this Agreement, the Company has no financial
 or other obligations or liabilities to its interested parties, including debts related to
 the termination of their service as officers of the Company. Except as specified in indemnification
 letters issued to the Company's officers, the Company does not provide any guarantees
 in favor of its interested parties and/or entities related thereto, and it has not undertaken
 to indemnify such interested parties and/or related entities, nor granted any liens or securities
 in their favor (except in connection with indemnification of officers and directors). For
 the purposes of this section, related entities shall include, without limitation, any controlling
 shareholder of the interested parties in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.18. No
 civil claims, criminal indictments, or legal proceedings of any kind, including arbitration
 proceedings, are pending or threatened against the Company and/or its officers in their capacity
 as such. Furthermore, there are no pending or threatened criminal indictments or proceedings
 against the Company's officers. In addition, no criminal indictments or criminal legal
 proceedings are pending against the Officers of the Company. The Company is not aware of
 any intention to initiate legal proceedings against the Company and/or its Officers in connection
 with the performance of their duties, and/or of the existence of any judgment, arbitral award,
 decision, or judicial ruling against the Company and/or its Officers in connection with the
 performance of their duties, that has not been fully satisfied and/or of any criminal proceedings
 against the Officers of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.19. As
 of the execution date of this Agreement, the Company is duly registered with the tax authorities
 (Income Tax and VAT) and reports to these authorities in accordance with applicable law.
 Attached hereto as  **<u>Appendix 4.19</u>** is the Company's reporting status to
 these authorities and to any other tax authority. Until the Closing Date, any payment that
 the Company is required to make to the aforesaid authorities for obligations arising prior
 to the Closing Date shall be duly paid, and/or full provisions shall be made therefor in
 accordance with generally accepted accounting principles, for purposes of calculating the
 Net Cash Amount at the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.20. At
 the Closing Date, the Company shall have in its accounts a Net Cash Amount at the Closing
 Date of no less than ILS 4,500,000 net.

In this Agreement, "**Net Cash Amount at the Closing Date**" means: the total cash in the Company's accounts, free of any lien, attachment, and third-party right, plus (a) the amounts the Company is to receive in respect of input VAT reported and/or to be reported in the VAT return closest to the Closing Date; (b) any amount transferred to Deliverz, whether by the Company or via Pure Capital, from May 30, 2024, until the Closing Date; less all of the Company's obligations of any kind, including: (1) obligations and/or expenses expected as of the Closing Date in connection with the distribution of VBIX shares as a dividend in kind (excluding obligations under the credit agreement with Pure Capital); (2) fees to the Stock Exchange and the Israel Securities Authority in connection with the listing of the Allocated Securities under the Private Placement; and (3) all of the Company's obligations for payment of the Company's Transaction Expenses detailed in Section 18.2 below (as distinct from Deliverz's Transaction Expenses, which shall be borne by Deliverz).

Notwithstanding the foregoing, it is agreed that VAT for all services of the Founder in connection with the Transactions contemplated under this Agreement shall not be deducted from the Net Cash Amount at the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.21. The
 Company is aware that, subject to its agreement to the wording of the Ruling, and pursuant
 thereto, it may be subject to certain future restrictions with respect to its holdings in
 the Deliverz shares transferred to it. The Company undertakes to comply with the Ruling and
 not to breach the restrictions set forth therein (if and to the extent that such restrictions
 are approved by it in advance and in writing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.22. The
 Company intends to conduct a Capital Raise in order to comply with the provisions of this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.23. The
 Company is aware that Deliverz and the Deliverz Shareholders are entering into this Agreement, *inter alia*, in reliance on its representations set forth in this Section 4 above and
 on the undertakings specified in this Agreement. Such representations shall be accurate in
 all material respects as of the Closing Date as well (except for those representations that,
 by their nature, were made as of the execution date of this Agreement only).

5.  **<u>Representations and Undertakings of Deliverz and the Deliverz Shareholders</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. **In addition to its representations under Section 3 above, Deliverz hereby represents and undertakes as follows**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. Deliverz
 is a private company limited by shares, incorporated in Israel, engaged in the Field of Activity
 of Deliverz. Deliverz does not hold any other company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2. Deliverz
 is an active company, duly registered with the Companies Registrar in Israel, and there is
 no order and/or proceeding pending for its liquidation, dissolution, delisting from the Companies
 Registrar, proceedings under the Insolvency and Economic Rehabilitation Law, 5778–2018,
 or under Sections 350 or 351 of the Companies Law, for receivership or debt settlement. Copies
 of Deliverz's certificate of incorporation and incorporation documents, together with
 a legal opinion from Deliverz's attorney confirming their accuracy and that they are
 up to date as of the execution date of this Agreement, are attached hereto as  **<u>Appendix 5.1.2</u>** .

Without derogating from the foregoing, Deliverz completed a creditor arrangement proceeding in Insolvency Case No. 45613-11-22, during which control of the company was sold to an investor group that is a Party to this Agreement. A signed Decree approving the arrangement is attached hereto as **<u>Appendix 5.1.2A</u>**.

As a result of the fact that Deliverz was subject to a creditor arrangement, its operations were halted, and as of the execution date of this Agreement, Deliverz owns Intellectual Property rights as detailed in **<u>Appendix 5.1.2B</u>** hereto. Deliverz also has an agreement with Sheba Medical Center - Tel HaShomer for the supply of robots to perform deliveries within the hospital. A copy of the agreement with Sheba Medical Center is attached hereto as **<u>Appendix 5.1.2C</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3. As
 of the date of this Agreement, the authorized share capital of Deliverz is ILS 100,000, divided
 into 100,000,000 ordinary shares of Deliverz. The issued and paid-up share capital of Deliverz
 is composed of 1,000,000 ordinary shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.4. The
 Deliverz Shareholders hold all of the issued and paid-up share capital of Deliverz (on a
 fully diluted basis). As of the date of this Agreement and through the Closing Date, there
 are no shares, options, bonds, preemptive rights, other rights and/or any other securities
 issued by Deliverz. Except as specified above, Deliverz has not undertaken to allocate to
 any person and/or entity any ordinary shares and/or options to purchase shares and/or any
 securities of any kind and/or rights to shares and/or other rights of Deliverz, nor has it
 received any payment for any shares and/or options and/or other securities and/or such rights,
 and it shall not do so until the Closing Date, unless expressly stated otherwise in this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.5. As
 of the date of this Agreement, Amir Nardimon serves as CEO of Deliverz ()"**Amir** "),
 and Mr. Avi Ben David and Amir serve as directors of Deliverz.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.6. From
 the date of its incorporation until the Closing Date, Deliverz has not declared and shall
 not declare any undistributed dividend, nor shall its Board of Directors adopt any resolution
 on the issuance of bonus shares and/or a dividend that has not been distributed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.7. The
 financial statements of Deliverz have been duly audited (or, where applicable, reviewed)
 by Deliverz's auditor, duly prepared in accordance with IFRS and consistently applied
 accounting policies. They are accurate and reflect correctly, precisely, and fully, as of
 their respective dates, the financial and business condition of Deliverz, including its assets,
 rights, receivables, debts, and obligations, all in accordance with law and IFRS. Deliverz
 has no off-balance-sheet or other obligations that existed or were expected at the time the
 financial statements were prepared and were required to be reflected in the financial statements
 in accordance with law or IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.8. Since
 the date of the Deliverz Financial Statements, there has been no adverse change in the business,
 assets, or liabilities of Deliverz, and Deliverz's operations have been and continue
 to be in the ordinary course of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.9. From
 the date of execution of this Agreement, the financial statements of Deliverz shall be prepared
 in accordance with International Financial Reporting Standards (IFRS) and the provisions
 of the Securities Law, and shall faithfully reflect the financial condition of Deliverz,
 its assets and liabilities as of the dates specified therein, and the results of operations
 for the period to which they relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.10. The
 notice convening the Company's shareholders meeting for the approval of the Transaction
 and the other actions set forth in this Agreement, to the extent that approval of the meeting
 is required for such actions, shall be accompanied by the Deliverz Outline in accordance
 with the provisions of the Securities Law and the financial statements of Deliverz (and to
 the extent required under the provisions of the Securities Law, the financial statements
 of Deliverz shall be updated and prepared as of the dates required under the provisions of
 the Securities Law and the regulations promulgated thereunder).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.11. Except
 as detailed in  **<u>Appendix 5.1.11</u>** to this Agreement, as of the date of execution
 hereof, Deliverz has not provided any guarantees or undertakings to issue further guarantees
 to any third party, and it undertakes not to do so through the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.12. Except
 as detailed in  **<u>Appendix 5.1.12</u>** to this Agreement, neither Deliverz nor its
 officers, in their capacity as such, nor its interested parties in their capacity as such,
 are party to any legal proceedings, whether as plaintiffs or defendants, in any court or
 other judicial tribunal, and they have not received written notice of any such proceedings.
 In addition, and except as specified in said Appendix, no criminal indictment has been filed
 against Deliverz, its officers, or its interested parties, nor have administrative or criminal
 investigations been initiated against any of them. Except as detailed in  **<u>Appendix 5.1.12</u>** ,
 Deliverz is not aware of any intention to initiate legal proceedings against the Company
 and/or its officers in connection with the performance of their duties, and/or against its
 interested parties in their capacity as such, nor is Deliverz aware of any judgment, arbitral
 award, or judicial decision against Deliverz and/or its officers in connection with their
 duties, and/or against its interested parties in their capacity as such, which has not been
 fully satisfied, nor of any criminal proceedings against its officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.13. As
 of the date of execution of this Agreement, Deliverz is registered with the tax authorities
 (Income Tax and VAT) and has reported and continues to report to said authorities in accordance
 with applicable law. Attached hereto as  **<u>Appendix 5.1.13</u>** is Deliverz's
 reporting status to these authorities and to any other tax authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.14. Deliverz
 has no final tax assessments from the relevant tax authorities, including VAT. A copy of
 the withholding tax file and the income tax file of Deliverz is attached as  **<u>Appendix 5.1.14</u>** to this Agreement. Except as detailed in Section 5.1.15 below, no tax assessment
 has been issued to Deliverz in connection with any tax returns (including withholding tax)
 it has filed, nor has it received any demand or claim from the tax authorities, and no proceedings
 are being conducted with the tax authorities regarding open tax assessments and/or any period
 prior to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.15. Deliverz
 has timely filed all returns, declarations, notices, or any other documents required to be
 submitted to the tax authorities and/or other authorities through the end of 2023. The tax
 returns and/or other reports submitted by Deliverz in connection with its tax liabilities
 are correct, complete, and accurate. All amounts presented in the financial statements as
 liabilities and/or provisions for tax reflect Deliverz's tax liability as of the relevant
 dates and include appropriate provisions in accordance with generally accepted accounting
 principles. Except as detailed in  **<u>Appendix 5.1.15</u>** , no investigation (public)
 is being conducted and no investigation has been conducted in the past by any tax authority
 against Deliverz or its officers, and Deliverz is not aware of any intention by the tax authorities
 and/or any other authority to initiate an investigation regarding any of its liabilities.
 There is no demand, nor is any demand expected to the knowledge of Deliverz, for the payment
 of any tax, except for regular and ongoing payments duly paid by Deliverz. For taxes not
 yet due, Deliverz has made proper provisions in its financial statements in accordance with
 generally accepted accounting principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.16. Deliverz
 complies with all applicable laws concerning tax payments and withholding at source. Deliverz
 is and has always been a tax resident of the State of Israel only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.17. Deliverz
 shall provide by September 25, 2024: (1) the final Outline (as defined in Section 2 above),
 duly prepared in accordance with law, and (2) the financial statements of Deliverz prepared
 in accordance with IFRS and the provisions of the Securities Law, signed by the appropriate
 authorized signatories (hereinafter: the "**Deliverz Reports** "), as of the
 dates required for purposes of approval of the Transaction by the Company's corporate
 bodies (including any amended reports, as required).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.18. The
 Outline shall not omit any material information nor contain any Misleading Item and shall
 be prepared in accordance with the provisions of the Securities Law.

In addition, the senior officers of Deliverz (the CEO and CFO) shall declare, as close as possible to the publication date of the Transaction Report, that the Outline contains all relevant information required concerning Deliverz's operations under the provisions of the Securities Law and that the Outline does not include any Misleading Item as defined in the Securities Law. This confirmation shall be reaffirmed by the senior officers of Deliverz (the CEO and CFO) on the eve of the Transaction Closing Date and shall constitute a condition for the completion thereof.

The senior officers of Deliverz (the CEO and CFO) shall sign comfort letters in connection with the disclosures in the Deliverz Outline and the Deliverz Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.19. From
 the date of execution of this Agreement, Deliverz shall not take any action outside the ordinary
 course of its business that may materially adversely affect its business, capital, profitability,
 liabilities and/or assets. Deliverz shall promptly notify the Company of any such change,
 taking into account the fact that the Company is a public company subject to disclosure obligations
 under the Securities Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.20. The
 assets and property of Deliverz are insured under insurance policies covering its operations,
 business, and assets in a manner that appropriately reflects their nature and scope and provides
 adequate insurance coverage. All premiums due have been fully, regularly, and timely paid.
 The policies are in full force and effect, and Deliverz has not received any notice of intent
 to cancel them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.21. Amounts
 due to Deliverz employees (including service providers who may have been considered as employees)
 for their work (or services), as well as amounts required to be deposited with third parties
 under law, agreement, extension order, arrangement or practice (including, without limitation,
 severance pay, accrued vacation, recuperation pay, pension fund, provident fund, and study
 fund contributions) have been fully paid or deposited, and if there is no such requirement
 under law, agreement or practice, full provisions have been made for them in Deliverz's
 financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.22. Deliverz
 has paid all amounts owed to its former employees (and former service providers who may have
 been considered as employees) in connection with their employment and/or termination. There
 are no outstanding claims or demands by any current or former employee or service provider
 against Deliverz relating to their employment or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.23. Deliverz
 is not dependent on any supplier, customer, service provider, distributor, agent, or franchisee
 for continuing its operations as conducted at the time of signing this Agreement. Deliverz
 is not aware of any intent by any material supplier, customer, service provider, distributor,
 agent, or franchisee to terminate its engagement with Deliverz, materially reduce the scope
 of such engagement, or materially change the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. **In addition to their representations under Section 3, the Deliverz Shareholders hereby represent and undertake as follows**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1. All
 Deliverz securities (comprising the entire issued and paid-up share capital of Deliverz on
 a fully diluted basis, to be transferred to the Company under this Transaction) shall, on
 the Closing Date, be clean, free, and fully owned by the Deliverz Shareholders who have signed
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2. As
 of the execution date of this Agreement and through the Closing Date, they do not and will
 not hold, directly or indirectly, any securities of the Company. As of the execution date
 of this Agreement, there are no agreements of any kind between any representative of the
 Deliverz Shareholders and any shareholder and/or securityholder of the Company regarding
 the purchase or sale of Company securities or the voting rights therein or in connection
 with any future rights to shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3. The
 Acquired Securities are Free and Clear, and no liens or commitments to create liens shall
 be imposed upon them prior to the completion of the Merger. They shall remain Free and Clear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4. The
 Deliverz Shareholders and the Founder (hereinafter: the "**Offerees**") acknowledge
 that, pursuant to Section 15C of the Securities Law, there shall be a restriction and/or
 prohibition on any actions involving the Allocated Shares and Founder Shares, and they undertake
 to comply with such restrictions and not to take any action regarding such shares that may
 be deemed a public offering in violation of the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5. The
 Deliverz Shareholders acknowledge that, in addition to the lock-up provisions under the Securities
 Law, the Allocated Shares issued in exchange for Deliverz shares and the Milestone Share
 Rights may be subject to lock-up restrictions under the Ruling, and they agree to accept
 such lock-up for the period set forth in the Ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.6. Subject
 to the fulfillment of all Conditions Precedent under this Agreement, the Deliverz Shareholders
 and Deliverz (with respect to the obligations it assumes under this Agreement) have: (a)
 full authority to enter into this Agreement; and (b) no restriction and/or prohibition and/or
 impediment to entering into this Agreement and fulfilling their obligations hereunder; and
 (c) no approval or consent is required from any third party in connection with the execution
 or performance of this Agreement; and (d) the execution or performance of this Agreement
 does not constitute a breach of any existing or contingent obligation of Deliverz and/or
 the Deliverz Shareholders toward any third party, including among themselves under any existing
 shareholders' agreements, if any, or under the Articles of Association of Deliverz.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Deliverz
 and the Deliverz Shareholders acknowledge that the Company is entering into this Agreement, *inter alia*, in reliance on the representations detailed in this Section 5 and on the
 undertakings set forth herein. These representations shall remain valid, accurate, and correct
 as of the Closing Date as well (except for those representations that, by their nature, were
 made as of the execution date only). For the avoidance of doubt, the foregoing shall not
 release or diminish the responsibility of Deliverz and the Deliverz Shareholders for the
 representations made herein. Deliverz and the Deliverz Shareholders undertake to notify the
 Company of any change to the representations immediately from the date of signing through
 the Closing Date.

6.  **<u>The Transaction</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. The
 Company and the Deliverz Shareholders shall cooperate in effecting the merger of Deliverz
 and its business operations into the Company by way of a share swap only (with no cash consideration),
 pursuant to Section 103T or 104H of the Ordinance, such that on the Closing Date, the Company
 shall acquire all (100%) of the issued and paid-up share capital of Deliverz, on a fully
 diluted basis, in exchange for the allocation of the Allocated Securities by way of an extraordinary
 private placement pursuant to the Private Placement Regulations, which shall be approved
 by the General Meeting of the shareholders of the Company. The Allocated Shares and the Milestone
 Share Rights shall be allocated to the Deliverz Shareholders in accordance with their holdings
 in Deliverz as of the date of this Agreement, as set forth in  **<u>Appendix A</u>** .

In addition, the Company shall provide Deliverz with a loan in a total amount of ILS 900,000, interest-free (the "**Loan Amount**"), of which, as of the date of execution of this Agreement, Deliverz has received ILS 250,000 through Pure Capital. The remaining loan balance, in the amount of ILS 650,000, shall be provided subject to the execution of a loan agreement between the Parties, under which the terms for providing the remaining loan balance shall be set, contingent upon the progress in completing the Transaction, as well as the repayment terms for the Loan Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The
 number of Allocated Shares, Founder Shares, and Milestone Share Rights to be actually allocated
 shall be determined based on the number of shares in the issued and paid-up share capital
 of the Company on the eve of the Closing Date, after completion of the capital raise to be
 conducted in order to comply with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Assuming
 that the number of shares in the issued and paid-up share capital of the Company on the eve
 of the Closing Date shall be 70 shares, the allocation of the Allocated Shares, Founder Shares,
 and Milestone Share Rights shall be as follows:

On the Closing Date:

---

| | | |
|:---|:---|:---|
|  | Shares | Percentage |
| Deliverz Shareholders | 25 | 25% |
| GIX Shareholders | 70 | 70% |
| Founder | 5 | 5% |
| Total | 100 | 100.00% |

---

Upon achievement of the First Milestone:

---

| | | | |
|:---|:---|:---|:---|
|  | Shares | Shares under the Share Rights | Percentage |
| Deliverz Shareholders | 25 | 11.4 | 32.5% |
| GIX Shareholders | 70 |  | 62.5% |
| Founder | 5 | 0.6 | 5% |
| Total | 100 | 12 | 100% |

---

Upon achievement of the Second Milestone:

---

| | | | |
|:---|:---|:---|:---|
|  | Shares | Rights to Share | Percentage |
| Deliverz Shareholders | 25 | 26.6 | 40% |
| GIX Shareholders | 70 |  | 55% |
| Founder | 5 | 1.4 | 5% |
|  | 100 | 28 | 100.00% |

---

The actual number of Allocated Shares, Founder Shares, and Milestone Share Rights to be allocated shall equal the number of shares in the Company's issued and paid-up share capital shortly before the Closing Date divided by 70, multiplied by the number of securities detailed in each row of the tables above. If the result of such multiplication yields a non-whole number, it shall be rounded to the nearest whole number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. At
 the Merger Completion Date, the Company shall hold in its account cash equal to the Net Cash
 Amount at Closing, as defined in Section 4.20 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. Subject
 to the achievement of the milestones set forth below, additional ordinary shares of the Company
 shall be allocated to the Deliverz Shareholders without any additional consideration, other
 than the Deliverz shares, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.1. <u>Milestone 1</u>: Deliverz shall successfully complete a transaction for the supply of 20 robots within
 18 months of the Closing Date. In such case, the Milestone Share Rights shall convert into
 11.4 additional ordinary shares of the Company for the Deliverz Shareholders and 0.6 additional
 ordinary shares of the Company for the Founder, which would result in the Deliverz Shareholders
 holding a total of 32.5% and the Founder holding a total of 5% of the Company's issued
 and paid-up share capital, based on the Company's share capital as of the eve of the
 Closing Date, and without taking into account any additional Milestone Share Rights.

The actual number of shares to be allocated upon the achievement of the milestones shall be equal to the number of shares in the issued and paid-up share capital of the Company shortly before the Closing Date, divided by 70, multiplied by the number of securities detailed in each row of the tables above. If the result is a non-integer, it shall be rounded to the nearest whole number.

In this Section, "Transaction" means a binding agreement for the supply of 20 robots to a customer who undertakes to pay a monthly fee for the use of each robot supplied, in an amount not less than $1,000 per robot per month, for a term of not less than 24 months, or alternatively - a sale transaction of robots for a price of not less than $10,000 per robot, and a service agreement of not less than $400 per month per robot, for a term of no less than 24 months. Notwithstanding the above, it is agreed and clarified that no robot shall be sold for a total consideration (including immediate and monthly payments, non-discounted) lower than 2× the cost of manufacturing the robot.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.2. <u>Milestone 2</u>: The Company shall complete a transaction for the supply of 200 robots within 48 months
 of the Closing Date. In such case, the Milestone Share Rights shall convert into 26.6 additional
 ordinary shares of the Company (less the shares issued to the Deliverz Shareholders under
 Milestone 1, if issued), for the Deliverz Shareholders, and 1.4 additional ordinary shares
 of the Company (less the shares issued to the Founder under Milestone 1, if issued), for
 the Founder, which would result in the Deliverz Shareholders holding a total of 40% and the
 Founder a total of 5%, based on the Company's issued and paid-up share capital shortly
 before the Closing Date.

It is clarified that if the conditions for the share allocation under Milestone 1 are met, then the number of shares to be allocated under Milestone 1 shall be deducted from the number of shares to be allocated under Milestone 2 (to the extent the conditions for share allocation under Milestone 2 are met).

The actual number of Allocated Shares to be allocated as part of meeting the Milestones shall equal the number of shares in the issued and paid-up share capital of the Company immediately prior to Completion divided by 70, multiplied by the number of Securities listed in each row in the tables above. If the result of the multiplication is a non-whole number, it shall be rounded to the nearest whole number.

In this Section, "Transaction" means a binding transaction for the supply of 200 robots to a customer who shall undertake to make monthly payments for the use of each robot supplied to it, with a monthly fee per robot of no less than $1,000 and for a period of no less than 24 months per robot, or alternatively – a sale transaction for each robot for consideration of no less than $10,000 per robot and a service contract for not less than $400 per month for a period of not less than 24 months. Notwithstanding the above, it is agreed and clarified that a robot shall not be sold for total consideration (including both the upfront payment and the non-discounted monthly payments) lower than twice the manufacturing cost of the robot.

7.  **<u>Grant of Options to Amir Nardimon</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. As
 part of the terms of service and employment of Amir, who serves as CEO of Deliverz, as attached
 hereto as Appendix 7.1 to this Agreement (the "**Employment Agreement** "),
 the Company shall allocate to Amir, upon completion of the Transaction, options representing
 5% of the issued and paid-up share capital of the merged Company as of the Closing Date,
 on a fully diluted basis excluding the dilution from the Milestone Share Rights (the "**Option Share Capital** "), under the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 vesting period of the options shall be over four (4) years, in 16 equal quarterly installments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 exercise price of each option shall reflect a Company valuation of ILS 40,000,000 following
 the Transaction. For example, if on the Closing Date the issued and paid-up share capital
 of the Company consists of 100 shares, Amir shall be granted 6.4 options convertible into
 shares of the Company, representing 5% of the Option Share Capital, with an exercise price
 of ILS 400,000 per option.

It is clarified that the numbers in the example shall be adjusted in accordance with the Company's issued and paid-up share capital on the Closing Date based on the following mechanism:

The number of options to be granted to Amir shall equal the number of shares in the issued and paid-up share capital of the Company shortly before the Closing Date divided by 70, multiplied by 6.4 options as referenced above. If the result is a non-integer, it shall be rounded to the nearest whole number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Exercise
 period – 4 years from the vesting date of the respective option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Exercise conditions</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. With
 respect to options representing 5% of the issued and paid-up share capital of the Company
 on the Closing Date (excluding dilution due to the Milestone Share Rights) – expiration
 of the vesting period only;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. With
 respect to additional options that may be granted upon achievement of a milestone, such that
 Amir's holding upon exercise will amount to 5% of the Option Share Capital - the following
 cumulative conditions shall apply: (a) expiration of the vesting period; and (b) allocation
 of shares to the Deliverz Shareholders upon achievement of the milestone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. The
 options shall be granted in accordance with the provisions of section 102 of the Income Tax
 Ordinance such that, upon exercise, Amir's holding of shares and options in the Company
 shall not exceed 9.99% on a fully diluted basis. The Employment Agreement with Amir shall
 include a mechanism whereby, to the extent that the full number of options detailed in Section
 7.1 above is not granted to Amir on the Closing Date, future capital raises shall include
 additional option grants to Amir such that, assuming exercise, his holding in the Company
 shall be 9.9%. This anti-dilution protection for the CEO of Deliverz shall apply until Amir
 has been granted, in total, options representing 5% of the issued and paid-up share capital
 of the Company on a fully diluted basis and excluding the options granted to him, as such
 capital shall be on the Closing Date of the Merger Transaction with Deliverz.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Each
 option that vests shall be exercisable only if, at the time of vesting, Amir is employed
 by the Company or by Deliverz (either as an employee or as a service provider).

7.4. 8.  **<u>Actions on the Closing Date</u>** 

Subject to the fulfillment of the Conditions Precedent set forth in Section 16 below, the following actions shall be performed on the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <u>Acquisition of Deliverz Shares;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <u>Allocation of Shares and Milestone Share Rights</u>:

Against the transfer to the Company of the Acquired Securities, Free and Clear, the Company shall allocate to the Deliverz Shareholders the Allocated Shares and the Milestone Share Rights as detailed in Section 6.5 above, Free and Clear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1. <u>Deposit of Allocated Shares and Milestone Share Rights to Secure the Tax Ruling Terms</u>: Immediately
 upon their allocation, the Allocated Shares and the shares to be issued upon exercise of
 the Milestone Share Rights shall be transferred to the Trustee, with whom a trust agreement
 in a mutually agreed format shall be signed before the Closing Date (the Trustee shall bear
 the responsibility of opening the trust account). This shall be done to ensure compliance
 with the lock-up requirements under the Ruling and/or the Ordinance and to ensure the fulfillment
 of all other obligations arising under the Ruling. The Company shall bear all trust-related
 costs. Concurrently with and subject to the allocation of the Allocated Shares and the Milestone
 Share Rights, the Deliverz Shareholders shall sign a suitable undertaking with respect to
 compliance with the Ruling and the deposit of the Allocated Shares and the shares to be issued
 upon exercise of the Milestone Share Rights with the Trustee. It is clarified that, subject
 to the Ruling, the voting rights attached to the Allocated Shares and the shares to be issued
 from the Milestone Share Rights shall remain with the Deliverz Shareholders, who shall vote
 by instructing the Trustee holding the shares in trust, in accordance with the provisions
 of the trust agreement or a separate special instruction issued directly to the Trustee by
 each Deliverz Shareholder, at his discretion and subject to applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. The
 Company shall allocate options to Amir in accordance with the Company's equity compensation
 plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. The
 Allocated Shares and shares issued from the Milestone Share Rights shall be allocated in
 the name of the Company for Registration in favor of a bank account to be opened by the Trustee
 on behalf of the Deliverz Shareholders (the "**Trust Account**") and shall
 be held in trust by the Trustee in the Trust Account for the benefit of the Deliverz Shareholders
 in accordance with the agreement to be executed among them by the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. It
 is agreed that the tax cost basis to be provided by the Company to the Registrar Company
 shall be in accordance with the Ruling's terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. The
 Allocated Shares and the shares issued from the Milestone Share Rights shall be allocated
 Free and Clear, except as subject to applicable law, including the lock-up conditions as
 defined above, and except for the Offerees' undertaking (to the extent such limitation
 is applicable to them under law and/or the Ruling) not to breach the terms of the Ruling.
 In exchange therefor, the Deliverz Shareholders shall transfer to the Company 100% of the
 issued and paid-up share capital of Deliverz, Free and Clear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7. On
 the Closing Date, the Founder Shares shall be allocated to the Founder, as set forth in Section
 2.13 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8. The
 Founder hereby confirms, by his signature in the margins of this Agreement, that he shall
 bear all tax costs arising from the allocation of the shares issued to him, except for VAT
 (if applicable), based on a tax invoice for services rendered by him to be delivered to the
 Company. This amount shall be paid to the Founder in cash by the Company. For the avoidance
 of doubt, it is clarified that such payment shall be subject to the completion of the Merger
 Transaction, issuance of a proper tax invoice, and applicable law. The said VAT amount shall
 not be deducted from the Net Cash Amount at the Closing Date as defined in Section 4.20 above.

9.  **<u>Appointment of Director</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. On
 the Closing Date, and subject to approval by the General Meeting of the shareholders of the
 Company, one director shall be appointed to the Company's Board of Directors, recommended
 by the Deliverz Shareholders. The recommendation shall be accompanied by the proposed director's
 written consent and declarations as required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. Letters
 of resignation from the current directors of Deliverz, in the form attached hereto as  **<u>Appendix 9.2</u>** to this Agreement.

10.  **<u>Terms of Service for Officers</u>** 

As part of the approval of the engagement under this Agreement, the Company Approvals shall include approval of the updated compensation policy attached as **<u>Appendix 10</u>** to this Agreement and approval of the terms of service for the Company's officers, including insurance, indemnification, and exemption, and specifically, Amir's terms of office.

11.  **<u>Indemnification and Exemption Letters</u>** 

On the Closing Date, and subject to the receipt of Company Approvals, indemnification and exemption letters shall be granted to the directors and officers appointed on the Closing Date, in the forms customarily used by the Company.

12.  **<u>Directors and Officers Liability Insurance</u>** 

On the Closing Date, and subject to the approvals required by law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. If
 the Company's ongoing D&O insurance policy lapses as a result of the Transaction
 contemplated under this Agreement, the Company shall purchase a Run-Off D&O liability
 insurance policy for events occurring up to the Closing Date, effective from the Closing
 Date for a period of seven (7) years, with terms and coverage no less favorable than the
 Company's existing policy as of the date of execution of this Agreement. The policy
 shall cover directors and officers who served in the Company prior to the Closing Date. It
 is clarified that the full cost of such policy shall be paid by the Company prior to the
 completion of the Transaction and shall not reduce the Net Cash Amount at the Closing Date.

13.  **<u>Interim Period</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. From
 the date of signing this Agreement until the Closing Date or until the date of termination
 of this Agreement, whichever is earlier (hereinafter: the "**Interim Period** "),
 and without derogating from the representations and undertakings of Deliverz and the Deliverz
 Shareholders as set forth in Section 5 above, the following provisions shall apply, unless
 otherwise agreed in advance and in writing by the Parties, and except for any action expressly
 permitted under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.1. Deliverz
 and the Deliverz Shareholders shall conduct their business in their ordinary course.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.2. The
 Parties shall not undertake any actions that could reasonably be expected to result in a
 Material Adverse Change in the representations and warranties of Deliverz and the Deliverz
 Shareholders as set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.3. Deliverz
 (including the Deliverz Shareholders) shall not make any changes to the capital structure
 or share capital of Deliverz and/or to its Articles of Association, and the Deliverz Shareholders
 shall not sell and/or transfer the shares held by them as of the date of this Agreement to
 any third party, except as provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.4. Except
 as provided in this Agreement or as approved in advance and in writing, neither Deliverz
 nor any of the Deliverz Shareholders shall enter into or undertake any transactions with
 Officers and/or Interested Parties and/or Controlling Shareholders and/or any party related
 to them directly and/or indirectly, in which there is a personal interest, including any
 change in terms of engagement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.5. Deliverz
 shall not perform any action (other than as required by law or regulatory directives) that
 could reasonably be expected to frustrate or hinder the completion of the Transaction (under
 its terms).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.6. Deliverz
 (including the Deliverz Shareholders) shall not undertake to allocate and/or shall not allocate
 new shares, and shall not undertake to grant and/or shall not grant options or rights to
 shares, except as detailed in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.7. There
 shall be no change to the rights attached to Deliverz shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.8. Deliverz
 (including the Deliverz Shareholders) shall not make any "Distribution" (as defined
 under the Companies Law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.9. During
 the Interim Period, the Company shall act to publish any additional reports regarding the
 Transaction, as required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.10. During
 the Interim Period, the Parties shall notify each other in writing and within 24 hours regarding:

&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.10.1. A
 notice from any party asserting that its consent is required for the completion of the Transaction,
 which was not included in the representations specified in this Agreement;

&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.10.2. Any
 material claim, demand, or allegation against any of the Parties that becomes known to them
 or is filed against them during the Interim Period, which was not included in the representations
 specified in this Agreement;

&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.10.3. Any
 material change in the accuracy of their representations under this Agreement, any related
 agreements, or appendices, as well as any material change, material event, or change or event
 that could materially affect their operations or businesses;

&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.10.4. Any
 material adverse change in any of the representations given by any of the Parties in this
 Agreement and/or in the business and/or financial condition of the Company and/or Deliverz,
 and/or in their capital and/or assets, which could affect the Company and/or their obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. The
 Parties shall cooperate and provide any information required by the Company for the purpose
 of reports to the Israel Securities Authority and/or the Tel Aviv Stock Exchange and/or the
 London Stock Exchange, and to the Company's shareholders in connection with this Agreement.
 In addition, during the Interim Period, the Parties shall act jointly and assist each other
 as much as possible in order to fulfill all the Conditions Precedent, including submission
 of an application for approval of the Merger between the Parties to the Commissioner of Competition.

14.  **<u>Actions to Be Performed Until the Closing Date</u>** 

From the date of signing this Agreement until the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. At
 the Company's discretion, the shareholders' loans provided by all the Deliverz
 Shareholders to Deliverz, in a total amount of approximately ILS 1 million, shall be converted
 into issued and paid-up share capital of Deliverz, or alternatively – such loans shall
 be assigned to the Company without consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. The
 Company shall complete the capital raising for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. The
 Company shall submit the tax ruling request to the Tax Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4. The
 Company shall prepare and publish the notices convening the general meeting of the Company
 and the reports required in connection with the Transaction and the various engagements provided
 in this Agreement, including the transaction report, whereas Deliverz shall prepare the outline
 to be attached to the transaction report. Deliverz shall cooperate with the Company, as reasonably
 required under the circumstances, for the preparation of all documents required for implementing
 the Agreement and executing the Transaction, including preparation of the aforementioned
 Outline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5. No
 later than 14 days after receipt of all documents required to convene the meeting as provided
 by the Securities Law (including a final reportable outline to be prepared by Deliverz, audited
 and reviewed financial statements of Deliverz in accordance with the legal requirements,
 and the compensation policy), and subject to the approval of the Compensation Committee,
 the Audit Committee, and the Board of Directors of the Company, which shall be given (if
 and to the extent given), *inter alia*, based on a review of such documents, the Company
 shall convene a special general meeting of its shareholders to approve the Merger Transaction,
 in which the following shall be approved (hereinafter: the "**General Meeting Approval** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.1. Approval
 of the acquisition of the Acquired Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.2. Approval
 of all allocations provided under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.3. Approval
 of the appointment of a director on behalf of the Deliverz Shareholders and approval of the
 appointment of an Officer on behalf of the Deliverz Shareholders, if such appointment requires
 approval under the Companies Law, either as a director in the Company for one year or as
 an officer in the Company, as applicable, including approval of their service and employment
 terms, which shall include provisions on insurance, indemnification, and exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.4. If
 the Company's On-going insurance policy lapses due to the Transaction contemplated
 in this Agreement – approval of the Company's engagement in a Run-Off D&O
 liability insurance policy and the insurer's approval thereof, subject to completion
 of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.5. Approval
 of a compensation policy for the Company in the form attached as  **<u>Appendix 14.5.5</u>** to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.6. Approval
 of the consolidation of the Company's issued and paid-up share capital only (i.e.,
 excluding consolidation of the registered share capital) in a ratio of 20:1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5.7. Approval
 of the Employment Agreement of Amir in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6. It
 is clarified that as part of the General Meeting Approval, authorization shall be granted
 to the Board of Directors of the Company to take all required actions to complete and implement
 the decisions submitted for its approval as stated above, including authorization of the
 Board of Directors of the Company to extend the deadline for fulfillment of the Conditions
 Precedent or to waive any of the Conditions Precedent, provided that in the opinion of the
 Company's Board of Directors, such changes or waivers do not adversely affect the terms
 of the Transaction applicable to the Company, and the waiver is not contrary to law.

15.  **<u>Closing</u>** 

Subject to the fulfillment of the Conditions Precedent set forth in Section 16 below, the Transaction shall be completed on the Closing Date at 12:00 p.m. at the offices of Meitar & Co. Law Offices, 16 Abba Hillel St., Ramat Gan, or on another date or at another location as agreed in writing between the Parties. The actions detailed below shall be deemed performed as a single, simultaneous event, and none shall have effect unless all are completed in full and simultaneously. No single action shall be considered completed, nor any single document deemed delivered, until all actions have been completed and all documents delivered. It is agreed that changes may occur in the Closing procedure, which shall be discussed and agreed upon by the Parties in good faith and reasonably, in order to ensure, to the extent possible, the simultaneous performance of the following actions:

<u>Deliverz and the Deliverz Shareholders</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. Deliverz
 and the Deliverz Shareholders shall deliver to the Company transfer deeds for the Acquired
 Securities from the Deliverz Shareholders to the Company, signed by the Deliverz Shareholders,
 along with a board resolution of Deliverz approving the Transaction and the transfer of the
 Acquired Securities to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. The
 Deliverz Shareholders shall transfer to the Company the Acquired Securities, free and clear
 of any encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. Deliverz
 shall record the aforementioned transfer in its Shareholder Register and deliver to the Company
 a duly signed copy of the updated register, and shall also sign and deliver to the Company
 a copy of the reporting forms to the Registrar of Companies in connection with the shares
 acquired by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. Deliverz,
 its Shareholders, and if held by a corporate entity – the individuals holding ultimate
 control in such corporate Shareholders, shall deliver to the Company a written statement,
 in the form attached as  **<u>Appendix 15.4</u>** to this Agreement, that all the representations
 and undertakings given by them in Sections 5.1 and 5.2 are true and correct in all material
 respects, except for the representations and undertakings listed in Sections 3, 5.1.1-5.1.4
 and 5.1.7-5.1.9, which shall be entirely true and correct as of the Closing Date, and that
 no Material Adverse Change has occurred in the condition of Deliverz.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. They
 shall deliver signed copies of the undertakings as referenced in Section 8.2.1 above, regarding
 compliance with the tax ruling and deposit of the allocated shares with a trustee, signed
 by the Deliverz Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6. They
 shall deliver signed copies of the agreements with the Officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7. An
 undertaking that, if an in-kind distribution of VIEWBIX shares is carried out, the Deliverz
 Shareholders shall sign a waiver letter as required under the clearing house regulations,
 confirming their waiver of their entitlement to such dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8. A
 written confirmation that all representations and undertakings made by Deliverz as set forth
 in Section 5 above are true and correct as of the Closing Date, and that they have not breached
 any of their obligations under this Agreement during the Interim Period.

<u>Company</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9. The
 Company shall deliver to Deliverz and the Deliverz Shareholders a copy of the resolutions
 of its competent corporate bodies, approving its entry into this Agreement and all the transactions
 included and detailed herein, as well as the performance of all actions required under this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10. The
 Company shall deliver to Deliverz and the Deliverz Shareholders a copy of the minutes of
 the resolution of the General Meeting approving the Transaction and all other transactions
 and actions referenced in this Agreement, including the resolutions detailed in Section 14.5
 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.11. A
 confirmation signed by an Officer that share certificates and/or allocation letters have
 been issued in the name of the Company for all the Allocated Shares under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.12. A
 copy of Form T-87 reflecting the allocation of all the Allocated Shares under this Agreement
 and the rights to receive the Milestone Shares (or a copy of any other reporting form reflecting
 the allocation of rights to the Milestone Shares in accordance with applicable law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.13. A
 copy of Form T-97 reflecting the changes in the composition of the Board of Directors and
 other Officers of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.14. A
 signed Option Allocation Agreement for Amir, executed by an Officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.15. A
 copy of the indemnification and exemption letters to be granted on the Closing Date to the
 Company's directors and Officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.16. A
 copy of the relevant insurer's approval for the Company's engagement in a Run-Off
 Directors and Officers Liability Insurance Policy in accordance with Section 12.1 above (i.e.,
 subject to the need for such insurance, if the Company's On-going insurance policy
 lapses due to the performance of the Transaction contemplated in this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.17. A
 declaration by the Company, in the form attached hereto as  **<u>Appendix 15.17</u>** ,
 confirming that all the representations and undertakings set forth in Section 4 above are
 true and correct in all material respects as of the Closing Date, except for those explicitly
 made as of a specific date (in which case they shall be true and correct in all material
 respects as of that date only), and that no Material Adverse Change has occurred in the condition
 of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.18. The
 approval of the Stock Exchange for the listing for trading of all the Allocated Shares, the
 shares resulting from exercise of the options granted to the Officers, and the shares resulting
 from the exercise of the rights to the Milestone Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.19. The
 Company shall allocate to the Deliverz Shareholders and the Founder, respectively, the Allocated
 Shares and the Founder Shares under this Agreement, free and clear (except for lock-up conditions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.20. The
 Company shall deliver to Deliverz a bank confirmation of the Company's cash balances
 in its accounts as of the Closing Date and a signed confirmation from the Company's
 CFO confirming that the Net Cash Amount in the Company's accounts complies with the
 condition for the Net Cash Amount on the Closing Date, as defined above.

16.  **<u>Conditions Precedent</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. Completion
 of the Transaction pursuant to this Agreement and its performance is subject to the full
 and cumulative satisfaction of each of the conditions precedent set forth in this Section
 by March 31, 2025 (hereinabove and hereinafter: the "**Conditions Precedent** "
 and the "**Final Date**," respectively):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.1. Receipt
 of legally valid approval from the Company's corporate organs for each of the items
 on the agenda of the General Meeting as detailed in Section 14.5 above, and for the agreements
 with the Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.2. Valid
 approval of all the engagements contemplated under this Agreement by the competent organs
 of Deliverz;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.3. Receipt
 of Stock Exchange approval for listing for trading all Allocated Shares under this Agreement
 (including the Founder Shares, the shares resulting from the exercise of options granted
 to the Officers, and the shares resulting from the exercise of rights to the Milestone Shares);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.4. Receipt
 of the tax ruling to the satisfaction of the Company, Deliverz, and the Deliverz Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.5. The
 Net Cash Amount as of the Closing Date, as defined in Section 4.20 above, shall not be less
 than ILS 4,500,000, as detailed in Section 4.20 above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.6. As
 of the Closing Date, there shall be no legal impediment of any kind to the performance of
 the Transaction, including no valid judicial order preventing the completion of the Transaction
 under its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1.7. If
 required, receipt of approval from the Commissioner of Competition for the merger between
 the Parties pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2. The
 Parties shall cooperate and provide any information reasonably required by the Company for
 reports to the Israel Securities Authority and/or the Stock Exchange and the Company's
 shareholders in connection with this Agreement. The Parties shall coordinate any notice and/or
 public announcement, subject to applicable legal restrictions, regarding any disclosure required
 by law. In addition, during the Interim Period, the Parties shall act jointly and support
 one another as much as possible in order to satisfy all Conditions Precedent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3. If
 all the Conditions Precedent set forth in this Section are not fulfilled by March 31, 2025
 (the "**Termination Date** "), each Party may notify an extension of the period
 for their fulfillment until April 30, 2025 (the "**Extended Date** "). If the
 Conditions Precedent are not fulfilled by the Extended Date, and the Parties have not agreed
 in writing to further extend the deadline, and no Party has waived fulfillment of a condition
 precedent made for its benefit, this Agreement shall expire on the Termination Date or the
 Extended Date (as applicable), without either Party having any claim and/or demand under
 it due to its non-effectiveness or termination. Notwithstanding the foregoing, non-fulfillment
 of a condition precedent caused by an act or omission in bad faith by a Party to this Agreement
 shall be considered a breach by such Party of its obligations under this Agreement, entitling
 the other Party to all remedies available under law.

17.  **<u>Indemnification and Liability of the Company and the Deliverz Shareholders for Representations and Undertakings</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1. The
 Company on one hand, and the Deliverz Shareholders on the other hand, as the case may be
 and as applicable (the "**Breaching Party** "), hereby undertake to indemnify
 the other Party (the "**Injured Party**") for any direct loss, damage, liability,
 responsibility, or expense incurred by the Injured Party, including reasonable legal expenses
 (hereinafter: "**Indemnifiable Damage** "), resulting from: (a) any of the
 Breaching Party's representations set forth in this Agreement being misleading, untrue,
 inaccurate, or materially incomplete (hereinafter: "**Breach of Representation** ");
 and/or (b) a material breach by the Breaching Party of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2. The
 obligation of the Breaching Party to indemnify shall be subject to the condition that for
 any indemnification liability not exceeding an aggregate amount of ILS 150,000 (in this Section:
 the "Base Amount"), no indemnification shall be paid. If the aggregate Indemnifiable
 Damages exceed the Base Amount, indemnification shall be due for the full amount (from the
 first shekel), without any reduction of the Base Amount. This limitation shall not apply
 in cases of (a) any loss, damage, fine, liability, or expense arising from the Breaching
 Party's final tax liability, and (b) willful misrepresentation or fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3. In
 any case other than willful misrepresentation or fraud, and notwithstanding anything to the
 contrary in this Agreement or under any law, the total indemnification amount payable by
 the Deliverz Shareholders pursuant to this Agreement shall be limited and shall be provided
 to the Injured Party solely by way of transfer, without consideration, of Allocated Shares,
 up to the total number of Allocated Shares to be allocated to the Deliverz Shareholders under
 this Agreement (the "**Deliverz Indemnification Cap** "), in a quantity sufficient
 to neutralize the financial damage incurred by the Company (i.e., to restore the economic
 value of its holdings to the state it would have been in had the Indemnifiable Damage under
 this Section 17 not occurred), based on the lower of: (a) the average trading price of the
 Company's shares on the Stock Exchange during the 30 trading days preceding the indemnification
 demand; or (b) the date of actual indemnification. If, prior to the indemnification date,
 the shares allocated to the Deliverz Shareholders under this Agreement have been sold, the
 indemnification shall be made in cash and shall be limited to ILS 1,000,000. Notwithstanding
 the foregoing, the Deliverz Shareholders may, at their sole discretion, notify the Injured
 Party that the indemnification shall be paid in cash instead of by share transfer as stated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4. Without
 derogating from the provisions above and below, it is clarified that the indemnification
 obligations of each of the Shareholders of Deliverz pursuant to this Section 16 shall be
 joint and several.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5. In
 any case other than willful misrepresentation or fraud, and notwithstanding anything to the
 contrary in this Agreement or under any law, the total indemnification amount payable by
 the Company under this Agreement shall be limited to ILS 1,000,000, and shall be provided
 to the Injured Party solely by way of allocation of ordinary shares of the Company without
 consideration (the "**Company Indemnification Cap** "), in a quantity sufficient
 to neutralize the financial damage incurred by the Injured Party (i.e., to restore the economic
 value of its holdings to the state it would have been in had the Indemnifiable Damage under
 this Section 17 not occurred), based on the lower of: (a) the average trading price of the
 Company's shares on the Stock Exchange during the 30 trading days preceding the indemnification
 demand; or (b) the date of actual indemnification. If additional ordinary shares of the Company
 cannot be allocated pursuant to this Section 17.5, the indemnification shall be paid in cash
 by the Company up to the Company Indemnification Cap.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6. In
 the event that a claim, demand, or allegation (the "**Claim**") is made by
 any third party against any of the Parties to this Agreement, which may result in the Breaching
 Party being liable to indemnify under Section 17 above, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6.1. The
 Injured Party shall notify the Breaching Party of the Claim as soon as practicable after
 receipt, including all documents received and/or relevant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6.2. The
 Breaching Party may notify the Injured Party, within seven (7) days from receipt of the indemnification
 demand, whether it wishes to conduct the defense, including appointment of counsel for the
 Injured Party, at the Breaching Party's expense and subject to this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6.3. The
 Injured Party shall cooperate reasonably with the Breaching Party as required to allow and
 assist it in defending against the Claim, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6.4. The
 Injured Party shall not settle any such Claim or agree to refer the Claim to arbitration,
 mediation, or any other alternative dispute resolution process without the prior written
 consent of the Breaching Party, which shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7. The
 Breaching Party's liability for indemnification under Section 17 shall remain in force
 for 24 months from the Closing Date. It is clarified that in any event, this time limitation
 on indemnification shall not apply to any indemnification cause of action for which a claim
 was filed before the expiration of the indemnification period, provided the Injured Party
 sent notice of such claim to the Breaching Party before such expiration. This time limitation
 shall also not apply in cases of willful misrepresentation or fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8. The
 Parties declare and undertake that, except in cases of willful misrepresentation or fraud,
 the indemnification detailed in this Section 17 constitutes the sole and exclusive remedy
 available to them under law or contract in connection with this Agreement and the provisions
 of law related thereto, including any claim, demand, or action concerning the formation or
 breach of this Agreement (including breaches of representations and undertakings), and they
 shall have no other remedy in connection with this Agreement whether under contract or law.
 For the avoidance of doubt, a claim that may have both contractual and legal grounds shall
 be actionable solely under this Section 17. The indemnification under Section 17 shall not
 include indemnification for any indirect and/or consequential damages, and the limitations
 thereof shall not apply to claims for such damages.

18.  **<u>Taxes and Other Expenses</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1. Each
 Party shall bear its own tax liability arising from the performance of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2. The
 Company shall bear any expenses, costs, and fees imposed under any applicable law and/or
 incurred by it during the execution or performance of this Agreement, including attorney
 fees, accountant fees, and other consultants' fees (whether the transaction is completed
 or canceled pursuant to the provisions of this Agreement), as detailed in  **<u>Appendix 18.2</u>** to this Agreement, and such amounts shall not reduce the Net Cash Amount at
 Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3. Deliverz
 shall bear the expenses and costs it incurred during the execution or performance of this
 Agreement, including attorney fees, accountant fees, tax ruling consultant fees, and other
 consultants' fees (whether the Transaction is completed or canceled pursuant to the
 provisions of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4. If
 the Transaction is not completed, each of the Parties shall bear its own expenses as detailed
 in  **<u>Appendix 19.2</u>** to this Agreement, and no accounting shall be made in this
 matter.

19.  **<u>Confidentiality</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1. It
 is agreed and declared that each Party undertakes to maintain in strict confidence any commercial,
 economic, business, or other information concerning the business, assets, and plans of the
 other Parties, which has been or will be disclosed to it during the term of this Agreement,
 as well as during the negotiations for its execution and the due diligence process carried
 out by the Parties and in preparation of the Outline (hereinafter: the "**Information** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2. The
 provisions of Section 19.1 above shall apply and remain in effect even after expiration or
 termination of this Agreement for any reason, for an unlimited period of time. However, they
 shall not apply, or shall cease to apply, as the case may be, with respect to Information
 or parts thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.1. That
 was in the public domain at the time of signing this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2.2. That
 entered the public domain after the signing of this Agreement through no breach of the obligations
 of the receiving Party as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3. The
 provisions of Section 19.1 shall not apply to Information that a Party is legally required
 to disclose, including under the Securities Law and the regulations enacted thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4. Deliverz
 and the Deliverz Shareholders undertake not to make any use of the Information and/or based
 on the Information that is prohibited under Chapter H'1, Article E of the Securities
 Law.

20.  **<u>Miscellaneous</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1. The
 Parties undertake to perform all actions and sign all documents, approvals, forms, and declarations
 as may be required and useful for the implementation of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2. This
 Agreement contains, embodies, merges, and expresses all the agreed terms between the Parties.
 Any promises, guarantees, written or oral agreements, undertakings, or representations relating
 to the subject matter of this Agreement that were made by the Parties prior to the execution
 of this Agreement and are not explicitly reflected herein shall not add to, derogate from,
 or alter the obligations and rights set forth in this Agreement, and the Parties shall not
 be bound by them as of the date of this Agreement. For the avoidance of doubt, it is clarified
 that the Memorandum of Understanding and the agreement whose signatures were held in trust
 by the Parties' counsel on December 5, 2024 (which did not crystallize into a binding
 agreement), are null and void upon the signing of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3. Any
 modification, amendment, or waiver relating to this Agreement shall be valid only if executed
 in writing and shall be limited to the matter for which it was originally made. A waiver
 in any instance shall not constitute a precedent for any other instance. Failure to act or
 delay in action shall not be deemed a waiver and shall not impair the rights and obligations
 of any Party with respect to such action. The Breaching Party may not raise a claim of waiver
 or delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4. The
 obligations and rights of the Parties under this Agreement may not be assigned or transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5. The
 terms of this Agreement fully encompass all the conditions and understandings between the
 Parties concerning the Merger, the Consideration to be paid thereunder, and all agreements
 related to its performance, and they shall prevail over any prior arrangements, understandings,
 representations, and undertakings made orally and prior to the execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.6. If
 the scheduled date for the performance of any stage under this Agreement falls on a non-Business
 Day, such date shall be postponed to the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.7. The
 Memorandum of Understanding and any drafts or other documents exchanged between the Parties
 prior to the execution of this Agreement shall be deemed never to have been made and shall
 not serve as evidence or support for interpretation and/or claims and/or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.8. Any
 change, amendment and/or addition to this Agreement shall not be valid unless made in writing
 and signed by both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.9. This
 Agreement shall be governed by the laws of the State of Israel. The competent courts in the
 Tel Aviv - Yafo district shall have sole jurisdiction to hear any matter related to and/or
 arising from this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.10. All
 notices required under the provisions of this Agreement shall be in writing and sent to the
 Parties' addresses as specified in the preamble to this Agreement, or to any other
 address in Israel of either Party, as notified in writing to the other Party to this Agreement.

Execution Copy sent by registered mail shall be deemed to have been received five (5) days after the date of its dispatch. A notice sent by courier shall be deemed to have been received one Business Day after it was sent, and a notice sent by facsimile or any electronic means shall be deemed to have been received on the date on which the sender confirmed its full receipt, provided that the sender recorded the name of the confirming party and the confirmation date.

**<u>In Witness Whereof The Parties Hereto Have Hereunto Set Their Hands</u>**:

---

| | |
|:---|:---|
| */s/ Amitay Weiss /s/ Amihay Hadad /s/ Eliyahu Yoresh* | */s/ Amir Nardimon /s/ Avi Ben David* |
| **GIX INTERNET LTD** <br> By its authorized signatories: | **Deliverz.AI LTD** <br> By its authorized signatories: |

---

**<u>Deliverz Shareholders</u>**

**<u>Deliverz Shareholders:</u>**

---

| | | |
|:---|:---|:---|
| */s/ Victor Tshuva & Co. Law Offices* | */s/ Avi Ben David* | */s/ Roni Ben David* |
| **Victor Tshuva & Co. Law Offices** | **I.L.D.H. Ben David Holdings Ltd.** | **Dana Optimum Investments Ltd.** |

---

---

| | | |
|:---|:---|:---|
| */s/ Amir Nardimon* | */s/ Moshe Dayan* | */s/ Lavi Krasney* |
| **Amir Nardimon** | **Moshe Dahan** | **CAPITALINK LTD** |

---

**<u>Confirmation by Founder</u>**

We, the undersigned, M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD, hereby confirm, agree, and accept **solely** those provisions of the above Agreement that refer to our Company.

---

| |
|:---|
| */s/ Moti Menashe* |
| **M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD** |

---

## Exhibit 4.5

**Exhibit 4.5**

**<u>Amendment No. 1 to the Share Purchase Agreement dated January 5, 2025</u>**

**Executed and signed on June 26, 2025**

---

| | |
|:---|:---|
| **Between:** | &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;**GIX INTERNET LTD**<br> Public Company No. 520040262<br> 11 Menachem Begin Road, Ramat Gan 5268104<br> (hereinafter: the "**Company**" or "**GIX**")<br>**<u>On the First Part</u>**; |
| **And between:** | **Deliverz.AI LTD**<br> Private Company No. 515592301<br> 54 Arlozorov Street, Tel Aviv – Yafo 6248827<br> (hereinafter: "**Deliverz**")<br>**<u>On the Second Part</u>**; |
| **And between:** | **The shareholders of Deliverz as detailed in <u>Appendix A</u> to this Agreement**<br> (hereinafter: "**Deliverz Shareholders**")<br>**<u>On the Third Part</u>**; |

---

(The Company, Deliverz, and the Deliverz Shareholders shall collectively be referred to hereinafter as the "**Parties**")

---

| | |
|:---|:---|
| **Whereas** | On January 5, 2025, the Parties entered into a share purchase agreement for the acquisition of shares in Deliverz in exchange for the allocation of shares in the Company, which was approved by the general meeting of the Company on May 28, 2025 (the "**Agreement**"); |
| **And whereas** | The Parties wish to amend the Agreement as follows; |

---

**Therefore, it is declared, agreed, and stipulated by and between the Parties as follows:**

1. Section
 2.26 shall be deleted in its entirety.

2. Section
 2.27 shall be deleted in its entirety.

3. Section
 4.10 shall be amended as follows:

"As of the date of this Agreement, the Company holds shares in the companies listed in the annual report (the "**Held Companies**"). The Company intends to consider the distribution of dividends with respect to its holdings in VIEWBIX shares in one or both of the following manners: (a) distribution in kind of all or part of the VIEWBIX shares held by it as a dividend in kind to the Company's shareholders; and/or (b) sale of the VIEWBIX shares held by the Company and distribution of a dividend equal to the net proceeds from such sale, or a portion thereof, as determined by the Company's Board of Directors ("**VIEWBIX Dividend Distribution**"). The Company has no obligations towards the Held Companies, including any investment and/or guarantee obligations and/or any other obligations whatsoever, and the Company is not obligated to fulfill the obligations of the Held Companies. Other than the Held Companies, the Company holds no interest in any other company or affiliate or subsidiary."

4. Section
 4.13 – The following words shall be added to Section 4.13: "Without derogating
 from the foregoing, the Company may obtain credit prior to the Closing Date in order to meet
 its obligations, including financing the obligation set forth in Section 6.4 as amended below."

5. Section
 4.19 – The words "for the purpose of calculating the Net Cash Amount at Closing"
 at the end of the section shall be deleted.

6. Section
 4.20 shall be deleted in its entirety.

7. Section
 4.22 shall be deleted in its entirety.

8. Section
 6.2 – The words "and after the capital raising to be completed prior to the completion
 of the transaction for the purpose of fulfilling the terms of this Agreement" at the
 end of the section shall be deleted.

9. Section
 6.4 shall be deleted in its entirety and replaced with the following: "Starting from
 the month in which the Completion Date occurs and for 12 consecutive months thereafter, the
 Company shall transfer to Deliverz an amount of ILS 300,000 each month for the purpose of
 funding Deliverz's working capital, for a total amount of ILS 3.6 million."

10. Section
 7.1 of the Agreement shall be amended as follows:

"As part of the terms of office and employment of Amir, serving as CEO of Deliverz, attached as Appendix 7.1 to this Agreement (the "**Employment Agreement of Amir**"), the Company shall allocate to Amir, upon completion of the transaction, options equal to 5% of the issued and paid-up share capital of the merged company as of the Completion Date, on a fully diluted basis including dilution for the Milestone Shares, and in any case not more than an amount which, together with the shares of the Company to be allocated to Amir on the Closing Date, reflects a holding of 9.99% of the Company's share capital on a fully diluted basis ("**Option Share Capital**"), all subject to the following terms..."

11. Section
 7.2 shall be deleted in its entirety and replaced with the following: "The options
 shall be allocated pursuant to the provisions of Section 102 of the Income Tax Ordinance."

12. Section
 8.8 – The words "and the VAT amount shall not be deducted from the cash amount
 for the purpose of calculating the Net Cash Amount at Closing as stated in Section 4.20 above"
 at the end of the section shall be deleted.

13. Section
 12.1 – The sentence "It is clarified that the purchase cost of the policy for
 the entire period shall be paid by the Company prior to completion of the transaction and
 shall not reduce the Net Cash Amount at Closing." shall be deleted.

14. Section
 14.2 shall be deleted in its entirety.

15. Section
 15.7 shall be amended as follows:

"An undertaking letter whereby if a VIEWBIX Dividend Distribution, as defined above, is carried out in the form of a distribution in kind of VIEWBIX shares, the Deliverz Shareholders and the Founder shall sign a waiver letter as required under the stock exchange clearinghouse regulations, pursuant to which they waive their share in the dividend in respect of the VIEWBIX Dividend Distribution as said."

16. Section
 15.20 shall be deleted.

17. Section
 16.1 of the Agreement shall be amended as follows:

"Completion of the transaction pursuant to this Agreement and its performance shall be subject to the full and cumulative fulfillment of each of the conditions precedent set forth in this section by March July 31, 2025."

18. Section
 16.1.5 shall be deleted.

19. Section
 16.3 of the Agreement shall be amended as follows:

"If all of the conditions precedent set forth in this section have not been fulfilled by March July 31, 2025 (hereinafter: the "**Final Date**"), any of the Parties may notify the extension of the period for their fulfillment until April 30 August 15, 2025 (hereinafter: the "**Deferred Date**")..."

20. Section
 18.2 – The words "and shall not reduce the Net Cash Amount at Closing"
 shall be deleted.

21. Except
 as expressly provided in this Amendment, no other changes shall be made to the provisions
 of the Agreement, and all other provisions shall remain in full force and effect.

[Signatures of the Parties on the next page]

**<u>In Witness Whereof The Parties Hereto Have Hereunto Set Their Hands</u>**:

---

| | |
|:---|:---|
| /s/ Amitay Weiss /s/ Amihay Hadad /s/ Eliyahu Yoresh | /s/ Amir Nardimon /s/ Avi Ben David |
| **GIX INTERNET LTD** <br> By its authorized signatories: | **Deliverz.AI LTD** <br> By its authorized signatories: |

---

**<u>Deliverz Shareholders</u>**

**<u>Deliverz Shareholders:</u>**

---

| | | |
|:---|:---|:---|
| /s/ **Victor Tshuva & Co. Law Offices** | /s/ Avi Ben David | /s/ Roni Ben David |
| **Victor Tshuva & Co. Law Offices** | **I.L.D.H. Ben David Holdings Ltd.** | **Dana Optimum Investments Ltd.** |

---

---

| | | |
|:---|:---|:---|
| /s/ Amir Nardimon | /s/ Moshe Dayan | /s/ Lavi Krasney |
| **Amir Nardimon** | **Moshe Dahan** | **CAPITALINK LTD** |

---

**<u>Confirmation by Founder</u>**

We, the undersigned, M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD, hereby confirm, agree, and accept solely those provisions of the above amendment to the Agreement that refer to our Company.

---

| |
|:---|
| /s/ Moti Menashe |
| **M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD** |

---

**<u>In Witness Whereof The Parties Hereto Have Hereunto Set Their Hands</u>**:

---

| | |
|:---|:---|
| /s/ Amitay Weiss /s/ Amihay Hadad /s/ Eliyahu Yoresh | /s/ Amir Nardimon /s/ Avi Ben David |
| **GIX INTERNET LTD** <br> By its authorized signatories: | **Deliverz.AI LTD** <br> By its authorized signatories: |

---

**<u>Deliverz Shareholders</u>**

**<u>Deliverz Shareholders:</u>**

---

| | | |
|:---|:---|:---|
| /s/ Victor Tshuva & Co. Law Offices | /s/ Avi Ben David | /s/ Roni Ben David |
| **Victor Tshuva & Co. Law Offices** | **I.L.D.H. Ben David Holdings Ltd.** | **Dana Optimum Investments Ltd.** |

---

---

| | | |
|:---|:---|:---|
| /s/ Amir Nardimon | /s/ Moshe Dayan | /s/ Lavi Krasney |
| **Amir Nardimon** | **Moshe Dahan** | **CAPITALINK LTD** |

---

**<u>Confirmation by Founder</u>**

We, the undersigned, M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD, hereby confirm, agree, and accept solely those provisions of the above Agreement that refer to our Company.

---

| |
|:---|
| /s/ Moti Mensahe |
| **M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD** |

---

**<u>In Witness Whereof The Parties Hereto Have Hereunto Set Their Hands</u>**:

---

| | |
|:---|:---|
| */s/ Amitay Weiss /s/ Amihay Hadad /s/ Eliyahu Yoresh* | */s/ Amir Nardimon /s/ Avi Ben David* |
| **GIX INTERNET LTD** <br> By its authorized signatories: | **Deliverz.AI LTD** <br> By its authorized signatories: |

---

**<u>Deliverz Shareholders</u>**

**<u>Deliverz Shareholders:</u>**

---

| | | |
|:---|:---|:---|
| */s/ Victor Tshuva & Co. Law Offices* | */s/ Avi Ben David* | */s/ Roni Ben David* |
| **Victor Tshuva & Co. Law Offices** | **I.L.D.H. Ben David Holdings Ltd.** | **Dana Optimum Investments Ltd.** |

---

---

| | | |
|:---|:---|:---|
| */s/ Amir Nardimon* | */s/ Moshe Dayan* | */s/ Lavi Krasney* |
| **Amir Nardimon** | **Moshe Dahan** | **CAPITALINK LTD** |

---

**<u>Confirmation by Founder</u>**

We, the undersigned, M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD, hereby confirm, agree, and accept solely those provisions of the above amendment to the Agreement that refer to our Company.

---

| |
|:---|
| */s/ Moti Menashe* |
| **M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD** |

---

## Exhibit 4.6

**Exhibit 4.6**

 **Certain confidential information contained in this document, marked by brackets and asterisk, has been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K, because it (i) is not material and (ii) would be competitively harmful if publicly disclosed**

**<u>Agreement</u>**

**Executed and signed on the 26th day of the month of June in the year 2025**

---

| | |
|:---|:---|
| **Between:** | **GIX INTERNET LTD, Private Company No. 520040262**<br> 11 Menachem Begin Road, Ramat Gan<br> (hereinafter: the "**Borrower**")<br>|
|  | **<u>Of the One Part</u>**; |
| **And between:** | **M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD, Private Company No. 513142562**<br> and/or anyone acting on its behalf<br> 31 Sokolov Street, Ramat Gan 5256418<br> (hereinafter: the "**Lender**") |
|  | **<u>Of the Other Part</u>**; |

---

---

| | |
|:---|:---|
| **Whereas:** | GIX INTERNET LTD (hereinafter: the "**Borrower**" or the "**Company**" or "**GIX**") is a public company whose shares are listed for trading on the Tel Aviv Stock Exchange Ltd.; |
| **And whereas:** | The Company entered into a merger agreement by way of a share swap with Deliverz.AI LTD (hereinafter: "**Deliverz**") and with the shareholders of Deliverz, under which it was agreed that the shareholders of Deliverz shall transfer their shares to the Company in consideration for the allocation of shares in the Company (the "**Share Swap Agreement**"); |
| **And whereas:** | The Company holds 2,818,585 shares of Viewbix USA Inc. (hereinafter: "**Viewbix**"), while the shares of Viewbix are listed for trading on NASDAQ (under the symbol: VBIX); |
| **And whereas:** | The Lender initiated the merger transaction between the Company and Deliverz and shall, in consideration therefor, receive shares of the Company which, upon completion of the transaction, shall constitute 5% of the Company's share capital, as well as rights to milestone shares, all as detailed in the Share Swap Agreement and in accordance with the definitions therein; |
| **And whereas:** | The Lender has offered to provide the Company with a credit facility in the amount of ILS 12,000,000 for the purpose of financing the Company's operations, all under the terms set forth in this Agreement; |

---

**Therefore, it has been agreed, declared, and stipulated between the Parties as follows:**

1.  **<u>Definitions</u>** 

In this Agreement, the following terms shall have the meanings set forth alongside them:

---

| |
|:---|
| The "**Credit**" or the "**Loan**" – A credit facility to be provided to the Company by the Lender in a total amount of ILS 12,000,000 (twelve million), in accordance with the provisions of this Agreement. |
| **"This Agreement"** – This Agreement, including all of its appendices and amendments from time to time. |
| "**Viewbix Shares**" – 2,818,585 shares of Viewbix held by the Company. |
| "**Prime**" or "**Prime Interest**" – The Bank of Israel interest rate plus 1.5% (as of the date of execution of this Agreement, the Bank of Israel interest rate is 4.5% per annum, and accordingly the Prime Interest rate is 6.0% per annum). |
| "**First-Ranking Charge**" – A first-ranking charge to be registered over the Viewbix Shares to secure the Company's obligations under this Agreement. |
| "**Lender's Account**" – Account of M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD at Mizrahi Tefahot Bank, Branch 555, Account No. 145711. |

---

---

| | |
|:---|:---|
| "**Borrower's Account**" | [\*\*\*] |
| "**Closing Date**" or "**Date of Closing**" | The actual date of the provision of the Credit under the terms of this Agreement, which shall be the business day following the date of execution of this Agreement. |
| **"Business Day"** | Any day on which most banks in Israel are open for transactions with the public. |
| **"Transaction Documents"** | This Agreement with all of its appendices, the security documents with all of their appendices, and any other agreement or document executed between the Parties pursuant to or in connection with any of the foregoing documents. |
| "**Free and Clear**" | Free and clear from any charge and/or pledge and/or lien and/or attachment and/or retention right and/or third-party right of first refusal of any kind. |

---

2.  **<u>Borrower's Representations</u>** 

The Borrower hereby represents and undertakes to the Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 Borrower represents that it is the holder of 2,818,585 Viewbix Shares.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. The
 Borrower's rights in the Viewbix Shares are Free and Clear of any debt, charge, lien
 and/or any third-party right.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. The
 Loan funds are intended to finance the ongoing operations of the Company, including repayment
 of the Company's debts and loans, financing of Deliverz's operations, and any
 other activity at the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;2.4. The
 Borrower has the legal capacity, powers, and rights to enter into the Transaction Documents
 and to perform all provisions and conditions applicable to it thereunder, and there is no
 prohibition under any agreement and/or under any law, including under its organizational
 documents, against its entering into the Transaction Documents and fulfilling all of its
 obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;2.5. No
 bankruptcy proceedings have been initiated against the Borrower. Furthermore, the Borrower
 has not received any notice or written warning of an intention to initiate such proceedings
 and/or regarding the appointment of a receiver and/or trustee and/or special administrator.

3.  **<u>Lender's Representations</u>** 

The Lender hereby represents and undertakes to the Borrower as follows:

&nbsp;&nbsp;&nbsp;&nbsp;3.1. The
 Lender is a private company that was duly incorporated and registered in Israel and is active
 and existing.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. The
 Lender has the legal capacity, powers, and rights to enter into the Transaction Documents
 and to perform all provisions and conditions applicable to it thereunder, and there is no
 prohibition under any agreement and/or under any law, including under its organizational
 documents, against its entering into the Transaction Documents and fulfilling all of its
 obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;3.3. The
 Lender's entry into this Agreement and the other Transaction Documents has been approved
 by all of its competent corporate organs whose approval is required under law or under its
 organizational documents.

&nbsp;&nbsp;&nbsp;&nbsp;3.4. The
 Lender has the financial means to provide the Loan to the Borrower under the Transaction
 Documents.

4.  **<u>Borrower's Undertakings</u>** 

The Borrower hereby represents and undertakes to the Lender that for as long as the Credit has not been fully repaid:

&nbsp;&nbsp;&nbsp;&nbsp;4.1. It
 shall not create any additional charge over the Viewbix Shares, nor shall it undertake to
 create any additional charge over the Viewbix Shares, in any rank whatsoever, without receiving
 the Lender's prior written consent.

5.  **<u>Credit Facility and Its Terms</u>** 

The following terms shall apply to the Credit:

&nbsp;&nbsp;&nbsp;&nbsp;5.1. The
 Lender hereby provides the Borrower with a credit facility in a total amount of up to ILS
 12,000,000 (twelve million) (the "**Credit Facility Amount** ").

&nbsp;&nbsp;&nbsp;&nbsp;5.2. As
 of the date of execution of this Agreement, the Company may, at its discretion, withdraw
 an amount of ILS 1,000,000 once per month from the Credit Facility (with the first payment
 under the Credit Facility to be ILS 2,000,000. The second payment under the Credit Facility,
 if withdrawn by the Company, shall be in the amount of ILS 1,000,000 and shall be transferred
 within 60 days following the first payment, and each subsequent payment shall be in the amount
 of ILS 1,000,000 and shall be transferred within 30 days following the preceding payment).

It is clarified that if the Company wishes to exercise its right not to withdraw one of the payments under the Credit Facility, the Company shall give written notice thereof to the Lender 14 days before the scheduled date for transfer of that portion of the Credit Facility. Upon delivery of such notice, the Lender shall not transfer that portion of the Credit Facility to the Company, and the withdrawal schedule for payments under the Credit Facility shall not change - namely, the next payment under the Credit Facility shall be scheduled 30 days after the date on which the Lender was originally required to make the payment the Company elected not to withdraw.

&nbsp;&nbsp;&nbsp;&nbsp;5.3. The
 Company undertakes to repay the entire amount actually utilized from the Credit Facility
 (the "**Actual Credit Facility Amount**") within 18 months from the date of
 the first payment under the Credit Facility (the "**Maturity Date**") (for
 example – assuming the first payment under the Credit Facility is made on July 1, 2025,
 the Maturity Date of the Actual Credit Facility Amount shall be December 31, 2026).

&nbsp;&nbsp;&nbsp;&nbsp;5.4. The
 Credit Facility shall be provided by way of a discount, such that 95% of each amount to be
 provided shall actually be transferred (i.e., for each withdrawal of ILS 1,000,000, the amount
 of ILS 950,000 shall be transferred, and the Company's debt in respect of such withdrawal
 shall be ILS 1,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;5.5. The
 amount of Credit actually utilized from the Credit Facility shall bear annual interest at
 a rate of 10%, plus VAT (where the interest shall be calculated on the full principal amount
 of the Loan actually withdrawn, without taking into account the discount detailed in Section
 5.4). The actual payment of interest shall be made on the Maturity Date (as defined in Section
 5.3 above).

For example – if an amount of ILS 2,000,000 is withdrawn, then pursuant to Section 5.4 above, ILS 1,900,000 shall be transferred. Nevertheless, the interest shall be calculated on the full amount of ILS 2,000,000, and the Borrower shall be required to repay the Lender the withdrawn amount (ILS 2,000,000) + annual interest at the rate of 10% + VAT on the interest (including VAT on the difference between the withdrawn amount and the actual amount transferred – and in the above example – VAT on ILS 100,000).

The Company undertakes to make commercially reasonable efforts to sell part or all of the Viewbix Shares owned by it, under terms at the sole discretion of the Company.

Any proceeds received by the Company in connection with the sale of Viewbix Shares shall reduce the remaining Credit Facility Amount (for example – if by August 31, 2025 the Company sells Viewbix Shares for a total value of ILS 1,000,000 – then the Credit Facility shall be reduced by ILS 1,000,000 and the total Credit Facility shall stand at ILS 11,000,000).

If, as a result of the aforementioned reductions, the Credit Facility Amount reaches an amount equal to the Actual Credit Facility Amount, then 70% of any proceeds received by the Company from that point onward for the sale of Viewbix Shares shall be used to repay the Actual Credit Facility Amount until the full repayment of the Actual Credit Facility and the interest accrued thereon.

&nbsp;&nbsp;&nbsp;&nbsp;5.6. If,
 by the Maturity Date, the Company completes an equity offering by way of a public share issuance,
 then the Credit Facility Amount shall be reduced by an amount equal to 20% of the total (net)
 amount raised by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;5.7. The
 Company grants the Lender, subject to applicable law, an option to purchase from it Viewbix
 Shares for a total value of ILS 16 million (the value of the shares at the time of the purchase
 shall be ILS 16 million). The exercise price of the option to purchase Viewbix Shares shall
 be at a 25% discount to the closing price of Viewbix stock on NASDAQ on the trading day preceding
 the option exercise date. The option may be exercised in tranches, but no fewer than 10,000
 Viewbix Shares (adjusted for share splits/consolidations) per tranche. The option shall be
 valid from the date of execution of this Agreement and for as long as the Company holds Viewbix
 Shares.

For example, if the entire option to purchase Viewbix Shares is exercised, the Lender shall purchase Viewbix Shares worth ILS 16 million (based on the NASDAQ closing price of Viewbix on the trading day preceding the option exercise date) and shall pay the Company ILS 12 million for the shares.

It is clarified that the grant of the option does not constitute any undertaking by the Company not to sell the Viewbix Shares or to grant any right of first refusal to the Lender for the exercise of the option or for the purchase of Viewbix Shares. It is further clarified that the grant of the option shall not constitute a commitment not to distribute all or part of the Viewbix Shares as a dividend in kind to the shareholders of the Company.

For the avoidance of doubt, it is clarified that the Company shall not distribute any dividend (in cash or in Viewbix Shares) before the outstanding balance of the Loan is fully repaid (and if the entire Loan has not been provided, then the amount of the Loan actually provided shall be repaid prior to the distribution of the dividend, and the Lender's obligation to continue providing the Credit Facility shall lapse).

Notwithstanding the above, it is clarified that if the Company sells Viewbix Shares (or distributes Viewbix Shares as a dividend in kind), such that the remaining Viewbix Shares held by the Company will not allow full exercise of the option granted to the Lender, then the Company shall transfer to the Lender, out of any proceeds received by it in connection with the Viewbix Shares, an amount equal to 25% of the remaining unexercised option value. In the case of a dividend in kind of Viewbix Shares, the Company shall transfer to the Lender Viewbix Shares in an amount equal to 25% of the remaining unexercised option value.

For example – if the Lender exercises 25% of the option to purchase Viewbix Shares, i.e., purchases Viewbix Shares worth ILS 4 million, and thereafter the Company sells all the remaining Viewbix Shares, thus preventing the Lender from exercising its option to purchase an additional ILS 12 million worth of Viewbix Shares – then the Company shall transfer to the Lender an amount equal to ILS 3 million (25% of ILS 12 million).

Notwithstanding anything to the contrary in this Agreement, it is agreed that, subject to applicable law, the option may also be exercised by way of a short sale – that is, an instruction shall be given to the Company to sell the shares underlying the option. The proceeds (in full) shall be received by the Company, and the Company shall transfer to the Lender 25% of the gross proceeds received by the Company. If withholding tax is required on the transfer of funds to the Lender or its designee, tax shall be withheld at source by the Company.

Notwithstanding anything to the contrary in this Agreement, it is clarified that the scope of the option to purchase Viewbix Shares is limited to the number of Viewbix Shares held by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;5.8. In
 the event the Borrower is late in making any payment under this Agreement, each such delay
 shall bear arrears interest at an annual rate of Prime + 10%.

&nbsp;&nbsp;&nbsp;&nbsp;5.9. VAT
 shall be added to the interest payments by law against issuance of a proper tax invoice for
 the interest.

&nbsp;&nbsp;&nbsp;&nbsp;5.10. If
 the due date for payment of principal or interest falls on a day that is not a Business Day,
 the payment date shall be deferred to the first Business Day thereafter.

6.  **<u>Early Repayment</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;6.1. The
 Borrower shall be entitled to prepay all or part of the outstanding balance of the Credit
 principal (hereinafter: the "**Early Repayment Amount** "), together with the
 interest accrued up to such date on the portion repaid early.

7.  **<u>Security</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;7.1. To
 secure full and proper repayment of the Credit, the Borrower shall provide a first-ranking
 charge over the Viewbix Shares – the Credit Facility shall be provided even before
 registration of the charge.

&nbsp;&nbsp;&nbsp;&nbsp;7.2. The
 charge documents shall be signed at the time of execution, as detailed below, with the Borrower's
 counsel to register the charge with the Companies Registrar within 14 days from the date
 of execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;7.3. Upon
 repayment of the Loan, either on the Maturity Date or by early repayment, as applicable,
 the charge registered in favor of the Lender shall be removed.

&nbsp;&nbsp;&nbsp;&nbsp;7.4. The
 Lender undertakes to sign any document required for the removal of the charge.

8.  **<u>Fees and Expenses</u>** 

The Borrower shall pay the following expenses:

&nbsp;&nbsp;&nbsp;&nbsp;8.1. A
 credit allocation fee shall be paid to M.R.M. MERHAVIT HOLDINGS AND MANAGEMENT LTD in an
 amount equal to 2% of the Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;8.2. The
 cost of registering the charge with the Companies Registrar.

9.  **<u>Allocation of Options in the Company</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;9.1. In
 addition to the above, the Lender (or anyone acting on its behalf) shall be allocated 600,000
 Company warrants, exercisable into 600,000 Company shares. The warrants shall be valid for
 a period of 36 months (the "**Exercise Period** "). The warrants shall be subject
 to adjustments for corporate events in the Company (stock splits or consolidations, distribution
 of dividends in cash or in kind, bonus shares – explicitly excluding dividends in kind
 of Viewbix Shares or any portion thereof), as well as adjustments for rights offerings, subject
 to the rules of the stock exchange, whereby the adjustment for rights shall grant a right
 to participate in the rights offering, and the adjustment for dividend shall be a reduction
 in the exercise premium equal to the actual dividend distributed by the Company, all subject
 to the stock exchange rules for this matter.

The exercise price for each warrant during the 8-month period following the date of the option grant shall be ILS 18 per share. Following such period and until the end of the Exercise Period, the exercise price shall be ILS 21 per share. The exercise price is not linked to any index or currency.

&nbsp;&nbsp;&nbsp;&nbsp;9.2. It
 is clarified that the allocation of the warrants shall be subject to the approval of the
 Company's general meeting of shareholders. If the general meeting of shareholders does
 not approve the allocation of the options, then the option to purchase Viewbix Shares, as
 detailed in Section 5.9 above, shall be increased such that the Lender shall be granted an
 option to purchase Viewbix Shares with a total value of ILS 32 million (the "**Increased Viewbix Option** "), and all the terms set forth in Section 5.9 above shall apply
 to the Increased Viewbix Option.

10.  **<u>Acceleration</u>** 

The Lender shall be entitled to accelerate repayment of the outstanding balance of the Credit, in whole or in part, by written notice to the Borrower 60 business days in advance, if one or more of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;10.1. If
 liquidation, bankruptcy, or receivership proceedings are initiated against the Borrower,
 including the appointment of a special administrator or any officer over the Borrower's
 assets.

&nbsp;&nbsp;&nbsp;&nbsp;10.2. If
 attachment(s) are imposed or enforcement or execution actions are taken against the Borrower
 in an amount exceeding ILS 500,000, and such attachments and/or actions are not lifted or
 canceled within 120 days from the date they were imposed or initiated, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;10.3. If
 the Borrower does not register the securities in favor of the Lender within 14 days from
 the date of execution of this Agreement.

11.  **<u>Enforcement of the Securities</u>** 

In any case where the Lender accelerates the Credit, the Lender shall be entitled, but not obligated, to enforce the Borrower's rights in the Viewbix Shares and use any proceeds received therefrom to repay the outstanding balance of the Credit.

12.  **<u>Actions at Signing; Actions at Closing; Registration of Charges</u>** 

On the date of <u>execution</u> of this Agreement, the following actions shall be performed:

&nbsp;&nbsp;&nbsp;&nbsp;12.1. The
 Borrower shall sign all documents required to register the charge over the Viewbix Shares
 to secure the Credit under this Agreement, in the form attached as  **<u>Appendix 12.1</u>** to this Agreement, and shall deliver them to the attorney Borrower's counsel for the
 purpose of registering them with the Companies Registrar.

13.  **<u>Miscellaneous</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;13.1. It
 is declared and agreed that neither the Lender nor the Borrower shall be entitled to assign
 any rights and/or obligations under this Agreement to any third party, directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;13.2. A
 waiver by either of the Parties of a prior breach or failure to perform one or more of the
 obligations owed to it and/or the failure to fulfill any condition under this Agreement shall
 not be deemed a justification for any subsequent breach or failure to perform any such condition
 or obligation; and the failure of either Party to exercise any right granted to it under
 this Agreement or under any law shall not be construed as a waiver of that right, and the
 other Party hereby waives any claim or demand in connection therewith. No indulgence or waiver
 of any of these terms by either Party shall bind such Party or constitute justification for
 any non-performance of any of these terms unless expressly stated otherwise. A delay of up
 to 10 days in the performance of any obligation under this Agreement shall not be considered
 a breach, except with regard to the Loan disbursement dates to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;13.3. The
 appendix attached to this Agreement constitutes an integral part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;13.4. The
 section headings in this Agreement are provided for convenience only and shall not be used
 for any interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;13.5. This
 Agreement shall be governed by and interpreted in accordance with the laws of the State of
 Israel.

&nbsp;&nbsp;&nbsp;&nbsp;13.6. The
 Parties hereby agree that the competent court in Tel Aviv-Jaffa shall have sole jurisdiction
 in all matters concerning or arising from this Agreement, to the exclusion of any other court.

&nbsp;&nbsp;&nbsp;&nbsp;13.7. Any
 notice sent by registered mail by the Lender or the Borrower to the addresses listed below
 (or any other address provided in writing) shall be deemed delivered to the recipient three
 days after dispatch, and if delivered by hand – upon delivery, and if sent by facsimile
 – on the first Business Day following the date of transmission. The addresses are as
 follows:

Borrower: Attn: **<u>Amihay Hadad / Amitai Weiss</u>**

Address: **<u>3 HaNechoshet St., Tel Aviv</u>**

Lender: Attn: Moti Menashe

Address: 31 Sokolov St., Ramat Gan

Facsimile: 03-9311518

**In witness whereof, the Parties have set their hands:**

---

| | |
|:---|:---|
| */s/ Amitay Weiss /s/ Amihay Hadad /s/ Eliyahu Yoresh* | */s/ Moti Menashe* |
| **GIX INTERNET LTD** | **M.R.M. MERHAVIT HOLDINGS**<br> **AND MANAGEMENT LTD**  |

---

## Exhibit 4.7

**Exhibit 4.7**

THIS WARRANT AND ANY SECURITIES THAT MAY BE ISSUED UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>SECURITIES ACT</u>") OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER THAN PURSUANT TO RULE 144(k), PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY OF SUCH RULE 144(k)), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.

**WARRANT TO PURCHASE ORDINARY SHARES**

**OF**

**Gix Internet Ltd**

**(the "Company")**

This Warrant is issued in connection with the Credit Line Agreement, dated June 26, 2025, by and between the Company and M.R.M. Merhavit Holdings and Management Ltd which was partially assigned to the Holder.

The Holder acknowledges that the Warrant are not transferable nor tradable on TASE and that the Ordinary Shares may be subject to mandatory lock-up pursuant to Israeli Securities Law and Regulations.

**___________** (together with its successors, transferees and assigns, the "**<u>Holder</u>**") is entitled to purchase subject to the provisions of this Warrant (this "**<u>Warrant</u>**") from the Company, a company organized under the laws of the State of Israel, during the term of this Warrant, at the Exercise Price, **___________** Ordinary Shares, with no par value, of the Company (the "**<u>Ordinary Shares</u>**"). The shares issuable upon exercise of this Warrant and the Purchase Price per share, as adjusted from time to time pursuant to the terms of this Warrant, shall be referred to herein as the "<u>Warrant Shares</u>" and the "<u>Exercise Price</u>", respectively.

1. <u>EXERCISE.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Manner of Exercise</u>. This Warrant may be exercised, in whole or in part, on one or more occasions during its term. Subject to the Vesting Schedule, this Warrant may be exercised by the surrender of this Warrant, together with the Notice of Exercise in the form attached hereto, duly completed and executed by the Holder, at the principal office of the Company or at such other office or agency as the Company may designate, accompanied by payment in full of the aggregate Exercise Price payable in respect of the Warrant Shares purchasable upon such exercise. The Exercise Price may be paid by cash or wire transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Allocation Date. This Warrant shall be exercisable in full immediately upon September 9, 2025 (the "**Allocation Date**")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Exercise Period</u>. Thirty-six (36) months following the Allocation Date (the "**Exercise Period**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Vesting Schedule</u>: This Warrant shall be exercisable in full immediately upon Allocation Date (no vesting conditions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Exercise Price</u>. During the first eight (8) months following the Allocation Date, the Exercise Price shall be NIS 18.00 per Warrant Share. Following the end of such eight (8) month period and until the end of the Exercise Period, the Exercise Price shall be NIS 21.00 per Warrant Share (the "**Exercise Price**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 <u>Delivery to Holder</u>. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within ten (10) business days thereafter, the Company, at its expense, will cause to be issued to the Holder and deposited in its securities bank account (in a bank with which such shares can be deposited, details of such securities account shall be included in the Notice of Exercise) the number of Warrant Shares to which such Holder shall be entitled.

2. <u>ADJUSTMENTS.</u>

The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Adjustment due to technical changes in the Company's share capital. If the number of shares in the Company changes as a result of a share split or a share consolidation (reverse split), the number of shares issuable upon exercise of the Warrants shall be adjusted on a proportional basis. Except where expressly provided otherwise, the issuance or allotment of shares of any type shall not result in an adjustment to the number of shares issuable upon such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Adjustment due to a bonus share distribution. If the Company distributes bonus shares, the number of shares issuable upon exercise shall increase or decrease by the number of shares to which the offeree would have been entitled as bonus shares had the offeree exercised the Warrant up to and including the last trading day preceding the ex-date. The Exercise Price of each Warrant shall not change as a result of the addition of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Adjustment due to a rights offering If during the term of the exercise right of the Warrants, rights to purchase any securities are offered to the Company's shareholders by way of rights, the Company shall offer the offeree the same securities on terms identical to those offered to the shareholders, and the offeree's holdings of Warrants shall be deemed as if they had been converted into shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Adjustment in respect of dividend distribution Except in connection with a distribution in kind of Viewbix Inc. shares or a distribution of the proceeds of the sale by the Company of Viewbix Inc. shares - in the event of a cash dividend distribution by the Company to all of its shareholders, including a distribution approved by a court pursuant to Section 303 of the Companies Law, or any other section applicable in this regard, and the record date for entitlement to receive such dividend (the "**Record Date**") falls after the date of grant of the Warrants but before their exercise, the Exercise Price of each Warrant that has not been exercised into a Company share prior to the Record Date shall be reduced by the gross dividend amount per share distributed by the Company.

The Shares issued upon exercise shall rank pari passu in all respects with the existing ordinary shares of the Company, all as set forth in the Company's articles of association as may be in effect from time to time. The Shares issued upon exercise shall be registered in the name of Mizrahi Tefahot Company for Registrations Ltd.

Issuance and Rights of Warrant Shares. The Warrant Shares shall be identical in their rights to the existing Ordinary Shares of the Company, all as set forth in the Company's articles of association, as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Notwithstanding anything to the contrary, as long as the Ordinary Shares are listed on the</u> TASE and in accordance with the rules and guidelines of the TASE, this Warrant shall not be exercisable on the record date of distribution of bonus shares, offer by way of rights, distribution of a dividend, consolidation of capital, splitting of capital or reduction of capital (each of the aforesaid hereinafter referred to as a "**Company Event**"). In addition, if the ex-day of a Company Event occurs prior to the record date of such Company Event, this Warrant shall not be exercisable on the ex-day as aforesaid.

3. <u>COVENANTS AS TO WARRANT SHARES.</u>

The Warrant Shares (and any transfer thereof) are subject to the blocking/lock-up provisions under Section 15 of the Israeli Securities Law, 5728-1968, and the Securities Regulations (Details with regard to Sections 15A to 15C of the Law), 5760-2000.

4. <u>TRANSFER.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 This Warrant may not be transferred, in whole or in part, and is not tradable, and shall not be listed for trading on the TASE or any other exchange; provided, however, that the Holder may transfer this Warrant, in whole or in part, with the prior written consent of the Company. Any transfer permitted under this Section 4.1 shall be (i) subject to and effected in compliance with all applicable securities laws and regulations (including the Israeli Securities Law and the Securities Regulations (Details with regard to Sections 15A to 15C of the Law), 5760-2000), (ii) subject to the transferee's written agreement to be bound by all of the terms and conditions of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The Company will maintain a register containing the names and addresses of the Holder(s) of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Holder of this Warrant as the absolute owner hereof for all purposes. Any Holder may change such Holder's address as shown on the warrant register by written notice to the Company requesting such change.

5. <u>NO IMPAIRMENT.</u>

The Company will not, by amendment of its charter documents or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, sale of assets, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder, or impair the economic interest of the Holder, but will at all times in good faith assist in the carrying out of all the provisions hereof and in taking of all such actions and making all such adjustments as may be reasonably necessary or appropriate in order to protect the rights and the economic interests of the Holder against impairment.

6. <u>TERMINATION.</u>

This Warrant and the right to purchase securities upon exercise hereof shall terminate at 5:00 p.m. Israel Time at the end of the Exercise Period.

7. <u>RESERVATION OF SHARES.</u>

The Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such Warrant Shares.

8. <u>REPLACEMENT OF WARRANTS.</u>

Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement reasonably satisfactory to the Company and a lost of Warrant affidavit, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor, dated as of the date hereof. This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its share transfer agent, if any, for other warrants of different denominations entitling the holders thereof to purchase in the aggregate the same number of Warrant Shares purchasable hereunder.

9. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Further Assurances</u>. Each of the parties hereto shall perform such further acts and execute such further documents as may reasonably be necessary to carry out and give full effect to the provisions of this Warrant and the intentions of the parties as reflected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Entire Agreement</u>. This Warrant constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and supersede all prior agreements and understandings, both written and oral, among any of the parties hereto, with respect to the subject matter hereof (with no concession being made as to the existence of any such prior agreements or understandings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Amendment; Waiver.</u> Any term of this Warrant may be amended only with the written consent of the Company, and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Governing Law; Jurisdiction</u>. This Warrant shall be governed by and construed in accordance with to the laws of the State of Israel, disregarding its conflict of laws rules. Any dispute arising under or in relation to this Warrant shall be resolved exclusively in the competent court located in Tel Aviv-Jaffa, Israel and each of the parties hereby irrevocably submits to the exclusive jurisdiction of such court. Each of the parties hereto (i) consents to submit itself to the exclusive jurisdiction of the abovementioned courts in the event any dispute arises out of this Warrant or the transactions contemplated by this Warrant, (ii) agrees that it shall not attempt to deny or defeat such jurisdiction by motion or other request for leave from the abovementioned court, (iii) agrees that it shall not bring any action relating to this Warrant or the transactions contemplated by this Warrant in any court other than the abovementioned court, and (iv) irrevocably consents to service of process in the manner provided by Section ‎9.5 or as otherwise provided by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Notices</u>. All notices and other communications given or made pursuant to this Warrant shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (i) when delivered, if sent by personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile (with electronic confirmation of delivery) on a business day and during normal business hours of the recipient, and otherwise on the first business day in the place of the recipient; (iii) five (5) business days after having been sent, if sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after deposit with an internationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written confirmation of receipt. All communications shall be sent to the respective parties at their address or contact details as set forth below, or to such address or contact details as subsequently modified by written notice given in accordance with this Section 9.5.

---

| | |
|:---|:---|
| If to the Company: | Gix Internet Ltd.<br> HaNechoshet St., Building B, 7th Floor<br> Tel Aviv 6971068<br> Israel<br>Attention: Amihay Hadad, CFO<br> Telephone:<br> Facsimile:<br> E-mail: amihay@gix-internet.com |
| If to the Holder: | to the address set forth on the signature page |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Delays or Omissions</u>. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party to this Warrant upon any breach or default of any other party under this Warrant, shall impair any such right, power or remedy of such non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Warrant, or any waiver on the part of any party of any provisions or conditions of this Warrant, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Warrant or by law or otherwise afforded to any party to this Warrant, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Severability</u>. If one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Agreement shall be enforceable in accordance with its terms and interpreted so as to give effect, to the fullest extent consistent with and permitted by applicable law, to the meaning and intention of the excluded provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Counterparts</u>. This Warrant may be executed in one or more counterparts, all of which together shall constitute one and the same instrument, binding and enforceable against the parties so executing the same; it being understood that all parties need not sign the same counterpart. Counterparts may also be delivered by facsimile or email transmission (in pdf format or the like, or signed with docusign, e-sign or any similar form of signature by electronic means) and any counterpart so delivered shall be sufficient to bind the parties to this Warrant, as an original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>No Rights as Shareholder</u>. Except as set forth herein, the Holder shall not have any rights as a shareholder of the Company with regard to the Warrant Shares prior to the exercise of this Warrant, and then solely with respect to such Warrant Shares which have been purchased upon such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>No Fractional Interest</u>. No fractional shares will be issued in connection with any exercise hereunder, but in lieu of such fractional shares that would otherwise be issuable, the number of shares shall be rounded up to the nearest whole number.

- *Signature page follows* -

This **WARRANT TO PURCHASE ORDINARY SHARES OF** Gix Internet Ltd is executed as of the date first set forth above.

---

| | |
|:---|:---|
| Gix Internet Ltd | Gix Internet Ltd |
| By: |  |
| Name: | Amitay Weiss |
| Title: | CEO |

---

Acknowledged and Agreed to:

---

| |
|:---|
| HOLDER |
| By: |
| Name: |
| Title: |

---

Address:

Fax:

E-mail:

**NOTICE OF EXERCISE**

**To:** Gix Internet Ltd

**Date: [ ]**

The undersigned, pursuant to the provisions set forth in the attached **WARRANT TO PURCHASE ORDINARY SHARES OF** Gix Internet Ltd, hereby irrevocably elects to purchase Warrant Shares covered by such Warrant and herewith makes payment of $______, representing the full purchase price for such shares at the price per share provided for in such Warrant (as adjusted from time to time pursuant to the terms of this Warrant).

Please issue the Warrant Shares to the following securities account:

Bank:

Branch:

Account no.:

In the name of (if not the undersigned):

If the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant shall be registered in the name of the undersigned or as otherwise indicated below and delivered to the address stated below:

Name:

Address:

ID or Social Security No.:

(Date) (Print
 Name)

## Exhibit 4.8

**Exhibit 4.8**

**<u>Loan Agreement</u>**

Executed and signed on the 26th day of the month of June in the year 2025

---

| | |
|:---|:---|
| **Between:** | **GIX INTERNET LTD,** Public Company No. 520040262<br> 11 Menachem Begin Road, Ramat Gan 5268104<br> (hereinafter: the "**Borrower**" or the "**Company**"); |
|  | **<u>Of the One Part</u>** |
| **And between:** | **PURE CAPITAL LTD**, Private Company No. 514408715<br> 20 Raul Wallenberg Street, Tel Aviv<br> (hereinafter: the "**Lender**") |
|  | **<u>Of the Other Part</u>**; |

---

(Each of the Lender or the Borrower shall be referred to as a "**Party**," and collectively: the "**Parties**")

---

| | |
|:---|:---|
| **Whereas:** | The Borrower entered into an agreement with Deliverz.AI LTD ("**Deliverz**") on January 5, 2025, which was amended on 26 June 2025, regarding a merger by way of a share swap, pursuant to which the Borrower shall acquire, by way of a share swap, the entire issued and paid-up share capital of Deliverz (the "**Merger Agreement**"); |
| **And whereas:** | And it was agreed in the Merger Agreement that the Borrower shall provide to Deliverz, through the Lender, a loan for the purpose of financing Deliverz's ongoing operations in the amount of ILS 1,442 thousand (the "**Loan**"), which has already been transferred prior to the date of signing this Agreement by the Lender in the name of the Borrower; |
| **And whereas:** | And the Parties wish to establish and formalize within this Agreement the relationship between them regarding the manner of repayment of the total Loan amount by the Borrower to the Lender; |

---

**<u>Therefore, it has been agreed, declared, and stipulated between the Parties as follows</u>:**

1.  **<u>General and Interpretation</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. The
 preamble to this Agreement and its appendices constitute an integral part hereof. The section
 headings are for convenience only and shall not be relied upon in the interpretation or construction
 of this Agreement.

2.  **<u>Representations, Warranties, and Undertakings of the Parties</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Each
 of the Parties to this Agreement hereby confirms to the other Party as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1. It
 has obtained all required approvals under applicable law and its corporate documents for
 entering into this Agreement as well as for performing all actions hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2. This
 Agreement, including its appendices, does not conflict with or breach any provision of law,
 its corporate documents, or any agreement to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.3. It
 possesses all the necessary means to fulfill all of its obligations under and in connection
 with this Agreement fully and in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. The
 Borrower hereby represents and declares to the Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. No
 action has been taken for the voluntary liquidation of the Borrower or for its deregistration
 from any registry maintained under law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. The
 Borrower shall notify the Lender immediately, and in any case no later than two (2) business
 days after becoming aware thereof, of any change in its representations under this Agreement.

3.  **<u>The Loan and Its Terms</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Prior
 to the date of signing this Agreement, the Lender provided the Loan amount to Deliverz in
 several installments, all in consideration of the Borrower's undertaking to repay the
 Loan principal and the interest thereon to the Lender, as detailed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. The
 Loan principal shall be repaid in 12 equal monthly installments, commencing from the date
 of completion of the Merger Agreement (the "**Loan Period** ").

3.3. The
 Loan principal shall bear annual interest at a rate of 6% from the date on which the Loan
 amount, or part thereof, was actually provided, as applicable, until the date of its actual
 repayment (hereinafter: the "**Interest** "). The Interest shall be repaid
 together with the repayment of the Loan principal.

3.4. If
 the due date for repayment of the principal and the Interest falls on a non-business day,
 the repayment date shall be deferred to the first business day thereafter.

3.5. If
 the Borrower does not repay the Loan and the accrued Interest on the due date for repayment
 of the principal and Interest, then the unpaid balance of the Loan (principal and Interest)
 shall bear, from the due date of the principal and Interest until the actual repayment date
 to the Lender, arrears interest equal to the maximum monthly interest rate customarily charged
 by Bank Hapoalim B.M. for overdrafts in non-authorized debit current accounts, compounded
 monthly. It is clarified that the Borrower shall bear and/or indemnify the Lender for all
 collection expenses related to the unpaid balance of the Loan incurred by the Lender, if
 any.

3.6. VAT
 shall be added to the Interest payments in accordance with the law, against issuance of a
 lawful tax invoice for the Interest.

4.  **<u>Early Repayment</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The
 Borrower shall be entitled to repay the Loan principal early, without payment of any fee,
 prior to the due date for repayment of the principal and Interest.

4.2. On
 the date of the early repayment, the Borrower shall pay the Lender the early repayment amount,
 together with all Interest amounts accrued and not yet paid in respect of the early repayment
 amount for the period up to the date of the early repayment.

5.  **<u>Acceleration</u>** 

The Lender shall be entitled (without derogating from any of its other rights under any law) to call for immediate repayment of the outstanding balance of the Loan, in whole or in part, by written notice to the Borrower seven (7) business days in advance, and to take any other actions available to it under any law, if one or more of the events listed below occurs (and for the avoidance of doubt, the occurrence of any of the cases detailed in any of the following sub-sections shall suffice):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. If
 it is discovered that any representation, undertaking, or declaration made by the Borrower,
 as detailed in section 2 of this Agreement, is untrue or incomplete at the time it was made
 or at any other time during the Loan Period, provided that the breach of such representation
 or declaration is not remedied (to the extent it may be remedied) within seven (7) business
 days from receipt of a written notice from the Lender of its intention to accelerate the
 Loan due to the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. If
 the Borrower adopts a resolution for voluntary liquidation; and/or if a petition and/or request
 is filed against it for an order to commence proceedings and/or for interim relief (as these
 terms are defined in the Insolvency and Economic Rehabilitation Law, 5778–2018) ()"**Order to Commence Proceedings**" and "**Interim Relief**," respectively),
 and/or for temporary or permanent liquidation and/or for rehabilitation and/or for bankruptcy
 and/or for the appointment of a temporary or permanent liquidator, special administrator,
 receiver, trustee or any other functionary; and/or if such order is issued against it; and/or
 if an interim relief order and/or liquidation order and/or bankruptcy order is issued against
 it; and/or if a temporary, permanent or other type of liquidator, or a special administrator
 or trustee is appointed for it; and/or if a stay of proceedings request is filed and not
 removed within sixty (60) days; and/or if such a stay of proceedings order is issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. If
 the Borrower announces its intention to cease payment of its debts and/or to cease operating
 its business and/or is unable to pay its debts on time, or generally ceases its payments,
 or ceases operating its business, or begins negotiations with its creditors to reach an arrangement
 for debt restructuring or any similar arrangement, or executes a general assignment in favor
 of, or settlement with, its creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4. If
 an application is filed for the imposition of a lien or for any enforcement action or other
 similar action or proceedings with similar effect against the Borrower, and the application
 is not canceled within forty-five (45) days from the date of filing.

6.  **<u>Miscellaneous</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Any
 modification, amendment, or addition to this Agreement or its appendices shall not be valid
 and shall be deemed not to have been made unless made in writing and signed by all Parties
 to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. If
 at any time any provision of this Agreement becomes illegal or invalid, such illegality or
 invalidity shall not affect the legality or validity of the remaining provisions of this
 Agreement, which shall remain in full force and effect, subject to the required modifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Any
 notice that a Party to this Agreement is required to give to the other Party under and in
 accordance with this Agreement shall be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. Nothing
 in this Agreement shall be construed as conferring any rights upon a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. The
 competent courts in the city of Tel Aviv-Jaffa shall have exclusive jurisdiction to adjudicate
 any dispute related to this Agreement or its appendices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. The
 Parties shall take all additional steps, including signing any additional documents necessary
 for the implementation and execution of this Agreement (including its appendices) according
 to its letter and tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. Any
 notice by either of the Parties in connection with this Agreement shall be sent to the recipient
 by personal delivery or by registered mail to its address as stated above, and shall be deemed
 delivered on the date of personal delivery, or at the end of three (3) days after the day
 of sending by registered mail as stated above, or on the first business day following its
 sending by email, as the case may be.

**<u>In witness whereof, the Parties have set their hands</u>**:

---

| | |
|:---|:---|
| <br>*/s/ Amitay Weiss /s/ Amihay Hadad /s/ Eliyahu Yoresh* | */s/ Kfir Zilberman* |
| **GIX INTERNET LTD** | **PURE CAPITAL LTD** |

---

## Exhibit 4.9

**Exhibit 4.9**

**LOAN AGREEMENT**

This Loan Agreement (this "**Loan Agreement**") is made and entered into as of the 12 day of October 2021 (the "**Effective Date**") between **Medigus Ltd.**, a company organized under the State of Israel, with principal offices at Omer Industrial Park, No.7A, P.O. Box 3030, Omer 8496500, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the State of Israel, with principal offices at Arieh Shenkar, 12, Herzliya 4672514, Israel (the "**Borrower**"). Each of the Lender and the Borrower shall be referred to as "**Party**" and together as the "**Parties**".

---

| | |
|:---|:---|
| **WHEREAS,** | the Lender is a shareholder of the Borrower; and |
| **WHEREAS,** | the Lender has agreed to extend to the Borrower a loan in a principal amount of NIS 4,000,000 and the Borrower has agreed to receive such loan from the Lender, under the terms and conditions set forth herein. |

---

**NOW, THEREFORE,** it is declared and stipulated between the parties as follows:

1.  **<u>Loan Amount; Interest; Utilization of the Loan</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. Subject
 to the terms and conditions set forth herein, the Lender shall extend to the Borrower a loan
 in a principal amount of NIS 4,000,000 (the "**Principal Amount** ").

1.2. The
 Principal Amount shall be transferred to the Borrower's bank account, the details of
 which shall be provided in writing to the Lender by the Borrower by wire transfer of immediately
 available funds, upon the execution of this Loan Agreement.

1.3. The
 Principal Amount shall bear interest at a rate equivalent to the minimal interest rate recognized
 and attributed by the Israel Tax Authority, as such may be adjusted from time to time (the
 "**Interest** "), accruing from the date of the actual disbursement of the
 Principal Amount through the date of the repayment in full of the Principal Amount.

1.4. The
 Interest will be calculated on the basis of the actual number of days elapsed in a year consisting
 of 365 days.

2.  **<u>Loan Repayment</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 Borrower shall repay in full the Principal Amount, together with the accrued Interest thereon
 (the "**Loan Amount** "), in one (1) payment upon the earliest of: (i) the
 closing of a rights offering by the Borrower for an aggregate amount of at least NIS 12,000,000
 or (ii) June 30, 2022 (the "**Repayment Date** ").

2.2. Notwithstanding
 anything to the contrary, the Borrower may elect to repay a part or all of the Loan Amount
 earlier than contemplated in Section 2.1 with no penalty, premium or other fee or payment.

2.3. Payment
 to the Lender of the Loan Amount shall be made in NIS only by wire transfer of immediately
 available funds to the Lender's bank account, the details of which shall have been
 provided in writing to the Borrower, no later than three (3) business days in advance of
 such payment date.

2.4. Upon
 full repayment of the Loan Amount, all rights of the Lender with respect to this Loan Agreement
 shall terminate.

2.5. All
 payments due hereunder shall be made without any counterclaim, setoff or deduction whatsoever.

3.  **<u>Events of Default</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Notwithstanding
 the aforesaid, the Lender may declare the entire Loan Amount, due and payable at any time
 upon the earlier of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1. the
 Borrower fails to pay any sum under this Agreement on the Repayment Date or fails in any
 material respect to comply with any provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2. the
 Borrower commences negotiations with any one or more of its creditors with a view to the
 general readjustment or rescheduling of its indebtedness;

3.1.3. the
 Borrower makes a general assignment for the benefit of, or a composition with, its creditors;

3.1.4. the
 Borrower passes any resolution or takes any corporate action, or a petition is presented
 or proceedings are commenced, or any action is taken by any person for the winding-up, dissolution,
 or re-organization or for the appointment of a liquidator, receiver, trustee or similar officer
 of the Borrower or of any or all of its revenues or assets; or

3.1.5. any
 distress, execution, attachment or other legal process is levied, or enforced on or sued
 against all or any material part of the property or assets of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. The
 Borrower shall notify the Lender in writing within 48 hours from the time such event first
 becomes known to the Borrower.

4.  **<u>Miscellaneous</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Entire Agreement</u>. This Agreement is the entire Agreement between the parties hereto with respect
 to the subject matter hereof and supersedes all prior agreements and arrangements between
 the parties hereto with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Waiver</u>.
 A failure by any of the parties to this Agreement to assert its rights for or upon any breach
 of this Agreement or any such other agreement shall not be deemed a waiver of such rights
 nor shall any waiver be implied from any act. No waiver in writing by a Party with respect
 to any right shall extend its effect to any subsequent breach either of like or different
 kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Severability</u>.
 In the event that any part or parts of this Agreement shall be held illegal or null and void
 by any court or administrative body of competent jurisdiction, such determination shall not
 affect the remaining parts of this or such agreement and they shall remain in full force
 and effect as if such part or parts determined illegal or void had not been included herein;
 provided, however, that nothing in this Section shall relieve any Party of any liability
 for breach of covenant, warranty or representation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Assignment</u>.
 Neither this Agreement nor any rights or obligations hereunder may be assigned by any Party
 without the prior written consent of the other parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. <u>Books</u>.
 The books and accounts of the Borrower will bind the Lender in respect of the details of
 this Loan Agreement and/or the Principle Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. <u>Applicable Law and Dispute Resolution</u>. All questions arising out of or concerning this Agreement
 or its validity, interpretation, performance or breach shall be governed and decided by application
 of the laws of the State of Israel and without reference to its conflict of law rules. The
 parties shall make good faith efforts to resolve amicably any disputes or claims arising
 out of this Agreement. Any dispute or claim arising out of or relating to this Agreement,
 or the breach thereof, which cannot be resolved by mutual agreement of the parties, shall
 be submitted to the exclusive jurisdiction of the competent courts in Tel-Aviv.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. <u>Headings</u>.
 The headings of the paragraphs of this Agreement are not a part of and are not intended to
 govern, limit or aid in the construction of any term or provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. <u>Counterparts</u>:
 This Agreement and any amendment hereto may be executed in multiple counterparts, each of
 which shall be deemed an original agreement and all of which shall constitute one and the
 same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. <u>Amendments</u>.
 This Agreement may be amended only by the written consent of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. <u>Notices</u>.
 Notices to be served hereunder shall be in writing as hereinafter provided and shall be served
 upon the parties at the address specified in the preamble of this Loan Agreement. Notices
 served by registered airmail shall be deemed served on the day of actual delivery by the
 addressee's receipt, or at the expiration of the 7th (seventh) day after the date of
 mailing, whichever is earlier. Notices served by e-mail shall be deemed to be in writing
 and to have been served within 12 (twelve) hours of dispatch.

*[**Signature Page to Follow**]*

**IN WITNESS WHEREOF**, the Parties have hereunder executed this Loan Agreement as of the date written above.

---

| | | | |
|:---|:---|:---|:---|
|  | **Medigus Ltd**. |  | **Gix Internet Ltd.** |
| By: | */s/ Liron Carmel*<br>| By: | */s/ Amitay Weiss /s/ Amihay Hadad*<br>|

---

## Exhibit 4.10

**Exhibit 4.10**

**<u>AMENDMENT No. 1 TO THE LOAN AGREEMENT</u>**

This Amendment ("**Amendment**") to the Loan Agreement (as defined below) is entered into as of August 25, 2022 with the effective date of July 1 2022 ("**Amendment Effective Date**") by and between **Medigus Ltd.**, having its principal offices at Omer Industrial Park, No.7A, P.O. Box 3030, Omer 8496500, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the laws of the State of Israel, with principal offices at Menachem Begin, 11, Ramat Gan 5268104, Israel (the **"Borrower**"). Each of the Lender and the Borrower shall be referred to herein as **"party"** and together as the **"Parties"***.* 

**WHEREAS**, the Parties have entered into a loan agreement, dated October 12, 2021 (the "**Loan Agreement**"), according to which the Lender has extended to the Borrower a loan with a principal amount of NIS 4,000,000, in the terms set forth in the Loan Agreement (the "**Loan**"); and

**WHEREAS**, immediately after the Borrower repays his loan to Bank Leumi in the principal amount of NIS 2,419,000, the Borrower will repay all accrued interest until the repayment date, on account of the Loan and an amount of NIS 1,000,000 on account of the principal of the Loan (the "Partial Repayment Date"), such that after such repayment, the outstanding amount of the Loan is NIS 3,000,000 (the "**Remaining Loan Amount**"); and

**WHEREAS**, the Parties have agreed on new terms that will apply to the Loan and the Remaining Loan Amount as set forth in this Amendment.

**NOW THEREFORE**, in consideration of the premises and the mutual covenants herein contained, the Parties hereto agree as follows:

1.  **<u>Definitions</u>** .
 All capitalized terms used herein, not otherwise defined, shall have the meaning set forth in the Loan Agreement.

2.  **<u>Amendments</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Loan Repayment</u> - The Repayment Date, as defined under Section 2.1 of the Loan agreement of the Remaining Loan Amount shall be June
 30, 2023 (the "**Amended Repayment Date** "). The Lender shall have the right to convert all or part of the outstanding
 Amended Principal Amount into ordinary shares of the Borrower, at a price per share equal to the average price of the Borrower's
 ordinary shares on the Tel-Aviv Stock Exchange during the 30 trading days prior to the Amended Repayment Date, subject to obtaining
 all approvals required under applicable law, including the approval of the Borrower's general meeting, if required.

2.2. <u>Interest</u> – from the Amendment Effective Date The Loan (including the Remaining Loan Amount) and the Remaining Loan Amount shall bear
 annual interest at a rate equals to the Prime Rate published by the Bank of Israel + 2.92%, which will be paid in quarterly installments,
 not later than the 15 day of each of calendar quarter, starting on 15 of October 2022, except for the last interest payment, which
 shall be made on the Amended Repayment Date, for the period starting on the preceding interest payment date .

3.  **<u>No Further Amendments</u>** . Other than as set forth herein, all terms and conditions set forth in the Loan Agreement shall remain
 without change, binding and of full force and effect.

4.  **<u>Miscellaneous</u>** .
 This Amendment shall be governed and construed by the terms and conditions set forth in the Loan Agreement. In any event of a conflict
 between the terms contained in this Amendment and the Loan Agreement, the terms contained in this Amendment shall govern.

**IN WITNESS WHEREOF**, the Parties have caused this Amendment to the Loan Agreement to be executed by their duly authorized representatives effective as of the Amendment Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **<u>Medigus Ltd.</u>** | **<u>Medigus Ltd.</u>** | **<u>Gix Internet Ltd.</u>** | **<u>Gix Internet Ltd.</u>** |
| */s/ Liron Carmel* | */s/ Liron Carmel* | */s/ Amihay Hadad* | */s/ Amihay Hadad* |
| By: | Liron Carmel | By: | Amihay Hadad |
| Title: | CEO | Title: | CEO |
| Date: | 25.8.2022 | Date: | 25.8.2022 |

---

## Exhibit 4.11

**Exhibit 4.11**

**<u>AMENDMENT No. 2 TO THE LOAN AGREEMENT</u>**

This Amendment No. 2 ("**Amendment**") to the Loan Agreement (as defined below) is entered into as of August 28, 2023 with the effective date of July 1 2023 ("**Amendment Effective Date**") by and between **Medigus Ltd.**, having its principal offices at Omer Industrial Park, No.7A, P.O. Box 3030, Omer 8496500, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the laws of the State of Israel, with principal offices at Menachem Begin, 11, Ramat Gan 5268104, Israel (the **"Borrower**"). Each of the Lender and the Borrower shall be referred to herein as **"party"** and together as the **"Parties"***.* 

**WHEREAS**, the Parties have entered into a loan agreement, dated October 12, 2021 (the "**Loan Agreement**") and entered into a 1<sup>st</sup> Amendment to such Loan Agreement dated August 25, 2022 ("**First Amendment**"); and

**WHEREAS**, the Parties wish to extend the Amended Repayment Date as defined under the First Amendment.

**NOW THEREFORE**, in consideration of the premises and the mutual covenants herein contained, the Parties hereto agree as follows:

1.  **<u>Definitions</u>** .
 All capitalized terms used herein, not otherwise defined, shall have the meaning set forth
 in the Loan Agreement or the First Amendment.

"**Last Interest Payment**" means the last interest payment as descried in Section 2.2 to the First Amendment, which shall be made on the Second Amended Repayment Date.

"**Second Amended Repayment Date**" shall have the meaning described in Section 2 herein.

2.  **<u>Amendments</u>** .

<u>Repayment Date</u> - The Remaining Loan Amount as defined under the First Amendment shall be repay in full together with the Last Interest Payment on January 1, 2024 (the "**Second Amended Repayment Date**").

3.  **<u>No Further Amendments</u>** . Other than as set forth herein, all terms and conditions set
 forth in the Loan Agreement and the First Amendment shall remain without change, binding
 and of full force and effect.

4.  **<u>Miscellaneous</u>** .
 This Amendment shall be governed and construed by the terms and conditions set forth in the
 Loan Agreement. In any event of a conflict between the terms contained in this Amendment
 and the Loan Agreement Or the First Amendment, the terms contained in this Amendment shall
 govern.

**IN WITNESS WHEREOF**, the Parties have caused this Amendment to the Loan Agreement to be executed by their duly authorized representatives effective as of the Amendment Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **<u>Medigus Ltd.</u>** | **<u>Medigus Ltd.</u>** | **<u>Gix Internet Ltd.</u>** | **<u>Gix Internet Ltd.</u>** |
| */s/ Liron Carmel* | */s/ Liron Carmel* | */s/ Amihay Hadad /s/ Amitay Weiss* | */s/ Amihay Hadad /s/ Amitay Weiss* |
| By: | Liron Carmel | By: | Amihay Hadad , Amitay Weiss |
| Title: | CEO | Title: | CFO CEO |
| Date: | 28/08/2023 | Date: | 28/08/2023 |

---

## Exhibit 4.12

**Exhibit 4.12**

![](ex4-12_001.jpg)

## Exhibit 4.13

**Exhibit 4.13**

**<u>AMENDMENT No. 4 TO THE LOAN AGREEMENT</u>**

This Amendment No. 4 ("**Amendment**") to the Loan Agreement (as defined below) is entered into as of January 1 2024, ("**Effective Date**") by and between **Medigus Ltd.**, having its principal offices at 10 HaNechoshet St.,Tel Aviv, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the laws of the State of Israel, with principal offices at Menachem Begin, 11, Ramat Gan 5268104, Israel (the **"Borrower**"). Each of the Lender and the Borrower shall be referred to herein as **"party"** and together as the **"Parties"***.* 

**WHEREAS**, the Parties have entered into a loan agreement, dated October 12, 2021 (the "**Loan Agreement**") and entered into: (1) 1<sup>st</sup> amendment to such Loan Agreement dated August 25, 2022; (2) 2<sup>nd</sup> amendment to such Loan Agreement dated August 29, 2023 (the "**Second Amendment**"); and (3) 3<sup>rd</sup> amendment to such Loan Agreement dated November 8, 2023 (Collectively the "**Amendments**");

**WHEREAS**, the Borrower, after receiving funds from a private offering to the lander, made a repayment of part of the Loan Amount (as defined under the Loan Agreement) in the amount of NIS 100,000;

**WHEREAS**, the outstanding amount of the New Remaining Loan Amount, as of December 31, 2023, is NIS 3,000,000 (without interest);

**WHEREAS**, the Parties wish to extend the Second Amended Repayment Date as defined under the Second Amendment and to grant the Lender certain additional rights.

**NOW THEREFORE**, in consideration of the premises and the mutual covenants herein contained, the Parties hereto agree as follows:

1.  **<u>Definitions</u>** .
 All capitalized terms used herein, not otherwise defined, shall have the meaning set forth
 in the Loan Agreement or the Amendments.

2.  **<u>Amendments</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Repayment Date</u> - The New Remaining Loan Amount, as defined under the Third Amendment shall be repaid
 in full together with the Last Interest Payment on July 1, 2024 (the "**Third Amended Repayment Date** ").

&nbsp;&nbsp;&nbsp;&nbsp;2.2. The
 following Section 3.1.6 shall be added:

*"Notwithstanding the above, in the event that the Borrower (i) changes its principal business, enters new line of business, or exits a principal portion of its current line of business; or (ii) consummates a transaction whereby it is either mergers or consolidates with or into any other corporate entity (each a "**Trigger Event**"), the Lender shall be entitled to request the conversion of all or part of the New Remaining Loan Amount, and any or all accrued Interest thereof, into such number of ordinary shares with no par value of the Borrowe (the "**Borrower Shares**"), at a price per share equal to the average closing bid price of the Borrower's Shares on the Tel-Aviv Stock Exchange during the 30 trading days prior to the Trigger Event, subject to obtaining all approvals required under applicable law.*

3.  **<u>No Further Amendments</u>** . Other than as set forth herein, all terms and conditions set
 forth in the Loan Agreement and the Amendments shall remain without change, binding and of
 full force and effect.

4.  **<u>Miscellaneous</u>** .
 This Amendment shall be governed and construed by the terms and conditions set forth in the
 Loan Agreement. In any event of a conflict between the terms contained in this Amendment
 and the Loan Agreement or the other Amendments, the terms contained in this Amendment shall
 govern.

**IN WITNESS WHEREOF**, the Parties have caused this Amendment to the Loan Agreement to be executed by their duly authorized representatives effective as of the Effective Date.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Medigus Ltd.</u>** | **<u>Medigus Ltd.</u>** |  | **<u>Gix Internet Ltd.</u>** | **<u>Gix Internet Ltd.</u>** |
| */s/ Liron Carmel* | */s/ Liron Carmel* | | */s/ Amihay Hadad /s/ Amitay Weiss* | */s/ Amihay Hadad /s/ Amitay Weiss* |
| By: | Liron Carmel<u> </u> |  | By: | Amihay Hadad , Amitay Weiss |
| Title:<u> </u> | CEO |  | Title: | CFO CEO |

---

## Exhibit 4.14

**Exhibit 4.14**

**<u>AMENDMENT No. 5 TO LOAN AGREEMENT</u>**

This Amendment No. 5 ("**Amendment**") to the Loan Agreement (as defined below) is entered into as of August 22 2024, ("**Effective Date**") by and between **Xylo Technologies Ltd.** (f/k/a Medigus Ltd.), having its principal offices at 10 HaNechoshet St.,Tel Aviv, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the laws of the State of Israel, with principal offices at 3 Hanehoshet St, Building B, 7th floor, Tel Aviv, Israel (the **"Borrower**"). Each of the Lender and the Borrower shall be referred to herein as **"party"** and together as the **"Parties"***.* 

**WHEREAS**, the Parties have entered into a loan agreement, dated October 12, 2021 (the "**Loan Agreement**"), as amended by (i) the 1<sup>st</sup> amendment dated August 25, 2022; (2) the 2<sup>nd</sup> amendment dated August 29, 2023; (3) the 3<sup>rd</sup> amendment dated November 8, 2023; and (4) the 4<sup>th</sup> amendment dated January 1, 2024 (the "**Fourth Amendment**");

**WHEREAS**, the Parties wish to extend the Third Amended Repayment Date as defined under the Fourth Amendment.

**NOW THEREFORE**, in consideration of the premises and the mutual covenants herein contained, the Parties hereto agree as follows:

1.  **<u>Definitions</u>** .
 All capitalized terms used herein, not otherwise defined, shall have the meaning set forth
 in the Loan Agreement or the Amendments.

2.  **<u>Amendments</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Repayment Date</u> - The outstanding New Remaining Loan Amount (as defined in the 3<sup>rd</sup> amendment
 to the Loan Agreement) shall be repaid in full together with the Last Interest Payment, on
 December 31, 2024 (the "**Fourth Amended Repayment Date** ").

3.  **<u>No Further Amendments</u>** . Other than as set forth herein, all terms and conditions set
 forth in the Loan Agreement and the Amendments shall remain without change, binding and of
 full force and effect.

4.  **<u>Miscellaneous</u>** .
 This Amendment shall be governed and construed by the terms and conditions set forth in the
 Loan Agreement. In any event of a conflict between the terms contained in this Amendment
 and the Loan Agreement or the other Amendments, the terms contained in this Amendment shall
 govern.

**IN WITNESS WHEREOF**, the Parties have caused this Amendment to the Loan Agreement to be executed by their duly authorized representatives effective as of the Effective Date.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Xylo Technologies Ltd.</u>** | **<u>Xylo Technologies Ltd.</u>** |  | **<u>Gix Internet Ltd.</u>** | **<u>Gix Internet Ltd.</u>** |
| */s/ Tali Dinar* | */s/ Tali Dinar* | | */s/ Amihay Hadad /s/Amitay Weiss* | */s/ Amihay Hadad /s/Amitay Weiss* |
| By: | Tali Dinar |  | By: | Amihay Hadad, Amitay Weiss |
| Title: | CFO |  | Title: | CFO CEO |
| Date: | August 22, 2024 |  | Date: | August 22, 2024 |

---

## Exhibit 4.15

**Exhibit 4.15**

## Exhibit 4.16

**Exhibit 4.16**

**<u>AMENDMENT No. 7 TO LOAN AGREEMENT</u>**

This Amendment No. 7 ("**Amendment**") to the Loan Agreement (as defined below) is entered into as of January 6, 2025, (the "**Effective Date**") by and between **Xylo Technologies Ltd.** (f/k/a Medigus Ltd.), having its principal offices at 10 HaNechoshet St.,Tel Aviv, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the laws of the State of Israel, with principal offices at 3 HaNechoshet St.,Tel Aviv, Israel (the **"Borrower**"). Each of the Lender and the Borrower shall be referred to herein as **"party"** and together as the **"Parties"***.*

**WHEREAS**, the Parties have entered into a loan agreement, dated October 12, 2021 (the "**Loan Agreement**"), as amended by (i) the 1<sup>st</sup> amendment dated August 25, 2022; (2) the 2<sup>nd</sup> amendment dated August 29, 2023; (3) the 3<sup>rd</sup> amendment dated November 8, 2023 (the "**Third Amendment**"); (4) the 4<sup>th</sup> amendment dated January 1, 2024 (5) the 5<sup>th</sup> amendment dated August 22, 2024 (the "**Fifth Amendment**"), and the (6) 6<sup>th</sup> Amendment dated October 6, 2024;

**WHEREAS**, the Parties wish to (i) extend the Fourth Amended Repayment Date as defined under the Fifth Amendment and (ii) increase the New Remaining Loan Amount (as defined under the Third Amendment) by an amount of NIS 150,000.

**NOW THEREFORE**, in consideration of the premises and the mutual covenants herein contained, the Parties hereto agree as follows:

1.  **<u>Definitions</u>** .
 All capitalized terms used herein, not otherwise defined, shall have the meaning set forth
 in the Loan Agreement or the Amendments.

2.  **<u>Amendments</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Repayment Date</u> - The outstanding New Remaining Loan Amount (as defined in the Third Amendment)
 shall be repaid in full together with the Last Interest Payment, on April 30, 2025 (the "**Fifth Amended Repayment Date** ");

2.2. The
 New Remaining Loan Amount shall be increased by an amount of NIS 150,000 such that the New
 Remaining Loan Amount shall be NIS 3,300,000 (not including interest).

3.  **<u>No Further Amendments</u>** . Other than as set forth herein, all terms and conditions set
 forth in the Loan Agreement and the Amendments shall remain without change, binding and of
 full force and effect.

4.  **<u>Miscellaneous</u>** .
 This Amendment shall be governed and construed by the terms and conditions set forth in the
 Loan Agreement. In any event of a conflict between the terms contained in this Amendment
 and the Loan Agreement or the other Amendments, the terms contained in this Amendment shall
 govern.

**IN WITNESS WHEREOF**, the Parties have caused this Amendment to the Loan Agreement to be executed by their duly authorized representatives effective as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **Xylo Technologies Ltd.** | **Xylo Technologies Ltd.** | **Gix Internet Ltd.** | **Gix Internet Ltd.** |
| */s/ Liron Carmel* | */s/ Liron Carmel* | */s/ Amihay Hadad /s/ Amitay Weiss* | */s/ Amihay Hadad /s/ Amitay Weiss* |
| By: | Liron Carmel | By: | Amihay Hadad , Amitay Weiss |
| Title: | CEO | Title: | CFO CEO |

---

## Exhibit 4.17

**Exhibit 4.17**

**<u>AMENDMENT No. 8 TO LOAN AGREEMENT</u>**

This Amendment No. 8 ("**Amendment**") to the Loan Agreement (as defined below) is entered into as of August 31, 2025, (the "**Effective Date**") by and between **Xylo Technologies Ltd.** (f/k/a Medigus Ltd.), having its principal offices at 10 HaNechoshet St.,Tel Aviv, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the laws of the State of Israel, with principal offices at 3 HaNechoshet St.,Tel Aviv, Israel (the **"Borrower**"). Each of the Lender and the Borrower shall be referred to herein as **"party"** and together as the **"Parties"***.*

**WHEREAS**, the Parties have entered into a loan agreement, dated October 12, 2021 (the "**Loan Agreement**"), as amended by (i) the 1<sup>st</sup> amendment dated August 25, 2022; (2) the 2<sup>nd</sup> amendment dated August 29, 2023; (3) the 3<sup>rd</sup> amendment dated November 8, 2023 (the "**Third Amendment**"); (4) the 4<sup>th</sup> amendment dated January 1, 2024 (5) the 5<sup>th</sup> amendment dated August 22, 2024 (the "**Fifth Amendment**"), the (6) 6<sup>th</sup> Amendment dated October 6, 2024, and the (7) 7<sup>th</sup> amendment dated January 6, 2025.

**WHEREAS**, the Parties wish to extend the Fourth Amended Repayment Date as defined under the Fifth Amendment

**NOW THEREFORE**, in consideration of the premises and the mutual covenants contained herein, the Parties hereto agree as follows:

1.  **<u>Definitions</u>** .
 All capitalized terms used herein, not otherwise defined, shall have the meaning set forth
 in the Loan Agreement or the Amendments.

2.  **<u>Amendments</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Repayment Date</u> - The outstanding New Remaining Loan Amount (as defined in the Third Amendment)
 shall be repaid in full together with the Last Interest Payment, on June 30, 2026
 (the "**Fifth Amended Repayment Date** ");

3.  **<u>No Further Amendments</u>** . Other than as set forth herein, all terms and conditions set
 forth in the Loan Agreement and the Amendments shall remain without change, binding and of
 full force and effect.

4.  **<u>Miscellaneous</u>** .
 This Amendment shall be governed and construed by the terms and conditions set forth in the
 Loan Agreement. In any event of a conflict between the terms contained in this Amendment
 and the Loan Agreement or the other Amendments, the terms contained in this Amendment shall
 govern.

**IN WITNESS WHEREOF**, the Parties have caused this Amendment to the Loan Agreement to be executed by their duly authorized representatives effective as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **Xylo Technologies Ltd.** | **Xylo Technologies Ltd.** | **Gix Internet Ltd.** | **Gix Internet Ltd.** |
| */s/ Liron Carmel* | */s/ Liron Carmel* | */s/ Amihay Hadad /s/ Amitay Weiss* | */s/ Amihay Hadad /s/ Amitay Weiss* |
| By: | Liron Carmel | By: | Amihay Hadad , Amitay Weiss |
| Title: | CEO | Title: | CFO CEO |

---

## Exhibit 4.18

**Exhibit 4.18**

**<u>Amendment No. 9 TO LOAN AGREEMENT</u>**

This Amendment No. 9 ("**Amendment**") to the Loan Agreement (as defined below) is entered into as of 20 May, 2026, (the "**Effective Date**") by and between **Xylo Technologies Ltd.** (f/k/a Medigus Ltd.), having its principal offices at 10 HaNechoshet St.,Tel Aviv, Israel (the "**Lender**"), and **Gix Internet Ltd.** (f/k/a Algomizer Ltd.), a company organized under the laws of the State of Israel, with principal offices at Ze'ev Jabotinsky Road 2, Ramat Gan, Israel (the "**Borrower**"). Each of the Lender and the Borrower shall be referred to herein as **"party"** and together as the **"Parties"***.*

 

**WHEREAS**, the Parties entered into a Loan Agreement dated October 12, 2021 (the "**Loan Agreement**"), as amended by (i) the 1<sup>st</sup> amendment dated August 25, 2022; (ii) the 2<sup>nd</sup> amendment dated August 29, 2023; (iii) the 3<sup>rd</sup> amendment dated November 8, 2023; (iv) the 4<sup>th</sup> amendment dated January 1, 2024; (v) the 5<sup>th</sup> amendment dated August 22, 2024; (vi) the 6<sup>th</sup> amendment dated October 6, 2024; (vii) the 7<sup>th</sup> amendment dated January 6, 2025; and (viii) the 8<sup>th</sup> amendment dated August 31, 2025 (together, the "**Amendments**");

**WHEREAS,** the Parties wish to amend the Loan Agreement so that the repayment date of the outstanding loan amount, together with any accrued and unpaid interest thereon, shall be deferred from June 30, 2026, to August 31, 2027, and to provide that, from the date on which the Borrower's shares are listed for trading on Nasdaq, the Lender shall have the option to convert the loan into equity of the Borrower, all as subject to and as set forth herein;

**NOW, THEREFORE**, in consideration of the foregoing and the mutual covenants set forth herein, the Parties agree as follows:

1.  **<u>Definitions</u>** .
 All capitalized terms used herein and not otherwise defined shall have the meanings ascribed
 to them in the Loan Agreement or the Amendments.

2.  **<u>Amendments</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Repayment Date</u>. The outstanding loan amount, together with any accrued and unpaid interest thereon,
 shall be repaid in full on 31 August 2027.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Conversion Option.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. From
 the date on which the Borrower's shares are listed for trading on Nasdaq, if at all,
 and until the repayment date set forth in Section 2.1 above, the Lender shall be entitled,
 at its sole discretion, to notify the Borrower of the conversion of all or any part of the
 outstanding loan amount into equity securities of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. The
 conversion ratio, conversion price, type of securities to be allotted to the Lender, and
 all other commercial, legal, and technical terms of such conversion shall be as mutually
 agreed by the Parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. For
 the avoidance of doubt, the exercise of the Lender's conversion right shall be subject
 in all respects to applicable law, the Borrower's organizational documents, the applicable
 Nasdaq rules and the rules of any other relevant stock exchange, and the receipt of all requisite
 corporate, regulatory, and other approvals, whether required on behalf of the Borrower or
 the Lender.

3.  **<u>No Further Amendments</u>** . Other than as set forth herein, all terms and conditions set
 forth in the Loan Agreement and the Amendments shall remain without change, binding and of
 full force and effect.

4.  **<u>Miscellaneous</u>** .
 This Amendment shall be governed by, and construed in accordance with, the terms and conditions
 of the Loan Agreement. In the event of any conflict between the terms of this Amendment and
 those of the Loan Agreement or any of the other Amendments, the terms of this Amendment shall
 govern.

**IN WITNESS WHEREOF**, the Parties have caused this Amendment to the Loan Agreement to be executed by their duly authorized representatives effective as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **<u>Xylo Technologies Ltd.</u>** | **<u>Xylo Technologies Ltd.</u>** | **<u>Gix Internet Ltd.</u>** | **<u>Gix Internet Ltd.</u>** |
| /s/ Kfir Zilberman | /s/ Kfir Zilberman | /s/ Amihay Hadad /s/ Eli Yoresh | /s/ Amihay Hadad /s/ Eli Yoresh |
| By: | Kfir Zilberman | By: | Amihay Hadad , Eli Yoresh |
| Title: | CEO | Title: | CFO Chairman |

---

## Exhibit 4.19

**Exhibit 4.19** 

**<u>Agreement</u>**

**Entered into and executed in Tel HaShomer as of this** <u>31<sup>st</sup> day of May 2022</u>

---

| | |
|:---|:---|
| **Between:** | &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;The Sheba Fund for Health Services and Research (R.A.) 580301992, Tel HaShomer, Ramat Gan 5265601<br> (hereinafter: the "**Client**")<br>**<u>Of the One Part</u>**;<br>|
| **And between:** | SEAMLESS VISION (2017) LTD, Licensed Dealer / Company No. 515592301<br> 54 Arlozorov Street, Tel Aviv 6248827<br> Telephone: 054-5551117<br> (hereinafter: the "**Company**"/the "**Supplier**")<br>**<u>Of the Other Part</u>**; |

---

---

| | |
|:---|:---|
| **Whereas:** | The Client published Tender No. **<u>22298034</u>** for operational leasing – for the supply, installation, operation, and maintenance of a robotic transport fleet within buildings throughout the C. Sheba Medical Center at Tel HaShomer (hereinafter: the "**Tender**"); |
| **And whereas:** | The Supplier submitted a proposal under the Tender for operational leasing – for the supply, installation, operation, and maintenance of a robotic transport fleet in the hospital (hereinafter: the "**Proposal**") and is willing to assume the performance of all the obligations detailed in the Tender pursuant to the terms of this Agreement; |

---

**Therefore, it was agreed, declared, and stipulated between the Parties as follows:**

1. The
 preamble to this Agreement constitutes an integral part hereof.

2. It
 is agreed between the Parties that the documents detailed below, including all their appendices
 and the documents and standards referenced therein, constitute an integral part of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;2.1. Response
 to the Tender by the Supplier, including the technical specification of the equipment and
 systems

&nbsp;&nbsp;&nbsp;&nbsp;2.2. The
 Supplier's Proposal dated March 13, 2022 (attached).

**3.**  **<u>Definitions</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;3.1. "**Engagement Period**" – The Engagement Period shall commence upon the signing of this Agreement
 with the Supplier and shall be for a period of 24 months from the date of service supply,
 with an option, at the sole discretion of the hospital, to extend for additional periods
 of one year each.

&nbsp;&nbsp;&nbsp;&nbsp;3.2. **Commencement Date of Service Supply** – The Supplier undertakes that **within 4 months from the date of signing this Agreement**, the robotic transport fleet shall be installed and operated,
 including the proper installation of the equipment and accompanying systems.

&nbsp;&nbsp;&nbsp;&nbsp;3.3. "**Warranty Period**" – Full warranty for the entire Engagement Period. The warranty shall
 apply to the types of robots, the equipment, and the accompanying systems, including labor,
 spare parts, compliance with SLA, and shall be calculated from the date of supply, installation,
 and operation of the robots, and after inspection and approval by an authorized representative
 of the hospital.

&nbsp;&nbsp;&nbsp;&nbsp;3.4. The
 "**Services**" – Supply, installation, and operation of a fleet of robots,
 including the equipment and accompanying systems, implementation for mapping, mapping updates
 and software updates, repair and maintenance services, and in-person and telephone training
 support.

Terms and definitions appearing in the appendices to the Agreement and also appearing in this Agreement shall bear the same interpretation and meaning assigned thereto in the appendices to the Agreement. In any case of contradiction between the Agreement and its appendices, the provisions of the technical specification shall prevail.

**4.**  **<u>Declarations of the Company</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;4.1. The
 Company declares and undertakes that it has proven experience in the supply, installation,
 operation, and maintenance of a robotic transport fleet, and that it has the knowledge, professional
 capability, expertise, and technical means to fulfill all its obligations under this Agreement
 and all its appendices in the most professional and efficient manner to the satisfaction
 of the Client and/or anyone acting on its behalf. The Company shall, at all times and at
 all dates specified in this Agreement, possess the spare parts, equipment, and tools necessary
 for the maintenance of the transport robots, the equipment, and the accompanying systems,
 as well as a skilled team to perform the works and provide the Services set forth in this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4.2. The
 Company undertakes to perform all the works and installations required of it and the Services
 specified in this Agreement using safe work methods and a skilled team with proper equipment.

&nbsp;&nbsp;&nbsp;&nbsp;4.3. Without
 derogating from the generality of the above, the Company undertakes to perform all the works
 and installations under this Agreement in accordance with the law and to comply with the
 instructions of a safety inspector on behalf of the Ministry of Labor, if so required, and
 to fulfill the licensing obligations prescribed by any law in relation to occupational safety
 procedures for both workers and the public.

&nbsp;&nbsp;&nbsp;&nbsp;4.4. The
 Company declares that there is no contractual and/or legal and/or other impediment to its
 engagement with the Client.

&nbsp;&nbsp;&nbsp;&nbsp;4.5. The
 Company declares and confirms that it has no and shall have no proprietary right and/or exclusivity
 and/or lease right in the areas where the equipment and systems will be installed and the
 transport robots will be placed, and that its status in this engagement is that of a supplier
 providing the Services specified in the Tender.

&nbsp;&nbsp;&nbsp;&nbsp;4.6. The
 Company declares and confirms that it shall provide the following Services:

● The Company shall supply, install, and operate transport robots throughout the hospital, including the accessories, equipment, and software necessary for the operation and maintenance of the robots and the supporting systems, all in accordance with the requirements set forth in the Tender.

● The Company undertakes to operate the transport robots and ensure that they are operated optimally and in accordance with the Tender requirements.

● The Company undertakes to provide maintenance services and spare parts as detailed in the Tender.

● The Company undertakes to act in accordance with the technical specification and the requirements for the types of robots, equipment, and accompanying systems proposed by it and attached to the Proposal.

● The Company, as stated, undertakes to ensure the installation, placement, and operation of the transport robots and the accompanying systems, including all components and spare parts, as specified in the Tender and in accordance with the specification and manufacturer's catalog attached by the Company.

● The Company undertakes to comply at all times with the provisions of the law regarding the employment of workers and/or employees, as well as with the provisions of general collective agreements and/or any valid collective agreement executed in the sector relevant to the type of workers employed, as amended and extended from time to time, and with any extension order applicable now or in the future to this sector.

● The Company undertakes to provide its employees, at its own expense, with all safety and hygiene equipment required for the performance of their work or as required by law and/or by the instructions of the Client's safety officer, and to ensure that its employees receive safety training from its representative as required.

● The Company undertakes to comply at all times with the instructions of the Client's safety and security department representatives and to implement such instructions immediately.

● The Company undertakes that its employees and any person on-site on its behalf shall not enter any part of the site without permission, except for the purpose of performing the works under this Tender only.

● For the purpose of providing the Services, the Company undertakes to employ Israeli citizens holding Israeli identity cards, who are capable of performing the Services in terms of health condition, age, qualifications, certifications, level of professionalism, and responsibility, subject to all applicable laws and subject to the approval of the Client.

**5.**  **<u>Engagement Period</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;5.1. The
 Engagement Period shall commence upon the signing of this Agreement with the Supplier and
 shall be for a period of 24 months from the date of service supply, with an option, at the
 sole discretion of the hospital, to extend for additional periods of one year each.

&nbsp;&nbsp;&nbsp;&nbsp;5.2. The
 Engagement Period shall continue throughout the entire period of supply, installation, operation,
 and maintenance, as detailed in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;5.3. Following
 the signing of this Agreement by the Parties and receipt by the Company of a written notice
 from the hospital stating that the work may commence (hereinafter: the "**Notice** "),
 the supply, installation, and operation of the robotic equipment and systems shall be completed
 within **4 months**.

&nbsp;&nbsp;&nbsp;&nbsp;5.4. The
 24-month warranty period (included in the consideration) shall commence as stated from the
 date of supply, installation, operation of the robots, and installation and operation of
 the accompanying equipment and systems, and after inspection and approval by an authorized
 representative of the hospital.

&nbsp;&nbsp;&nbsp;&nbsp;5.5. The
 Company undertakes to complete all Services in all their stages in accordance with the timetable
 to be determined by the Parties and as detailed in the Tender documents.

&nbsp;&nbsp;&nbsp;&nbsp;5.6. If
 a delay occurs in the performance of any stage of the Services due to force majeure or due
 to other conditions which, in the opinion of the inspector on behalf of the hospital, are
 beyond the Company's control and could not have been prevented, the Client may grant
 the Company an extension of the performance deadlines set in the timetable, equal to the
 period of the delay, provided that the Company submitted a request for an extension immediately
 upon the occurrence of the event for which the extension is requested; the Client's
 decision in this matter shall be final and binding upon the Company.

**6.**  **<u>Timetables for Fault Repair Services</u>** 

The Supplier undertakes to provide the hospital with fault repair services, including all spare parts and components in the equipment and systems, **<u>within 48 hours from the time the fault is reported</u>**.

**7.**  **<u>Consideration</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;7.1. For
 the performance of all Company obligations under this Agreement including Appendices thereof,
 including provision of warranty throughout the 24-month Engagement Period, the Client undertakes
 to pay the Company a monthly payment in the amount of  **<u>ILS 20,442 plus VAT for three robots</u>** (hereinafter: the "**Consideration** ").

Payment shall be **<u>net + 60 days</u>** according to the procedures of the Medical Center and the Fund for Medical Research.

&nbsp;&nbsp;&nbsp;&nbsp;7.2. After
 receiving approval from the hospital inspector that the transport robots, equipment, and
 accompanying systems are operating optimally, the Company shall issue an invoice, and the
 Consideration shall be paid in full to the Company in shekels within 30 days from the date
 of submission of the invoice by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;7.3. It
 is hereby agreed that the Consideration constitutes the full and final price the Client shall
 be required to pay the Company for the provision of all Services, including maintenance services
 and fulfillment of all other Company obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;7.4. The
 Consideration under this section is final and absolute and applies to all expenses of any
 kind that may arise for the Company. The transport of the robots, equipment, and systems,
 insurance premiums (which are also included in the Consideration), installation, installation
 of substitute equipment/component if necessary, expenses for replacement of spare parts or
 components and the like shall be carried out at no additional charge.

&nbsp;&nbsp;&nbsp;&nbsp;7.5. For
 the avoidance of doubt, any change in VAT from the date of signature of the Agreement and
 for the entire term thereof shall apply to the Parties, and the Consideration shall be paid
 subject to such change.

**8.**  **<u>Parking</u>** 

It is hereby clarified that payment for parking within the hospital premises during the period of service provision shall be at the expense of the Supplier.

**9.**  **<u>Penalties</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;9.1. The
 Supplier must fulfill its obligations to supply, install, operate, and maintain the transport
 robots, equipment, and accompanying systems within **4 months** from the date of signing
 this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;9.2. For
 each week of delay, a 2.5% discount shall be applied to the invoice.

&nbsp;&nbsp;&nbsp;&nbsp;9.3. The
 response time for a reported fault shall be **up to 48 hours** from the time the service
 call is opened. For each delay beyond the defined SLA time, a penalty of ILS 500 per business
 day of delay shall be imposed.

&nbsp;&nbsp;&nbsp;&nbsp;9.4. In
 any case of service not meeting the satisfaction of the hospital inspector in terms of work
 quality and spare part quality, a penalty of 10%-100% discount shall be imposed on the spare
 parts invoice.

&nbsp;&nbsp;&nbsp;&nbsp;9.5. It
 is hereby clarified that spare parts approved for maintenance shall be identical to those
 listed in the approved price quote, and no alternative parts shall be accepted without written
 approval from the professional responsible for implementation of the Tender on behalf of
 the hospital.

&nbsp;&nbsp;&nbsp;&nbsp;9.6. In
 any case of disciplinary action and non-compliance with site procedures and/or state laws,
 a penalty of ILS 500 shall be imposed on the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;9.7. Multiple
 complaints and/or penalties shall constitute, at the discretion of the Client, legal grounds
 for termination of the engagement with the Supplier.

**10.**  **<u>Performance Guarantee – Section Cancelled by Mutual Agreement of the Parties</u>** 

Upon execution of the Agreement, the Supplier shall provide the Client, to secure the fulfillment of its obligations, an autonomous and unconditional bank guarantee in the amount of **ILS 25,000, linked to the Consumer Price Index** (hereinafter: the "**Performance Guarantee**"). The guarantee shall remain in effect throughout the entire term of the Agreement and for 90 days after the end of the full warranty and service period, as set out in the terms of the Agreement.

The Client shall be entitled to exercise the said guarantee in order to enforce its rights and to collect any amount owed to it under the Agreement, including penalty amounts due to delay in service or fault repair time as stipulated in this Agreement, and due to payment delays attributable to the Supplier, in accordance with the determination of representatives of the Construction, Assets, Logistics, Maintenance and Finance Departments of the hospital.

**11.**  **<u>No Employer-Employee Relationship</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;11.1. The
 Parties declare that nothing in this Agreement or its performance shall be deemed to give
 rise to an employer-employee relationship between any of the Parties and the employees of
 the other Party, and that each Party shall be solely responsible for its own employees. If
 a claim is filed by any employee of the Company against the Client and/or the hospital in
 connection with an alleged employer-employee relationship, the Company shall ensure its dismissal
 and/or shall indemnify the Client for any amount it may be required to pay in relation to
 such claim.

&nbsp;&nbsp;&nbsp;&nbsp;11.2. The
 Company further declares that it insures itself and its employees and/or agents against any
 damage that may be caused to them in connection with the performance of this Agreement.

**12.**  **<u>Confidentiality and Rights</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;12.1. The
 Parties undertake to keep confidential all information that comes to their knowledge in connection
 with this Agreement, including information regarding patients and/or persons treated at the
 hospital and/or clinical trials conducted at the hospital, and not to disclose to any party
 any information of any kind that becomes known to them as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;12.2. The
 Company undertakes to have each employee and any representative on its behalf operating at
 the facility sign a confidentiality undertaking accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;12.3. The
 Parties shall be mutually liable for any damage caused to any party as a result of a breach
 of the confidentiality obligation, as stated in this section.

**13.**  **<u>Liability for Damages</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;13.1. It
 is agreed and declared between the Parties that the Company is an "independent contractor"
 and shall be liable as such toward the hospital and/or anyone acting on its behalf and/or
 their employees and/or invitees and/or patients at the hospital and/or any other person or
 entity, in accordance with the Torts Ordinance and any applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;13.2. The
 Company shall be liable under law for any damage, including financial damage, caused as a
 result of the provision of the Services. The Company shall not be exempt from liability under
 law toward the Client, the hospital, or any third party. The Company shall bear responsibility
 for any damage, including bodily injury, caused by the Company and/or its employees and/or
 its agents and/or its contractors and/or anyone acting on its behalf at the hospital, including
 to any item and/or device located at the hospital and to any person, including any employee
 at the hospital and including any third party, provided that the damage occurred during or
 as a result of the performance of this Memorandum of Understanding, including poor and/or
 negligent performance of this Memorandum of Understanding, and including failure of the Company
 to comply with any provision of this Memorandum of Understanding and all its declarations
 and undertakings herein and in all its appendices. The Company undertakes to pay the Client,
 the hospital, and/or any other party any damage or loss for which it is liable as aforesaid,
 and further undertakes to indemnify such parties for any amount they may pay due to damages
 for which the Company is liable under law and/or pursuant to this Memorandum of Understanding.

**14.**  **<u>Insurance</u>** 

The Company shall comply with the insurance requirements detailed in the Insurance Appendix attached to this Agreement.

The Company shall ensure that all its insurance policies relating to the Services under this engagement include a waiver of the right of subrogation against the Client, the State of Israel – Ministry of Health, its employees, and those acting on its behalf (such waiver shall not apply to damage caused with malice).

The Client reserves the right to receive from the Supplier, upon request, confirmation of insurance or copies of the policies. Failure to comply with the provisions of this section shall constitute a breach of this Agreement.

**15.**  **<u>General</u>** 

For the avoidance of doubt, it is hereby explicitly agreed that the obligations of the Supplier under this Agreement shall also apply to additional transport robots that the hospital may decide to order from the Supplier and install throughout the hospital. If the hospital so decides, the obligations shall apply with respect to any changes and/or updates and/or improvements to the equipment and systems, insofar as they are added by the Supplier to such equipment and systems.

&nbsp;&nbsp;&nbsp;&nbsp;15.1. The
 Supplier may not assign its rights and/or obligations under this Agreement to others without
 obtaining the prior written consent of the Client.

&nbsp;&nbsp;&nbsp;&nbsp;15.2. This
 Agreement may only be amended in writing and with the signatures of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;15.3. The
 status of the Supplier with regard to the provision of the Services and all other obligations
 under this Agreement shall be that of an independent contractor. The Parties declare that
 nothing in the terms of this Agreement or in its execution shall be deemed to give rise to
 an employer-employee relationship between any of the Parties and the employees of the other
 Party, and that each Party shall be solely responsible for its own employees.

&nbsp;&nbsp;&nbsp;&nbsp;15.4. The
 Supplier shall be liable for any damage caused to the property of the hospital and/or any
 other person or entity as a result of the provision of the Services by it.

&nbsp;&nbsp;&nbsp;&nbsp;15.5. The
 Supplier shall be liable for any bodily injury caused to its employees or to Hospital employees
 or to patients, inpatients, invitees, or visitors at the hospital, resulting from or in connection
 with the provision of the Services by it. The Supplier undertakes to insure its aforementioned
 liability under this Agreement and its employer's liability (against all risks) and
 to include the hospital as an additional insured under the policy. The Supplier shall provide
 the Client with a copy of the policies as a condition for the commencement of the provision
 of the Services.

**16.**  **<u>Breach and Termination:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;A. The
 provisions of Sections 4, 6, 7, 10, and 12 of this Agreement shall be deemed fundamental
 conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;B. Without
 prejudice to the Client's rights to any remedy under any law, if the Supplier breaches
 any of the provisions listed in subsection A above (and/or any other breach that is not remedied
 within 14 days), the Client shall be entitled, after providing the Supplier with 7 days'
 prior written notice, to terminate the Agreement and to make use of the Performance Guarantee
 as compensation for such fundamental breaches. – **This part is cancelled**.

The Supplier shall not be entitled to any payment and/or compensation of any kind from the Client in respect of such termination of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;A. Notwithstanding
 the provisions of subsection B concerning advance notice of termination, the hospital may
 terminate the Agreement without any prior notice in the event a liquidator and/or receiver
 is appointed for the Supplier and such appointment is not revoked within 30 days. The provisions
 of subsections B and C shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;B. Termination
 of engagement by the Client shall be subject to two months' notice during the first
 six months, and after six months, termination of the engagement by the Client shall require
 four months' notice.

17. It
 is hereby agreed that the Chief Engineer of the hospital, or anyone appointed by him, shall
 be authorized to decide on any professional dispute between the Parties, including compliance
 with all obligations of the Supplier under this Agreement and all its appendices, and his
 decision shall be binding upon the Supplier for all intents and purposes.

18. The
 addresses and fax numbers of the Parties are as set out in the preamble to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;18.1. Any
 notice sent by one Party to the other shall be deemed to have reached its destination within
 3 days from the date of sending by registered mail.

&nbsp;&nbsp;&nbsp;&nbsp;18.2. Any
 notice sent by facsimile shall be deemed to have reached its destination upon receipt of
 proper confirmation of transmission and after telephone confirmation of receipt by an employee
 of the receiving Party, whose name shall be noted on the notice.

**<u>In Witness Whereof The Parties Hereto Have Hereunto Set Their Hands:</u>**

---

| | |
|:---|:---|
| */s/ Moshe Barak /s/ Eyal Zimlichman*  | */s/ Amir Nardimon* |
| **The Client** | **The Company** |

---

**<u>Appendix L – Insurance Requirements</u>**

A. The
 Supplier undertakes to obtain and maintain the insurance policies detailed herein for its
 benefit and for the benefit of the State of Israel – Ministry of Health, the Sheba
 Medical Center at Tel HaShomer, and the Sheba Fund for Health Services and Research, including
 all required coverages and conditions, with liability limits not less than those specified
 below.

**1.**  **<u>Employer's Liability Insurance</u>** 

1. The
 Supplier shall insure its legal liability toward its employees under employer's liability
 insurance in all territories of the State of Israel and the territories held by the State
 of Israel.

2. The
 liability limit shall be no less than ILS 20,000,000 per employee, per event, and per insurance
 period (year).

3. The
 policy shall be extended to cover the liability of the insured toward contractors, subcontractors,
 and their employees, if considered their employer.

4. The
 policy shall be extended to indemnify the State of Israel – Ministry of Health, the
 Sheba Medical Center at Tel HaShomer, and the Sheba Fund for Health Services and Research,
 in the event that a claim is made in connection with a work accident and/or occupational
 illness alleging that they bear employer liability of any kind toward any employee of the
 Supplier, its contractors, subcontractors, or their employees.

**2.**  **<u>Third-Party Liability Insurance</u>** 

1. The
 Supplier shall insure its legal liability under the laws of the State of Israel with third-party
 liability insurance for bodily injury and property damage (including consequential damage),
 throughout all territories of the State of Israel and the territories held by the State of
 Israel.

2. The
 liability limit shall not be less than ILS 2,000,000 per event and per insurance period (year).

3. The
 policy shall include a cross-liability clause.

4. The
 insurance shall be extended to cover damage caused by loading and unloading operations using
 lifting devices of any kind. Any exclusion or limitation relating to loading and unloading
 shall be nullified.

5. The
 insurance shall be extended to cover the insured's liability toward third parties arising
 from the activities of contractors, subcontractors, and their employees.

6. Any
 exclusion or limitation relating to property owned by the State of Israel, where the Supplier
 or any of its personnel operate or have operated, shall be nullified.

7. The
 property of the State of Israel shall be deemed third-party property.

8. The
 insurance shall be extended to indemnify the State of Israel – Ministry of Health,
 the Sheba Medical Center at Tel HaShomer, and the Sheba Fund for Health Services and Research,
 to the extent they are deemed liable for acts and/or omissions of the Supplier and its representatives.

**3.**  **<u>Product Liability Insurance</u>** 

1. The
 Supplier shall insure its liability and that of the manufacturer\* (if it is not the manufacturer)
 under product liability insurance in respect of the placement of operational robots on the
 premises of the Sheba Medical Center at Tel HaShomer, in accordance with the Memorandum of
 Understanding signed with the Sheba Fund for Health Services and Research, the State of Israel
 – Ministry of Health, and the Sheba Medical Center at Tel HaShomer.

**\*As an alternative to including the manufacturer's liability under the Supplier's product liability policy, the Supplier may present a separate Certificate of Insurance from the manufacturer, provided such policy includes clarifications stating that the named insured also includes: (a) the State of Israel – Ministry of Health, the Sheba Medical Center at Tel HaShomer, and the Sheba Fund for Health Services and Research (subject to the indemnity extension below)**; **(b) a cross liability clause; (c) a waiver of subrogation against the State of Israel – Ministry of Health, the Sheba Medical Center at Tel HaShomer, and the Sheba Fund for Health Services and Research, and their employees (provided that such waiver shall not apply in favor of any person who caused the damage with malicious intent); (d) legal jurisdiction and territorial limits including the State of Israel**.

2. Coverage
 under the policy shall be in accordance with the law, including the Torts Ordinance [New
 Version] and the Product Liability Law, 1980.

3. The
 liability limit shall not be less than ILS 4,000,000 per event and per insurance period (year).

4. The
 policy coverage shall be extended to include the following:

● Cross liability clause

● Discovery period extension of at least 6 months

5. The
 policy shall be extended to indemnify the State of Israel – Ministry of Health, the
 Sheba Medical Center at Tel HaShomer, and the Sheba Fund for Health Services and Research,
 for liability in respect of damage caused due to defects in products supplied, installed,
 or maintained by the Supplier and all those acting on its behalf

**4.**  **<u>Property Insurance</u>** 

The Supplier shall insure at reinstatement value the operational robots used for the performance of the Services under the Memorandum of Understanding under "All Risks" insurance, including coverage for natural disasters, theft, burglary, and robbery. As an alternative to procuring property insurance, the Supplier may choose not to procure such insurance in whole or in part; however, in such case, the Supplier waives any and all claims against the State of Israel – Ministry of Health, the Sheba Medical Center at Tel HaShomer, the Sheba Fund for Health Services and Research, their employees, and the hospital's patients and guests, in respect of any damage and/or loss caused to the said structures and contents, and undertakes not to make any claim against them for such damages. This waiver shall not apply in favor of any person who caused the damage with malicious intent.

5.  **<u>General</u>** 

All the insurance policies required from the Supplier shall include the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 following shall be added as additional insureds under the name of the insured: **the State of Israel – Ministry of Health**, the Sheba Medical Center at Tel HaShomer, and the
 Sheba Fund for Health Services and Research, subject to the indemnity extensions detailed
 above.

&nbsp;&nbsp;&nbsp;&nbsp;2. In
 any case of reduction or cancellation of insurance by either party, such action shall have
 no effect unless advance notice of at least 60 days has been provided by registered mail
 to the Administrative Director of the Sheba Medical Center at Tel HaShomer.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 insurer waives all rights of subrogation, claims, contribution, or recourse against the State
 of Israel – Ministry of Health, the Sheba Medical Center at Tel HaShomer, and the Sheba
 Fund for Health Services and Research, and their employees, provided that such waiver shall
 not apply to any person who caused the damage with malicious intent.

&nbsp;&nbsp;&nbsp;&nbsp;4. The
 Supplier shall be solely responsible to the insurer for the payment of premiums for all policies
 and for fulfilling all obligations imposed on the insured under the terms of the policies.

&nbsp;&nbsp;&nbsp;&nbsp;5. Any
 deductibles stated in the policies shall apply solely to the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;6. Any
 clause in the insurance policies that excludes or reduces the insurer's liability in
 any way due to the existence of other insurance shall not apply to the State of Israel, and
 the insurance shall be deemed primary insurance entitling full rights under the policy.

&nbsp;&nbsp;&nbsp;&nbsp;7. The
 terms of coverage of these policies shall not be less than those commonly accepted under
 the "BIT" policy wording, subject to the extensions listed above.

&nbsp;&nbsp;&nbsp;&nbsp;8. Any
 exclusion for willful misconduct and/or gross negligence shall be nullified, if existing.

**B**. The
 Supplier undertakes to maintain the validity of the insurance policies for the entire duration
 of its contractual engagement with the State of Israel – Ministry of Health, the Sheba
 Medical Center at Tel HaShomer, and the Sheba Fund for Health Services and Research, and
 for as long as its liability exists. The Supplier undertakes to renew the insurance policies
 for each insurance period, for as long as the contract with the State of Israel – Ministry
 of Health, the Sheba Medical Center at Tel HaShomer, and the Sheba Fund for Health Services
 and Research remains in effect.

**C**. Confirmation
 signed by the insurer regarding the existence of the insurance policies shall be submitted
 by the Supplier to the Sheba Fund for Health Services and Research no later than the date
 of execution of the Agreement. The Supplier undertakes to submit to the Sheba Fund for Health
 Services and Research confirmation signed by the insurer regarding renewal of the policies
 no later than two weeks before the expiration of the insurance period.

**It is hereby clarified that the certificate(s) of insurance presented do not limit the obligations of the Supplier under the insurance sections detailed above, and their abbreviated format is solely for the purpose of allowing the insurers to comply with regulatory guidelines. The binding insurance provisions are those appearing above. The Supplier shall study these requirements and, if necessary, consult with its insurance professionals in order to fully understand the requirements and implement them in its policies without reservations**.

**D**. The
 Sheba Fund for Health Services and Research reserves the right to request from the Supplier
 at any time copies of the insurance policies in full or in part, in the event of the discovery
 of circumstances that may give rise to a claim under the policies and/or for the purpose
 of reviewing the Supplier's compliance with these sections and/or for any other reason.
 The Supplier shall provide copies of the insurance policies in full or in part immediately
 upon receipt of such request. The Supplier undertakes to implement any change or amendment
 required to bring the policies into conformity with its obligations under subsection A above.

**E**. The
 Supplier declares and undertakes that the right of the Sheba Fund for Health Services and
 Research to conduct review and to require changes as detailed above does not impose any obligation
 or liability whatsoever upon the Sheba Fund for Health Services and Research, the State of
 Israel – Ministry of Health, the Sheba Medical Center at Tel HaShomer, or anyone acting
 on their behalf, regarding the insurance policies/insurance confirmations mentioned, their
 nature, scope, and validity, or regarding their absence, and does not derogate from any obligation
 imposed on the Supplier under the Agreement, whether adjustments were required or not, and
 whether reviewed or not.

**F**. For
 the avoidance of doubt, it is hereby agreed that the required insurance policies, liability
 limits, and coverage conditions constitute a minimum requirement imposed on the Supplier
 and do not constitute approval by the Sheba Fund for Health Services and Research, the State,
 or anyone acting on their behalf, of the scope or extent of the insurable risk. The Supplier
 must assess its exposure to property and liability risks, including bodily injury and property
 damage, and determine the necessary insurance, including scope of coverage and liability
 limits, accordingly.

**G**. Nothing
 in the insurance sections shall release the Supplier from any obligation imposed on it by
 law or under the Agreement, nor shall it be interpreted as a waiver by the Sheba Fund for
 Health Services and Research, the State of Israel – Ministry of Health, or the Sheba
 Medical Center at Tel HaShomer of any right or remedy granted to them by law or under this
 Agreement.

**H**. Failure
 to comply with the provisions of these insurance sections shall constitute a fundamental
 breach of the Agreement.

## Exhibit 4.20

**Exhibit 4.20** 

**Certain confidential information contained in this document, marked by brackets and asterisk, has been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K, because it (i) is not material and (ii) would be competitively harmful if publicly disclosed**

**PRIVATE PLACEMENT AGREEMENT**

THIS PRIVATE PLACEMENT AGREEMENT (this "**Agreement**") is made as of the [6][8]<sup>th</sup> day of May 2026, by and between, **Gix Internet Ltd.**, a company organized under the laws of the State of Israel (the "**Company**"), and each of the investors identified on Schedule A attached hereto (each, an "**Investor**" and collectively, the "Investors"). The Company and the Investors are referred to collectively as the "**Parties**" and each as a "**Party**".

**W I T N E S S E T H**:

WHEREAS, the Company is a public company, incorporated under the laws of the State of Israel registered under number 520040262, whose shares are listed for trading on the Tel Aviv Stock Exchange;

WHEREAS, the Company has an authorized share capital of 100,000,000 Ordinary Shares with no par value (the "**Ordinary Shares**"), comprised of 2,075,079 Ordinary Shares which have been issued and are fully paid; and has issued warrants, employee options and other convertible securities which in the aggregate are convertible into 1,237,205 Ordinary Shares;

 

WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company to raise capital by means of issuance Ordinary Shares and warrants to the Investor;

WHEREAS, the Investors desires to purchase, and the Company desires to issue and sell to the Investors, Ordinary Shares and warrants pursuant to the terms and conditions more fully set forth in this Agreement;

WHEREAS, [[\*\*\*] (the "**Lead Investor**") is a public company incorporated under the laws of [\*\*\*], whose shares are listed for trading on the [\*\*\*], and is interested in participating as the lead investor in the private placement contemplated by this Agreement, as set forth in Exhibit A] [on May 6, 2026, the Company entered into certain private placement agreements with several investors, for an aggregate investment amount of NIS 8,550,000, on terms and conditions identical to those set forth in this Agreement, and the lead investor under such investment agreements is Starmet Ventures Inc. (the "**Lead Investor**")].

**NOW, THEREFORE**, in consideration of the mutual promises and covenants set forth herein, the Parties hereby agree as follows:

1. **<u>Purchase and Sale of Ordinary Shares</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Sale and Issuance of Shares</u>. Subject to the satisfaction of the closing conditions set forth in Sections 5 and 6 hereof, at the Closing (as defined below), the Company shall issue and sell to the Investors, and the Investors shall purchase from the Company, according to the allocation set forth in <u>Exhibit A</u> attached hereto, in consideration for the payment by the Investors (severally and not jointly) of the Purchase Price (as defined below), an aggregate of [388,636][28,636] Ordinary Shares (the "**Purchased Shares**"), free and clear from any security interests, liabilities, limitations, pledges, hypothecations, restrictive covenants, claims, restrictions, mortgages, charges pledges and liens whatsoever or any other similar rights or any other third party rights, limitations or restrictions, and rights limitations or restrictions which may impose restrictions on the transfer thereof at any time (collectively, "**Free and Clear**"). In addition, as an inducement to such Investors to enter into this Agreement, the Company shall issue to the Investors, upon Closing, a Warrant (as defined below) to purchase such number of Ordinary Shares set forth opposite such Investor's name on <u>Exhibit</u> A, at an exercise price of NIS 27.5 per each Ordinary Share (the "**Warrant Shares**"), which Warrant shall be exercisable for a period of eighteen (18) months from the date of its issuance, all under and subject to the terms and conditions set forth in the Warrant to be executed by the Company to such Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Purchase Price</u>. The purchase price per Ordinary Share shall be NIS 22 (the "**Purchase Price**"). Each Investor shall pay, at the Closing, its Cash Consideration as set forth on <u>Exhibit A,</u> which shall be paid in cash by wire transfer of immediately available funds to the Company's Bank Account (as defined below), either (i) in NIS, or (ii) in U.S. Dollars in an amount equal to the NIS amount payable by such Investor converted to U.S. Dollars using the representative exchange rate published by the Bank of Israel for the applicable currency on the TASE trading day immediately preceding the Closing Date (the "**Cash Consideration**").

2. **<u>The Closing</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Closing Date</u>. The consummation of the transactions contemplated hereby, including the purchase and sale of the Purchased Shares (the "**Closing**"), shall take place remotely via the exchange of documents and signatures on the third (3) TASE trading day after the satisfaction of all of the conditions set forth in Sections ‎5 and ‎6 below, other than those conditions that, by their nature, are to be satisfied at the Closing (but subject to the fulfillment or specific written waiver of those conditions (if permitted hereunder) at the Closing), or at such other time and place as the Company and the Lead Investor mutually agree upon (such designated time and place, the "**Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Transactions at the Closing</u>. At the Closing, the following transactions shall take place, which transactions shall be deemed to take place simultaneously and no transaction shall be deemed to have been completed or any document delivered until all such transactions have been completed and all required documents delivered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1 The Company shall deliver to the Investor:

2.2.1.1 True and correct copies of the resolutions of the Board of
Directors (the "**Board** "), approving the transactions contemplated herein including the issuance of the Purchased Shares
and the grant of the Warrants and the issuance of the Warrant Shares, as applicable, upon the exercise of such Warrants, in each case,
Free and Clear;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1.2 Warrant, duly executed by the Company, representing the respective
Warrant Shares to be issued to the Investor, upon the exercise thereof, in the name of the Investor, all under and subject to the terms
and conditions set forth in the Warrant, in the form attached hereto as Schedule ‎2.2.1.2 (the "**Warrant** ");

2.2.1.3 An approval from the Tel Aviv Stock Exchange approving the
listing and registration for trading of the Purchased Shares and the Warrant Shares on the TASE;

2.2.2 The Company shall issue the Purchased Shares to the Investors
by transferring to the nominee company of the Company (The Nominee Company of Bank Hapoalim Ltd.) (the "**Nominee Company** ")
all the documents and information required in order to register the Purchased Shares in the name of the Nominee Company, in favor of
the applicable stock exchange member(s). Each Investor hereby instructs the Company to procure that the Purchased Shares shall be credited
to such Investor's account with its applicable stock exchange member, as set forth on Exhibit B.

2.2.3 At the Closing, each Investor shall , severally and not jointly,
transfer to the Company such Investor's Cash Consideration to be invested at the Closing by wire transfer of immediately available
funds according to the Company's wire instructions set forth below. Failure of any Investor to transfer its Cash Consideration
shall entitle the Company, without derogating from any other remedy available to it under applicable law, to immediately terminate this
Agreement with respect to such Investor. Details of Company's bank account are as follows ()"**Company's Bank Account** "):

Account Name: **Gix Internet Ltd.**

Account Number: 322600/57<br> Currency: **US$/NIS**<br> Bank Name: Bank Leumi le-Israel B.M..<br> SWIFT : LUMIILITXXX

Branch: 864

IBAN Number: IL190108640000032260057

Routing No.: IL010864

3. **<u>Representations and Warranties of the Company</u>**. The Company hereby represents and warrants to each Investor that the following representations are true, correct and complete as of the date hereof and as of the Closing (as if made on the Closing Date); except, in each case, as to such representations and warranties that address matters as of a particular date, which are true, correct and complete only as of such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Organization</u>. The Company is a company duly organized and validly existing under the laws of the State of Israel, is not a "breaching company" (within the meaning of Section 362.A of the Israeli Companies Law) and has all requisite corporate power and authority to carry on its business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Share Capital</u>. The capitalization table of the Company as presented on the website of the Tel-Aviv Stock Exchange (the "**Capitalization Table**") represents correctly the outstanding share capital of the Company, as well as all warrants, options or any other securities issued by the Company. Except for: (a) the shares and convertible securities (whether allocated or promised) noted in the Capitalization Table, and (b) transactions contemplated by this Agreement, there are no other outstanding convertible securities, warrants, options or other rights to subscribe for, purchase or acquire from the Company, any share capital of the Company or securities convertible into share capital of the Company and there are no undertakings, commitments (or promises) providing for the issuance of, or the granting of rights to acquire, any share capital of the Company. All the issued and outstanding share capital of the Company has been duly authorized, and is validly issued and outstanding and fully paid and nonassessable. The Purchased Shares and the Warrant Shares, when issued, will be duly authorized, validly issued, fully paid, nonassessable, free of any preemptive rights, will have the rights, preferences, privileges, and restrictions set forth in the articles of association of the Company (the "**Articles**"), and will be Free and Clear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Authorization.</u> All corporate action on the part of the Company necessary for the authorization, execution, delivery, and performance of all of the Company's obligations under this Agreement including the issuance of the Purchased Shares and the issuance of the Warrant Shares upon exercise of the Warrant, has been (or will be) taken prior to the Closing. This Agreement, when executed and delivered by or on behalf of the Company, and assuming the due authorization, execution and delivery by the other parties hereto, constitutes valid and legally binding obligations of the Company, legally enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>No Conflict; Consents</u>. Neither the execution and delivery of this Agreement nor compliance by the Company with the terms and provisions hereof, will conflict with, or result in a breach or violation of, any of the terms, conditions and provisions of: (i) the Articles, (ii) any judgment, order, injunction, decree, or ruling of any applicable court or governmental authority, (iii) any applicable law, or (iv) any agreement, contract, lease, license or commitment to which the Company is a party or to which it is subject; and the execution of this Agreement and the compliance by the Company with its terms and provisions shall not (y) give to others any rights, including rights of termination, cancellation or acceleration, in or with respect to any material agreement, contract or commitment, or to any of the properties of the Company, or (z) otherwise require the consent, authorization or approval of any person any governmental authority, court or third party, which consent or approval has not heretofore been obtained, except for the consents required pursuant to Sections ‎5.5,‎5.6 and ‎5.7 (if applicable) of this Agreement, which consents will be obtained prior to the Closing.

4. **<u>Representations and Warranties of the Investor.</u>** Each of the Investors, severally and not jointly, hereby represents and warrants, that the following representations are true, correct and complete as of the date hereof and as of the Closing (as if made on the Closing Date); except, in each case, as to such representations and warranties that address matters as of a particular date, which are given only as of such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Authorization; Organization</u>. The Investor is duly organized, validly existing and, if applicable, in good standing under the laws of the jurisdiction in which it has been incorporated and has full power and authority to enter into this Agreement. This Agreement, when executed and delivered by the Investor, and assuming the due authorization, execution and delivery by the other parties hereto and thereto, constitute valid and binding obligations of the Investor, enforceable against the Investor in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>No Conflict; Consents</u>. The execution, delivery and performance by the Investor of this Agreement and the consummation of the transactions contemplated by this Agreement do not and will not (a) result in any conflict with, or a breach or violation, with or without the passage of time and giving of notice, of any of the terms, conditions or provisions of, or give rise to rights to others (including rights of termination, cancellation or acceleration) under: (i) the governing documents of the Investor; (ii) any judgment, injunction, order, writ, decree or ruling of any court or governmental authority, domestic or foreign, to which the Investor is subject; (iii) any contract or agreement, lease, license or commitment to which the Investor is a party or by which it is bound; (iv) any applicable law; or (b) require the consent, approval or authorization of, registration, qualification or filing with, or notice to any person or any federal, state, local or foreign governmental authority or regulatory authority or agency, on the part of the Investor, which has not heretofore been obtained or made or will be obtained or made prior to Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Purchase Entirely for Own Account</u>. The Purchased Shares and the Warrants will be acquired for investment for the Investor's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor does not presently have any contract, undertaking, agreement or arrangement to (i) sell, transfer or grant participation rights to any person with respect to any of the Purchased Shares, the Warrant or the Warrant Shares, and/or (ii) cooperate in the voting of the Purchased Shares or the Warrant Shares (if issued). The Investor has not been formed for the specific purpose of acquiring the Purchased Shares and/or the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Investment Experience; Qualified Investor</u>. The Investor acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial or business matters that it is capable of evaluating and understanding the merits and risks of the investment in the Company. The Investor meets at least one of the criteria listed in the first addendum to the Israeli Securities Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Statutory Lock-Up</u>. The Investor acknowledges and agrees that the Purchased Shares acquired by such Investor are subject to limitations on transfers under Section 15C of the Israeli Securities Law, 1968 and the regulations promulgated thereunder (the "**Securities Law**"), and the Investor hereby undertakes to comply with such limitations.

5. **<u>Conditions to Closing of the Investors</u>**. The obligations of each Investor to consummate the transactions contemplated by this Agreement, are subject to the satisfaction, on or before the Closing, of each of the conditions set forth in this Section 5, unless otherwise waived in writing (to the extent such conditions may be waived under applicable law) by the Lead Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Representations and Warranties</u>. The representations and warranties made by the Company in this Agreement shall have been true and correct in all material respects on and as if made as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Covenants</u>. All covenants, agreements, and conditions contained in this Agreement to be performed or complied with by the Company prior to the Closing shall have been performed or complied with by the Company, prior to or at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Performance</u>. The Company shall have performed and complied, in all material respects, with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>No Legal Proceedings</u>. No administrative agency, commission, regulatory or governmental or judicial body or any other person shall have commenced any legal proceeding preventing, prohibiting or otherwise making this Agreement or the transactions contemplated hereby illegal or that would otherwise prohibit or restrict the performance of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>TASE Approval</u>. The Company shall have obtained the approval of the Tel Aviv Stock Exchange for the listing of the Purchased Shares and the Warrant Shares on the TASE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Audit Committee & Board Approval</u>. The Audit Committee and the board of directors of the Company shall have approved the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 Shareholders Approval. To the extent required under applicable law, the general meeting of shareholders of the Company shall have approved the transactions contemplated by this Agreement.

6. **<u>Conditions of Closing of the Company</u>**. The obligations of the Company to consummate the transactions contemplated by this Agreement, are subject to the satisfaction, on or before the Closing, of the conditions set forth under this Section ‎6, unless otherwise waived in writing by the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Representations and Warranties</u>. The representations and warranties made by each Investor in this Agreement shall have been true and correct in all material respects on and as if made as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Payment of the Investment Amount</u>. Each Investor shall have paid its Cash Consideration as set forth in this Agreement and on <u>Exhibit</u> A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>TASE Approval</u>. The Company shall have obtained the approval of the Tel Aviv Stock Exchange for the listing of the Purchased Shares and the Warrant Shares on the TASE.

7. **<u>Miscellaneous</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Successors and Assigns; Assignment</u>. Except as otherwise expressly limited herein, the provisions hereof shall inure to the benefit of, and be binding upon, the transferees, successors, assigns, heirs, executors, and administrators of the parties hereto. This Agreement shall not be assigned by either party without the prior written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Further Assurances</u>. Each of the parties hereto shall perform such further acts and execute and deliver such further documents as may reasonably be necessary to carry out and give full effect to the provisions of this Agreement and the intentions of the parties as reflected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed according to the laws of the State of Israel, without regard to the conflict of laws provisions thereof. Any dispute arising under or in relation to this Agreement shall be resolved exclusively by the appropriate court in Tel Aviv-Jaffa district, and each of the parties hereby submits irrevocably and exclusively to the jurisdiction of such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Entire Agreement; Amendment</u>. This Agreement and the Schedules attached hereto constitute the full and entire understanding and agreement between the parties with regard to the subject matters hereof and thereof. The Company makes and has given no other warranties or representations, other than as expressly set out herein. Any term of this Agreement may be amended and the observance of any term hereof may be waived (either prospectively or retroactively and either generally or in a particular instance) only with the written consent of the Company and the Majority Investors (with "Majority Investors" having the meaning set forth in Section 5). The recitals hereto constitute an integral part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Delays and Omissions</u>. No delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or default under this Agreement, shall be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent, or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Notices</u>. All notices and other communications required or permitted hereunder to be given to a party to this Agreement shall be in writing and shall be emailed or mailed by registered (with return receipt confirmation) , postage prepaid, or otherwise delivered by hand or by messenger, addressed to such party's address as set forth below or at such other address as the party shall have furnished to each other party in writing in accordance with this provision:

---

| | |
|:---|:---|
| If to the Company: | 2 Jabotinsky St., Ramat Gan 5252903, Israel<br> Attention: Amihay Hadad , CFO<br> Telephone: +972-53-6666611<br> E-mail: amihay@gix-internet.com<br>|
| If to an Investor: | As set forth for such Investor on <u>Exhibit</u> B |
| \n | |

---

Notice shall be deemed provided (i) in the case of hand delivery or delivery by internationally recognized overnight courier, on the next business day after delivery, (ii) if mailed by registered mail, return receipt requested, two business days following the date it was mailed, and (iii) in the case of a notice sent by e-mail on the date of electronic confirmation of receipt of such e-mail (excluding automatic (out of office) replies) and provided that if such notice is given outside the trading hours on the TASE, such notice shall be deemed provided on the next business day after delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Severability</u>. If any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable under applicable law, then such provision shall be excluded from this Agreement and the remainder of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms; provided, however, that in such event this Agreement shall be interpreted so as to give effect, to the greatest extent consistent with and permitted by applicable law, to the meaning and intention of the excluded provision as determined by such court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument.

*[Remainder of Page Intentionally Left Blank]*

 

IN WITNESS WHEREOF, the parties have executed this Private Placement Agreement as of the date first written above.

---

| | |
|:---|:---|
| <br> **Gix Internet Ltd.** | <br> **Gix Internet Ltd.** |
| By: | Amihay Hadad / Eli Yoresh |
|  | CFO / Chairman |
| Signatures: ________________ | Signatures: ________________ |

---

IN WITNESS WHEREOF, the parties have executed this Private Placement Agreement as of the date first written above.

<u>INVESTOR</u>:

---

| |
|:---|
| <br> By: |
| Name: |
| Title: |

---

**<u>Exhibit A</u>**

<u>Investors, Purchased Shares and Warrants at the Closing</u>

---

| | | | |
|:---|:---|:---|:---|
| Name of Investor | Investment Amount (NIS) | Number of Purchased Shares | Number of Warrant Shares |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **TOTAL:** | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

## Exhibit 4.21

**Exhibit 4.21** 

THIS WARRANT AND ANY SECURITIES THAT MAY BE ISSUED UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>SECURITIES ACT</u>") OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES AND OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION (OTHER THAN PURSUANT TO RULE 144(k), PROVIDED THAT THE COMPANY HAS RECEIVED CUSTOMARY REPRESENTATIONS CERTIFYING AS TO THE AVAILABILITY OF SUCH RULE 144(k)), UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.

**WARRANT TO PURCHASE ORDINARY SHARES**

**OF**

**Gix Internet Ltd**

**(the "Company")**

Warrant Shares: _______

Initial Exercise Date: May 19, 2026

Issuance Date: May 19, 2026

This Warrant is issued in connection with the Private Placement Agreement, dated [6][8] May 2026, by and among the Company and the investors party thereto.

The Holder acknowledges that the Warrant are not transferable nor tradable on TASE and that the Ordinary Shares may be subject to mandatory lock-up pursuant to Israeli Securities Law and Regulations.

**____________________** (together with its successors, transferees and assigns, the "**<u>Holder</u>**") is entitled to purchase subject to the provisions of this Warrant (this "**<u>Warrant</u>**") from the Company, a company organized under the laws of the State of Israel, during the term of this Warrant, at the Exercise Price, Ordinary Shares, with no par value, of the Company (the "**<u>Ordinary Shares</u>**"). The shares issuable upon exercise of this Warrant and the Purchase Price per share, as adjusted from time to time pursuant to the terms of this Warrant, shall be referred to herein as the "<u>Warrant Shares</u>" and the "<u>Exercise Price</u>", respectively.

1. <u>EXERCISE.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Manner of Exercise</u>. This Warrant may be exercised, in whole or in part, on one or more occasions during its term. Subject to the Vesting Schedule, this Warrant may be exercised by the surrender of this Warrant, together with the Notice of Exercise in the form attached hereto, duly completed and executed by the Holder, at the principal office of the Company or at such other office or agency as the Company may designate, accompanied by payment in full of the aggregate Exercise Price payable in respect of the Warrant Shares purchasable upon such exercise. The Exercise Price may be paid by cash or wire transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Allocation Date</u>. This Warrant shall be exercisable in full immediately upon May 19, 2026 (the "**Allocation Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Exercise Period</u>. Eighteen (18) months from the Allocation Date (the "**Exercise Period**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Vesting Schedule</u>: This Warrant shall be exercisable in full immediately upon Allocation Date (no vesting conditions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <u>Exercise Price</u>. The Exercise Price shall be NIS 27.5 per Warrant Share (the "**Exercise Price**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 <u>Delivery to Holder</u>. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within ten (10) business days thereafter, the Company, at its expense, will cause to be issued to the Holder and deposited in its securities bank account (in a bank with which such shares can be deposited, details of such securities account shall be included in the Notice of Exercise) the number of Warrant Shares to which such Holder shall be entitled.

2. <u>ADJUSTMENTS.</u>

The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Adjustment due to technical changes in the Company's share capital. If the number of shares in the Company changes as a result of a share split or a share consolidation (reverse split), the number of shares issuable upon exercise of the Warrants shall be adjusted on a proportional basis. Except where expressly provided otherwise, the issuance or allotment of shares of any type shall not result in an adjustment to the number of shares issuable upon such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Adjustment due to a bonus share distribution. If the Company distributes bonus shares, the number of shares issuable upon exercise shall increase or decrease by the number of shares to which the offeree would have been entitled as bonus shares had the offeree exercised the Warrant up to and including the last trading day preceding the ex-date. The Exercise Price of each Warrant shall not change as a result of the addition of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Adjustment due to a rights offering. If during the term of the exercise right of the Warrants, rights to purchase any securities are offered to the Company's shareholders by way of rights, the Company shall offer the offeree the same securities on terms identical to those offered to the shareholders, and the offeree's holdings of Warrants shall be deemed as if they had been converted into shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Adjustment in respect of dividend distribution. in the event of a cash dividend distribution by the Company to all of its shareholders, including a distribution approved by a court pursuant to Section 303 of the Companies Law, or any other section applicable in this regard, and the record date for entitlement to receive such dividend (the "**Record Date**") falls after the date of grant of the Warrants but before their exercise, the Exercise Price of each Warrant that has not been exercised into a Company share prior to the Record Date shall be reduced by the gross dividend amount per share distributed by the Company.

The Shares issued upon exercise shall rank pari passu in all respects with the existing ordinary shares of the Company, all as set forth in the Company's articles of association as may be in effect from time to time. The Shares issued upon exercise shall be registered in the name of Mizrahi Tefahot Company for Registrations Ltd.

Issuance and Rights of Warrant Shares. The Warrant Shares shall be identical in their rights to the existing Ordinary Shares of the Company, all as set forth in the Company's articles of association, as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Notwithstanding anything to the contrary, as long as the Ordinary Shares are listed on the TASE and in accordance with the rules and guidelines of the TASE, this Warrant shall not be exercisable on the record date of distribution of bonus shares, offer by way of rights, distribution of a dividend, consolidation of capital, splitting of capital or reduction of capital (each of the aforesaid hereinafter referred to as a "**Company Event**"). In addition, if the ex-day of a Company Event occurs prior to the record date of such Company Event, this Warrant shall not be exercisable on the ex-day as aforesaid.

3. <u>COVENANTS AS TO WARRANT SHARES.</u>

The Warrant Shares (and any transfer thereof) are subject to the blocking/lock-up provisions under Section 15 of the Israeli Securities Law, 5728-1968, and the Securities Regulations (Details with regard to Sections 15A to 15C of the Law), 5760-2000.

4. <u>TRANSFER.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 This Warrant may not be transferred, in whole or in part, and is not tradable, and shall not be listed for trading on the TASE or any other exchange; provided, however, that the Holder may transfer this Warrant, in whole or in part, with the prior written consent of the Company , other than to a Permitted Transferee of the Holder. Any transfer permitted (including to Permitted Transferee) under this Section 4.1 shall be (i) subject to and effected in compliance with all applicable securities laws and regulations (including the Israeli Securities Law and the Securities Regulations (Details with regard to Sections 15A to 15C of the Law), 5760-2000), (ii) subject to the transferee's written agreement to be bound by all of the terms and conditions of this Warrant.

"Permitted Transferee" means (a) if the Holder is an individual: (i) any first-degree family member of such Holder; (ii) any corporation, partnership, limited liability company or other legal entity wholly owned by such Holder, whether alone or jointly with any of such Holder's first-degree family members, provided that such Holder retains control of such entity; (iii) any trust or fund wholly owned by such Holder, whether alone or jointly with any of such Holder's first-degree family members, provided that such Holder retains the majority of the beneficial interests therein or is the sole beneficiary thereof; and (iv) upon the death of such Holder, any legal heir of such Holder; and (b) if the Holder is a corporation or other entity: (i) any person or entity that wholly owns the Holder; (ii) any corporation or other entity wholly owned by the Holder; and (iii) any corporation or other entity wholly owned by any person or entity that wholly owns the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The Company will maintain a register containing the names and addresses of the Holder(s) of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Holder of this Warrant as the absolute owner hereof for all purposes. Any Holder may change such Holder's address as shown on the warrant register by written notice to the Company requesting such change.

5. <u>NO IMPAIRMENT.</u>

The Company will not, by amendment of its charter documents or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, sale of assets, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder, or impair the economic interest of the Holder, but will at all times in good faith assist in the carrying out of all the provisions hereof and in taking of all such actions and making all such adjustments as may be reasonably necessary or appropriate in order to protect the rights and the economic interests of the Holder against impairment.

6. <u>TERMINATION.</u>

This Warrant and the right to purchase securities upon exercise hereof shall terminate at 5:00 p.m. Israel Time at the end of the Exercise Period.

7. <u>RESERVATION OF SHARES.</u>

The Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such Warrant Shares.

8. <u>REPLACEMENT OF WARRANTS.</u>

Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement reasonably satisfactory to the Company and a lost of Warrant affidavit, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor, dated as of the date hereof. This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its share transfer agent, if any, for other warrants of different denominations entitling the holders thereof to purchase in the aggregate the same number of Warrant Shares purchasable hereunder.

9. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Further Assurances</u>. Each of the parties hereto shall perform such further acts and execute such further documents as may reasonably be necessary to carry out and give full effect to the provisions of this Warrant and the intentions of the parties as reflected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Entire Agreement</u>. This Warrant constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and supersede all prior agreements and understandings, both written and oral, among any of the parties hereto, with respect to the subject matter hereof (with no concession being made as to the existence of any such prior agreements or understandings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Amendment; Waiver.</u> Any term of this Warrant may be amended only with the written consent of the Company, and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Governing Law; Jurisdiction</u>. This Warrant shall be governed by and construed in accordance with to the laws of the State of Israel, disregarding its conflict of laws rules. Any dispute arising under or in relation to this Warrant shall be resolved exclusively in the competent court located in Tel Aviv-Jaffa, Israel and each of the parties hereby irrevocably submits to the exclusive jurisdiction of such court. Each of the parties hereto (i) consents to submit itself to the exclusive jurisdiction of the abovementioned courts in the event any dispute arises out of this Warrant or the transactions contemplated by this Warrant, (ii) agrees that it shall not attempt to deny or defeat such jurisdiction by motion or other request for leave from the abovementioned court, (iii) agrees that it shall not bring any action relating to this Warrant or the transactions contemplated by this Warrant in any court other than the abovementioned court, and (iv) irrevocably consents to service of process in the manner provided by Section 9.5 or as otherwise provided by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Notices</u>. All notices and other communications given or made pursuant to this Warrant shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (i) when delivered, if sent by personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile (with electronic confirmation of delivery) on a business day and during normal business hours of the recipient, and otherwise on the first business day in the place of the recipient; (iii) five (5) business days after having been sent, if sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after deposit with an internationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written confirmation of receipt. All communications shall be sent to the respective parties at their address or contact details as set forth below, or to such address or contact details as subsequently modified by written notice given in accordance with this Section 9.59.5.

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| | |
|:---|:---|
| If to the Company: | Gix Internet Ltd. |
|  | 2 Jabotinsky St, Atrium Tower, 18th floor |
|  | Ramat Gan, Israel 5252903 |
|  | Israel |
|  | Attention: Amihay Hadad, CFO |
|  | Telephone: 972+53-6666611 |
|  | Facsimile: 972+09-7741534 |
|  | E-mail: amihay@gix-internet.com |
| If to the Holder: | to the address set forth on the signature page |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Delays or Omissions</u>. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party to this Warrant upon any breach or default of any other party under this Warrant, shall impair any such right, power or remedy of such non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Warrant, or any waiver on the part of any party of any provisions or conditions of this Warrant, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Warrant or by law or otherwise afforded to any party to this Warrant, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Severability</u>. If one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Agreement shall be enforceable in accordance with its terms and interpreted so as to give effect, to the fullest extent consistent with and permitted by applicable law, to the meaning and intention of the excluded provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Counterparts</u>. This Warrant may be executed in one or more counterparts, all of which together shall constitute one and the same instrument, binding and enforceable against the parties so executing the same; it being understood that all parties need not sign the same counterpart. Counterparts may also be delivered by facsimile or email transmission (in pdf format or the like, or signed with docusign, e-sign or any similar form of signature by electronic means) and any counterpart so delivered shall be sufficient to bind the parties to this Warrant, as an original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>No Rights as Shareholder</u>. Except as set forth herein, the Holder shall not have any rights as a shareholder of the Company with regard to the Warrant Shares prior to the exercise of this Warrant, and then solely with respect to such Warrant Shares which have been purchased upon such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>No Fractional Interest</u>. No fractional shares will be issued in connection with any exercise hereunder, but in lieu of such fractional shares that would otherwise be issuable, the number of shares shall be rounded up to the nearest whole number.

- *Signature page follows* -

This **WARRANT TO PURCHASE ORDINARY SHARES OF** Gix Internet Ltd is executed as of the date first set forth above.

---

| | |
|:---|:---|
| Gix Internet Ltd | Gix Internet Ltd |
| By: |  |
| Name: | Amihay Hadad |
| Title: | CFO |
|  | Acknowledged and Agreed to: |
| HOLDER | HOLDER |
| By: |  |
| Name: |  |
| Title: |  |
| Address: |  |
| Fax: |  |
| E-mail: |  |

---

**NOTICE OF EXERCISE**

**To:** Gix Internet Ltd

**Date: [ ]**

The undersigned, pursuant to the provisions set forth in the attached **WARRANT TO PURCHASE ORDINARY SHARES OF** Gix Internet Ltd, hereby irrevocably elects to purchase [ ] Warrant Shares covered by such Warrant and herewith makes payment of , representing the full purchase price for such shares at the price per share provided for in such Warrant (as adjusted from time to time pursuant to the terms of this Warrant).

Please issue the Warrant Shares to the following securities account: Bank:

Branch:

Account no.:

In the name of (if not the undersigned):

If the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant shall be registered in the name of the undersigned or as otherwise indicated below and delivered to the address stated below:

---

| | |
|:---|:---|
| Name: |  |
| Address: |  |
| ID or Social Security No.: |  |
| (Date) | (Print Name) |
|  | (Signature) |

---

## Exhibit 8.1

**Exhibit 8.1**

**LIST OF SUBSIDIARIES**

---

| | |
|:---|:---|
| **Company Name** | **Jurisdiction of Incorporation** |
| Deliverz.ai Ltd. <sup>(1)</sup> | Israel |

---

(1) Deliverz.ai
 Ltd. is a wholly-owned subsidiary of Gix Internet Ltd.

## Exhibit 15.1

**Exhibit 15.1**

![](ex15-1_001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Registration Statement on Form 20-F of our reports dated May 21, 2026, relating to the financial statements of Gix Internet Ltd. (the "Company"). We also consent to the reference to us under the heading "Statement by Experts" in this Registration Statement.

**/s/ Brightman Almagor Zohar & Co.**

**Certified Public Accountants**

**A Firm in the Deloitte Global Network**

Tel Aviv, Israel

June 18, 2026

## Exhibit 15.2

**Exhibit 15.2**

![](ex15-2_001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Registration Statement on Form 20-F of our report dated January 16, 2026, relating to the financial statements of Deliverz.ai Ltd. for the year ended December 31, 2025.

---

| |
|:---|
| /s/ Brightman Almagor Zohar & Co. |
| Certified Public Accountants |
| A Firm in the Deloitte Global Network |

---

Tel Aviv, Israel

June 18, 2026

## Exhibit 15.3

**Exhibit 15.3**

![](ex15-3_001.jpg)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Registration Statement on Form 20-F of our report dated March 27, 2026, relating to the financial statements of Quantum X Labs Inc. (f/k/a/ Viewbix Inc.) for the year ended December 31, 2025.

---

| |
|:---|
| /s/ Brightman Almagor Zohar & Co. |
| Certified Public Accountants |
| A Firm in the Deloitte Global Network |

---

Tel Aviv, Israel

June 18, 2026