# EDGAR Filing Document

**Accession Number:** 0002064764
**File Stem:** 0001493152-25-029398
**Filing Date:** 2025-12
**Character Count:** 1284422
**Document Hash:** 6193bd0987c298af706dc0ba4907da0d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-25-029398.hdr.sgml**: 20251229

**ACCESSION NUMBER**: 0001493152-25-029398

**CONFORMED SUBMISSION TYPE**: 20FR12B

**PUBLIC DOCUMENT COUNT**: 25

**FILED AS OF DATE**: 20251229

**DATE AS OF CHANGE**: 20251229

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pulsenmore Ltd.
- **CENTRAL INDEX KEY:** 0002064764
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20FR12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43033
- **FILM NUMBER:** 251609728

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** OMARIM 8, OMER
- **CITY:** ISRAEL
- **NON US STATE TERRITORY:** ISRAEL
- **PROVINCE COUNTRY:** L3
- **ZIP:** 8496500
- **BUSINESS PHONE:** 972 52 606 2075

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** OMARIM 8, OMER
- **CITY:** ISRAEL
- **NON US STATE TERRITORY:** ISRAEL
- **PROVINCE COUNTRY:** L3
- **ZIP:** 8496500

**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.: 377-07998

**Pulsenmore Ltd.**

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

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

---

| | |
|:---|:---|
| **State of Israel** | **Omarim St. 8, Omer, Israel** |
| *(Jurisdiction of incorporation or organization)* | *(Address of principal executive offices)* |

---

**Dr. Elazar Sonnenschein**

**Chief Executive Officer** 

**8 Omarim St.** 

**Omer, Israel** 

**Tel: +972-526062075**

**Fax: +972 8 690 0466**

*(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**<br> **each class is to be registered** |
| Ordinary shares, par value NIS<br> 0.00032 per share | PLSM | 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 common stock as of December 28, 2025: 6,502,844 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<br> Standards as issued by the 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](#a_001) | [PRESENTATION OF FINANCIAL AND OTHER INFORMATION](#a_001) | 1 |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_002) | [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_002) | 2 |
| [PART I](#a_003) |  | 3 |
| ITEM 1. | [IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](#a_004) | 3 |
| ITEM 2. | [OFFER STATISTICS AND EXPECTED TIMETABLE](#a_005) | 3 |
| ITEM 3. | [KEY INFORMATION](#a_006) | 3 |
| A. | [\[Reserved\]](#a_007) | 3 |
| B. | [Capitalization and Indebtedness](#a_008) | 3 |
| C. | [Reasons for the Offer and Use of Proceeds](#a_009) | 3 |
| D. | [Risk Factors](#a_010) | 4 |
| ITEM 4. | [INFORMATION ON THE COMPANY](#a_011) | 34 |
| A. | [History and Development of the Company](#a_012) | 34 |
| B. | [Business Overview](#a_013) | 34 |
| C. | [Organizational Structure](#a_014) | 59 |
| D. | [Property, Plants and Equipment](#a_015) | 59 |
| ITEM 4A. | [UNRESOLVED STAFF COMMENTS](#a_016) | 59 |
| ITEM 5. | [OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#a_017) | 60 |
| A. | [Operating Results](#t_002) | 60 |
| B. | [Liquidity and Capital Resources](#a_018) | 64 |
| C. | [Research and Development, Patents and Licenses](#lpa_001) | 67 |
| D. | [Trend Information](#lpa_002) | 67 |
| E. | [Critical Accounting Estimates](#a_019) | 67 |
| ITEM 6. | [DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#a_020) | 69 |
| A. | [Directors and Senior Management](#a_021) | 69 |
| B. | [Compensation](#a_022) | 71 |
| C. | [Board Practices](#a_023) | 74 |
| D. | [Employees](#a_024) | 87 |
| E. | [Share Ownership](#a_025) | 87 |
| ITEM 7. | [MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#a_026) | 88 |
| A. | [Major Shareholders](#a_027) | 88 |
| B. | [Related Party Transactions](#a_028) | 90 |
| C. | [Interests of Experts and Counsel](#a_029) | 91 |
| ITEM 8. | [FINANCIAL INFORMATION](#a_030) | 91 |
| A. | [Consolidated Statements and Other Financial Information](#a_031) | 91 |
| B. | [Significant Changes](#a_032) | 91 |
| ITEM 9. | [THE OFFER AND LISTING](#a_033) | 91 |
| A. | [Offer and Listing Details](#a_034) | 91 |
| B. | [Plan of Distribution](#a_035) | 91 |
| C. | [Markets](#a_036) | 92 |
| D. | [Selling Shareholders](#a_037) | 92 |
| E. | [Dilution](#a_038) | 92 |
| F. | [Expenses of the Issue](#a_039) | 92 |

---

i

---

| | | |
|:---|:---|:---|
| ITEM 10. | [ADDITIONAL INFORMATION](#a_040) | 92 |
| A. | [Share Capital](#a_041) | 92 |
| B. | [Articles of Association](#a_042) | 92 |
| C. | [Material Contracts](#a_043) | 96 |
| D. | [Exchange Controls](#a_044) | 96 |
| E. | [Taxation](#a_045) | 96 |
| F. | [Dividends and Paying Agents](#a_046) | 106 |
| G. | [Statement by Experts](#a_047) | 106 |
| H. | [Documents on Display](#a_048) | 106 |
| I. | [Subsidiary Information](#a_049) | 107 |
| J. | [Annual Report to Security Holders](#a_050) | 107 |
| ITEM 11. | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#a_051) | 107 |
| ITEM 12. | [DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#a_052) | 107 |
| [PART II](#a_053) |  | 108 |
| ITEM 13. | [DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#a_054) | 108 |
| ITEM 14. | [MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#a_055) | 108 |
| ITEM 15. | [CONTROLS AND PROCEDURES](#a_056) | 108 |
| ITEM 16. | [\[RESERVED\]](#a_057) | 108 |
| ITEM 16A. | [AUDIT COMMITTEE FINANCIAL EXPERT](#a_058) | 108 |
| ITEM 16B. | [CODE OF ETHICS](#a_059) | 108 |
| ITEM 16C. | [PRINCIPAL ACCOUNTANT FEES AND SERVICES](#a_060) | 108 |
| ITEM 16D. | [EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#a_061) | 108 |
| ITEM 16E. | [PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#a_062) | 108 |
| ITEM 16F. | [CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT](#a_063) | 108 |
| ITEM 16G. | [CORPORATE GOVERNANCE](#a_064) | 108 |
| ITEM 16H. | [MINE SAFETY DISCLOSURE](#a_065) | 110 |
| ITEM 16I | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#a_066) | 110 |
| ITEM 16J | [INSIDER TRADING POLICIES](#a_067) | 110 |
| ITEM 16K | [CYBERSECURITY](#a_068) | 110 |
| [PART III](#a_069) |  | 111 |
| ITEM 17. | [FINANCIAL STATEMENTS](#a_070) | 111 |
| ITEM 18. | [FINANCIAL STATEMENTS](#a_071) | 111 |
| ITEM 19. | [EXHIBITS](#a_072) | 111 |
| [SIGNATURES](#a_073) | [SIGNATURES](#a_073) | 112 |

---

ii

**PRESENTATION OF FINANCIAL AND OTHER INFORMATION**

We were incorporated under the laws of the State of Israel in 2014. Our ordinary shares are listed on the Tel Aviv Stock Exchange, or TASE, under the symbol "PULS". We are filing this registration statement in anticipation of the listing of our ordinary shares on the Nasdaq Capital Market.

On December 28, 2025, we effected a one-for-eight (1-for-8) consolidation of our issued and outstanding ordinary shares, or the Reverse Split, and on such date, our ordinary shares began trading on a post-Reverse Split basis on the TASE. Unless the context expressly indicates otherwise, all references to shares and per share amounts referred to herein reflect the amounts after giving effect to the Reverse Split.

Unless the context otherwise requires, references in this registration statement to the "Company," "Pulsenmore," "we," "us," "our" and other similar designations refer to Pulsenmore Ltd.

**Financial Statements**

Our financial statements were prepared in accordance with International Financial Reporting Standards, or IFRS Accounting Standards, as issued by the International Accounting Standards Board. Our reporting currency and functional currency is the New Israeli Shekel. 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 derived from our financial statements or otherwise indicated, U.S. dollar translations of NIS amounts presented in this registration statement as of December 31, 2024, are translated using the rate of NIS 3.647 to US$1.00, the exchange rate reported by the Bank of Israel on December 31, 2024 and U.S. dollar translations of NIS amounts presented in this registration statement as of June 30, 2025, are translated using the rate of NIS 3.371 to US$1.00, the exchange rate reported by the Bank of Israel on September 3, 2025.

All references to "shares" in this Registration Statement refer to ordinary shares of Pulsenmore Ltd., par value NIS 0.00032 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."

**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 "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "target," "will," "would," 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.

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.

Important factors that could cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the factors summarized below:

● our lack of operating history;

● our current and future capital requirements and our belief that our existing cash will be sufficient to fund our operations for more than one year from the date that the financial statements are issued;

● our ability to manufacture, market and sell our products and to generate revenues;

● our ability to maintain our relationships with key partners and grow relationships with new partners;

● our ability to maintain or protect the validity of our U.S. and other patents and other intellectual property;

● our ability to launch and penetrate markets in new locations and new market segments;

● our ability to retain key executive members and hire additional personnel;

● our ability to maintain and expand intellectual property rights;

● interpretations of current laws and the passages of future laws;

● our ability to achieve greater regulatory compliance needed in existing and new markets;

● our ability to achieve key performance milestones in our planned operational testing;

● our ability to establish adequate sales, marketing and distribution channels;

● security, political and economic instability in the Middle East that could harm our business, including due to the current war between Israel and Hamas;

● 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.

These statements are only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may cause our or our industry's actual results, levels of activity, performance, or achievements to be materially different from those anticipated by the forward-looking statements. We discuss many of these risks in this registration statement in greater detail under the heading "Risk Factors" and elsewhere in this registration statement. You should not rely upon forward-looking statements as predictions of future events.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this registration statement.

**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 Shibolet & Co., located at 4 Yitzhak Sadeh St., Tel Aviv.

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

Kesselman & Kesselman, Certified Public Accountants (Isr.), a member of PricewaterhouseCoopers International Limited. 146 Derech Menachem Begin St. Tel-Aviv 6492103, 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 June 30, 2025, 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 June 30, 2025** | **As of June 30, 2025** |
|  | NIS | USD |
|  | (in thousands) | (in thousands) |
| **Equity:** |  |  |
| Ordinary shares | 2 | 1 |
| Share premium | 253956 | 75336 |
| Capital reserve | 10995 | 3262 |
| <u>Accumulated deficit</u> | (190445) | (56495) |
| Total capitalization | 74508 | 22104 |

---

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

Not applicable.

**D. Risk Factors**

 

*You should carefully consider the risks described below, together with all of the other information in this registration statement. If any of these risks actually occurs, our business and financial condition could suffer and the price of our ordinary shares could decline.*

**Risk Factors Summary**

Investing in our ordinary shares and our ability to successfully operate our business and execute our growth plan each are subject to numerous and substantial risks. You should carefully consider the risks described in the risk factors below before deciding to invest in our ordinary shares. If any of these risks actually occurs, our business, financial condition or results of operations could be materially and adversely affected. In such case, the trading price of our ordinary shares would likely decline, and you may lose all or part of your investment. The following is a summary of some of the principal risks we face:

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

 

● We have a limited operating history on which to assess the prospects for our business, we have generated limited revenue from sales of our products, and we have incurred losses since inception.

● We have incurred significant losses since inception. As such, you cannot rely upon our historical operating performance to make an investment decision about us.

● We may need to raise additional funding to expand the commercialization of our products and services and to expand our R&D efforts.

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

 ****

● Our success depends upon regulatory approval and market acceptance of our products and services, our ability to develop and commercialize existing and new products and services and generate revenues, and our ability to identify and penetrate new markets for our technology.

● Medical device development is costly and involves continual technological change, which may render our current or future products obsolete.

● We will be dependent upon the success of our growth strategy and marketing and distribution strategies.

● Our business strategy is dependent in part on an agreement with a strategic partner with whom we are negotiating the fulfilment of the terms of the agreement.

● Our research and development efforts may not succeed in developing commercially successful products and technologies, which could adversely affect our business.

● We expect to generate an increasing portion of our revenue from international markets in the future and may become subject to various additional risks relating to our international activities, which could adversely affect our business, operating results and financial condition.

● We are currently highly dependent on Clalit Health Services for the continued sale of our Pulsenmore ES device and for the potential purchase of Pulsenmore FC devices in the future.

● We have limited experience in marketing and selling our products and related services, and if we are unable to successfully commercialize our products and related services, our business and operating results will be adversely affected.

● We rely on subcontractors for the assembly of our finished products.

● We rely on limited or sole suppliers for some of the materials and components used in our products, and we may not be able to find replacements or immediately transition to alternative suppliers.

● We incorporate artificial intelligence, or AI, and machine learning, or ML, into some of our products. This technology is new and developing and may present both compliance and reputational risks.

● We operate in highly competitive markets, competition may increase in the future, and our industry may be further disrupted.

● International expansion of our business exposes us to business, regulatory, political, operational, financial and economic risks associated with doing business outside of the United States or Israel.

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

 ****

● We are subject to extensive government regulation, which could restrict the development, marketing, sale and distribution of our products and could cause us to incur significant costs.

● Our current or future products may be subject to product recalls even after receiving FDA and comparable foreign regulatory authorities clearance or approval.

● We may be subject to enforcement action if we engage in improper or off-label marketing or promotion of our products, including fines, penalties and injunctions.

● Increased cybersecurity requirements, vulnerabilities, threats, and more sophisticated and targeted computer crimes pose a risk to our systems, networks, products, solutions, services, and data, as well as our reputation, which could adversely affect our business.

● Healthcare industry cost-containment measures could result in reduced sales of our products and services.

***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.

***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, including the October 7, 2023 attack by Hamas and other terrorist organizations from the Gaza Strip and Israel's war against them since then as well as military actions against Hezbollah, the Houthi movement and Iranian-backed militias in Syria.

● 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.

● Your rights and responsibilities as a shareholder 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.

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

 ****

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

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

● If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating results, our ability to operate our business and investors' views of us.

● 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.

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

***We have a limited operating history on which to assess the prospects for our business, we have generated limited revenue from sales of our products, and we have incurred losses since inception.***

Since inception, we have devoted substantially all of our financial resources to develop our products and related services. We have financed our operations primarily through the issuance of equity and partially from the Israel Innovation Authority, or IIA and Korea Israel Industrial, or KORIL, grants. We have generated limited revenue from the sale of our products and services to date and have incurred significant losses. The amount of our future net losses will depend, in part, on sales and on-going development of our products and related services, the rate of our future expenditures and our ability to obtain funding through the issuance of our securities to cover our operating activity, strategic collaborations or grants. We expect to continue to incur significant losses for at least the next several years as we continue to commercialize our existing products and services and seek to develop and commercialize new products and services.

Our ability to generate future revenue from product and service sales depends heavily on our success in many areas, including, but not limited to:

● launching and commercializing current and future products and services, either directly or in conjunction with one or more collaborators or distributors;

● obtaining and maintaining marketing authorization with respect to each of our products and maintaining regulatory compliance throughout relevant jurisdictions;

● maintaining clinical and economical value for end-users and customers in changing environments;

● addressing any competing technological and market developments;

● negotiating favorable terms in any collaboration, licensing or other arrangements into which we may enter;

● establishing and maintaining distribution relationships with third parties that can provide adequate (in amount and quality) infrastructure to support market demand for our products; and

● maintaining, protecting and expanding our portfolio of intellectual property rights, including patents, trade secrets and know-how.

***We have incurred significant losses since inception. As such, you cannot rely upon our historical operating performance to make an investment decision about us.***

Since our inception, we have engaged in research and development, or R&D, activities and launched our first products, Pulsenmore ES and Pulsenmore FC in 2020 and 2022, respectively. Since commercialization of the Pulsenmore ES and Pulsenmore FC, we also engaged in the continued development of the Pulsenmore MC and the Pulsenmore ES-assisted service for performing biophysical profile tests, or BPP for high-risk pregnancy patients. We have financed our operations primarily through the issuance of equity securities and partially from IIA and KORIL grants. We have incurred net losses of NIS 36.7 million (approximately $10.1 million), NIS 58.6 million (approximately $16.1 million), and NIS 22.1 million (approximately $6.1 million) in the years ended December 31, 2024, 2023, and 2022, respectively, and NIS 23.2 million (approximately $6.9 million) and NIS 15.9 million (approximately $4.7 million) for the six months ended June 30, 2025 and 2024, respectively. Our accumulated deficit as of December 31, 2024 and June 30, 2025 was NIS 167.3 million (approximately $45.8 million) and NIS 190.4 million (approximately $56.5 million), respectively. We do not know whether or when we will become profitable. Our ability to generate revenue and achieve profitability depends upon our ability to accelerate the commercialization of our products and service offerings in line with the demand from current and future customers and our aggressive growth strategy. We may be unable to achieve any or all of these goals.

***We may need to raise additional funding to expand the commercialization of our products and services and to expand our R&D efforts. This additional financing may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our product commercialization or development efforts or other operations.***

Our operations have consumed substantial amounts of cash since inception. We expect to expend substantial additional amounts to commercialize our products and services and to develop new products and services. We will require additional capital to expand the commercialization of our existing products and services and to develop new products and services. In addition, our operating plans may change as a result of many factors that may currently be unknown to us, and we may need to seek additional funds sooner than planned.

We cannot guarantee that future financing will be available in sufficient amounts or on terms acceptable to us, if at all. Moreover, the terms of any future financing may adversely affect the holdings or the rights of our stockholders and the issuance of additional securities, whether equity or debt, by the Company, or the possibility of such issuance, may cause the market price of our common stock to decline. The incurrence of indebtedness could result in increased fixed payment obligations, and we may be required to agree to certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business. We could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than otherwise would be desirable, and we may be required to relinquish rights to some of our technologies or products or otherwise agree to terms that are unfavorable to us, any of which may have a material adverse effect on our business, operating results and prospects. In addition, raising additional capital through the issuance of equity or convertible debt securities would cause dilution to holders of our equity securities, and may affect the rights of then-existing holders of our equity securities. Even if we believe that we have sufficient funds for our current or future operating plans, we may seek additional capital if market conditions are favorable or if we have specific strategic considerations.

**Risks Related to Our Business and Operations**

***Our success depends upon regulatory approval and market acceptance of our products and services, our ability to develop and commercialize existing and new products and services and generate revenues, and our ability to identify and penetrate new markets for our technology.***

We have developed, and we are engaged in the research, development, manufacture, marketing, and sale of ultrasound imaging solutions using our home ultrasound technology. We are commercializing our Pulsenmore ES ultrasound imaging device which is approved for use in several key markets including the United States, Europe, Switzerland, Australia, Brazil, Colombia and Israel while our Pulsenmore FC ultrasound imaging device is at an early stage of commercialization in Israel where it is approved for use. As we are in the early stages of commercialization of the Pulsenmore FC device in Israel, we plan to gain more real-world experience with the Pulsenmore FC before submitting for approval in the United States and other territories. Our success will depend on the receipt of and maintenance of regulatory approvals and acceptance of our products and services in the U.S. and international healthcare markets, including across Europe, Australia, South America and Japan. Even after receiving regulatory clearance, we are faced with the risk that the marketplace will not be receptive to our products and services over competing products, including traditional cart-based ultrasound devices used in hospitals, imaging centers and physicians' offices, and that we will be unable to compete effectively. Factors that could affect our ability to successfully commercialize our current products and services and to commercialize any potential future products and services include challenges of developing (or acquiring externally developed) technology solutions that are adequate and competitive in meeting the requirements of next-generation design challenges and dependence upon physicians' and other healthcare practitioners' acceptance of our products.

We cannot assure investors that our current products and services or any future products and services will gain broad market acceptance particularly in the United States where we recently received FDA approval. If the market for our current products and services or any future products and services fails to develop or develops more slowly than expected, or if any of the services and standards supported by us do not achieve or sustain market acceptance, our business and operating results would be materially and adversely affected.

***Medical device development is costly and involves continual technological change, which may render our current or future products obsolete.***

The market for point-of-care medical devices, which includes home-use ultrasound solutions, is characterized by rapid technological change, medical advances and evolving industry standards. Any one of these factors could reduce the demand for our devices or services or require substantial resources and expenditures for research, design and development to avoid technological or market obsolescence.

Our success will depend on our ability to enhance our current technology, services and systems and develop or acquire and market new technologies to keep pace with technological developments and evolving industry standards, while responding to changes in customer needs. A failure to adequately develop or acquire device enhancements or new devices that will address changing technologies and customer requirements adequately, or to introduce such devices on a timely basis, may have a material adverse effect on our business, financial condition and results of operations.

We might have insufficient financial resources to improve existing devices, advance technologies and develop new devices at competitive prices. Technological advances by one or more competitors or future entrants into the field may result in our current devices becoming non-competitive or obsolete, which may decrease revenues and profits and adversely affect our business and results of operations.

We may encounter significant competition across our existing and future planned products and services and in each market in which we sell or plan to sell our products and services from various companies, many of which have greater financial and marketing resources than we do. Our primary competitors include the top five manufacturers of legacy cart-based incumbent ultrasound devices.

In addition, many of our competitors are well-established manufacturers with significant resources and may engage in aggressive marketing tactics. Competitors may also possess the ability to commercialize additional lines of products, bundle products or offer higher discounts and incentives to customers in order to gain a competitive advantage. If the prices of competing products are lowered as a result, we may not be able to compete effectively.

***We will be dependent upon the success of our growth strategy and marketing and distribution strategies.***

Our business is dependent upon the success of our growth strategy and marketing and distribution strategies. Our growth strategy to increase market penetration directly relies on our distribution strategy, and our marketing efforts are focused on developing a strong reputation with healthcare providers and increasing awareness of our products and services. If we fail to maintain a high quality of service or a high quality of device technology, we may fail to retain existing users or add new users. If we do not successfully continue our sales efforts and promotional activities, particularly to health systems and large institutions, or if existing users decrease their level of engagement, our revenue, financial results and business may be significantly harmed. Our future success depends upon continued expansion of our commercial operations, as well as entering additional markets, including the United States, Europe, Australia, South America and Japan, to commercialize our products and services. We believe that our growth will depend on the further development and commercialization of our current products and services, and marketing authorization of our future products and services. If we fail to expand the use of our products and services in a timely manner, we may not be able to expand our market share or to grow our revenue. Our financial performance will be substantially dictated by our success in adding, retaining and engaging active users of our products. If customers do not perceive our products or services to be useful, reliable and trustworthy, we may not be able to attract or retain customers or otherwise maintain or increase the frequency and duration of their engagement. As our business model is predicated on both hardware and software sales, there is risk that any decline in software renewal rates will adversely impact our business. A decrease in customer retention, growth or engagement with our products and services may have a material adverse impact on our revenue, business, financial condition and results of operations.

Any number of factors could negatively affect customer retention, growth and engagement, including:

● development of attractive and competitive portable ultrasound imaging solutions;

● customers increasingly engaging with competing products;

● failure to introduce new and improved products and services;

● inability to continue to develop products for mobile devices that customers find engaging, that work with a variety of mobile operating systems and networks and that achieve a high level of market acceptance;

● changes in customer sentiment about the quality or usefulness of our products and services or concerns related to privacy and data sharing, safety, security or other factors;

● inability to manage and prioritize information to ensure customers are presented with content that is engaging, useful and relevant to them;

● adverse changes in our products that are mandated by legislation or regulatory agencies, both in the United States and internationally; or

● technical or other problems preventing us from delivering products or services in a rapid and reliable manner or otherwise affecting the user experience.

***Our research and development efforts may not succeed in developing commercially successful products and technologies, which could adversely affect our business.***

Our products utilize application-dependent chips, or ASIC, dedicated digital processors for the transmission and reception of portable ultrasound imaging which has the potential to allow us to monitor patients in various care settings due to its portability and cost. We expect our development path will be directed at accessing and optimizing our technology for use in various care settings, potentially including home scanning and or wearable patient technology, subject to appropriate regulatory authorization. We face risks associated with launching such new products. If we encounter development or manufacturing challenges or discover errors during our product development cycle, the product launch dates of new products may be delayed, which will cause delays in our ability to achieve our forecasted results. The expenses or losses associated with unsuccessful product development or launch activities or lack of market acceptance of our new products could have a material adverse effect on our business or financial condition.

***We expect to generate an increasing portion of our revenue from international markets in the future and may become subject to various additional risks relating to our international activities, which could adversely affect our business, operating results and financial condition.***

During the years ended December 31, 2024, 2023, and 2022, approximately 93.9%, 96.1%, and 52.8%, respectively, of our product and service revenue was generated from customers located inside Israel. During the six months ended June 30, 2025 and 2024, approximately 96.9% and 91.1%, respectively, of our product and service revenue was generated from customers located inside Israel. We believe that a substantial percentage of our future revenue will come from international sales, specifically from the United States, as we expand our sales and marketing opportunities into international markets.

A disruption in our relationships with these customers may adversely affect our results of operations. The customers' demand for our products may fluctuate due to factors beyond our control. Any significant reduction in orders from these customers 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.

We have limited experience of operating internationally, and engaging in international business involves a number of difficulties and risks, including:

● required compliance with foreign regulatory requirements and laws, including regulations and laws relating to patient data and medical devices;

● trade relations among the United States and those foreign countries in which our current or future customers, distributors, manufacturers and suppliers have operations, including protectionist measures such as tariffs and import or export licensing requirements, whether imposed by the United States or such foreign countries, in particular the strained trade relations between United States and China since 2018;

● difficulties protecting, procuring or enforcing intellectual property rights internationally;

● required compliance with anti-bribery laws, such as the FCPA and the UK Bribery Act of 2010, data privacy requirements, labor laws and anti-competition regulations;

● laws regulating the confidentiality of sensitive personal information and the circumstances under which such information may be released and/or collected;

● longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal systems;

● political and economic instability and war or other military conflict, including the ongoing conflict occurring in Ukraine, which could have a material adverse impact on our sales in Europe and elsewhere; and

 potentially adverse tax consequences, tariffs, customs charges, bureaucratic requirements and other trade barriers.

If we dedicate significant resources to our international operations and are unable to manage these risks effectively, our business, operating results and financial condition may be adversely affected.

***We are currently highly dependent on Clalit Health Services for the continued sale of our Pulsenmore ES device and for the purchase of additional Pulsenmore FC devices in the future.***

Our revenue is currently highly concentrated with one customer, Clalit Health Services, or Clalit, the largest health service organization (HMO) in Israel. Given Clalit's significance to our business, in the near term our financial performance is substantially dependent on its continued demand, performance of its contractual obligations and the satisfaction of certain conditions precedent under one of our agreements with Clalit. Any failure to meet contractual obligations, non-renewal, non-extension, early termination or modification of existing agreements, non-fulfillment of any conditions precedent, or any reduction in orders, changes in procurement policies, operational disruptions, or broader industry downturns affecting Clalit, would have a material adverse effect on our business, operating results and financial condition.

***If we are unable to attract, recruit, train, retain, motivate and integrate key personnel, we may not achieve our goals.***

There is substantial competition for key personnel, senior management, and qualified employees in the healthcare industry, and we may face increased competition for such a highly qualified scientific, technical, clinical, and management workforce in a highly competitive environment. While the increased availability of flexible, hybrid, or work-from-home arrangements has afforded us the ability to attract and retain talent from geographies remote from our physical offices, it has also expanded competition by allowing qualified employees within those same regions to pursue job opportunities throughout the country without the need to relocate. To help attract, retain, and motivate qualified employees in senior roles, we use equity-based awards and performance-based cash incentive awards. Sustained declines in our stock price, or lower stock price performance relative to competitors, can reduce the retention value of our equity-based awards, which can impact the competitiveness of our compensation. There can be no assurance that we will be successful in retaining existing personnel or recruiting new personnel.

From time to time, our efforts to attract, recruit, train, retain, integrate and motivate key personnel may also subject us to litigation or other legal proceedings that may adversely affect our business. These legal proceedings may involve claims brought by current or former employees, government agencies or others, through private actions, class actions, administrative proceedings or other litigation. These legal proceedings may involve allegations of illegal, unfair or inconsistent employment practices, including wage and hour, discrimination, harassment, wrongful termination, retaliation, violations of law or other concerns. Even if the allegations against us are unfounded or we ultimately are not held liable, we may experience related negative publicity resulting in damage to our reputation. Further, the costs to defend ourselves may be significant and the litigation may subject us to substantial settlements, fines, penalties or judgments against us and may consume management's bandwidth and attention, some or all of which may negatively impact our financial condition and results of operations.

Having diverse representation and an inclusive workplace can also impact our ability to attract and retain talent and is an important driver of our ability to compete and innovate. As such, our ability to attract and retain diverse talent can impact our corporate reputation and have adverse consequences to our business.

The loss of one or more key employees, our inability to attract or develop additional qualified employees and any delay in hiring key personnel could have a material adverse effect on our business results, cash flows, financial condition, or prospects.

***We have limited experience in marketing and selling our products and related services, and if we are unable to successfully commercialize our products and related services, our business and operating results will be adversely affected.***

We have limited experience marketing and selling our products and related services. We currently sell our products to Israel's largest health maintenance organization (HMO), as well as to hospitals/clinics (both in Israel and outside of Israel). Future sales of our products will depend in large part on our ability to effectively market and sell our products and services, successfully manage and expand our sales force, and increase the scope of our marketing efforts. We may also enter into additional distribution arrangements in the future. Because we have limited experience in marketing and selling our products, our ability to forecast demand, the infrastructure required to support such demand and the sales cycle to customers is unproven. If we do not build an efficient and effective marketing and sales force, our business and operating results will be adversely affected.

***We rely on subcontractors for the assembly of our finished products.***

We rely on a few subcontractors to manufacture our products while maintaining control over the overall production and assembly process. These manufacturing subcontractors provide us with partially assembled products. If such subcontractors fail to fulfill their obligations under the existing contractual arrangements with us or do not perform satisfactorily or if we fail to meet our obligations to the subcontractor and consequently it becomes necessary to utilize a different subcontractor, our ability to source our devices could be affected as the production may be delayed. In the event it becomes necessary to utilize a different subcontractor for our component products, we would experience additional costs, delays and difficulties in obtaining such components as a result of identifying and entering into an agreement with a new subcontractor as well as preparing such new subcontractor to meet the logistical requirements associated with manufacturing our devices, and our business would suffer.

***We may experience pricing pressures from contract suppliers or subcontractors on which we rely.***

Our suppliers may try to raise prices in the future, which we may not be able to offset through manufacturing efficiencies or pricing actions. Such pricing pressures could increase our costs and force us to increase the prices of our products if we are unable to enter into alternative arrangements with other suppliers or subcontractors, potentially leading to decreased customer demand.

***We may experience manufacturing problems or delays that could limit the growth of our revenue or increase our losses.***

We may encounter unforeseen situations that would result in delays or shortfalls in our production as well as delays or shortfalls caused by our outsourced manufacturing suppliers and by other third-party suppliers who manufacture components for our products. The FDA (and comparable foreign regulatory authorities) has comprehensive and prescriptive guidelines for medical device component manufacturers, requiring these manufacturers to establish and maintain processes and procedures to adequately control environmental conditions that could adversely affect product quality and impact patient safety. Clean room standards are an example of these requirements. Failure of component manufacturers or other third-party suppliers to comply with applicable standards could delay the production of our products. If we are unable to keep up with demand for our products, our revenue could be impaired, market acceptance for our products could be adversely affected and our customers might instead purchase our competitors' products. Our inability to successfully manufacture our products would have a material adverse effect on our operating results.

***We rely on limited or sole suppliers for some of the materials and components used in our products, and we may not be able to find replacements or immediately transition to alternative suppliers, which could have a material adverse effect on our business, financial condition, results of operations and reputation.***

We rely on limited or sole suppliers for certain materials and components that are used in our products. While we periodically forecast our needs for such materials and enter into standard purchase orders with them, we do not have long-term contracts with some of these suppliers. If we were to lose such suppliers, or if such suppliers were unable to fulfill our orders or to meet our manufacturing specifications, there can be no assurance that we will be able to identify or enter into agreements with alternative suppliers on a timely basis or on acceptable terms, if at all. If we are able to find an alternative supplier, such alternative supplier would need to be qualified and may require additional regulatory inspection or approval, which could result in further delay and more expenses.

An interruption in our operations could occur if we encounter delays or difficulties in securing these materials and components, or if the quality of the materials and components supplied do not meet our requirements, or if we cannot then obtain an acceptable substitute. The time and effort required to qualify a new supplier and ensure that the new materials and components provide the same or better quality results could result in significant additional costs. Any such interruption could significantly affect our business, financial condition, results of operations and reputation. To mitigate this risk, we typically carry significant inventory of critical components. While we believe that our level of inventory is currently sufficient for us to continue the manufacturing of our products without a disruption to our business if we must replace one of our suppliers, there can be no assurance that we can maintain this level of inventory in the future.

***If we do not successfully optimize and operate our sales and distribution channels or we do not effectively expand and update infrastructure, our operating results and customer experience may be negatively impacted.***

We must continue to optimize our sales and marketing organization and enter into partnerships or other arrangements to market and sell our products and/or collaborate with third parties, including distributors and others, to market and sell our products to maintain our commercial success and to achieve commercial success for any of our future products. Developing and managing a direct sales organization is a difficult, expensive and time-consuming process. If we are unable to establish and maintain adequate sales, marketing and distribution capabilities, independently or with others, our future revenue may be reduced and our business may be harmed.

***If we are unable to continue the development of an adequate sales and marketing organization and/or if our partner-directed sales organization is not successful, we may have difficulty achieving market awareness and selling our products in the future.***

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We must continue to develop and grow our sales and marketing organization. This includes using marketing efforts to attract future partnerships or other arrangements to market and sell our products and/or collaborate with third parties, including distributors and others, to market and sell our products to maintain our commercial success and to achieve commercial success for any of our future products. Developing and managing a direct sales organization is a difficult, expensive and time-consuming process. We focus on partner-directed sales organization and focus on establishing strategic partnerships that assist with facilitating our product distribution.

To continue to develop our sales and marketing organization to successfully achieve market awareness and sell our products, we must:

● continue to recruit and retain adequate numbers of effective and experienced sales and marketing personnel;

● effectively train our sales and marketing personnel in the benefits and risks of our products;

● establish and maintain successful sales, marketing, training and education programs that educate health care professionals so they can appropriately inform their patients about our products;

● manage geographically dispersed sales and marketing operations; and

● effectively train our sales and marketing personnel on the applicable fraud and abuse laws that govern interactions with healthcare practitioners as well as current and prospective patients and maintain active oversight and auditing measures to ensure continued compliance.

We may not be able to successfully manage our sales force or increase our product sales at acceptable rates.

***If we are unable to establish and maintain adequate sales and marketing capabilities or enter into and maintain arrangements with third parties to sell and market our products, our business may be harmed.***

We cannot guarantee that we will be able to maintain our current volume of sales in the future. A substantial reduction in sales could have a material adverse effect on our operating performance. To the extent that we enter into additional arrangements with third parties to perform sales or marketing services in the United States, Europe or other countries, our product margins could be lower than if we directly marketed and sold our products. To the extent that we enter into co-promotion or other marketing and sales arrangements with other companies, any revenue received will depend on the skills and efforts of others, and we cannot predict whether these efforts will be successful. In addition, the growth of market acceptance of our products by healthcare practitioners outside of Israel will largely depend on our ability to continue to demonstrate the relative safety, effectiveness, reliability, cost-effectiveness and ease of use of such products. If we are unable to do so, we may not be able to increase product revenue from our sales efforts in Europe or other countries. If we are unable to establish and maintain adequate sales, marketing and distribution capabilities, independently or with others, our future revenue may be reduced and our business may be harmed.

***We incorporate artificial intelligence, or AI and ML, into some of our products. This technology is new and developing and may present both compliance and reputational risks.***

We enable AI assistance in the scan assessment workflows. The AI models that we use are trained using various data sets. If our AI models are incorrectly designed or implemented or do not receive pictures or visual data, they may produce inaccurate or unreliable results, negatively impacting the application to suggest reliable and accurate assistance for scan assessments. Additionally, failures in the performance of our AI models could damage our reputation, erode customer trust, and result in loss of business and negative publicity.

***We operate in highly competitive markets, competition may increase in the future, and our industry may be further disrupted.***

Healthcare markets are characterized by rapidly evolving technology, frequent introduction of new products, intense competition, and pricing pressures. We face competition from international and domestic companies of all sizes. Competition is primarily focused on cost effectiveness, price, service, product performance, and technological innovation. Our ability to compete successfully may be adversely affected by factors such as:

● the introduction of new products or product enhancements by competitors;

● the development of new technology or the application of known or unknown technology;

● a failure to satisfy local market conditions and regulations, such as mandatory IP transfers, protectionist measures, and other government policies supporting increased local competition;

● the emergence of new market entrants;

● a failure to maintain or expand relationships with existing customers or attract new customers;

● cost of production or delivery, whether due to geographic location, currency fluctuations, taxes, duties, or otherwise, which may enable our competitors to offer greater discounts or lower prices;

● the perception of our brand and image in the market;

● a failure to successfully enter new geographic or adjacent product markets;

● changing regulatory standards, legal requirements, or enforcement rigor; or

● consolidation among customers, suppliers, channel partners, or competitors.

Our inability to obtain and maintain regulatory authorizations for and supply commercial quantities of our offerings as quickly and effectively as our competitors could limit market acceptance. Furthermore, our markets are continually evolving and thus revenues and income are difficult to forecast. Any of these competitive factors could adversely affect our pricing, margins, and market share and have a material adverse effect on our business results, cash flows, financial condition, or prospects.

***Unfavorable global economic conditions could adversely affect our business, financial condition or results of operations.***

Our results of operations could be adversely affected by general conditions in the global economy and in the global financial markets, including changes in inflation, interest rates and overall economic conditions and uncertainties. To the extent inflation or other factors increase our business costs, it may not be feasible to pass price increases on to our customers or offset higher costs through manufacturing efficiencies. Inflation could also adversely affect the ability of our customers to purchase our products. An economic downturn could result in a variety of risks to our business, including weakened demand for our products and our inability to raise additional capital when needed on acceptable terms, if at all. A weak or declining economy could also result in further constraints on our suppliers or cause future customers to delay making payments for our products. Any of the foregoing could harm our business and we cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely affect our business.

***International expansion of our business exposes us to business, regulatory, political, operational, financial and economic risks associated with doing business outside of the United States or Israel.***

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Other than our headquarters and other operations which are located in Israel, our business strategy incorporates significant international expansion, particularly in anticipated expansion of regulatory approvals of our products. Doing business internationally involves a number of risks, including but not limited to:

● multiple, conflicting and changing laws and regulations such as privacy regulations, tax laws, export and import restrictions, employment laws, regulatory requirements and other governmental approvals, permits and licenses;

● failure by us to obtain regulatory approvals for the use of our products and services in various countries;

● additional potentially relevant third-party patent rights;

● complexities and difficulties in obtaining protection and enforcing our intellectual property;

● difficulties in staffing and managing foreign operations;

● complexities associated with managing multiple regulatory, governmental and reimbursement regimes;

● limits in our ability to penetrate international markets;

● financial risks, such as longer payment cycles, difficulty collecting accounts receivable, the impact of local and regional financial crises on demand and payment for our products and exposure to foreign currency exchange rate fluctuations;

● natural disasters, political and economic instability, including wars, terrorism and political unrest, outbreak of disease, boycotts, curtailment of trade and other business restrictions;

● certain expenses including, among others, expenses for travel, translation and insurance; and

● regulatory and compliance risks that relate to maintaining accurate information and control over sales and activities that may fall within the purview of the U.S. Foreign Corrupt Practices Act, or the FCPA, its books and records provisions or its anti-bribery provisions.

Any of these factors could significantly harm our future international expansion and operations and, consequently, our results of operations.

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

***We are subject to extensive government regulation, which could restrict the development, marketing, sale and distribution of our products and could cause us to incur significant costs.***

Our ultrasound imaging products and associated services are subject to extensive pre-market and post-market regulation by the FDA and various other federal, state, local and foreign government authorities. For example, our operations are subject to regulations governing packaging and labeling requirements, adverse event reporting, quality system and manufacturing requirements, clinical testing and recalls. For a discussion on the relevant regulatory regime, see Item 4.B. "Business Overview - Government Regulation".

We are commercializing our Pulsenmore ES ultrasound imaging device which is approved for use in several key markets including the United States, Europe, Switzerland, Australia, Brazil, Colombia and Israel while our Pulsenmore FC ultrasound imaging device is at an early stage of commercialization in Israel where it is approved for use. A key component of our short-term and long-term growth strategy is contingent on FDA clearance of the Pulsenmore ES. We cannot assure that any of the Pulsenmore ES or Pulsenmore FC or any other medical devices or new uses, modifications, or renewals for any approved devices will be cleared or approved in a timely or cost-effective manner, if cleared or approved at all, or that we will be able to maintain the clearance or approval of such devices. In the event we are unable to leverage existing or predicate devices for future products, we may experience delays and additional costs to obtain FDA approval for such future products. For example, during 2020, we submitted a 510(k) application to the FDA for the Pulsenmore ES however the FDA indicated that a *de novo* application is the proposed method of application for Pulsenmore ES. Even if such clearances or approvals are received, they may not be for all indications for which we pursue. Because medical devices may only be marketed for cleared or approved indications, this could significantly limit the market for that product and may adversely affect our results of operations.

Our business is subject to unannounced inspections by FDA to determine our compliance with FDA requirements. FDA inspections can result in inspectional observations on Form FDA 483s, warning letters, untitled letters or other forms of more significant enforcement action. If the FDA concludes that we failed to comply with any regulatory requirements during an inspection, it could have a material adverse effect on our business and financial condition. We could incur substantial expense and harm to our reputation, and our ability to introduce new or enhanced products in a timely manner could be adversely affected.

***If we, our contract manufacturers or our component suppliers are unable to manufacture our products in sufficient quantities, on a timely basis, at acceptable costs and in compliance with regulatory and quality requirements, the manufacturing and distribution of our devices could be interrupted, and our product sales and operating results could suffer.***

We, our contract manufacturers and our component suppliers are required to comply with the FDA's Quality System Regulation, QSR, which is a complex regulatory framework that covers the procedures and documentation of the design, testing, production, control, quality assurance, labeling, packaging, sterilization, storage, shipping and servicing of our devices. Compliance with applicable regulatory requirements is subject to continual review and is monitored rigorously through periodic, sometimes unannounced, inspections by the FDA. We cannot assure investors that our facilities or our third-party manufacturers' or suppliers' facilities would pass any future quality system inspection. Failure of our or our third-party manufacturers and component suppliers to adhere to QSR requirements or take adequate and timely corrective action in response to an adverse quality system inspection finding could delay production of our products and lead to fines, difficulties in obtaining regulatory clearances, recalls, enforcement actions, including injunctive relief or consent decrees, or other consequences, which could have a material adverse effect on our financial condition or results of operations. In addition, any of our products shipped internationally are also required to comply with the International Organization for Standardization, or ISO, quality system standards as well as EU Regulations and norms in order to produce products for sale in the EU.

The Pulsenmore Products use piezoelectric crystal technology. This technology is adopted in many ultrasound devices. We cannot predict whether future regulation will deem the level of lead contained in these devices as hazardous or whether the exemption to the EU's Restrictions of Hazardous Substances Directive will be revised.

In addition, many countries such as Canada and Japan have very specific additional regulatory requirements for quality assurance and manufacturing. If we fail to continue to comply with current good manufacturing requirements, as well as ISO or other regulatory standards, we may be required to cease all or part of our operations until we comply with these regulations. Maintaining compliance with multiple regulators adds complexity and cost to our manufacturing and compliance processes.

***Our current or future products may be subject to product recalls even after receiving FDA and comparable foreign regulatory authorities clearance or approval. A recall of our products, either voluntarily or at the direction of the FDA, or the discovery of serious safety issues with our products, could have a significant adverse impact on us.***

The FDA and similar governmental bodies in other countries have the authority to require the recall of our products if we or our third-party manufacturers fail to comply with relevant regulations pertaining to, among other things, manufacturing practices, labeling, advertising or promotional activities, or if new information is obtained concerning the safety or efficacy of these products. Recalls of any of our products would divert managerial and financial resources and have an adverse effect on our reputation, results of operations and financial condition, which could impair our ability to produce our products in a cost-effective and timely manner in order to meet our customers' demands. We may also be subject to product liability claims, be required to bear other costs, or be required to take other actions that may have a negative impact on our future sales and our ability to generate profits.

***We may be subject to enforcement action if we engage in improper or off-label marketing or promotion of our products, including fines, penalties and injunctions.***

Our promotional materials and training methods must comply with FDA and other applicable laws and regulations, including the prohibition of the promotion of unapproved, or off-label, uses. However, if the FDA determines that our promotional materials or training materials promote an approved medical device in a manner inconsistent with its labeling, it could request that we modify our training or promotional materials or subject us to regulatory or enforcement actions, including the issuance of an Untitled Letter, a Warning Letter, injunction, seizure, civil fine or criminal penalties. In addition to ensuring that the claims we make are consistent with our regulatory clearances or approvals, the FDA also ensures that promotional labeling for all regulated medical devices is neither false nor misleading.

It is also possible that other federal (such as the FTC), state or foreign enforcement authorities might take action if they consider our promotional or training materials to constitute promotion of an off-label use, or to be false, unsubstantiated, or misleading, which could result in significant fines or penalties under other statutory authorities, such as laws prohibiting false claims for reimbursement. In that event, our reputation could be damaged, and adoption of our products could be impaired, in addition to legal consequences, which may include fines, penalties, product liability claims, and other legal actions.

***In some instances in our advertising and promotion, we may make claims regarding our product as compared to competing products, which may subject us to heightened regulatory scrutiny, enforcement risk, and litigation risks.***

The FDA requires that promotional labeling be truthful and not misleading, including with respect to any comparative claims made about competing products or technologies. In addition to FDA implications, the use of comparative claims also presents risk of a lawsuit by the competitor under federal and state false advertising and unfair competition statutes (e.g., the Lanham Act) or unfair and deceptive trade practices law, and possibly also state libel law, or other similar foreign laws. Such a suit may seek injunctive relief against further advertising, a court order directing corrective advertising, and compensatory and punitive damages where permitted by law. Further, notwithstanding the ultimate outcome of any Lanham Act or similar complaint, our reputation and relationship with certain customers or distribution partners may be harmed as a result of the allegations related to our products or our business practices more generally.

***We are subject to federal, state and foreign laws prohibiting "kickbacks" and false or fraudulent claims, and other fraud and abuse laws, transparency laws, and other health care laws and regulations, which, if violated, could subject us to substantial penalties. Additionally, any challenge to or investigation into our practices under these laws could cause adverse publicity and be costly to respond to, and thus could harm our business.***

Our relationships with customers and third-party payors are subject to broadly applicable fraud and abuse and other health care laws and regulations that may constrain our sales, marketing and other promotional activities by limiting the kinds of financial arrangements, including sales programs and certain customer and product support programs, we may have with hospitals, physicians or other purchasers of medical devices. See "Item 4.B., Business Overview - Government Regulation".

Any failure to comply with these laws and regulations could subject us or our officers and employees to criminal and civil financial penalties. We are also subject to risks relating to changes in government and private medical reimbursement programs and policies, and changes in legal regulatory requirements in the U.S. and around the world. Implementation of further legislative or administrative reforms to these reimbursement systems, or adverse decisions relating to coverage of or reimbursement for our products by administrators of these systems, could have an impact on the acceptance of and demand for our products and the prices that our customers are willing to pay for them.

***We are subject to stringent privacy laws and information security policies and regulations.***

Our products and systems receive, generate, and store significant volumes of personal and sensitive information, such as employee, customer, and patient data. Moreover, our digital ecosystem, which is intended to provide our customers with greater access to a broad array of personal and sensitive information to improve delivery of care to their patients, heightens our risks associated with the protection of such information. We have legal and contractual obligations regarding the protection of confidential and personal information and the appropriate collection, use, retention, protection, disclosure, transfer, and other processing of such data. Additionally, regulators within the United States and around the world are evaluating how best to regulate development and use of data as well as AI technologies. We are subject to various privacy law regimes in the different jurisdictions in which we operate, including comprehensive regulatory systems in Europe, South America, and sector-specific requirements in the United States. Certain international jurisdictions have enacted or are enacting data localization laws mandating that certain types of data collected in a particular jurisdiction be physically stored within that jurisdiction.

There are numerous U.S. federal and state laws and regulations related to the privacy and security of personal information. In particular, regulations promulgated pursuant to HIPAA establish privacy and security standards that limit the use and disclosure of protected health information, or PHI, require the implementation of safeguards to protect the privacy and security of PHI and ensure the confidentiality, integrity, and availability of electronic PHI, and require the provision of notice in the event of a breach of PHI. If we are unable to properly protect the privacy and security of PHI, we could face liability for breach of our contracts with our customers. Further, if we fail to comply with applicable HIPAA privacy and security standards, we could face civil and criminal penalties. In addition, there are also various state-level laws (e.g., the California Consumer Privacy Act), both enacted and proposed, that we must monitor for applicability and impact to our business and for which we must implement necessary controls and other requirements (if applicable).

In addition, we are subject to the laws and regulations of foreign jurisdictions including, without limitation, the GDPR in the EU. The GDPR is wide-ranging in scope and imposes numerous requirements on companies that process personal data, including requirements relating to having a legal basis for processing personal data, providing information to individuals regarding data processing activities, implementing safeguards to protect the security and confidentiality of personal data, providing notification of data breaches, and taking certain measures when engaging third-party processors. The GDPR permits data protection authorities to impose large penalties for violations of the GDPR, including potential fines of up to €20 million or 4% of annual global revenues, whichever is greater. The GDPR also confers a private right of action on data subjects and consumer associations to lodge complaints with supervisory authorities, seek judicial remedies, and obtain compensation for damages resulting from violations of the GDPR. If we fail to comply with the GDPR, we could face fines, penalties, and harm to our reputation.

The GDPR also imposes strict rules on the transfer of personal data to countries outside the EU, including the United States. The European Commission has issued standard contractual clauses for data transfers from controllers or processors in the EU to controllers or processors established outside the EU. The standard contractual clauses require exporters to assess the risk of a data transfer on a case-by-case basis, including an analysis of the laws in the destination country. The EU and United States have adopted their adequacy decision for the EU-U.S. Data Privacy Framework, or Framework, which entered into force on July 11, 2023. This Framework provides that the protection of personal data transferred between the EU and the United States is comparable to that offered in the EU. This provides a further avenue to ensuring transfers to the United States are carried out in line with GDPR. The Framework could be challenged like its predecessor frameworks. This complexity and the additional contractual burden increases our overall risk exposure. There may be further divergence in the future, including with regard to administrative burdens.

***Increased cybersecurity requirements, vulnerabilities, threats, and more sophisticated and targeted computer crimes pose a risk to our systems, networks, products, solutions, services, and data, as well as our reputation, which could adversely affect our business.***

We manufacture and sell products that rely upon software and computer systems to operate properly and process and store confidential information. Our products often are connected to, and reside within, our customers' information technology, or IT, infrastructures. In some jurisdictions, we are expected to design our products to include appropriate cybersecurity protections, and regulatory authorities may review such protections when granting marketing authorizations. While we seek to protect our products and IT systems from unauthorized access, these measures may not be effective, particularly because techniques used to obtain unauthorized access or to sabotage systems change frequently, increase in sophistication, and often are not identified at the time that they are launched against a target. These risks apply to our installed base of products, products we currently sell, new products we will introduce in the future, and older technology that we no longer sell or service but remains in use by customers. Additionally, we offer software and cloud products that are developed by, controlled by, or are hosted by third-party providers. A cybersecurity breach of our systems or products, of our customers' or service providers' network security and systems, or of other third-party services could disrupt treatment being delivered to patients or interfere with our customers' operations, and could lead to the loss of, damage to, or public disclosure of our employees' and customers' stored information, including personal data, such as PHI. Such an event could have serious negative consequences, including alleged customer or patient harm, obligations to notify enforcement authorities or users of our products, voluntary or forced recalls of or modifications to our products, regulatory actions, fines, penalties and damages, reduced demand for or use of our offerings by customers, harm to our reputation, and time-consuming and expensive litigation, any of which could have a material adverse effect on our business results, cash flows, financial condition, or prospects.

There are increasingly large volumes of information, including patient data, being generated that need to be securely processed and stored by healthcare organizations. There has been an increase in the frequency and sophistication of the cybersecurity threats we and our service providers face, and we expect these activities to continue to increase. Geopolitical tensions or conflicts, such as the conflict between Russia and Ukraine, and the increased adoption of AI technologies, may further heighten the risk of cyber-attacks. Additionally, leveraging AI capabilities to potentially improve internal functions and operations presents further risks and challenges, including the possibility of creating new attack methods for adversaries. The use of AI to support business operations carries inherent risks related to data privacy, IP, and security, such as intended, unintended, or inadvertent transmission of proprietary, confidential, or sensitive information, as well as challenges related to implementing and maintaining AI tools, such as developing and maintaining appropriate datasets for such support. If we fail to implement adequate safeguards, the use of AI may introduce additional operational vulnerabilities by producing inaccurate outcomes based on flaws in the underlying data or methodologies, or unintended results.

Furthermore, we may also be exposed to a more significant risk if such actions are taken by state or state-affiliated actors. The objectives of these cyber-attacks vary widely and may include, among other things, unauthorized access to personal, customer, or third-party information, disruptions in operations and the provision of services to customers, or theft of IP or other sensitive assets or information belonging to us, our business partners, or customers. As such attacks become more effective, the risks in this area continue to grow. The back-up systems we have in place may not be adequate in the event of a failure or interruption. We may not have current capabilities to identify all vulnerabilities, which may allow others to exploit persistent potential exposures within our IT systems and products. We could suffer significant business disruption, including transaction errors, supply chain or manufacturing interruptions, processing inefficiencies, data loss, loss of customers, reputational damage, the loss of or damage to IP or other proprietary information, litigation, investigation, and possible liability to employees, customers, suppliers, patients, and regulatory authorities as a result of a successful cyber-attack. Further, our ability to effectively plan, forecast, and execute our business plan and comply with applicable laws and regulations may be impaired by such cyber-attacks. Any of the above could have a material adverse effect on our business results, cash flows, financial condition, or prospects, and on the timeliness of reporting our operating results.

We rely on software, SaaS, hardware, and other material components from a number of third parties to manufacture our products. If a material cyber incident impacting a supplier were to result in its prolonged inability to use, manufacture and/or ship such components, this could impact our ability to manufacture and/or use our products. In addition, third-party sourced software components, malicious code, or a critical vulnerability emerging within such software could expose our customers to increased cyber risk. While we have undertaken efforts to mitigate cybersecurity risks, these efforts may not prevent all incidents.

If we were to experience a significant cybersecurity breach of our information systems or data, the costs associated with the investigation, remediation, and potential notification of the breach to customers, regulators, and counterparties, as well as any related litigation expenses, fines, penalties, or damages, could be material. In addition, our remediation efforts may not be successful. The data privacy and IT security insurance coverage we currently maintain may be inadequate. In addition, the market for such insurance continues to evolve and, in the future, our data privacy and IT security insurance coverage may be prohibitively expensive or not available on acceptable terms or in sufficient amounts, or at all.

***Broad-based domestic and international government initiatives to reduce spending, particularly those related to healthcare costs, may reduce reimbursement rates for medical procedures, which will reduce the cost-effectiveness of our products and services.***

Healthcare reforms, changes in healthcare policies and changes to third-party coverage and reimbursements, including legislation enacted reforming the U.S. healthcare system and both domestic and foreign healthcare cost containment legislation, and any future changes to such legislation, may affect demand for our products and services and may have a material adverse effect on our financial condition and results of operations. The ongoing implementation of the Affordable Care Act, in the United States, as well as state-level healthcare reform proposals could reduce medical procedure volumes and impact the demand for medical device products or the prices at which we can sell products. The impact of this healthcare reform legislation, and practices including price regulation, competitive pricing, comparative effectiveness of therapies, technology assessments, and managed care arrangements are uncertain. There can be no assurance that current levels of reimbursement will not be decreased in the future, or that future legislation, regulation, or reimbursement policies of third parties will not adversely affect the demand for our products and services or our ability to sell products and provide services on a profitable basis. The adoption of significant changes to the healthcare system in the United States, the EEA or other jurisdictions in which we may market our products and services, could limit the prices we are able to charge for our products and services or the amounts of reimbursement available for our products and services, could limit the acceptance and availability of our products and services, reduce medical procedure volumes and increase operational and other costs.

***Healthcare industry cost-containment measures could result in reduced sales of our products and services.***

Most of our customers rely on third-party payers, including government programs and private health insurance plans, to reimburse some or all of the cost of the procedures in which our products are used. The continuing efforts of governmental authorities, insurance companies and other payers of healthcare costs to contain or reduce these costs could lead to patients being unable to obtain approval for payment from these third-party payers. If third-party payer payment approval cannot be obtained by patients for procedures that use our products, sales of our products may decline significantly and our customers may reduce or eliminate purchases of our products. The cost-containment measures that healthcare providers are instituting, both in the U.S. and outside of the U.S., could harm our ability to operate profitably. For example, GPOs and IDNs have also concentrated purchasing decisions for some customers, which has led to downward pricing pressure for medical device companies.

***We are subject to certain U.S. and foreign anticorruption, anti-money laundering, export control, sanctions and other trade laws and regulations. We can face serious consequences for violations.***

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Among other matters, U.S. and foreign anticorruption, anti-money laundering, export control, sanctions and other trade laws and regulations, which are collectively referred to as Trade Laws, prohibit companies and their employees, agents, clinical research organizations, legal counsel, accountants, consultants, contractors and other partners from authorizing, promising, offering, providing, soliciting or receiving, directly or indirectly, corrupt or improper payments or anything else of value to or from recipients in the public or private sector. Violations of Trade Laws can result in substantial criminal fines and civil penalties, imprisonment, the loss of trade privileges, debarment, tax reassessments, breach of contract and fraud litigation, reputational harm, and other consequences. We have direct or indirect interactions with officials and employees of government agencies or government-affiliated hospitals, universities and other organizations. We also expect our non-U.S. activities to increase over time. We plan to engage third parties for clinical trials and/or to obtain necessary permits, licenses, patent registrations and other regulatory approvals, and we can be held liable for the corrupt or other illegal activities of our personnel, agents or partners, even if we do not explicitly authorize or have prior knowledge of such activities.

***We face the risk of product liability claims and may be subject to damages, fines, penalties and injunctions, among other things.***

Our business exposes us to the risk of product liability claims that are inherent in the testing, manufacturing and marketing of medical devices, including those which may arise from the misuse (including system hacking or other unauthorized access by third parties to our systems) or malfunction of, or design flaws in, our hardware and software products. This liability may vary based on the FDA classification associated with our devices and with the laws of the state or other applicable jurisdiction governing product liability standards applied to specification developers and/or manufacturers in a given negligence or strict liability lawsuit. We may be subject to product liability claims if our products cause, or merely appear to have caused, an injury. Claims may be made by patients, healthcare providers or others selling our products. The risk of product liability claims may also increase if our products are subject to a product recall, whether voluntary or mandatory, or government seizure. Product liability claims may be brought by individuals or by groups seeking to represent a class.

Although we have insurance at levels that we believe to be appropriate, this insurance is subject to deductibles and coverage limitations. Our current product liability insurance may not continue to be available to us on acceptable terms, if at all, and, if available, the coverage may not be adequate to protect us against any future product liability claims. Further, if additional medical device products are approved or cleared for marketing, we may seek additional insurance coverage. If we are unable to obtain insurance at an acceptable cost or on acceptable terms with adequate coverage or otherwise protect against potential product liability claims, we will be exposed to significant liabilities, which may harm our business. A product liability claim, recall or other claim with respect to uninsured liabilities or for amounts in excess of insured liabilities could result in significant costs and significant harm to our business.

We may be subject to claims against us even if the apparent injury is due to the actions of others or misuse of the device or a partner device. Healthcare providers may use our products in a manner that is inconsistent with the products' labeling and that differs from the manner in which they were used in clinical studies and authorized for marketing by the FDA. Off-label use of products by healthcare providers is common, and any such off-label use of our products could subject us to additional liability, or require design changes to limit this potential off-label use once discovered. Defending a suit, regardless of merit, could be costly, could divert management attention and might result in adverse publicity, which could result in the withdrawal of, or result in reduced acceptance of, our products in the market.

Additionally, we have entered into various agreements where we indemnify third parties for certain claims relating to our products. These indemnification obligations may require us to pay significant sums of money for claims that are covered by these indemnification obligations. We are not currently subject to any product liability claims; however, any future product liability claims against us, regardless of their merit, may result in negative publicity about us that could ultimately harm our reputation and could have a material adverse effect on our business, financial condition or results of operations.

***Changes in applicable tax laws and regulations could adversely affect our business.***

We are subject to income and other non-income taxes (including sales, excise, and value-added) in the United States and foreign jurisdictions. Thus, the tax treatment of transactions we execute is subject to changes in tax laws or regulations, tax treaties, or positions by the relevant authority regarding the application, administration, or interpretation of these tax laws and regulations. These factors, together with the ambiguity of tax laws and regulations, the subjectivity of factual interpretations, and uncertainties regarding the geographic mix of earnings in any period, can affect our estimates of our effective tax rate and income tax assets and liabilities, result in changes in our estimates and accruals, and have a material adverse effect on our business results, cash flows, or financial condition. We are unable to predict what tax reforms may be proposed or enacted in the future or what effect such changes would have on our business; however, such changes could potentially result in higher tax expense and payments, along with increasing the complexity, burden, and cost of compliance.

***Non-U.S. governments often impose strict price controls, which may adversely affect our future profitability.***

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We may be subject to rules and regulations in the United States and non-U.S. jurisdictions relating to our Pulsenmore ES and Pulsenmore FC systems or any future products. In some countries, including countries in Europe, Japan, or China each of which has developed its own rules and regulations, pricing may be subject to governmental control under certain circumstances. In these countries, pricing negotiations with governmental agencies can take considerable time after the receipt of marketing approval for a medical device candidate. To obtain reimbursement or pricing approval in some countries, we may be required to conduct a clinical trial that compares the cost-effectiveness of our product to other available products. If reimbursement of our products is unavailable or limited in scope or amount, or if pricing is set at unsatisfactory levels, we may be unable to achieve or sustain profitability.

**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.***

 

We rely on patent protection as well as trademark, copyright, trade secret and other intellectual property rights protection and contractual restrictions to protect our proprietary technologies, all of which provide limited protection and may not adequately protect our rights or permit us to gain or keep any competitive advantage. As of the date of this registration statement, we owned approximately 93 issued patents and pending patent applications in the United States and foreign jurisdictions, including Australia, Canada, Europe, Japan, China, South Korea and India. These issued patents and pending patent applications (if they were to be issued as patents) have expected expiration dates ranging between approximately 2034 and 2045. 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.

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 medical device 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 medical device 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.

***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.

***We use third-party software that may cause errors or failures of our products that could lead to lost customers or harm to our reputation.***

We use software licensed from third parties in our products. Any errors or defects in third-party software or other third-party software failures could result in errors or defects or cause our products to fail, which could harm our business and be costly to correct. Many of these providers attempt to impose limitations on their liability for such errors, defects or failures, and if enforceable, we may have additional liability to our customers or third-party providers that could harm our reputation and increase our operating costs.

We will need to maintain our relationships with third-party software providers and to obtain software from such providers that does not contain any errors or defects. Any failure to do so could adversely impact our ability to deliver reliable products to our customers and could harm our reputation 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, including the October 7, 2023 attack by Hamas and other terrorist organizations from the Gaza Strip and Israel's war against them.***

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Our executive offices, research and development laboratories are located in Ramat Gan, Israel while our production site is located in Omer, Israel. In addition, the majority of our key employees, officers and directors are residents of Israel. Accordingly, political, geopolitical, economic and military conditions in Israel may directly affect our business. Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and groups in its neighboring countries, and between Israel and terrorist organizations active in the region, including the Hamas (an Islamist militia and political group in the Gaza Strip) and, Hezbollah (an Islamist militia and political group in Lebanon) and other terrorist organizations active in the region. While Israel has entered into peace agreements with both Egypt and Jordan and has entered into several normalization agreements in 2020, known as the Abraham Accords, with the United Arab Emirates, Bahrain, Sudan and Morocco, Israel has no peace agreement or normalization arrangements with any other neighboring or Arab country. Further, all efforts to improve Israel's relationship with the Palestinians have failed to result in a permanent peaceful solution.

In October 2023, Hamas terrorists infiltrated Israel's southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on the Israeli population and industrial centers located along Israel's border with the Gaza Strip and in other areas within the State of Israel. These attacks resulted in thousands of deaths and injuries, and kidnapping of civilians and soldiers. Following the attack, Israel's security cabinet declared war against Hamas and commenced a military campaign against Hamas and these terrorist organizations in parallel continued rocket and terror attacks. On January 19, 2025, a temporary ceasefire went into effect, however during March 2025, the ceasefire collapsed. As of October 9, 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 an 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 of the events of October 7, 2023, the Israeli military called-up reservists for active duty. As of the date of this registration statement, two of our employees are serving in active duty, none of whom are executives or performs critical or exclusive functions. 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.

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 development. However, if the war breaks out again or expands to other fronts, such as Lebanon, Syria, Yemen, Iran and the West Bank, our operations may be adversely affected. To address potential challenges resulting from the security situation, we have adopted a Business Continuity Plan (BCP), which includes, among other things, transitioning to a cloud-based ERP system and establishing an alternative production site in South Korea in case of disaster.

In addition, since the commencement of these events, there have been continued hostilities along Israel's northern border with Lebanon (with the Hezbollah terror organization) and southern border (with the Houthi movement in Yemen, which does not share a border with Israel). In October 2024, Israel began limited ground operations against Hezbollah in Lebanon, and in November 2024, a ceasefire was brokered between Israel and Hezbollah. In addition, Iran launched two direct attacks on Israel involving hundreds of drones and missiles, has threatened to continue to attack Israel and is widely believed to be developing nuclear weapons. In June 2025, in light of continued nuclear threats and intelligence assessments indicating imminent attacks, Israel launched a preemptive strike directly targeting military and nuclear infrastructure inside Iran, aimed at disrupting Iran's capacity to coordinate or launch further hostilities against Israel, as well as to degrade its nuclear program. In response, Iran launched multiple waves of drones and ballistic missiles at Israeli cities. While most of these attacks were intercepted, several caused civilian casualties and damage to infrastructure. While a ceasefire was reached between Israel and Iran in June 2025 after 12 days of hostilities, the situation remains volatile. A broader regional conflict involving additional state and non-state actors remains a significant risk. This escalation has heightened regional instability, increased security risks across Israel, resulted in significant travel restrictions, facility closures and shelter-in-place orders, including remote work measures, in various locations, and may further impact critical infrastructure, supply chains, and the broader Israeli economy. These measures have meanwhile been lifted. 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. These situations may potentially escalate in the future to more violent events which may affect Israel and us. Any armed conflicts, terrorist activities or political instability in the region could adversely affect business conditions, could harm our results of operations and could make it more difficult for us to raise capital. Parties with whom we do business may decline to travel to Israel during periods of heightened unrest or tension, forcing us to make alternative arrangements when necessary in order to meet our business partners face to face. In addition, the political and security situation in Israel may result in parties with whom we have agreements involving performance in Israel claiming that they are not obligated to perform their commitments under those agreements pursuant to force majeure provisions in such agreements. Further, in the past, the State of Israel and Israeli companies have been subjected to economic boycotts. Several countries still restrict business with the State of Israel and with Israeli companies. These restrictive laws and policies may have an adverse impact on our operating results, financial condition or the expansion of our business. Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading partners could adversely affect our operations and results of operations.

Furthermore, in January 2024 the International Court of Justice, or ICJ, issued an interim ruling in a case filed by South Africa against Israel in December 2023, in connection with the Gaza war, and ordered Israel, among other things, to take steps to provide basic services and humanitarian aid to civilians in Gaza and in November, 2024, the International Criminal Court, or ICC, issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Israeli Minister of Defense Yoav Gallant based on allegations of war crimes. Companies and businesses may terminate, and may have already terminated, certain commercial relationships with Israeli companies following the ICJ and ICC decisions. The foregoing efforts by countries, activists and organizations, particularly if they become more widespread, as well as rulings by the ICJ, ICC and other international tribunals, may materially and adversely impact our business and supply chains. There are concerns that companies and businesses will terminate, and may have already terminated, certain commercial relationships with Israeli companies following the ICJ and the ICC decisions. The foregoing efforts by countries, activists and organizations, particularly if they become more widespread, as well as rulings by the ICJ, ICC and other international tribunals, may adversely impact its ability to cooperate with research institutions and collaborate with other third parties.

Our insurance does not cover losses that may occur as a result of events associated with the security situation in the Middle East or for any resulting disruption in our operations. Although the Israeli government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, we cannot assure you that this government coverage will be maintained or, if maintained, will be sufficient to compensate us fully for damages incurred. Any losses or damages incurred by us could have a material adverse effect on our business, financial condition and results of operations. Any armed conflicts or political instability in the region would likely negatively affect business conditions and could harm our results of operations.

Political conditions within Israel may affect our operations. Israel has held five general elections between 2019 and 2022, and prior to October 2023, the Israeli government pursued extensive changes to Israel's judicial system, which sparked extensive political debate and unrest. Actual or perceived political instability in Israel or any negative changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in turn, our business, financial condition, results of operations and growth prospects.

***We expect to be exposed to fluctuations in currency exchange rates, which could adversely affect our results of operations.***

We incur expenses in U.S. dollars, NIS and Euros, but our financial statements are denominated and presented in NIS, which is our functional currency. The NIS is the currency that represents the principal economic environment in which we operate. As a result, we are affected by foreign currency exchange fluctuations through translation risk. As a result, we are exposed to the risk that the NIS may appreciate relative to the dollar, or, if the NIS instead devalues relative to the dollar, that the inflation rate in Israel may exceed such rate of devaluation of the NIS, or that 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. We consult with an external financial consulting firm to manage our level of exposure to changes in foreign currency exchange rates. As of the date of this registration statement, our policy is to hold currency reserves in accordance with our expected expense mix, thereby reducing exposure. To date, we have not engaged in any foreign currency hedging transactions.

***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 have received in the past, currently receives, and may be required in the future to receive grants from governmental authorities, including grants from the 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.

***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.***

Our research and development efforts have been financed in part through royalty-bearing grants in an aggregate amount of approximately NIS 11.4 million ($3.1 million) and NIS 13.7 million ($4.1 million) that we received from the IIA as of December 31, 2024 and June 30, 2025, respectively. 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. 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. On May 20, 2025, we amended our articles of association to be in effect upon the effectiveness of the listing of our ordinary shares on Nasdaq to establish a staggered board of directors, which divides the board into three groups, with directors in each group serving a three-year term. The existence of a staggered board can make it more difficult for shareholders to replace or remove incumbent members of our board of directors. 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.

***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.

***Our articles of association provide that unless we consent to an alternate forum, the federal district courts of the United States shall be the exclusive forum of resolution of any claims arising under the Securities Act or Exchange Act which may impose additional litigation costs on us or our shareholders and may discourage claims or limit the ability of shareholders to bring a claim in a forum they find favorable.***

***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.***

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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, although our articles of association provide that unless our consent to an alternate forum, the federal district courts of the United States shall be the exclusive forum of resolution of any claims arising under the Securities Act or the Exchange Act. 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, and the stock of publicly-traded medical device companies in particular, have 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 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 41.2% 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 June, 2021. 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.

***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. We have a total of 6,502,844 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.

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.

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***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.

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***We have not yet determined whether our existing internal controls over financial reporting systems are compliant with Section 404 of the Sarbanes-Oxley Act, and we cannot provide any assurance that there are no material weaknesses or significant deficiencies in our existing internal controls.***

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 and the related rules adopted by the SEC and the PCAOB, starting with the second annual report that we file with the SEC after the effectiveness of this registration statement, our management will be required to report on the effectiveness of our internal control over financial reporting. Our independent registered public accounting firm may also need to attest to the effectiveness of our internal control over financial reporting under Section 404 at that time. We have not yet commenced the process of determining whether our existing internal controls over financial reporting systems are compliant with Section 404 and whether there are any material weaknesses or significant deficiencies in our existing internal controls. This process will require the investment of substantial time and resources, including by our Chief Financial Officer and other members of our senior management. In addition, we cannot predict the outcome of this determination and whether we will need to implement remedial actions in order to implement effective internal control over financial reporting. The determination and any remedial actions required could result in us incurring additional costs that we did not anticipate. Irrespective of compliance with Section 404, any failure of our internal controls could have a material adverse effect on our stated results of operations and harm our reputation. As a result, we may experience higher than anticipated operating expenses, as well as higher independent auditor fees during and after the implementation of these changes. If we are unable to implement any of the required changes to our internal control over financial reporting effectively or efficiently or are required to do so earlier than anticipated, it could adversely affect our operations, financial reporting and/or results of operations and could result in an adverse opinion on internal controls from our independent auditors.

***Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.***

Following our anticipated listing on Nasdaq, we will become subject to the periodic reporting requirements of the Exchange Act. We designed our disclosure controls and procedures to provide reasonable assurance that information we must disclose in reports we file or submit under the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

These inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements due to error or fraud may occur and not be detected.

***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 IFRS 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.

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

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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—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 PCAOB 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, the proxy rules applicable to domestic U.S. registrants under Section 14 of the Exchange Act or the insider reporting and short-swing profit rules applicable to domestic U.S. registrants under Section 16 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, 2025. 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.***

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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.***

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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 offering. 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. 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 registration statement 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 registration statement.

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 registration statement, 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 Pulsenmore Ltd. We are a company limited by shares organized under the laws of the State of Israel and was incorporated on October 27, 2014. Our principal executive offices are located at 8 Omarim St., Omer, Israel, and our telephone number is +972 526062075. Our wholly owned subsidiary, Pulsenmore Americas LLC, was incorporated in Delaware on March 10, 2022, and is located at 100 Summer Street, Suite 1600, Boston, MA 02110, and its telephone number is 1-978-994-0692. In February 2023, we established Pulsenmore Korea LLC.

We completed our initial public offering in Israel in June 2021 and our ordinary shares are traded on the TASE under the symbol "PULS."

Our capital expenditures for the years ended December 31, 2024, 2023 and 2022 were NIS 509,000 (approximately $140,000), NIS 3,926,000 (approximately $1,077,000), and NIS 4,506,000 (approximately $1,236,000) respectively. Our capital expenditures for the six months ended June 30, 2025 and 2024 were NIS 97,000 (approximately $28,775) and NIS 171,000 (approximately $50,727). Our current capital expenditures involve acquisitions of computers, software, laboratory equipment and machines.

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.pulsenmore.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.pulsenmore.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

We are an emerging medical device company focused on research, development, manufacture, marketing, and sale of innovative, non-invasive portable ultrasound solutions that provide significant healthcare benefits by utilizing next-generation technology for home use. We currently have two primary products, the Pulsenmore ES and the Pulsenmore FC, and an additional third portable ultrasound solution that is in earlier developmental stages, the Pulsenmore MC. We collectively refer to our products as the "Pulsenmore Products". The Pulsenmore Products open the door to a new market in the field of ultrasound – performing home scans in gynecology as well as in various other fields such as pulmonary, cardiology, and urology.

The Pulsenmore ES is a non-invasive home ultrasound device that is clinically proven to support prenatal care by allowing expectant mothers to perform self-scans and telehealth guided scans at home. The device is approved for use in several key markets including the United States, Europe, Switzerland, Australia, Brazil, Colombia and Israel. Another product, the Pulsenmore FC is intended for self-examination of ovarian follicles and endometrial tissue in women undergoing *in vitro* fertilization (IVF) or fertility preservation. The Pulsenmore FC device is approved for use in Israel and has been supplied for clinical research purposes in other territories. As we are in the early stages of commercialization of the Pulsenmore FC device in Israel, we plan to gain more real-world experience with the Pulsenmore FC before submitting for approval in the United States and other territories. We are also developing the Pulsenmore MC which is engineered for daily monitoring of fluids in the lungs in patients with various pulmonary conditions, end stage renal disease, or congestive heart failure. The Pulsenmore MC is in the early stages of development, and we are conducting clinical feasibility trials.

Our flagship product, the Pulsenmore ES, has had a significant technological impact. In a recent survey of Pulsenmore ES users, approximately 86.3% of users reported a better pregnancy experience overall, 63% reported shorter clinical visits, and 90% reported a reduction in pregnancy-related anxiety and stress. With each sonogram taking approximately 74 seconds and over 150,000 home scans performed to date, the Pulsenmore ES enables better access and continuity of care with earlier detection of warning signs and alerts on risk conditions that may require intervention.

The Pulsenmore Products utilize proprietary ultrasound technology to generate high-quality ultrasound images that can be easily shared with healthcare providers for remote monitoring and consultation. The Pulsenmore Products are compact, hand-sized devices that make use of smart mobile phones to enable the relevant exams to be performed without the need for a physical visit in a clinic or hospital. The Pulsenmore Products include a software application for smart mobile phones that can be downloaded and installed by end users to help facilitate the remote physical examination or remote monitoring using telehealth technology. The software application allows the ultrasound images to be directly transferred to attending physicians, medical staff, or call center clinics. The distinction between the Pulsenmore Products and its peers lies in the Pulsenmore Products' ability to provide reliable scans while ensuring user safety and comfort through a user-friendly interface and design. This enables users to achieve peace of mind and continuity of care without the need for frequent clinic visits, reducing the associated time spent and financial costs.

We focus on developing cutting-edge technologies to better meet the needs of patients and providing compelling value to our partners. In Israel, we have established partnerships with Clalit, as well as Sheba Medical Center, or Sheba, Israel's largest hospital accounting collectively for more than NIS 9 million (approximately $2.5 million) and approximately NIS 3.9 million (approximately $1.2 million) in sales of Pulsenmore ES units in Israel for the year ended December 31, 2024 and the six months ended June 30, 2025, respectively.

The Pulsenmore Products address significant and growing markets that we believe will sustain our long-term growth. Factors such as an increase in the demand for remote-access health solutions, the growing awareness of preventive diagnostics, and the influence of digital health trends are driving the growth of the home ultrasound market. We are increasing our focus on brand awareness and partnerships with healthcare providers which we believe will increase product utilization and expand our presence in existing and our penetration to new geographies. We believe our compelling product offering, coupled with an attractive business model premised on attractive economic benefits for our partners, effectively positions us to sustain and empower our future growth.

At the end of October 2025, we received FDA approval of the Pulsenmore ES as a Class II device to enable the acquisition of ultrasound images that allow interpreting healthcare providers to determine fetal heartrate. While we are currently focused on expanding our operations in the United States as well as Israel, we are also focusing on penetrating additional geographic markets with the Pulsenmore ES device. We received CE approval for the sale of the device in Europe. In 2024, we signed a distribution agreement with a distributor in Italy. We received purchase agreements in France and Poland in the second quarter and are engaged in identifying opportunities to partner with Europe-based healthcare providers. In South America, the Pulsenmore ES is currently approved for sale in Brazil and Colombia however with the recent receipt of FDA approval in the Unites States, we are currently focused on expanding our commercial footprint in the United States. In the Asia-Pacific region, we have received regulatory approval for Pulsenmore ES in Australia, where we started commercial operations in the first quarter of 2025 and partnered with a health-provider in the third quarter of 2025. We cannot assure that any of the Pulsenmore ES or Pulsenmore FC or any other medical devices or new uses, modifications, or renewals for any approved devices will be cleared or approved in a timely or cost-effective manner, if cleared or approved at all, or that we will be able to maintain the clearance or approval of such devices.

To enhance our market position and sustain our track record of innovation, we continuously invest in research and development (R&D) of our products. Our innovation is supported by a portfolio of over 21 families of patents and patent applications invented by our experienced and committed R&D team. Our ability to effectively innovate is enhanced by our senior management and employees who have extensive expertise in the field of medical ultrasound devices. This allows us to incorporate critical feedback and emerging trends in real-time, supporting our continuous and iterative development processes.

We currently have an emerging pipeline of enhancements that we believe will allow us to increase our offerings to existing customers and to attract new customers. We believe that introducing new products and product enhancements is important to satisfy customer demand and respond to evolving technological developments.

**Our Competitive Strengths**

We believe the following strengths have been instrumental to our progress so far. We intend to foster these strengths in order to position us for future growth and to drive our profitability:

**Operating in large, growing mobile diagnostics imaging market**

According to BIS Research, diagnostic imaging exams are performed in more than 75% of medical cases, and mobile imaging solutions are expected to grow at a compound annual growth rate (CAGR) of about 8% by 2029 according to the Business Research Company. Within the broad diagnostic imaging, we operate in the home-use ultrasound which is closely connected to telehealth advancements and particularly relevant to prenatal care., Our flagship product, the Pulsenmore ES is a home-use prenatal ultrasound device, best categorized within the obstetrics and gynecology ultrasound devices market—a segment that includes cart-based ultrasound machines, portable and handheld ultrasound devices, and specialized probes used for imaging the female reproductive system and monitoring fetal development. This is distinct from the broader non-invasive prenatal market, which includes not only prenatal ultrasound devices but also products like non-invasive prenatal testing (NIPT) for genetic screening (such as cell-free fetal DNA tests), maternal serum screening kits, and wearable fetal monitors; similarly, the fertility services market encompasses ovulation test strips, home fertility monitors, and in-clinic diagnostic imaging such as transvaginal and pelvic ultrasound systems, as well as sperm analysis kits and related services. Our device is not aimed at genetic screening, ovulation tracking, or fertility prediction, but rather ongoing prenatal monitoring from home. The global prenatal, fetal, and neonatal equipment market, which includes ultrasound devices as well as incubators, monitors and other supportive equipment, was valued at approximately $4.2 billion in 2024 and is projected to reach $7.1 billion by 2033, growing at a CAGR of 6.5% from 2026 to 2033, according to Verified Market Reports. While the market includes various prenatal monitoring devices, such as fetal dopplers, wearable fetal monitors, and in-clinic ultrasound systems, to our knowledge there are currently no approved or commercially available remote home-use ultrasound solutions designed for patient self-scanning, providing us with what we believe to be a unique competitive advantage in this segment as our products enable patient-initiated prenatal imaging at home, complementing but not replacing in-clinic visits.

**Compelling value proposition of our products to both patients and partners**

According to a survey conducted by Grand Review Research, the global market for portable ultrasound devices, including those used with mobile phones, such as our Pulsenmore ES and Pulsenmore FC devices, was valued at approximately USD 5.7 billion in 2024 and is projected to grow at a CAGR of 4.5% from 2025 to 2030. The market growth is being driven partially by patients' preference for home-based diagnostic solutions, concerns about frequent clinic visits, potential costs, and the need for continuous monitoring. We designed the Pulsenmore Products to provide a superior customer experience, overcoming each of these concerns with a solution that is affordable, completely non-invasive, ensures minimal disruption to daily life, and offers compelling results. Due to these advantages, we believe the Pulsenmore Products are appealing to existing customers who have previously used mobile ultrasounds solutions, including for prenatal care services, and to new customers who are seeking more convenient and continuous monitoring options for health conditions including those unrelated to prenatal care. For partners, the Pulsenmore Products provide high customer satisfaction due to ease of repeat usage and simplicity.

**Short term growth fueled by established agreements with strategic partners**

We focus on developing cutting-edge technologies to meet patient needs and provide value to our partners. We have established partnerships with a major HMO in Israel, Clalit, and Sheba, a major hospital in Israel, and also with GE Precision Healthcare in Austria.

Our strategic partnership with Clalit, allows it to purchase, sell, and market the Pulsenmore ES. For the year ended December 31, 2024 and six months ended June 30, 2025, we supplied approximately 7,148 and 2,540 units, respectively of Pulsenmore ES to Clalit for distribution to pregnant patients. Additionally, we have agreements with Sheba to supply units of Pulsenmore ES to their pregnant patients. For the year ended December 31, 2024 and six months ended June 30, 2025 we supplied 190 units and 110 units, respectively, of Pulsenmore ES to Sheba for distribution to pre-natal patients. These partnerships enhance patient accessibility and visibility of our products.

As we continue to focus on the innovation and expansion of our product range and application, our strategic partnerships with Clalit and Sheba generate a growing base of revenue through its distribution of Pulsenmore ES units which accounted for approximately 95% and 97% of our overall revenue for the year ended December 31, 2024 and six months ended June 30, 2025, respectively.

**Broad research and development capabilities and a robust intellectual property portfolio.**

For over a decade, we have invested in establishing strong research and development capabilities, including integrating hardware and software to create an exceptional user and customer experience. We believe that our focus on this experience will allow us to continue to bring new upgrades, capabilities, and new additional products to market, allowing us to maintain our competitive positioning. We have a broad patent portfolio, across 21 categories including 29 issued patents and 64 pending patent applications as of December 28, 2025. We believe our intellectual property and know-how present a significant barrier to entry for our competitors.

**Highly experienced global management team with deep ultrasound expertise.**

We are led by a highly experienced management team and board with a successful track record of building businesses by identifying and providing solutions in the field of ultrasound devices. Our team is led by founder and CEO, Dr. Elazar Sonnenschein, who has successfully led and managed dynamic growth phases in medical device-developing organizations and commercialized products in markets with established incumbents, by addressing the unmet needs of the healthcare providers and customers whom they serve. Our senior management team has vast experience in the field of medical devices for home use.

**Our Growth Strategy**

We believe we are well-positioned to enhance our position as a leading global provider of non-invasive portable ultrasound medical devices for home use. To achieve this goal, our significant growth opportunities include:

**Build and expand on our global scale by deepening our presence in key existing geographies and expanding into attractive new markets**

Following the recent FDA approval of Pulsenmore ES, our primary strategic focus is on expanding in the United States. We are actively working to launch Pulsenmore ES in the U.S. market and are prioritizing the establishment of robust partnerships with leading healthcare providers, distributors, and telemedicine organizations to ensure broad adoption and rapid growth. We believe that the U.S. market represents the most significant opportunity for Pulsenmore ES and are allocating substantial resources to support our commercial expansion in this key territory.

In addition to our U.S. expansion, we continue to sell products in Israel through health care providers and remain committed to strengthening our position in the Israeli market. We also believe we have significant opportunities to continue our growth in major markets such as Europe, Australia and in the future in Brazil and Colombia, which are the territories in which we have already received regulatory approvals for the marketing of Pulsenmore ES. We are also highly focused on growing our global network by expanding our distribution networks in existing markets and select new international markets based on our assessment of size and opportunity, among other factors.

We believe the Pulsenmore ES is well-aligned with strong growth prospects and customer trends in these markets, and we are currently in contact with various health care providers and distributors in the available markets, including telemedicine service providers in European countries, with the aim of integrating Pulsenmore ES into the services already offered by them. In addition, we continue to supply Pulsenmore ES units for clinical trials that are carried out in Israel and Europe in accordance with our growth strategy which aims to incentivize growth by demonstrating the advantage to health systems, patients and insurers. To sustain this growth, we intend to continue investing in our sales organizations and sales networks in these markets.

**Strengthen, expand and establish additional partnerships with health care providers**

In addition to Clalit and Sheba we plan to establish additional strategic partnerships with healthcare organizations operating in Israel such as Maccabi Healthcare Services, or Maccabi and in other markets where we shall choose to expand.

**Continue to invest in research and development to enhance a comprehensive ultrasound offering and expand our addressable market**

We have an experience in developing and commercializing the Pulsenmore ES in Israel. We think that our capabilities allow us to expand the types of CE-marked ultrasound solutions that we offer. We plan to continue investing in research and development in order to expand our products to other areas of medical care outside of prenatal care. Our development activity is focused on the completion of the development of additional ultrasound devices intended for home use and the invention and protection of intellectual property in the field of ultrasound devices, and the development of automatic production of piezoelectric transducers.

**Strategically pursue attractive opportunities to expand the manufacturing and production of our products**

We are committed to enhancing our production and manufacturing capabilities in order to support our growth and meet increasing demand. To achieve this, we plan to continue to invest in advanced manufacturing technologies, integrate state-of-the-art automation and precision engineering, and optimizing production lines. Additionally, we intend to lease additional production space for an array of automatic production machines in order to efficiently increase the supply of our products.

We continue to pursue opportunities with existing contractors and new contractors to ensure that we have the guaranteed capacity to assemble hundreds of thousands of units per year of the Pulsenmore ES product, and in the near future, the new products. Entering into exclusive relationships with our assembly contractors allows us to scale production with minimal additional logistical costs ensuring that we can meet the growing demand for the Products.

**Market Opportunity**

Mobile ultrasound devices are a fast-growing category within the broader imaging diagnostics sector including X-ray, CT, MRI, PET and Ultrasounds. Ultrasound devices use high-frequency sound waves to create images of organs inside the body and are commonly used for monitoring fetal development during pregnancy, examining organs like the liver, kidneys, and heart, and guiding procedures such as needle biopsies. Ultrasounds provide a reliable solution while being non-invasive and by providing cost-effective real-time imaging. The rapid growth in the mobile ultrasound device industry and the increasing customer demand, incentivize new customers to incorporate mobile healthcare solutions into their practices.

The mobile ultrasound market is segmented into various applications such as routine health monitoring, emergency care, and chronic disease management. Traditionally, advanced cart-based ultrasound technology costs between $45,000 and $100,000 per device plus the expense of specialized training for use of the technology. There are various non-invasive, ultrasound-based technologies designed to monitor health conditions. Among these technologies, there are Point-of-Care Ultrasound (POCUS) systems, which are portable and provide quick diagnostic information at the point of care. These devices range from $3,000 to $7,000 per unit with one ultrasound probe, often requiring multiple probes to adequately use the POCUS systems.

Alongside these technologies, the Pulsenmore mobile ultrasound devices allow patients to perform self-scans at home, providing high-quality ultrasound images that can be easily shared with healthcare providers for remote monitoring and consultation. The uniqueness of this technology lies in its ability to provide accurate and reliable scans while ensuring user safety and comfort through a user-friendly interface and design and while providing a more cost-efficient solution relative to other ultrasound systems.

According to Markets and Markets, the global ultrasound market, which includes home-based, mobile ultrasound devices, such as our Pulsenmore ES and Pulsenmore FC devices, was valued at $8.6 billion in 2023 and is projected to grow at a CAGR of 6.8% reaching $13.9 billion by 2030. This market encompasses a wide range of medical devices and technologies designed to support various healthcare needs. In recent years, ultrasound imaging has seen a shift from traditional clinic-based approaches to more portable, user-friendly solutions. This increase in customer preference for non-invasive, mobile, and convenient monitoring options has fueled industry growth. In addition to being more affordable, solutions like the Pulsenmore ES and Pulsenmore FC devices offer the additional advantage of reducing the need for frequent clinic visits while still providing continuous medical monitoring. Growing demand for mobile healthcare solutions combined with a surge in the availability of advanced technologies continues to accelerate growth in the industry.

Additionally, there has been a significant increase in need for at home ultrasound solutions for pre-natal women and women undergoing IVF. It is estimated that about 2.5 million IVF cycles are performed annually worldwide, of which 300,000 are in the United States. The U.S. non-invasive prenatal market, which includes our Pulsenmore ES and Pulsenmore FC devices, since they are able to be used from home by the patient in a non-invasive manner, was estimated at $1.6 billion according to Grand View Research and is expected to grow at a CAGR of 8.2% from 2023 to 2030. Furthermore, the U.S. fertility services market, including IVF ultrasounds, is projected to grow at a CAGR of 7.5% from 2024 to 2040. Given the concentration of potential clients in the United States, this market remains a key focus for us.

Other tailwinds driving industry growth include:

● Strong demographic forces: According to a report by McKinsey, older generations have historically preferred limited medical treatment whereas Millennials and Generation Z are increasingly prioritizing health and wellness, heavily influenced by digital health trends and unlimited access to medical information via the internet.

● Strong preference for at home medical solutions: Despite the advancements in traditional clinic-based ultrasound technologies, there is a growing demand for mobile solutions, accessible medical care and at home testing with results and treatment plans being monitored through telehealth and telemedicine programs, which, according to Market.US, was value at $7.7 billion in 2022 and is expected to grow at a CAGR of 17.3% between 2023 and 2032. Customers prefer continuous monitoring without the need for frequent clinic visits. This trend intensified as the result of the COVID-19 pandemic and has continued to expand despite the end to travel bans and testing restrictions initially implemented as a result of the pandemic.

● Technological advancements: According to Markwide Research in its analysis of the handheld ultrasound market, innovations in imaging technology, such as AI-assisted diagnostics, high frequency transducers and enhanced battery performance, are significantly improving the quality and reliability of handheld ultrasound systems,

● Healthcare provider economics: The impact of managed care and reimbursement on healthcare provider economics has motivated providers to establish or expand the menu of elective, private-pay healthcare services that they offer. As a result, many healthcare professionals have expanded their practices to offer mobile healthcare solutions. For example, Clalit's customers have partial coverage of the payment for the Pulsenmore ES product and the accompanying ultrasound reading service.

● Reductions in cost per product: Due partly to increased competition in the healthcare market the cost per ultrasound product has decreased in the past few years, according to iData Research. Due to the economies of scale of production of Pulsenmore ES, as we scale production, we anticipate a lower fixed cost per unit.

● Favorable Telehealth and Obstetrics Legislation: In the United States reimbursement legislation has been passed to permanently extend the flexibilities that were initially authorized during the COVID-19 pandemic, allowing beneficiaries to receive telehealth from their home and also all types of practitioners to provide telehealth services. In addition, The Rural Obstetrics Readiness Act, is pending to create better health outcomes for women who live in "maternity care deserts" where access to care is limited.

**<u>Products & Services</u>**

**Pulsenmore ES**

The Pulsenmore ES device provides digital, prenatal care indicators (such as heartbeat, level of amniotic fluid, movements and in some cases placenta location) using a hand-sized ultrasound system designed for home use by pregnant women. The cradle connects to a mobile phone (Android or iOS) and allows the user to perform ultrasound scans without prior medical training. In the app-guided home ultrasound option, a user-friendly mobile app guides the expectant mother. In the clinician-guided home ultrasound option, the expectant mother initiates a video call through the Pulsenmore mobile application with a medical professional who guides her through the five-step procedure for generating the sonogram. In both modes the expectant mother does not need prior medical training. The device, which is one of the smallest ultrasound systems in the world, uses the mobile phone's screen to display the scan and securely sends the results to a qualified medical professional through the cloud.

The Pulsenmore ES is a compact, portable, ultrasound device. It produces B-Mode and M-Mode, black & white ultrasound images, which are displayed on a smartphone screen. The device is used to scan, acquire, display, and transmit the ultrasound images to the cloud, and the smartphone's processor is used to filter the raw ultrasound image and display it.

The Pulsenmore ES ultrasound system is intended to enable the acquisition of ultrasound images that allow interpreting healthcare professionals to determine amniotic fluid levels and fetal heart rates. The Pulsenmore ES system is best used when traditional scanning in a clinic is impractical or when the use of telehealth or software-guided self-scanning is in the best interests of the patient. The device is intended to be used by pregnant women with a singleton pregnancy at the gestational age of 14-40 weeks, in non-clinical environments. While the Pulsenmore ES system is intended to entirely replace standard and ordinary ultrasound sessions that are typically performed in a clinic, the Pulsenmore ES system is not intended to replace ultrasounds that require the intervention of doctors and other medical professionals.

There are two sub models to the Pulsenmore ES device – for Android phones and ES cradles for iPhones, including 3 main elements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Device
 (cradle) – contains the ultrasound transducer and a printed circuit board with electronics.

(b) Mobile
 Application - (downloaded to the patient's smartphone), providing user interface (UI) to the patient, communicates with the
 cradle and the cloud application, provides power to the device (Type-C model), records ultrasound clips and performs initial image
 processing.

(c) Clinician
 Dashboard - Processes and stores the ultrasound clips for the review of healthcare professionals.

![](formdrs_002.jpg)

Figure 1: Pulsenmore ES: Type C (left) and Type iOS (right)

Patients using the Pulsenmore ES make direct skin contact with the transducer head. The Pulsenmore ES is a non-sterile, reusable device for single-patient use during one pregnancy. Its main imaging component is a probe consisting of R60 mm curved array with 64 piezo-electric elements and a silicone-coated acoustic lens. The probe is connected via an internal flex connector to the Analog Front End (AFE), which handles electrical pulses, echo amplification, and synchronization for a 58.8-degree scanning beam. In standard ultrasound, the transducer's beam array is interpolated into a mesh grid for imaging. To visualize fetal heart activity, the transducer targets the heart, generating an M-mode image for heart rate measurement.

The Pulsenmore ES device offers two modes of operation: (a) clinician-guided operation, where a technician or physician assists the patient via telehealth, and (b) app-guided operation, where the patient performs the scan independently. In both modes, the patient does not need prior medical training for use and in the clinician guided mode a technician or physician does not need prior medical training however we may in the future implement a training program for medical professionals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Clinician-guided home ultrasound

A unique procedure key is generated for the specific patient from the Clinician dashboard. The patient connects her smartphone to the device and activates the downloaded Pulsenmore mobile application. The patient, who does not need prior medical training, then initiates a video call with a medical professional who guides her through the five-step procedure for generating the sonogram. The entire process typically takes a few minutes. The clinician reviews the scans and provides real-time feedback to the patient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) App-guided home ultrasound

A unique procedure key is generated for the patient from the Clinician dashboard. The patient connects her smartphone to the device and activates the downloaded Pulsenmore mobile application. The patient follows a five-step procedure for generating the sonogram, which takes less than five minutes. The patient securely uploads the video to the cloud for a medical professional to decode and analyze it. The scans are viewed from the clinician's secure dashboard. The clinician reviews the scans and then sends feedback to the patient.

Figure 2: Clinician-guided home ultrasound display

While the Pulsenmore ES system can be used to generate ultrasound images, we are also developing a service performing biophysical profile tests, or "BPP" for high-risk pregnant women using the Pulsenmore ES system.

BPP is a form of non-invasive prenatal testing involving ultrasound imaging often combined with a non-stress test to observe the fetus's heart rate, breathing, movement, muscle tone, and the amount of amniotic fluid. Each of the parameters tested is assigned a score with a maximum score of ten. The test is commonly used for early detection of fetal distress and potential complications, better monitoring of high-risk pregnancies, improved management of fetal growth restriction and increased maternal reassurance. BPP tests are typically performed in the office.

We are seeking to advance Pulsenmore ES device for a patient-operated remote BPP test and to date have conducted studies in two clinical sites, as further described below under "Published Studies — Remote, modified Biophysical Profile (mBPP) using the Pulsenmore ES device", and during 2026 plan to collect further clinical evidence that could support FDA approval of the utilization of the Pulsenmore ES device for the BPP test.

**Pulsenmore FC**

The Pulsenmore FC device is designed for self-examination of the size and quantity of follicles in the ovaries and the thickness of the endometrial tissue in the uterus for women undergoing in vitro fertilization (IVF) or fertility preservation. This hand-sized ultrasound system allows women to perform these examinations at home without prior medical training. The device connects to a mobile phone (Android or iOS) and uses a mobile phone's screen to display the scan. The data and videos of the ultrasound scan can be sent directly to the treating medical professional or uploaded to the cloud for interpretation and then sent to the treatment center.

The Pulsenmore FC device potentially reduces the need for frequent visits to health centers by allowing women to perform these scans at home at their convenience to determine the most appropriate date for egg retrieval and fertilization. Similar to the Pulsenmore ES device, the Pulsenmore FC device offers both clinician-guided online operation and app-guided offline operation.

The main target customers for this product are HMOs, large private clinics, and health insurers, who will provide the device to women undergoing fertility preservation, ovary simulation and IVF procedures. Traditionally, women undergoing IVF visit clinics and hospitals to check the size and quantity of follicles via ultrasound performed by a technician or doctor. When follicles reach a certain size (usually about 18 to 20 mm) and level of hormones meet the expected levels, women receive a hormone injection, and approximately 36 hours later, eggs are extracted for fertilization or freezing. If the follicles have not reached the desired size, women must return for additional examinations.

![](formdrs_004.jpg)

Figure 3: Pulsenmore FC

**Pulsenmore MC**

We are developing an ultrasound device for lung scanning, designed for patients with various lung diseases and conditions– Pulsenmore MC.

The Pulsenmore MC device looks and operates very similarly to the Pulsenmore ES device. Once activated by the patient, the application automatically plays a video detailing the scan procedure, guides the patient through the process, and subsequently uploads the videos to a cloud server.

The Pulsenmore MC device is designed for patients with End-Stage Renal Disease (ESRD) and/or Congestive Heart Failure (CHF). Based on similar electronic technology to the Pulsenmore ES system, it features different transducers adjusted for size, scanning frequency, and software adapted to these frequencies.

**Strategic Partnerships**

*Clalit Health Services*

 

On August 2, 2020, we entered into an agreement with Clalit, Israel's largest HMO, or the CHS Pulsenmore ES Agreement. Pursuant to the CHS Pulsenmore ES Agreement, Clalit had the right to purchase, sell and market the Pulsenmore ES in Israel. In exchange, we committed to provide over 20,000 units of the Pulsenmore ES for distribution to Clalit pre-natal patients. In the first half of 2025 and for the years ended 2024, 2023 and 2022, Clalit Health Services purchased 2,540, 7,148, 4,987, and 4,802 units of Pulsenmore ES, respectively, constituting the majority of the initial 20,000 units that we committed to provide to them. This term of the CHS Pulsenmore ES Agreement was originally for a period of two years, with either party being entitled to terminate without cause or reason upon nine months' prior written notice to the other party. In June 2022, the parties agreed to extend the term of the CHS Pulsenmore ES Agreement to August 2023, which was subsequently extended until August 2024.

The CHS Pulsenmore ES Agreement contains customary provisions regarding the liability of the parties and the limitation of the amount of liability, including that neither party will be liable to the other party for indirect, special, punitive or consequential damages, except in connection with a breach of confidentiality, privacy and personal injuries, unless caused by an act or omission of the other party in breach of the agreement. In addition, we will not bear any liability arising from any medical diagnosis or prognosis provided or prevented by the pregnancy product (subject to compliance with the technical specifications). In addition, we are required to maintain various insurance policies, including third-party liability insurance and professional liability insurance combined with product liability.

On October 28, 2024 we entered into a new five-year agreement with Clalit Health Services extending existing terms and conditions of the CHS Pulsenmore ES Agreement, or the New CHS Pulsenmore ES Agreement. Pursuant to the New CHS Pulsenmore ES Agreement, we will provide at least 25,000 units of the Pulsenmore ES to Clalit, which will be supplied for a period of up to 60 months from the date of signing the New CHS Pulsenmore ES Agreement and includes minimum annual quantities that we are required to provide.

The New CHS Pulsenmore ES Agreement provides Clalit, at an additional cost payable by Clalit, with the option to use the product synchronously (i.e. clinician-guided), while conducting a video call with the clinician/physician, during which the ultrasound video is transmitted in real time.

Under the New CHS Pulsenmore ES Agreement, we provide support and maintenance services to Clalit for 2025 onwards, at an additional cost payable by Clalit, in accordance with a service agreement entered into in connection with the New CHS Pulsenmore ES Agreement. The New CHS Pulsenmore ES Agreement includes customary provisions, including confidentiality clauses, privacy protection and information security requirements, as well as insurance and limitation of liability as is customary in such agreements. In addition, the New CHS Pulsenmore ES Agreement sets a warranty period for the products and includes provisions regarding the return/replacement of defective products and/or those found to be non-compliant with the product specifications and includes provisions regarding cooperation between the parties for the marketing and distribution of the products. The New CHS Pulsenmore ES Agreement is cancelable by either party subject to prior notice of nine months.

In December 2021, we also entered into a subsequent agreement with Clalit for the sale of the Pulsenmore FC system, or the CHS Pulsenmore FC Agreement, under which Clalit has committed to purchase a minimum quantity of Pulsenmore FC units per year over a four-year period which has an aggregate value of $10.8 million, subject to confirmation that the results of the feasibility trial of the Pulsenmore FC system at the Rabin Medical Center meet the protocol criteria. In June 2025, we received the clinical trial results report from the feasibility trial, and based on such results we believe that Clalit will begin integrating the Pulsenmore FC system as part of the remote healthcare services offered to its insured members. Under the agreement, Clalit has the right to return up to half of the minimum annual order and each of the parties has the right to terminate the agreement after 18 or 36 months, with renewal options for Clalit for two additional one-year periods, subject to certain minimum purchase requirements per any such one-year period. Although Clalit has yet to confirm that the results of the feasibility trial meet the protocol criteria, by virtue of this agreement we received our first order in November 2022 for a total value of approximately NIS 1.3 million (approximately $356 thousand) which had been provided during December 2022. To date, we have supplied the customer with 400 devices under this agreement, of which 100 devices were used for the feasibility study.

*Sheba Medical Center* 

 

On February 29, 2024, we entered into an agreement with Sheba, or the Sheba Agreement, through the Sheba Research and Health Services Fund, the first virtual hospital in Israel pursuant to which, we will provide several hundred units of the Pulsenmore ES for distribution to Sheba's pre-natal patients. The term of the Sheba Agreement is for a period of two years. The Sheba Agreement includes customary provisions, including warranty, cooperation for marketing and distribution, and service provisions.

For the year ended December 31, 2024, we received an order for 300 units which remain to supply 110 units of the Pulsenmore ES for a total value of approximately NIS 0.3 million (approximately $0.1 million), which were supplied during the six months ended June 30 ,2025.

*GE Precision Healthcare*

In May and June 2022, we entered into a series of agreements with affiliates of General Electric, including a Private Placement Agreement, or the Investment Agreement entered into with GE Healthcare Global Holdings, Inc or GE Healthcare, a Strategic Alliance Distribution Agreement, or the GE Distribution Agreement, with GE Precision Healthcare LLC, or GE Precision, and a Material Commitment Agreement with GE Precision, or the Supply Agreement.

Under the terms of the Investment Agreement, GE Healthcare invested $21 million. For further information with respect to the Investment Agreement see "Item 7B. Related Party Transactions".

Under the GE Distribution Agreement, we originally granted GE Precision exclusive distribution rights for the Pulsenmore ES for 20 selected international customers in each of the U.S., Europe, and Japan, certain non-exclusive distribution rights to all other customers in the U.S., Europe and Japan, and certain non-exclusive distribution rights in territories outside of the U.S., Europe and Japan if we operate in such territories directly (as opposed to through a distributor). In addition, we originally granted GE Precision a right of first offer for territories outside of the U.S., Europe, and Japan if we intend to operate in such territories indirectly through a distributor. The term of exclusivity for the US and Japan was originally seven years while the term of exclusivity for Europe was three years and was automatically renewable for additional one-year periods subject to early non-renewal notice. During the exclusivity period, GE Precision was subject to certain non-compete restrictions, preventing it from distributing competing products, except under specific exceptions as set forth in the GE Distribution Agreement, including until a minimum purchase order threshold for Pulsenmore ES was met and if there were problems with Pulsenmore ES or the delivery of Pulsenmore ES that were not remediated during the timeframe set forth in the GE Distribution Agreement.

The GE Distribution Agreement provided that GE Precision agreed to place an order for 20,000 Pulsenmore ES units in the first year of the agreement and 50,000 Pulsenmore ES units in the second year with a delivery plan and estimated quantities for 2024 and 2025 to be agreed in good faith. The GE Distribution Agreement has a term of seven years and automatically renews for additional one-year periods unless otherwise not renewed in accordance with the terms of the agreement. The agreement may be terminated in certain limited circumstances including, a material breach, bankruptcy or change of control of the Company.

We also entered into the Supply Agreement with GE Precision. Pursuant to the terms, GE Precision made an advance payment of $1 million for the purchase of long-lead electronic components to support our product manufacturing for the second year purchase order. In addition, the Supply Agreement provided for an additional payment by GE Precision to us for up to approximately $1.9 million for such long-lead electronic components subject to certain conditions.

During 2022, GE Precision placed an initial order for 20,000 units of Pulsenmore ES, with 5,000 delivered in that year. In November 2023, GE Precision canceled the order for 15,000 units of the initial order, citing compatibility issues with iOS product, and never placed its second year order that was contemplated. We rejected these claims, asserting that the product is iOS compatible and that GE Precision must fulfill its obligations. During 2024, we received a new purchase order from GE Precision in which we supplied 240 units compatible with iOS but reserved all our rights under the agreements. We notified GE Precision several times that they must comply with the agreement and take the remaining 15,000 devices and we continue to evaluate our legal options.

In November 2024, we notified GE Precision that its exclusive distribution rights for the Pulsenmore ES with respect to the 20 selected customers in Europe will not be renewed and will terminate effective June 7, 2025. This was because of unsatisfactory sales results. We are not currently selling Pulsenmore ES to such selected customers and do not have any immediate plans to do so.

In August 2025, we entered into a settlement agreement with GE Precision and GE Healthcare resolving our outstanding dispute and amending the terms of the Distribution Agreement as well as terminating the Supply Agreement. Under the terms of the settlement agreement, GE Precision agreed to pay us the sum of $1 million, payable within 45 days and that we shall retain ownership of the 15,000 units that were in dispute. Furthermore, it was agreed that we shall retain ownership of the long-lead electronic components purchased under the Supply Agreement and that each party is discharged from any further obligation under the Supply Agreement such that we do not need to return the $1 million advance for the purchase of long-lead electronic components. With respect to the Distribution Agreement, all remaining exclusivity and the limited non-compete were terminated and Japan was removed from the list of exclusive territories. In addition, the right of first offer was also terminated and it was agreed that all unfulfilled purchase orders of GE Precision are cancelled, and GE Precision shall have no further obligation to place any future purchase orders.

As a result of these amendments, GE Precision retains non-exclusive distribution rights to all customers in the U.S. and Europe and certain non-exclusive distribution rights in territories outside of U.S. and Europe if we operate in such territories directly (as opposed to through a distributor) as long as GE Precision is not distributing a competing product in such territory.

*Memorandum of Understanding with a Medical Center in Australia*

On July 22, 2025, we entered into a non-binding Memorandum of Understanding, or the MOU, with GCUH (Gold Coast University Hospital), a university medical center that is part of a health maintenance organization operating in the state of Queensland, Australia, or GCUH. The MOU for the collaboration was signed between us and GCUH following an agreement to purchase 100 units of Pulsenmore ES, to be used in a commercial trial with GCUH for the purpose of evaluating prospective sales opportunities in the Australian market where it is already approved for sale. As part of the MOU, upon the purchase by GCUH of additional units beyond such 100 units, we will provide GCUH with certain discounts on future orders of units, subject to order of minimum quantities, and GCUH will serve as a "Center of Excellence" in Australia for the Pulsenmore ES, supporting clinical development, physician and midwife training, and broader integration of the Pulsenmore ES. It was also agreed in the MOU that during a period of one year from the signing of the MOU, a definite agreement will be entered into between the parties to memorialize the agreements regarding the cooperation as agreed in the MOU. The duration of the definitive agreement is intended to be 4 years extendable for two additional periods of one year each. In July 2025, we received an advance payment of approximately NIS 117,000 (approximately $35,000).

**Clinical Trials**

Over the past few years, we have conducted and/or supported numerous clinical studies to demonstrate the safety and effectiveness of the Pulsenmore home ultrasound platform for pregnancy monitoring. Additionally, two studies have shown the feasibility of our pipeline devices designed for transvaginal ultrasound in patients undergoing fertility treatments and for pulmonary ultrasound in patients with renal and/or heart failure. Below is a summary of the clinical evidence we have gathered so far.

***Feasibility, Validation and Acceptance of the Pulsenmore ES Device:***

 ****

<u>HOLA (Home Ultrasound Assessment) US based multicenter study:.</u>

This prospective pivotal multicenter study was completed in October 2024. The study was conducted in four medical centers in the U.S. and was designed to evaluate the safety and performance of the Pulsenmore ES device when used by pregnant women at home, in both App-Guided (AG) and Clinician- Guided (CG) modes, in comparison to a conventional in-clinic scans. The study consisted of up to three ultrasound sessions over up to three consecutive weeks (one session per week). Each session consisted of three ultrasound scans performed over the course of a single day: AG scan performed by the subject at home, a clinician-guided scan performed during a telehealth visit at the subject's home, and an in-clinic visit using a standard of care ultrasound device. A total of 188 pregnant women >14 weeks of gestation were enrolled, and 171 women completed the study. Of the enrolled women, following exclusion due to protocol deviations, data of 162 women was analyzed, yielding a total of 1,370 scans corresponding to 458 video-guided scans, 453 clinician guided scans, and 458 in-clinic scans. For the final effectiveness analysis, performed retrospectively (following study closure), 10 readers independently and 'blindly' interpreted AG scans and different 10 readers interpreted CG scans. Three expert readers interpreted the in-clinic scans, of which majority rule (two of three) was used to determine ground truth (GT) results.

The primary safety endpoint was incident of device related, or procedure related severe adverse events. The primary efficacy endpoint was proportion of cases in which readers using the CG and AG modes can correctly visualize fetal heart rate activity (for CG mode >90% and for AG mode >80%), and the sensitivity and specificity of normal amniotic fluid volume (AFV) in the CG and AG modes (>70%). Secondary efficacy endpoints included image quality using ACEP (American College of Emergency Physicians) image quality scale for AFV and fetal heart rate activity. Additional secondary endpoints included agreement between readers on placental position, fetal breathing (for the CG mode only, starting at >27 weeks GA), fetal movement and fetal presentation.

There were no device related or procedure related serious adverse events reported. The primary efficacy analysis found that the fetal heart rate activity was effectively visualized in >90% of cases in both CG and AG modes scans. Mean proportion for CG mode 99.2% [95% CI 96.7%, 100%] >90% and mean proportion for AG mode 97.2% [95% CI 94.3%, 99.3%] >80%). The sensitivity to determine AFV was 69.3% [95% CI 63.3%, 74.4%] < 70% the CG mode and 49.3% [95% CI 41.1%, 57.6%] < 70% for the AG mode. The specificity to determine AFV was 80% [95% CI 73.5%, 86.5%] > 70% in CG mode and 91.6% [95% CI 89.1%, 94.0%] > 70% in AG mode. Both CG and AG modes generated ultrasound scans with high image quality (>90% of the scans were graded as ACEP ≥3 (sufficient for diagnosis)). For visualizing fetal movements, placental location, and fetal breathing, CG and AG scans demonstrated comparable rates to in-clinic scans, with all three modalities achieving visualization rates exceeding 95%. Visualization of fetal presentation was significantly lower in in-clinic scans compared to CG and AG scans.

Overall, the study demonstrated that the Pulsenmore ES device produced high-quality ultrasound scans that were safe and effective at visualizing fetal heart rate activity at home for both CG and AG modes however the Pulsenmore ES device did not meet the sensitivity endpoint for AFV. Patient satisfaction was found to be very high using both CG and AG modes.

<u>Usability (Human factor) U.S. based study</u>:

In 2023, we completed a prospective human factors validation study, testing the usability of the Pulsenmore ES device for patient's conducting self-operated fetal scans during pregnancy. During this study, patients completed fetal scans remotely from home using either the AG (n=15) or the CG (n=15) mode of operation, while the process was observed via video call and was recorded. Both Android and iOS-based smartphones were tested in both modes. After completing the scans, the patients were interviewed about their experience with the device. For the CG mode, a health care provider (HCP) guided the patient' scan. Thus, two intended user populations, pregnant patients (n=15) and HCPs (n=15), were tested in this study. The HCPs were observed directing patients through the at-home fetal scanning procedure and then were interviewed about their experience with the device. The study measured whether any safety issues arose while using the device and whether there were any user errors while using the device. Results demonstrated that all patients and HCPs were able to safely use the Pulsenmore ES ultrasound device to perform ultrasound scans remotely. No user-related risks or test artifacts were identified.

***Published Studies***

 ****

Several studies conducted during the last years and published recently evaluated the feasibility and user acceptance of Pulsenmore remote ultrasound utilization during pregnancy.

<u>Clalit feasibility study</u>

A study, from Beilinson hospital, Israel, completed in 2022, evaluated the Pulsenmore ES in AG mode with 100 pregnant women (14-40 gestational weeks). Each participant received the device for a self-use period of 7–14 days and was instructed to perform one to three scans a day. Participants completed a self-assessment questionnaire to evaluate safety and usability (i.e., user experience and satisfaction). Each scan was evaluated for fetal heart activity, amniotic fluid volume, fetal tone, fetal body, and breathing movements. The primary endpoint was safety and secondary endpoints included user experience, usability, and device sensitivity. There were no device-related serious adverse events reported. Success in detection was 95.3% for fetal heart activity, 88.3% for body movements, 69.4% for tone, 92.2% for normal amniotic fluid volume, and 23.8% for breathing movements. Device use was well accepted with high user satisfaction.

<u>Erlangen feasibility study</u>

A prospective, single-center observational study conducted in Erlangen, Germany, completed in 2023. A total of 46 pregnant women were enrolled in gestational weeks 17+ 0 to 29 +6 weeks. The participants were enrolled in two cohorts, one using a prototype of Pulsenmore ES and the other using the Butterfly iQ.

The Butterfly iQ is a mobile ultrasound system that is certified for medical use. It has similar structure to the Pulsenmore ES device and also consists of a mobile ultrasound device that can be connected to a mobile phone or tablet by cable. The corresponding application can be downloaded and the cloud functions for saving images and videos. The preset for ultrasound in obstetrics was used. However, the Butterfly iQ device is not intended for self-scan by the patient at home and was designed for a healthcare professional utilization as a Point of Care ultrasound (POCUS).

The study found that two thirds of the women would be willing to perform the self-guided examination at home, but 87.0% would prefer live support by a professional. Concerns about their own safety and that of the child were expressed by 23.9% of the women. Success rates for locating the target structure for videos of the fetal heartbeat (n=46) were: Pulsenmore cohort (n=23) 65.2%, Butterfly cohort (n=23): 91.3%. Success rate for videos of the amniotic fluid in all four quadrants (n=46): Pulsenmore cohort (n=23) 43.5%, Butterfly cohort (n=23): 60.9%, and for videos of the fetal profile (n=28) Pulsenmore cohort (n=13) 15.4%, Butterfly cohort (n=15): 20%

Notably, this study revealed atypical results in the detection of fetal parameters using the Pulsenmore ES. We believe these findings may be attributed to the use of a prototype version of the device, which was significantly improved in later versions, or to inappropriate training of the readers.

<u>Charite feasibility study for near term pregnancy monitoring</u>

A prospective, observational study by Charite hospital, Germany, completed in 2024, evaluated the feasibility of Pulsenmore self-operated device for women near term. 50 women between 40 + 0 and 41 + 2 gestational weeks were included. The study aimed to evaluate whether the patient self-operated scans correlate with the routine scan. In addition, the study aimed to assess whether the mobile-based ultrasound system leads to a reduction in outpatient visits. The women completed a questionnaire as well to evaluate satisfaction, safety and the question of reduction of outpatient visits. The results showed 92% of scans were found to be adequate for analysis, 91,9% of the patients felt safe using the ultrasound device, 97.9% of women indicated that they would use such a device during pregnancy and in 81.6%, this would lead to a reduction of doctor's consultations. Overall, the study revealed that the Pulsenmore ultrasound system is a viable solution for remote fetal assessment and could potentially lead to a cost and time alleviation.

<u>Validation of fetal heart rate and maximal vertical pocket measurement tools</u>

This prospective study was conducted in Belinson hospital, Israel, and completed in 2024. The aim of this study was to evaluate fetal heart rate (FHR) and maximal vertical pocket (MVP) measurements tools available on the Pulsenmore ES dashboard, for usability and accuracy. Pulsenmore ES scans were obtained by pregnant women in AG or CG mode. The scans were stored on a cloud for later interpretation by a health care professional. Each self-scan was immediately followed by a standard in-clinic US scan performed by a clinician. The asynchronous FHR and MVP measurements made on the AG and CG scans through the designated dashboard were analyzed and compared with the real-time, in-clinic measurements.

The study included 28 women. Rates of successful utilization of the Pulsenmore tool for measurement of FHR were 84.7 ± 11.24% of scans made in AG mode and 96.3 ± 6.35% of scans made in CG mode. Corresponding values for MVP were 91.7 ± 2.31% and 95.0 ± 1.73%. FHR accuracy (difference from in-clincic values) was 10.8 ± 7.5 beats per minute (bpm; 7.2%) in AG mode and 5.8 ± 5.1 bpm (4%) in CG mode. MVP accuracy was 1.3 ± 1.4 cm (22%) and 0.9 ± 0.8 cm (14%), respectively. Sensitivity (87.5% and 100% in AG and CG modes, respectively) and specificity (95% and 95.5% in AG and CG modes, respectively) were established for MVP.

Overall, the study demonstrated that FHR and MVP measurements obtained from scans captured by the self-operated Pulsenmore ES ultrasound platform are highly accurate and reliable for clinical use relative to standard in-clinic measurements.

<u>Clalit real world data analysis</u> 

Data of Pulsenmore utilization was obtained from Clalit home ultrasound services which has implemented the Pulsenmore system in the AG mode. The established ultrasound reading center remotely interpreted over 140,000 scans through to January 2025 with over 98% precision of the following prenatal parameters: fetal cardiac activity, fetal movements and amniotic fluid volume - where each scan is designated as normal (all three parameters are observed and are OK), abnormal (at least one of the parameters is observed and is abnormal, i.e. no heartbeat, no movements or oligohydramnios/polyhydramnios), or inadequate (at least one of the parameters cannot be technically evaluated/observed). Following each scan, users are promptly contacted by healthcare professionals for either reassurance, further scanning instructions, or referral for additional follow-up care.

In addition, a retrospective analysis of Clalit was conducted comparing maternal and neonatal outcomes among Pulsenmore ES users versus non-users between January 2020 and December 2022. The study compared two groups: 4,460 users of the Pulsenmore ES device and 102,707 non-users. Primary outcome measures were preterm delivery and a composite adverse neonatal outcome. Confounders were balanced between the groups using nearest neighbor matching with propensity scores. Multivariable analyses including the confounders were conducted in matched cohorts to obtain doubly robust estimates. A sensitivity analysis included those who began using the device before 22 gestational weeks and continued for more than 10 weeks. Safety was assessed by identifying any maternal, obstetrical, or neonatal complications plausibly linked to device use.

The study found users of Pulsenmore ES device had higher socioeconomic scores, were more primiparous and had a higher incidence of chronic disease and pregnancy complications. Preterm birth rates and adverse neonatal outcomes did not differ between groups. The median total home ultrasound scan count was 8, with a median duration of use of 13.6 weeks. Most women (91%) used the device starting from their second trimester. The study key finding was that device utilization, both overall and stratified by actual utilization degree, was safe and not associated with any maternal, obstetrical or neonatal adverse pregnancy outcomes.

***Utilization of the Pulsenmore ES Device in High- Risk Pregnancy:***

 ****

<u>Hybrid model for monitoring high risk pregnant women</u>

A study was conducted in Sheba hospital, Israel, completed in 2024, which recruited 20 women with gestational diabetes (GDM) beyond 32 gestational weeks. All women participated in a 4-week prospective study of alternating remote and in-clinic visits . The in-clinic and remote visits were compared. Remote assessments began with women self-measuring vital signs and using a digital urine dipstick. The remote encounter started with a midwife performing anamnesis and remotely connecting women to the fetal nonstress test. A physician concluded the meeting with remote sonographic assessment of amniotic fluid maximal vertical pocket that together with the nonstress test provided the modified biophysical profile assessment (mBPP), using the Pulsenmore ES device for evaluation AFV as part of the mBPP test, and ongoing glycemic control assessment. The feasibility of remote visits were assessed, compared visit durations, evaluated women's satisfaction using a questionnaire, examined glucose documentation adherence during hybrid care compared with the following period until birth, and assessed GD-related clinical outcomes.

Results indicated that remote visits had a success rate of 97.4% (38 of 39), with significantly shorter durations compared with in-clinic visits (median 59.0 min vs. 159.0 min). Women expressed high satisfaction (6.6 of 7), and adherence with recording fasting glucose values during the study period was 30% higher than the following period until birth (92.2% vs. 61.8%). Notably, none required induction of labor for glycemic control imbalance, and there were no cases of macrosomia, shoulder dystocia, or neonatal hypoglycemia. Overall, the hybrid approach to maternal-fetal care for GD demonstrated feasibility, safety, time efficiency, improved patient satisfaction, and enhanced glycemic control adherence.

Following this pilot, Sheba beyond, the first virtual hospital in Israel, implemented a model of Hospital at Home (HaH) for High-Risk Pregnant women offering a promising alternative to prolonged hospital admissions, empowering women while maintaining quality of care. This study investigated a hybrid model integrating remote visits and tele-home monitoring with bi-weekly hospital visits, using remote technologies including Pulsenmore fetal ultrasound. 93 women were included in the program, with good pregnancy outcome and saving 1200 hospital admission days (12.9 days per patient). High patients' satisfaction was recorded.

<u>Anxiety following recurrent pregnancy loss</u>

Two RCT studies, investigated the impact of telemedicine visits, using the Pulsenmore home ultrasound, on maternal anxiety and antenatal attachment. The studies conducted in Wolfoson hospital, Israel and completed in 2024. The first study (study 1) included women with a history of recurrent pregnancy loss (2 or more prior abortions), and the second study (study 2) included women with previous late pregnancy loss (beyond 20 weeks of gestation). Each study included 50 women who were randomized 1:1 into 2 groups: Control group, which received standard high-risk prenatal care, or the study group, which received additional twice-weekly home-ultrasound sessions. The home ultrasound scans assess fetal pulse, movements and amniotic fluid volume, aiming to provide maternal reassurance. Patients performed the scans themselves using the Pulsenmore ES device, with real-time guidance from a physician (using the CG mode). Remote ultrasound session duration was 5 minutes on average. Maternal anxiety and attachment were assessed using validated questionnaires. The primary outcome measure was anxiety levels measuring the Stait Trait Anxiety Inventory (STAI) and Maternal Antenatal Attachment Scale (MAAS) score.

In both studies, there were no differences in demographics or pregnancy outcomes between groups. The primary outcome (STAI score at the last visit) was significantly lower in the device group compared to the control group (30 [20-61] vs 40 [22-78], P=.037). In study 1, the device group exhibited a greater reduction in STAI scores between the first and last visits (-14 [-44 –(13)] vs -2 [-32-(26)],P=.045) and a significantly higher MAAS score at the end of the follow-up period (78.5 [46-90] vs 75 [46-87], P=.046). In study 2, it was found that the device group had less unscheduled emergency department visits during this time compared to control. Also, it was found that the device group had less unscheduled emergency department visits during this time compared to control. Overall, it was found that incorporating home-ultrasound visits into prenatal care in patients with prior pregnancy loss may significantly reduce maternal anxiety and enhance maternal attachment. These findings suggest that home ultrasound technology can be a valuable tool in managing maternal anxiety in patients with prenatal maternal anxiety.

<u>Remote, modified Biophysical Profile (mBPP) using the Pulsenmore ES device</u>

A study conducted in Sheba hospital, completed in 2024 evaluated modified BPP remotely using the Pulsenmore ES device for amniotic fluid volume assessment and a remote non-stress test belt for fetal heart rate evaluation. 10 women (40 gestational weeks) were recruited in total. Nine women (90%) successfully completed the remote mBPP assessment, which included both fetal heart rate and amniotic fluid volume measurements.

Two studies evaluating remote BPP using the Pulsenmore ES device were completed in 2024 in Beilinson hospital, Israel (30 patients), and in the university of Michigan, USA (25 patients). The purpose of the studies was to assess feasibility and proof of concept that the Pulsenmore ES device can be used to complete BPP for fetal well being. Patients underwent remote BPP test evaluating the four sonographic variables of the BPP (fetal movement, fetal breathing, fetal tone, and amniotic fluid volume). Following the remote session with the Pulsenmore device in a CG mode, patients underwent a standard in-clinic BPP test by an independent physician blinded to the remote session results. The results showed that Pulsenmore ES and in-clinic standard scans showed 92.7% BPP score agreement (51/55). Amniotic fluid volume (MVP >2 cm) and fetal movement scores were 100% consistent between modalities. In addition, there was 100% agreement in evaluating cardiac activity, amniotic fluid volume, fetal presentation and placental location. The mean duration for remote BPP using Pulsenmore ES was 8.3 ± 3.54 minutes, compared to 4.6 ± 3.33 minutes for in-clinic tests. Remote scans took longer due to clinician guidance but remained under 10 minutes. Women reported high satisfaction and a positive experience with the Pulsenmore ES device. Overall the study demonstrated the feasibility of the Pulsenmore technology to conduct effectively remote BPP.

***Ongoing studies***

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<u>Improved usability of Pulsenmore ES mobile App</u>

In 2024 we initiated an uncontrolled usability clinical trial in Meir hospital, Israel, to improve training and scanning instructions in the early (14 – 19 GW) and late (29 – 40 GW) weeks of pregnancy. The study is ongoing. A total of up to 50 pregnant women will participate in the study. Phase 1 was used for observation and testing of new scanning instructions. 20 subjects were already completed the study in phase 1. Based on the resulted observations, improved mobile version and scanning instructions were developed. Phase 2 is expected to be initiated soon and include testing the improved version with more 20-30 subjects before commercial release.

<u>Pre-labor maternal pushing training using visual biofeedback by Pulsenmore home ultrasound</u>

An ongoing randomized controlled study, initiated in 2023 in Beilinson hospital and Tel Aviv university, is evaluating the efficacy of pre-labor visual biofeedback, facilitated by Pulsenmore device, in improving maternal and neonatal outcomes in childbirth. 260 patients are expected to be recruited to the study.

***Pipeline products of home ultrasound***

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<u>Pulsenmore FC</u>

During 2024, the Pulsenmore FC device was evaluated in a single-center clinical study conducted at the Rabin Medical Center in Israel under Prof Yoel Shufaro and approved by the institutional review board, or IRB, of the clinical site. The study was used to test whether patient self-scans with the Pulsenmore FC device, could be used for ovarian and endometrial monitoring. Participants were trained to visualize the uterus and ovaries using the Pulsenmore FC device. Patients independently obtained scans, which were read blindly and compared to in-clinic scans for ovaries and uterus visualization, follicles number, size, and endo material thickness (EMT). In June 2025, we received the clinical trial results report from the feasibility trial. A total of 48 patients completed the study. The primary safety endpoint was incident of device related, or procedure related serious adverse events and primary efficacy endpoint was image quality by comparing the clinician guided Pulsenmore FC scans to conventional ultrasound in in-clinic visits. There were no device related or procedure related serious adverse events reported. Overall the study demonstrated that the number and size of follicles, and the endometrial thickness as measured by the Pulsenmore FC device are comparable to those measured by the standard in-clinic ultrasound. The Pulsenmore FC scans can provide a reliable diagnosis of the appropriate timing for ovulation triggering prior to oocyte retrieval. with patients and sonographers reporting high satisfaction and good user experience.

<u>Pulsenmore MC</u>

During 2023, the Pulsenmore MC device was evaluated in a single center pilot study conducted at Soroka University Medical Center, Israel under Dr. Lior Fuchs and approved by the IRB of the clinical site. The study was used to test whether high-risk elderly hemodialysis patients could produce high-quality lung ultrasound images using the Pulsenmore MC device at home. Nine participants were trained to self-scan "Zone 1" of the anterior chest wall using the Pulsenmore MC device and performed self-scans at home using the device to assess for signs of fluid overload. As published in the Journal of Clinical Medicine in January 2025, patient-generated images demonstrated high reliability (92% highly reliable or reliable) and were non-inferior to ultrasound images generated by physicians with substantial B-line classification agreement. Overall the study demonstrated the feasibility of Pulsenmore MC utilization by high-risk elderly patients for self-scan and generation of reliable ultrasound images to evaluate chest fluid overload warranting further investigation through larger-scale and long term studies.

**Marketing and Distribution Strategy**

Our marketing strategy is focused on developing and expanding the "home" segment of the larger ultrasound prenatal care market. Our marketing campaigns, developed based on our clinical evidence, are multi-channel, regionally specific and focused on positioning the Pulsenmore ES platform as a practical, safe, and effective solution for remote sonographic fetal assessment that will lead to improved resource management, greater patient access and care, and increased patient engagement, convenience, and satisfaction.

Our customers vary depending on the country and business model. We routinely engage with multiple stakeholders, including physicians, sonographers, patients, hospital systems, third-party service providers, and insurance companies. We currently have direct sales to insurance or HMO organizations and hospitals. In the future we will expand this to include direct sales to patients, in combination with physicians, hospital systems, employers, and third-party imaging service providers.

Our distribution strategy varies depending on the regional and country needs. We believe a hybrid strategy is an effective way to develop the distribution in many countries, whereas we directly develop the initial reference accounts or with a distribution partner. We believe our products offer a significant opportunity for our partners and providers to deliver improved clinical care, cost-effectively while providing the ability to generate additional revenues.

We are marketing our Pulsenmore ES ultrasound imaging in the United States, Europe, Switzerland, Australia, and Israel where we are approved to sell. In South America, the Pulsenmore ES is currently approved for sale in Brazil and Colombia however with the recent receipt of FDA approval in the Unites States, we are currently focused on expanding our commercial footprint in the United States. We maintain our global marketing, clinical, and product management resources in our Israel Headquarters.

We received several awards including most recently winning #PM360 Innovators Submission; Two first prizes from the American Institute of Ultrasound in Medicine (AIUM); A silver medal at the 31<sup>st</sup> Annual National Health Information Awards; The Gold Winner in the Personal Digital Health Fall 2023 Awards; 1<sup>st</sup> Prize Winner at the UltraCon Shark Tank Awards; Top Design at the European Product Design Awards and Bronze Winner from the International Design Awards.

**Service and Support**

We run a technical and customer services team to address field inquiries, troubleshoot product issues, facilitate sales activities and support the commercial activities of our direct offices and our international distributors. We provide immediate technical response to our physician customers and distributors all year around. In the event that an issue arises, our technical support personnel will work with our customers to determine if a technical issue may be resolved over the telephone or requires service support. In markets where we do not have our own service engineers, the service and support of our products are managed by our independent distributors.

We warrant our products against defects in materials and workmanship under normal use and service for a period of up to 18 months from the date of delivery. If a product fails and we are unable to fix it we'll replace it within the warranty period according to the warranty terms.

**Manufacturing and Supply**

The Pulsenmore ES and Pulsenmore FC products are manufactured in a state-of-the-art production facility in Omer, Israel. We rely on a number of subcontractors to manufacture the components of our products while maintaining control over the overall production and assembly process. These manufacturing subcontractors provide us with partially assembled components. Selective outsourcing allows us to carry lower inventory levels and maintain fixed unit costs without incurring significant capital expenditures that would be in place if products were entirely self-manufactured. The electronic board inside our products is assembled by subcontractors in China, Japan or South Korea, with some of the components purchased by the subcontractors and some supplied by us. The packaging of the product is supplied by different subcontractors in South Korea and Israel. We assemble the final device in Israel, adding ancillary components including software. We control and monitor the quality of our products in our headquarters in Israel, where the final assembly and packaging of products is completed. While we rely on limited or sole suppliers for certain materials and components that are used in our products, we are not heavily dependent on any of our manufacturing subcontractors, and to date, we have not experienced any significant manufacturing delays.

We believe our partially outsourced manufacturing processes complies with all applicable U.S. and international quality and safety standards, such as ISO 13485:2016, CE and the FDA GMP quality system regulations.

**Research and Development**

Our research and development activities are conducted internally by a team of 33 research and development staff based mainly in Israel. The focus of our R&D team is to provide technological innovation and associated intellectual property that expands the value proposition of our technologies and the Products. Our research and development efforts are focused on improving and upgrading the Products as well as the development of new applications for the existing Products for additional clinical indications.

Our R&D department plays a pivotal role in our innovation engine, driving the development of advanced medical technologies with a focus on ultrasound systems for home-use. Based primarily in Israel, our multidisciplinary team includes highly skilled professionals in hardware engineering, firmware, software, mechanics, biomedical engineering, and physics. The department operates under a quality management system certified to ISO 13485, and adheres strictly to international standards such as IEC 60601 to ensure the safety and efficacy of our medical devices.

Our expertise includes:

● Full-cycle hardware engineering, including custom PCB design, high-speed data acquisition, power management, and miniaturized electronics tailored for portable ultrasound imaging.

● Integration of advanced beamformers and ultrasound front-end electronics into new-generation systems, designed to meet demanding performance, power, and size constraints.

● Development of smart accessory devices that interface directly with iOS (Made for iPhone - MFi) and Android smartphones. These devices are developed and manufactured in-house, with MFi certification experience and familiarity with wireless and USB-based interfaces.

● Cloud-based software integration, including firmware and connectivity layers, allowing secure data transmission, remote diagnostics, and patient monitoring, all aligned with modern healthcare IT and cybersecurity standards.

● Design and implementation of custom mechanical and electromechanical production tools to support assembly, calibration, and testing in manufacturing environments.

Our R&D is familiar with global regulatory frameworks. The R&D team actively manage and document ECOs (Engineering Change Orders), DMR (Device Master Records), risk management files, and verification/validation reports in accordance with design control and regulatory audit requirements.

In addition, the R&D team serves as our focal point for intellectual property, managing aspects of patent development, office actions, and long-term IP strategy - supporting both innovation and competitive advantage.

Our research and development expenditures for the years ended December 31, 2024, 2023 and 2022 were approximately NIS 20.1 million (approximately $5.5 million), NIS 31.4 million (approximately $8.6 million) and NIS 29.6 million (approximately $8.1 million), respectively. Our research and development expenditures for the six months ended June 30, 2025 and 2024 were approximately NIS 8 million (approximately $2.4 million) and NIS 9.8 million (approximately $2.9 million), respectively.

**Competition**

Our industry is subject to intense competition, rapid changes and is highly sensitive to the introduction of new imaging diagnostics products or other market activities by ultrasound-specific industry participants. To our knowledge, the Pulsenmore ES is the only ultrasound product in the market that is intended for use by the lay person in a non-clinical setup, i.e. home. Although we believe that we do not directly compete with other companies, we compete indirectly and in the future, we may directly compete with other companies developing mobile ultrasound devices, including those that offer a complementary telemedicine and telehealth component that might facilitate remote use by the lay person. These competitors include established companies with significant financial and human resources, established reputations, brand name recognition, broader product lines, and larger customer bases and also new entrants. The market is characterized by extensive research efforts and rapid technological progress, making it highly competitive. Key competitors include companies with devices designed for remote diagnostics and patient monitoring such as the VScan marketed by GE Healthcare and the Butterfly Network IQ+. Among the largest and longest-standing ultrasound providers in the world is the GE Group, which was a former shareholder in our company. GE Precision also is subject to certain non-compete restrictions, preventing it from distributing competing products during an exclusivity period, except under specific exceptions as set forth in the GE Distribution Agreement, including until a minimum purchase order threshold for Pulsenmore ES is met and if there are problems with Pulsenmore ES or the delivery of Pulsenmore ES that are not remediated during the timeframe set forth in the GE Distribution Agreement. Any business combinations or mergers among our competitors that result in larger competitors with greater resources or distribution networks could further increase competition in the market. There are also many smaller companies, including a handful of Chinese manufacturers that compete with us in the mobile ultrasound space.

To compete effectively, we must demonstrate that our mobile ultrasound devices are attractive alternatives to other telehealth solutions by differentiating them based on performance, and price. We have encountered and expect to continue to encounter potential customers who, due to existing relationships with our competitors, are committed to or prefer the products offered by these competitors. Competitive pressures may result in price reductions and reduced margins for our products over time. To our knowledge, we have no direct competitors in the field of ultrasonic imaging products that match the performance level of our miniaturized, portable, simple to operate device, which is specifically intended for home use and is equipped to provide remote medical interpretation.

Other medical companies, academic and research institutions, or others may develop new technologies, including medical devices, telehealth platforms, and obtain regulatory approval for products utilizing such techniques that are more effective or less expensive than our current or future products.

In the field of pregnancy monitoring, we believe the Pulsenmore ES offers a solution at a more affordable price compared to our competitors whereas new wireless mobile products intended for skilled medical staff, such as those from Butterfly Network, typically cost around $2,000 plus an annual usage fee of about $400. Doppler monitors which are also available to pre-natal women and track the fetus through a mobile app, are generally unreliable and not approved by regulatory bodies unless they are used in a clinical setup.

In the field of follicle size imaging, alternative ultrasound products price range from tens to hundreds of thousands of dollars and require expert operation. Recently, companies like Clarius have developed portable and wireless compact ultrasonic products for medical staff, costing several thousand dollars. However, these devices are not yet approved for home use or for automatically transmitting ultrasound videos from home by lay user to doctors or technicians. Earlier disclosed ovulation monitors (such as that of U.S. Patent 5,209,238, published in 1993) have not found practical applications and success. Similar attempts have been made by others, such as VisOvum Ltd. in the UK (U.S publication 2023/0139828), but no commercially successful product has emerged.

**Intellectual Property**

Intellectual property is an important aspect of our business and we seek protection for our intellectual property rights as appropriate. To establish and protect our proprietary rights, we rely on a combination of patent, copyright, trade secret and trademark laws, know-how and continuing innovation, and contractual restrictions such as confidentiality agreements, licenses, and intellectual property assignment agreements. We strive to protect the proprietary technologies that we believe are important to our business, including seeking and maintaining patent protection intended to cover our products.

Our success depends in part on our ability to: (a) obtain, maintain, protect and enforce intellectual property and other proprietary rights for our current and future technology, inventions, improvements, and know-how we consider important to our business, (b) preserve the confidentiality of our trade secrets, (c) defend and enforce our intellectual property rights, (d) operate without infringing, misappropriating, or violating the intellectual property and other proprietary rights of others, and (e) prevent others from infringing, misappropriating, or violating our intellectual property and other proprietary rights. Our policy is to seek to protect our proprietary position by, among other methods, pursuing and obtaining patent protection in the United States and in jurisdictions outside of the United States related to our proprietary technology, inventions, and improvements that are important to the development and implementation of our business. Our patent portfolio is intended to cover components of our system and algorithms run thereon, their methods of use, and any other inventions that are commercially important to our business. We also rely on trademarks, trade secrets, and know-how to develop and maintain our proprietary position.

As set forth in the tabular form below, as of December 28, 2025, our patent portfolio included 29 granted patents, of which 4 are U.S. patents and 25 are foreign patents, as well as 64 pending patent applications, of which 11 are U.S. patent applications and 53 are foreign patent applications. The granted U.S. patents are expected to expire between February 7, 2037 and May 9, 2039, in each case taking into account awarded patent term adjustments and extensions and assuming payment of all appropriate maintenance, renewal, annuity or other governmental fees. The claims of these owned patents and patent applications are directed toward various aspects of our Pulsenmore System of ultrasound programs. We continue to seek to expand the scope of our patent protection for our technology.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Patent No./Application No.** | **Expected Expiration Date** | **Status** | **Country** |
|  | 2972005 | 12.25.35 | Granted | Canada |
| Device and system for monitoring internal organs of a human or animal | 236484 | 12.25.34 | Granted | Israel |
|  | 3236855 | 12.13.35 | Granted | Spain, France, UK, Italy |
|  | 2965922 | 12.13.35 | Granted | Spain |
|  | 6726193 | 12.13.35 | Granted | Japan |
|  | EPT 56102/2023 | 12.13.35 | Granted | Austria |
|  | 602015086573.1 | 12.13.35 | Granted | Germany |
|  | 10610194 | 2.11.37 | Granted | United States |
| Remotely controlled ultrasound transducer | 2979624 | 3.21.36 | Granted | Canada |
| Remotely controlled ultrasound transducer | 237980 | 3.26.35 | Granted | Israel |
| Remotely controlled ultrasound transducer | 6749933 | 3.21.36 | Granted | Japan |
| Remotely controlled ultrasound transducer | 10361833 | 2.7.37 | Granted | United States |
| Base for an ultrasonic system | 60 2016 037100.6 | 3.21.36 | Granted | Germany |
| Base for an ultrasonic system | EP3273862 | 3.21.36 | Granted | France, UK, Netherlands |
| Complete system for connecting sensors to smart devices | 3018243 | 3.23.37 | Granted | Canada |
| Complete system for connecting sensors to smart devices | 60 2017 088 697.1 | 3.23.37 | Granted | Germany |
| Complete system for connecting sensors to smart devices | EP 3,433,581 | 3.23.37 | Granted | UK |
| Complete system for connecting sensors to smart devices | 244746 | 3.24.36 | Granted | Israel |
| Complete system for connecting sensors to smart devices | 10-2361060 | 3.23.37 | Granted | South Korea |
| Complete system for connecting sensors to smart devices | 10956355 | 2.11.38 | Granted | United States |
| Wearable ultrasonic device | 255098 | 10.17.37 | Granted | Israel |
| Wearable ultrasonic device | 7281460 | 10.7.38 | Granted | Japan |
| Wearable ultrasonic device | 12059294 | 5.9.39 | Granted | United States |
| Complete system for connecting sensors to smart devices | 2019-501778 |  | Pending | Japan |
| Wearable ultrasonic device | 3078302 |  | Pending | Canada |
|  | 18868397 |  | Pending | Europe |
|  | 18/762,334 |  | Pending | United States |
| A system for acquiring ultrasound images of an organ of a human body | 20211262613 |  | Pending | Australia |
| A system for acquiring ultrasound images of an organ of a human body | 3180186 |  | Pending | Canada |
| A system for acquiring ultrasound images of an organ of a human body | 202180032113 |  | Pending | China |
| A system for acquiring ultrasound images of an organ of a human body | 21895454.4 |  | Pending | Europe |
| A system for acquiring ultrasound images of an organ of a human body | 297156 |  | Pending | Israel |
| A system for acquiring ultrasound images of an organ of a human body | 2022-565560 |  | Pending | Japan |
| A system for acquiring ultrasound images of an organ of a human body | 17/920,948 |  | Pending | United States |
| A system for acquiring ultrasound images | 2021262615 |  | Pending | Australia |
| A system for acquiring ultrasound images | 3180176 |  | Pending | Canada |
| A system for acquiring ultrasound images | 202180032196 |  | Pending | China |
| A system for acquiring ultrasound images | 21795275.3 |  | Pending | Europe |
| A system for acquiring ultrasound images | 297159 |  | Pending | Israel |
| A system for acquiring ultrasound images | 17/920,963 |  | Pending | United States |
| A system and a method for allowing a non-skilled user to acquire ultrasound images of internal organs of a human body | 202180032117.6 |  | Pending | China |
| A system and a method for allowing a non-skilled user to acquire ultrasound images of internal organs of a human body | 21797312.2 |  | Pending | Europe |
| A system and a method for allowing a non-skilled user to acquire ultrasound images of internal organs of a human body | 297157 |  | Pending | Israel |
| A system and a method for allowing a non-skilled user to acquire ultrasound images of internal organs of a human body | 2022-565561 |  | Pending | Japan |
| A system and a method for allowing a non-skilled user to acquire ultrasound images of internal organs of a human body | 17/920,951 |  | Pending<br>| United States |
| A system and a method for allowing a non-skilled user to acquire ultrasound images of internal organs of a human body | 2021265595<br>|  | Pending | Australia<br>|
| A system and a method for allowing a non-skilled user to acquire ultrasound images of internal organs of a human body | 3180182 |  | Pending | Canada |
| A system for acquiring ultrasound images of internal body organs | 2021265350 |  | Pending | Australia |
| A system for acquiring ultrasound images of internal body organs | 3180180 |  | Pending | Canada |
| A system for acquiring ultrasound images of internal body organs | 202180032079 |  | Pending | China |
| A system for acquiring ultrasound images of internal body organs | 21796951.8 |  | Pending | Europe |
| A system for acquiring ultrasound images of internal body organs | 297158 |  | Pending | Israel |
| A system for acquiring ultrasound images of internal body organs | 2022-565569 |  | Granted | Japan |
| A system for acquiring ultrasound images of internal body organs | 17/920,963 |  | Pending | United States |
| A system for acquiring ultrasound images of internal organs of a human body | 2021265597 |  | Pending | Australia |
| A system for acquiring ultrasound images of internal organs of a human body | 3180167 |  | Pending | Canada |
| A system for acquiring ultrasound images of internal organs of a human body | 202180032195.6 |  | Pending | China |
| A system for acquiring ultrasound images of internal organs of a human body | 21795277.9 |  | Pending | Europe |
| A system for acquiring ultrasound images of internal organs of a human body | 297160 |  | Pending | Israel |
| A system for acquiring ultrasound images of internal organs of a human body | 2022-565558 |  | Pending | Japan |
| A system for acquiring ultrasound images of internal organs of a human body | 17/920,967 |  | Pending | United States |
| Medical follicles assessment device | 300845 |  | Pending | Israel |
| Medical follicles assessment device | 2022334923 |  | Pending | Australia |
| Medical follicles assessment device | BR1120240034240 |  | Pending | Brazil |
| Medical follicles assessment device | 3229261 |  | Pending | Canada |
| Medical follicles assessment device | 202280066620.8 |  | Pending | China |
| Medical follicles assessment device | 22860777.6 |  | Pending | Europe |
| Medical follicles assessment device | 2024-512210 |  | Pending | Japan |
| Medical follicles assessment device | 10-2024-7007706 |  | Pending | Korea |
| Medical follicles assessment device | 18/685,031 |  | Pending | United States |
| Improved medical follicles assessment device | 19/099,920 |  | Pending | United States |
| Automated apparatus and process for stacking and bonding acoustic stack components of ultrasonic transducer | 296668<br>|  | Granted | Israel |
| Medical follicles assessment device with ergonomic grip | 202380078226.0<br> 23897051.1<br> 2506018.7<br> 2025-526665<br> 19/120,046 |  | Pending<br> Pending<br> Pending<br> Pending<br> Pending | China<br> Europe<br> UK<br> Japan<br> United States |
| Medical follicles assessment device with ergonomic grip | 298736 |  | Pending | Israel |
| Automated dicing process for acoustic stack elements of ultrasonic transducer | 313373 |  | Pending | Israel |
| Method and System for Retroactive M-Mode and BPP | 310480 |  | Pending | Israel |
| Method and System for Retroactive M-Mode and BPP | IL2025/050033 |  | Pending | PCT-WIPO |

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| | | | |
|:---|:---|:---|:---|
| Fertility Kit | 311869 | Pending | Israel |
|  | 19/089,757 | Pending | Unites States |
| Lens assembly apparatus | 316834 | Pending | Israel |
| Audio-guided ultrasound | 313100 | Pending | Israel |
| Ovulation monitor | 307886 | Pending | Israel |
| Fertility status monitor | PCT/IL2024/050965 | Pending | PCT-WIPO |
| A robotic system for adhering an acoustic stack to an acoustic backing block | 310481 | Pending | Israel |
| Apparatus and method | 293427 | Pending | Israel |
| for detecting fluid-related | 18/868,828 | Pending | United States |
| conditions in a patient |  |  |  |

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Typically, we initially submit applications to the Israeli Patent Office, then, we continue by filing international patent applications under the Patent Cooperation Treaty (PCT), which is an international patent law treaty that provides a unified procedure for filing a single initial patent application to later seek patent protection for an invention in any number of the member states of the PCT. A PCT application acts as a placeholder allowing the applicant to seek protection in any of the member states through national-phase applications.

We also have registered design patents and patent applications as well as trademark rights in our name, logo and other brand elements, including trademark registrations for select marks in the United States and other jurisdictions around the world, including "PULSENMORE (including the logo design)".

We pursue the registration of domain names for websites that we use and that we consider material to the marketing of our products, including the Pulsenmore.com domain.

We generally seek to enter into confidentiality agreements and proprietary rights agreements with our employees and consultants and to control access to, and distribution of, our proprietary information. However, we cannot guarantee that all applicable parties have executed such agreements. Such agreements can also be breached, and we may not have adequate remedies for any such breaches.

Intellectual property laws, procedures, and restrictions provide only limited protection, and any of our intellectual property rights may be challenged, invalidated, circumvented, infringed, misappropriated, or otherwise violated. Furthermore, the laws of certain countries do not protect intellectual property and proprietary rights to the same extent as the laws of the United States, and we therefore may be unable to protect our proprietary technology in certain jurisdictions.

Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy or obtain and use our technology to develop products and services with the same functionality as our products. Policing unauthorized use of our technology is difficult. Our competitors could also independently develop technologies like ours, and our intellectual property rights may not be broad enough for us to prevent competitors from selling products and services incorporating those technologies. For more information regarding the risks relating to intellectual property, see "Item 3.B. Risk Factors — Risks Related to Our Intellectual Property."

**Government Regulations**

Our ultrasound technology is subject to extensive regulation in the United States by the FDA and by corresponding state regulatory agencies and authorities. Likewise, we are subject to extensive medical device regulations and requirements in other countries, such as Israel, the EU and in other jurisdictions that we operate in. These regulations pertain to the development, evaluation, manufacturing, suppliers, customer complaints, labeling, privacy, sale, advertising, clinical trials, promotion, distribution, importing and exporting, shipping and servicing of our Pulsenmore Products. The FDA and other regulatory authorities oversee the suitability and effectiveness of our quality system, record-keeping procedures, safety alerts, recalls, market withdrawals, removals and field corrective actions, post-market surveillance, including reporting of deaths or serious injuries and malfunctions that, if they were to occur, could lead to death or serious injury.

In some jurisdictions, such as the United States, the European Union (under MDR), South Korea and Israel, we must complete an application or certification process with the relevant regulator or notified body, which includes submitting the results of clinical trials or investigations for their review. In other jurisdictions, such as certain countries in Asia and South America, we are required to self-certify that our devices meet the applicable standards (which may include the completion of satisfactory clinical trials) but without the requirement of a formal application with, or review of clinical trials by, the relevant regulatory body. In most of the countries we are subject to audits.

In addition to the requirements regarding product clearance or certifications, many countries also impose product standards, packaging requirements, environmental requirements, labeling requirements and import and export restrictions on our products. Each country also has its own tariff regulations, duties and tax requirements. Failure to comply with applicable regulatory requirements may result in fines, suspension or withdrawal of marketing authorizations, product recalls, seizure of products, operating restrictions, criminal prosecution, or other consequences.

Pulsenmore ES is an approved medical device in Israel, Brazil, Colombia and Australia and has CE certification for the EU. During 2020, we submitted a 510(k) application to the FDA however the FDA indicated that a *de novo* application is the proposed method of application for Pulsenmore ES. Following extensive dialogue with the FDA, in December 2024, we submitted a *de novo* application to the FDA for authorization of the Pulsenmore ES, and at the end of October 2025, we received FDA approval of the Pulsenmore ES as a Class II device to enable the acquisition of ultrasound images that allow interpreting healthcare providers to determine fetal heartrate.

**<u>United States</u>**

In the United States, the FDA and its implementing regulations govern the following activities to ensure that medical products distributed within the United States are safe and effective for their intended uses:

● product design and development;

● product testing, including pre-clinical and clinical testing;

● product manufacturing;

● product safety and efficacy;

● product labeling and packaging;

● product installation and storage;

● sterilization of product;

● record keeping;

● premarket clearance or approval;

● advertising and promotion;

● manufacturing and production;

● product sales and distribution;

● import, export and shipping;

● establishment registration and device listing;

● recalls, field safety corrective actions and post-market surveillance; and

● privacy and cyber security.

**FDA's Premarket Clearance and Approval Requirements**

Unless an exemption applies, each medical device we wish to commercially distribute in the United States requires 510(k) clearance, *de novo* approval, or premarket approval (PMA). The FDA classifies medical devices into one of three classes - Class I, Class II or Class III - depending on the degree of risk associated with each medical device and the extent of manufacturer and regulatory control needed to ensure safety and effectiveness. Class I includes devices with the lowest risk to the patient and are those for which safety and effectiveness can be assured by adherence to the FDA's General Controls for medical devices, which include compliance with the applicable portions of the QSR, facility registration and product listing, reporting of adverse medical events, and truthful and non-misleading labeling, advertising, and promotional materials. Class II devices are subject to the FDA's General Controls, and Special Controls as deemed necessary by the FDA to ensure the safety and effectiveness of the device. These Special Controls can include performance standards, post-market surveillance, customer registries and FDA guidance documents. While most Class I devices are exempt from the 510(k) premarket notification requirement, manufacturers of most Class II devices are required to submit to the FDA a premarket notification under Section 510(k) of the FDA requesting permission to commercially distribute the device. The FDA's permission to commercially distribute a device subject to a 510(k) premarket notification is generally known as 510(k) clearance.

**510(k) Clearance Pathway**

When a 510(k) clearance is required, a premarket notification must be submitted to the FDA to demonstrate that the proposed device is "substantially equivalent" to a legally marketed predicate device. This process typically takes three to twelve months but can be longer if additional information, including clinical data, is needed. The FDA reviews the submission to determine if it contains all necessary information. If accepted, the FDA conducts a substantive review, which by statute should be completed within 90 days, though it often takes longer. If the device is found to be substantially equivalent, it receives clearance for commercial marketing.

If the FDA determines that the device is not substantially equivalent or is classified as Class III, the sponsor must meet the more rigorous premarket approval (PMA) requirements or seek reclassification through the de novo process. Any significant modifications to a 510(k)-cleared device require a new 510(k) clearance or possibly a PMA application. The FDA can review and disagree with a manufacturer's determination regarding the need for a new submission. Recent FDA proposals aim to modernize the 510(k) process, potentially increasing requirements for clinical data and extending review periods.

***De Novo Classification Request***

 ****

The *de novo* classification request is an alternative pathway for classifying novel medical devices that do not have a legally market predicated device, but the technology was created for other applications with some changes. This alternative pathway allows for the classification of devices into Class I or II based on a risk-based evaluation. There are two main options for submitting a *de novo* request. A manufacturer can submit a petition for direct *de novo* review if the manufacturer is unable to identify an appropriate predicate device and the new device or new use of the device presents a moderate or low risk.

The second option for submitting a *de novo* request is the option we have used in our FDA application for the Pulsenmore ES, submitted to the FDA in December 2024 and approved in October 2025 and is only available to a company after a not substantially equivalent determination (NSE) is made in response to a 510(k) submission. A subsequent request for *de novo* classification must be made by the sponsor to the FDA within 30 days of receipt of the NSE. During 2020, we submitted a 510(k) application to the FDA however the FDA however the FDA made an NSE determination indicating that a *de novo* application is the proposed method of application for Pulsenmore ES.

**Premarket Approval Pathway**

A PMA must be submitted to the FDA if the device cannot be cleared through the 510(k) process. A PMA must be supported by extensive data, including, but not limited to, technical, preclinical, clinical trials, manufacturing and labeling, to demonstrate the safety and effectiveness of the device to the FDA's satisfaction.

**Clinical Trials**

Clinical trials are almost always required to support a PMA or a *de novo* request and are sometimes required to support a 510(k) submission. All clinical investigations of devices to determine safety and effectiveness must be conducted in accordance with the FDA's investigational device exemption, or IDE, regulations which govern investigational device labeling, prohibit promotion of the investigational device, and specify an array of recordkeeping, reporting and monitoring responsibilities of study sponsors and study investigators.

In addition, the study must be approved by, and conducted under the oversight of, an IRB for each clinical site. If the device presents a non-significant risk (like in our case) to the patient, a sponsor may begin the clinical trial after obtaining approval for the trial by one or more IRBs without separate approval from the FDA, but must still follow abbreviated IDE requirements, such as monitoring the investigation, ensuring that the investigators obtain informed consent, and labeling and record-keeping requirements.

During a study, the sponsor is required to comply with the applicable FDA requirements, including, for example, trial monitoring, selecting clinical investigators and providing them with the investigational plan, ensuring IRB review, adverse event reporting, record keeping and prohibitions on the promotion of investigational devices or on making safety or effectiveness claims for them. The clinical investigators in the clinical study are also subject to FDA's regulations and must obtain customer informed consent, rigorously follow the investigational plan and study protocol, control the disposition of the investigational device, and comply with all reporting and recordkeeping requirements. Additionally, after a trial begins, we, the FDA or the IRB could suspend or terminate a clinical trial at any time for various reasons, including a belief that the risks to study subjects outweigh the anticipated benefits.

**Post-Market Regulation**

After the FDA permits a device to enter commercial distribution, numerous regulatory requirements apply, including, but not limited to:

● the QSR which requires manufacturers, including third-party manufacturers, to follow stringent design, testing, control, documentation and other quality assurance procedures during all aspects of the manufacturing process;

● establishment registration and device listing with the FDA;

● clearance or approval of certain product modifications to 510(k)-cleared or PMA-approved devices;

● labeling regulations and FDA prohibitions against the promotion of products for uncleared, unapproved or "off-label" uses;

● advertising and promotion requirements;

● medical device reporting regulations, which require that manufacturers report to the FDA if their devices may have caused or contributed to deaths or serious injuries or malfunctioned in ways that would likely cause or contribute to deaths or serious injuries if the malfunctions were to recur;

● medical device correction, removal and recall reporting regulations, which require the manufacturers to report to the FDA corrections, removals and recalls if undertaken to reduce a risk to health posed by the device or to remedy a violation of the FDA that may present a risk to health;

● the FDA's recall authority, whereby the agency can order device manufacturers to recall from the market a product that is in violation of governing laws and regulations; and

● post-market surveillance regulations, which apply when deemed by the FDA to be necessary to protect the public health or to provide additional safety and effectiveness data for the devices.

We may be subject to similar foreign laws that may include applicable post-marketing requirements such as safety surveillance. We are required to manufacture our products in compliance with the QSR and the international quality-management standard for medical systems ISO 13485:2016. The QSR and ISO 13485 cover the methods and documentation of the design, testing, control, manufacturing, production, processes, controls, labeling, quality assurance, packaging, storage, distribution, shipping, installation and servicing of our products. The QSR also requires, among other things, maintenance of a device master file, device history file and complaint files. As a manufacturer, our facilities, records and manufacturing processes are subject to periodic scheduled or unscheduled inspections by the FDA and other regulators. Our failure to maintain compliance with the QSR or other applicable regulatory requirements could result in the shut-down of, or restrictions on, our manufacturing operations and the recall or seizure of our products. The discovery of previously unknown problems with any of our products, including unanticipated adverse events or adverse events of increasing severity or frequency, whether resulting from the use of the device within the scope of its clearance or off-label by a physician in the practice of medicine, could result in restrictions on the device, including the removal of the product from the market or voluntary or mandatory device recalls.

The FDA and foreign regulatory authorities have broad post-market and regulatory enforcement powers. We are subject to unannounced inspections by the FDA and foreign regulatory authorities to determine our compliance with the QSR and other regulations, and these inspections may include the facilities of our contract manufacturers.

Failure to comply with applicable regulatory requirements can result in enforcement action by the FDA, which may include any of the following sanctions:

● warning or untitled letters, fines, injunctions, consent decrees and civil penalties;

● unanticipated expenditures, repair, replacement, refunds, withdrawals, recalls, import alerts, administrative detention and refusal or seizure of products;

● operating restrictions, partial suspension or total shutdown of production;

● refusing or delaying requests for 510(k) clearance of new products or modified products or new intended uses;

● withdrawing 510(k) clearance that have already been granted;

● refusing to grant export approvals; and

● criminal prosecution.

The FDA also has the authority to require us to repair, replace or refund the cost of any medical device that we have manufactured or distributed. If any of these events were to occur, they could have a material adverse effect on our business.

We are also subject to a wide range of federal, state and local laws and regulations, including those related to the environment, health and safety, land use and quality assurance. We believe that we are in compliance with these laws and regulations as currently in effect, and our compliance with such laws will not have a material adverse effect on our capital expenditures, earnings and competitive and financial position.

**State Corporate Practice of Medicine Laws**

Our clinics' operations and our employment of physicians who run clinical trials and post-market studies at such clinics may be subject to various state laws, commonly referred to as corporate practice of medicine laws, which are intended to prevent unlicensed persons from practicing medicine or otherwise interfering with or influencing a physician's professional judgment in providing professional services. These laws vary from state to state and are subject to broad interpretation and enforcement by state regulators. A determination of non-compliance against us could lead to adverse judicial or administrative action, civil or criminal penalties, receipt of cease-and-desist orders from state regulators, and/or restructuring of these arrangements.

**Other Healthcare Laws**

Although none of our products or procedures using our products are currently covered by any state or federal government healthcare programs, or any private commercial payor, we may be subject to a number of foreign, federal and state laws and regulations that may restrict our business practices, including, without limitation, anti-kickback, self-referral, false claims, and transparency laws and regulations related to payments and other transfers of value made to physicians and other health care professionals. The US government has interpreted these laws broadly as they apply to the marketing and sales activities of manufacturers and distributors. Companies targeted in such prosecutions and in civil litigation have paid substantial fines, penalties and settlements in the hundreds of millions of dollars or more, have been forced to implement extensive corrective action plans, can be excluded from federal health care programs, and have often become subject to consent decrees, settlement agreements or corporate integrity agreements severely restricting the manner in which they conduct their business. Violations of any of these laws may result in administrative, civil and criminal penalties, disgorgement, imprisonment and contractual damages. Many U.S. states and countries outside the United States have similar fraud and abuse statutes or regulations that may be broader in scope than the U.S. federal laws, and may apply regardless of payor, in addition to items and services reimbursed under government programs.

**Anti-corruption Laws and Regulations**

Our global business is subject to the FCPA and other anti-corruption laws and regulations applicable in the jurisdictions where we operate. The FCPA prohibits U.S. businesses and their representatives from offering to pay, paying, promising to pay or authorizing the payment of money or anything of value to a foreign official in order to influence any act or decision of the foreign official in his or her official capacity or to secure any other improper advantage in order to obtain or retain business. The FCPA also obligates companies whose securities are listed in the U.S. to comply with accounting provisions requiring us to maintain books and records, which in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the corporation, including international subsidiaries, if any, and to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements. The scope of the FCPA includes interactions with certain healthcare professionals in many countries. Laws and regulations applicable to our business outside the U.S. prohibit both domestic and international bribery, as well as bribery across both public and private sectors., all of which are subject to evolving interpretations.

**<u>European Union</u>**

The EU has adopted specific regulations and directives regulating the design, manufacture, clinical investigations, conformity assessment, labeling and adverse event reporting for medical devices, which are currently being replaced by regulations. EU directives must be implemented into the national laws of the EU member states and national laws may vary from one member state to another while EU regulations are directly applicable in all the EU member states (i.e., without the need for adoption of EU member state laws implementing them).

Devices that comply with the essential requirements of the EU Medical Devices Directive (Directive 93/42/EEC), or MDD, will be entitled to bear CE conformity marking, indicating that the device conforms with the essential requirements of the MDD and, accordingly, can be commercially distributed throughout the member states of the European Union, the member states of the European Economic Area, or EEA (which is comprised of the 27 EU countries, plus Norway, Liechtenstein, and Iceland), and countries that have entered into a Mutual Recognition Agreement. The method of assessing conformity varies depending on the type and (risk) class of the product but normally involves a combination of self-assessment by the manufacturer and a third-party assessment by a notified body, an independent organization designed by an EU country to conduct the conformity assessment. This third-party assessment may consist of an audit of the manufacturer's quality system and specific testing of the manufacturer's device. An assessment by a notified body in one member state of the European Union, the EEA or a country that has entered into a Mutual Recognition Agreement is required in order for a manufacturer to commercially distribute the product throughout these countries. European Standardization Committees and the International Organization for Standardization, or ISO, have promulgated voluntary harmonized standards. Compliance with applicable standards establishes the presumption of conformity with the essential requirements for a CE Marking.

As a general rule, demonstration of conformity of medical devices and their manufacturers with the essential requirements must be based, among other things, on the evaluation of clinical data supporting the safety and performance of the products during normal conditions of use. Specifically, a manufacturer must demonstrate that the device achieves its intended performance during normal conditions of use, that the known and foreseeable risks, and any adverse events, are minimized and acceptable when weighed against the benefits of its intended performance, and that any claims made about the performance and safety of the device are supported by suitable evidence. All manufacturers placing medical devices into the market in the EEA must comply with the EU Medical Device Vigilance System. Under this system, incidents must be reported to the relevant authorities of the Member States of the EEA, and manufacturers are required to take Field Safety Corrective Actions, or FSCAs, to reduce a risk of death or serious deterioration in the state of health associated with the use of a medical device that is already placed on the market. An incident is defined as any malfunction or deterioration in the characteristics and/or performance of a device, as well as any inadequacy in the labeling or the instructions for use which, directly or indirectly, might lead to or might have led to the death of a customer or user or of other persons or to a serious deterioration in their state of health. An FSCA may include the recall, modification, exchange, destruction or retrofitting of the device. FSCAs must be communicated by the manufacturer or its legal representative to its customers and/or to the end users of the device through Field Safety Notices.

On May 26, 2021, the EU Medical Devices Regulation (Regulation 2017/745), or the MDR, entered into force, which repeals and replaces the MDD. Unlike directives, which must be implemented into the national laws of the EEA member states, regulations are directly applicable (i.e., without the need for adoption of EEA member state laws implementing them) in all EEA member states and are intended to eliminate current differences in the regulation of medical devices among EEA member states. The MDR, among other things, is intended to establish a uniform, transparent, predictable and sustainable regulatory framework across the EEA for medical devices and ensure a high level of safety and health while supporting innovation. The MDR may have an impact on the way we design and manufacture products and the way we conduct our business in the EEA.

In May 2024, we submitted an application through our Notified Body to transition to MDR standards and received approval to extend the use of the existing CE approval until December 31, 2028 and subject to periodic review according to law.

On August 26, 2025, we received from a European certification body an EU Quality Management System Certificate for Regulation (CE MDR), valid until August 19, 2030. The certificate is a certification with a broad indication issued to us for ultrasound imaging devices and associated software applications. Accordingly, we are authorized, according to the standard that has come into effect in Europe, to mark the Pulsenmore ES with the CE Mark and to market it in Europe, based on the new standard (CE MDR).

Several member states of the EEA have voluntarily adopted laws and regulations that mirror those of the European Union with respect to medical devices. Other countries, such as Switzerland, have entered into Mutual Recognition Agreements and allow the marketing of medical devices that meet European Union requirements.

**<u>Israel</u>**

Our operations are subject to permits from the Ministry of Health, or the MoH, on two levels:

First, the registration of medical devices, importing and marketing the medical devices and accessories, and issuing the documentation necessary for the export of medical devices from Israel is governed by the Medical Devices Law, 5712 – 2012, or the Medical Devices Law. The Medical Devices Law sets forth obligations of registration of medical devices in Israel. Under the Medical Devices Law, medical devices may be manufactured and marketed in Israel only if they are first registered with the Medical Devices Department of the MOH, also referred to as the "AMAR", which manages a registry for medical devices. In April 2020, we received AMAR approval for Pulsenmore ES and in November 2021, we received AMAR approval for Pulsenmore FC. The AMAR approvals for the Pulsenmore ES and Pulsenmore FC are valid until December 31, 2028. If our respective AMAR approvals are not renewed prior to their expiration, then we will not be permitted to market and sell the Pulsenmore ES or Pulsenmore FC, as applicable, in Israel.

Second, pertaining to research and development. Clinical trials in humans are subject to the approval of the Helsinki Committee (an ethics committee) of the institution conducting the trial, which is governed by the Public Health Regulations (Trials in Human Beings), 1980, including all amendments until 1999, or the Trials in Human Subjects Regulations and are conducted in accordance with the Guidelines for Clinical Trials in Human Subjects issued by the MOH, or the Guidelines, and the guidelines of the Declaration of Helsinki, or any other approval required by the MOH. According to the Trials in Human Subjects Regulations and the Guidelines, the Helsinki Committee must plan and approve every experimental process that involves human beings. The institutional Helsinki Committee acts in the medical institution where the trial is performed and is the body that approves and supervises the entire trial process. In practice, the physician, who is the principal investigator, submits a trial protocol to the committee on behalf of the requesting party. The committee forwards its decisions regarding the requests for clinical trials that were approved by the committee to the manager of the medical institute and the manager has the authority to approve the requests, and in some cases the additional approval of the MOH will be required. According to the procedure for medical trials in human beings set forth by the MOH, the Helsinki Committee will not approve performance of a clinical trial, unless it is absolutely convinced that the following conditions, among others, are fulfilled: (i) the anticipated benefits for the participant in the clinical trial and to the requesting party to justify the risk and the inconvenience involved in the clinical trial to its participant; (ii) the available medical and scientific information justifies the performance of the requested clinical trial; (iii) the clinical trial is planned in a scientific manner that enables a solution to the tested question and is described in a clear, detailed, and precise manner in the protocol of the clinical trial, conforming with the Declaration of Helsinki; (iv) the risk to the participant in the clinical trial is as minimal as possible; (v) optimal monitoring and follow-up of the participant in the clinical trial; (vi) the initiator, the principal investigator and the medical institute are capable and undertake to allocate the resources required for adequate execution of the clinical trial, including qualified personnel and required equipment; and (vii) the nature of the commercial agreement with the principal investigator and the medical institute does not impair the adequate performance of the clinical trial.

All phases of clinical trials conducted in Israel must be conducted in accordance with the Trials in Human Subjects Regulations, including amendments and addenda thereto, the Guidelines, and the International Conference for Harmonized Tripartite Guideline for Good Clinical Practice. The Trials in Human Subjects Regulations and the Guidelines stipulate that a medical study on humans will only be approved after the Helsinki Committee at the hospital intending to perform the study has approved the medical study and notified the relevant hospital director in writing. In addition, certain clinical studies require the approval of the MOH. The relevant hospital director, and the MOH, if applicable, also must be satisfied that the study is not contrary to the Declaration of Helsinki or to other regulations.

**Data Protection**

Our business involves the use, storage and transmission of information about our employees, our customers and, to a certain extent, clients of our customers. In the course of our operations, we may gain access to confidential customer information, including nonpublic personal data. We are subject to numerous U.S. and foreign jurisdiction laws and regulations designed to protect this information. With the recent increase in publicity regarding data breaches resulting in improper dissemination of customer information, many states have passed laws regulating the actions that a business must take if it experiences a data breach, such as prompt disclosure to affected customers, governmental entities, and the media. In addition to data breach notification laws, some states have enacted statutes and rules requiring businesses to protect certain types of personal information they hold or to otherwise comply with certain specified data security requirements for personal information. We intend to protect all personal information and to comply with all applicable laws regarding the protection of such information.

We are subject to a variety of laws and regulations in the United States and abroad regarding privacy and data protection, some of which can be enforced by private parties or government entities and some of which provide for significant penalties for non-compliance. There are numerous laws in the countries in which we operate regarding privacy and the storage, sharing, use, processing, disclosure and protection of this kind of information, the scope of which are constantly changing, and in some cases, inconsistent and conflicting and subject to differing interpretations, as new laws of this nature are proposed and adopted and we currently, and from time to time, may not be in technical compliance with all such laws. For example, in the EEA, the GDPR allows for a private right of action, imposes stringent data protection requirements on companies established in the EEA or companies that offer goods or services to, or monitor the behavior of, individuals in the EEA. The GDPR establishes a robust framework of data subjects' rights and imposes onerous accountability obligations on companies, with penalties for noncompliance of up to the greater of €20 million or 4% of annual global revenue from the preceding fiscal year. Among other requirements, the GDPR regulates transfers of personal data subject to the GDPR to third countries that have not been found to provide adequate protection to such personal data, including the United States, and the efficacy and longevity of current transfer mechanisms between the EU and the United States remains uncertain.

In the United States, certain of our operations, such as our on-site clinic, may be subject to HIPAA, which imposes privacy, security, and breach reporting obligations with respect to protected health information, or PHI, upon covered entities such as certain healthcare providers, and their respective business associates, entities or individuals that create, receive, maintain or transmit PHI in connection with providing a service for or on behalf of a covered entity. Under HIPAA, covered entities must enter into agreements with their business associates, which require the business associates to protect any PHI provided by the covered entity from improper use or disclosure. HIPAA requires the reporting of certain breaches of PHI to the U.S. Department of Health and Human Services, or HHS, affected individuals, and, if a breach affects 500 or more individuals, the media. Covered entities must follow standards for the privacy of PHI, which limit the use and disclosure of written and oral communications, including those in electronic form. In addition, HIPAA's security standards require covered entities to ensure the confidentiality, integrity, and availability of all electronic PHI it creates, receives, maintains or transmits, to protect against reasonably anticipated threats or hazards to the security of such information and to protect such information from unauthorized uses and disclosures. There are significant civil and criminal fines and other penalties that may be imposed for HIPAA violations. A covered entity is also liable for civil monetary penalties for a violation that is based on an act or omission of any of its agents, which may include business associates. Under HIPAA, state attorneys general have the authority to file civil actions for damages or injunctions in federal courts to enforce HIPAA and seek attorneys' fees and costs associated with pursuing federal civil actions.

Various U.S. state legislatures have announced intentions to consider privacy legislation and U.S. state legislatures such as California have already passed and enacted privacy legislation. For example, the CCPA requires disclosures to California customers, imposes rules for collecting or using information about minors, affords California customers the ability to opt out of the sale of their data and of certain disclosures of personal information and also establishes significant penalties for noncompliance. In addition, the CPRA was passed in November 2020 and will take effect in January 2023 (with a look back to January 2022). The CPRA will significantly modify the CCPA, including by expanding customers' rights with respect to certain sensitive personal information. The CPRA also creates a new state agency that will be vested with authority to implement and enforce the CCPA and the CPRA. New legislation proposed or enacted in a number of states impose, or have the potential to impose, additional obligations on companies that collect, store, use, retain, disclose, transfer and otherwise process confidential, sensitive and personal information, and will continue to shape the data privacy environment nationally. State laws are changing rapidly and there is discussion in Congress of a new federal data protection and privacy law to which we would become subject if it is enacted. In addition, governmental agencies like the Customer Financial Protection Bureau and the Federal Trade Commission, or the FTC, have adopted, or are considering adopting, laws and regulations concerning personal information and data security. Failing to take what the FTC perceives to be appropriate steps to keep personal information secure may result in the FTC bringing a claim that a company has engaged in unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act of 1914, as amended, or the FTC Act. The FTC expects a company's data security measures to be reasonable and appropriate in light of the sensitivity and volume of customer information it holds, the size and complexity of its business, and the cost of available tools to reduce vulnerabilities. In addition, state customer protection laws, which may or may not be modeled on the FTC Act, may provide state-law causes of action for allegedly unfair or deceptive practices, among other things, including causes of action for alleged data privacy violations.

**Human Capital Resources**

Our key human capital management objectives are to attract, retain and develop the highest quality talent throughout our company. To support these objectives, we strive to provide our employees good working conditions and competitive pay, as well as a wide range of benefits programs to eligible employees. We continuously evaluate our benefits programs and policies to meet present and future employee needs and desires. These programs and policies are intended to ensure the well-being of our employees. Programs and policies applicable to our employees generally include, but are not limited to, benefits programs, equity compensation plans, flexible work schedules, diversity and inclusion initiatives, professional development opportunities, paid time-off policies and recognition and rewards programs.

As of December 28, 2025, we have seven senior management positions, which includes our Chief Executive Officer and three managers reporting to the CEO, all of whom are engaged on a full-time basis. As of December 28, 2025, we had 62 employees in full-or part-time capacities, 53 of whom are located in Israel.

None of our employees are represented by labor unions or covered by collective bargaining agreements. We believe that we maintain good relations with all our employees.

All of our employment agreements include customary provisions with respect to non-competition, assignment to us of intellectual property rights developed in the course of employment and confidentiality. Our consulting agreements with our representatives and our partners include provisions with respect to assignment to us of intellectual property rights developed in the course of their engagement as well as confidentiality. The enforceability of such provisions may be limited under applicable law.

**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.

**C. Organizational Structure**

Our corporate structure consists of Pulsenmore Ltd., one wholly owned subsidiary in Delaware, Pulsenmore Americas LLC and a wholly owned Korean subsidiary, Pulsenmore Korea Ltd.

**D. Property, Plant and Equipment**

We are headquartered in Ramat Gan, Israel while our production line is located in Omer, Israel. In March 2022, we relocated our operations in central Israel to a new office building in Ramat Gan, pursuant to a lease agreement entered into in November 2021. The leased office space in Ramat Gan covers 390 square meters, with monthly rental payments estimated at approximately NIS 52,000 (approximately $14,000). The lease term is three years, with an option for a three-year extension. In November 2024, we extended the lease for an additional 24 months, starting from January 1, 2025. Under the extension terms, the monthly rental payments are estimated at approximately NIS 48,000 (approximately $13,000). In January 2021, we entered into a lease agreement for our production line in Omer. In July 2023 we signed an addendum to the lease agreement. The leased space in Omer covers 935 square meters, with monthly rental payments estimated at approximately NIS 42,000 (approximately $11,300). The lease term is two years, with an option for a one-year extension.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

Not applicable.

**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***

 ****

We are an emerging medical device company focused on the research, development, manufacture, marketing, and sale of innovative, non-invasive portable ultrasound solutions that provide significant healthcare benefits by utilizing next-generation technology for home use. We currently have two primary products: the Pulsenmore ES and the Pulsenmore FC and an additional third portable ultrasound solution that is in earlier developmental stages, the Pulsenmore MC. We collectively refer to our products as the "Pulsenmore Products". The Pulsenmore Products open the door to a new market in the field of ultrasound exams – performing home scans in a way that enables home use of ultrasound systems in gynecology as well as various other fields such as pulmonary, cardiology, orthopedic, kidney, liver, urine bladder and more.

For more information regarding our business and operations, see the section entitled "Business" below.

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

**A. Operating Results**

***Components of Operating Results***

***Sales***

 **

Our revenues were NIS 9.7 million (approximately $2.6 million), NIS 6.2 million (approximately $1.7 million) and NIS 10.8 million (approximately $3 million) for the years ended December 31, 2024, 2023 and 2022, respectively. Our revenues were NIS 4 million (approximately $1.2 million) and NIS 4.4 million (approximately $1.3 million) for the six months ended June 30, 2025 and 2024, respectively.

We primarily derive revenue from the sale of our Pulsenmore ES product. We expect revenue to increase over time as we expand our customer base and product offering.

As of December 31, 2024 and June 30, 2025, we operate in a single business segment.

***Cost of Sales***

 ****

Our cost of sales was NIS 6.1 million (approximately $1.7 million), NIS 4 million (approximately $1.1 million) and NIS 5.7 million (approximately $1.6 million) for the years ended December 31, 2024, 2023 and 2022, respectively. Our cost of sales was NIS 2.5 million (approximately $0.8 million) and NIS 2.8 million (approximately $0.8 million) for the six months ended June 30, 2025 and 2024, respectively.

Cost of sales mainly consists of raw materials and components used in the manufacturing of our products, shipping and handling costs, salary and related expenses of headcount related to production, employee-related expenses and related overhead.

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

Our research and development expenses were NIS 20.1 million (approximately $5.5 million), NIS 31.4 million (approximately $8.6 million) and NIS 29.6 million (approximately $8.1 million) for the years ended December 31, 2024, 2023 and 2022, respectively. Our research and development expenses were NIS 8 million (approximately $2.4 million) and NIS 9.8 million (approximately $2.9 million) for the six months ended June 30, 2025 and 2024, respectively.

Research and development expenses 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, raw materials and consumables, consulting fees and intellectual property expenses, such as patent application and maintenance expenses. We received royalty-bearing grants, which represents participation of the IIA in approved and KORIL programs for research and development. 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.

***Sales and marketing expenses***

Our sales and marketing expenses were NIS 10.3 million (approximately $2.8 million), NIS 9.4 million (approximately $2.6 million) and NIS 8.9 million (approximately $2.4 million) for the years ended December 31, 2024, 2023 and 2022, respectively. Our sales and marketing expenses were NIS 6 million (approximately $1.8 million) and NIS 4.2 million (approximately $1.2 million) for the six months ended June 30, 2025 and 2024, respectively.

Sales and marketing expenses include employee-related expenses, such as salaries share-based compensation, depreciation expenses, office rent and maintenance expenses relating to contracted services, such as subcontractor, advertising and exhibition expenses, public relations and websites 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 expenses were NIS 15.3 million (approximately $4.2 million), NIS 17 million (approximately $4.6 million) and NIS 12.8 million (approximately $3.5 million) for the years ended December 31, 2024, 2023 and 2022, respectively. Our general and administrative expenses were NIS 8.1 million (approximately $2.4 million) and NIS 7.6 million (approximately $2.2 million) for the six months ended June 30, 2025 and 2024, respectively.

General and administrative expenses 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.

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

 ****

Our financial expense (income), net were NIS (5.4) million (approximately $1.5 million), NIS 2.9 million (approximately $0.8 million) and NIS (24.1) million (approximately $6.6 million) for the years ended December 31, 2024, 2023 and 2022, respectively. Our financial expense (income), net were NIS 2.5 million (approximately $0.8 million) and NIS (4.2) million (approximately $1.2 million) for the six months ended June 30, 2025 and 2024, respectively.

The financial expenses (income) net, consisted mainly of interest from short-term bank deposits, exchange rate differences income, interest expense on lease liabilities, 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, 2024, our net operating loss carryforwards for tax purposes were approximately NIS 118 million (approximately $32.6 million). 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.

***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 six months ended June 30, 2025 to the six months ended June 30, 2024**

 ****

**Results of Operations**

---

| | | | |
|:---|:---|:---|:---|
| | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
| | **2024** | **2025** | **2025** |
| <br>(in thousands) | **NIS** | **NIS** | **Convenience**<br> **translation into**<br> **U.S. dollars** |
| Revenues | 4350 | 3999 | 1186 |
| Cost of revenues | 2794 | 2542 | 754 |
| Gross profit | 1556 | 1457 | 432 |
| Research and development expenses, net | 9845 | 8029 | 2382 |
| Sales and marketing expenses | 4206 | 5966 | 1770 |
| General and administrative expenses | 7555 | 8083 | 2398 |
| Operating loss | (20050) | (20621) | (6118) |
| Finance expense (income), net | (4207) | 2535 | 751 |
| Tax expense (income) | 53 | 1 |  |
| Total comprehensive loss | (15896) | (23157) | (6869) |
| Loss attributable to holders of ordinary Shares | (15896) | (23157) | (6869) |

---

 **

***Revenues***

 **

Our revenues for the six months ended June 30, 2025 amounted to NIS 4 million (approximately $1.2 million), representing an decrease of NIS 0.4 million (approximately $0.1 million) or 9.1%, compared to NIS 4.4 million (approximately $1.3 million) for the six months ended June 30, 2024. The decrease was primarily driven by a lower volume of Pulsenmore ES units sold to our main customer, Clalit, compared to the same period last year. In the six months ended June 30, 2025 the Company sold to Clalit 508 less units than in the six months ended June 30, 2024, Additionally, for the six months ended June 30, 2024, the Company supplied 240 units to GE Precision.

***Cost of Revenues***

 ****

Our cost of revenues for the six months ended June 30, 2025 amounted to NIS 2.5 million (approximately $0.8 million), representing a decrease of NIS 0.3 million (approximately $0.1 million) or 10.7%, compared to NIS 2.8 million (approximately $0.8 million) for the six months ended June 30, 2024. The decrease resulted mainly from a higher volume of Pulsenmore ES units sold during the same period last year.

***Gross Profit***

 ****

Our gross profit for the six months ended June 30, 2025 amounted to NIS 1.5 million (approximately $0.4 million), compared to NIS 1.6 million (approximately $0.5 million) for the six months ended June 30, 2024. The decrease was primarily driven by a lower volume of Pulsenmore ES units sold to our main customer, Clalit, compared to the same period last year.

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

 ****

Our research and development expenses for the six months ended June 30, 2025 amounted to NIS 8 million (approximately $2.4 million), representing a decrease of NIS 1.8 million (approximately $0.5 million) or 18.4%, compared to NIS 9.8 million (approximately $2.9 million) for the six months ended June 30, 2024. The decrease resulted mainly from a decrease in salaries and related expenses due to a reduction in headcount, and also a decrease of NIS 0.5 million (approximately $0.1 million) due to a grant received from the IIA in amount of NIS 1.5 million (approximately $0.5 million) during the six months ended June 30, 2025, compared to a grant received from the KORIL in amount of NIS 1 million (approximately $0.3 million) in the prior year period.

 ****

***Sales and Marketing Expenses***

Our sales and marketing expenses amount to NIS 6 million (approximately $1.8 million) for the six months ended June 30, 2025, representing an increase of NIS 1.8 million (approximately $0.6 million), or 42.9%, compared to NIS 4.2 million (approximately $1.2 million) for the six months ended June 30, 2024. The increase resulted mainly from an increase in salaries and related expenses due to increase in headcount as well as an increase in other expenses mainly from tradeshows and events.

 ****

***General and Administrative Expenses***

Our general and administrative expenses amounted to NIS 8.1 million (approximately $2.4 million) for the six months ended June 30, 2025, representing an increase of NIS 0.5 million (approximately $0.4 million), or 6.6%, compared to NIS 7.6 million (approximately $2.2 million) for the six months ended June 30, 2024. The increase resulted mainly from professional services expenses.

 ****

***Operating Loss***

As a result of the foregoing, our operating loss for the six months ended June 30, 2025 was NIS 20.6 million (approximately $6.1 million), as compared to an operating loss of NIS 20.1 million (approximately $5.9 million) for the six months ended June 30, 2024, representing an increase of NIS 0.5 million (approximately $0.2 million), or 2.5%.

  ****

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

During the six months ended June 30, 2025, , we had financial expenses of NIS 2.5 million (approximately $0.8 million) from. During the six months ended June 30, 2024, we had financial income of NIS 4.2 million (approximately $1.2 million). The increase in the financial expenses resulted mainly from changes in the USD exchange rate, a decrease in interest rates on deposits and an increase in financial expenses from liability for royalties to the IIA.

  ****

***Total Comprehensive Loss***

As a result of the foregoing, our total comprehensive loss for the six months ended June 30, 2025 was NIS 23.2 million (approximately $6.9 million), as compared to NIS 15.9 million (approximately $4.7 million) for the six months ended June 30, 2024, representing an increase of NIS 7.3 million (approximately $2.2 million) or 45.9%.

**Comparison of the year ended December 31, 2024 to the year ended December 31, 2023 and to the year ended December 2022**

 ****

**Results of Operations**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2023** | **2024** | **2024** |
| <br>(in thousands) | **NIS** | **NIS** | **NIS** | **Convenience**<br>**translation into**<br>**U.S. dollars** |
| Revenues | 10814 | 6188 | 9661 | 2649 |
| Cost of revenues | 5690 | 3987 | 6084 | 1668 |
| Gross profit | 5124 | 2201 | 3577 | 981 |
| Research and development expenses, net | 29623 | 31399 | 20130 | 5520 |
| Sales and marketing expenses | 8917 | 9434 | 10318 | 2829 |
| General and administrative expenses | 12786 | 16954 | 15344 | 4207 |
| Operating loss | (46202) | (55586) | (42215) | (11575) |
| Finance expense (income), net | (24083) | 2854 | (5423) | (1487) |
| Tax expense (income) |  | 127 | (56) | (15) |
| Total comprehensive loss | (22119) | (58567) | (36736) | (10073) |
| Loss attributable to holders of ordinary Shares | (22119) | (58567) | (36736) | (10073) |

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 **

***Revenues***

 **

Our revenues for the year ended December 31, 2024 amounted to NIS 9.7 million (approximately $2.6 million), representing an increase of NIS 3.5 million (approximately $0.9 million) or 56.5%, compared to NIS 6.2 million (approximately $1.7 million) for the year ended December 31, 2023. The increase was primarily driven by a higher volume of Pulsenmore ES units sold to our main customer, Clalit, fueled by the Company's enhanced marketing efforts. These efforts led to the sale of approximately 2,000 additional units to Clalit in 2024, marking a 40% increase compared to the previous year. Furthermore, the Company expanded its market presence by initiating sales to Sheba Medical Center and an Italian distributor, collectively accounting for 310 units sold during 2024. Additionally, the Company secured a new purchase order from GE Precision, supplying them with 240 units over the same period.

 ****

Our revenues for the year ended December 31, 2023 amounted to NIS 6.2 million (approximately $1.7 million) representing a decrease of NIS 4.6 million (approximately $1.3 million) or 42.6%, compared to NIS 10.8 million (approximately $3 million) for the year ended December 31, 2022. The decrease was mainly due to delivery of 5,000 units to GE during 2022, and the cancellation of the rest of the initial order in 2023, and partly due to recognition of deferred revenues recorded in 2021.

***Cost of Revenues***

 ****

Our cost of revenues for the year ended December 31, 2024 amounted to NIS 6.1 million (approximately $1.7 million), representing an increase of NIS 2.1 million (approximately $0.6 million) or 52.5%, compared to NIS 4 million (approximately $1.1 million) for the year ended December 31, 2023. The increase resulted mainly from a higher volume of Pulsenmore ES units sold.

Our cost of revenues for the year ended December 31, 2023 amounted to NIS 4 million (approximately $1.1 million), representing a decrease of NIS 1.7 million (approximately $0.5 million), or 29.8%, compared to NIS 5.7 million (approximately $1.6 million), for the year ended December 31, 2022. The decrease resulted mainly from a lower volume of Pulsenmore ES units sold.

***Gross Profit***

 ****

Our gross profit for the year ended December 31, 2024 amounted to NIS 3.6 million (approximately $1 million), compared to NIS 2.2 million (approximately $0.6 million) for the year ended December 31, 2023. The increase resulted mainly from a higher volume of Pulsenmore ES units sold, to our main customer, Clalit.

Our gross profit for the year ended December 31, 2023 amounted to NIS 2.2 million (approximately $0.6 million), compared to NIS 5.1 million (approximately $1.4 million) for the year ended December 31, 2022. The decrease was mainly due to delivery of 5,000 units to GE during 2022, and the cancellation of the rest of the initial order in 2023, and partly due to recognition of deferred revenues recorded in 2021.

 **

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

 **

Our research and development expenses for the year ended December 31, 2024 amounted to NIS 20.1 million (approximately $5.5 million), representing a decrease of NIS 11.3 million (approximately $3.1 million) or 36%, compared to NIS 31.4 million (approximately $8.6 million) for the year ended December 31, 2023. The decrease resulted mainly from the completion of clinical trials during 2024 and a decrease in the number of our employees and subcontractors compared to 2023.

Our research and development expenses for the year ended December 31, 2023, amounted to NIS 31.4 million (approximately $8.6 million), representing an increase of NIS 1.8 million (approximately $0.5 million) or 6.1%, compared to NIS 29.6 million (approximately $8.1 million), for the year ended December 31, 2022. The increase resulted mainly from expanded research and development activities, attributable mainly from increased expenses related to clinical trials.

 ****

***Sales and Marketing Expenses***

Our sales and marketing expenses amount to NIS 10.3 million (approximately $2.8 million) for the year ended December 31, 2024, representing an increase of NIS 0.9 million (approximately $0.2 million), or 9.6%, compared to NIS 9.4 million (approximately $2.6 million) for the year ended December 31, 2023. The increase resulted mainly from an increase in salary and related expenses, as well as an increase in advertising expenses.

Our sales and marketing expenses amounted to NIS 9.4 million (approximately $2.6 million) for the year ended December 31, 2023, representing an increase of NIS 0.5 million (approximately $0.2 million), or 5.6%, compared to NIS 8.9 million (approximately $2.4 million) for the year ended December 31, 2022. The increase resulted mainly from pre-commercialization expenses in the United States during 2023.

 ****

***General and Administrative Expenses***

Our general and administrative expenses amounted to NIS 15.3 million (approximately $4.2 million) for the year ended December 31, 2024, representing a decrease of NIS 1.7 million (approximately $0.4 million), or 9.4%, compared to NIS 17 million (approximately $4.6 million) for the year ended December 31, 2023. The decrease resulted mainly from a decrease in share-based compensation expenses, rent expenses and professional services expenses.

Our general and administrative expenses amounted to NIS 17 million (approximately $4.6 million) for the year ended December 31, 2023, representing an increase of NIS 4.2 million (approximately $1.1 million), or 32.8%, compared to NIS 12.8 million (approximately $3.5 million) for the year ended December 31, 2022. The increase resulted mainly from an increase in our operating activities.

 ****

***Operating Loss***

As a result of the foregoing, our operating loss for the year ended December 31, 2024 was NIS 42.2 million (approximately $11.6 million), as compared to an operating loss of NIS 55.6 million (approximately $15.2 million) for the year ended December 31, 2023, representing a decrease of NIS 13.4 million (approximately $3.6 million), or 24.1%.

As a result of the foregoing, our operating loss for the year ended December 31, 2023, was NIS 55.6 million (approximately $15.2 million), as compared to an operating loss of NIS 46.2 million (approximately $12.7 million) in for the year ended December 31, 2022, representing an increase of NIS 9.4 million (approximately $2.5 million) or 20.3%.

 ****

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

In 2024, we had financial income of NIS 5.4 million (approximately $1.5 million) resulted mainly from interest on bank deposits. In 2023, we had financial expenses of NIS 2.9 million (approximately $0.8 million) resulting mainly from the revaluation of a derivative financial instrument amounting to NIS 15.6 million (approximately $4.3 million). This was partially offset by financial income of NIS 13.4 million (approximately $3.7 million), resulting mainly from changes in the USD exchange rate and an increase in interest rates on deposits.

The change from financial income of NIS 24.1 million (approximately $6.6 million) in 2022 to financial expenses of approximately NIS 2.9 million (approximately $0.8 million) in 2023 was primarily due to the recognition of expenses from the revaluation of a derivative financial instrument amounting to NIS 15.6 million (approximately $4.3 million) in 2023, compared to income of NIS (10.5) million (approximately $2.9 million) from the same derivative in 2022. Additionally, we had recognized a financial income of NIS 6.4 million (approximately $1.8 million) in 2023 compared to financial income of NIS 10.6 million (approximately $2.9 million) in 2022, resulting mainly from changes in the USD exchange rate. In addition, we had financial income from deposits amounting to NIS 6.9 million (approximately $1.9 million) in 2023 compared to a financial income of NIS 3 million (approximately $0.8 million) in 2022 following a rise in interest rates on short-term bank deposits.

 ****

***Total Comprehensive Loss***

As a result of the foregoing, our total comprehensive loss for the year ended December 31, 2024 was NIS 36.7 million (approximately $10.1 million), as compared to NIS 58.6 million (approximately $16.1 million) for the year ended December 31, 2023, representing a decrease of NIS 21.9 million (approximately $6.0 million) or 37.2%.

As a result of the foregoing, our total comprehensive loss for the year ended December 31, 2023 was NIS 58.6 million (approximately $16.1 million), as compared to NIS 22.1 million (approximately $6.1 million) for the year ended December 31, 2022, an increase of NIS 36.4 million (approximately $10 million) or 164.7%.

**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, cash flow from operations from sales of our products, and partially from government grants from the IIA and KORIL 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, 2024, 2023 and 2022, we had a net loss of NIS 36.7 million (approximately $10.1 million), NIS 58.6 million (approximately $16.1 million) and NIS 22.1 million (approximately $6.1 million), respectively. For the six months ended June 30, 2025 and 2024, we had a net loss of NIS 23.2 million (approximately $6.9 million) and NIS 15.9 million (approximately $4.7million), respectively. As of December 31, 2024, our cash, cash equivalents amounted to NIS 41.2 million (approximately $11.3 million), and our short-term bank deposits amounted to NIS 62.9 million (approximately $17.2 million). As of June 30, 2025, our cash, cash equivalents amounted to NIS 24.4 million (approximately $7.3 million), and our short-term bank deposits amounted to NIS 62.1 million (approximately $18.4 million).

Since we have not yet generated cash flows from operating activities, our funding sources primarily rely on the issuance of equity securities. Based on 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.

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.

***Contractual Obligations***

We have lease obligations and other contractual obligations and commitments as part of our ordinary course of business.

Our material cash requirements include contractual obligations with third parties for office leases. Our fixed office lease payment obligations were NIS 2 million (approximately $0.6 million) as of December 31, 2024, in which NIS 0.9 million (approximately $0.3 million) are payable within the next 12 months. For additional information, see Note 8 to our consolidated financial statements included in this registration statement.

***Capital Expenditures***

 ****

Our capital expenditures for 2024, 2023 and 2022 amounted to NIS 0.5 NIS million (approximately $0.1 million), NIS 3.9 million (approximately $1.1 million) and NIS 4.5 million (approximately $1.2 million) 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, 2024 and June 30, 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 11.4 million (approximately $3.1 million) and NIS 13.7 million (approximately $4.1 million), respectively, linked to the U.S. dollar and bearing annual interest at rates as prescribed by the IIA's rules and guidelines.

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.

In addition, our research and development efforts were also financed through royalty-bearing grants from KORIL.

During 2021, KORIL approved a research and development grant to us as part of a collaboration with a Korean company to develop an automated process for manufacturing ultrasound transducers. According to the program's procedures, we are required to pay royalties to KORIL at a rate of 2.5% of revenue directly linked to transducers produced using the automated process. As of the date of this registration statement, there is no assurance that the received grants will be repaid. As of December 31, 2024 and June 30, 2025, the maximum amount of royalties we may be required to repay is NIS 1.7 million (approximately $0.5 million).

***Cash Flows***

***Six Months Ended June 30, 2025, Compared to Six Months Ended June 30, 2024***

 **

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

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| | | | |
|:---|:---|:---|:---|
| | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
| | **2024** | **2025** | **2025** |
| <br>*(in thousands)* | **NIS** | **NIS** | **Convenience**<br> **translation into U.S. dollars** |
| **Cash and cash equivalents at beginning of the period** | 23869 | 41170 | 12213 |
| Net cash used in operating activities | (24946) | (15570) | (4619) |
| Net cash provided by (used in) investing activities | 17663 | (1422) | (422) |
| Net cash provided (used in) by financing activities | (835) | 368 | 109 |
| &nbsp;&nbsp;&nbsp;**Increase (decrease) in cash, and cash Equivalents** | (8118) | (16624) | (4932) |
| **Effect of exchange rate changes on cash** | 1042 | (105) | (31) |
| **Cash and cash equivalents at end of year** | 16793 | 24441 | 7250 |

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

 

Net cash used in operating activities decreased by NIS 9.3 million (approximately $2.8 million) or 37.3% from NIS 15.6 million (approximately $4.6 million) for the six months ended June 30, 2025, compared to NIS 24.9 million (approximately $7.4 million) for the six months ended June 30, 2024. This decrease was driven primarily by a reduction in our expenses, and also by a reduction in inventory, offset by an increase in trade receivables and a decrease in trade payables.

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

 

Net cash used by investing activities increased by NIS 19.1 million (approximately $5.6 million) or 107.9% from NIS 1.4 million (approximately $0.4 million) for the six months ended June 30, 2025, compared to net cash provided in investing activities of NIS 17.7 million (approximately $5.2 million) for the six months ended June 30, 2024. This increase resulted primarily from the placements of short-term bank deposits.

*<u>Net cash provided by financing activities</u>*

 

Net cash provided in financing activities increased by approximately NIS 1.2 million (approximately $0.3 million), or 150% from NIS 0.4 million (approximately $0.1 million) for the six months ended June 30, 2025, compared to net cash used in financing activities of NIS (0.8) million (approximately $0.2 million) for the six months ended June 30, 2024. During the six months ended June 30, 2025, we received grants from the IIA of approximately NIS 1.3 million (approximately $0.4 million) whereas during the six months ended June 30, 2024 we received grants from the KORIL of approximately NIS 1 million (approximately $0.3 million).

 **

***Year Ended December 31, 2024, Compared to Year Ended December 31, 2023 Compared to Year Ended December 31, 2022***

 **

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2023** | **2024** | **2024** |
| <br>(in thousands) | **NIS** | **NIS** | **NIS** | **Convenience**<br>**translation into U.S. dollars** |
| **Cash and cash equivalents at beginning of the period** | 112862 | 15368 | 23869 | 6545 |
| Net cash used in operating activities | (27523) | (49664) | (41461) | (11369) |
| Net cash provided by (used in) investing activities | (124554) | 56707 | 58581 | 16062 |
| Net cash provided (used in) by financing activities | 50967 | (1144) | (1564) | (429) |
| &nbsp;&nbsp;&nbsp;**Increase (decrease) in cash, and cash** <br>**Equivalents** | (101110) | 5899 | 15556 | 4264 |
| **Effect of exchange rate changes on cash** | 3616 | 2602 | 1745 | 478 |
| **Cash and cash equivalents at end of year** | 15368 | 23869 | 41170 | 11287 |

---

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

 

Net cash used in operating activities decreased by NIS 8.2 million (approximately $2.2 million) or 16.5% from NIS 41.5 million (approximately $11.4 million) for the year ended December 31, 2024, compared to NIS 49.7 million (approximately $13.6 million) for the year ended December 31, 2023. This decrease was driven primarily by a reduction in our expenses, and also by a reduction in inventory, offset by an increase in trade receivables and a decrease in trade payables.

Net cash used in operating activities increased by approximately NIS 22.2 million (approximately $6.1 million), or 80.4% from NIS 49.7 million (approximately $13.6 million) for the year ended December 31, 2023, compared to NIS 27.5 million (approximately $7.5 million) for the year ended December 31, 2022. This increase was driven primarily from an increase in expenses and also from an increase in inventory, trade receivables, trade payables, and service providers.

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

 

Net cash provided by investing activities increased by NIS 1.9 million (approximately $0.6 million) or 3.4% from NIS 58.6 million (approximately $16.1 million) for the year ended December 31, 2024, compared to NIS 56.7 million (approximately $15.5 million) for the year ended December 31, 2023. This increase resulted primarily from the proceeds of short-term bank deposits.

Net cash provided by investing activities increased by NIS 181.3 million (approximately $49.7 million) or 145.5% from NIS 56.7 million (approximately $15.5 million) for the year ended December 31, 2023, compared to net cash used in investing activities of NIS 124.6 million (approximately $34.2 million) for the year ended December 31, 2022. This increase resulted primarily from the maturity of short-term bank deposits.

*<u>Net cash provided by financing activities</u>*

 

Net cash used in financing activities increased by approximately NIS 0.5 million (approximately $0.1 million), or 36.4% from NIS 1.6 million (approximately $0.4 million) for the year ended December 31, 2024, compared to NIS 1.1 million (approximately $0.3 million) for the year ended December 31, 2023. During 2023, we received grants from the IIA of approximately NIS 0.5 million (approximately $0.1 million) whereas during 2024 we did not receive any grants from the IIA.

Net cash used in financing activities increased by NIS 52.1 million (approximately $14.3 million), or 102.2% from NIS 1.1 million (approximately $0.3 million) for the year ended December 31, 2023, compared to net cash provided by financing activities of NIS 51 million (approximately $14 million) for the year ended December 31, 2022. In 2023, we had payments of NIS 1.3 million (approximately $0.4 million) related to lease obligations and payments of NIS 0.3 million (approximately $0.1 million) related to the IIA, and we recognized proceeds of approximately NIS 0.5 million (approximately $0.1 million) from the IIA. In 2022, GE invested a total amount of NIS 70 million (approximately $21 million) in the Company, which was classified under financing activities.

**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, 2024 to the Year ended December 31, 2023 and to the Year Ended December 2022" and "Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 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, 2024 to December 31, 2024 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 IFRS Accounting Standards, as issued by the International Accounting Standards Board. 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 critical accounting judgements and sources of estimation uncertainty are described in Note 2 to our consolidated financial statements, which are included elsewhere in this registration statement.

**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.

***Foreign Exchange Risk***

 ****

We operate our business primarily In Israel and currently execute most of our transactions in NIS. We have not utilized hedging strategies with respect to our foreign exchange exposure. This limited foreign currency translation risk is not expected to have a material impact on our consolidated financial statements.

***Interest Rate Risk***

 ****

We have received grants from the IIA for participation in research and development activities. Under the terms of the grant, royalties are payable to the IIA based on revenue from the sale of products developed with its support. These payments are linked to the U.S. Dollar (USD) and bear an annual interest rate based on LIBOR. As of January 1, 2024, the Innovation Authority announced a transition to a variable interest rate based on SOFR (Secured Overnight Financing Rate) - This change did not have a material impact on its financial statements.

***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 its current and future shareholders.

**Emerging Growth Company Status**

We 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** |
| Jonathan Adereth (3) | 78 | Chairman of the Board of Directors |
| Dr. Elazar Sonnenschein | 62 | Chief Executive Officer and Director |
| Eran Hirsh | 48 | Chief Financial Officer |
| Menashe Sonnenschein | 60 | VP R&D |
| Meir Shmouely | 60 | VP Software Development |
| Michael Hamelsdorf | 45 | General Counsel & Company Secretary |
| Linda Messalem (1)(2)(3)(4) | 68 | External Director |
| Racheli Guz-Lavi (2)(3)(4) | 56 | Director |
| Prof. Anat Loewenstein (1)(2)(4) | 65 | External Director |
| Hagai Itkin (1)(4) | 57 | Director |

---

(1) Member of Audit Committee and Financial Statements
 Committee

(2) Member of Compensation Committee

(3) Member of the Investment Committee

(4) Independent director under Nasdaq and SEC independence
 standards

**Jonathan Adereth - Chairman of the Board**

Mr. Jonathan Adereth has served as our Chairman since August 2020. From 1994 to 1998, Mr. Adereth served as Chief Executive Officer of Elscint Ltd. (NYSE: ELT), a global developer and manufacturer of Medical Imaging systems. Mr. Adereth served as a Chairman of Mazor Robotics (Nasdaq: MZOR) from 2007 until its acquisition by Medtronic in 2018. Since May 2009, Mr. Adereth has been serving as the Chairman of Medic Vision Imaging Solutions Ltd., an Israeli company in the field of advanced CT and MR Imaging. Mr. Adereth holds a B.Sc. degree in Physics from the Technion - Israel Institute of Technology.

**Dr. Elazar Sonnenschein, Chief Executive Officer and Director**

Dr. Elazar Sonnenschein has served as our Chief Executive Officer since 2014. Prior to that, Dr. Sonnenschein served as CEO of Medigus Ltd (now Xylo Technologies Ltd) from 2000 to 2013, which included taking the company to IPO, and prior to that served as Vice President at Green Software House. Dr. Sonnenschein holds a Ph.D. and M.Sc. in Electronics and Computers Engineering from the Ben-Gurion University, and an B.Sc. in Nuclear Engineering from the Ben-Gurion University.

**Eran Hirsh, Chief Financial Officer**

Mr. Eran Hirsh has served as our Chief Financial Officer since August 2024. Prior to that, Mr. Hirsh served as Chief Financial Officer of Holis from 2023 until June 2024. Prior to this role, Mr. Hirsh served as Chief Financial Officer of Chemothal, a transport and logics company that is part of the Emilia Development Group (TASE: EMDV) portfolio, from 2020 to 2022 and Finance & Administration Manager of YKK Europe, a Japanese group of manufacturing companies, from 2017 to 2020. Before that Mr. Hirsh was Director of Finance at Orbit Communication Systems and served in various financial roles at Chip PC. Mr. Hirsh was an Audit Manager at EY Israel. Mr. Hirsh is a CPA and holds a BA (Hons) in Accounting and Economics from the University of Haifa.

**Minelu (Menashe) Sonnenschein, VP R&D**

Mr. Menashe Sonnenschein has served as VP R&D since October 2021. Prior that from April 2019 until October 2021 he was a Director of System Engineering at Medasense Biometric. Mr. Sonnenschein was a founding member and officer of Medigus (now Xylo Technologies Ltd).from 2000 where he served as VP, Israel Operations and COO from 2014 until 2019. Among other roles, Mr. Sonnenschein previously served as Director of Research and Development at Medigus and has been directly responsible for the development of its MUSE™ System. Mr. Sonnenschein holds an M.Sc. and B.Sc. in Electrical and Electronics Engineering from Ben-Gurion University, Israel.

**Meir Shmouely, VP Sofware Development** 

Mr. Meir Shmouely has served as our VP Software Development January 2022. As VP R&D Software, he oversees the entire software development lifecycle, bringing extensive experience in managing large-scale technology operations and innovations. Prior to joining Pulsenmore, Mr. Shmouely spent over 26 years at Microsoft Corporation, holding several Principal Software Engineering Manager positions across key divisions. From March 2016 to January 2022, he managed a team of 80 engineers in Microsoft's Azure division, where he drove automation for the Azure hardware quality verification. From November 2013 to March 2016, he served as Principal Software Engineering Manager at Skype, at Microsoft, where he led a multinational team across London, Tallinn, Stockholm, and Seattle. Previously, he held the position of Principal Software Engineering Manager at Xbox (September 2012 to November 2013), where he managed console security validation and established a world-class security pen-test team. From September 2008 to September 2012, as Principal Software Engineering Manager at MSN, he led a team of 70 professionals. His earlier roles at Microsoft included Principal Software Engineering Manager positions in the Windows division (January 2006 to September 2008), where he managed a team of 120 professionals driving Windows 7 application compatibility, and in the ISA division (October 1995 to January 2006), where he was part of the leadership team of the Microsoft's Internet Security And Acceleration product family. Mr. Shmouely holds a Bachelors Degree and Master's Degree in Electrical Engineering from the Technion - Israel Institute of Technology.

**Michael Hamelsdorf, General Counsel & Company Secretary**

Mr. Michael Hamelsdorf has served as our General Counsel since September 2023. Prior to that, Mr. Hamelsdorf served as Legal Counsel and Company Secretary at Tempo Beverages Ltd., Israel's largest brewer and second largest beverage company, from 2012 until September 2023. Mr. Hamelsdorf was previously a member of the in-house legal department of Phoenix Holdings and Company Secretary & Investor Relations of CMT Medical Technologies. Mr. Hamelsdorf was an associate at Amit, Pollak, Matalon & Co. and holds an LL.M. and LL.B. from Bar-Ilan University.

**Linda Messalem, Director**

Ms. Linda Messalem has served as an external director on our board of directors since August 2021. Since 2021, Ms. Messalem leads an independent accounting firm providing a full spectrum of financial services to a diverse clientele. From 2008 until 2020, Ms Messalem was an audit partner at Deloitte where she led and managed the Be'er Sheva office overseeing all audit operations. Prior to that from 1998 to 2007, she was a partner at Kesselman & Kesselman (PwC) where she managed and oversaw a wide range of audit and consulting engagements. From 1993 to 1997, Ms. Messalem was the founder and manager of an independent accounting firm. Ms. Messalem holds a Masters in Business Administration from Ben Gurion University and a Bachelor's Degree in Economics.

**Racheli Guz-Lavi, Director**

Ms. Racheli Guz-Lavi has served as member of our board since 2020. Ms. Guz-Lavi is a managing partner at Amit Pollak Matalon & Co and senior partner of the tax department having joined the firm in 2007. Prior to joining APM & Co., Ms. Guz-Lavi was a partner at Dan-Ben Dror & Co., a taxation focused law firm worked as a CPA at KPMG Israel. Ms. Guz-Lavi is a certified CPA since 1995 and a member of the Israeli Bar since 1997. Ms Guz-Lavi has previously served on the boards of Arim Urban Development Company Ltd, Peninsula Ltd and Medigus Ltd (now Xylo Technologies Ltd) among others. Ms. Guz-Lavi holds a B.A. in Economics and Accounting from Tel-Aviv University as well as an LL.M. from Bar-Ilan University and an LL.B. from Tel-Aviv University.

**Prof. Anat Loewenstein, Director**

Prof. Anat Loewenstein has served as an external director on our board of directors since August 2021. Prof. Loewenstein completed her training in Johns Hopkins University Hospital in Baltimore in 1996. She has been the Director of the Department of Ophthalmology, Tel-Aviv Medical Center since January 2000, Vice Dean of the Sackler School of Medicine, Tel-Aviv University since September 2006, and a Professor at the Sackler School of Medicine since April 1999. She is the principal investigator in multiple multicenter drug and device studies for Novartis, Allergan, Bayer and Lumenis, and serves as a consultant to several companies in the healthcare industry, including Novartis, Allergan, Lumenis, Notal Vision Ltd. and ForSight Labs. She is the chairperson of the Institutional Review Board committee of the Israeli Ministry of Health. Prof. Loewenstein holds an M.D. from the Hebrew University of Jerusalem and Masters Degree in Health Administration from Tel-Aviv University.

**Hagai Itkin, Director**

Mr. Hagai Itkin has held various leadership roles since 1987. He currently serves as Chairman of Ramot, the Technology Transfer Company of Tel Aviv University, and of TAU Venture, Tel Aviv University's venture capital fund. In addition, Mr. Itkin serves as Executive Director of Industry Relationships at Tel Aviv University since June 2024, and as a partner at I NEXT Capital, an early-stage digital health venture capital fund, since May 2023. Mr. Itkin currently serves as a board member of several companies, including Discount Capital Ltd. (since August 2024), Actual-Signal, a healthcare start-up (since November 2024), MarbleX, a start-up company in space sensing (since March 2024), and NGV.EARTH, a clean energy company (since January 2023). He also serves on the advisory boards of CyberproAI (since August 2022) and Aurlius Capital (since September 2024). Additionally, he has served as a consultant to Sicpa SA (since August 2021) and the start-up Knock-Eat, a start-up focused on equine solutions (since September 2024). Between 2004 and 2020, Mr. Itkin held senior positions in the government sector in Israel and abroad. He holds a B.A. in Economics & Business Administration from the Hebrew University of Jerusalem (1996–1999), a Master of Business Administration (MBA) from Ben Gurion University (2007–2010), and completed a Director and Senior Executive Training Program at Tel Aviv University in 2021.

***Family Relationships***

Dr. Elazar Sonnenschein, our Chief Executive Officer and director, and Menashe Sonnenschein, our VP R&D are brothers. There are no other family relationships between any members of our executive management and our directors.

***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 thousands of NIS and U.S. dollars, for the period ended December 19, 2025. Amounts paid in NIS are translated into U.S. dollars at the rate of NIS 3.208 = $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 period ended December 19, 2025. All directors and senior management as a group, consisting of 10 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 |  | 6814 |  | 2124 |
| Pension retirement and other similar benefits |  | 954 |  | 297 |
| Share based compensation |  | 412 |  | 128 |

---

As of December 31, 2025, options to purchase 166,218 ordinary shares granted to our directors and executive officers were outstanding under our Option Plan at a weighted average exercise price of $28 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 3.208 = $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.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Executive Officer** | **Salary<br> Costs<sup>(1)</sup>** | **Bonus<br> Payments,<br> Benefits<br> and<br> Perquisites (2)** | **Stock-Based<br> Compensation (3)** | **Total** |
| Dr. Elazar Sonnenschein | 627 | 63 |  | 690 |
| Meir Shmouely | 344 | 14 | 4 | 362 |
| Menashe Sonnenschein | 294 | 33 | 6 | 333 |
| Eran Hirsh | 303 | 11 | 17 | 331 |
| Len Farris (4) | 627 | 63 |  | 690 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

(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. The bonuses reported in this column reflected the cost for the six months
ended June 30, 2025.

(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 estimated as of the date of grant
using the Black-Scholes valuation model. The 2025 figures are unaudited numbers.

(4) Mr. Farris resigned as an executive officer effective
 July 11, 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 not be able to enforce covenants not-to-compete under current Israeli law that might result in added competition for our products." 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 completed and are qualified in their entirety by the complete agreements, which are attached as exhibits to this registration statement.

*Mr. Elazar Sonnenschein*

 

Mr. Sonnenschein has served as our Chief Executive Officer and member of the board (as well as our Development Manager) since our incorporation in December 2014. In November 2016, we entered into an agreement for the provision of consultancy services, as subsequently amended, or the Services Agreement, with D.L.L.D. Consulting Ltd., or DLLD, a private company wholly owned by Mr. Sonnenschein. Pursuant to the Services Agreement, Mr. Sonnenschein, on behalf of DLLD, provides us with consultancy services in various aspects of its ongoing operations, including, but not limited to, project implementation, budget management, business development, logistics, human resources, research and development, and fundraising. As part of his terms, Mr. Sonnenschein is currently entitled to a monthly salary of NIS 130,000 (approximately $35,645) plus applicable VAT, a monthly payment of NIS 39,000 (approximately $10,693) for social benefits and ancillary expenses, a monthly payment of NIS 11,000 (approximately $23,016) for car expenses or a car lease, a monthly payment of NIS 5,000 (approximately $1,016) for accommodation expenses, an annual cash bonus of up to six monthly salaries, subject to meeting predefined targets, advance notice of up to six months' salary in the event of termination and a severance payment of up to nine months' salary.

Regarding the annual bonuses, Mr. Sonnenschein's targets are determined at the beginning of each year and are derived from a combination of financial and other parameters, including revenue, operating profit, production capacity, milestones in research and development, and more. For the 2024 fiscal year, Mr. Sonnenschein received an annual bonus of NIS 300,000 (approximately $82,260). The cost of the bonus for the six months ended June 30, 2025 is reported in the table above (see footnote 2). Additionally, Mr. Sonnenschein is entitled to reimbursement for travel and accommodation expenses in accordance with our policies, subject to prior written approval and the submission of adequate invoices. The term of the Services Agreement is not time-limited and may be terminated by either party with 120 days' advance written notice. However, under certain circumstances defined in the agreement, we may terminate the engagement immediately without prior notice. The Services Agreement contains customary non-compete, assignment of inventions and confidentiality provisions.

 

*Meir Shmouely*

 

Mr. Meir Shmouely has served as our Vice President of Software Development since March 2019. In March 2019, a services agreement was signed between the Company and Mr. Shmouely, according to which Mr. Shmouely provided services to the Company as an independent contractor under the terms set forth in the agreement. In January 2022, we entered into an employment agreement with Mr. Shmouely, replacing the previous services agreement. Under the terms of the employment agreement, Mr. Shmouely is entitled to a gross monthly salary of NIS 58,500 (approximately $16,040). Additionally, he is entitled to non-compete compensation of NIS 5,500 (approximately $1,508) per month, travel reimbursement of NIS 3,000 (approximately $890) per month, as well as social benefits under our social insurance and benefits plans, including but not limited to our manager's insurance policy and education fund, which are customary benefits provided to executive employees in Israel. Mr. Shmouely is also eligible for an annual bonus of up to NIS 96,000 (approximately $26,323), subject to meeting predefined targets. For the year 2024, Mr. Shmouely was granted an actual annual bonus of NIS 74,000 (approximately $20,290). The cost of the bonus for the six months ended June 30, 2025 is reported in the table above (see footnote 2). Mr. Shmouely's employment term is not limited in duration and can be terminated by either party with 90 days' prior written notice. The employment agreement contains customary non-compete, intellectual property and confidentiality provisions.

*Menashe Sonnenschein*

 

Mr. Menashe Sonnenschein has served as our Vice President of Hardware Development since October 2021. In October 2021, we entered into an employment agreement with Mr. Sonnenschein. Mr. Sonnenschein is currently entitled to a gross monthly salary of NIS 55,000 (approximately $15,080). Additionally, he is entitled to a company car as well as social benefits under our social insurance and benefits plans, including but not limited to our manager's insurance policy and education fund, which are customary benefits provided to executive employees in Israel. Mr. Sonnenschein is also eligible for an annual bonus of up to two monthly salaries, subject to meeting predefined targets. For the year 2024, Mr. Sonnenschein was granted an actual annual bonus of NIS 60,000 (approximately $16,451). The cost of the bonus for the six months ended June 30, 2025 is reported in the table above (see footnote 2). The employment term of Mr. Sonnenschein is not limited in duration and may be terminated by either party with 90 days' prior written notice. The employment agreement includes contains customary non-compete, assignment of inventions and confidentiality provisions.

***Directors' Service Contracts***

Other than with respect to Dr. Elazar Sonnenschein and Jonathan Adereth, 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 574,000 (approximately $157,390) and a per meeting fee of NIS 4,000 (approximately $1,096). Board members may waive there 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.

*Jonathan Adereth*

In December 2020, we entered into an employment agreement with Mr. Adereth under which Mr. Adereth acts as the Company's Chairman of the Board of Directors on a 20% basis (a day per week). Under the employment agreement, Mr. Aderet is entitled to a yearly payment of NIS 370,000 (approximately $101,453). The employment term of Mr. Adereth is not limited in duration and may be terminated by either party with 60 days' prior written notice. The employment agreement includes contains customary non-compete, assignment of inventions and confidentiality provisions.

**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 six members, including two external directors required to be appointed under the Companies Law. We believe that Hagai Itkin, Racheli Guz-Lavi, Anat Loewenstein, and Linda Messalem 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 10 (including external directors to the extent required to be appointed to the board of directors pursuant to the Companies Law, and independent directors). Our directors are elected at the annual general meeting (the external directors are appointed for a period of three years). For further information about our staggered board of directors, see "—Item 10.B. Articles of Association." Our initial Class I directors are Rachel Guz-Lavi and Hagai Itkin , our initial Class II directors is Elazar Sonnenschein, and our initial Class III directors is Jonathan Adereth. Our directors may further be appointed by the board of director 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, or in case of a vacancy due to the number of directors serving being less than the minimum number stated above, the board of directors shall determine at the time of appointment the class of the staggered board to which the additional director shall be assigned. 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.

We provided a board observer right to one of our beneficial shareholders — GE Healthcare— pursuant to a private placement agreement we entered into in May 11, 2022. On December 12, 2025 GE Healthcare notified us that it sold all their ordinary shares held by it and as a result this right expired. For more information, see "Item 7.B - Related Party Transactions— GE Healthcare Private Placement

***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 Anat Loewenstein and Linda Messalem.

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 Linda Messalem, Anat Loewenstein, Racheli Guz-Lavi and Hagai Itkin.

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 Anat Loewenstein and Linda Messalem who are external directors, and Racheli Guz-Lavi and Hagai Itkin who are independent directors, each of whom is "independent," as such term is defined in under Nasdaq Stock Market rules. Linda Messalem serves as the chairman of our audit committee. 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 Linda Messalem 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 , and , each of whom is "independent," as such term is defined under the Nasdaq Stock Market rules. 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 June 3, 2021 and is valid until June 2026.

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.

***Nasdaq Stock Market Requirements for Compensation Committee***

Under the Nasdaq Stock Market rules, we are required to maintain a compensation committee consisting of at least two members, all of whom satisfy certain standards of independence under Nasdaq Rule.

As noted above, the members of our compensation committee include Anat Loewenstein and Linda Messalem who are external directors, and Racheli Guz-Lavi who is an independent director, each of whom is "independent," as such term is defined in under Nasdaq Stock Market rules. Linda Messalem serves as the chairman of our audit committee.

***Investment Committee***

Our investment committee is comprised of Jonathan Adereth, Racheli Guz-Lavi and Linda Messalem. The investment committee is responsible for formulating the overall investment policies of the Company, and establishing investment guidelines in furtherance of those policies. The Committee monitors the management of the portfolio for compliance with the investment policies and guidelines and for meeting performance objectives over time as well as assist the board of directors in fulfilling its oversight responsibility for the investment of assets of the company.

***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 Daniel Schapira, CPA. 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 $10,000,000 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 December 28, 2025, we have seven senior management positions, which includes our Chief Executive Officer and four managers reporting to the CEO, all of whom are engaged on a full-time basis. As of December 28, 2025, we had 62 employees in full-or part-time capacities, 53 of whom are located in Israel. None of our employees are represented by labor unions or covered by collective bargaining agreements. 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***

 ****

***2019 Amended Share Incentive Plan***

On September 26, 2019, we adopted the Pulsenmore Ltd. 2019 Amended Share Incentive Plan, which was subsequently amended on September 25, 2021. We refer to the as amended 2019 Amended Share Incentive Plan, as the Plan. The 2019 Plan provides for the grant of options to our directors, officers, employees, consultants, advisers, and service providers. From time to time, our board of directors has approved an increase in the number of shares reserved for the purpose of equity grants pursuant to the 2019 Plan

Pursuant to the 2019 Plan, we may award options pursuant to Section 102 of the Israeli Income Tax Ordinance [New Version], 5721-1961, or the Ordinance, and section 3(I) of the Ordinance, based on entitlement and compliance with the terms for receiving options under these sections of the Ordinance. Section 102 of the Ordinance provides to employees, directors and officers who are not controlling shareholders (i.e., such persons are not deemed to hold 10% of our share capital, or to be entitled to 10% of our profits or to appoint a director to our board of directors) and are Israeli residents, favorable tax treatment for compensation in the form of shares or options issued or granted, as applicable, to a trustee under the "capital gains track" for the benefit of the applicable employee, director or officer and are (or were) to be held by the trustee for at least two years after the date of grant or issuance. Options granted under Section 102 of the Ordinance will be deposited with a trustee appointed by us in accordance with Section 102 of the Ordinance and the relevant income tax regulations and guidelines, and will be granted in the employee income track or the capital gains track.

Unless determined otherwise, Options granted under the 2019 Plan generally vest over four years with 25% vesting after one year and the remaining 75% vesting in equal quarterly installments of 6.25% each. Options generally expire seven years from the grant date. Upon termination of employment for any reason, other than in the event of death or disability or for cause, all unvested options will expire and all vested options at time of termination will generally be exercisable for 90 days following termination, subject to the terms of the 2019 Plan and the governing option agreement. If we terminate a grantee's employment or engagement for cause (as defined in the 2019 Plan) the grantee's right to exercise all vested and unvested the options granted to him or her will expire immediately. Upon termination of employment due to death or disability, all the vested options at the time of termination will be exercisable for 12 months after date of termination, subject to the terms of the 2019 Plan and the governing option agreement.

In the event of a merger or or a sale of all, or substantially all, of our ordinary shares or assets or other transaction having a similar effect on us, or a Transaction, any vested options shall be exercisable in full for 30 days prior to the closing date of the Transaction and any unexercised vested options after such date shall expire and any unvested options shall be at the fully and absolute discretion of the successor corporation. then outstanding will be cancelled.

***U.S. Sub-Plan 2019 Amended Share Incentive Plan***

 ****

The U.S. Sub-Plan to the Plan, or the U.S. Sub-Plan was adopted by our shareholders on September 6, 2023. The U.S. Sub-Plan is to be read as a continuation of the 2019 Plan and only modifies awards granted to our employees, consultants and directors who are U.S. residents, U.S. taxpayers or those persons who are or could be deemed to be U.S. taxpayers. Incentive stock options, or ISOs, may be granted only to employees, and any person who does not qualify as an employee may be granted only a non-qualified stock option, or NSOs. Awards granted pursuant to the U.S. Sub-Plan are exempt from or comply with Section 409A of the Internal Revenue Code.

The maximum aggregate number of shares that may be issued under the 2019 Plan pursuant to the exercise of ISOs may not exceed 37,500 ordinary shares.

The board of directors determines the exercise price per share, provided that it is not less than the fair market value of a share on the grant date. In the case of an incentive stock option granted to a 10% stockholder within the meaning of Section 424 of the Internal Revenue Code, the exercise price per share may not be less than 110% of the fair market value of the share on the grant date.

**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 6,655,967 ordinary shares outstanding as of December 28, 2025. Ordinary shares issuable under share options or warrants that are exercisable within 60 days after September 1, 2025 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 8 Omarim Street, Floor 2, Omer, Southern District, 8496500, Israel.

---

| | | |
|:---|:---|:---|
| **Name of beneficial owner** | **Ordinary shares<br> beneficially owned** | **Percentage <br> owned** |
| **5% or Greater Shareholders** |  |  |
| Esther Luzzatto (1) | 468750 | 7.0% |
| Aquamarine Equity Fund Ltd (2) | 338541 | 5.1% |
| **Directors and Executive Officers** |  |  |
| Jonathan Adereth | 129062 | 1.9% |
| Dr. Elazar Sonnenschein (3) | 1872092 | 28.1% |
| Eran Hirsh (4) | 2742 | \* |
| Michael Hamelsdorf (5) | 3427 | \* |
| Menashe Sonnenschein (6) | 6093 | \* |
| Meir Shmouely (7) | 19906 | \* |
| Linda Messalem (8) | 43945 | \* |
| Rachel Guz-Lavi (9) | 46875 | \* |
| Prof. Anat Loewenstein (10) | 43945 | \* |
| Hagai Itkin |  |  |
| **All directors and executive officers as a group (10 persons)** | 2975378 | 44.7% |

---

\* Indicates beneficial ownership of less than 1% of the total ordinary shares outstanding.

(1) To our knowledge, consists of (i) 166,816 ordinary shares held by Esther Luzzatto, (ii) 97,125 ordinary shares held by Ms. Luzzatto's husband Kfir Luzzatto, and (iii) 204,808 ordinary shares held by Eluv Ltd., a private company wholly owned by Esther and Kfir Luzzatto. The principal address of Esther and Kfir Luzzatto is Berkowitz 4 Tel Aviv.

(2) Aquamarine Equity Fund Ltd. is a CIMA (Cayman Islands Monitoring Authority) registered investment fund. Aquamarine's administrator is Trident Trust and the investment manager is Aquamarine Financial (Cayman) Ltd., a company owned by Astral River Ltd, which is owned by Bryan Schapira. Aquamarine's investors do not have voting rights, and the voting rights are held by its investment manager. Aquamarine's asset management investment decisions are made by a dedicated investment team consisting of independent directors. The principal address of Aquamarine is One Capital Place, George Town, Grand Cayman, Cayman Islands.

(3) Includes 883,162 ordinary shares held by D.L.L.D. Consulting Ltd., a private company wholly owned by Dr. Sonnenschein.

(4) Consists of options to purchase 2,742 ordinary shares at an exercise price of $10.27 per share and expiring on August 14, 2031. Does not include options to purchase 457 ordinary shares that vest in more than 60 days from December 28, 2025.

(5) Consists of options to purchase 3,427 ordinary shares at an exercise price of $18.18 per share and expiring on October 18, 2030. Does not include options to purchase 380 ordinary shares that vest in more than 60 days from December 28, 2025.

(6) Consists
 of options to purchase 6,093 ordinary shares at an exercise price of $38.03 per share and expiring on October 7, 2028.

(7) Consists of (i) 13,812
 ordinary shares and (ii) options to purchase 6,093 ordinary shares at an exercise price of $38.13 per share and expiring
 on October 3, 2028.

(8) Consists of options to
 purchase 43,945 ordinary shares at an exercise price of $42.64 per share and expiring on August 10, 2028. Does not include options
 to purchase 1,464 ordinary shares that vest in more than 60 days from December 28, 2025.

(9) Consists of options to
 purchase 46,875 ordinary shares at an exercise price of $0.03 per share and expiring on January 5, 2028.

(10) Consists of options to
 purchase 43,945 ordinary shares at an exercise price of $42.64 per share and expiring on August 10, 2028. Does not include
 options to purchase 1,464 ordinary shares that vest in more than 60 days from December 28, 2025.

***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, 2022.

**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. The terms of such awards may contain acceleration provisions upon certain transactions. 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."

***GE Healthcare Private Placement***

 ****

Under the terms of the Investment Agreement, GE Healthcare purchased 449,178 of our ordinary shares for $21 million. Under the terms of the Investment Agreement GE Healthcare agreed to purchase an additional 449,178 of our ordinary shares for $21 million subject to obtaining FDA approval for Pulsenmore ES by the end of September 2023 however the conditions for the purchase were not met and therefore the investment did not take place. On December 12, 2025 GE Healthcare notified us that it sold all their ordinary shares held by it.

***Patent Services***

We receive patent registration and drafting services from Luzzatto & Luzzatto Patent Attorneys, or Luzzatto. Esther Luzzatto and Kfir Luzzatto, principals of Luzzatto, beneficially own 468,750 of our ordinary shares. During first quarter ended 2025 and during 2024, 2023, and 2022, we paid Luzzatto the following amounts for their services NIS 311,000 (approximately $85,000), NIS 605,000 (approximately $166,000), NIS 483,000 (approximately $132,000), and NIS 877,000 (approximately $240,000), respectively.

**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 June 16, 2021 under the symbol "PULS".

**B. Plan of Distribution**

Not applicable.

**C. Markets**

Our ordinary shares have been traded on the TASE since June 16, 2021 under the symbol "PULS". 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 December 28, 2025, our authorized share capital consisted of 31,250,000 ordinary shares, NIS 0.00032 par value per share, of which 6,502,844 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 May 11, 2022, we entered into a Private Placement Agreement with GE Healthcare Global Holdings, Inc. pursuant to which we issued 449,178 ordinary shares for aggregate consideration of $21,000,000.

● Options to purchase ordinary shares were exercised into an aggregate of 77,265 ordinary shares for aggregate consideration of $2,472,000.

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 December 28, 2025, we had one holder of record of our ordinary shares (the TASE nominee company).

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 515139129.

***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 articles of association, our board of directors consists of no less than 5 and no more than 10 (including external directors to the extent required to be appointed to our board of directors pursuant to the Companies Law, and independent directors). The directors (excluding external directors, to the extent external directors are required to be elected and to serve on the board of directors pursuant to the requirements of the Companies Law), are classified, with respect to the term for which they each severally hold office, into three classes, as nearly equal in number as practicable, designated as Class I, Class II and Class III. The board of directors may assign members of the Board already in office to such classes at the time such classification becomes effective.

The terms of the classes shall be as follows: (i) the term of office of the initial Class I directors commences on the annual general meeting to be held in 2025 and shall expire at the annual general meeting of shareholders to be held in 2026 and when their successors are elected and qualified, (ii) the term of office of the initial class II directors commences on the annual general meeting to be held in 2025 and shall expire at the first annual meeting following the annual general meeting referred to in (i) above and when their successors are elected and qualified, and (iii) the term of office of the initial Class III directors commences on the annual general meeting to be held in 2025 and shall expire at the first annual general meeting following the annual general meeting referred to in (ii) above and when their successors are elected and qualified.

Unless stated otherwise in our articles of association, the appointment and dismissal of directors (other than external directors) shall be made only by the annual general meeting. At each annual general meeting of our shareholders, commencing with the annual general meeting of our shareholders held in 2025, each of the successors elected to replace the directors of a class whose term shall have expired at such annual general meeting of our shareholders shall be elected to hold office until the third annual general meeting of our shareholders next succeeding his or her election and until his or her respective successor shall have been elected and qualified. Notwithstanding anything to the contrary, each director shall serve until his or her successor is elected and qualified or until such earlier time as such director's office is vacated.

If the number of directors (excluding external directors) that constitutes the board of directors is hereafter changed, the then-serving directors shall be re-designated to other classes and/or any newly created directorships or decrease in directorships shall be apportioned by the board of directors among the classes so as to make all classes as nearly equal in number as is practicable, provided that no decrease in the number of directors constituting the board of directors shall shorten the term of any incumbent director.

Directors so elected may not be dismissed from office by the shareholders or by a general meeting of our shareholders prior to the expiration of their term of office. The directors do not receive any benefits upon the expiration of their term of office.

Any amendment or replacement of our Amended and Restated Articles of Association regarding the election of directors, as described above, require a majority of two thirds (66 2/3%) of the voting power represented at the general meeting of our shareholders in person or by proxy and voting thereon, disregarding abstentions from the count of the voting power present and voting.

A director, who ceases to meet the statutory requirements to serve as a director, external director or independent director, as applicable, must notify the company to that effect immediately and his or her service as a director will expire upon submission of such notice.

***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***

Except for the provisions regarding a staggered board as mentioned above, 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 the discussion is based on new tax legislation which has not been subject to judicial or administrative interpretation, there can be no assurance that the tax authorities will accept the views expressed in this discussion. This summary is based on laws and regulations in effect as of the date hereof, and is not intended, and should not be taken, as legal or professional tax advice and is not exhaustive of all possible tax considerations.

***General Corporate Tax Structure in Israel***

Israeli resident companies are generally subject to corporate tax. The current corporate tax rate, as from 2018 is 23% However, the effective tax rate payable by a company that derives income from an 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 prevailing 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 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;

● Under limited conditions, an election to file consolidated tax returns with related Israeli Industrial Companies; and

● A straight-line deduction of expenses related to a public offering over a three–year period commencing on the year of 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 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 as of April 1, 2005, as of January 1, 2011, and as of 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 in addition is part of a group of companies having aggregate annual revenues above 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 provided under the Investment Law could potentially reduce our corporate tax liabilities.

**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. the Ordinance, distinguishes between "Real Capital Gain" and the "Inflationary Surplus." The Inflationary Surplus is a portion of the total capital gain which is equivalent to the increase of the relevant asset's purchase price which is attributable to the increase in the Israeli consumer price index or the foreign exchange rate differences in certain cases, between the date of purchase and the date of sale. The Real Capital Gain is the excess of the total capital gain over Inflationary Surplus. Inflationary Surplus is currently not subject to tax in Israel.

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 Israeli Tax Authority 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***

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 and the foregoing conditions are met, such dividends are subject to a withholding tax rate of 15% 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***

Furthermore, an additional tax liability at the rate of 3% is applicable on the annual taxable income, including, but not limited to, income derived from dividends, interest and capital gains, of individuals who are subject to tax in Israel (whether such individual is an Israeli resident or non-Israeli resident) exceeding a certain threshold (NIS 721,560 in 2024), which amount is linked to the Israeli consumer price index (according to the latest legislative acts, such linkage will be freeze for the years 2025-2027).

In addition to the above, as of January 1, 2025, individuals whose taxable income from capital sources (income from capital gains, dividends and interests) in the tax year exceeds the amount specified above (NIS 721,560 also in 2025), will be subject to an additional tax at a rate of 2% (5% in total), on the portion of their taxable income from capital sources that exceeds the amount above.

***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, 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, 2024 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 or will not become a 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***

A U.S. Holder may be subject to backup withholding at a rate of 24% with respect to cash dividends and proceeds from a disposition of ordinary shares. In general, backup withholding will apply only if a U.S. Holder fails to comply with specified identification procedures. Backup withholding will not apply with respect to payments made to designated exempt recipients, such as corporations and tax-exempt organizations. Backup withholding is not an additional tax and may be claimed as a credit against the U.S. federal income tax liability of a U.S. Holder, provided that the required information is timely furnished to the IRS.

Certain U.S. Holders with interests in "specified foreign financial assets" (including, among other assets, our ordinary shares, unless such ordinary shares are held on such U.S. Holder's behalf through a financial institution) may be required to file an information report with the IRS if the aggregate value of all such assets exceeds $50,000 on the last day of the taxable year or $75,000 at any time during the taxable year (or such higher dollar amount as may be prescribed by applicable IRS guidance). You should consult your own tax advisor as to the possible obligation to file such information report.

**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. Statement by Experts**

The financial statements as of December 31, 2024 and 2023 and for the three years in the period ended December 31, 2024 included in this registration statement have been so included in reliance on the report of Kesselman & Kesselman, Certified Public Accountants (Isr.), a member of PricewaterhouseCoopers International Limited, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. The address of Kesselman & Kesselman is 146 Derech Menachem Begin St. Tel-Aviv 6492103, Israel.

**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, and our officers, directors and principal shareholders will be exempt from the reporting and short-swing profit recovery provisions contained in Section 16 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 www.pulsenmore.com. 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 __. 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 Hagai Itkin, Racheli Guz-Lavi, Anat Loewenstein and Linda Messalem 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\* | [Pulsenmore Ltd. 2019 Amended Share Incentive Plan.](ex4-1.htm) |
| 4.2\*+ | [Pulsenmore Ltd. 2023 United States Sub-Plan to the 2019 Amended Share Incentive Plan](ex4-2.htm) |
| 4.3\*+ | [Compensation Policy for Executive Officers and Directors](ex4-3.htm) |
| 4.4\*+ | [Form of Indemnification Agreement](ex4-4.htm) |
| 4.5\*+ | [Consultancy Agreement, dated November 6, 2016 by and between Pulsenmore Ltd. and D.L.L.D. Consulting Ltd.](ex4-5.htm) |
| 4.6\*+ | [Personal Employment Agreement, dated December 20, 2020 between Pulsenmore Ltd. and Jonathan Adereth.](ex4-6.htm) |
| 4.7\*+ | [Employment Agreement, dated January 1, 2022 by and between Pulsenmore Ltd. and Meir Shmouely](ex4-7.htm) |
| 4.8\*+ | [Employment Agreement, dated October 17, 2021 by and between Pulsenmore Ltd. and Minelu (Menashe) Sonnenschein](ex4-8.htm) |
| 4.9\*#^ | [Agreement for the Supply of Services and Products dated October 28, 2024, by and between Pulsenmore Ltd. and Clalit Health Services](ex4-9.htm) |
| 4.10\*#^ | [Agreement for the Supply of Services and Products dated August 2, 2020, by and between Pulsenmore Ltd. and Clalit Health Services](ex4-10.htm) |
| 4.11\*^ | [Addendum dated August 8, 2020 to Agreement for the Supply of Services and Products dated December 14, 2021, by and between Pulsenmore Ltd. and Clalit Health Services](ex4-11.htm) |
| 8.1\* | [Subsidiaries of the Registrant.](ex8-1.htm) |
| 15.1\* | [Consent of Kesselman & Kesselman, independent registered public accounting firm of the Company](ex15-1.htm) |

---

---

| | |
|:---|:---|
| \* | Filed herewith. |
| + | Indicates a management contract or any compensatory plan, contract or arrangement. |
| # | English translation of original Hebrew document. |
| ^ | 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. |

---

**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.

---

| | | |
|:---|:---|:---|
|  | **PULSENMORE LTD.** | **PULSENMORE LTD.** |
| Date: December 29, 2025 | By: | */s/ Dr. Elazar Sonnenschein* |
|  |  | Dr. Elazar Sonnenschein |
|  |  | Chief Executive Officer |

---

**PULSENMORE LTD.**

**CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF DECEMBER 31, 2024**

**IN NIS**

**INDEX**

---

| | |
|:---|:---|
| **[REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#Aa_001) (PCAOB name: Kesselman & Kesselman C.P.A.s and PCAOB ID: 1309)** | F-2 |
| **[Consolidated Statements of Financial Position](#Aa_002)** | F-3 |
| **[Consolidated Statements of Comprehensive Loss](#Aa_003)** | F-4 |
| **[Consolidated Statements of Changes in Equity](#Aa_004)** | F-5 |
| **[Consolidated Statements of Cash Flows](#Aa_005)** | F-7 |
| **[Notes to the Consolidated Financial Statements](#Aa_006)** | F-9 |

---

**CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF JUNE 30, 2025**

**IN NIS**

**INDEX**

---

| | |
|:---|:---|
| **[Condensed Consolidated Statements of Financial Position](#mj_001)** | F-54 |
| **[Condensed Consolidated Statements of Comprehensive Loss](#mj_002)** | F-55 |
| **[Condensed Consolidated Statements of Changes in Equity](#mj_003)** | F-56 |
| **[Condensed Consolidated Statements of Cash Flows](#mj_005)** | F-58 |
| **[Notes to the Condensed Consolidated Financial Statements](#mj_007)** | F-60 |

---

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and Shareholders of Pulsenmore Ltd.

***Opinion on the Financial Statements***

We have audited the accompanying consolidated statements of financial position of Pulsenmore Ltd. and its subsidiaries (the "Company") as of December 31, 2024 and 2023, and the related consolidated statements of comprehensive loss, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the "consolidated financial statements").

In our opinion, the consolidated 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 each of the three years in the period ended December 31, 2024 in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board.

***Basis for Opinion***

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated 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 of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

 ****

/s/ Kesselman & Kesselman

Certified Public Accountants (Isr.)

A member firm of PricewaterhouseCoopers International Limited

 ****

Tel-Aviv, Israel

May 8, 2025, except for the effects of the reverse share split effected December 28, 2025 as discussed in note 1(b), as to which the date is December 29, 2025

We have served as the Company's auditor since 2021.

Kesselman & Kesselman, 146 Derech Menachem Begin St. Tel-Aviv 6492103, Israel,

P.O Box 7187 Tel-Aviv 6107120, Telephone: +972 -3- 7954555, Fax:+972 -3- 7954556, www.pwc.com/il

**PULSENMORE LTD.**

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars (see note 2(c)(3))** |
|  | <br>**Note** | **December 31,** | **December 31,** | **December 31,** |
|  |  | **2023** | **2024** | **2024** |
|  |  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| **Assets** |  |  |  |  |
| **CURRENT ASSETS** |  |  |  |  |
| Cash and cash equivalents | 5 | 23869 | 41170 | 11287 |
| Short-term bank deposits | 5 | 117852 | 62853 | 17234 |
| Restricted deposits | 5 | 140 | 140 | 40 |
| Trade receivables | 6 | 962 | 3909 | 1072 |
| Other receivables | 6 | 1372 | 1237 | 339 |
| Inventory | 7 | 23690 | 23092 | 6332 |
| &nbsp;&nbsp;&nbsp;Total current assets |  | 167885 | 132401 | 36304 |
| **NON-CURRENT ASSETS** |  |  |  |  |
| Right-of-use assets | 8b | 3046 | 1780 | 488 |
| Property and equipment, net | 9 | 8977 | 7645 | 2096 |
| &nbsp;&nbsp;&nbsp;Total non-current assets |  | 12023 | 9425 | 2584 |
| &nbsp;&nbsp;&nbsp;**Total assets** |  | 179908 | 141826 | 38888 |
| **Liabilities and equity** |  |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |  |
| Trade payables |  | 4924 | 2359 | 647 |
| Other payable and accruals | 1011 | 2660 | 3780 | 1037 |
| Contract liabilities | 12a(2) | 5133 | 5133 | 1407 |
| Share-based compensation liability | 13 | 1103 | 1458 | 400 |
| Current maturities of liability for royalties to the Israel Innovation Authority | 12a(4) | 773 | 532 | 146 |
| Current maturities of lease liabilities | 8c | 923 | 999 | 274 |
| &nbsp;&nbsp;&nbsp;Total current liabilities |  | 15516 | 14261 | 3911 |
| **NON-CURRENT LIABILITIES** |  |  |  |  |
| Contract liabilities | 12a(2) | 22897 | 22897 | 6278 |
| Share-based compensation liability, net of current maturities | 13 | 402 | 164 | 45 |
| Liability for royalties to the Israel Innovation Authority, net of current maturities | 12a(4) | 6454 | 6497 | 1781 |
| Lease liabilities, net of current maturities | 8c | 2407 | 1120 | 307 |
| &nbsp;&nbsp;&nbsp;Total non-current liabilities |  | 32160 | 30678 | 8411 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** |  | 47676 | 44939 | 12322 |
| **EQUITY** | 13 |  |  |  |
| Ordinary shares |  | 2 | 2 | 1 |
| Share premium |  | 252473 | 253205 | 69428 |
| Capital reserve |  | 10309 | 10968 | 3007 |
| Accumulated deficit |  | (130552) | (167288) | (45870) |
| &nbsp;&nbsp;&nbsp;Total equity |  | 132232 | 96887 | 26566 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and equity** |  | 179908 | 141826 | 38888 |

---

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(b)**

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

**PULSENMORE LTD.**

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | | | **Convenience<br> translation into<br> U.S. dollars (see note 2(c)(3))** |
|  | | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | <br>**Note** | **2022** | **2023** | **2024** | **2024** |
|  |  | **NIS in thousands (except per share data)** | **NIS in thousands (except per share data)** | **NIS in thousands (except per share data)** | **in thousands (except per share data)** |
| Revenues | 15b | 10814 | 6188 | 9661 | 2649 |
| Cost of revenues | 15c | 5690 | 3987 | 6084 | 1668 |
| **Gross profit** |  | 5124 | 2201 | 3577 | 981 |
| Research and development expenses, net | 16 | 29623 | 31399 | 20130 | 5520 |
| Sales and marketing expenses | 17 | 8917 | 9434 | 10318 | 2829 |
| General and administrative expenses | 18 | 12786 | 16954 | 15344 | 4207 |
| **Operating loss** |  | 46202 | 55586 | 42215 | 11575 |
| Financial expenses |  | 349 | 16206 | 540 | 148 |
| Financial income |  | (24432) | (13352) | (5963) | (1635) |
| Financial expenses (income), net | 19 | (24083) | 2854 | (5423) | (1487) |
| **Loss before income tax** |  | 22119 | 58440 | 36792 | 10088 |
| Provision (benefit) for income tax |  | - | 127 | (56) | (15) |
| **Net loss and comprehensive loss** |  | 22119 | 58567 | 36736 | 10073 |
| Loss per ordinary share – basic and diluted | 20 | 3.68 | 9.12 | 5.76 | 1.6 |

---

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(b)**

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

**PULSENMORE LTD.**

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Ordinary<br> shares** | **Share<br> premium** | **Capital<br> reserve** | **Accumulated<br> deficit** | **Total** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** |
| **Balance at January 1, 2022** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 | 201074 | 2525 | (49866) | 153734 |
| Changes in 2022: |  |  |  |  |  |
| Net loss and comprehensive loss for the year |  |  |  | (22119) | (22119) |
| Share-based compensation |  |  | 4731 |  | 4731 |
| Exercise of options | 1 | 32 | (32) |  | 1 |
| Private issuance of shares, net\*\* | \* | 51171 | - | - | 51171 |
| **Balance at December 31, 2022** | 2 | 252277 | 7224 | (71985) | 187518 |
| Changes in 2023: |  |  |  |  |  |
| Net loss and comprehensive loss for the year |  |  |  | (58567) | (58567) |
| Share-based compensation |  |  | 3279 |  | 3279 |
| Exercise of options | \* | 58 | (56) |  | 2 |
| Expiration of options | - | 138 | (138) | - | - |
| **Balance at December 31, 2023** | 2 | 252473 | 10309 | (130552) | 132232 |
| Changes in 2024: |  |  |  |  |  |
| Net loss and comprehensive loss for the year |  |  |  | (36736) | (36736) |
| Share-based compensation |  |  | 1388 |  | 1388 |
| Exercise of options | \* | 100 | (97) |  | 3 |
| Expiration of options | - | 632 | (632) | - | - |
| **Balance at December 31, 2024** | 2 | 253205 | 10968 | (167288) | 96887 |

---

**\*** Less than NIS 1 thousand

**\*\*** Net of issuance expenses in an amount of approximately NIS 538 thousand

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(b)**

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

**PULSENMORE LTD.**

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Convenience translation into U.S. dollars (see note 2(c)(3))** | **Convenience translation into U.S. dollars (see note 2(c)(3))** | **Convenience translation into U.S. dollars (see note 2(c)(3))** | **Convenience translation into U.S. dollars (see note 2(c)(3))** | **Convenience translation into U.S. dollars (see note 2(c)(3))** |
|  | **in thousands** | **in thousands** | **in thousands** | **in thousands** | **in thousands** |
|  | **Ordinary<br> shares** | **Share<br> premium** | **Capital<br> reserve** | **Accumulated<br> deficit** | **Total** |
| **Balance at January 1, 2024** | &nbsp;&nbsp;&nbsp;&nbsp;1 | 69228 | 2826 | (35797) | 36258 |
| Changes in 2024: |  |  |  |  |  |
| Net loss and comprehensive loss for the year |  |  |  | (10073) | (10073) |
| Share-based compensation |  |  | 381 |  | 381 |
| Exercise of options | \* | 27 | (27) |  | \* |
| Expiration of options | - | 173 | (173) | - | - |
| **Balance at December 31, 2024** | 1 | 69428 | 3007 | (45870) | 26566 |

---

**\*** Less than $1 thousand

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(b)**

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

**PULSENMORE LTD.**

CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into USD**<br> **(note 2(c)(3))** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Net cash used in operating activities (see appendix) | (27523) | (49664) | (41461) | (11369) |
| **Cash Flows from Investing Activities** |  |  |  |  |
| Purchase of property and equipment | (4506) | (3926) | (509) | (140) |
| Proceeds from (investments in) short-term deposits | (122551) | 53780 | 51419 | 14099 |
| Interest received | 2503 | 6853 | 7671 | 2103 |
| Net cash provided by (used in) investing activities | (124554) | 56707 | 58581 | 16062 |
| **Cash Flows from Financing Activities** |  |  |  |  |
| Private issuance of shares, net | 51171 |  |  |  |
| Exercise of options | 1 | 2 | 3 | 1 |
| Payment to the Israel Innovation Authority | (151) | (297) | (108) | (30) |
| Receipt of grants from Israel Innovation Authority | 1231 | 492 |  |  |
| Principal portion of lease payments | (1097) | (994) | (1167) | (320) |
| Interest portion of lease payments | (188) | (347) | (292) | (80) |
| Net cash provided by (used in) financing activities | 50967 | (1144) | (1564) | (429) |
| **Increase (decrease) in cash and cash equivalents** | (101110) | 5899 | 15556 | 4264 |
| **Cash and cash equivalents at beginning of the year** | 112862 | 15368 | 23869 | 6545 |
| **Exchange differences on cash and cash equivalents**  | 3616 | 2602 | 1745 | 478 |
| **Cash and cash equivalents at end of the year** | 15368 | 23869 | 41170 | 11287 |

---

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

**PULSENMORE LTD.**

CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Appendix to the statements of cash flows** | | | | **Convenience<br> translation into USD (note 2(c)(3))** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Net loss | (22119) | (58567) | (36736) | (10073) |
| **Adjustments for:** |  |  |  |  |
| Depreciation and amortization | 1296 | 2403 | 2852 | 782 |
| Share-based compensation | **4731** | 3279 | 1388 | 381 |
| Financial expenses (income) | (10202) | 9254 | (4871) | (1336) |
| Exchange differences | (10901) | (6425) | (552) | (151) |
|  | (15076) | 8511 | (1183) | (324) |
| **Changes in operating asset and liability items:** |  |  |  |  |
| Decrease (increase) in trade receivables | (8642) | 8965 | (2947) | (808) |
| Decrease in other receivables | 2011 | 1463 | 135 | 37 |
| Decrease (increase) in inventory | (9767) | (9441) | 598 | 164 |
| Increase (decrease) in trade payables | 5030 | (936) | (2565) | (703) |
| Increase (decrease) in other payable and accruals accruals | 539 | (62) | 1120 | 307 |
| Increase in contract liabilities | 20513 | 157 |  |  |
| Increase in liability of share-based compensation | 435 | 246 | 117 | 31 |
| Decrease in liability of royalties to Israel Innovation Authority | (447) | - | - | - |
|  | 9672 | 392 | (3542) | (972) |
| **Net cash used in operating activities** | (27523) | (49664) | (41461) | (11369) |
| **Supplemental information on non-cash transactions:** |  |  |  |  |
| Changes in right-of-use asset and lease liabilities | 4142 | 119 | (244) | (67) |
| Recognition of derivative financial instrument (see note 4b(3)) | 5070 | - | - | - |

---

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

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 1 – GENERAL INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **General** 

Pulsenmore Ltd. (separately and collectively referred to with its wholly-owned subsidiaries as the "Company" or "Pulsenmore") is an Israeli-based company, incorporated in Israel, and commenced its operations on October 27, 2014. The Company's registered office is located at 8 Omarim Street, Omer, Israel.

In March 2022, the Company established a wholly owned subsidiary, Pulsenmore Americas LLC (hereinafter – the "U.S. Subsidiary"), located in Boston, USA. The U.S. Subsidiary was incorporated under Delaware state law and began operations on March 10, 2022.

In February 2023, the Company established a wholly owned subsidiary, Pulsenmore Korea (hereinafter – the "Korean Subsidiary"), located in Seongnam, South Korea.

As of December 31, 2024, the Company operates in a one operating segment, focusing on the research, development, manufacturing, and global marketing of innovative technological solutions, specifically portable ultrasound devices for home use. These devices enable remote physical examinations and monitoring via telemedicine technology. The Company develops and sells miniaturized ultrasound systems.

The Company is a publicly traded entity, with its shares listed on the Tel Aviv Stock Exchange (hereinafter –"TASE"). On June 13, 2021, the Company announced the results of its public offering, conducted under the prospectus supplement and final offering notice published on June 10, 2021. Through this offering, the Company raised approximately NIS 136,985 thousand and completed the listing of its securities for trading on TASE.

On December 8, 2024, the Company completed the preparation of its application for the marketing approval of the ES product in the United States. The application was submitted to the U.S. FDA for approval under the De-Novo pathway. The submission includes the results of clinical trials conducted in the U.S., along with additional supporting data, including results from further trials, safety data, and laboratory technical assessments.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 1 – GENERAL INFORMATION** (cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Reverse share split** 

Following the approval of the Company's Board of Directors on April 3, 2025 and the Company's General Shareholders meeting approval on May 20, 2025, the Company's Board of Directors approved on December 18, 2025, a 1-for-8 reverse share split of the Company's ordinary shares. Every eight ordinary shares, par value NIS 0.00004 each will be consolidated to one ordinary share, par value NIS 0.00032 each. In addition, the number of shares resulting from the exercise of the options will also be adjusted, in which the number of options will be decreased in the same proportion, and the exercise price of the options will be multiplied by the consolidated conversion ratio (without changing the total exercise price of all securities allocated).

The reverse share split will not be considered a change in the rights attached to the Company's ordinary shares.

Unless otherwise indicated herein, all references made to share or per share amounts in these consolidated financial statements (including the notes to the financial statements), have been retroactively adjusted to reflect the reverse share split.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **War in Israel** 

On October 7, 2023, Hamas Organization ("Hamas") launched an unprecedented attack on Israel, infiltrating its southern border and targeting civilians and military sites while firing rockets. In response, Israel declared war on Hamas, and the conflict is ongoing. Following the attack, Hezbollah Organization ("Hezbollah") also launched strikes on northern Israel, prompting Israeli retaliatory strikes. In October 2024, Israel initiated a ground operation in Lebanon. By the end of November 2024, Israel and Hezbollah reached a ceasefire agreement, and in January 2025, Israel and Hamas also reached a ceasefire agreement, though the stability of both agreements remains uncertain. To date, there is no material adverse impact on Company's operations and financial results as a result of this war. However, at this time, it is not possible to predict the intensity or duration of the war, nor can the Company predict how this war will ultimately affect Israel's economy in general. The Company continues to monitor the situation closely and examine the potential disruptions that could adversely affect its operations.

In March 2025, the ceasefire on the southern front ended, and the conflict has been resumed. The Company assesses that even in the event of a prolonged war and economic slowdown in Israel, it will be able to meet its existing obligations as of December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D)** **Impact of inflation and interest rate increases throughout 2024** 

During 2024, Inflation and interest rates continued to rise in Israel and globally. The Bank of Israel increased the interest rate from 4.25% at the beginning of the year to 4.75% as of December 31, 2024. The Company also periodically reviews its investment policy in light of changes in interest rates both domestically and internationally. As of the date of these financial statements, the Company is in the opinion that the continued rise in inflation and interest rates will not have a material impact on its financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E)** **Approval of consolidated financial statements** 

These consolidated financial statements were authorized for issuance by the board of directors on May 8, 2025.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 2 – MATERIAL ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Compliance with IFRS Accounting Standards and disclosure requirements** 

The consolidated financial statements as of December 31, 2024, 2023 and for each of the three years in the period ended December 31, 2024, have been prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Basis of presentation of the financial statements** 

1) The material accounting policies described below have been applied on a consistent basis for all the years presented, unless otherwise stated.

2) The preparation of financial statements in accordance with IFRS Accounting Standards requires management to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity and expenses, as well as the related disclosures of contingent assets and liabilities, in the process of applying the Company's accounting policies. Actual results could differ from those estimates

3) The Company's operating cycle is 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Translation of balances and transactions in foreign currency** 

1) <u>Functional currency</u>

The functional and reporting currency in these financial statements is the New Israeli Shekels (NIS), which is the primary currency of the economic environment in which the Company operates.

2) <u>Transactions and balances</u>

Transactions made in a currency which is different from the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where the items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the end-of-year exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in comprehensive loss as financial income (expense).

Translation differences related to non-monetary financial assets and liabilities (such as equity securities like shares or options) classified as financial instruments at fair value through comprehensive loss are recognized in comprehensive loss, as part of the gain or loss on changes at fair value.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 2 – MATERIAL ACCOUNTING POLICIES (cont.)**

3) <u>Convenience translation into U.S. dollars</u>

The reported NIS amounts as of December 31, 2024 and for the year then ended have been translated into U.S. dollars ("US dollars", "USD", "$"). All figures were translated using the representative exchange rate as of December 31, 2024 ($1 = NIS 3.647). The translation was made solely for the convenience of the reader. The dollar amount presented in these financial statements should not be construed to represent amounts receivable or payable in dollars or convertible into dollars, unless otherwise indicated in these financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D)** **Consolidated financial statements:** 

A subsidiary is an entity over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. The subsidiaries are deconsolidated from the date that control ceases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E)** **Critical accounting estimates and judgments** 

**1)** **<u>Critical accounting estimates and assumptions</u>**

Estimates and judgments are continuously evaluated and are based on past experience and other factors, including expectations regarding future events that are considered reasonable in light of existing circumstances. The Company formulates estimates and assumptions about the future. By their nature, it is rare for accounting estimates to exactly match the actual results. The estimates and assumptions that carry a significant risk of requiring material adjustments to the carrying amounts of assets and liabilities in the financial statements during the next fiscal year are detailed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) <u>Fair value of derivatives</u> 

The fair value of financial instruments that are not traded in an active market (e.g., over-the-counter derivatives) is determined using valuation techniques. The Company exercises judgment in selecting different valuation methods and in making assumptions, which are primarily based on prevailing market conditions at each reporting date.

The Company has engaged with a valuation specialist to determine the fair value of financial assets measured at fair value that are not traded in an active market, using generally accepted valuation techniques (see also Note 4b(3)).

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 2 – MATERIAL ACCOUNTING POLICIES (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) <u>Liability for grants from the Israel Innovation Authority</u> 

In accordance with the accounting treatment outlined in Note 12a(4), the Company's management must assess whether there is reasonable assurance that a grant received from the Israel Innovation Authority will not be repayable. If management concludes that there is no reasonable assurance that a grant, for which eligibility has been established, will not be repaid, the Company recognizes a financial liability. The present value of the liability for grants (see also Note 12a(4) is based on the Company's management forecasts and assumptions regarding the royalty payments to be made based on the Company's future revenues and the applicable discount rate.

The Company's financial statements include a liability for grants to be repaid, based on the projected aggregate sales of the Company in the coming years. Management's forecasts for aggregate sales until the full repayment of the grants are based on the Company's planned sales of its products in the coming years.

**2)** **Critical judgments impacting the application of the Company's accounting policies**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) <u>Determination of lease period</u> 

As part of applying IFRS 16, the Company's management considers facts and circumstances that create an economic incentive of the exercise of extension options or the non-exercise of termination options. Extension options, or periods after the exercise of termination options, are included in the term of the lease only to the extent that it is reasonably certain that the lease will be extended (or not terminated).

The Company assess that all existing extension options in the lease agreements that it is party to are reasonably certain to be exercised, and all termination options are reasonably certain not be exercised.

The Company's management examines whether the extension option is reasonably certain to be exercised, or the termination option is reasonably certain not to be exercised, upon the occurrence of a significant event or change in circumstances that is under the control of the Company, and also affect the decision whether the Company is reasonably certain to exercise an option that was not previously included in determining the lease period, or not exercise an option previously included in determining the term of the lease.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 2 – MATERIAL ACCOUNTING POLICIES (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) <u>Research and development capitalization</u> 

In accordance with the accounting treatment described in Note 16(a), the Company's management must assess whether the criteria for recognizing development costs. as intangible assets are met. The Company's management exercised judgment in evaluating whether the criteria for capitalizing development costs related to its projects were met. Management concluded that, for Pulsenmore ES and Pulsenmore FC products, the incurred costs are considered maintenance of existing assets rather than the development of new ones, whereas for the Company's other products, as of the reporting date, there is insufficient certainty regarding the technical feasibility of completing the asset in a manner that would make it available for use or sale.

As of December 31, 2024, 2023 and 2022, the Company has not met the criteria for capitalizing development costs as intangible assets, and accordingly, no asset has so far been recognized in the consolidated financial statements in respect of capitalized development costs. Consequently, the research and development costs of the Company are fully recognized in the statement of comprehensive loss as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) <u>Share-based compensation</u> 

Expenses related to options granted to directors, consultants, and employees are measured based on the fair value of the options, which is determined using the Black-Scholes pricing model. The pricing model requires assumptions regarding various factors, including expected volatility, the expected life of the options and the fair value of the shares at the grant date. The expected volatility is estimated based on the historical volatility of the Company and comparable publicly traded peer companies.

The expected life of the options is estimated based on anticipated future price volatilities and the expected exercise patterns of the option holders.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 3 – NEW IFRS ACCOUNTING STANDARDS, AMENDMENTS TO STANDARDS AND NEW INTERPRETATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) Amendments
 to existing standards adopted by the Company for reporting periods beginning on January 1,
 2024:

Classification of liabilities as current or non-current (amendment to IAS 1):

The narrow-scope amendments to IAS 1, "Presentation of Financial Statements," clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the entity's expectations or events after the reporting date (e.g., the receipt of a waiver or a breach of covenant). The amendments also clarify what IAS 1 means when it refers to the 'settlement' of a liability. The amendments may affect the classification of liabilities, particularly for entities that previously considered management's intentions to determine classification and for some liabilities that can be converted into equity and must be applied retrospectively in accordance with the normal requirements in IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors." In this regard, the amendment was applied retrospectively in these financial statements as of January 1, 2024. The adoption of the amendment had no a material impact on the Company's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) New and amended IFRS accounting
 standards not yet effective and not early adopted by the Company:

IFRS 18, presentation and disclosure in the financial statements:

IFRS 18 replaces IAS 1 "Presentation of financial statements", with many requirements of IAS 1 being transferred to IFRS 18, including to a number of additional standards (without change, or with some changes). IFRS 18 is intended to improve disclosure of information in financial statements by entities to investors, and particularly increase transparency and comparability between companies, with focus on financial performance presented in the income statement. Additionally, IFRS 18 is accompanied by amendments to IAS 7 "Statement of cash flows" (the most significant of which concern the classification of cash flows from interest and dividends), IAS 33 "Earnings per share" and IAS 34 "Interim financial reporting". The main new principles introduced by IFRS 18 relate to the following:

The main new principles introduced by IFRS 18 relate to the following:

1) <u>Structure of the income statement</u>

According to IFRS 18, all items of income and expenses are classified into one of the five categories of operating, investing, financing, income taxes and discontinued operations.

The following is additional information about the main three categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) Operating
 – This category is not defined by IFRS 18 and is a "residual" category
 for income and expenses not classified into one of the three other categories. Generally,
 this category will include the results of the company from its main business activity.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 3 – NEW IFRS ACCOUNTING STANDARDS, AMENDMENTS TO STANDARDS AND NEW (Cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) Investing
 – This category includes share in the results of associates and joint ventures; income
 and expenses from cash and cash equivalents: income and expenses from assets that generate
 a return individually and largely independently of the entity's other resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) Financing – This category
 includes income and expenses from liabilities that involve only the
 raising of finance (such as typical bank borrowings); interest expense and the effect of changes in interest rates on other liabilities
 (such as an actuary liability to employees). In addition, according to IFRS 18, companies are required to present two new
 subtotals in their income statement:

1) Operating income <br> 2) Income before financing and tax

2) <u>Principles for aggregation and disaggregation of information in the primary financial statements and notes</u>

IFRS 18 sets principles to help companies determine whether items need to be presented in the primary financial statements (statement of financial position, income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows) or notes and provides principles for determining the level of detail needed. Additionally, IFRS 18 contains requirements for disclosing operating expenses in the income statement, disclosure of certain expenses by nature, and additional information about items aggregated together under the "other" item. In its first year of application, IFRS 18 required to present a reconciliation of comparative information between presentation under IAS 1 and IFRS 18.

According to the provisions of IFRS 18, the standard will be applied by the Group for annual periods beginning on or after January 1, 2027, retrospectively. The Group began assessing the impact of applying IFRS 18 on its consolidated financial statements. However, at this stage, the impact of first-time adoption cannot be reasonably estimated.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 4 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Financial risks management** 

Financial risk factors:

The activities of the Company are exposed to a variety of financial risks, including: market risks (including currency risk and cash flow risk due to interest rate), credit risk and liquidity risk. Risk management is conducted by the Company's finance department, which is responsible for identifying, assessing, and mitigating financial risks. The board of directors provides principles for comprehensive risk management.

1) <u>Market risk</u>

Foreign exchange risk:

The Company operates on an international scale and is exposed to foreign exchange risk due to its exposure to various currencies, primarily the U.S. Dollar and the Euro (EUR). Foreign exchange risk arises from cash and cash equivalents, short-term deposits, contracts with customers, assets or liabilities denominated in foreign currencies.

If the NIS would strengthen by 10% against the U.S. dollar, while all other variables remained the same, the net loss for the year ended would have been approximately NIS 5,191 thousand (approximately $1,423 thousand) higher, approximately NIS 8,980 thousand higher and approximately NIS 11,975 thousand higher for the year ended December 31, 2024, 2023 and 2022, respectively.

Cash flow interest rate risk:

The Company has received grants from the Israel Innovation Authority (the "IIA") for participation in research and development activities.

Under the terms of the grant, royalties are payable to the Innovation Authority based on revenues from the sale of products developed with its support. These payments are linked to the U.S. Dollar and bear an annual interest rate based on LIBOR. As of January 1, 2024, the IIA announced a transition to a variable interest rate based on SOFR - This change did not have a material impact the Company's financial statements.

2) <u>Liquidity risk</u>

As the Company has not yet generated cash flows from operating activities, its funding sources primarily rely on the issuance of equity instruments to its shareholders.

The following tables detail the Company's remaining contractual maturities of its financial liabilities. These tables are prepared based on the undiscounted cash flows of financial liabilities, considering the earliest possible repayment date at which the Company may be required to settle its obligations. The tables include cash flows related to both principal and interest payments.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 4 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (cont.)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 year** | **2-3 years** | **More than** **3 years** | <br>**Total** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** |
| **December 31, 2024:** |  |  |  |  |
| Trade payables | 2359 |  |  | 2359 |
| Other payable and accruals | 3780 |  |  | 3780 |
| Liability of royalties to IIA | 532 | 3054 | 7859 | 11445 |
| Lease liabilities | 1165 | 1239 | - | 2404 |
|  | 7836 | 4293 | 7859 | 19988 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 year** | **2-3 years** | **More than 3 years** | <br>**Total** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** |
| **December 31, 2023:** |  |  |  |  |
| Trade payables | 4924 |  |  | 4924 |
| Other payable and accruals | 2581 |  |  | 2581 |
| Liability of royalties to IIA | 861 | 4788 | 5904 | 11553 |
| Lease liabilities | 1206 | 1851 | 820 | 3877 |
|  | 9572 | 6639 | 6724 | 22935 |

---

<u>Convenience translation into U.S. dollars (see note 2c(3))</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 year** | **2-3 years** | **More than** **3 years** | <br>**Total** |
|  | **in thousands** | **in thousands** | **in thousands** | **in thousands** |
| **December 31, 2024:** | | | | |
| Trade payables | 647 |  |  | 647 |
| Other payable and accruals | 1036 |  |  | 1036 |
| Liability of royalties to IIA | 156 | 837 | 2145 | 3138 |
| Lease liabilities | 319 | 340 | - | 659 |
|  | 2158 | 1177 | 2145 | 5480 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 4 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Financial instruments** 

1) <u>Accounting policy information – Financial assets measured at amortized cost:</u>

&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;A) Classification

Financial assets measured at amortized cost are financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and contractual terms that give rise on specific dates to cash flows. that solely represent payments of principal and interest on the outstanding principal amount. The Company's financial assets measured at amortized cost are included in the following categories: cash and cash equivalents, short-term deposits, trade receivable and other trade receivables.

The balance of short-term deposits includes deposits with banking institutions for short durations, where the original term exceeds three months from the investment date and does not meet the definition of cash equivalents. These deposits are presented in accordance with their deposit terms. The balance of trade receivables refers to amounts due from the Company's customers for goods sold in the ordinary course of business. When the collection of these amounts is expected to occur within one year or less, they are classified as current assets; otherwise, they are classified as non-current assets.

&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;B) Recognition and measurement

Financial assets measured at amortized cost are initially recognized at fair value plus transaction costs, except for trade receivables, which are initially recognized at their transaction price, as defined in IFRS 15, and measured Subsequently at amortized cost using the effective interest rate method, net of an allowance for expected credit losses. Purchases and sales in the ordinary course of business of financial assets are accounted for at settlement date, which is the date the asset is delivered to or by the Company.

Financial assets are derecognized when the rights to receive cash flows from them expire or are transferred, and the Company has substantially transferred all risks and rewards of ownership associated with these assets.

2) <u>Accounting policy information – Financial liabilities measured at amortized cost:</u> 

&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;A) Classification:

The Company's financial liabilities, excluding lease liabilities, are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. The Company's financial liabilities measured at amortized cost are included under the following items: trade payables and other payable and accruals. Trade payables include the Company's obligations to pay for goods or services purchased from suppliers in the ordinary course of business. These payables are classified as current liabilities when payment is due within one year; otherwise, they are classified as non-current liabilities. The carrying amounts of other payable and accruals and credit balances provide a reasonable approximation of their fair value, since the impact of discounting is immaterial. For the accounting policy regarding lease liabilities, see note 8(a).

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 4 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (cont.)**

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| <br>**Financial assets:**  |  |  |  |
| Cash and cash equivalents | 23869 | 41170 | 11287 |
| Short-term bank deposits | 117852 | 62853 | 17234 |
| Restricted deposits | 140 | 140 | 40 |
| Trade receivables | 962 | 3909 | 1072 |
| Other receivables | 1372 | 1237 | 339 |
|  | 144195 | 109309 | 29972 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| **Financial liabilities:** |  |  |  |
| Trade payables | 4924 | 2359 | 647 |
| Other payable and accruals | 2581 | 3780 | 1036 |
| Lease liabilities | 3330 | 2119 | 581 |
| Liability of royalties to IIA | 7227 | 7029 | 1927 |
|  | 18062 | 15287 | 4191 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 4 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (cont.)**

The carrying amounts of the Company's financial assets and financial liabilities provide a reasonable approximation of their fair value, as the impact of discounting is immaterial.

3) <u>Fair value of financial instruments:</u> 

The different levels of valuation of financial instruments are defined as follows:

---

| | |
|:---|:---|
| Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
| Level 2 | Inputs, other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). |
| Level 3 | Inputs for the asset or liability that are not based on observable market data (unobservable inputs). |

---

On June 8, 2022, the Company recognized a derivative financial instrument measured at fair value through comprehensive loss, representing a contingent forward contract in accordance with the Second Investment Agreement signed with GE Healthcare Global Holdings Inc. (see note 12a(2)). The contract was conditional upon obtaining FDA approval for the Pulsenmore ES product. As of December 31, 2023, the Company did not meet the condition precedent required for the Investor's Second Investment. Consequently, the derivative financial instrument was derecognized.

The following table presents the changes in the financial instruments measured within level 3:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **$ in thousands** |
| Balance as of January 1 |  | 15595 |  |  |
| Recognition of derivative financial <br>instrument | 5070 | - |  |  |
| Losses (profits) recognized in <br>comprehensive loss | 10525 | (15595) |  |  |
| Balance as of December 31 | 15595 | - |  |  |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 4 – FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (cont.)**

4) <u>Concentration of credit risks:</u> 

As of December 31, 2024, the outstanding balance of the main customer Clalit Health Services amounts to NIS 3,585 thousand (approximately $983 thousand). This customer does not have a credit rating from the S&P rating agency. As of the financial statement approval date, the customer's balance has been settled. The Company did not recognize any credit losses related to this client.

**NOTE 5 – CASH AND CASH EQUIVALENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

1) <u>Cash and cash equivalents in the statement of cash flows</u>

As part of the consolidated statement of cash flows, cash and cash equivalents include: cash on hand and short-term deposits and other highly liquid short-term investments.

2) <u>Classification of cash flows from interest and dividends in the statement of cash flows</u>

In the consolidated statement of cash flows, the Company presents interest received as part of cash flows from investing activities. Additionally, the Company presents interest paid as part of cash flows from financing activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Additional information** 

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| **Cash on hand and in bank:** |  |  |  |
| NIS | 11544 | 23252 | 6376 |
| US Dollar | 11926 | 17562 | 4815 |
| Euro | 180 | 231 | 62 |
| Other | 219 | 125 | 34 |
|  | 23869 | 41170 | 11287 |
| Short-term bank deposits | 117852 | 62853 | 17234 |
| Restricted deposits (see note 8(b)) | 140 | 140 | 40 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 6 – TRADE AND OTHER RECEIVABLES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

Trade receivables balance represents the unconditional right to consideration because only the passage of time is required before the payment is due. If collection is expected within one year or less, trade receivables are classified as current assets. Trade receivables are initially recognized based on their transaction price and subsequently measured at amortized cost using the effective interest method (IFRS-9), less an allowance for expected credit losses.

The balance of trade receivables is recognized when the right to receive payment is unconditional, meaning that collection is dependent only on the passage of time until payment is due. When the collection of these amounts is expected to occur within less than one year, they are classified as current assets.

Trade receivables are initially recognized at their transaction price, as defined in IFRS 15 – Revenue from contracts with customers, if they do not contain a significant financing component as per IFRS 15. Subsequently, they are measured at amortized cost, using the effective interest rate method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Additional information** 

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Government institutions | 541 | 263 | 72 |
| Advances to suppliers | 236 | 247 | 68 |
| Tax advances |  | 45 | 12 |
| Prepaid expenses | 206 | 293 | 80 |
| Other receivables (see note 12a(1)) | 389 | 389 | 107 |
|  | 1372 | 1237 | 339 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 7 – INVENTORY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

Inventory is measured at the lower of cost or net realizable value. The cost of inventory is determined using the "First in First Out" (FIFO) method, and includes design costs, raw materials, direct labor, other direct costs and manufacturing overhead costs. Net realizable value is the estimated selling price of the inventory in the ordinary course of business, less the estimated costs necessary to make the sale.

Inventory is written down for estimated obsolescence based upon management assumptions about future demand, expiration due date and market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Additional information** 

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Raw materials | 17118 | 17980 | 4930 |
| Work-in-progress | 702 | 120 | 33 |
| Finished goods | 5870 | 4992 | 1369 |
|  | 23690 | 23092 | 6332 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 8 – LEASES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

The Company's leases include property and vehicle leases.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. Simultaneously, the Company recognizes a right-of-use asset in the amount of the lease liability plus any initial direct costs incurred by the Company.

Variable lease payments that are linked to the Consumer Price Index (CPI) are initially measured using the index at the lease commencement date and are included in the calculation of the lease liability. When there is a change in lease cash flows due to a change in the index, the Company remeasures the lease liability based on the updated contractual cash flows, with a corresponding adjustment to the right-of-use asset.

Since the interest rate implicit in the lease cannot be readily determined, the Company uses the Company's incremental borrowing rate.

The lease term is the non-cancellable period for which the Company has the right to use an underlying asset, together with both the periods covered by an option to extend the lease, if the Company is reasonably certain to exercise that option, and periods covered by an option to terminate the lease, if the Company is reasonably certain not to exercise that option.

After the commencement date, the Company measures the right-of-use asset applying the cost model, less any accumulated depreciation and any accumulated impairment losses and adjusted for any remeasurement of the lease liability.

Assets are depreciated by the straight-line method over lease period as follows:

<u>Years</u> <br> Property 3-6 <br> Vehicles 3

Interest on the lease liability is recognized in comprehensive loss in each period during the lease term in an amount that produces a constant periodic rate of interest on the remaining balance of the lease liability (see note 2e(2)(a)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Right-of-use assets** 

The lease agreements for the vehicles are for 3 years, whereas the lease agreements for the property are for 3-6 years and may include an option to extend the lease period. According to the property agreements, the Company is reasonably certain to exercise such an option for 3 more years, and therefore this period was taken into consideration in the calculation of the lease liability.

In March 2022, the Company relocated its operations in central Israel to a new office building in Ramat Gan, pursuant to a lease agreement signed on November 7, 2021. The leased office space covers 390 square meters, with monthly rental payments estimated at approximately NIS 52 thousand. The lease term is three years from the actual commencement date, with an option for a three-year extension. On November 26, 2024, the Company signed an addendum to the lease agreement for the offices in Ramat Gan, extending the lease for an additional 24 months, starting from January 1, 2025. Under this addendum, the monthly rental payments are estimated at approximately NIS 48 thousand (approximately $13 thousand). The Company set a bank guarantee to the lessor in total amount of NIS 140 thousand (approximately $40 thousand).

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 8 – LEASES (cont.)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Property** | **Vehicles** | **Total** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** |
| **Cost:** |  |  |  |
| **Balance as of January 1, 2024** | 4792 | 550 | 5342 |
| Additions |  | 106 | 106 |
| Other changes | (361) | - | (361) |
| **Balance as of December 31, 2024** | 4431 | 656 | 5087 |
| **Accumulated amortization:** |  |  |  |
| **Balance as of January 1, 2024** | 1902 | 394 | 2296 |
| Additions | 893 | 118 | 1011 |
| **Balance as of December 31, 2024** | 2795 | 512 | 3307 |
|  | 1636 | 144 | 1780 |
| **Cost:** |  |  |  |
| **Balance as of January 1, 2023** | 4760 | 463 | 5223 |
| Additions | 32 | 87 | 119 |
| **Balance as of December 31, 2023** | 4792 | 550 | 5342 |
| **Accumulated amortization:** |  |  |  |
| **Balance as of January 1, 2023** | 1017 | 268 | 1285 |
| Additions | 885 | 126 | 1011 |
| **Balance as of December 31, 2023** | 1902 | 394 | 2296 |
|  | 2890 | 156 | 3046 |
| **Cost:** |  |  |  |
| **Balance as of January 1, 2022** | 618 | 463 | 1081 |
| Additions | 4142 | - | 4142 |
| **Balance as of December 31, 2022** | 4760 | 463 | 5223 |
| **Accumulated amortization:** |  |  |  |
| **Balance as of January 1, 2022** | 276 | 122 | 398 |
| Additions | 741 | 146 | 887 |
| **Balance as of December 31, 2022** | 1017 | 268 | 1285 |
|  | 3743 | 195 | 3938 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 8 – LEASES (cont.)**

<u>Convenience translation into U.S. dollars (see note 2c(3))</u>

---

| | | | |
|:---|:---|:---|:---|
|  | **Property** | **Vehicles** | **Total** |
|  | **in thousands** | **in thousands** | **in thousands** |
| **Cost:** |  |  |  |
| **Balance as of January 1, 2024** | 1314 | 151 | 1465 |
| Additions |  | 29 | 29 |
| Other changes | (99) | - | (99) |
| **Balance as of December 31, 2024** | 1215 | 180 | 1395 |
| **Accumulated amortization:** |  |  |  |
| **Balance as of January 1, 2024** | 522 | 108 | 630 |
| Additions | 245 | 32 | 277 |
| **Balance as of December 31, 2024** | 767 | 140 | 907 |
|  | 448 | 40 | 488 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 8 – LEASES (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Lease liabilities** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Property** | **Vehicles** | **Total** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** |
| **Balance as of January 1, 2024** | 3164 | 166 | 3330 |
| Additions |  | 106 | 106 |
| Other changes | (350) |  | (350) |
| Interest expense | 432 | 60 | 492 |
| Payments | (1277) | (182) | (1459) |
| **Balance as of December 31, 2024** | 1969 | 150 | 2119 |
| Short-term lease liabilities | 923 | 76 | 999 |
| Long-term lease liabilities | 1046 | 74 | 1120 |
| **Balance as of December 31, 2024** | 1969 | 150 | 2119 |
| **Balance as of January 1, 2023** | 3747 | 219 | 3966 |
| Additions | 32 | 87 | 119 |
| Interest expense | 517 | 69 | 586 |
| Payments | (1132) | (209) | (1341) |
| **Balance as of December 31, 2023** | 3164 | 166 | 3330 |
| Short-term lease liabilities | 823 | 100 | 923 |
| Long-term lease liabilities | 2341 | 66 | 2407 |
| **Balance as of December 31, 2023** | 3164 | 166 | 3330 |
| **Balance as of January 1, 2022** | 433 | 353 | 786 |
| Additions | 4142 |  | 4142 |
| Interest expense | 157 | 166 | 323 |
| Payments | (985) | (300) | (1285) |
| **Balance as of December 31, 2022** | 3747 | 219 | 3966 |
| Short-term lease liabilities | 736 | 127 | 863 |
| Long-term lease liabilities | 3011 | 92 | 3103 |
| **Balance as of December 31, 2022** | 3747 | 219 | 3966 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 8 – LEASES (cont.)**

<u>Convenience translation into U.S. dollars (see note 2c(3))</u>

---

| | | | |
|:---|:---|:---|:---|
|  | **Property** | **Vehicles** | **Total** |
|  | **$ in thousands** | **$ in thousands** | **$ in thousands** |
| **Balance as of January 1, 2024** | 868 | 46 | 914 |
| Additions |  | 29 | 29 |
| Other changes | (96) |  | (96) |
| Interest expense | 118 | 16 | 134 |
| Payments | (350) | (50) | (400) |
| **Balance as of December 31, 2024** | 540 | 41 | 581 |
| Short-term lease liabilities | 253 | 21 | 274 |
| Long-term lease liabilities | 287 | 20 | 307 |
| **Balance as of December 31, 2024** | 540 | 41 | 581 |

---

**NOTE 9 – PROPERTY AND EQUIPMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

Property and equipment are stated at historical cost less depreciation. Historical cost includes expenditures that are directly attributable to acquisition of the items. Assets are depreciated by the straight-line method over the estimated useful lives of the assets. When assets are retired or otherwise disposed of, the cost of those assets and the related accumulated depreciation is eliminated from the balance sheet, and any resulting gains or losses are included in the statements of operations and comprehensive loss in the period of disposal. The Company's management believes the residual values of the assets to be negligible, as follows:

---

| | |
|:---|:---|
|  | Years |
| Office furniture and equipment | 6-7 |
| Computers and software | 3 |
| Laboratory equipment and machines | 5-7 |

---

Property and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized and equal to the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and the asset's value in use to the Company.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 9 – PROPERTY AND EQUIPMENT (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Property and Equipment Composition** 

Set forth below are the composition of property and equipment and the related accumulated depreciation, grouped by major classifications:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Computers and software** | **Laboratory equipment and machines** | **Office furniture and equipment** | **Total** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** |
| **Cost:** |  |  |  |  |
| Balance as of January 1, 2024 | 1145 | 9451 | 558 | 11154 |
| Additions | 404 | 97 | 8 | 509 |
| **Balance as of December 31, 2024** | 1549 | 9548 | 566 | 11663 |
| **Accumulated depreciation:** |  |  |  |  |
| Balance as of January 1, 2024 | 698 | 1287 | 192 | 2177 |
| Additions | 305 | 1460 | 76 | 1841 |
| **Balance as of December 31, 2024** | 1003 | 2747 | 268 | 4018 |
|  | 546 | 6801 | 298 | 7645 |
| **Cost:** |  |  |  |  |
| Balance as of January 1, 2023 | 978 | 4444 | 540 | 5962 |
| Additions | 167 | 5007 | 18 | 5192 |
| **Balance as of December 31, 2023** | 1145 | 9451 | 558 | 11154 |
| **Accumulated depreciation:** |  |  |  |  |
| Balance as of January 1, 2023 | 407 | 260 | 118 | 785 |
| Additions | 291 | 1027 | 74 | 1392 |
| **Balance as of December 31, 2023** | 698 | 1287 | 192 | 2177 |
|  | 447 | 8164 | 366 | 8977 |
| **Cost:** |  |  |  |  |
| Balance as of January 1, 2022 | 512 | 767 | 217 | 1496 |
| Additions | 466 | 3677 | 323 | 4466 |
| **Balance as of December 31, 2022** | 978 | 4444 | 540 | 5962 |
| **Accumulated depreciation:** |  |  |  |  |
| Balance as of January 1, 2022 | 213 | 100 | 63 | 376 |
| Additions | 194 | 160 | 55 | 409 |
| **Balance as of December 31, 2022** | 407 | 260 | 118 | 785 |
|  | 571 | 4184 | 422 | 5177 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 9 – PROPERTY AND EQUIPMENT (cont.)**

<u>Convenience translation into U.S. dollars (see note 2c(3))</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Computers and software** | **Laboratory equipment and machines** | **Office furniture and equipment** | **Total** |
|  | **in thousands** | **in thousands** | **in thousands** | **in thousands** |
| **Cost:** |  |  |  |  |
| Balance as of January 1, 2024 | 314 | 2591 | 153 | 3058 |
| Additions | 111 | 27 | 2 | 140 |
| **Balance as of December 31, 2024** | 425 | 2618 | 155 | 3198 |
| **Accumulated depreciation:** |  |  |  |  |
| Balance as of January 1, 2024 | 191 | 353 | 53 | 597 |
| Additions | 84 | 400 | 21 | 505 |
| **Balance as of December 31, 2024** | 275 | 753 | 74 | 1102 |
|  | 150 | 1865 | 81 | 2096 |

---

**NOTE 10 – TRADE PAYABLES AND OTHER PAYABLE AND ACCRUALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

Trade payables, other payable and accruals constitute financial liabilities that are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method (see note 4(b)(2)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Other payable and accruals composition** 

Set forth below are the composition of other payable and accruals:

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Salaries and payroll-related institutions | 1787 | 1745 | 478 |
| Provision for bonus |  | 1077 | 296 |
| Provision for vacation and recreation pay | 794 | 954 | 262 |
| Accrued expenses and other liabilities | 79 | 4 | 1 |
|  | 2660 | 3780 | 1037 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 11 – EMPLOYEE BENEFITS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

1) <u>Liability for severance pay</u>

The Company operates a post-employment benefits plan for its employees, which includes a defined contribution plan.

2) <u>Vacation and recreation pay</u>

By law, employees are entitled to vacation and recreation pay, calculated on an annual basis. The right is based on the employment period. The Company charges liability and expense due to vacation and recreation pay, based on the benefits that have been accumulated for each employee.

3) <u>Bonuses plan</u>

The Company recognizes a liability and an expense for bonuses based on its bonus plan, subject to certain adjustments. The liability is recognized when there is a legal obligation to make such payments, and the amount of the obligation can be reliably estimated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Additional information** 

1) <u>Liability for employee rights upon retirement</u>

Labor laws and agreements require the Company to pay severance pay and/or pensions to employees dismissed or retiring from their employ in other certain circumstances. The amounts of benefits those employees are entitled to upon retirement are based on the number of years of service and the last monthly salary.

Also, under labor laws and labor agreements in effect, including the Expansion Order (Combined Version) for Obligatory Pension under the Collective Agreements Law of 1957 (the "Expansion Order"), the Company is liable to make deposits with provident funds, pension funds or other such funds, to cover its employees' pension insurance as well as some of its severance pay liabilities.

Under the terms of the Expansion Order, the Company deposits for severance pay as required under the Expansion Order as well as other deposits made by those companies "in lieu of severance pay" and which were announced as such as required under the Expansion Order, replace all payment of severance pay under Section 14 of the Israeli Severance Pay Law, 1963 (the "Severance Pay Law") with respect to the wages, components, periods and rates for which the deposit alone was made.

2) <u>Defined contribution plans</u>

The Company's severance pay liability to Israeli employees for which the said liability is covered under section 14 of the Severance Pay Law is covered by regular deposits with defined contribution plans. The amounts funded above are not reflected in the consolidated statements of financial position. The amounts recognized as expense in respect of defined contribution plans in 2024, 2023 and 2022 are NIS 1,334 thousand (approximately $366 thousand), NIS 1,325 thousand and NIS 1,049 thousand, respectively.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 12 – COMMITMENTS AND CONTINGENT LIABILITIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Material agreements** 

**1) <u>Product supply agreement</u>**

On August 2, 2020, the Company entered into an agreement with Clalit Health Services (hereinafter referred to as "the Customer") for the supply of products (hereinafter referred to as "the First Agreement"). According to this agreement, subject to obtaining all regulatory approvals, the Company granted the Customer the right to purchase, sell, and market the Company's products in Israel, all in accordance with the terms of the agreement. The Customer committed to purchasing and distributing the Company's products according to agreed milestones and a mutually agreed price list.

As part of the First Agreement, provisions were established regarding the parties' responsibilities and limitations of liability. It was stipulated that neither party would be liable to the other for indirect, special, punitive, or consequential damages, except in cases of breaches related to confidentiality, privacy obligations, and bodily harm, unless such damages were caused by an act or omission constituting a breach of the agreement. Additionally, it was determined that the Company would not bear liability arising from medical diagnoses or prognoses given or withheld through the pregnancy product, provided it conforms to its technical specifications. Furthermore, the First Agreement included a requirement for the Company to obtain various insurance policies, including third-party liability insurance and professional liability insurance combined with product liability coverage. The Company has acquired the required insurance policies accordingly. The initial term of the First Agreement was set at 24 months, with either party entitled to terminate the agreement without cause, subject to providing nine months' prior written notice. In June 2022, the parties extended the First Agreement until August 2023, and it was subsequently further extended until August 2024.

On December 14, 2021, the Company signed an addendum to the agreement, under which it agreed to supply the Customer with additional Pulsenmore FC devices. These devices are designed for self-monitoring of follicle size for women undergoing in vitro fertilization (IVF) and fertility preservation treatments. As of the date of these financial statements, the Company has supplied the Customer with 400 devices under this agreement, of which 100 devices were used for the feasibility study. After the date of these financial statements, the results of the clinical trial were presented by Clalit at a professional conference in Japan, and accordingly, the Company approached Clalit to promote the aforementioned cooperation.

On October 28, 2024, an agreement was signed between Clalit and the Company for the supply of 25,000 units of the Company's home ultrasound product - Pulsenmore- ES for a period of 5 years, including support services for the product (hereinafter: the "New Agreement"). The New Agreement is a continuation of the first agreement as stated above. In 2024, the Company has not recognized revenues based on the New Agreement.

The New Agreement also provides Clalit, for an additional fee, with the option to use the product in a synchronous manner (Clinician Guided), allowing real-time ultrasound video transmission during a video consultation with a clinician or physician.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 12 – COMMITMENTS AND CONTINGENT LIABILITIES (cont.)**

The New Agreement includes a warranty period for the products and provisions for the return or replacement of defective or non-compliant products. Furthermore, the New Agreement stipulates that the Follicle Agreement (described above) will remain in effect under its existing terms for five years from the fulfillment of the conditions precedent specified therein. As is customary, the New Agreement can be terminated by either party with an advance notice.

**2) <u>Transaction with a strategic partner</u>**

On May 11, 2022, the Company entered into an investment agreement with GE Healthcare Global Holdings, Inc. (the "Investor"). On June 8, 2022, following the fulfillment of customary conditions stipulated in the investment agreement, the Company allocated to the Investor 449,178 ordinary shares with a nominal value of NIS 0.00032 each in exchange for an investment of NIS 70,096 thousand approximately $21 million (hereinafter referred to as the "First Investment"). Subject to the completion of the First Investment, the Company entered into a strategic distribution cooperation agreement (the "Distribution Agreement") and a component purchase agreement (the "Component Agreement") on the same date with GE Precision Healthcare LLC (the "Distributor").

According to the investment agreement, and subject to obtaining FDA approval for marketing and selling the Company's Pulsenmore ES product in the U.S. (the "FDA Approval") by the end of September 2023 and meeting other customary conditions set in the agreement, the Company would have allocated an additional 449,178 ordinary shares with a nominal value of NIS 0.00032 each to the Investor in exchange for another $21 million investment (the "Second Investment"). The conditions for the Second Investment were not met by September 30, 2023, and therefore, the investment did not take place.

Additionally, Investor's Rights in Case of an IPO - If the Company were to conduct an initial public offering (IPO) of its shares on a U.S. stock exchange by the end of 2023, the Investor would have had the right to purchase Company shares—either within the IPO or through a parallel private placement—up to its proportional holding in the issued share capital of the Company prior to the IPO (not exceeding 20% of the shares offered to the public). In the case of an IPO occurring by the end of 2023 and subject to FDA approval and additional customary conditions, the Company would have had the right to require the Investor to invest up to $8 million in the IPO (not exceeding its proportional share of the capital raised), offset by any amount the Investor had voluntarily committed to invest in the IPO. However, by the end of 2023, the Company did not meet these conditions, and no shares were issued to the Investor.

On June 8, 2022, the Company signed the Distribution Agreement, granting the Distributor certain exclusive distribution rights for the Pulsenmore ES product as detailed herein.

The Distribution Agreement grants the Distributor with exclusive distribution rights for 20 selected institutional customers in Europe, the U.S., and Japan ("Exclusive Distribution Rights"). The Company has to make commercially reasonable efforts to obtain the necessary regulatory approvals for distribution and sale in these regions. The Exclusive Distribution Rights are for a period of 7 years in the U.S. and Japan and for a period of 3 years in Europe. (the "Exclusivity Period"). The exclusivity renews automatically for one-year periods, unless either party provides notice to the contrary.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 12 – COMMITMENTS AND CONTINGENT LIABILITIES (cont.)**

During the Exclusivity period, the Distributor is subject to non-compete restrictions, preventing it from distributing competing products, except under specific exceptions defined in the Distribution Agreement.

The Distribution Agreement is for a 7-year term, with automatic one- year extensions unless one of the parties gives notice to terminate. Nevertheless, if the Distributor meets certain sales targets and maintains at least the number of shares acquired in the First Investment, the Company cannot refuse further extensions of the Distribution Agreement. The Distributor may terminate the agreement if there is a change of control in the Company under certain conditions as set in the Distribution Agreement. Upon signing the Distribution Agreement, the parties also signed a supplementary agreement for the purchase of long-lead-time components necessary for product manufacturing.

The Distributor committed to placing an initial order of 20,000 Pulsenmore ES units, of which 5,000 units were supplied in 2022, and the remaining 15,000 units (including 10,000 iOS-compatible devices) were scheduled for delivery in 2023.

Additionally, the Distributor had the option to place an order for 50,000 more units in the second year of the agreement.

In order for the Company to meet its obligations to the distributor as stated above, the Company ordered assemblies from a supplier in South Korea who was equipped with LLI (Long Lead Items) components. The cost of these LLI components as of December 31, 2024 is approximately NIS 2,900 thousand (approximately $800 thousand). During 2024, the Company notified the supplier, and the supplier received the Company's notification, that in light of the security situation prevailing in the country due to the Iron Sword War, which is considered as "force majeure", it is postponing the dates for receiving the said components and no delivery dates have yet been set.

On November 29, 2023, the Distributor canceled its purchase order for 15,000 units, citing non-compatibility with iOS. The Company disputed this claim, asserting that the cancellation was due to the Distributor's poor performance. The Company continues to evaluate its legal options, maintaining that the Distributor is required to fulfill all its contractual obligations under the agreement. After the cancellation notice, the Distributor requested a new order of 240 iOS compatible units, which the Company supplied. However, the Company explicitly stated that fulfilling this order does not waive its rights under the existing agreements. Discussions regarding distribution matters are ongoing, and the Company reserves all rights under the agreements and applicable law.

Since the First Investment, the Distribution Agreement, and related agreements were negotiated as an integrated commercially significant transaction, the Company allocated the total investment proceeds (NIS 70,096 thousand) as follows (excluding transaction costs):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Ordinary shares issued under the Investment Agreement: NIS 51,709 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Derivative asset (contingent forward contract for the Second Investment): NIS 5,070 thousand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Customer contract liability under the Distribution Agreement: NIS 23,457 thousand.

(\*) The transaction costs amounted to NIS 782 thousand, allocated between equity (NIS 538 thousand) and Consolidated Statements of Comprehensive Loss (NIS 244 thousand).

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 12 – COMMITMENTS AND CONTINGENT LIABILITIES (cont.)**

Regarding the second investment, as it involves a contingent forward contract settled in a different currency from the Company's functional currency, it is classified as a derivative financial instrument under IAS 32 – Financial Instruments: Presentation and IFRS 9 – Financial Instruments. This instrument is not classified as an equity instrument and is measured at fair value at each reporting date, with changes at fair value recognized through comprehensive loss.

Additionally, regarding the Company's Pulsenmore FC product, the Distributor will be granted distribution rights similar to those granted for the Pulsenmore ES product, subject to additional terms to be agreed upon by the parties. These rights will be contingent on the Distributor placing a minimum order of 10,000 Pulsenmore FC units within 18 months from obtaining the necessary regulatory approvals for distribution in the U.S. or Europe (whichever occurs first).

On June 8, 2022, the Company recognized the derivative financial instrument at fair value through comprehensive loss. As of December 31, 2023, the Company did not meet the condition precedent required for the investor's second investment. Consequently, the Company derecognized the derivative financial instrument. Losses from changes in the fair value of the derivative instrument in 2023 amounted to approximately NIS 15,595 thousand, which were recognized under financial expenses.

Since the Second Investment did not take place, the contingent forward contract was derecognized. Changes in its fair value resulted in financial expenses in total amount of NIS 15,595 thousand and financial income in total amount of 10,525 thousand for the years ended on December 31, 2023 and 2022, respectively.

The portion of proceeds allocated to the Distribution Agreement is treated as non-refundable upfront fees and recognized as deferred revenue, which will be recognized over the 7 year contract period, in line with actual product sales, relatively to the Company's estimates of the total number of the products that are expected to be sold to the investor during the period of the agreement

On November 21, 2024, the Company notified the Investor that it would not extend the period in which GE held the exclusive distribution rights for the Pulsenmore ES product. In accordance with the mechanism established in the Distribution Agreement, the non-renewal will take effect 3 years after the date of granting the rights as aforesaid, on June 7, 2025.

**3) <u>Medical product distribution company in Italy</u>**

On May 10, 2024, the Company entered into a binding agreement with a medical product distribution Company in Italy (hereinafter referred to as "the Distributor") for the import and distribution of the Company's Pulsenmore ES product. The agreement is for a four-year term upon signing, and it is cancelable by providing an advanced notice. As part of the agreement, the Distributor committed to placing an initial product order with a financial value of approximately Euro 400 thousand which constitutes part of the minimum quantities required for the first year.

As of December 31, 2024, the total quantity of the product was not supplied yet to the Distributor. The annual minimum quantities will gradually increase each year throughout the agreement period.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 12 – COMMITMENTS AND LIABILITIES (cont.)**

**4) Liability of royalties to IIA and Korea-Israel Industrial R&D Foundation**

1) <u>Information of accounting policy</u>

Grants received from the Israel Innovation Authority (hereinafter "the IIA") and the Korea-Israel Industrial R&D Foundation (hereinafter "KORIL"), which are associated with the Ministry of Industry and Economy (formerly the Office of the Chief Scientist) and the South Korean Ministry of Industry and Trade, as participation in research and development conducted by the Company (hereinafter "IIA Grants" and "KORIL Grants"), fall under the definition of "forgivable loans" as stated in International Accounting Standard 20 – "Accounting for Government Grants and Disclosure of Government Assistance" (hereinafter – IAS 20).

Liabilities for IIA Grants and KORIL Grants are recognized and measured in accordance with IFRS 9 if, at the time of eligibility for receiving the Grant (hereinafter – the Eligibility Date), the Company's management concludes that there is no reasonable assurance that the received Grant (hereinafter – the "Received Grant") will not be repaid. In such a case, the Company recognizes, at that date, a financial liability that is accounted for according to the detailed provisions of IFRS 9 regarding financial liabilities measured at amortized cost. The difference between the Received Grant and the fair value of the financial liability at initial recognition is treated as a government grant and is recorded in comprehensive loss as a reduction of research and development expenses.

If, at the Eligibility Date, the Company's management concludes that there is reasonable assurance that the Received Grant will not be repaid, the grant is recorded, at that time, in comprehensive loss as a reduction of research and development expenses. If, in a subsequent period, the Company's management for the first time concludes that there is no reasonable assurance that the Received Grant will not be repaid, the Company recognizes, at that time, a financial liability against comprehensive loss.

The Company has recognized in its financial statements a liability to pay royalties to the IIA, calculated based on the revenue from the sale of products whose development was supported by the IIA through grants. Under the participation terms, royalties of 3% of the sales revenue of the products developed with the support of the IIA will be paid to the government, up to 100% of the total grants received by the Company, linked to the U.S. dollar (plus annual interest at the SOFR rate). As of December 31, 2024, the maximum amount of royalties the Company may be required to pay is NIS 11,445 thousand (approximately $3,138 thousand). In 2024, the Company did not receive any new IIA Grants, whereas in 2023 and in 2022, the total amount of IIA Grants received amounted to approximately NIS 907 thousand and approximately NIS 1,930 thousand, respectively.

The Company concluded that, for all grants received from the IIA, there is no reasonable assurance that the received grants will not be repaid. Therefore, it has recognized a present-value liability for royalty payments amounting to approximately NIS 7,029 thousand (approximately $1,927 thousand) and NIS 7,227 thousand as of December 31, 2024, and 2023, respectively.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 12 – COMMITMENTS AND LIABILITIES (cont.)**

During 2021, KORIL approved a research and development grant for the Company as part of a collaboration with a Korean Company to develop an automated process for manufacturing ultrasound transducers. According to the program's procedures, the Company will pay royalties to KORIL at a rate of 2.5% of its revenue directly linked to transducers produced using the automated process. As of the date of these financial statements, there is no reasonable assurance that the received KORIL Grants will be repaid. As of December 31, 2024, the maximum amount of royalties the Company may be required to pay is NIS 1,690 thousand. In 2024, the Company received KORIL Grants in a total amount of NIS 1,029 thousand (approximately $282 thousand), whereas in 2023 and in 2022 no KORIL Grants were received.

2) <u>Changes in liability of royalties to the IIA</u>

---

| | |
|:---|:---|
|  | **NIS in thousands** |
| Balance as of January 1, 2024 | 7227 |
| Payments to the IIA | (108) |
| Proceeds from the IIA |  |
| Financial income | (90) |
| **Balance as of December 31, 2024** | 7029 |
| Balance as of January 1, 2023 | 7106 |
| Payments to the IIA | (297) |
| Proceeds from the IIA | 492 |
| Financial income | (74) |
| **Balance as of December 31, 2023** | 7227 |
| Balance as of January 1, 2022 | 6513 |
| Payments to the IIA | (151) |
| Proceeds from the IIA | 944 |
| Financial income | (200) |
| **Balance as of December 31, 2022** | 7106 |

---

<u>Convenience translation into U.S. dollars (see note 2c(3))</u>

---

| | |
|:---|:---|
|  | **in thousands** |
| Balance as of January 1, 2024 | 1982 |
| Payments to the IIA | (30) |
| Proceeds from the IIA |  |
| Financial income | (25) |
| **Balance as of December 31, 2024** | 1927 |

---

3) <u>Legal claims</u>

As of the date of approval of the financial statements, there are no legal claims against the Company.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 13 – EQUITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

1) <u>Share capital</u>

The Company's ordinary shares are classified as share capital. Additional costs directly attributable to the issuance of shares are recognized in equity as a deduction, net of tax, from the proceeds of the issuance.

2) <u>Share-based compensation plans</u>

The Company operates a share-based compensation plan for employees, consultants, and directors, which is settled through the Company's equity instruments. Under this plan, the Company receives services from the grantees in exchange for the Company's equity instruments (options). The fair value of the services received in consideration for the grant of options is recognized as an expense in the statement of comprehensive loss, with a corresponding entry to an equity capital reserve for share-based compensation. The total expense recognized in the statement of comprehensive income is determined based on the fair value of the granted options. Upon exercise of the options, the Company issues new shares. The proceeds received, net of directly attributable transaction costs, are credited to share capital (at par value) and the remainder to share premium upon option exercise. Expenses related to share-based compensation recognized in the statement of comprehensive income also include amounts recorded as a liability for director compensation following the equity split (see also Note 13c (2)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Share capital** 

The Company's share capital is composed of ordinary shares, par value NIS 0.00032 per share, as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Ordinary Shares** | **Number of Ordinary Shares** | **Number of Ordinary Shares** | **Number of Ordinary Shares** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2023** | **2024** | **2024** |
| Authorized share capital | | 31,250,000 | | 31,250,000 |
| Issued and paid-up share capital | | 6,251,625 | | 6,271,625 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Amount in NIS** | **Amount in NIS** | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
| Authorized share capital | 10000 | 10000 | 2742 |
| Issued and paid-up share capital | 2001 | 2007 | 550 |

---

On May 11, 2022, the Company entered into an investment agreement with GE Healthcare Global Holdings, Inc. (the "Investor"), under which the Company issued 449,178 ordinary shares with a par value of NIS 0.00032 each for a total consideration (net of issuance costs) of NIS 51,171 thousand (approximately $14 million) (see note 12a(2)).

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 13 – EQUITY (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Share-based compensation** 

1) On September 26, 2019, the Company's Board of Directors approved an option plan aimed at promoting the Company's interests and objectives by providing incentives and rewards to employees, officers, and service providers. The plan is subject to the provisions of Section 102 of the Israeli Income Tax Ordinance (New Version), 1961 (the 'Ordinance'), and follows the capital gains tax route through a trustee, in accordance with Section 102(b)(2) of the ordinance. Notwithstanding the above, options may also be granted under the plan through an alternative tax route, as permitted by applicable law. Under the selected route and its regulations, the Company is not entitled to claim as a tax-deductible expense any amounts recorded as an employee benefit, including amounts recognized as compensation expenses in the Company's accounts, in respect of options granted to employees under the plan.

Unless otherwise stated in the grant letter, the options vest over four years from the grant commencement date, with 25% vesting after one year and the remaining 75% vesting in equal quarterly installments of 6.25% each. Unless otherwise specified in the grant letter, the options expire seven years from the grant date.

2) On January 5, 2021, the shareholders' general meeting approved the grant of 187 options (equivalent to 46,875 options after the share split) under the Company's 2019 share option plan which are exercisable into 46,875 ordinary shares to each of the directors served then (excluding the Chairman of the Board, Mr. Jonathan Adareth, and Mr. Elazar Sonnenschein): Yuval Yanai, Racheli Guz-Lavi and Susan Delabrida.

Half of the options (93) (after the share split, 23,437) would vest over a period of four years, commencing on the date the director entered into the agreement for the provision of director services with the Company. 25% of these options will vest one year from the date of such agreement, and an additional 6.25% would vest at the end of each subsequent quarter. The second half of the options is subject to a five-year vesting period, whereby 25% of the options would vest in two years after the date of such agreement, and a further 6.25% would vest at the end of each subsequent quarter, all subject to the condition that the director remains in office at each vesting date. These options may be exercised for a period of up to seven years from the grant date, at an exercise price that was originally set at $1 per underlying share. However, following the share split, the exercise price was reduced to $0.032, falling below the minimum threshold required under section two in the guidance of the Israel Securities Authority. As a result, the exercise price was increased to 1 NIS. Upon the exercise of these options, to the extent exercised, the Company will pay each of the eligible directors in cash the difference between the original exercise price (after the share split) and the new exercise price, multiplied by the number of exercised shares in a way that the effective additional exercise amount per share remains unchanged. The change in terms had no accounting impact. The mechanism provides for net settlement, meaning no cash outflow from the Company to the directors. In addition, the Company will compensate the directors for any excess tax liability incurred as a result of the updated arrangement compared to the tax liability that would have applied upon exercise of the options, if any. The Company accounted for this additional tax liability assumed by the Company as a cash-settled share-based payment.

3) On May 3, 2022, a total of 22,597 share options were granted to four employees of the Company and two executive officers. These options entitle the holders to purchase 22,597 ordinary shares of the Company, each with a nominal value of NIS 0.00032, at an exercise price of NIS 92 per share. The options will vest over a period of four years, in accordance with the Company's equity incentive plan.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 13 – EQUITY (cont.)**

The theoretical fair value of the granted options, calculated using the Black-Scholes model, is approximately NIS 820 thousand, based on the following assumptions: expected volatility in a rate of 61.7%, risk-free interest rate of 1.9% and expected life of 4.6 years in average.

4) On July 28, 2022, a total of 41,170 share options were granted to 16 employees of the group and 3 consultants. These options entitle the holders to purchase 41,170 ordinary shares of the Company, each with a nominal value of NIS 0.00032, at an exercise price of NIS 100.88 per share. The options will vest over a period of four years, in accordance with the Company's equity incentive plan.

The theoretical fair value of the granted options, calculated using the Black-Scholes model, is approximately NIS 820 thousand, based on the following assumptions: expected volatility in a rate of 61.7%, risk-free interest rate of 2.18% and expected life of 4.6 years in average.

5) On December 15, 2022, a total of 9,394 share options were granted to five employees of the Company who are not executive officers. These options entitle the holders to purchase 9,394 ordinary shares of the Company, each with a nominal value of NIS 0.00032, at an exercise price of NIS 79.6 per share. The options will vest over a period of four years, in accordance with the Company's equity incentive plan.

The theoretical fair value of the granted options, calculated using the Black-Scholes model, is approximately NIS 282 thousand, based on the following assumptions: expected volatility in a rate of 67.5%, risk-free interest rate of 3.38% and expected life of 4.6 years in average.

6) On June 1, 2023, a total of 12,765 share options were granted to four employees and one executive officer. These options entitle the holders to purchase 12,765 ordinary shares of the Company, each with a nominal value of NIS 0.00032, at an exercise price of NIS 58.16 per share. The options will vest over a period of four years, in accordance with the Company's equity incentive plan.

The theoretical fair value of the granted options, calculated using the Black-Scholes model, is approximately NIS 377 thousand, based on the following assumptions: expected volatility in a rate of 63.75%, risk-free interest rate of 3.83% and expected life of 4.6 years in average.

7) On October 19, 2023, a total of 21,074 share options were granted to five Company employees. These options entitle the holders to purchase 21,074 ordinary shares of the Company, each with a nominal value of NIS 0.00032, at an exercise price of NIS 58.32 per share. The options will vest over a period of four years, in accordance with the Company's equity incentive plan.

The theoretical fair value of the granted options, calculated using the Black-Scholes model, is approximately NIS 571 thousand, based on the following assumptions: expected volatility in a rate of 54.19%, risk-free interest rate of 4.13% and expected life of 4.6 years in average.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 13 – EQUITY** (cont.)

8) On March 27, 2024, a total of 7,859 share options were granted to four Company employees. These options entitle the holders to purchase 7,859 ordinary shares of the Company, each with a nominal value of NIS 0.00032, at an exercise price of NIS 39.68 per share. The options will vest over a period of four years, in accordance with the Company's equity incentive plan.

The theoretical fair value of the granted options, calculated using the Black-Scholes model, is approximately NIS 139 thousand, based on the following assumptions: expected volatility in a rate of 58.52%, risk-free interest rate of 4.09% and expected life of 4.6 years in average.

9) On August 15, 2024, a total of 14,625 share options were granted to two Company employees. These options entitle the holders to purchase 14,625 ordinary shares of the Company, each with a nominal value of NIS 0.00032 at an exercise price of NIS 32.96 per share. The options will vest over a period of four years, in accordance with the Company's equity incentive plan.

The theoretical fair value of the granted options, calculated using the Black-Scholes model, is approximately NIS 229 thousand, based on the following assumptions: expected volatility in a rate of 59.34%, risk-free interest rate of 4.38% and expected life of 4.6 years in average.

The following table contains additional information concerning equity instruments granted to employees and directors under the existing share incentive plans

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2022** | **2023** | **2023** | **2024** | **2024** |
|  | **Number<br> of options** | **Weighted average exercise price**<br> **(in NIS)** | **Number<br> of options** | **Weighted average exercise price**<br> **(in NIS)** | **Number<br> of options** | **Weighted average exercise price**<br> **(in NIS)** |
| Outstanding at beginning of year | 610604 | 35.664 | 658153 | 45.904 | 660651 | 46.448 |
| Granted | 73162 | 95.320 | 33840 | 58.248 | 22484 | 35.312 |
| Expired | (18347) | 79.696 | (2285) | 0.120 | (9505) | 91.048 |
| Forfeited |  |  | (17142) | 90.128 | (32668) | 57.704 |
| Exercised | (7265) | 0.032 | (11914) | 0.120 | (20000) | 0.120 |
| Outstanding at end of year | 658153 | 45.904 | 660651 | 46.448 | 620961 | 34.768 |
| Exercisable at end of year | 474521 | 27.136 | 558751 | 35.032 | 503954 | 27.520 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 13 – EQUITY** (cont.)

---

| | | |
|:---|:---|:---|
|  | **Convenience translation into U.S. dollars** | **Convenience translation into U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2024** |
|  | **Number<br> of options** | **Weighted average exercise price**<br> **(in USD)** |
| Outstanding at beginning of year | 660651 | 12.736 |
| Granted | 22484 | 9.68 |
| Expired | (9505) | 24.968 |
| Forfeited | (32668) | 15.824 |
| Exercised | (20000) | 0.032 |
| Outstanding at end of year | 620962 | 9.536 |
| Exercisable at end of year | 503954 | 7.544 |

---

Set forth below is data regarding the range of exercise prices and weighted-average remaining contractual life (in years) for the equity instruments outstanding at the end of each of the years indicated.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **Convenience translation into U.S. dollars** | **Convenience translation into U.S. dollars** | **Convenience translation into U.S. dollars** |
| **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
| **Number of options** | **Exercise price in NIS** | **Weighted average remaining contractual life in years** | **Number of options** | **Exercise price in $** | **Weighted average remaining contractual life in years** |
| 620961 | 34.768 | 3.1 | 620961 | 9.52 | 3.1 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| **2023** | **2023** | **2023** | **2022** | **2022** | **2022** |
| **Number of options** | **Exercise price in NIS** | **Weighted average remaining contractual life in years** | **Number of options** | **Exercise price in NIS** | **Weighted average remaining contractual life in years** |
| 660651 | 46.448 | 4.6 | 658153 | 45.904 | 4.6 |

---

The expense amounts recognized in the Company's comprehensive loss statements for the years 2024, 2023 and 2022, related to option grants, are NIS 1,388 thousand (approximately $381 thousand), NIS 3,279 thousand and NIS 4,731 thousand, respectively.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 14 – TAXES ON INCOME**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

The tax expenses for the reported years include both current and deferred taxes.

The amount recognized as current taxes is calculated based on tax laws that have been enacted or substantially enacted as of the financial position reporting date. The Company's management periodically reviews the tax implications on its taxable income according to relevant tax laws and establishes provisions accordingly for amounts expected to be paid to tax authorities. Current taxes also include adjustments related to prior years' current tax liabilities.

The Company recognizes deferred taxes based on the liability method for temporary differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases. The amount of deferred taxes is determined according to the tax rates (and tax laws) that have been enacted or substantially enacted as of the financial position reporting date and are expected to apply when the deferred tax assets are realized or the deferred tax liabilities are settled.

Deferred tax assets are recognized for deductible temporary differences to the extent that it is probable that taxable income will be available in the future against which the deductible differences can be utilized. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to the same taxation authority and either the same taxable entity or different entities that intend to settle their tax balances on a net basis. In the absence of a foreseeable taxable income in the near future, no deferred tax asset has been recognized in the Company's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Corporate Tax Rate in Israel** 

The Company's income is subject to the standard corporate tax rate of 23%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Taxation of Foreign Subsidiaries** 

The subsidiaries incorporated in the United States and South Korea are subject to corporate income tax at rates of 21% and 11%, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D)** **Taxation of Foreign Subsidiaries** 

Tax assessments filed by the Company and through 2019 are considered final.

Tax assessments filed by the U.S. and Korean subsidiaries are not yet considered final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E)** **Tax Losses Carried Forward** 

The Company's tax loss carryforwards amount to approximately NIS 118,750 thousand (approximately $32,561 thousand) and NIS 88,445 thousand as of December 31, 2024, and 2023, respectively. The Company has not recognized deferred tax assets for these loss carryforwards, as their utilization is not expected in the foreseeable future.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS<br>** 

<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

1**)** <u>Revenue measurement</u>

The Company's revenue is measured based on the consideration it expects to be entitled to receive in exchange for the transfer of goods and services to customers.

Under the agreement with Clalit Health Services, regarding the first purchase order, if the supplied devices were not sold or opened, Clalit Health Services has the right, at its sole discretion and at any time, to return the devices to the Company, and the Company is obligated to refund the consideration paid for any returned products. The Company provides a warranty period of up to 18 months from the date of supply (not exceeding 9 months from the first activation of the device).

As for return rights for end customers for products sold or opened by Clalit Health Services - These products may be returned to the Company subject to consumer protection laws, 1981, and the consumer protection (cancellation of transaction) regulations, 2010, customers may not return the product after 14 days from the delivery date. Also, if a product has been opened but not supplied to the end customer, it cannot be returned to the Company.

The Company assesses the probability of product returns at each financial reporting date. The estimated probability of returns is recognized as a liability under "Contract Liabilities" in the financial statements. This liability is adjusted against recognized revenue based on the return probability assessment. As of December 31, 2024, and 2023, the contract liability balance related to customer contracts for the Pulsenmore FC product amounted to NIS 938 thousand.

2) <u>Revenue</u> <u>recognition</u>

During the reporting periods substantially all of the Company's revenues were derived from a single performance obligation - the sale of the Company's products - portable ultrasound devices. The Company recognizes revenue upon the transfer of control of the promised goods to the customer, at the point of shipment, in accordance with the terms of the contract.

In addition, as of October 28, 2024, as part of the updated agreement with Clalit (see note 12A) the Company also provides a support services for the Company's products which was identified as an additional performance obligation. Revenue from services are recognized over time. During the reporting periods revenues from services were immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Revenue by Geographic Segmentation** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **$ in thousands** |
| Israel | 5708 | 5945 | 9070 | 2487 |
| Europe | 5106 | 243 | 591 | 162 |
|  | 10814 | 6188 | 9661 | 2649 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS** (cont.)

In 2024, 2023 and 2022 the Company's main revenues from its operations in Israel, in the amount of NIS 8,630 thousand (approximately $2,366 thousand), NIS 5,898 thousand and NIS 4,794 thousand, respectively, were derived from Clalit Health Services (see note 12(a)).

As of December 31, 2024, 2023 and 2022, the majority of the Company's property and equipment and right of use assets are located in Israel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Cost of Revenue** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **$ in thousands** |
| Use of materials | 5017 | 3053 | 4926 | 1351 |
| Salaries and related expenses | 525 | 650 | 705 | 193 |
| Depreciation | 124 | 241 | 293 | 80 |
| Other | 24 | 43 | 160 | 44 |
|  | 5690 | 3987 | 6084 | 1668 |

---

**NOTE 16 – RESEARCH AND DEVELOPMENT EXPENSES, NET**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Information of accounting policy** 

Research expenses are recognized as an expense when incurred. Costs incurred for development projects (relating to the design and testing of new or improved products) are recognized as intangible assets when the following conditions are met:

● There is technical feasibility to complete the intangible asset so that it will be available for use.

● Management intends to complete and use or sell the intangible asset

● The intangible asset can be used or sold

● The manner in which the intangible asset will generate probable future economic benefits can be demonstrated

● Adequate resources: technical, financial, and other - are available to complete development and use or sell the intangible asset.

● The expenditure attributable to the intangible asset during its development can be reliably measured.

Other development expenses that do not meet these conditions are recognized as an expense when incurred. Development costs previously recognized as an expense are not recognized as an asset in subsequent periods. The Company periodically evaluates the fulfillment of the above criteria and has determined that it is unable to recognize intangible assets as of December 31, 2024, 2023 and 2022. This is primarily due to the fact that, for several of the Company's products under development - some in early stages and others in clinical trials - the Company's management has not consistently demonstrated the technical feasibility of completing development, given the high technological complexity involved.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 16 – RESEARCH AND DEVELOPMENT EXPENSES, NET** (cont.)<br>

Additional products that are already in ongoing sales processes are not in development stages related to product improvements, and all the related research and development expenses pertain to maintenance and sustaining existing products. As a result, development expenses up to the date of the financial position report did not meet the aforementioned conditions and were therefore expensed in the statement of comprehensive loss when incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Additional information** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Salaries and related expenses | 10958 | 12510 | 13045 | 3577 |
| Share-based compensation | 1719 | 879 | 117 | 32 |
| Depreciation | 755 | 1075 | 1221 | 335 |
| Raw materials and consumables | 1130 | 711 | 510 | 140 |
| Consultants and subcontractors | 14103 | 15324 | 5296 | 1452 |
| Patents | 1368 | 703 | 617 | 169 |
| Other | 578 | 612 | 353 | 97 |
|  | 30611 | 31814 | 21159 | 5802 |
| Net of grants from the IIA and KORIL | (988) | (415) | (1029) | (282) |
|  | 29623 | 31399 | 20130 | 5520 |

---

**NOTE 17 – SALES AND MARKETING EXPENSES**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Salaries and related expenses | 4876 | 4913 | 5261 | 1443 |
| Share-based compensation | 255 | 321 | 144 | 39 |
| Advertising | 3555 | 3550 | 4270 | 1171 |
| Depreciation | 143 | 210 | 286 | 78 |
| Office rent and maintenance |  | 211 |  |  |
| Other | 88 | 229 | 357 | 98 |
|  | 8917 | 9434 | 10318 | 2829 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 18 – GENERAL AND ADMINISTRATIVE EXPENSES**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Salaries and related expenses | 3449 | 6812 | 7169 | 1966 |
| Share-based compensation | 3137 | 2252 | 1226 | 336 |
| Office rent and maintenance | 1062 | 1734 | 1122 | 308 |
| Professional services | 1749 | 2215 | 2761 | 756 |
| Consulting services | 1516 | 2287 | 966 | 265 |
| Depreciation | 274 | 876 | 1103 | 302 |
| Insurance | 499 | 199 | 349 | 96 |
| Other | 1100 | 579 | 648 | 178 |
|  | 12786 | 16954 | 15344 | 4207 |

---

**NOTE 19 – FINANCIAL EXPENSES (INCOME), NET**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| **Financial expenses:** |  |  |  |  |
| Bank fees | 26 | 25 | 38 | 10 |
| Change at fair value of financial instruments |  | 15595 |  |  |
| Lease liabilities interest expenses | 323 | 586 | 502 | 138 |
|  | 349 | 16206 | 540 | 148 |
| **Financial income:** |  |  |  |  |
| Financial income from liability for royalties to the IIA | 200 | 74 | 90 | 25 |
| Interest income from short-term deposits | 3090 | 6853 | 5321 | 1459 |
| Gain from exchange rate fluctuations | 10617 | 6425 | 552 | 151 |
| Change at fair value of financial instruments | 10525 | - | - | - |
|  | 24432 | 13352 | 5963 | 1635 |
| **Financial expenses (income), net** | (24083) | 2854 | (5423) | (1487) |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 20 – BASIC AND DILUTED NET LOSS PER SHARE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Basic** 

The calculation of basic loss per share is generally based on the loss attributable to ordinary shareholders, divided by the weighted average number of ordinary shares outstanding during the period including vested options with zero-exercise price.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Loss attributable to ordinary shares (NIS and USD, in thousands) | 22119 | 58567 | 36736 | 10073 |
| Weighted average number of shares used in loss per share calculation | 6033018 | 6403108 | 6404719 | 6404719 |
| Basic loss per share (NIS and USD) | 3.68 | 9.12 | 5.76 | 1.6 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Diluted** 

Instruments that can potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted earnings per share, as their impact was anti-dilutive:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2022** | **2022** | **2023** | **2023** | **2024** | **2024** |
| Outstanding options at end of the year issued as part of share-based compensation |  | 658153 |  | 489988 |  | 448687 |

---

**NOTE 21 –RELATED PARTIES TRANSACTIONS AND BALANCES**

Related Parties - As defined in IAS 24, "Related Party Disclosures" ("IAS 24"). Key management personnel - included together with other entities in the definition of "related parties" in IAS 24, include the members of the Board of Directors and senior executives.

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 21 –RELATED PARTIES TRANSACTIONS AND BALANCES** (cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Balances with related parties** 

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Salaries and related benefits for related parties employed by the Company | 140 | 471 | 129 |
| Compensation for related parties not <br>employed by the Company | 168 | 140 | 38 |

---

****

<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Transactions with related parties** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| **Compensation for related parties:** |  |  |  |  |
| Salaries and related benefits for related parties employed by the Company | 2516 | 2142 | 2350 | 644 |
| Compensation for related parties not employed by the Company | 730 | 610 | 574 | 157 |

---

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 21 –RELATED PARTIES TRANSACTIONS AND BALANCES** (cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Compensation for key management personnel** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2023** | **2024** | **2024** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Salaries and related expenses | 4666 | 6026 | 6009 | 1648 |
| Share-based compensation | 534 | 339 | 391 | 107 |
| Accounts payable and accruals | 173 | 87 | 772 | 212 |

---

The Company's key management personnel, who are included in the table above, include the Chief Commercial Officer of the subsidiary, Chief Financial Officer, VP of Sales and Marketing, VP of Software Development, VP of Hardware Development, VP of Quality and Regulation, Legal Counsel, and Corporate Secretary. In addition to salaries and wages, senior management members participate in the Company's share option plan (see note 13).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D)** **Engagement between the Company and the CEO** 

The Company is engaged in a consulting services agreement with the consulting firm controlled by Mr. Elazar Sonnenschein, who serves as the CEO and a member of the board of directors. Under this agreement, the Company pays a monthly fee of NIS 100 thousand (approximately $27 thousand), plus compensation for social benefits and vehicle maintenance amounting to NIS 40 thousand (approximately $11 thousand) per month, as well as a performance-based incentive plan. These amounts are subject to VAT as required by law. For the update to the CEO's terms of engagement after the balance sheet date, see note 22(a).

**PULSENMORE LTD.**

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

**NOTE 22 – SUBSEQUENT EVENTS**

The Company's management has performed an evaluation of subsequent events through May 8, 2025, the date that the financial statements were authorized for issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Options – Cancellation and regranting (repricing)** 

On April 3, 2025, the Company's Board of Directors resolved to reprice the exercise price of the share options previously granted to employees and to update the exercise period of these options.

Such repricing of the share options is subject to the approval of the Israeli Tax Authority, which will be granted in accordance with a request for a tax ruling to be submitted by the Company (hereinafter: the "Tax Ruling"). The Company's Board of Directors has decided to update the terms of the employee share options as follows: The "exercise price" in relation to the share options of each of the offerees will be calculated in accordance with the definition of this term in the Company's employee option plan, with the pricing date being the later of (1) the date of filing the Tax Ruling request, (2) The date of the Board of Directors' decision and the date of approval by the general meeting (as required) (hereinafter: the "Repricing Date"). In accordance with the provisions of the Israeli Income Tax Ordinance, the vesting period of the aforementioned options will be over 4 years in accordance with the options plan with a blocking period of two years from the Repricing Date. The theoretical fair value of those options will be determined on the Repricing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Director and CEO of the Company – Dr. Elazar Sonnenschein** 

On March 27, 2025, the Company's Board of Directors approved, following the approval of the Compensation Committee on February 25, 2025 and subject to the approval of the Company's General Meeting of Shareholders, as follows: Bonus for 2024 – In light of the CEO's special contribution and efforts during 2024, in particular his significant contribution to leading the process of submitting the De-Novo application to the FDA, as well as the reorganization of the sales organization and its adaptation to the Company's needs, granting a bonus in the amount of NIS 300 thousand (approximately $82 thousand).

Furthermore, subject to the approval of the General Meeting of the Company's Shareholders as stated above, and effective from the date of approval of the Shareholders Meeting, the salary of the Company's CEO will be updated as follows: Monthly management fees will be updated to a total of NIS 130 thousand. Monthly payment for the component embodying social and related rights will be updated to a total of NIS 39 thousand. Car expenses: The CEO will be given two options to choose from: (1) Continuing the existing format and updating this component to a total of NIS 11 thousand or (2) providing a leasing car for the CEO (the value of the vehicle will not exceed a total of NIS 250 thousand) with a mileage limit in accordance with the leasing company's policy. Accommodation expenses - a total of NIS 5 thousand each month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **VP Hardware – Menashe Sonnenschein (brother of the Company's Director, CEO and controlling shareholder - Dr. Elazar Sonnenschein)** 

Bonus for 2024 – In light of the special contribution and efforts of the VP Hardware during 2024, in particular his significant contribution to the continued development of the iOS model for the Pulsenmore ES product, the process of submitting the De-Novo application to the FDA and his availability for any changes and organizational adjustments required according to the Company's needs, awarding a bonus in the amount of NIS 60 thousands (approximately $17 thousand).

Furthermore, subject to the approval of the General Meeting of the Company's Shareholders as stated, and effective from April 1, 2025, (1) The annual bonus cap to which the VP Hardware will be entitled will be updated to 2 monthly salaries (instead of one and a half monthly salaries, as was the case until now) in order to compare his conditions to the conditions of other managers similar to his position in the Company (2) The monthly salary shall be NIS 55 thousand (instead of NIS 50 thousand) (3) The amendment of the Options Plan (repricing), which is subject to the approval of the Israeli Tax Authority, shall apply to the Options granted to the VP Hardware.

**PULSENMORE LTD.**

**CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF JUNE 30, 2025**

**IN NIS**

**PULSENMORE LTD.**

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars (see note 2(c))** |
|  |<br>**December 31,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| **Assets** |  |  |  |
| **CURRENT ASSETS** |  |  |  |
| Cash and cash equivalents | 41170 | 24441 | 7250 |
| Short-term bank deposits | 62853 | 62109 | 18425 |
| Restricted deposits | 140 | 140 | 42 |
| Trade receivables | 3909 | 2669 | 792 |
| Other receivables | 1237 | 1259 | 373 |
| Inventory | 23092 | 21627 | 6416 |
| &nbsp;&nbsp;&nbsp;**Total current assets** | 132401 | 112245 | 33298 |
| **NON-CURRENT ASSETS** |  |  |  |
| Right-of-use assets | 1780 | 1296 | 384 |
| Property and equipment, net | 7645 | 6796 | 2016 |
| &nbsp;&nbsp;&nbsp;Total non-current assets | 9425 | 8092 | 2400 |
| &nbsp;&nbsp;&nbsp;**Total assets** | 141826 | 120337 | 35698 |
| **Liabilities and equity** |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |
| Trade payables | 2359 | 2152 | 637 |
| Other payable and accruals | 3780 | 3401 | 1009 |
| Contract liabilities | 5133 | 5326 | 1580 |
| Share-based compensation liability | 1458 | 1372 | 407 |
| Current maturities of liability for royalties to the Israel Innovation Authority | 532 | 918 | 272 |
| Current maturities of lease liabilities | 999 | 899 | 267 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 14261 | 14068 | 4172 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| Contract liabilities | 22897 | 22897 | 6792 |
| Share-based compensation liability, net of current maturities | 164 |  |  |
| Liability for royalties to the Israel Innovation Authority, net of current maturities | 6497 | 8143 | 2416 |
| Lease liabilities, net of current maturities | 1120 | 721 | 214 |
| &nbsp;&nbsp;&nbsp;Total non-current liabilities | 30678 | 31761 | 9422 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | 44939 | 45829 | 13594 |
| **EQUITY** |  |  |  |
| Ordinary shares | 2 | 2 | 1 |
| Share premium | 253205 | 253956 | 75336 |
| Capital reserve | 10968 | 10995 | 3262 |
| Accumulated deficit | (167288) | (190445) | (56495) |
| &nbsp;&nbsp;&nbsp;Total equity | 96887 | 74508 | 22104 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and equity** | 141826 | 120337 | 35698 |

---

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(C)**

**The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.**

**PULSENMORE LTD.**

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars (see note 2(c))** |
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **NIS in thousands<br> (except per share data)** | **NIS in thousands<br> (except per share data)** | **in thousands (except per share data)** |
| Revenues | 4350 | 3999 | 1186 |
| Cost of revenues | 2794 | 2542 | 754 |
| **Gross profit** | 1556 | 1457 | 432 |
| Research and development expenses, net | 9845 | 8029 | 2382 |
| Sales and marketing expenses | 4206 | 5966 | 1770 |
| General and administrative expenses | 7555 | 8083 | 2398 |
| **Operating loss** | 20050 | 20621 | 6118 |
| Financial expenses | 687 | 4766 | 1414 |
| Financial income | (4894) | (2231) | (663) |
| Financial expenses (income), net | (4207) | 2535 | 751 |
| **Loss before income tax** | 15843 | 23156 | 6869 |
| Provision for income tax | 53 | 1 | (\*) |
| **Net loss and comprehensive loss** | 15896 | 23157 | 6869 |
| Loss per ordinary share – basic and diluted | 2.48 | 3.6 | 1.04 |
| Weighted average ordinary shares outstanding | 6415442 | 6429059 | 6429059 |

---

**\*** Less than $1 thousand

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(C)**

**The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.**

**PULSENMORE LTD.**

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Ordinary shares** | <br>**Share premium** | <br>**Capital reserve** | <br>**Accumulated deficit** | **Total** |
|  | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** | **NIS in thousands** |
| **Balance at January 1, 2024** | 2 | 252473 | 10309 | (130552) | 132232 |
| Changes in the six month period ended June 30, 2024: |  |  |  |  |  |
| Net loss and comprehensive loss for the year |  |  |  | (15896) | (15896) |
| Share-based compensation |  |  | 724 |  | 724 |
| Exercise of options | \* | 50 | (49) |  | 1 |
| Expiration of options | - | 242 | (242) | - | - |
| **Balance at June 30, 2024** | 2 | 252765 | 10742 | (146448) | 117061 |
| **Balance at January 1, 2025** | 2 | 253205 | 10968 | (167288) | 96887 |
| Changes in the six month period ended June 30, 2025: |  |  |  |  |  |
| Net loss and comprehensive loss for the year |  |  |  | (23157) | (23157) |
| Share-based compensation |  |  | 506 |  | 506 |
| Exercise of options | \* | 471 | (199) |  | 272 |
| Expiration of options | - | 280 | (280) | - | - |
| **Balance at June 30, 2025** | 2 | 253956 | 10995 | (190445) | 74508 |

---

**\*** Less than NIS 1 thousand

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(C)**

**The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.**

**PULSENMORE LTD.**

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Convenience translation into U.S. dollars (see note 2(c))** | <br>**Convenience translation into U.S. dollars (see note 2(c))** | <br>**Convenience translation into U.S. dollars (see note 2(c))** | <br>**Convenience translation into U.S. dollars (see note 2(c))** | <br>**Convenience translation into U.S. dollars (see note 2(c))** |
|  | **in thousands** | **in thousands** | **in thousands** | **in thousands** | **in thousands** |
|  | <br>**Ordinary shares** | <br>**Share premium** | <br>**Capital reserve** | <br>**Accumulated deficit** | **Total** |
| **Balance at January 1, 2025** | 1 | 75113 | 3254 | (49626) | 28742 |
| Changes in the six month period ended June 30, 2025: |  |  |  |  |  |
| Net loss and comprehensive loss for the year |  |  |  | (6869) | (6869) |
| Share-based compensation |  |  | 150 |  | 150 |
| Exercise of options | \* | 140 | (59) |  | 81 |
| Expiration of options | - | 83 | (83) | - | - |
| **Balance at June 30, 2025** | 1 | 75336 | 3262 | (56495) | 22104 |

---

**\*** Less than $1 thousand

**All share amounts have been retroactively adjusted to reflect a 1-for-8 reverse share split as discussed in Note 1(C)**

**The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.**

**PULSENMORE LTD.**

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into USD** <br> **(note 2(c))** |
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Net cash used in operating activities (see appendix) | (24946) | (15570) | (4619) |
| **Cash Flows from Investing Activities** |  |  |  |
| Purchase of property and equipment | (171) | (97) | (29) |
| Proceeds from (investments in) short-term <br>deposits | 13301 | (2289) | (679) |
| Interest received | 4533 | 964 | 286 |
| Net cash provided by (used in) investing activities | 17663 | (1422) | (422) |
| **Cash Flows from Financing Activities** |  |  |  |
| Exercise of options | 1 | 4 | 1 |
| Payment to the Israel Innovation Authority | (108) | (287) | (85) |
| Receipt of grants from Israel Innovation Authority |  | 1319 | 391 |
| Principal portion of lease payments | (566) | (574) | (170) |
| Interest portion of lease payments | (162) | (94) | (28) |
| Net cash provided by (used in) financing activities | (835) | 368 | 109 |
| **Increase (decrease) in cash and cash** <br> **equivalents** | (8118) | (16624) | (4932) |
| **Cash and cash equivalents at beginning of the year** | 23869 | 41170 | 12213 |
| **Exchange differences on cash and cash** <br> **equivalents** | 1042 | (105) | (31) |
| **Cash and cash equivalents at end of the year** | 16793 | 24441 | 7250 |

---

**The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.**

**PULSENMORE LTD.**

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

---

| | | | |
|:---|:---|:---|:---|
| **Appendix to the statements of cash flows** | | | **Convenience<br> translation into USD (note 2(c))** |
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **NIS in thousands** | **NIS in thousands** | **in thousands** |
| Net loss | (15896) | (23157) | (6869) |
| **Adjustments for:** |  |  |  |
| Depreciation and amortization | 1375 | 1432 | 425 |
| Share-based compensation | 724 | 506 | 150 |
| Financial income | (2122) | (15) | (4) |
| Exchange differences | (2005) | 3356 | 996 |
|  | (2028) | 5279 | 1567 |
| **Changes in operating asset and liability items:** |  |  |  |
| Increase (decrease) in trade receivables | (1975) | 1240 | 368 |
| Increase in other receivables | (127) | (22) | (7) |
| Increase (decrease) in inventory | (1876) | 1465 | 435 |
| Decrease in trade payables | (3617) | (207) | (61) |
| Increase (decrease) in other payable and accruals | 503 | (379) | (112) |
| Increase in contract liabilities |  | 193 | 55 |
| Increase in liability of share-based compensation | 70 | 18 | 5 |
|  | (7022) | 2308 | 683 |
| **Net cash used in operating activities** | (24946) | (15570) | (4619) |
| **Supplemental information on non-cash**<br> **transactions:** |  |  |  |
| Changes in right-of-use asset and lease liabilities | - | (268) | (80) |
| Recognition of derivative financial instrument | 106 | - | - |

---

**The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.**

**Pulsenmore Ltd.**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**NOTE 1 – GENERAL INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **General** 

Pulsenmore Ltd. (separately and collectively referred to with its wholly-owned subsidiaries as the "Company" or "Pulsenmore") is an Israeli-based company, incorporated in Israel, and commenced its operations on October 27, 2014. The Company's registered office is located at 8 Omarim Street, Omer, Israel.

In March 2022, the Company established a wholly owned subsidiary, Pulsenmore Americas LLC (hereinafter – the "U.S. Subsidiary"), located in Boston, USA. The U.S. Subsidiary was incorporated under Delaware state law and began operations on March 10, 2022.

In February 2023, the Company established a wholly owned subsidiary, Pulsenmore Korea (hereinafter – the "Korean Subsidiary"), located in Seongnam, South Korea.

As of June 30, 2025, the Company operates in a one operating segment, focusing on the research, development, manufacturing, and global marketing of innovative technological solutions, specifically portable ultrasound devices for home use. These devices enable remote physical examinations and monitoring via telemedicine technology. The Company develops and sells miniaturized ultrasound systems.

The Company is a publicly traded entity, with its shares listed on the Tel Aviv Stock Exchange (hereinafter –"TASE"). On December 8, 2024, the Company completed the preparation of its application for the marketing approval of the ES product in the United States. The application was submitted to the U.S. FDA for approval under the De-Novo pathway. The submission includes the results of clinical trials conducted in the U.S., along with additional supporting data, including results from further trials, safety data, and laboratory technical assessments. On September 4, 2025, the Company submitted a response to questions and clarification requests it received from the FDA on March 18, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Intention and preparation for listing the Company's shares on the NASDAQ Stock Exchange** 

On April 3, 2025, the Board of Directors directed the Company's management to prepare to submit registration documents, including an annual report (on Form 20-F) to the US Securities and Exchange Commission ("SEC"), for the purpose of registering the Company's shares for trading on the Nasdaq Capital Market in the US ("Nasdaq"), so that upon completion of the registration process, the Company will become a dual-listed company, and its shares will be traded on the Tel Aviv Stock Exchange and Nasdaq. As of the date of the report, the Company is continuing the registration process for trading with the US regulatory authorities, including submitting several non-public drafts of registration documents to the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Reverse share split** 

Following the approval of the Company's Board of Directors on April 3, 2025 and the Company's General Shareholders meeting approval on May 20, 2025, the Company's Board of Directors approved on December 18, 2025, a 1-for-8 reverse share split of the Company's ordinary shares. Every eight ordinary shares, par value NIS 0.00004 each will be consolidated to one ordinary share, par value NIS 0.00032 each. In addition, the number of shares resulting from the exercise of the options will also be adjusted, in which the number of options will be decreased in the same proportion, and the exercise price of the options will be multiplied by the consolidated conversion ratio (without changing the total exercise price of all securities allocated).

The reverse share split will not be considered a change in the rights attached to the Company's ordinary shares.

Unless otherwise indicated herein, all references made to share or per share amounts in these unaudited condensed consolidated financial statements (including the notes to the financial statements), have been retroactively adjusted to reflect the reverse share split.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D)** **War in Israel** 

On October 7, 2023, Hamas Organization ("Hamas") launched an unprecedented attack on Israel, infiltrating its southern border and targeting civilians and military sites while firing rockets. In response, Israel declared war on Hamas, and the conflict is ongoing. Following the attack, Hezbollah Organization ("Hezbollah") also launched strikes on northern Israel, prompting Israeli retaliatory strikes. In October 2024, Israel initiated a ground operation in Lebanon. By the end of November 2024, Israel and Hezbollah reached a ceasefire agreement, and in January 2025, Israel and Hamas also reached a ceasefire agreement, though the stability of both agreements remains uncertain.

**Pulsenmore Ltd.**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**NOTE 1 – GENERAL INFORMATION (cont.)**

Since October 7, 2023, Israel has been in a state of war on multiple fronts involving the Gaza Strip and other countries and regions in the Middle East, including most recently the Islamic Republic of Iran. To date, there is no material adverse impact on Company's operations and financial results as a result of this war. However, at this time, it is not possible to predict the intensity or duration of the war, nor can the Company predict how this war will ultimately affect Israel's economy in general. The Company continues to monitor the situation closely and examine the potential disruptions that could adversely affect its operations. The Company assesses that even in the event of a prolonged war and economic slowdown in Israel, it will be able to meet its existing obligations as of June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E)** **Impact of inflation and interest rate decreases** 

During the first half of 2025, the inflation in Israel continued to moderate. The Bank of Israel's interest rate remained unchanged at 4.5%. The Company also periodically reviews its investment policy in light of changes in interest rates both domestically and internationally. As of the date of these financial statements, the Company is in the opinion that the continued decline in inflation and interest rates will not have a material impact on its financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F)** **Approval of consolidated financial statements** 

These condensed consolidated financial statements were authorized for issuance by the board of directors on September 15, 2025.

**NOTE 2 – MATERIAL ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Basis of presentation of the financial statements** 

The Company's condensed consolidated financial statements for the six months ended June 30, 2025, have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". These condensed consolidated financial statements, which are unaudited, do not include all of the information and disclosures that would otherwise be required in a complete set of annual financial statements and should be read in conjunction with the annual financial statements for the year ended December 31, 2024 and their accompanying notes, which have been prepared in accordance with IFRS Accounting Standards as published by the International Accounting Standards Board. The results of operations for the six months ended June 30, 2025, are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 31, 2025, or for any other interim period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Translation of balances and transactions in foreign currency** 

<u>Convenience translation into U.S. dollars</u>

The reported NIS amounts as of June 30, 2025 and for the six-month period then ended have been translated into U.S. dollars ("US dollars", "USD", "$"). All figures were translated using the representative exchange rate as of September 3, 2025 ($1 = NIS 3.371). The translation was made solely for the convenience of the reader. The dollar amount presented in these financial statements should not be construed to represent amounts receivable or payable in dollars or convertible into dollars, unless otherwise indicated in these financial statements.

**Pulsenmore Ltd.**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**NOTE 2 – MATERIAL ACCOUNTING POLICIES (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **Critical accounting estimates and judgments** 

1) <u>Estimates</u>

The preparation of interim financial statements requires the Company's management to exercise its judgment and to use significant accounting estimates and assumptions that affect the application of the Company's accounting policies and the amounts of reported assets, liabilities, income and expenses. Actual results may materially differ from those estimates.<br>

In preparation of these condensed consolidated financial statements, the significant judgments that were exercised by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were similar to those applied in the Company's annual financial statements for the year ended December 31, 2024.

2) <u>Accounting Policies</u>

The accounting policies applied in the preparation of these condensed consolidated financial statements are consistent with those applied in the preparation of the annual financial statements for the year ended December 31, 2024.

**NOTE 3 – NEW IFRS ACCOUNTING STANDARDS, AMENDMENTS TO STANDARDS AND NEW INTERPRETATIONS**

**New IFRS Accounting Standards, Amendments to standards and new interpretations** 

The Company's 2024 annual financial statements included information regarding new IFRS Accounting Standards and amendments to existing standards that are not yet mandatorily effective and which the Company has not elected to early adopt. As of June 30, 2025, there are no new standards or amendments to existing standards applicable to the Company that were not already disclosed in the Company's 2024 annual financial statements.

**NOTE 4 – COMMITMENTS AND CONTINGENT LIABILITIES**

**Liability of royalties to Israel Innovation Authority**

In May 2025, the Company received grants in the amount of approximately NIS 2,849 thousand. There is no reasonable assurance that the grants received will not be returned, and therefore the Company recognized a liability at a present value for the payment of royalties in the amount of approximately NIS 1,319 thousand.

**Pulsenmore Ltd.**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**NOTE 5 – SHARE BASED COMPENSATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Exercise and expiration of options** 

During the first six months of 2025, 4,608 options expired, and 38,085 options were exercised by a former director of the Company.

On February 27, 2025, in connection with the exercise of the above-mentioned options, the Company received cash in the amount of approximately NIS 4 thousand from the former director. This amount reflects the difference between the original exercise price and the new exercise price, multiplied by the number of exercised shares, such that the effective additional exercise price per share remains unchanged. The mechanism provides for net settlement, meaning that no cash is transferred from the Company to the directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Repricing of employees' option plan** 

On April 3, 2025, the Company's Board of Directors resolved to reprice the exercise price of the share options previously granted to employees and to update the exercise period of these options.

Such repricing of the share options is subject to the approval of the Israeli Tax Authority, which will be granted in accordance with a request for a tax ruling to be submitted by the Company (hereinafter: the "Tax Ruling"). The Company's Board of Directors has decided to update the terms of the employee share options as follows: The "exercise price" in relation to the share options of each of the offerees will be calculated in accordance with the definition of this term in the Company's employee option plan, with the pricing date being the later of (1) the date of filing the Tax Ruling application, (2) The date of the Board of Directors' decision and the date of approval by the general meeting (as required) (hereinafter: the "Repricing Date"). In accordance with the provisions of the Israeli Income Tax Ordinance, the vesting period of the aforementioned options will be over 4 years in accordance with the options plan with a blocking period of two years from the Repricing Date. The theoretical fair value of those options will be determined on the Repricing Date. As of June 30, 2025, the application has not yet been submitted to the Israeli Tax Authority.

**Pulsenmore Ltd.**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**NOTE 6 – REVENUE FROM CONTRACTS WITH CUSTOMERS**

**Revenue by Geographic Segmentation**

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Convenience<br> translation into<br> U.S. dollars** |
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2024** | **2025** | **2025** |
|  | **NIS in thousands** | **NIS in thousands** | **$ in thousands** |
| Israel | 3962 | 3875 | 1150 |
| Europe | 388 | 105 | 31 |
| Other | - | 19 | 6 |
|  | 4350 | 3999 | 1187 |

---

For the six months ended June 30, 2025 and 2024, the main revenues from its operations in Israel (approximately NIS 3,605 thousand and NIS 3,800 thousand, respectively), were derived from Clalit Health Services.

**NOTE 7 – RELATED PARTIES TRANSACTIONS AND BALANCES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Director and CEO of the Company – Dr. Elazar Sonnenschein** 

On May 21, 2025, the general meeting of the Company's shareholders, further to the approval of the Board of Directors on March 27, 2025, and the approval of the Compensation Committee on February 25, 2025, approved the update of the terms of office and employment of the Company's CEO and Director Dr. Elazar Sonnenschein, as follows:

Provision of a bonus in the amount of NIS 300 thousand for 2024. In addition, and starting from the date of approval by the shareholders' meeting as aforesaid, the salary of the Company's CEO will be updated as follows: Monthly management fees have been updated to a total of NIS 130 thousand. The monthly payment for the component embodying social and related rights will be updated to a total of NIS 39 thousand. Vehicle expenses: The CEO will be given two options to choose from: (1) continuing the existing format and updating this component to a total of 11 thousand NIS or (2) providing the CEO with a leasing vehicle (the value of the vehicle will not exceed 250 thousand NIS). Accommodation ("Per Diem") expenses - a total of 5 thousand NIS each month.

**Pulsenmore Ltd.**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**NOTE 7 – RELATED PARTIES TRANSACTIONS AND BALANCES** (cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **VP Hardware – Menashe Sonnenschein (brother of the Company's Director, CEO and controlling shareholder - Dr. Elazar Sonnenschein)** 

On May 21, 2025, the General Meeting of the Company's shareholders, further to the approval of the Board of Directors dated March 27, 2025, and the approval of the Compensation Committee dated February 25, 2025, approved the update of the terms of office and employment of the VP of Hardware Mr. Menashe Sonnenschein (brother of a director, CEO and controlling shareholder of the Company - Dr. Elazar Sonnenschein - CEO of the Company and Director) as follows:

Bonus in the amount of NIS 60 thousand for 2024. Furthermore, effective April 1, 2025, (1) the annual bonus ceiling to which he will be entitled The VP of Hardware will be updated to 2 monthly salaries (instead of 1.5 monthly salaries, as was the case until now) in order to compare his conditions to those of other managers similar to his position in the company. (2) His monthly salary will be NIS 55,000 (instead of NIS 50,000). (3) The amendment to the option plan (repricing), subject to approval by the Tax Authority, will apply to the options granted to the VP of Hardware.

**NOTE 8 – SUBSEQUENT EVENTS**

The Company's management has performed an evaluation of subsequent events through September 15, 2025, the date that the condensed financial statements were authorized for issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A)** **Settlement Agreement - GEHC** 

On August 6, 2025, a settlement agreement was signed to resolve all disputes between the Company and GE Precision Healthcare LLC ("GEHC") (the "Settlement Agreement"). Pursuant to the Settlement Agreement, all disputes between the parties relating to the cancellation of orders placed by GEHC to the Company for 15,000 of the Company's Pulsenmore ES products (the "Disputed Orders") were resolved, and the parties mutually waived any and all claims relating to the Distribution Agreement ("Distribution Agreement") and the Material Commitment Agreement annexed thereto ("Material Commitment Agreement"), both dated June 8, 2022, and in connection with the Investment Agreement dated May 11, 2022 between the Company and GE Healthcare Global Holdings Inc. ("GE Holdings") (the "Investment Agreement"), including in connection with GEHC's obligation under the Material Commitment Agreement to purchase unused components (the "Disputed Components"). Pursuant to the Settlement Agreement, and without any Admitting any of the defendant's claims, GEHC will pay the Company a total of USD 1 million. The disputed orders have been canceled (so that at this time there are no open orders from GEHC for the Company's products), and the component purchase agreement has been terminated (so that the Company will not be required to return the USD 1 million advance it received upon signing the agreement in 2022, nor will it be required to transfer to GEHC any components purchased under it, and GEHC will not be required to pay any additional amounts thereunder

As part of the Settlement Agreement, it was also agreed that Japan would be removed from the definition of an "exclusive territory" and that GEHC would retain non-exclusive distribution rights to the company's ES pregnancy product in the US and Europe only, until the end of the original agreement period, i.e. June 2029, unless extended. This follows the Company's notification to GE dated November 21, 2024, regarding the non-renewal of the exclusivity period with respect to 20 customers in Europe, which entered into force on June 7, 2025.

The Company is examining the implications of the settlement agreement on its financial statements, including the potential impact on the balance of the contract liabilities of approximately NIS 23 million, which was recognized upon the execution of the Distribution Agreement.

**Pulsenmore Ltd.**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

**NOTE 8 – SUBSEQUENT EVENTS** (cont.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B)** **Memorandum of Understanding with a Medical Center in Australia** 

On July 22, 2025, the Company entered into a Memorandum of Understanding (MOU) with GCUH (Gold Coast University Hospital), a university medical center that is part of a health maintenance organization (HMO) operating in the state of Queensland, Australia (hereinafter: "GCUH"), in a Memorandum of Understanding for Cooperation (hereinafter: the "MoU") in connection with the Company's Pulsenmore ES product, which provides a solution for performing remote home ultrasound examinations for pregnant women (hereinafter: the "Agreement" and the "Product", respectively). As part of the Memorandum of Understanding, it was determined that the GCUH Medical Center will serve as a "Center of Excellence" in Australia for the Company's product. In return, the Medical Center will be entitled to discounts for the purchase of devices in accordance with and subject to the purchase of minimum quantities as determined in the Memorandum of Understanding. It was also agreed that during a period of one year from the signing of the Memorandum of Understanding, an agreement will be signed between the parties to anchor the agreements regarding the cooperation as agreed in the Memorandum of Understanding. The Memorandum of Understanding for the collaboration was signed between the parties following an agreement to purchase 100 units (hereinafter: "Unit Purchase Agreement") for the purpose of conducting a commercial trial. The duration of the collaboration agreement is 4 years and is extendable for two additional periods of one year each. In July 2025, an advance payment of approximately NIS 117 thousand was received in respect of an order received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C)** **CE MDR Approval for the Company's Pulsenmore ES Pregnancy Product** 

On August 26, 2025, the Company received from a European certification body an EU Quality Management System Certificate for Regulation (CE MDR), valid until August 19, 2030. The said certificate is a certification certificate with a broad indication issued to the Company for ultrasound imaging devices and associated software applications. Accordingly, the Company is authorized, according to the standard that has come into effect in Europe today, to mark the Company's Pulsenmore ES pregnancy product with the CE Mark and to market it in Europe, based on the new standard (CE MDR).

## Exhibit 1.1

**Exhibit 1.1**

**Amended and Restated Articles of Association**

**of**

**Pulsenmore Ltd.**

1. <u>Preamble</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. In
 these Articles, unless the context requires otherwise:

---

| | |
|:---|:---|
| "**Person**" | Including an Entity and a natural person; |
| "**Confirmation of Ownership**" | shall mean a confirmation of the ownership of a share by a member of the applicable Stock Exchange; |
| "**Stock Exchange**" | shall mean the Tel-Aviv Stock Exchange Ltd. ("**TASE**"), The Nasdaq Stock Market LLC or Nasdaq Capital Market ("**NASDAQ**") or any other stock exchange or quotation system on which the Ordinary Shares are listed or quoted; |
| "**In Writing**" | shall mean in handwriting, in print, in a typewriter, in a photocopy, by fax, or in any other legible format; |
| "**Registered Shareholder**" | shall mean a shareholder, as defined in Section 177(2) of the Companies Law; |
| "**Non-Registered Shareholder**" | shall mean a shareholder, as defined in Section 177(1) of the Companies Law; |
| "**Administrative Enforcement Proceeding**" | shall mean an administrative enforcement proceeding in accordance with the provisions of any applicable law, including but not limited to the Securities Law, as amended from time to time, the Economic Competition Law, 5748-1988, as amended from time to time, including an administrative petition, an objection, or an appeal in connection with such a proceeding; |
| "**Business Day**" | shall mean any day other than Saturday, Sunday or public holiday under the laws of Israel or the State of New York or other day on which banking institutions are authorized or obligated to close in Israel or the State of New York. |
| "**Company**" | shall mean Pulsenmore Ltd.; |
| "**Companies Law**" | shall mean the Israeli Companies Law, 5759-1999, as amended from time to time, and the regulations promulgated thereunder, as amended from time to time; |
| "**Securities Law**" | shall mean the Israeli Securities Law, 5728-1968, as amended from time to time, and the regulations promulgated thereunder; |
| "**Deed of Appointment**" | shall mean a document appointing a proxy to vote in a Company general meeting; |
| "**Majority**" | shall mean:<br>(1) with respect to voting at meetings of the Shareholders - a simple majority of those present and voting determined in accordance with the voting rights attached to the Shares; provided, however, that abstaining votes are not counted;<br>(2) with respect to voting at meetings of the Board of Directors or any committee thereof - a simple majority determined in accordance with the number of voting Directors; provided, however, that abstaining votes are not counted. |

---

---

| | |
|:---|:---|
| "**NIS**" | shall mean New Israeli Shekel. |
| "**Special Majority**" | shall mean a majority of sixty-six and two thirds percent (66 2/3%) or more of the votes cast by those shareholders voting in person or by proxy (including by voting deed), not taking into consideration abstaining votes. |
| "**Secretary**" | shall mean the Person appointed as the Company Secretary (if appointed); |
| "**Shares**" or "**Ordinary Shares**" | shall mean Ordinary shares of the Company, par value NIS 0.00004 each; |
| "**Register**" or "**Shareholder Register**" | shall mean the register of Company shareholders that must be kept in accordance with the Companies Law; |
| "**Office**" or "**Registered Office**" | shall mean the Company's registered office at any given time; |
| "**Office Holder**" | shall have the meaning ascribed to such term in the Companies Law; |
| "**Year**" or "**Month**" | According to the Gregorian calendar; |
| "**Entity**" | shall mean a company, a partnership, a cooperative association, a nonprofit, and any other incorporated or unincorporated body of Persons; |
| The "**Articles**" | shall mean these Amended and Restated Articles of Association, as may be amended from time to time. |

---

&nbsp;&nbsp;&nbsp;&nbsp;1.2. All
 terms in these Articles that are not defined above in Article 1.1 or in another article are defined according to the definition in
 the Companies Law, unless this creates a contradiction with the subject matter or content of that written; words in the singular
 also refer to the plural and vice versa; words in the masculine also referred to the feminine.

1.3. Headings
 in these Articles are intended for convenience purposes only and may not be used in their interpretation.

1.4. Wherever
 these Articles stipulate that its provisions apply subject to the Companies Law or to any applicable law, this means the mandatory
 provisions of the Companies Law or of any other law, unless otherwise required by the context.

1.5. The
 Company is subject to the non-mandatory provisions of the Companies Law, unless these Articles stipulate otherwise, and as long as
 there is no conflict between them and these Articles.

2. <u>Name of the Company</u> 

The name of the Company in Hebrew is: בע"מפלסאנמור . <br>The name of the Company in English is: Pulsenmore Ltd.

---

| | |
|:---|:---|
| 3. | <u>Limitation of Liability</u> |
|  | Shareholder liability is limited so that each ordinary shareholder is only liable for the repayment of its Shares' par value. If the Company allots Shares at a lower consideration than the Shares' par value, as stated in Section 304 of the Companies Law, each shareholder's liability will be limited to paying off the reduced consideration amount due to each share allotted to them thus. |
| 4. | <u>Objectives of the Company</u> |
|  | The objectives of the Company are to engage in any lawful activity. |
| 5. | <u>Donations</u> |
|  | The Company may donate reasonable amounts to worthy causes, even if the donation is not made in the framework of the Company's business considerations. At its discretion, the Board of Directors may set the donated amounts, the causes for which donations may be made, the donation recipient's identity, and any other relevant condition. Furthermore, the Board of Directors may authorize the Chief Executive Officer ("**CEO**") to decide on the distribution on donations in practice, at the CEO's discretion, and on the identity of the donation recipient, and any other relevant condition, according to the criteria set by the Board of Directors. |
| 6. | <u>The Registered Office</u> |
|  | The Company's Registered Office is to be at the address the Board of Directors determines, and it may change from time to time. |
| 7. | <u>Modifications to the Articles</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;7.1. Except
 as otherwise provided in these Articles, the Company may modify these Articles by a resolution adopted by a Majority of the Shareholders
 voting at the applicable meeting of the Shareholders ()"**General Meeting** ").

7.2. A
 resolution that modifies any provision of these Articles, adopted by a Majority of the Shareholders voting at the General Meeting
 (or such other majority required by these Articles for modifying any provision of these Articles, as the case may be) to modify these
 Articles at the General Meeting, will be considered a resolution to modify these Articles, even if the resolution does not state
 this expressly.

7.3. Subject
 to the Companies Law, modifications to these Articles are effective as of the day the Company resolves to make them, or as of a later
 date, as the resolution stipulates.

---

| | |
|:---|:---|
| 8. | <u>Registered Share Capital</u> |
|  | The Company's authorized share capital of the Company is NIS 10,000, divided into 250,000,000 Ordinary Shares. The Company may change the authorized share capital according to the Companies Law and these Articles. |
| 9. | <u>The Shares</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;9.1. All
 Ordinary Shares have equal rights, for all intents and purposes, including the rights to dividends, to bonus Shares, and to participate
 in the distribution of the Company's surplus assets upon its dissolution, in proportion to each share's par value, without
 considering any premium paid on it, all, subject to the provisions of these Articles.

9.2. Each
 Ordinary Share entitles its holder to participate in Company general meetings, and to a single vote.

9.3. Anyone
 registered as a shareholder in the Shareholder Register, and anyone to whose name a share is registered with a member of the applicable
 Stock Exchange, including if the share is included among the Shares registered to the name of the nominee company in the Company's
 Shareholder Register, is considered a Company shareholder.

9.4. If
 a shareholder acts as a trustee for the benefit of another Person, they must notify the Company of such arrangement, and the Company
 will register them in the Shareholder Register, including the trust status; for the purpose of the Companies Law, they will be considered
 one shareholder, and the Company will consider the trustee a shareholder for all intents and purposes and will not recognize any
 other Person, including the beneficiary Person, as having any title to the share.

10. <u>Share Certificate</u> 

---

| | |
|:---|:---|
| 10.1. | The certificates attesting to the property rights in the Shares must bear the Company stamp and signatures by two directors or the signatures of any two people the Board of Directors may authorize for this purpose. |
|  | The Board of Directors may decide that the signature or signatures above may be made mechanically, in the manner the Board of Directors determines. |
| 10.2. | As long as Company Shares are listed on a Stock Exchange, all Shares the Company allots, including Shares that result from the conversion of convertible securities into Shares, if the Company issues such securities, may be registered to the name of a nominee company, in the Shareholder Register, to the extent determined by the Company to be necessary. |
| 10.3. | Unless the share issuance terms stipulate otherwise, and subject to any applicable law, a nominee company may receive a single certificate attesting to the number and type of Shares registered to it in the Shareholder Register at its request, within two Months after the issuance's or the transfer's registration, as applicable, against the replaced share certificates. |
| 10.4. | Subject to the Companies Law, each share certificate must state the number of Shares due to which it is issued, their serial numbers, and their par value. |
| 10.5. | A certificate relating to a share that is registered to two or more people must be delivered to the Person listed first in the Shareholder Register with regard to that share, unless all registered holders of that share give the Company a written notice to deliver the certificate to another registered holder. |
| 10.6. | If a share certificate is defaced, corrupted, lost, or destroyed, the Board of Directors may order its revocation and issue a new certificate in lieu of it, as long as the Company receives and destroys the share certificate, or that the Board of Directors is satisfied that the certificate has been lost or destroyed, and the Company has received guarantees due to any potential damage, to the Board of Directors' satisfaction. A reasonable amount will be paid due to each share certificate issued under this Article, as the Board of Directors (if at all) determines from time to time. The Board of Directors may authorize any Person to exercise the Board of Directors' authorities under this Article. |

---

---

| | |
|:---|:---|
| 11. | <u>Payments Due to Shares</u> |
|  | All Shares in the Company's issued capital will be fully paid up. |
| 12. | <u>Forfeiture of Shares</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;12.1. Without
 detracting from that set forth above in Article 11, the Board of Directors may forfeit and sell any share the Company has issued,
 if the consideration the shareholder has warranted to pay has not been paid to the Company, in whole or in part, and the provisions
 of the Companies Law apply to this matter. The forfeiture will also apply to any dividend declared on the forfeited Shares that has
 not been paid in practice before the forfeiture.

12.2. The
 forfeiture of Shares, as stated above in Article 12.1, is to be performed pursuant to a demand notice to be issued to the shareholder,
 that must stipulate the date (at least seven days after the demand notice date) and place where the payment demand must be fulfilled
 ()"**Demand Notice** "). The Demand Notice must state that in the event of failure to pay on the scheduled date or earlier,
 and at the place stipulated in the notice, the Company might forfeit the Shares in connection with which the payment demand is made.

&nbsp;&nbsp;&nbsp;&nbsp;12.3. At
 any time before forfeiting, reselling, or otherwise disposing of such a share, the Board of Directors may call off the forfeiture,
 at the terms the Board of Directors considers appropriate.

12.4. A
 shareholder whose Shares have been forfeited:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4.1. will
 no longer be a shareholder with regard to the forfeited Shares, and upon such a forfeiture, all of their rights and duties toward
 the Company due to the forfeited Shares will be revoked, as well as any claim or demand toward the Company regarding the forfeited
 Shares, except the rights and duties that are excluded from this rule according to these Articles or that apply to former shareholders,
 under any applicable law.

12.4.2. Will
 continue to bear its duty to pay, and will pay the Company all payment demands, payment amounts, interest amounts, and expenses the
 Company is entitled to on the forfeited Shares or due to them as of the forfeiture date, plus interest on these amounts, from the
 date of the forfeiture to the actual payment date, at the maximal permissible rate at the time, under any applicable law, without
 delay. The Board of Directors may obligate a shareholder whose Shares have been forfeited to pay those amounts, wholly or partly,
 as long as if the forfeited Shares are sold or re-allotted, the liability of the shareholder whose Shares have been forfeited will
 be reduced, by the amount received in practice from selling them or re-allotting them, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;12.5. The
 provisions of these Articles regarding forfeiture also apply to incidents of failure to pay a predetermined amount that has become
 due according to the share allotments terms on a fixed date, whether on the share amount or as a premium, as though this amount had
 become due according to the payment demand that has been made, and that due notice thereof has been made under the provisions of
 these Articles.

13. <u>Share Transfer</u> 

&nbsp;&nbsp;&nbsp;&nbsp;13.1. Shares
 and other securities of the Company may be transferred, subject and pursuant to the provisions of this Article 13.

13.2. Any
 transfer of Shares registered in the Shareholder Register in the name of a Registered Shareholder, including a transfer made by a
 nominee company or to a nominee company, must be made In Writing, as long as the deed of transfer is signed by the transferring party
 and by the transferee, in person or through their representatives, and by the witnesses to the signature, and delivered to the Company's
 Registered Office or to any other location, as the Board of Directors determines for this purpose. Subject to the Companies Law,
 a share transfer will not be registered in the Shareholder Register until after the Company has received the deed of transfer, as
 stated above, and the Company will continue to treat the transferring party as the holder of the transferred Shares, until the transferee
 is registered as the holder of the transferred Shares in the Shareholder Register. Without derogating from the foregoing, Shares
 registered in the name of the depository trust company (or any equivalent thereof) or a nominee thereof shall be transferable, in
 addition to the terms set forth above, also in accordance with the policies and procedures of such depository trust company (or any
 equivalent thereof) or nominee thereof. The Board of Directors may, from time to time, approve other methods of recognizing the transfer
 of Shares in order to facilitate the trading of the Company's shares on the Stock Exchange.

13.3. The
 deed of share transfer must be made In Writing in a standard format in Israel and acceptable by the Board of Directors. If the transferring
 party or the transferee is an Entity, a lawyer, an accountant, or another Person whose identity is acceptable to the Board of Directors,
 must verify the authority of those signing on behalf of the Entity, to make or to receive the transfer, as applicable.

13.4. The
 Company may lock the Shareholder Register for a duration to be determined by the Board of Directors, as long as it does not exceed
 30 days a Year. While the Register is locked, share transfers may not be recorded in it. Subject to the provisions of these Articles
 and to the allotment terms of all classes of Shares, the Shares may be transferred with no need for the Board of Directors'
 approval.

&nbsp;&nbsp;&nbsp;&nbsp;13.5. All
 deeds of transfer must be submitted to the Office or to another location as the Board of Directors may determine, to register them,
 along with the certificate due to the Shares to be transferred, if issued, and any other proof the Board of Directors may demand
 concerning the transferring party's property right or its rights to transfer the Shares. The Company will retain the registered
 deeds of transfer.

13.6. Subject
 to the Companies Law and to the provisions of these Articles, if the Board of Directors does not refuse or decline to register such
 transfer of shares in accordance with the provisions of these Articles, the Company will register the transfer of shares in the Shareholders
 Register as soon as is practicable.

13.7. The
 foregoing notwithstanding, if one or more of the joint registered holders of Shares listed to their name in the Register passes away,
 the Company will recognize the surviving registered holders alone as entitled to these Shares, subject to any applicable law.

13.8. Subject
 to the provisions of these Articles, the Company may alter the registration of ownership of Shares in the Shareholder Register, if
 the Company receives a court order to amend the Register or if it is proven to the Company, to the Board of Directors' satisfaction,
 and in the methods the Board of Directors has determined, that the lawful conditions for assigning the right to Shares have been
 met, and the Company may not acknowledge any Person's title to the Shares before their title has been proven, as stated above.

13.9. Without
 detracting from the foregoing, the Board of Directors may refuse to perform the registration or delay it, as it would have been entitled
 to, had the Registered Shareholder transferred the share themselves before assigning the right.

13.10. Subject
 to the Companies Law and the provisions of these Articles, any Person who has become entitled to a share, as stated above in Article
 13.6, may transfer the Shares, as the Registered Shareholder would have been entitled to do in person before the right was assigned.

13.11. The
 Company may destroy deeds of share transfer at the lapse of seven Years of their registration in the Register. The Company may also
 destroy revoked share certificates after seven Years of the revocation, on the presumption that all such destroyed deeds of transfer
 and certificates were in full effect and that the transfers, revocations, and registrations, as applicable, have been made lawfully.

14. <u>Changes to the Capital</u> 

&nbsp;&nbsp;&nbsp;&nbsp;14.1. The
 Company may increase its registered share capital by resolution adopted by a Majority of the Shareholders voting at the applicable
 General Meeting, and create additional classes of Shares in the Company equity.

14.2. Subject
 to the Companies Law, the Company may, subject to a resolution adopted by a Majority of the Shareholders voting at the applicable
 General Meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1. Consolidate
 all or some of its Shares, and divide them into Shares with a larger par value than its existing Shares' par value.

14.2.2. Divide
 all or some of its Shares through a subdivision into Shares with a lower par value than its existing Shares' par value.

14.2.3. Reduce
 the Company's capital and any reserve fund out of a capital redemption.

&nbsp;&nbsp;&nbsp;&nbsp;14.3. The
 Board of Directors may settle any difficulty that may arise in connection with the execution of any such resolution, at its discretion.

14.4. Without
 detracting from the generality of the Board of Directors' power, as stated above, if shareholders are left with fractions of
 Shares as a result of such a consolidation or division, the Board of Directors may act in one or more of the following manners, at
 its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4.1. Determine
 that the Company will sell fractions of Shares that do not entitle their holders to a whole share, and pay the sale proceeds to the
 eligible parties, at the terms and in the manner to be determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4.2. Allot
 Shares of a class that existed in the Company capital before the consolidation or division to each holder of a share that does not
 entitle its holder to a whole share, in such a number that will create one whole share when consolidated with the fraction, and such
 an allotment is to be considered to be effective as of right before the consolidation or division, as applicable.

14.4.3. Determine
 how the amounts payable on the Shares allotted as stated above in Article ‎14.4.2 are to be paid off, including by making it
 possible to pay off the amounts owed on bonus Shares.

14.4.4. Determine
 that holders of fractions of Shares are not entitled to a whole share due to a fraction of the share.

14.4.5. Determine
 that shareholders are not eligible to a whole share due to a fraction of the whole share of a specific par value or less, and are
 entitled to a whole share due to a fraction of the whole share of the higher par value than that par value.

&nbsp;&nbsp;&nbsp;&nbsp;14.5. The
 Company may revoke the yet unallotted registered share capital by a resolution adopted by a Majority of the Shareholders voting at
 the applicable General Meeting, as long as the Company has not made an undertaking, including a conditional undertaking, to allot
 the Shares.

15. <u>Modification of Rights</u> 

&nbsp;&nbsp;&nbsp;&nbsp;15.1. Whenever
 the share capital is divided into different classes, the Company may, by a resolution adopted by a Majority of the Shareholders voting
 at the applicable General Meeting and unless the allotment terms of this class of Shares stipulate otherwise, revoke, convert, expand,
 add, reduce, amend, or otherwise alter the rights attached to a class of Company Shares, as long as all holders of Shares of that
 class give their written consent to do so, or as the class meeting of shareholders of that class passes a resolution to do so by
 an ordinary majority of votes, or, if stipulated otherwise in the allotment terms of a certain class of Company Shares, as stipulated.

15.2. The
 provisions of these Articles regarding General Meetings apply to all class meetings, *mutatis mutandis*.

15.3. The
 rights granted to shareholders or to the holders of a class of Shares that have been issued, whether this concerns ordinary rights
 or preferences or other special rights, are not considered to have been converted, reduced, prejudiced, or otherwise altered by the
 creation or issuance of other Shares of any class whatever, whether of an equal rank or a different or higher rank for the purposes
 of Article 15.2 above, nor will they be considered to have been converted, reduced, prejudiced, or otherwise altered, for the purposes
 of the above article, by a change in the rights attached to Shares of any other class, unless expressly stated otherwise in these
 Shares' allotment terms.

16. <u>Issuance of Shares and Other Securities</u> 

&nbsp;&nbsp;&nbsp;&nbsp;16.1. The
 Board of Directors may issue or allot Shares and other securities that may be converted into or exercised as Shares, up to the limit
 of the Company's registered share capital; for this purpose, convertible securities, or securities that may be exercised as
 Shares, will be considered to have been converted or exercised on the issue date. Without detracting from the generality of the foregoing,
 the Board of Directors may issue the Shares and other securities, as stated above, grant rights of choice to purchase them, including
 options, or grant them in any other way, all to the people, on the dates, at the price, and at the terms it sets, and order anything
 in connection with this, all at the Board of Directors' discretion.

16.2. Without
 detracting from the generality of the foregoing, and subject to the Companies Law and these Articles, the Board of Directors may
 determine that the consideration due to the Shares is to be paid in cash or in kind, including in securities or in any other way,
 at its discretion; or that the Shares are to be granted as bonus Shares or that they are to be allotted for a consideration that
 is equal to or higher or lower than their par value, in units or in series, all on the dates and at the terms the Board of Directors
 sets, at its discretion.

16.3. The
 Board of Directors may decide to pay any Person brokerage fees or underwriting fees, in consideration for subscribing for, agreeing
 to subscribe for, or obtaining subscriptions or undertakings to subscribe to Company Shares, debentures, or other securities. The
 Board of Directors may also decide to pay brokerage fees whenever Company securities are issued, all in cash, in Company Shares,
 or in other Company securities, or in any other way, or to pay one part in one way and another part another way, all subject to any
 applicable law.

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| | |
|:---|:---|
| 17. | <u>Redeemable Securities</u> |
|  | Subject to the Companies Law, the Company may issue redeemable securities at the terms and in the manner the Board of Directors sets, at its discretion. |
| 18. | <u>Registers</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;18.1. The
 Company will keep a Shareholder Register and record the names of the shareholders and all other information required according to
 the Companies Law, shortly after issuing any Company share. Subject to the Companies Law, upon a Shareholder's registration
 in the Register, they will be considered the owner of the Shares registered to them, even if no share certificate has been issued
 over such Shares.

18.2. The
 Company may keep another Shareholder Register outside Israel, at the terms stipulated for this purpose in the Companies Law.

18.3. The
 Company will keep a register of debenture holders and securities that may be converted into Company Shares, and all provisions of
 these Articles regarding Shares apply to such convertible securities for the purpose of making entries in the Register, issuing certificates,
 replacing certificates, transfers, and assignments, *mutatis mutandis*, as applicable, all subject to the securities'
 allotments terms.

19. <u>General Meetings</u> 

&nbsp;&nbsp;&nbsp;&nbsp;19.1. Company
 resolutions on the following matters are to be made by a General Meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.1. Changes
 to these Articles;

19.1.2. Exercising
 the Board of Directors' powers by the general meeting, if the Board of Directors cannot exercise its powers, and exercising
 one of its powers is essential for the Company's proper management, as stated in Section 52(A) of the Companies Law;

19.1.3. Appointing
 and dismissing the Company's Auditor;

19.1.4. Authorizing
 actions and transactions that require the general meeting's approval under Sections 255 and 268 to 275 of the Companies Law;

19.1.5. Increasing
 and decreasing the registered share capital under the provisions of Sections 286 and 287 of the Companies Law, and changing the capital,
 as set forth in these Articles;

19.1.6. A
 merger, as stated in Section 320(A) of the Companies Law;

19.1.7. Any
 decision that must be made by a General Meeting resolution under these Articles or the Companies Law.

19.1.8. The
 appointment and dismissal of directors shall be made only by the annual General Meeting (the "**Annual Meeting** ").

&nbsp;&nbsp;&nbsp;&nbsp;19.2. Subject
 to Section 50 of the Companies Law, the General Meeting may assume the authorities vested in another organ, and if the general meeting
 assumes the Board of Directors' powers, the shareholders will bear the directors' liabilities and responsibilities, as
 stated in Section 50(B) of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;19.3. The
 Company is to hold the Annual Meeting annually and no later than the lapse of 15 Months of the last Annual Meeting, at the place
 and time the Board of Directors determines.

19.4. If
 traveling is restricted subject to the instructions of an applicable securities authority, from time to time, a General Meeting may
 gather using any media, as long as all participants can hear each other at the same time.

19.5. The
 agenda of the Annual Meeting must include the following subjects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5.1. Reviewing
 the Company's financial statements and the Board of Directors report on the state of the Company's affairs, submitted
 to the general meeting;

19.5.2. Appointment
 of applicable class of directors;

19.5.3. Appointing
 the Auditor and setting their wages or authorizing the Board of Directors to set their wages;

19.5.4. Together
 with the foregoing, the agenda at the Annual Meeting may include any other issue that has been put on the agenda, as stated below
 in Article 19.10;

&nbsp;&nbsp;&nbsp;&nbsp;19.6. A
 General Meeting which is not an Annual Meeting shall be also referred to herein as a "Extraordinary Meeting".

19.7. The
 Company Board of Directors may convene Extraordinary Meetings, and shall further convene an Extraordinary Meeting at the requirement
 of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.7.1. Two
 directors or one-quarter of the serving directors;

19.7.2. Subject
 to the Companies Law and the regulations promulgated thereunder, one shareholder holding at least 10% of the issued and outstanding
 share capital and 1% of the voting rights in the Company, or one or more shareholders holding at least 10% of the voting rights in
 the Company.

&nbsp;&nbsp;&nbsp;&nbsp;19.8. If
 the Board of Directors is asked to convene an Extraordinary Meeting, as stated above, it shall convene it within 21 days of receiving
 the applicable demand, to a date to be specified in the Extraordinary Meeting invitation, in accordance with the Companies Law.

19.9. If
 the Board of Directors fails to convene an Extraordinary Meeting in accordance with Article 19.7 above, the demanding party (and
 as for shareholders–including any number of them holding more than half their voting powers) may convene the meeting by themselves,
 as long as it takes place no later than three Months of the date of making the demand, and to the extent practicable, in the same
 manner in which the Board of Directors convenes meetings, all subject to mandatory timeline as determined by the Companies Law.

19.10. <u>Agenda of the Meeting</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.10.1. The
 agenda of any General Meeting will be set by the Board of Directors; and if an Extraordinary Meeting is convened upon demand as specified
 above, those matters specified by the Directors or Shareholders who demanded that the Extraordinary Meeting be convened shall be
 included in the agenda, provided that such matters are suitable (at the Board of Director's discretion), in accordance with
 the Companies Law and these Articles, to be included in the agenda of a General Meeting.

19.10.2. Only
 matters included on the agenda will be discussed at a General Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;19.11. The
 Company must notify its shareholders of a General Meeting on the dates scheduled in the applicable law by making public filings in
 accordance with applicable laws and Stock Exchange rules.

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| | |
|:---|:---|
| 19.12. | The notice of the general meeting must specify all details required under the law. |
| 19.13. | When convening a General Meeting, the Board of Directors may determine the manner of specifying the issues on the General Meeting's agenda that are to be submitted to the shareholders, all at the Board of Directors' discretion, subject to the Companies Law. |
| 19.14. | A flaw made in good faith in gathering or administering the General Meeting, including a flaw that follows from the nonperformance of a provision or term stated in the Companies Law or in these Articles, including on the matter of gathering or administering the General Meeting, will not invalidate any resolution passed at the General Meeting or be considered a defect in the proceedings, subject to the provisions of any applicable law. |
| 19.15. | Shareholder Proposal Request. |
|  | (a) Subject to any applicable law and stock exchange rules and regulations, any Shareholder or Shareholders of the Company holding at least the required percentage under the Companies Law of the voting rights of the Company which entitles such Shareholder(s) to require the Company to include a matter on the agenda of a General Meeting (the "**Proposing Shareholder(s)**") may request, subject to the Companies Law, that the Board of Directors include a matter on the agenda of a General Meeting to be held in the future, provided that the Board of Directors determines that the matter is appropriate to be considered at a General Meeting (a "**Proposal Request**"). In order for the Board of Directors to consider a Proposal Request and whether to include the matter stated therein in the agenda of a General Meeting, notice of the Proposal Request must be timely delivered in accordance with applicable law, and the Proposal Request must comply with the requirements of these Articles (including this Article 19.15) and any applicable law and stock exchange rules and regulations. The Proposal Request must be In Writing, signed by all of the Proposing Shareholder(s) making such request, delivered, either in person or by registered mail, postage prepaid, and received by the Secretary (or, in the absence thereof, by the CEO). To be considered timely, a Proposal Request must be received within the time periods prescribed by applicable law. The announcement of an adjournment or postponement of a General Meeting shall not commence a new time period (or extend any time period) for the delivery of a Proposal Request as described above. In addition to any information required to be included in accordance with applicable law, a Proposal Request must include the following: (i) the name, address, telephone number, fax number and email address of the Proposing Shareholder (or each Proposing Shareholder, as the case may be) and, if an Entity, the name(s) of the Person(s) that controls or manages such Entity; (ii) the number of Shares held by the Proposing Shareholder(s), directly or indirectly (and, if any of such Shares are held indirectly, an explanation of how they are held and by whom), which shall be in such number no less than as is required to qualify as a Proposing Shareholder, accompanied by evidence satisfactory to the Company of the record holding of such Shares by the Proposing Shareholder(s) as of the date of the Proposal Request; (iii) the matter requested to be included on the agenda of a General Meeting, all information related to such matter, the reason that such matter is proposed to be brought before the General Meeting, the complete text of the resolution that the Proposing Shareholder proposes to be voted upon at the General Meeting, and a representation that the Proposing Shareholder(s) intend to appear in person or by proxy at the meeting; (iv) a description of all arrangements or understandings between the Proposing Shareholders and any other Person(s) (naming such Person or Persons) in connection with the matter that is requested to be included on the agenda and a declaration signed by all Proposing Shareholder(s) of whether any of them has a personal interest in the matter and, if so, a description in reasonable detail of such personal interest; (v) a description of all Derivative Transactions (as defined below) by each Proposing Shareholder(s) during the previous twelve (12) Month period, including the date of the transactions and the class, series and number of securities involved in, and the material economic terms of, such Derivative Transactions; and (vi) a declaration that all of the information that is required under the Companies Law and any other applicable law and stock exchange rules and regulations to be provided to the Company in connection with such atter, if any, has been provided to the Company. The Board of Directors, may, in its discretion, to the extent it deems necessary, request that the Proposing Shareholder(s) provide additional information necessary so as to include a matter in the agenda of a General Meeting, as the Board of Directors may reasonably require. |

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| | |
|:---|:---|
|  | A "**Derivative Transaction**" means any agreement, arrangement, interest or understanding entered into by, or on behalf or for the benefit of, any Proposing Shareholder or any of its Affiliates or associates, whether of record or beneficial: (1) the value of which is derived in whole or in part from the value of any class or series of shares or other securities of the Company, (2) which otherwise provides any direct or indirect opportunity to gain or share in any gain derived from a change in the value of securities of the Company, (3) the effect or intent of which is to mitigate loss, manage risk or benefit of security value or price changes, or (4) which provides the right to vote or increase or decrease the voting power of, such Proposing Shareholder, or any of its Affiliates or associates, with respect to any Shares or other securities of the Company, which agreement, arrangement, interest or understanding may include, without limitation, any option, warrant, debt position, note, bond, convertible security, swap, stock appreciation right, short position, profit interest, hedge, right to dividends, voting agreement, performance-related fee or arrangement to borrow or lend Shares (whether or not subject to payment, settlement, exercise or conversion in any such class or series), and any proportionate interest of such Proposing Shareholder in the securities of the Company held by any general or limited partnership, or any limited liability company, of which such Proposing Shareholder is, directly or indirectly, a general partner or managing member. |
|  | (b) The information required pursuant to this Article shall be updated as of (i) the record date of the General Meeting, (ii) five business days before the General Meeting, and (iii) as of the General Meeting, and any adjournment or postponement thereof. |
|  | (c) The provisions of Articles 19.15(a) and 19.15(b) shall apply, mutatis mutandis, to any matter to be included on the agenda of an Extraordinary Meeting which is convened pursuant to a request of a Shareholder duly delivered to the Company in accordance with the Companies Law. |
| 19.16. | An amendment to Articles 19.1.8, 19.10.1, 19.15 or this Article 19.16 shall require a Special Majority. |
| 19.17. | The Company is not required to give notice of a General Meeting, subject to any mandatory provision of the Companies Law. |
| 19.18. | The accidental omission to give notice of a General Meeting to any shareholder, or the non-receipt of notice sent to such shareholder, shall not invalidate the proceedings at such meeting or any resolution adopted thereat. |

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20. <u>Proceedings at the General Meeting</u> 

&nbsp;&nbsp;&nbsp;&nbsp;20.1. Proceedings
 at the General Meeting may not begin unless a quorum is present at the beginning of the meeting start time. A quorum will form in
 the presence of one or more shareholders holding at least 25% of the voting powers in the Company, in person (including presence
 by voting instrument or a vote through the electronic voting system, according to the law) or by proxy, within thirty minutes of
 the scheduled meeting start time, unless otherwise stated in these Articles.

20.2. If
 no quorum is present at the General 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 General Meeting, or to
 another day, time, and place, as the Board of Directors determines in a notice to the shareholders.

20.3. A
 quorum will form at a deferred meeting in the presence of one or more shareholders holding 25% or more of the voting powers, within
 30 minutes of the scheduled meeting start time, in person (including by a voting instrument or voting on the electronic voting system,
 according to the law) or by proxy. If no quorum is present at the deferred meeting within 30 minutes of the scheduled deferred meeting
 start date, the meeting will be held regardless of the number of participants.

20.4. The
 Chairperson of the Board of Directors (or in their absence, any director the Board of Directors appoints for this purpose, or in
 their absence, the Company's CEO) will be the chairperson of any Company General Meeting. If there is no such chairperson or
 if the chairperson is not present at any particular meeting within 15 minutes of the scheduled meeting start time, or if they refuse
 to act as chairperson of the meeting, the directors may elect one of the present officers as chairperson of the meeting. If no other
 director or officer is present or if all present directors or officers refuse to act as chairperson of the meeting, one of the shareholders
 or a representative of such a shareholder will be elected as chairperson of the meeting. If no shareholder is physically present,
 as stated above, the voting instrument will be used to authorize a Company representative to act as chairperson of the meeting, as
 stated above.

&nbsp;&nbsp;&nbsp;&nbsp;20.5. The
 Company will keep minutes of the proceedings in the General Meeting, including the names of the participating shareholders, the numbers
 of Shares they hold, and details of the issues discussed at the general meeting, and the resolutions the meeting has passed.

20.6. The
 minutes, signed by the chairperson of the general meeting, are prima facie evidence of their content.

21. <u>Voting and Decision-Making at the General Meetings</u> 

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| | |
|:---|:---|
| 21.1. | A shareholder who wishes to vote at the General Meeting must prove their ownership of the share to the Company, under the Companies Law. Without detracting from the foregoing, the Board of Directors may set instructions and procedures for the purpose of proof of ownership of Company Shares. Among other things, a verified electronic message, under Section 44K5 of the Securities Law, concerning the electronic voting system user data, is considered a Confirmation of Ownership. |
| 21.2. | Any shareholder may vote at a General Meeting in person or by proxy, all in accordance with the provisions of these Articles, and subject to the Companies Law. The proxy does not have to be a Company shareholder. |
| 21.3. | Subject to any applicable law, any joint holder of a share may vote at any meeting, in person or by proxy due to that share, as though they had been the only eligible shareholder. If more than one joint shareholder participates at the meeting in person or by proxy, the shareholder listed first in the Shareholder Register or the Confirmation of Ownership or another document as the Board of Directors determines for this purpose will vote due to that share, as applicable. |
|  | Several guardians or estate administrators of a Registered Shareholder who passed away are considered joint holders of these Shares, for the purposes hereof. |
|  | Without detracting from the foregoing, if more than one shareholder is listed as the shareholder in the Company's Shareholder Register, the Company will consider the first Person appearing on the Register as the other Registered Shareholders' representative, unless the Company receives a document, signed by the majority of joint shareholders, or a court order, stating the name of another Registered Shareholder as the shareholders' representative. |
| 21.4. | Anyone who is eligible to a share may vote by the power of that share at any general meeting, as though they are the share's registered holder, as long as they prove their title to the share to the Board of Directors' satisfaction, in the manner determined in the Companies Law for that purpose. |
| 21.5. | <u>Deed of Appointment</u> |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.5.1. A
 Deed of Appointment must be made In Writing and signed by the appointing party, and if the appointing party is an Entity, the Deed
 of Appointment must be made In Writing and signed in a way that binds the Entity; the Board of Directors may demand that the Company
 receive written confirmation of the signatories' power to bind the Entity, before gathering the meeting, to the Board of Directors'
 satisfaction. The Board of Directors may also set instructions and proceedings in connection with this.

21.5.2. The
 Deed of Appointment or a suitable copy, to the Board of Directors' satisfaction, is to be deposited at the Registered Office
 or elsewhere, in Israel or outside it, as the Board of Directors may decide from time to time, in general or for a specific instance–at
 least 48 hours before the meeting or the deferred meeting start time, as applicable, in which the proxy intends to vote by the power
 of that Deed of Appointment. The foregoing notwithstanding, the chairperson of the meeting may accept such a Deed of Appointment
 even after that date, if they considered appropriate, at their discretion. If the Deed of Appointment is not accepted, as stated
 above in this Article, it will not be effective at that meeting.

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| | |
|:---|:---|
| 21.5.3. | A proxy may participate in the discussions at the General Meeting and be elected chairperson of the meeting, as the appointing shareholder would have been entitled to, unless stated otherwise in the deeds of appointment. |
| 21.5.4. | The Deed of Appointment must be made In Writing in a standard format acceptable to the Board of Directors. |
| 21.5.5. | The Deed of Appointment must state the General Meeting for which it is made. The foregoing notwithstanding, a shareholder may make a Deed of Appointment for a limited or an unlimited period. |
| 21.5.6. | The Deed of Appointment must state the number and class of Shares for which it has been made. If the Deed of Appointment does not state the number of Shares for which it is made or if the number of Shares it states is higher than the number of Shares registered to the shareholder's name or according to the Confirmation of Ownership, as applicable, the Deed of Appointment will be considered to have been made for all of the shareholder's Shares. |
| 21.5.7. | If the Deed of Appointment is made for a lower number of Shares than the number of Shares listed to the shareholder's name or stated in the Confirmation of Ownership, as applicable, the shareholder will be considered to have abstained from voting on its remaining Shares, and the Deed of Appointment will be in effect for the number of Shares listed in it. |
| 21.5.8. | Without detracting from the provisions on the appointment of a proxy, a shareholder who holds more than one share may appoint more than one proxy, as long as each Deed of Appointment states the number and class of Shares for which it is made. |
|  | If the total number of Shares of any class listed in the deeds of appointment made by a single shareholder exceeds the number of Shares of that class registered to that shareholder's name or stated in the Confirmation of Ownership, as applicable, all deeds of appointment made by that shareholder shall be void. |
| 21.5.9. | A vote made under a Deed of Appointment will be valid even if the appointing party has passed away or has been declared unfit or if the Deed of Appointment has been revoked or if the share for which it has been granted was transferred before the vote, unless the Office receives written notice, before the meeting, of the death, incapacity, revocation, or transfer, as applicable. The foregoing notwithstanding, the chairperson of the meeting may accept such a notice during the meeting, if they consider it appropriate, at their discretion. |
| 21.5.10. | The Deed of Appointment also applies to any deferred meeting of the meeting to which it refers, as long as it does not state otherwise. |

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&nbsp;&nbsp;&nbsp;&nbsp;21.6. <u>Voting Ballot</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.6.1. Shareholder
 may vote at the general meeting using a ballot or an electronic ballot, on all issues on the agenda of the general meeting, including
 issues that are not listed in Section 87 of the Companies Law.

21.6.2. A
 Shareholder may vote by way of a proxy card in accordance with the provisions of the Companies Law or any other applicable law, on
 the matters specified therein, and provided it is completed and returned to the Company in accordance with its terms.

21.6.3. A
 ballot the Company receives as stated in this Article on a particular issue on which the General Meeting did not hold a vote will
 be counted as an abstaining vote for the purpose of deciding to postpone the meeting, and it will be counted at the deferred meeting,
 according to the vote stated in it.

&nbsp;&nbsp;&nbsp;&nbsp;21.7. A
 shareholder or a proxy may vote by the power of some Shares they own or for which they are proxies, and otherwise over other Shares.

21.8. Each
 Ordinary Share entitles its holder to participate in Company general meetings, and to a single vote.

21.9. The
 decision that is up for a vote at the General Meeting will be decided by counting the votes; votes will be counted in the way the
 chairperson of the meeting decides.

21.10. The
 chairperson's declaration that the General Meeting voted for or against a resolution, unanimously or by a particular majority,
 and any comment made on this matter in the meeting minutes, is considered prima facie evidence of its contents, and there is no need
 to prove the number of votes or the proportion of votes for or against the proposed resolution.

21.11. Subject
 to the Companies Law, and unless expressly stated otherwise in these Articles, General Meeting resolutions are to be made by a Majority
 of votes. The chairperson of the meeting will not have a second or a tie-breaking vote. In the event of a tied vote, the proposed
 resolution the shareholders voted on will be considered to have been denied.

21.12. The
 chairperson of the General Meeting may postpone it or postpone the discussion or the decision on a particular meeting on the agenda,
 with the consent of the meeting, if a quorum is present, to another place and time, and they are required to do so at the meeting's
 demand. Only the issues appearing on the agenda on which no resolution has been made at the meeting that decided to postpone the
 meeting may be discussed at such a deferred meeting. If the General Meeting is postponed by more than 21 days, notice will be made
 of the deferred meeting, as stated above in Articles 19.11 and 19.12.

22. <u>The Board of Directors</u> 

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| | |
|:---|:---|
| 22.1. | The number of directors may be no less than 5 and no more than 10 (including external directors to the extent required to be appointed to the Board of Directors pursuant to the Companies Law, and independent directors). |
| 22.2. | (a) The directors (excluding external directors, to the extent external directors are required to be elected and to serve on the Board of Directors pursuant to the requirements of the Companies Law), shall be classified, with respect to the term for which they each severally hold office, into three classes, as nearly equal in number as practicable, hereby designated as Class I, Class II and Class III (each, a "**Class**"). The Board of Directors may assign members of the Board of Directors already in office to such classes at the time such classification becomes effective. |
|  | (i) The term of office of the initial Class I directors shall commence on the Annual General Meeting held in 2025 and shall expire at the Annual Meeting to be held in 2026 and when their successors are elected and qualified; |
|  | (ii) The term of office of the initial Class II directors shall commence on the Annual General Meeting held in 2025 and shall expire at the first Annual Meeting following the Annual Meeting referred to in clause (i) above and when their successors are elected and qualified; and |
|  | (iii) The term of office of the initial Class III directors shall commence on the Annual General Meeting held in 2025 and shall expire at the first Annual Meeting following the Annual Meeting referred to in clause (ii) above and when their successors are elected and qualified. |
|  | (b) At each Annual Meeting, commencing with the Annual Meeting to be held in 2026, each Nominee or Alternate Nominee (each as defined below) elected at such Annual Meeting to serve as a director in a Class whose term shall have expired at such Annual Meeting shall be elected to hold office until the third Annual Meeting next succeeding his or her election and until his or her respective successor shall have been elected and qualified. Notwithstanding anything to the contrary, each director shall serve until his or her successor is elected and qualified or until such earlier time as such director's office is vacated. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the number of directors (excluding external directors, if any were elected) that comprises the Board of Directors is hereafter changed by the Board of Directors, any newly created directorships or decrease in directorships shall be so apportioned by the Board of Directors among the Classes as to make all classes as nearly equal in number as is practicable, provided that no decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to every General Meeting of the Company at which directors are to be elected, and subject to clauses (a) and (g) of this Article 22, the Board of Directors (or a Committee thereof) shall select, by a resolution adopted by a majority of the Board of Directors (or such Committee), a number of persons to be proposed to the Shareholders for election as directors at such General Meeting (the "**Nominees**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Proposing Shareholder requesting to include on the agenda of an Annual Meeting a nomination of a Person to be proposed to the Shareholders for election as director (such person, an "**Alternate Nominee**"), may so request provided that it complies with this Article 22.2(e), Article 19.5 and any applicable law. Unless otherwise determined by the Board of Directors, a Proposal Request relating to an Alternate Nominee is deemed to be a matter that is appropriate to be considered only at an Annual Meeting. In addition to any information required to be included in accordance with applicable law, such a Proposal Request shall include information required pursuant to Article 19.15, and shall also set forth: (i) the name, address, telephone number, fax number and email address of the Alternate Nominee and all citizenships and residencies of the Alternate Nominee; (ii) a description of all arrangements, relations or understandings during the past three (3) Years, and any other material relationships, between the Proposing Shareholder(s) or any of its Affiliates and each Alternate Nominee; (iii) a declaration signed by the Alternate Nominee that he or she consents to be named in the Company's notices and proxy materials and on the Company's proxy card relating to the Annual Meeting, if provided or published, and that he or she, if elected, consents to serve on the Board of Directors and to be named in the Company's disclosures and filings; (iv) a declaration signed by each Alternate Nominee as required under the Companies Law and any other applicable law and stock exchange rules and regulations for the appointment of such an Alternate Nominee and an undertaking that all of the information that is required under law and stock exchange rules and regulations to be provided to the Company in connection with such an appointment has been provided (including, information in respect of the Alternate Nominee as would be provided in response to the applicable disclosure requirements under Form 20-F (or Form 10-K, if applicable) or any other applicable form prescribed by the U.S. Securities and Exchange Commission; (v) a declaration made by the Alternate Nominee of whether he or she meets the criteria for an independent director and, if applicable, external director of the Company under the Companies Law and/or under any applicable law, regulation or stock exchange rules, and if not, then an explanation of why not; and (vi) any other information required at the time of submission of the Proposal Request by applicable law, regulations or stock exchange rules. In addition, the Proposing Shareholder(s) and each Alternate Nominee shall promptly provide any other information reasonably requested by the Company, including a duly completed director and officer questionnaire, in such form as may be provided by the Company, with respect to each Alternate Nominee. The Board of Directors may refuse to acknowledge the nomination of any Person not made in compliance with the foregoing. The Company shall be entitled to publish any information provided by a Proposing Shareholder or Alternate Nominee pursuant to this Article 22.2(e) and Article 19.15, and the Proposing Shareholder and Alternate Nominee shall be responsible for the accuracy and completeness thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Nominees or Alternate Nominees shall be elected by a resolution adopted at the Annual Meeting at which they are subject to election. Notwithstanding Articles 22.2(a) and 22.2(b), in the event of a Contested Election (as defined below), the method of calculation of the votes and the manner in which the resolutions will be presented to the Annual Meeting shall be determined by the Board of Directors in its discretion. For the purposes of these Articles, election of directors at a General Meeting shall be considered a "**Contested Election**" if the aggregate number of Nominees and Alternate Nominees at such meeting exceeds the total number of directors to be elected at such meeting, with the determination thereof being made by the Secretary (or, in the absence thereof, by the CEO) as of the close of the applicable notice of nomination period under Article 19.15 or under applicable law, based on whether one or more notice(s) of nomination were timely filed in accordance with Article 19.15, this Article 22.2 and applicable law; provided, however, that the determination that an election is a Contested Election shall not be determinative as to the validity of any such notice of nomination; and provided, further, that, if, prior to the time the Company mails its initial proxy statement in connection with such election of directors, one or more notices of nomination of an Alternate Nominee are withdrawn such that the number of candidates for election as director no longer exceeds the number of directors to be elected, the election shall not be considered a Contested Election. Shareholders shall not be entitled to cumulative voting in the election of directors, except to the extent specifically set forth in this Article 22.2(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary in these Articles, the election, qualification, removal or dismissal of external directors, if need to be elected and to serve on the Board of Directors pursuant to the Companies Law, shall be only in accordance with the applicable provisions set forth in the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;22.3. Without
 derogating from Article 22.2, the term of office of a director shall commence as of the date of his or her appointment or election,
 or on a later date if so specified in his or her appointment or election.

22.4. The
 Board of Directors may at any time and from time to time appoint any Person as a director to fill a vacancy (whether such vacancy
 is due to a director no longer serving or due to the number of directors serving being less than the minimum number stated in Article
 22.1 hereof). In the event of one or more such vacancies in the Board of Directors, the continuing directors may continue to act
 in every matter, provided, however, that if the number of directors serving is less than the minimum number provided for pursuant
 to Article 22.1 hereof, they may only act in an emergency or to fill the office of directors which have become vacant up to the number
 required in order to reach a number of serving directors equal to the minimum number provided for pursuant to Article 22.1 hereof,
 or in order to call an Extraordinary Meeting of the Company for the purpose of electing directors to fill any or all vacancies up
 to the maximum 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, or in case of
 a vacancy due to the number of directors serving being less than the minimum number stated in Article 22.1 hereof, the Board of Directors
 shall determine at the time of appointment the Class pursuant to Article 22.2 to which the additional director shall be assigned.

22.5. A
 director's position will vacate automatically in each of these cases:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.5.1. If
 they resign or are dismissed;

22.5.2. If
 they are declared bankrupt, as long as they are not exempt;

22.5.3. If
 they are charged with an offense, as stated in Section 232 of the Companies Law;

22.5.4. In
 accordance with a court decision, as stated in Section 233 of the Companies Law;

22.5.5. If
 they are declared legally incapacitated;

22.5.6. If
 their term lawfully expires on its own;

22.5.7. If
 they pass away;

22.5.8. When
 giving notice of enforcement measures, as stated in Section 232A of the Companies Law;

22.5.9. When
 giving notice under Section 227A or Section 245A of the Companies Law;

&nbsp;&nbsp;&nbsp;&nbsp;22.6. Any
 director may resign by giving the Board of Directors, the Chairperson of the Board of Directors, or the Company, due notice, as required
 in the Companies Law, and the resignation will come into effect on the notice delivery date, unless the notice states a later date.
 The director must state the reasons for their resignation.

&nbsp;&nbsp;&nbsp;&nbsp;22.7. Subject
 to the Companies Law, the Company may compensate directors in consideration for their service, and for special services, as the general
 meeting may decide. Directors are also entitled to travel expenses reimbursement, daily sustenance expenses, and so on, in connection
 with their participation in Board of Directors meetings or the performance of their duties in their capacity as directors, as the
 general meeting may decide.

22.8. The
 above provisions do not prevent directors who are also Company employees or Company subsidiary employees from receiving wages and
 other benefits due to their employment, as long as such a director's terms of employment have been approved, under the Companies
 Law.

22.9. Notwithstanding
 anything to the contrary herein, Articles 22.1, 22.2, 22.4, 22.5 and this Article 22.9 may only be amended or replaced by a resolution
 adopted by the Special Majority.

22.10. <u>Alternate Director</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.10.1. Any
 director may appoint an alternate director. The foregoing notwithstanding, anyone who is not fit to be appointed as a director may
 not be appointed or serve as an alternate director, nor will an acting Company director or an acting alternate director.

22.10.2. An
 acting director may be appointed as an alternate to a member of a Board of Directors Committee if the candidate alternate director
 to the Committee member is not a member of the same Committee, and if they are an alternate director to an external director, the
 candidate must be an external director who is an expert on accounting or finance, or with professional qualifications, according
 to the replaced director's qualifications.

22.10.3. An
 alternate director is considered the same as the director they replace, and they may appear at Board of Directors and Board of Directors
 Committee meetings, participate, and vote in them, like the appointing director.

22.10.4. A
 director who has appointed an alternate director may revoke the appointment at any time, subject to any applicable law. An alternate
 director's position will vacate whenever the appointing director's position is vacated.

22.10.5. Alternate
 directors must be appointed or dismissed as stated above by written notice to the alternate director and to the Company, and the
 appointment will come into effect after the Deed of Appointment or deed of revocation comes into effect, as set forth above, or on
 the date stated in the Deed of Appointment or the deed of revocation, according to the latter, and if the term is not stated in the
 appointment notice, it will overlap with the appointing director's term.

22.10.6. Subject
 to the Companies Law, the Company may compensate the alternate director in exchange for their participation in Board of Directors
 meetings.

23. <u>Powers and Responsibilities of the Board of Directors</u> 

&nbsp;&nbsp;&nbsp;&nbsp;23.1. The
 Board of Directors holds all powers and authorities vested in it under these Articles, the Companies Law, and any other law.

23.2. Without
 detracting from the provisions of these Articles, the Board of Directors is to outline the Company policy and supervise the performance
 of the CEO's duties and actions, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.1. Establishing
 the Company's plans of action, the financing principles, and priorities;

23.2.2. Inspecting
 the Company's financial situation and setting the credit facility the Company may accept;

23.2.3. Determining
 the organizational structure and wage policy;

23.2.4. It
 may decide to issue a debenture series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2.5. Drafting
 and approving the financial statements, as stated in Section 171 of the Companies Law;

23.2.6. Reporting
 on the state of the Company's affairs and business outcomes to the general meeting, as stated in Section 173 of the Companies
 Law;

23.2.7. Appointing
 and dismissing the CEO;

23.2.8. Deciding
 on actions and transactions that require its approval in accordance with these Articles or with Sections 255 and 268 to 275 of the
 Companies Law;

23.2.9. At
 its choice, allotting Shares and securities that can be converted into Shares up to the limit of the Company's registered share
 capital;

23.2.10. At
 its choice, deciding to distribute dividends or bonus Shares, as applicable;

23.2.11. Determining
 the rights of signature in the Company;

23.2.12. Making
 purchase decisions, as "purchase" is defined in Section 1 of the Companies Law, from all Company shareholders, some of
 them, or any of them, at its discretion;

23.2.13. Stating
 its opinion on any special purchase offer, as stated in Section 329 of the Companies Law;

23.2.14. Set
 the minimum necessary number of directors that must have accounting or financing qualifications, as defined in Section 240 of the
 Companies Law, considering the Company's classification, size, operating volume, and the complexity of its operations, *among other things*, provided that the number is at least one.

The Board of Directors' powers pursuant to this Article may not be delegated to the CEO, except as set forth in the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;23.3. Any
 Company power that is not vested in another organ in the Companies Law or in these Articles is vested in the Board of Directors.

23.4. <u>Exercising the CEO's Powers</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.4.1. The
 Board of Directors may decide to assume some of the powers granted to the CEO, all for a particular purpose, or for a particular
 duration, that may not exceed the necessary duration under the circumstances.

23.4.2. Without
 detracting from the foregoing, the Board of Directors may instruct the CEO on how to act in a particular matter. If the CEO does
 not comply with the instructions, the Board of Directors may exercise the required authority, to perform the instructions in the
 CEO's place.

23.4.3. If
 the CEO cannot exercise their powers, the Board of Directors may exercise them in their place.

&nbsp;&nbsp;&nbsp;&nbsp;23.5. Subject
 to the Companies Law and to the provisions of these Articles, the Board of Directors may delegate powers to the CEO, to a Company
 officer, or to any other person. The Board of Directors may delegate powers for a particular purpose or for a particular duration,
 all at the Board of Directors' discretion.

24. <u>Board of Directors Committees</u> 

&nbsp;&nbsp;&nbsp;&nbsp;24.1. Subject
 to the Companies Law, the Board of Directors may, at its choice, establish committees with two members or more, appoint members from
 among the directors ()"**Board of Directors Committee** "), and delegate all or some of its powers to a Board of Directors
 Committee.

&nbsp;&nbsp;&nbsp;&nbsp;24.2. No
 non-directors may serve in a Board of Directors Committee that has been assigned some of the Board of Directors' powers. Non-directors
 may serve in Board of Directors Committees, in an advisory capacity.

24.3. The
 foregoing notwithstanding, the Board of Directors may not delegate powers to a Board of Directors Committee on the following subjects,
 though it may establish committees to make recommendations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.3.1. Setting
 the Company's general policy;

24.3.2. Making
 a distribution, unless this concerns a purchase of Company Shares according to the parameters the Board of Directors has set in advance;

24.3.3. Setting
 the Board of Directors' position on a matter that requires the general meeting's approval, or stating the Board of Directors'
 opinion on the profitability of a special purchase offer, as stated in Section 329 of the Companies Law;

24.3.4. Appointing
 directors;

24.3.5. Issuing
 or placing Shares or securities that can be converted into Shares or exercised as Shares, or of a debenture series, except a permissible
 delegation to a Board of Directors Committee;

24.3.6. Approving
 the financial statements;

24.3.7. Authorizing
 transactions and actions that require the Board of Directors' approval under Sections 255 and 268 to 275 of the Companies Law.

&nbsp;&nbsp;&nbsp;&nbsp;24.4. Any
 decision made or action taken by a Board of Directors Committee to which the Board of Directors delegated its powers is considered
 the same as a Board of Directors decision or action, unless the Board of Directors states otherwise expressly, for a particular purpose,
 or for a particular committee. From time to time, the Board of Directors may expand, reduce, or revoke the powers delegated to a
 Board of Directors Committee, though such a revocation or a reduction of powers does not detract from the force of a Committee decision
 that the Company has acted on toward any other Person who did not know about the revocation.

24.5. <u>Board of Directors Committee Meetings</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.5.1. Subject
 to the Companies Law, the quorum for starting a Board of Directors Committee meeting is two committee members who are serving as
 of the time of the meeting or their alternates, unless the Board of Directors states otherwise.

24.5.2. The
 provisions of these Articles regarding Board of Directors actions apply to Board of Directors Committees, *mutatis mutandis*,
 as long as no Board of Directors instructions replace them for this purpose, all subject to the Companies Law.

24.5.3. Any
 Board of Directors Committee must give the Board of Directors regular reports of its decisions or recommendations.

25. <u>Board of Directors Actions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;25.1. Subject
 to the provisions of these Articles, the Board of Directors may convene to perform its duties and postpone its meetings and regulate
 its actions and discussions as it considers desirable.

25.2. The
 Board of Directors will appoint one member to serve as the Chairperson of the Board of Directors, and it may also dismiss the Chairperson
 of the Board of Directors and appoint another Person in their place. The Board of Directors may appoint one or more directors as
 Deputy Chairperson of the Board of Directors, who will serve in the Chairperson's place in their absence. The Board of Directors
 may set the duration of the Chairperson's and the Deputy Chairperson's service. If no such duration is determined, the
 Chairperson and the Deputies will act as long as they serve as directors, and as long as the Board of Directors does not resolve
 to replace them.

&nbsp;&nbsp;&nbsp;&nbsp;25.3. The
 Chairperson of the Board of Directors will preside over and administer the Board of Directors meeting. If the Chairperson of the
 Board of Directors is absent from a Board of Directors meeting according to an advance notice, or if they do not appear at the meeting
 within 15 minutes of the scheduled start time, the Deputy Chairperson of the Board of Directors will preside over the meeting, if
 such a deputy has been appointed. If both the Chairperson of the Board of Directors and their deputy are absent from the meeting,
 the present directors will elect one of them as chairperson of the meeting.

25.4. The
 Board of Directors will gather according to the Company's needs, and at least once every three Months.

25.5. The
 Chairperson of the Board of Directors may gather the Board of Directors at any time, and set the place and time of the Board of Directors
 meeting.

25.6. Without
 detracting from the foregoing, the Chairperson of the Board of Directors must gather the Board of Directors at the occurrence of
 one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.6.1. At
 least two directors require that the Board of Directors gather to discuss the matter stated in their demand, and if the Company has
 the minimum number of directors or fewer, as stated in Article 22.1 of these Articles, or if that stated in Section 257 of the Companies
 Law is true, a demand by at least one director, to gather the Board of Directors to discuss the issues stated in the demand will
 suffice;

25.6.2. Receiving
 a notice or a report by the CEO that require action on the Board of Directors' part;

25.6.3. Receiving
 the Auditor's notice of material defects in the Company's accounting control.

Upon receiving such a notice or report, the Chairperson of the Board of Directors will gather the Board of Directors without delay and no later than 14 days of the demand, notice, or report, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;25.7. All
 directors must receive a notice of the Board of Directors gathering a reasonable time before the meeting date. Alternate directors
 are not entitled to receive notice of Board of Directors meetings.

25.8. The
 foregoing notwithstanding, the Board of Directors may gather in urgent cases and with the majority of directors' consent, without
 notice.

25.9. The
 Chairperson of the Board of Directors will set the Board of Directors meetings' agenda, and the agenda will include the issues
 set by the Chairperson of the Board of Directors, and any other issue any director or the CEO has asked the Chairperson of the Board
 of Directors to include on the agenda a reasonable time before gathering the Board of Directors meeting.

25.10. The
 notice of gathering the Board of Directors must state the time and place of the meeting and a reasonably detailed description of
 the matters to be discussed therein, according to the agenda. The notice may be made orally or In Writing.

25.11. Any
 written notice of the Board of Directors meeting must be made to directors at the address they give the Company in advance, unless
 they ask or agree to receive notices elsewhere.

25.12. The
 quorum for starting a Board of Directors meeting will be a majority of acting directors as of the meeting, who are eligible to participate
 in it, or their alternates who are not precluded by law from participating in Board of Directors meetings, but no fewer than two
 directors. If no quorum is present within thirty minutes of the scheduled Board of Directors meeting start time, the meeting will
 be postponed by three days or to a later time. If no quorum is present at such a deferred meeting within 30 minutes of gathering,
 the present directors who may vote will form a quorum.

&nbsp;&nbsp;&nbsp;&nbsp;25.13. Each
 director will have one vote. Board of Directors decisions will be made by the majority of votes of directors who are present at the
 meeting and vote, not including abstaining votes. The Chairperson of the Board of Directors will not have the tie-breaking vote in
 the event of a tie.

25.14. In
 the event of a tie, the decision on which the directors voted will be considered to have been rejected.

25.15. The
 Board of Directors may hold meetings using any media as long as all participating directors can hear one another simultaneously.
 The Board of Directors may set the manner and methods of administering a meeting via conference.

25.16. The
 Board of Directors may make decisions without gathering and practice, as long as all directors who are eligible to participate in
 the discussion and vote on the matter submitted to them agree not to gather to discuss this matter. A decision made this way is valid
 for all intents and purposes, as though it had been made in a duly gathered and administered Board of Directors meeting.

26. <u>Minutes</u> 

&nbsp;&nbsp;&nbsp;&nbsp;26.1. The
 Board of Directors will make sure to keep minutes of the proceedings in Board of Directors meetings. All minutes must include the
 names of the participating directors and anyone else who was present at the meeting, and a description of the matters that were discussed
 and the decisions that were made at the meeting.

26.2. The
 Chairperson of the Board of Directors or the chairperson of the meeting must sign all minutes, as applicable; such authorized, signed
 minutes are considered prima facie evidence of their content.

26.3. This
 Article ‎26 also applies to all Board of Directors Committee meetings and to Board of Directors decisions that were passed without
 gathering.

27. <u>The CEO</u> 

&nbsp;&nbsp;&nbsp;&nbsp;27.1. From
 time to time, the Board of Directors will appoint the Company's CEO; it may appoint more than one CEO. The Board of Directors
 may also dismiss the CEO or replace them, as it considers appropriate.

27.2. The
 CEO does not have to be a Company shareholder or a director.

27.3. The
 CEO is responsible for the management of the Company's regular affairs, in accordance with the policy set by the Board of Directors,
 and subject to the Board of Directors' instructions.

27.4. The
 CEO holds all executive and administrative powers not vested in another Company organ in the Companies Law or in these Articles or
 under them, except for such authorities to be assigned from the CEO to the Board of Directors according to Article 23.4.1 above,
 if any; the CEO is accountable to the Board of Directors.

27.5. Subject
 to the Companies Law and these Articles, the Board of Directors may at times give and grant the CEO the Board of Directors'
 powers under these Articles, as it considers desirable, and it may also delegate its powers for a duration, for the purposes, at
 the terms, and subject to the limitations it finds suitable, and the Board of Directors may also grant the CEO ger these powers without
 waiving them, or instead of them, wholly or partly, and from time to time, it may revoke, deny, and alter these powers, or some of
 them.

27.6. Without
 detracting from that stated in Article 31 of these Articles, the CEO may delegate their powers to one or more Person who are subordinate
 to them, with the Board of Directors' permission; the Board of Directors' permission may be given in general or for a
 particular purpose.

27.7. Without
 detracting from the Companies Law and any other law, the CEO will report to the Board of Directors on the subjects, at the times,
 and in the scope the Board of Directors determines, in a specific decision, or according to the Board of Directors procedures.

27.8. The
 Board of Directors will set the terms of the CEO's service, subject to the Companies Law. The CEO may receive their wages as
 a salary or brokerage fees or a share in the profits or by granting securities or a right to buy securities or in any other way.

28. <u>The Validity of Actions and Transaction Authorization</u> 

&nbsp;&nbsp;&nbsp;&nbsp;28.1. Subject
 to the provisions of any applicable law, any action the Board of Directors, a Board of Directors Committee, or any Person in their
 capacity as a director or as a member of a Board of Directors Committee, or an officer, may perform, as applicable–is valid,
 even if it later turns out that there was a defect in the appointment of the Board of Directors, the Board of Directors Committee,
 the director, the committee member, or the officer, as applicable, or that any of the above officers were disqualified from serving
 as such.

28.2. Subject
 to the Companies Law, if an officer is a Company shareholder or an interested party or an officer in any other Entity, including
 an Entity that the Company is interested in or that is a Company shareholder, this will not disqualify the officer from being a Company
 officer. No Company officer will be disqualified because they, or any such Entity, are party to a contract with the Company, on any
 matter, and in any way.

28.3. Subject
 to the Companies Law, a person's status as a Company officer will not disqualify that person, their relative, or any other
 Entity that they are interested in, from entering into transactions with the Company that the officer has any personal stake in.

28.4. Subject
 to the Companies Law, an officer may participate and vote in discussions on the approval of transactions or actions they have a personal
 interest in.

28.5. Subject
 to the Companies Law, a general notice by a Company officer or the Company's controlling shareholder of a personal interest
 in any Entity, made to the Board of Directors, with a description of the personal interest, is considered disclosure of such an officer's
 or controlling shareholder's personal interest to the Company, for the purpose of any engagement with such an Entity, or an
 engagement that such an Entity has a personal interest in.

29. <u>Signature on Behalf of the Company</u> 

&nbsp;&nbsp;&nbsp;&nbsp;29.1. Subject
 to the Companies Law and to the provisions of these Articles, the Board of Directors may authorize any Person to act and sign on
 behalf of the Company, alone or with another, in general, or for particular purposes.

29.2. The
 Company will have a stamp bearing its name. No signature on any document will bind the Company unless those authorized to sign on
 its behalf sign it with the Company's stamp or name in print.

30. <u>Appointment of Representatives</u> 

&nbsp;&nbsp;&nbsp;&nbsp;30.1. Subject
 to the Companies Law, the Board of Directors may authorize any Person as the Company's representative, for such purposes, and
 with such authorities and discretions, for a period, and subject to such terms, as the Board of Directors considers suitable, at
 any time.

30.2. Subject
 to the Companies Law, the Board of Directors may authorize such a Person to assign all or some powers, authorizations, and discretions
 granted to them, among other things.

31. <u>Exemption, Indemnification, and Insurance</u> 

&nbsp;&nbsp;&nbsp;&nbsp;31.1. <u>Exemption</u> 

Subject to the Companies Law, the Company may, at the maximum permissible in the law, exempt an officer from all or some of their liability, in advance or in retrospect, due to damage of any kind caused to them or that may be caused to them, directly or indirectly, if it was or is caused following a violation of the duty of care toward the Company, including for any decision, failure to decide, or any derivative of the above, and due to any other incident, cause, liability, expense, or damage, if it is permissible to grant an exemption due to them pursuant to the Companies Law at the relevant time for approving the exemption, except in the event of a violation of the duty of care toward the Company within a distribution.

The foregoing also applies to a Company officer's exemption in connection with their role as an officer in a subsidiary or position holder in a subsidiary or in any other company that the Company has a share in, directly or indirectly, or that the Company is otherwise interested in ("**Other Company**").

&nbsp;&nbsp;&nbsp;&nbsp;31.2. <u>Insurance</u> 

Subject to any applicable law, the Company may enter into contract to cover any Company officer's liability, as imposed on them following an action they perform in their capacity as a Company officer, to the maximum extent permitted in the law, due to each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.2.1. A
 violation of the duty of care toward the Company or toward another person;

31.2.2. A
 violation of the fiduciary duty toward the Company, as long as the officer acted in good faith and had reasonable grounds for assuming
 the action will not harm the Company's best interest;

31.2.3. A
 monetary liability imposed on them for the benefit of another person;

31.2.4. Expenses
 the officer spent or has been charged with in connection with an Administrative Enforcement Proceeding they were subject to, including
 reasonable litigation expenses, such as an attorney's fee;

31.2.5. A
 payment imposed on the officer for the benefit of an injured party, as stated in Section 52.BBB(A)(1)(A) of the Securities Law ()"**Payment to an Injured Party** ").

31.2.6. Any
 other Company officer liability, undertaking, or expense that may be lawfully insured now or in the future.

&nbsp;&nbsp;&nbsp;&nbsp;31.3. <u>Indemnification</u> 

Subject to any applicable law, the Company may indemnify an officer therein due to a liability or an expense imposed on them or that they have spent following an action performed in their capacity as a Company officer, to the maximum amount permitted under any applicable law, and as stated below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.3.1. A
 monetary liability imposed on them for the benefit of another Person according to a judgment, including a judgment in a settlement
 or an arbitration award that a court has ratified;

31.3.2. Reasonable
 litigation expenses, including an attorney's fee, that officer has spent because of an investigation or proceeding administered
 against them by an authority that is authorized to administer an investigation or a proceeding, that concluded without a criminal
 charge lodged against them, and without imposing a monetary sanction on them in lieu of a criminal proceeding, or that has concluded
 without submitting a criminal charge, but by imposing a monetary sanction in lieu of a criminal proceeding, in an offense that does
 not require proof of mens rea or in connection with a monetary sanction. In this Article: (1) "conclusion without submitting
 a criminal charge in a matter in which a criminal investigation has been launched"; and (2) "a monetary sanction in lieu
 of a criminal proceeding" are as defined in Section 260 (A)(1A) of the Companies Law;

31.3.3. Reasonable
 litigation expenses, including an attorney's fee, the officer spent or was charged with by a court, in a proceeding lodged
 against the officer by the Company or on its behalf or by another person, or in a criminal charge the officer was acquitted from,
 or in a criminal offense it was charged with, that does not require proof of mens rea;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.3.4. Expenses
 the officer has spent or has been charged with in connection with an Administrative Enforcement Proceeding they were subject to,
 including reasonable litigation expenses, such as an attorney's fee, to the extent permitted under the law.

31.3.5. Any
 Payment to an Injured Party, including reasonable litigation expenses, such as an attorney's fee.

31.3.6. Any
 liability, undertaking, or other expense for which it is or will be permissible to indemnify Company officers.

&nbsp;&nbsp;&nbsp;&nbsp;31.4. <u>Advance Indemnification</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.4.1. The
 Company may give an advanced undertaking to indemnify an officer due to a liability or an expense, as stated in Article 31.3 hereof,
 as long as the advance undertaking to indemnify due to a liability, as stated in Article 31.3.1 above, is limited to events the Board
 of Directors considers predictable given the Company's activity in practice when making the undertaking to indemnify, and to
 an amount or according to a criterion that Board of Directors has found reasonable under the circumstances, and that the undertaking
 to indemnify states the events the Board of Directors considers foreseeable, given the Company's activity in practice when
 making the undertaking, and the amount or the criteria the Board of Directors has found reasonable under the circumstances.

31.4.2. The
 total, aggregate indemnification amount the Company will bear according to the advanced undertaking to indemnify due to such liability,
 as stated above in Article 31.3.1 (along with the amounts to be received from an insurance company, if any, under an officer liability
 insurance policy the Company has acquired) for all Company officers, shall be determined under the Company's compensation policy.

&nbsp;&nbsp;&nbsp;&nbsp;31.5. <u>Retroactive Indemnification</u> 

Subject to the Companies Law, the Company may indemnify any officer after the fact, for a liability or expense, as stated in Articles 31.3.1 to 31.3.6 above, including with regards to an indemnification for a liability as stated in Article 31.3.1, without applying the restrictions stated in Article 31.4 above.

&nbsp;&nbsp;&nbsp;&nbsp;31.6. <u>Prohibition on Insurance and Indemnification</u> 

According to the Companies Law, and as long as the Companies Law does not allow otherwise, the Company may not enter into contract to cover the liability of an officer therein, and may not indemnify or exempt any of its officers from their liability toward the Company due to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.6.1. A
 violation of the fiduciary duty, except for the purpose of indemnification and insurance due to a violation of the fiduciary duty
 toward the Company, if the officer has acted in good faith, and had reasonable grounds for assuming the action will not harm the
 Company's best interests;

31.6.2. A
 deliberate or reckless violation of the duty of care, unless it has been made out of negligence;

31.6.3. An
 action with the intent of unlawfully making a personal gain;

31.6.4. A
 fine, as civil fine, a monetary sanction, or a monetary settlement in lieu of a criminal proceeding imposed on them;

31.6.5. Directly
 or indirectly insuring a proceeding under Chapter H3 (Imposition of a Monetary Sanction by the Authority), Chapter H4 (Imposition
 of Administrative Enforcement measures by an Enforcement Committee), or Chapter I1 (Arrangement for a Conditional Avoidance from
 Launching Proceedings or Terminate Proceedings) of the Securities Law.

If the Companies Law or any other relevant law is amended so that it is possible to enter into an insurance contract, to exempt from liability, or to indemnify in connection with any of the above provisions, these Articles will be considered to have been amended automatically (with no need for any other action or resolution), as though they incorporate any such change, to the maximum extent permitted by the law.

&nbsp;&nbsp;&nbsp;&nbsp;31.7. The
 above provisions on exemption, indemnification, and insurance, are not intended to, nor will they, limit the Company in any way in
 granting any exemption or in entering into an insurance or an indemnification contract or prevent it from exempting, insuring, or
 indemnifying:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.7.1. Non-Company
 officers, including Company employees, contractors, or consultants, who are not officers, if the Company may do so subject to the
 provisions of any applicable law;

31.7.2. Officers
 or other functionaries in subsidiaries or other companies;

31.7.3. Officers,
 if this is not prohibited under the law, or if it is permitted in the future.

&nbsp;&nbsp;&nbsp;&nbsp;31.8. Note
 that in this Article 31, any such exemption, indemnification, or insurance undertaking to the benefit of an officer may also be in
 effect after that officer no longer is a Company officer.

31.9. As
 set forth above, the Company may indemnify, insure, and exempt any officer from liability, at the maximum extent permitted under
 applicable law. Accordingly: (1) Any amendment to the Companies Law, the Securities Law, to the Economic Competition Law, or any
 other relevant law that extends the Company's ability to indemnify, insure, or exempt any officer from liability, or that expands
 any officer's right to be indemnified, insured, or exempt from liability, beyond or in addition to the provisions of these
 Articles, will apply to the maximum permissible extent, automatically and effective immediately, to all Company officers, and will
 be considered to have been incorporated into these Articles to the greatest extent permitted by the law; (2) Any amendment to the
 Companies Law, to the Securities Law, to the Economic Competition Law, or to any other law, that diminishes the Company's ability
 to indemnify, insure, or exempt any officer from liability, or that prejudices any officer's right to such an indemnification,
 insurance, or exemption from liability, as set forth herein, may not be effective after the fact, and will not affect undertakings
 or the Company's ability to indemnify, insure, or to exempt any officer from liability due to any act (or omission) made before
 such an amendment has been made, unless stipulated otherwise in applicable law, and to the extent stipulated. If the law stipulates
 that the provision's effect is conditioned upon the inclusion of a provision allowing the indemnification, insurance, or exemption
 from liability in such cases in the Company's Articles, this provision is considered to have been incorporated into these Articles
 (including, and without detracting from the generality of the foregoing, as stated in Section 56H of the Securities Law, and in Section
 50P of the Economic Competition Law, as stated from time to time). For the sake of proper order, the provisions of this Article do
 not apply to changing the maximum indemnification amount stated in Article 31.4.2 above, that will not be updated automatically.

32. <u>Dividends, Funds, and Capitalization of Funds and Profits</u> 

&nbsp;&nbsp;&nbsp;&nbsp;32.1. Before
 deciding to distribute a dividend, the Board of Directors may set aside amounts out of the profits, at its decision, into a general
 fund, or into a dividend distribution reserve fund, to distribute bonus Shares, or for any other purpose, at the Board of Directors'
 discretion. At the Board of Directors' discretion, Company profits that the Board of Directors has decided not to distribute
 as dividends will be carried over to the Year after.

32.2. Until
 such funds are used, the Board of Directors may invest the funds it has set aside in this way, and the money in the funds in any
 investment, as it considers desirable, handle these investments, vary them, or otherwise use them, and it may divide the reserve
 fund into special funds, and use any fund or part thereof for the benefit of the Company's business, without keeping it separate
 from the Company's remaining assets, all at the Board of Directors' discretion, at the terms it may set.

&nbsp;&nbsp;&nbsp;&nbsp;32.3. Subject
 to the Companies Law, the Board of Directors may decide to distribute a dividend. If the Board of Directors decides to distribute
 a dividend, it may decide to pay it, entirely or partly, in cash, or through a distribution in kind, including by distributing securities,
 or in any other way, at its discretion.

32.4. Subject
 to the Companies Law, the Board of Directors may decide to issue bonus Shares, and convert some of the Company's profits, as
 defined in Section 302(B) of the Companies Law, into share capital, out of the premium on Shares or out of any other source of Company
 equity, as stated in the Company's most recent financial statements, at an amount that the Board of Directors will determine,
 that may be no less than the bonus Shares' par value.

32.5. The
 bonus Shares to be allotted according to this Article will be considered to have been fully paid up.

32.6. Subject
 to the rights attached to classes of Shares the Company might issue under these Articles, shareholders will receive dividends or
 bonus Shares in proportion to the par value of each share, regardless of any premium paid on it.

32.7. To
 execute the decision to distribute a dividend or issue bonus Shares, the Board of Directors may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.7.1. Settle
 any difficulty that may arise in connection with this as it sees fit to, and take any measure it considers necessary to overcome
 this difficulty;

32.7.2. Decide
 that fractions or fractions whose amount is lower than a particular amount the Board of Directors will set will not be counted for
 the purpose of adjusting the shareholders' eligibility, or to sell fractions of Shares and to pay the net consideration to
 the entitled shareholders;

32.7.3. Authorize
 anyone to sign any document or other document as required to effect the issue or distribution on behalf of the shareholders, and
 in particular, to sign and submit such a written document as stated in Section 291 of the Companies Law for registration;

32.7.4. Set
 the value of particular assets to be distributed and decide that cash payments made to shareholders will be made according to the
 set value;

32.7.5. Vest
 cash or particular assets to trustees for the benefit of those entitled to them, as the Board of Directors will find beneficial;

32.7.6. Make
 any other arrangement, as Board of Directors might consider necessary, to facilitate the issue or the distribution, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;32.8. Dividends
 or other benefits due to Shares will not bear interest or linkage differentials.

32.9. The
 Board of Directors may withhold any dividend or bonus share or any other benefits on a share, if the consideration for such a share
 has not been paid to the Company, in whole or in part, and collect any such amount or consideration received from the sale of all
 bonus Shares or other benefits on account of the debts or liabilities due to such a share, whether this share is owned solely by
 the indebted shareholder or jointly with other shareholders.

32.10. The
 Board of Directors may withhold any dividend or bonus share or other benefit due to a share that any Person may be registered as
 the holder of in the Register or has a right to transfer, until this Person is registered as that share's holder or until it
 lawfully transfers it, as applicable.

32.11. From
 time to time, the Board of Directors may determine the dividend payment methods or bonus share issue methods, or the way they will
 be transferred to the eligible parties, and the instructions, procedures, and arrangements in connection with this, both for Registered
 Shareholders and Non-Registered Shareholders. Without detracting from the generality of the foregoing, the Board of Directors may
 determine as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.11.1. Dividends
 or funds to be distributed to Registered Shareholders will be paid to the Registered Shareholders by a check sent by mail to their
 address, as it appears in the Shareholder Register; or, if the Shares are held by joint shareholders, to the name of the shareholder
 whose name appears first in the Shareholder Register with regard to the jointly held Shares. All such checks will be sent at the
 Registered Shareholder's risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.11.2. Dividends
 for a lower amount than a specific amount the Board of Directors will set will not be paid by check, as stated above, and will be
 subject to the provisions of Sub-Article 33.11.3 below.

32.11.3. Dividends
 or funds distributed to Registered Shareholders will be paid at the Office or elsewhere, at the Board of Directors' choice.

32.11.4. A
 dividend that is distributed to Non-Registered Shareholders will be transferred to them through the nominee company or in any other
 method the Board of Directors might choose.

&nbsp;&nbsp;&nbsp;&nbsp;32.12. If
 two or more people are registered as joint shareholders in the Register, either may issue a valid receipt due to any dividend, share,
 or other security, or other funds or benefits they are entitled to due to the share.

33. <u>Company Documents</u> 

&nbsp;&nbsp;&nbsp;&nbsp;33.1. Shareholders
 have a right of review of Company documents as stated in Section 184 of the Companies Law, upon fulfillment of the conditions the
 law sets for this purpose.

33.2. Shareholders
 have no right of review of Company documents or any Company document, unless such right has been granted to them under the law or
 in these Articles, or if the Board of Directors authorized them to review Company documents.

33.3. Subject
 to the provisions of any applicable law, the Company will keep any book, register, or ledger the law or these Articles require it
 to keep, using the means, technical and otherwise, the Board of Directors chooses.

34. <u>Internal Auditor</u> 

&nbsp;&nbsp;&nbsp;&nbsp;34.1. The
 Board of Directors will appoint the Company's Internal Auditor, in accordance with the Audit Committee's proposal.

34.2. The
 Internal Auditor will be accountable to the Chairperson of the Board of Directors, unless the Board of Directors decides otherwise.

34.3. The
 Internal Auditor will submit the annual work plan proposals to the Board of Directors or to the Audit Committee for approval, as
 the Board of Directors will determine.

35. <u>Auditor</u> 

&nbsp;&nbsp;&nbsp;&nbsp;35.1. The
 Auditor or Auditors will be appointed in each annual meeting, and will serve as such until the end of the following annual meeting.

35.2. Once
 the Auditor is appointed, the Board of Directors will set their fees for auditing, at the Board of Directors' discretion, after
 hearing the Audit Committee's recommendations, to be submitted to the Board of Directors a reasonable time in advance.

35.3. The
 Board of Directors will set the Auditor's fees for other services to the Company, along with the auditing services, at its
 discretion, after hearing the Audit Committee's recommendations.

36. <u>Notices</u> 

&nbsp;&nbsp;&nbsp;&nbsp;36.1. Notices
 and documents will be submitted to the shareholders and to any nominee company, according to the Companies Law or the provisions
 of these Articles in one of the ways mentioned below in this Article 36.

36.2. Notices
 of the general meeting will be made as stated in Article 19.11 of these Articles.

36.3. Without
 detracting from the foregoing, the Company may deliver notices or documents to shareholders by hand delivery or by fax or by mail
 or by email; mail will be delivered at the shareholder's address according to the Register, and if there is no such address,
 according to the mailing address they gave the Company for receiving notices. Any notice sent by fax will be sent to the shareholder
 according to the fax number they give the Company. Any notice sent by email will be sent to the shareholder at the email address
 they give the Company.

36.4. Any
 notice or document that are hand-delivered to a shareholder will be considered to have been delivered upon delivery.

36.5. Any
 notice or document sent by mail will be considered to have been duly delivered if they are delivered at the post office bearing the
 right address, and duly stamped. Delivery will be considered to have been made three days after the date the letter containing such
 a notice is posted.

36.6. A
 notice sent by fax or email will be considered to have been made 24 hours after being sent.

36.7. Without
 detracting from the foregoing, the Company may give shareholders notice by publishing the notice on the Company website once, or
 in at least two Hebrew daily newspaper with a wide circulation. This publication may be made in addition to or instead of giving
 notice, as stated in Articles 36.6 and 36.7. The date of publication on the website or on the newspaper will be considered the date
 the shareholders received the notice.

36.8. The
 Company may give notice of delivery of a document at the Office or elsewhere, as the Board of Directors determines, or otherwise,
 including using the Internet.

36.9. The
 Company may submit notices or documents to the joint shareholders by sending them to the shareholder listed first in the Shareholder
 Register, with regard to the relevant share.

36.10. Any
 Person who becomes legally entitled to a share under the law, by a transfer, or otherwise, is bound by any notice on that share that
 is made lawfully to the Person from whom their right to the share follows before their details are entered into the Register.

36.11. Any
 document or notice made to a Company shareholder according to the provisions of these Articles will be considered to have been duly
 delivered despite that shareholder's death, bankruptcy, or dissolution, or the assignment of the right to the Shares under
 the law (regardless of the Company's knowledge of this or lack thereof), as long as no other party is registered as the shareholder
 in their place, and as such a delivery or submission are considered adequate, for all intents and purposes, for any Person who has
 a stake in these Shares or who is entitled to them pursuant to the assignment of the right under the law, jointly with such a shareholder,
 or in their place.

36.12. Subject
 to the provisions of any applicable law, any shareholder, director, or other Person who has a right to receive notice pursuant to
 these Articles or the Companies Law, may waive the notice in advance or in retrospect, for a particular case or in general, and once
 they have done so, they will be considered to have been duly notified, and any proceeding or action of which notice ought to have
 been made will be considered valid and effective.

36.13. A
 written confirmation, signed by a Company director or by the Secretary, that a document has been sent or that notice has been made
 in any of the methods set forth in these Articles is considered conclusive proof of its content.

36.14. If
 notice must be made several days in advance, or if a notice is in effect for a particular period, the date of submission will count
 among the days or as part of that period, unless stated otherwise. If notice has been made in one of the above methods, it will be
 considered to have been at the earliest possible day in which it can be considered to have been made, as stated above.

36.15. An
 accidental failure to give a shareholder notice of a meeting, or a shareholder's failure to receive such a notice, will not
 detract from the validity of any resolution made at such a meeting.

37. <u>Merger</u> 

A merger according to Chapter One of Part Eight of the Companies Law will be approved by a Majority at the General Meeting or class meeting, as applicable, subject to the provisions of any applicable law.

38. <u>Dissolution</u> 

Subject to the provisions of any applicable law, the liquidator may distributed the surplus assets between shareholders, in a voluntary dissolution or otherwise, at the general meeting's decision by an ordinary majority of votes, in kind, in whole or in part, and at the general meeting's decision by an ordinary majority of votes, the liquidator may also deposit any part of the surplus assets with trustees, who will hold in trust for the benefit of shareholders, as the liquidator will consider desirable. To distribute the surplus assets in kind, the liquidator may establish the proper value of the distributable assets.

39. <u>Miscellaneous</u> 

&nbsp;&nbsp;&nbsp;&nbsp;39.1. Subject
 to the Companies Law and these Articles, a transaction between the Company and an Office Holder, and a transaction between the Company
 and another Entity in which an Office Holder of the Company has a personal interest, in each case, which is not an Extraordinary
 Transaction (as defined by the Companies Law), shall require only approval by the Board of Directors or a Committee of the Board
 of Directors. Such authorization, as well as the actual approval, may be for a particular transaction or more generally for specific
 type of transactions.

39.2. Fees.
 The Company may pay a fee (including underwriting fees) to any Person in consideration for underwriting, marketing, or distributing
 Company securities, with or without condition, as the Board of Directors may determine. Payments according to this section may be
 paid in cash or in Company securities, or any combination of the above.

39.3. No
 preemptive. The Company's shareholders will not have a preemptive, a preferred right, or any other right to buy Company securities.
 At the Board of Directors' exclusive discretion, it may offer Company securities to its current shareholders, or some of them,
 first.

40. <u>Amendment</u>.
 Any amendment of these Articles shall require, in addition to the approval of the General Meeting of shareholders in accordance with
 these Articles, also the approval of the Board of Directors with the affirmative vote of a majority of the then serving directors.

41. <u>Forum for Adjudication of Disputes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;41.1. Unless
 the Company consents In Writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action
 or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director,
 officer or other employee of the Company to the Company or the Company's shareholders, or (iii) any action asserting a claim
 arising pursuant to any provision of the Companies Law or the Securities Law, shall be the Tel Aviv District Court (Economic Division
 in the State of Israel (or, if the Tel Aviv District Court does not have jurisdiction, and no other Israeli court has jurisdiction,
 the federal district court for the District of New York), in all cases subject to the court's having personal jurisdiction
 over the indispensable parties named as defendants. Any Person or Entity purchasing or otherwise acquiring any interest in Shares
 shall be deemed to have notice of and consented to the provisions of this Article.

41.2. Without
 prejudice to the above, unless the Company consents In Writing to the selection of an alternative forum, the federal district courts
 of the United States of America in the New York District shall be the exclusive forum for the resolution of any complaint asserting
 a cause of action arising under the Securities Act of 1933 or arising under the Securities Exchange Act of 1934, as amended. Any
 Person or Entity purchasing or otherwise acquiring any interest in any security of the Company shall be deemed to have notice of
 and consented to the provisions of this Article 41.

## Exhibit 4.1

**Exhibit 4.1**

**PULSENMORE LTD.**

**2019 SHARE INCENTIVE PLAN**

**Adopted: September 26, 2019**

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| |
|:---|
| **PULSENMORE LTD.** |
| **2019 SHARE INCENTIVE PLAN** |

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Unless otherwise defined, terms used herein shall have the meaning ascribed to them in Section 2 hereof.

1.  **<u>PURPOSE; TYPES OF AWARDS; CONSTRUCTION</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Purpose</u>.
 The purpose of this Share Incentive Plan (as amended, the "**Plan**") is to
 afford an incentive to employees, directors, officers, consultants, advisors, and any other
 person or entity whose services are considered valuable (collectively, the "**Service Providers**") to PULSENMORE Ltd., an Israeli company (the "**Company** "),
 or any Affiliate of the Company, which now exists or hereafter is organized or acquired by
 the Company, to continue as Service Providers, to increase their efforts on behalf of the
 Company or Affiliate and to promote the success of the Company's business, by providing
 such Service Providers with opportunities to acquire a proprietary interest in the Company
 by the issuance of Ordinary Shares of the Company, and the grant of options to purchase Shares
 and other Awards pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Types of Awards</u>. The Plan is intended to enable the Company to issue Awards under varying tax
 regimes, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pursuant
 and subject to the provisions of Section 102 of the Ordinance, including without limitation
 the Income Tax Rules (Tax Benefits in Stock Issuance to Employees) 5763-2003 (the "**Rules** ")
 or such other rules published by the Israeli Income Tax Authorities (the "**ITA** ")
 (such Awards, "**102 Awards** "). 102 Awards may either be granted to a Trustee
 or without a trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pursuant
 to Section 3(9) of the Ordinance (such Awards, "**3(9) Awards** ");

In addition to the issuance of Awards under the relevant tax regime in the State of Israel, the Plan contemplates issuances to Grantees in other jurisdictions with respect to which the Board is empowered to make the requisite adjustments in the Plan and set forth the relevant conditions in the Company's agreement with the Grantee in order to comply with the requirements of the tax regimes in any such jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>Construction</u>.
 To the extent any provision herein conflicts with the conditions of any relevant tax law
 or regulation which are relied upon for tax relief in respect of a particular Award to a
 Grantee, the provisions of such law or regulation shall prevail over those of the Plan and
 the Board is empowered hereunder to interpret and enforce the said prevailing provisions.

2.  **<u>DEFINITIONS</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Terms Generally</u>. The definitions of terms herein shall apply equally to the singular and plural
 forms of the terms defined. Whenever the context may require, any pronoun shall include the
 corresponding masculine, feminine and neuter forms. The words "include", "includes"
 and "including" shall be deemed to be followed by the phrase "without limitation".
 Unless the context requires otherwise (i) any definition of or reference to any agreement,
 instrument or other document herein shall be construed as referring to such agreement, instrument
 or other document as from time to time amended, restated, supplemented or otherwise modified
 (subject to any restrictions on such amendments, restatements, supplements or modifications
 set forth therein or herein), (ii) references to any law, constitution, statute, treaty,
 regulation, rule or ordinance, including any section or other part thereof shall refer to
 that it as amended from time to time and shall include any successor law, (iii) reference
 to a person shall means an individual, partnership, corporation, limited liability company,
 association, trust, unincorporated organization, or a government or agency or political subdivision
 thereof, (iv) the words "herein", "hereof" and "hereunder",
 and words of similar import, shall be construed to refer to this Plan in its entirety and
 not to any particular provision hereof and (v) all references herein to Sections shall be
 construed to refer to Sections to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Defined Terms</u>. The following terms shall have the meanings ascribed to them in this Section 2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. "**Affiliate** "
 shall mean an affiliate of, or person affiliated with, a specified person or company or other
 trade or business that directly, or indirectly through one or more intermediaries, controls,
 is controlled by or is under common control with such person, including, without limitation,
 any Subsidiary. For the purpose of Awards granted pursuant to Section 102, it shall mean
 also an "employing company" within the meaning of Section 102(a) of the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2. "**Applicable Law**" shall mean any applicable law, rule, regulation, statute, pronouncement, policy,
 interpretation, judgment, order or decree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. "**Award** "
 shall mean any Option or any other Share-based award, granted to a Grantee under the Plan
 and any share issued pursuant to the exercise thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4. "**Board** "
 shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.5. "**Committee** "
 shall mean a committee established by the Board to administer the Plan, if established, subject
 to Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.6. "**Companies Law**" shall mean the Israel Companies Law 5759-1999 and the regulations enacted
 thereunder, all as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.7. "**Controlling Shareholder**" shall have the meaning set forth in Section 32(9) of the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.8. "**Disability** "
 shall mean (i) the inability of a Grantee to engage in any substantial gainful activity by
 reason of any medically determinable physical or mental impairment which can be expected
 to result in death or which has lasted or can be expected to last for a continuous period
 of not less than 12 months, as determined by a medical doctor satisfactory to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.9. "**Employee** "
 shall mean a person who is employed by the Company or any of its Affiliates, including, for
 the purpose of Section 102, an individual who is serving as an "office holder"
 as defined under the Companies Law, but excluding any Controlling Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.10. "**Exercise Period**" shall mean the period, commencing on the date of grant of an Option, during
 which an Option shall be exercisable, subject to any vesting provisions thereof and the termination
 provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.11. "**Exercise Price**" shall mean the exercise price for each Share covered by an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.12. "**Fair Market Value**" per share as of a particular date shall mean, the fair market value
 of such Share, Award or other property determined by such methods or procedures as shall
 be established from time to time by the Board and if not established by the Board –
 the price per share of the last investment transaction prior to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.13. "**Grantee** "
 shall mean a person who receives a grant of Award under the Plan, and who at the time of
 grant is a Service Provider of the Company or any Affiliate thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.14. "**Non-Employee** "
 shall mean a consultant, adviser, service provider, Controlling Shareholder or any other
 person who is not an Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.15. "**Options** "
 shall mean all options to purchase Shares granted as 102 Awards, 3(9) Awards, as well as
 options to purchase Shares issued under other tax regimes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.16. "**Ordinance** "
 shall mean the Israeli Income Tax Ordinance (New Version), and the regulations enacted thereunder,
 all as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.17. "**Retirement** "
 shall mean a Grantee's retirement pursuant to applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.18. **"Shares** "
 shall mean Ordinary Shares, par value NIS 0.01 of the Company, or shares of such other class
 of shares of the Company as shall be designated by the Board in respect of the relevant Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.19. "**Subsidiary** "
 shall mean any company (other than the Company), which now exists or is hereafter organized
 or acquired by the Company, (i) in an unbroken chain of companies beginning with the Company
 if, at the time of granting an Award, each of the companies other than the last company in
 the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined
 voting power of all classes of stock in one of the other companies in such chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.20. "**Trustee** "
 shall mean the trustee appointed by the Board, as the case may be, if so appointed, to hold
 the respective Options and/or Shares (and, in relation with 102 Awards, also approved by
 the Israeli tax authorities).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.21. "**Exercised Option Shares**" shall mean all Shares purchased by Grantees under Option in accordance
 with this Plan.

3.  **<u>ADMINISTRATION</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. The
 Plan shall be administered by the Board, except in the event that the Board appoints a Committee,
 in which case the Committee shall have, to the extent permitted under Applicable Law and
 the Articles of Association and any other governing document of the Company, on a non-exclusive
 basis, all the powers of the Board to act and make determinations hereunder. In the event
 that the Board does not create a committee to administer the Plan, the Plan shall be administered
 by the Board in its entirety. In the event that an action necessary for the administration
 of the Plan is required under law to be taken by the Board, then such action shall be so
 taken by the Board. In any such event, all references herein to the Committee shall be construed
 as references to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. Subject
 to the terms and conditions of this Plan and any mandatory provisions of Applicable Law,
 and in addition to the Board's powers contained elsewhere in this Plan, the Board shall
 have full authority in its discretion, from time to time and at any time, to determine any
 of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) eligible
 Grantees,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) grants
 of Awards and setting the terms and provisions of option agreements (which need not be identical)
 and any other agreements or instruments under which Awards are made, including, but not limited
 to, the number of Shares underlying each Award,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 time or times at which Awards shall be granted,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 schedule and conditions on which Awards may be exercised,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 Exercise Price,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the
 Vesting Periods,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the
 Vesting start dates,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Acceleration
 terms,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) to
 interpret the Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) prescribe,
 amend and rescind rules and regulations relating to and for carrying out the Plan, as it
 may deem appropriate,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the
 terms and conditions on which Awards may be repurchased by the Company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the
 Fair Market Value of the Shares,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the
 tax track (capital gains, ordinary income track or any other track available under the Section
 102 of the Ordinance) for the purpose of 102 Awards, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) any
 other matter which is necessary or desirable for, or incidental to, the administration of
 the Plan and any Award thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. Grants
 of Awards shall be made pursuant to written notice to Grantees setting forth the terms of
 the Award. Such notice shall designate the type of Award as one of the following: (i) a 102
 Award granted to a Trustee (either as a 102 Award (capital gain track) with Trustee or a
 102 Award (ordinary income track) with Trustee), (ii) a 102 Award without a 102 Trustee,
 (iii) a 3(9) Award, or (iv), any other type of Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. Subject
 to the mandatory provisions of Applicable Law, the grant of any Award, whether by the Committee
 or the Board, shall be deemed to include an authorization of the issuance of Shares upon
 the due exercise thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. All
 decisions, determination and interpretations of the Committee shall be final and binding
 on all Grantees of any Awards under this Plan, unless otherwise determined by the Board.
 No member of the Committee shall be liable for any action taken or determination made in
 good faith with respect to the Plan or any Award granted hereunder.

4.  **<u>ELIGIBILITY</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. Awards
 may be granted to Service Providers of the Company and any Affiliate thereof, taking into
 account the qualification under each tax regime pursuant to which such Awards are granted.
 A person who has been granted an Award hereunder may be granted additional Awards, if the
 Committee shall so determine, subject to the limitations herein. In determining the persons
 to whom Awards shall be granted and the number of Shares to be covered by each Award, the
 Committee shall take into account the duties of the respective persons, their present and
 potential contributions to the success of the Company and such other factors as the Committee
 shall deem relevant in connection with accomplishing the purpose of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. Subject
 to Applicable Law, 102 Awards may not be granted to Controlling Shareholders and may only
 be granted to Employees, including officers and directors, of the Company or any Affiliate
 thereof, who are Israeli residents ()"**Eligible 102 Grantees** "). Unless otherwise
 permitted by the Ordinance and the Rules, no 102 Awards to a Trustee may be granted until
 the lapse of thirty (30) days after the requisite filings under the Ordinance and the Rules
 have been appropriately made with the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. Subject
 to Applicable Law, Non-Employees who are Israeli residents and are not Eligible 102 Grantees
 may only be granted 3(9) Awards under this Plan.

---

| | |
|:---|:---|
| 5. | **<u>SHARES</u>.** |
|  | The initial number of Shares reserved for the grant of Awards under the Plan shall be determined by the Board. The class of said Shares shall be designated by the Board with respect to each Award and the notice of grant shall reflect such designation. Any share underlying an Award granted hereunder which has expired, or was cancelled or terminated or forfeited for any reason without having been exercised, shall be automatically, and without any further action on the part of the Company or any Grantee, returned to the "pool" of reserved Shares hereunder and shall again be available for grant for the purposes of this Plan (unless this Plan shall have been terminated) or unless the Board determines otherwise. The Board may, subject to any other approvals required under any Applicable Law, increase or decrease the number of Shares to be reserved under the Plan. Such Shares may, in whole or in part, be authorized but unissued Shares, or Shares that shall have been or may be reacquired by the Company (to the extent permitted pursuant to the Companies Law) or by a trustee appointed by the Board under the relevant provisions of the Ordinance, the Companies Law or any equivalent provision. Any Shares which are not subject to outstanding options at the termination of the Plan shall cease to be reserved for the purpose of the Plan, but until termination of the Plan, the Company shall at all times reserve a sufficient number of Shares to meet the requirements of the Plan. |

---

6.  **<u>TERMS AND CONDITIONS OF OPTIONS</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Each
 Option granted pursuant to the Plan shall be evidenced by a written agreement between the
 Company and the Grantee or a written notice delivered by the Company and accepted by the
 Grantee (the "**Option Agreement** "), in such form and containing such terms
 and conditions as the Committee shall from time to time approve, which Option Agreement shall
 comply with and be subject to the terms and conditions provided for in this Section 6, unless
 otherwise specifically provided in such Option Agreement or the terms referred to in Sections
 7 and 8 below. For purposes of interpreting this Section 6, a director's service as
 a member of the Board or the services of an officer, as the case may be, shall be deemed
 to be employment with the Company or its Subsidiary or Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Number of Shares</u>. Each Option Agreement shall state the number of Shares covered by the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Type of Option</u>. Each Option Agreement shall specifically state the type of Option granted
 thereunder and whether it constitutes 102 Option Award and the relevant track, 3(9) Option
 Award, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Exercise Price</u>. Each Option Agreement shall state the Exercise Price. The per share Exercise Price
 shall be determined by the Board. In no event shall the Exercise Price of an Option be less
 than the par value of the shares for which such Option is exercisable. Subject to Section
 3 and to the foregoing, the Board may reduce the Exercise Price of any outstanding Option.
 The Exercise Price shall also be subject to adjustment as provided in Section 10 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Manner of Exercise</u>. An Option may be exercised, as to any or all Shares as to which the Option
 has become exercisable, by written notice delivered in person or by mail to the CEO of the
 Company or to such other person as determined by the Board, which with respect to 102 Awards,
 may be in such form and method as may be determined by the Company, and when applicable,
 by the Trustee in accordance with the requirements of Section 201, specifying the number
 of Shares with respect to which the Option is being exercised, accompanied by payment of
 the Exercise Price for such Shares in the manner specified in the following sentence. Unless
 specified to the contrary in the Option Agreement, the Exercise Price shall be paid in full
 with respect to each Share, in cash, at the time of exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. <u>Term and Vesting of Options</u>. Each Option Agreement shall provide the vesting schedule for
 the Option as determined by the Board. To the extent permitted under Applicable Law, the
 Board shall have the authority to determine the vesting schedule and accelerate the vesting
 of any outstanding Option at such time and under such circumstances as it, in its sole discretion,
 deems appropriate. Unless otherwise resolved by the Board and stated in the Option Agreement,
 and subject to Sections 6.7 and 6.8 hereof, Options shall vest and become exercisable under
 the following schedule: twenty-five percent (25%) of the Shares covered by the Option, on
 the first anniversary of the date on which such Option is granted, provided that the Grantee
 remains continuously employed by or in the service of the Company or its Subsidiary or Affiliate
 for that one year, and six and one-quarter percent (6.25%) of the Shares covered by the Option
 at the end of each subsequent quarter, provided that the Grantee remains continuously employed
 by or in the service of the Company for that quarter, over the course of the following three
 (3) years of continued employment by or service for the Company. The provisions with respect
 to any Option need not be the same as the provisions with respect to any other Option. The
 Exercise Period of an Option will be seven (7) years from the date of grant of the Option
 unless otherwise determined by the Board, but subject to the vesting provisions described
 above and the early termination provisions set forth in Sections 6.7 and 6.8 hereof. At the
 expiration of the Exercise Period, all unexercised Options shall become null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7.1. Except
 as provided in this Section 6.7 and in Section 6.8 hereof, an Option may not be exercised
 unless the Grantee is then in the employ of or maintaining a director, officer, consultant,
 advisor or supplier relationship with the Company or a Subsidiary or Affiliate thereof or,
 and unless the Grantee has remained continuously so employed or in the director, officer,
 supplier, consultant, or advisor relationship since the date of grant of the Option. In the
 event that the employment or director, officer or consultant, advisor or supplier relationship
 of a Grantee shall terminate (other than by reason of death, Disability or Retirement), all
 Options of such Grantee that are vested and exercisable at the time of such termination may,
 unless earlier terminated in accordance with their terms, be exercised within up to ninety
 (90) days after the date of such termination (or such different period as the Committee shall
 prescribe); provided, however, that if the Company (or the Subsidiary or Affiliate, when
 applicable) shall terminate the Grantee's employment or service for Cause (as defined
 below) or if, whether or not the Grantee's employment is terminated by either party,
 circumstances arise or are discovered with respect to the Grantee that would have constituted
 Cause for termination of his or her employment or service, all Options theretofore granted
 to such Grantee (whether vested or not) shall, to the extent not theretofore exercised, terminate
 on the date of such termination (or on which such circumstance arise or are discovered, as
 the case may be) unless otherwise determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7.2. For
 purposes of this Plan, the term "**Cause**" shall mean any of the following:
 (a) fraud, embezzlement or felony or similar act by the Grantee; (b)
an act of moral turpitude by the Grantee, or any act that causes significant injury to the reputation, business, assets, operations or
business relationship of the Company (or a Subsidiary or Affiliate, when applicable); (c) any material breach by the Grantee of an agreement
between the Company or any Subsidiary or Affiliate and the Grantee (including material breach of confidentiality, non-competition or
non-solicitation covenants) or of any duty other of the Grantee to the Company or any Subsidiary or Affiliate thereof; or (d) any circumstances
that constitute grounds for termination for cause under the Grantee's employment, consulting or service agreement with the Company
or Subsidiary or Affiliate, to the extent applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. <u>Death, Disability or Retirement of Grantee</u>. If a Grantee shall die while employed by, or performing
 service for, the Company or a Subsidiary or any Affiliate, or within ninety (90) days after
 the date of termination of such Grantee's employment or service, or if the Grantee's
 employment or service shall terminate by reason of Disability, all Options theretofore granted
 to such Grantee may (to the extent otherwise vested and exercisable and unless earlier terminated
 in accordance with their terms), be exercised by the Grantee or by the Grantee's estate
 or by a person who acquired the right to exercise such Options by bequest or inheritance
 or otherwise by result of death or Disability of the Grantee, at any time within one (1)
 year after the death or Disability of the Grantee (or such different period as the Board
 shall prescribe). In the event that an Option granted hereunder shall be exercised by the
 legal representatives of a deceased or former Grantee, written notice of such exercise shall
 be accompanied by a certified copy of letters testamentary or equivalent proof of the right
 of such legal representative to exercise such Option. In the event that the employment or
 service of a Grantee shall terminate on account of such Grantee's Retirement, all Options
 of such Grantee that are exercisable at the time of such Retirement may, unless earlier terminated
 in accordance with their terms, be exercised at any time within ninety (90) days after the
 date of such Retirement (or such different period as the Board shall prescribe).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. <u>Adjustment and Suspension of Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.1. The
 Board shall have the full right and discretion to adjust the vesting schedule and other terms
 of any granted Option so as to reflect any changes in the Grantee's position percentage
 with a view to delaying vesting in proportion to decrease in position percentage (e.g. from
 full-time to part time, from 80% to 50% etc.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.2. Unless
 the Board of Directors provides otherwise, vesting of Options granted hereunder shall be
 suspended during any parental leave or other unpaid leave of absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10. <u>Voting Proxy</u>. Until immediately after the listing for trading on a stock exchange or market
 of the Company's (or the Successor Corporation's) shares, the right to vote any
 Shares acquired under this Plan pursuant to an Award shall, unless otherwise determined by
 the Board, be given by the Grantee or the Trustee, as the case may be, pursuant to an irrevocable
 proxy, to the person or persons designated by the Board and in a form approved by the Board.
 Unless otherwise determined by the Board, all Awards granted hereunder shall be conditioned
 upon the execution of such irrevocable proxy. Until immediately after the listing for trading
 on a stock exchange or market or trading system of the Company's (or the Successor
 Corporation's) shares, any director(s) appointment rights with respect to such Shares,
 if any, shall not be exercised. Any irrevocable proxy granted pursuant hereto shall be of
 no force or effect immediately after the listing for trading on a stock exchange or market
 or trading system of the Company's (or the Successor Corporation's) shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11. <u>Repurchase.</u> The Company shall have the option to repurchase from the Grantee all or any portion of the
 Exercised Option Shares at their Fair Market Value in accordance with the provisions of this
 Section. Exercised Option Shares shall be released from the aforesaid repurchase option upon
 the lapse of five (5) years of the date such Options have been exercised. Without derogating
 from the aforesaid and from the provisions of Section 6.7, and unless otherwise determined
 by the Board, in the event that the employment or director, officer or consultant, advisor
 or supplier relationship of a Grantee shall terminate after the exercise of the applicable
 Option, all Exercised Option Shares, irrespective of their Exercise date, shall be subject
 to repurchase by the Company at their Fair Market Value within 90 business days of termination
 of the service of the Grantee, all unless the Board has determined a repurchase price in
 the applicable Award Agreement in which case such price shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12. <u>Other Provisions.</u> The Option Agreement evidencing Awards under the Plan shall contain such
 other terms and conditions not inconsistent with the Plan as the Board may determine, at
 or after the date of grant, including without limitation, provisions in connection with the
 restrictions on transferring the Awards, which shall be binding upon the Grantees and other
 terms and conditions as the Board shall deem appropriate.

7.  **<u>102 OPTION AWARDS</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. Options
 granted pursuant to this Section 7 are intended to be granted pursuant to Section 102 of
 the Ordinance pursuant to either (a) Section 102(b)(2) thereof as capital gains track options
 ()"**102 Capital Gains Track Options** "), or (b) Section 102(b)(1) thereof
 as ordinary income track options ()"**102 Ordinary Income Track Options** ";
 together with 102 Capital Gains Track Options, "**102 Trustee Options** ").
 102 Trustee Options shall be granted subject to the following special terms and conditions
 contained in this Section 7, the general terms and conditions specified in Section 6 hereof
 and other provisions of the Plan, except for any provisions of the Plan applying to Options
 under different tax laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. The
 Company may grant only one type of 102 Trustee Option at any given time to all Grantees who
 are to be granted 102 Trustee Options pursuant to this Plan, and shall file an election with
 the ITA regarding the type of 102 Trustee Option it elects to grant before the date of grant
 of any 102 Trustee Options (the "**Election** "). Such Election shall also
 apply to any bonus shares received by any Grantee as a result of holding the 102 Trustee
 Options. The Company may change the type of 102 Trustee Option that it elects to grant only
 after the passage of at least 12 months from the end of the year in which the first grant
 was made in accordance with the previous Election, or as otherwise provided by Applicable
 Law. Any Election shall not prevent the Company from granting Options, pursuant to Section
 102(c) of the Ordinance without a Trustee ()"**102 Non-Trustee Options** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Each
 102 Trustee Option will be deemed granted on the date stated in a written notice to be provided
 by the Company, provided that on or before such date (i) the Company has provided such notice
 to the Trustee, and (ii) the Grantee has signed all documents required pursuant to Applicable
 Law and under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Each
 102 Trustee Option, each Share issued pursuant to the exercise of any 102 Trustee Option,
 and any rights granted thereunder, including, without limitation, bonus shares, shall be
 allotted and issued to and registered in the name of the Trustee and shall be held in trust
 for the benefit of the Grantee for a period of not less than the requisite period prescribed
 by the Ordinance and the Rules or such longer period as set by the Committee (the "**Required Holding Period** "). In the event that the requirements under Section 102 to qualify
 an Option as a 102 Trustee Option are not met, then the Option may be treated as a 102 Non-Trustee
 Option, all in accordance with the provisions of Section 102 and the Rules. After the lapse
 of the Required Holding Period, the Trustee may release such 102 Trustee Option and any such
 Shares, provided that (i) the Trustee has received an acknowledgment from the ITA that the
 Grantee has paid any applicable taxes due pursuant to the Ordinance or (ii) the Trustee and/or
 the Company and/or its Affiliate withholds any applicable taxes due pursuant to the Ordinance
 arising from the 102 Trustee Options and/or any Shares allotted or issued upon exercise of
 such 102 Trustee Options. The Trustee shall not release any 102 Trustee Options or Shares
 issued upon exercise thereof prior to the payment in full of the Grantee's tax liabilities
 arising from such 102 Trustee Options and/or Shares or the withholding referred to in (ii)
 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. Each
 102 Trustee Option shall be subject to the relevant terms of the Ordinance and the Rules,
 which shall be deemed an integral part of the 102 Trustee Option and shall prevail over any
 term contained in the Plan or Option Agreement which is not consistent therewith. Any provision
 of the Ordinance, the Rules and any approvals by the Income Tax Commissioner not expressly
 specified in this Plan or Option Agreement which, as determined by the Board, are necessary
 to receive or maintain any tax benefit pursuant to Section 102 shall be binding on the Grantee.
 The Grantee granted a 102 Trustee Option shall comply with the Ordinance and the terms and
 conditions of the Trust Agreement entered into between the Company and the Trustee. The Grantee
 agrees to execute any and all documents, which the Company and/or its Affiliates and/or the
 Trustee may reasonably determine to be necessary in order to comply with the Ordinance and
 the Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. With
 respect to any 102 Trustee Option, subject to the provisions of Section 102 and the rules,
 during the Required Holding Period, the Grantee shall not release from trust or sell, assign,
 transfer or give as collateral, the Shares issuable upon the exercise of a 102 Trustee Option
 and/or any securities issued or distributed with respect thereto, until the expiration of
 the Required Holding Period. Notwithstanding the above, if any such sale or release occurs
 during the Required Holding Period it will result in adverse tax consequences to the Grantee
 under Section 102 of the Ordinance and the Rules, which shall apply to and shall be borne
 solely by such Grantee. Subject to the foregoing, the Trustee may, pursuant to a written
 request from the Grantee, release and transfer such Shares to a designated third party, provided
 that both of the following conditions have been fulfilled prior to such release or transfer:
 (i) payment has been made to the ITA of all taxes required to be paid upon the release and
 transfer of the Shares, and confirmation of such payment has been received by the Trustee
 and (ii) the Trustee has received written confirmation from the Company that all requirements
 for such release and transfer have been fulfilled according to the terms of the Company's
 corporate documents, the Plan, the Option Agreement and any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7. If
 a 102 Trustee Option is exercised during the Required Holding Period, the Shares issued upon
 such exercise shall be issued in the name of the Trustee for the benefit of the Grantee.
 If such 102 Trustee Option is exercised after the expiration of the Required Holding Period,
 the Shares issued upon such exercise shall, at the election of the Grantee, either (i) be
 issued in the name of the Trustee, or (ii) be issued to the Grantee, provided that the Grantee
 first complies with all applicable provisions of the Plan and all taxes with respect thereto
 shall have been fully paid to the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8. The
 foregoing provisions of this Section 7 relating to 102 Trustee Options shall not apply with
 respect to 102 Non-Trustee Options, which shall, however, be subject to the relevant provisions
 of Section 102 and the Rules.

8.  **<u>3(9) OPTION AWARD</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. Options
 granted pursuant to this Section 8 are intended to constitute a 3(9) Option Award and shall
 be granted subject to the general terms and conditions specified in Section 6 hereof and
 other provisions of the Plan, except for any provisions of the Plan applying to Options under
 different tax laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. To
 the extent required by the Ordinance or the ITA or otherwise deemed by the Board prudent
 or advisable, the 3(9) Option Awards granted pursuant to the Plan shall be issued to a Trustee
 nominated by the Board in accordance with the provisions of the Ordinance. In such event,
 the Trustee shall hold such Options in trust, until exercised by the Grantee, pursuant to
 the Company's instructions from time to time as set forth in a trust agreement, which
 will be entered into between the Company and the Trustee. If determined by the Board, and
 subject to such trust agreement, the Trustee shall be responsible for withholding any taxes
 to which a Grantee may become liable upon the exercise of Options.

9. Reserved.

10. Reserved.

11.  **<u>EFFECT OF CERTAIN CHANGES</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. <u>General</u>.
 In the event of a subdivision of the outstanding share capital of the Company, any payment
 of a stock dividend (distribution of bonus shares), a recapitalization, a reorganization
 (which may include a combination or exchange of shares), a consolidation, a stock split,
 a reverse stock split, a spin-off or other corporate divestiture or division, a reclassification
 or other similar occurrence, the Committee shall make such adjustments as determined by the
 Board to be appropriate in order to adjust (i) the number of Shares available for grants
 of Awards, (ii) the number of Shares covered by outstanding Awards, and (iii) the exercise
 price per share covered by any Award; provided, however, that any fractional shares resulting
 from such adjustment shall be rounded down to the nearest whole share and that the Company
 shall have no obligation to make any cash or other payment with respect to such fractional
 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. <u>Merger and Sale of Company</u>. In the event of (i) a sale of all or substantially all of the assets
 of the Company; or (ii) a sale (including an exchange) of all or substantially all of the
 shares of the Company, or an acquisition by a shareholder of the Company or by an Affiliate
 of such shareholder, of all the shares of the Company held by other shareholders or by other
 shareholders who are not Affiliated with such acquiring party; (iii)
a merger, consolidation or like transaction of the Company with or into another corporation; (iv) a scheme of arrangement for the purpose
of effecting such sale, merger or amalgamation; or (v) such other transaction that is determined by the Board to be a transaction having
a similar effect (all such transactions being herein referred to as a "**Merger/Sale** "), then: (i) all vested Options
shall be exercisable in full within the period of thirty (30) days before the closing date of such Merger/Sale and all vested Options
not exercised during such period shall thereafter expire, and (ii) any unvested Options shall be, at the full and absolute discretion
of the successor corporation, assumed, substituted, amended, accelerated or, cancelled by the successor corporation, without any compensation
to Grantee, upon closing of the Merger/Sale, all as determined by such successor corporation at its full discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. <u>Reservation of Rights</u>. Except as expressly provided in this Section 11, the Grantee of an Award hereunder
 shall have no rights by reason of any subdivision or consolidation of shares of any class
 or the payment of any stock dividend (bonus shares), any other increase or decrease in the
 number of shares of any class or by reason of any dissolution, liquidation, Merger/Sale,
 or consolidation, divestiture or spin-off of assets or shares of another company. Any issue
 by the Company of shares of any class, or securities convertible into shares of stock of
 any class, shall not affect, and no adjustment by reason thereof shall be made with respect
 to, the number, type or price of shares subject to an Award. The grant of an Award pursuant
 to the Plan shall not affect in any way the right of power of the Company to make adjustments,
 reclassifications, reorganizations or changes of its capital or business structures or to
 merge or to consolidate or to dissolve, liquidate or sell, or transfer all or part of its
 business or assets or engage in any similar transactions.

12.  **<u>NON-TRANSFERABILITY; SURVIVING BENEFICIARY</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. All
 Awards granted under the Plan shall not be transferable otherwise than by will or by the
 laws of descent. Awards may be exercised or otherwise realized, during the lifetime of the
 Grantee, only by the Grantee or by his guardian or legal representative, to the extent provided
 for herein. Any transfer of an Award not permitted hereunder (including transfers pursuant
 to any decree of divorce, dissolution or separate maintenance, any property settlement, any
 separation agreement or any other agreement with a spouse) and any grant of any interest
 in any Award to, or creation in any way of any interest in any Award by, any party other
 than the Grantee shall be null and void and shall not confer upon any party or person, other
 than the Grantee, any rights. A Grantee may file with the Board a written designation of
 a beneficiary on such form as may be prescribed by the Board and may, from time to time,
 amend or revoke such designation. If no designated beneficiary survives the Grantee, the
 executor or administrator of the Grantee's estate shall be deemed to be the Grantee's
 beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. As
 long as the Shares are held by the Trustee in favor of the Grantee, all rights possessed
 by the Grantee over the Shares are personal, and may not be transferred, assigned, pledged
 or mortgaged, other than by will or laws of descent.

13.  **<u>CONDITIONS UPON ISSUANCE OF SHARES</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. <u>Legal Compliance</u>. Shares shall not be issued pursuant to the exercise of an Award, unless the
 exercise of such Award and the issuance and delivery of such Shares shall comply with Applicable
 Laws as determined by the Board. The inability of the Company to obtain authority from any
 regulatory body having jurisdiction, which authority is deemed by the Company's counsel
 to be necessary to the lawful issuance and sale of any Shares hereunder, and the inability
 to issue Shares hereunder due to non-compliance with any Company policies with respect to
 the sale of Shares, shall relieve the Company of any liability in respect of the failure
 to issue or sell such Shares as to which such requisite authority or compliance shall not
 have been obtained or achieved. Shares issued pursuant to an Awards shall be subject to the
 Articles of Association of the Company and any other governing documents of the Company,
 including all policies, manuals and internal regulations adopted by the Company from time
 to time, as may be amended from time to time, including, without limitation, any provisions
 included therein concerning restrictions or limitations on transferability of Shares or grant
 of any rights with respect thereto and any provisions concerning restrictions on the use
 of inside information and other provisions deemed by the Company to be appropriate in order
 to ensure compliance with Applicable Laws, statutes and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. <u>Representations</u>.
 As a condition to the exercise of an Award, the Company may require the person exercising
 such Award to represent and warrant as may be required under applicable securities laws if,
 in the opinion of counsel for the Company, such representations are required, all in form
 and content specified by the Company.

14.  **<u>AGREEMENT BY GRANTEE REGARDING TAXES</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. If
 the Board shall so require, as a condition of exercise of an Award, the release of Shares
 by the Trustee or the expiration of the Restricted Period, a Grantee shall agree that, no
 later than the date of such occurrence, he will pay to the Company or make arrangements satisfactory
 to the Board and the Trustee (if applicable) regarding payment of any applicable taxes of
 any kind required by Applicable Law to be withheld or paid.

---

| | |
|:---|:---|
| 14.2. | ALL TAX CONSEQUENCES UNDER ANY APPLICABLE LAW WHICH MAY ARISE FROM THE GRANT OF ANY AWARDS OR THE EXERCISE THEREOF, THE SALE OR DISPOSITION OF ANY SHARES GRANTED HEREUNDER OR ISSUED UPON EXERCISE OF ANY AWARD OR FROM ANY OTHER ACTION OF THE GRANTEE IN CONNECTION WITH THE FOREGOING SHALL BE BORNE AND PAID SOLELY BY THE GRANTEE, AND THE GRANTEE SHALL INDEMNIFY THE COMPANY, ITS SUBSIDIARIES AND AFFILIATES AND THE TRUSTEE, AND SHALL HOLD THEM HARMLESS AGAINST AND FROM ANY LIABILITY FOR ANY SUCH TAX OR PENALTY, INTEREST OR INDEXATION THEREON. EACH GRANTEE AGREES TO, AND UNDERTAKES TO COMPLY WITH, ANY RULING, SETTLEMENT, CLOSING AGREEMENT OR OTHER SIMILAR AGREEMENT OR ARRANGEMENT WITH ANY TAX AUTHORITY IN CONNECTION WITH THE FOREGOING WHICH IS APPROVED BY THE COMPANY. |
|  | THE GRANTEE IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING OR EXERCISING AWARDS HEREUNDER. THE COMPANY DOES NOT ASSUME ANY RESPONSIBILITY TO ADVISE THE GRANTEE ON SUCH MATTERS, WHICH SHALL REMAIN SOLELY THE RESPONSIBILITY OF THE GRANTEE. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. The
 Company or any Subsidiary or Affiliate may take such action as it may deem necessary or appropriate,
 in its discretion, for the purpose of or in connection with withholding of any taxes which
 the Company or any Subsidiary or Affiliate is required by any Applicable Law to withhold
 in connection with any Awards. The Company shall not be obligated to allow the exercise of
 any Award by or on behalf of a Grantee until all tax consequences arising from the exercise
 of such Award are resolved in a manner acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4. With
 respect to 102 Non-Trustee Options, if the Grantee ceases to be employed by the Company or
 any Affiliate, the Grantee shall extend to the Company and/or its Affiliate with whom the
 Grantee is employed a security or guarantee for the payment of taxes due at the time of sale
 of Shares, all in accordance with the provisions of Section 102 of the Ordinance and the
 Rules.

15.  **<u>RIGHTS AS A SHAREHOLDER; VOTING AND DIVIDENDS</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. Unless
 otherwise determined by the Board, and subject to Section 9.7, a Grantee shall have no rights
 as a shareholder of the Company with respect to any Shares covered by the Award until the
 date of the issuance of a share certificate to the Grantee for such Shares. In the case of
 102 Option Awards or 3(9) Option Awards (if such Share Options are being held by a Trustee),
 the Trustee shall have no rights as a shareholder of the Company with respect to any Shares
 covered by such Award until the date of the issuance of a share certificate to the Trustee
 for such Shares for the Grantee's benefit, and the Grantee shall have no rights as
 a shareholder of the Company with respect to any Shares covered by the Award until the date
 of the release of such Shares from the Trustee to the Grantee and the issuance of a share
 certificate to the Grantee for such Shares, all unless otherwise determined by the Board.
 No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities
 or other property) or distribution of other rights for which the record date is prior to
 the date such share certificate is issued, unless otherwise determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. With
 respect to all Shares issued in the form of Awards hereunder or upon the exercise of Awards
 hereunder, any and all voting rights attached to such Shares shall be subject to Section
 6.10, and the Grantee shall be entitled to receive dividends distributed with respect to
 such Shares, subject to the provisions of the Company's Articles of Association, as
 amended from time to time, and subject to any Applicable Law.

16.  **<u>NO REPRESENTATION BY COMPANY</u>.** 

By granting the Awards, the Company is not, and shall not be deemed as, granting any representation or warranties to the Grantee regarding the Company, its business affairs, its prospects or the future value of its Shares.

17.  **<u>NO RETENTION RIGHTS</u>.** 

Nothing in the Plan or in any Award granted or agreement entered into pursuant hereto shall confer upon any Grantee the right to continue in the employ of, or be in a consultant, advisor, director, officer or supplier relationship with, the Company or any Subsidiary or Affiliate or to be entitled to any remuneration or benefits not set forth in the Plan or such agreement or to interfere with or limit in any way the right of the Company or any such Subsidiary or Affiliate to terminate such Grantee's employment or service. Awards granted under the Plan shall not be affected by any change in duties or position of a Grantee as long as such Grantee continues to be employed by, or be in a consultant, advisor, director, officer or supplier relationship with, the Company or any Subsidiary or Affiliate.

18.  **<u>PERIOD DURING WHICH AWARDS MAY BE GRANTED</u>.** 

Awards may be granted pursuant to the Plan from time to time within a period of ten (10) years from the Effective Date. From the tenth (10<sup>th</sup>) anniversary of the Effective Date no grants of Awards may be made and the Plan shall continue to be in full force and effect solely with respect to such Awards that remain outstanding. The Plan shall terminate at such time after the tenth (10<sup>th</sup>) anniversary of the Effective Date that no Awards remain outstanding.

19.  **<u>TERM OF AWARD</u>.** 

Anything herein to the contrary notwithstanding, but without derogating from the provisions of Sections 6.7 and 6.8 hereof, if any Award, or any part thereof, has not been exercised and the Shares covered thereby not paid for within the term of the Award as determined by the Board, which in any event shall not exceed ten (10) years after the date on which the Award was granted, as set forth in the Notice of Grant in the Grantee's Award, such Award, or such part thereof, and the right to acquire such Shares shall terminate, and all interests and rights of the Grantee in and to the same shall expire. In the case of Shares held by a Trustee, the Grantee shall elect whether to release such Shares from trust or sell the Shares and upon such release or sale such trust shall expire.

20.  **<u>AMENDMENT AND TERMINATION OF THE PLAN</u>.** 

The Board at any time and from time to time may suspend, terminate, modify or amend the Plan, whether retroactively or prospectively; provided, however, that, unless otherwise determined by the Board, an amendment which requires shareholder approval in order for the Plan to continue to comply with any Applicable Law shall not be effective unless approved by the requisite vote of shareholders, and provided further that except as provided herein, no suspension, termination, modification or amendment of the Plan may adversely affect any Award previously granted, unless the written consent of the respective Grantee is obtained.

21.  **<u>APPROVAL</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1. The
 Plan shall take effect upon its adoption by the Board (the "**Effective Date** ").
 Notwithstanding the foregoing, in the event that approval of the Plan by the shareholders
 of the Company is required under Applicable Law, in connection with the application of certain
 tax treatment or otherwise, such approval shall be obtained within the time required under
 the Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2. The
 102 Awards are subject to the approval, if required, of the ITA and receipt by the Company
 of all approvals thereof.

22.  **<u>GOVERNING LAW; JURISDICTION</u>.** 

The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Israel. The competent courts located in Tel-Aviv-Jaffa, Israel, shall have exclusive jurisdiction over any dispute arising out of or in connection with this Plan and any Award granted hereunder, and by signing any agreement relating to an Award hereunder each Grantee irrevocably submits to such exclusive jurisdiction.

23.  **<u>NON-EXCLUSIVITY OF THE PLAN</u>.** 

Neither the adoption of the Plan by the Board nor the submission of the Plan to shareholders of the Company for approval (to the extent required under Applicable Law), shall be construed as creating any limitations on the power or authority of the Board to adopt such other or additional incentive or other compensation arrangements of whatever nature as the Board may deem necessary or desirable or preclude or limit the continuation of any other plan, practice or arrangement for the payment of compensation or benefits to employees generally, or to any class or group of employees, which the Company or any Subsidiary or Affiliate now has lawfully put into effect, including, without limitation, any retirement, pension, savings, insurance, death and disability benefits and executive short-term or long-term incentive plans.

24.  **<u>MISCELLANEOUS</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1. <u>Additional Terms</u>. Each Award awarded under the Plan may contain such other terms and conditions
 not inconsistent with the Plan as may be determined by the Board, in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.2. <u>Severability</u>.
 If any provision of the Plan or any Award Agreement shall be determined to be illegal or
 unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and
 thereof shall be severable and enforceable in accordance with their terms, and all provisions
 shall remain enforceable in any other jurisdiction. In addition, if any particular provision
 contained in this Agreement shall for any reason be held to be excessively broad as to duration,
 geographic scope, activity or subject, it shall be construed by limiting and reducing such
 provision as to such characteristic so that the provision is enforceable to fullest extent
 compatible with the applicable law as it shall then appear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.3. <u>Captions and Titles</u>. The use of captions and titles in this Plan or any Option Agreement, or other
 Award related agreement is for the convenience of reference only and shall not affect the
 meaning of any provision of the Plan or such agreement.

\* \* \*

## Exhibit 4.2

**Exhibit 4.2**

**Pulsenmore ltd.**

**2023 UNITED STATES SUB-PLAN<br> TO THE<br> 2019 amended SHARE incentive plan**

**1.** **DEFINITIONS** 

For purposes of this Sub-Plan and any Option Agreement issued hereunder, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Code"** shall mean the United States Internal Revenue Code of 1986, as now in effect or as hereafter
 amended.

(b) "**Employee** "
 shall mean any individual who is an employee of the Company, a Parent or a Subsidiary.

(c) "**Fair Market Value**" means, as of any date, the fair market value of the Share, as determined
 by the Board on a reasonable basis consistent with regulations under Section 409A of the
 Code. For a Listed Security, the determination of Fair Market Value shall be based upon the
 closing price for the applicable date.

(d) **"Incentive Stock Option"** means an Option intended to qualify as an incentive stock option
 within the meaning of Section 422 of the Code, as designated in the applicable Option Agreement.

(e) **"Listed Security"** means any security of the Company that is listed or approved for listing
 on a national securities exchange or designated or approved for designation as a national
 market system security on an interdealer quotation system by the Financial Industry Regulatory
 Authority, Inc. (or any successor organization).

(f) **"Nonstatutory Stock Option"** means an Option not intended to qualify as an Incentive Stock Option,
 as designated in the applicable Option Agreement.

(g) "**Parent** "
 means a "parent corporation," whether now or hereafter existing, as defined in
 Section 424(e) of the Code, or any successor provision.

(h) **"Plan"** shall mean the Pulsenmore Ltd. 2019 Amended Share Incentive Plan.

(i) "**Sub-Plan** "
 shall mean this 2023 United States Sub-Plan to the Plan, as may be amended from time to time.

(j) **"Subsidiary"** means a "subsidiary corporation," whether now or hereafter existing, as defined
 in Section 424(f) of the Code, or any successor provision.

(k) "**Ten Percent Shareholder**" shall mean a person who owns shares possessing more than ten
 percent (10%) of the total combined voting power of all classes of shares of the Company
 or any Parent or Subsidiary of the Company.

(l) "**U.S. Tax Regulations**" shall mean any U.S. Treasury Regulation promulgated pursuant to
 an applicable provision of the Code.

Any capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.

**2.** **GENERAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 persons eligible for participation in this Sub-Plan are employees, officers, directors, consultants
 and other Service Providers of the Company or any Affiliate, as specified in Section 4 of
 the Plan, provided that this Sub-Plan shall apply only to Grantees who are residents of the
 United States or those who are deemed to be residents of the United States for purposes of
 the payment of tax ()"**U.S. Grantees** "). The provisions specified hereunder
 shall form an integral part of the Plan.

2.2. This
 Sub-Plan is to be read as a continuation of the Plan and applies only to Options granted
 to U.S. Grantees, in order for such Options to comply with the requirements of U.S. law,
 and with respect to Incentive Stock Options, with the applicable provisions of the Code.
 For the avoidance of doubt, this Sub-Plan shall not supplement or modify the Plan with respect
 to Options granted to any Grantee who is not a U.S. Grantee.

2.3. With
 respect to any Option granted to a U.S. Grantee, in the event of a conflict between any term
 or provision contained in this Sub-Plan and a term or provision of the Plan, the applicable
 terms and provisions of this Sub-Plan shall govern and prevail.

2.4. Subject
 to adjustment in accordance with Sections 11-12 of the Plan, the maximum aggregate number
 of Shares that may be issued for all purposes under this Sub-Plan shall be as determined
 by the BOD from time to time (the " <u>Sub-Plan Limit</u> "). All Shares reserved
 for issuance under the Sub-Plan may be issued as Incentive Stock Options.

**3.** **ADMINISTRATION** 

Without derogating from the powers and authorities of the Board detailed in the Plan, the Board shall have the sole and full discretion and authority, without the need to submit its determinations or actions to the shareholders of the Company for their approval or authorization, unless such approval is required to comply with any applicable law (including, without limitation, Section 422 of the Code with respect to Options intended to be Incentive Stock Options), to administer this Sub-Plan and to take all actions related hereto and to such administration; and the adoption of forms of Option Agreements to be applied with respect to U.S. Grantees, incorporating and reflecting, inter alia, relevant provisions regarding the grant of Options in accordance with this Sub-Plan, and the amendment or modification from time to time of the terms of such Option Agreements.

**4.** **ISSUANCE OF OPTION; ELIGIBILITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The
 terms and conditions upon which Options shall be issued and exercised, including the vesting
 schedules and the Exercise Price, shall be as specified in the Option Agreement to be executed
 and delivered pursuant to the Plan and this Sub-Plan.

4.2. The
 Board may grant Options under the Plan and this Sub-Plan that are intended to be Incentive
 Stock Options. Such Incentive Stock Options shall comply with the requirements of Section
 422 of the Code (or any successor section thereto).

4.3. No
 Incentive Stock Option may be granted to any Ten Percent Shareholder, unless (i) the Exercise
 Price for such Incentive Stock Option is at least 110% of the Fair Market Value of a Share
 on the date the Incentive Stock Option is granted and (ii) the date on which such Incentive
 Stock Option terminates is a date not later than the day preceding the fifth anniversary
 of the date on which the Incentive Stock Option is granted.

4.4. Any
 U.S. Grantee who disposes of Shares acquired upon the exercise of an Incentive Stock Option
 either (i) within two years after the date of grant of such Incentive Stock Option or (ii)
 within one year after the transfer of such Shares to the U.S. Grantee, shall notify the Company
 of such disposition and of the amount realized upon such disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. All
 Options granted to any U.S. Grantee under the Plan and this Sub-Plan are intended to be Nonstatutory
 Stock Options, unless the applicable Option Agreement expressly states that the Option is
 intended to be an Incentive Stock Option. If an Option is intended to be an Incentive Stock
 Option, and if for any reason such Option (or portion thereof) shall not qualify as an Incentive
 Stock Option (including without limitation by virtue of Section 5.2 of this Sub-Plan), then,
 to the extent of such disqualification, such Option (or portion thereof) shall be regarded
 as a Nonstatutory Stock Option granted under the Plan and this Sub-Plan; provided that such
 Option (or portion thereof) otherwise complies with the Plan's and this Sub-Plan's
 requirements relating to Nonstatutory Stock Options.

4.6. In
 no event shall any member of the Board, the Company or any Affiliate (or their respective
 employees, officers or directors) have any liability to any Grantee (or any other person)
 due to the failure of an Option, which is intended to be an Incentive Stock Option, to qualify
 for any reason as an Incentive Stock Option.

4.7. Incentive
 Stock Options may only be granted to Employees of the Company, its Parent or any Subsidiary.
 Nonstatutory Stock Options may be granted to Employees or other Service Providers of the
 Company or any Affiliate.

4.8. No
 bonus shares may be issued to U.S. Grantees.

**5.** **EXERCISE OF OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Each
 Option shall be exercisable after the Option becomes a vested Option, subject to the provisions
 of the Plan and this Sub-Plan; provided, however, that no Option shall be exercisable after
 the earlier of: (i) the Expiration Date set forth in the Option Agreement under which the
 Option was granted; (ii) in the event of the grant of Incentive Stock Options, the expiration
 of ten (10) years from the date of grant; (iii) in the event of the grant of Incentive Stock
 Options to Ten Percent Shareholders, the expiration of five (5) years from the date of grant;
 or (iv) as otherwise provided by the Plan or this Sub-Plan.

5.2. To
 the extent the aggregate Fair Market Value (determined at the date of grant) of the Shares
 with respect to which Incentive Stock Options are exercisable for the first time by any U.S.
 Grantee during any calendar year under all equity plans of the Company and any Affiliate
 exceeds USD100,000, the Options or portions thereof which exceed such limit (according to
 the order in which they were granted) shall be treated as Nonstatutory Stock Options.

**6.** **Exercise PRICE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. In
 the case of an Incentive Stock Option, the Exercise Price shall be determined subject to
 the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in
 case of an Incentive Stock Option granted to a Ten Percent Shareholder, the Exercise Price
 shall be no less than one hundred and ten percent (110%) of the Fair Market Value per Share
 on the date of grant.

(ii) in
 case of an Incentive Stock Option granted to any U.S. Grantee who is not a Ten Percent Shareholder,
 the Exercise Price shall be no less than one hundred percent (100%) of the Fair Market Value
 per share on the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. In
 the case of a Nonstatutory Stock Option, the Exercise Price shall be no less than one hundred
 percent (100%) of the Fair Market Value per Share on the date of grant and shall be subject
 to such terms and conditions as required under Section 409A of the Code and the applicable
 U.S. Tax Regulations and any applicable guidance thereunder in order to exempt such Option
 (to the maximum extent possible) from the requirements of Section 409A of the Code.

**7.** **ADJUSTMENTS** 

Notwithstanding anything contained in Sections 11-12 of the Plan, any changes or amendments to Incentive Stock Options pursuant to Sections 11-12 of the Plan shall, unless the Company determines otherwise, only be effective to the extent such changes or adjustments do not cause a "modification" (within the meaning of Section 424(h)(3) of the Code) of such Incentive Stock Options or adversely affect the tax status of such Incentive Stock Options.

**8.** **RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS** 

No Option or any right with respect thereto shall be assignable, transferable, or given as collateral, nor any right with respect thereto may be given to any third party whatsoever, other than (i) by will or by the laws of descent and distribution, or, (ii) in the case of a Nonstatutory Stock Option only, as specifically otherwise allowed under the Plan and applicable law. During the lifetime of the Grantee, all of the Grantee's rights to purchase Shares hereunder shall be exercisable only by the Grantee. Any action made directly or indirectly in contradiction to the aforementioned shall be null and void.

**9.** **AMENDMENT TO THE Plan AND sub-plan** 

Notwithstanding anything to the contrary in the Plan, the Board shall have the sole and full discretion and authority, without the need to submit its determinations or actions to the shareholders of the Company for their approval or authorization, unless such approval is required to comply with any applicable law (including, without limitation, Section 422 of the Code with respect to Options intended to be Incentive Stock Options), to make any amendment to this Sub-Plan. The Board may also, but need not, require that the Company's shareholders approve any other amendments to this Sub-Plan.

**10.** **Modification of Incentive Stock Options** 

With respect to U.S. Grantees, the Plan and this Sub-Plan shall be administered to comply with Section 422 (with respect to Options intended to be Incentive Stock Options) and to either comply with or be exempt from Section 409A of the Code. Without limiting the foregoing, the Board shall not take any action without the consent of the affected Grantee, if such action would have the purpose or effect of (i) modifying, extending or renewing any Incentive Stock Options (as the terms "modify," "extend" or "renew" are referred to in Section 424(h) of the Code) held by such Grantee or (ii) causing any Options held by any U.S. Grantee to become subject to (or to lose their exemption from) the provisions of Section 409A of the Code. Notwithstanding anything herein to the contrary, in no event shall any member of the Board, the Company or any Affiliate (or their respective employees, officers or directors) have any liability to any U.S. Grantee or to any other person if the Options issued hereunder that are intended to be exempt from or compliant with Section 409A are not so exempt or compliant.

11. Tax Withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1.  ***Withholding Requirements.*** Prior to the delivery of any Shares or cash pursuant to an Option (or
 exercise thereof), the Company will have the power and the right to deduct or withhold, or
 require a U.S. Grantee to remit to the Company, an amount sufficient to satisfy federal,
 state, local, foreign or other taxes (including the U.S Grantee's FICA obligation)
 required to be withheld with respect to such Option (or exercise thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.  ***Withholding Arrangements.*** The Board, in its sole discretion and pursuant to such procedures as
 it may specify from time to time, may permit a U.S Grantee to satisfy such tax withholding
 obligation, in whole or in part by (without limitation): (i) paying cash, (ii) electing to
 have the Company withhold otherwise deliverable Shares having a Fair Market Value equal to
 the minimum statutory amount required to be withheld, (iii) delivering to the Company already-owned
 Shares having a Fair Market Value equal to the statutory amount required to be withheld,
 provided the delivery of such Shares will not result in any adverse accounting consequences,
 as the Board determines in its sole discretion, or (iv) selling a sufficient number of Shares
 otherwise deliverable to the U.S Grantee through such means as the Board may determine in
 its sole discretion (whether through a broker or otherwise) equal to the amount required
 to be withheld. The amount of the withholding requirement will be deemed to include any amount
 which the Board agrees may be withheld at the time the election is made, not to exceed the
 amount determined by using the maximum federal, state or local marginal income tax rates
 applicable to the U.S Grantee with respect to the Option on the date that the amount of tax
 to be withheld is to be determined. The Fair Market Value of the Shares to be withheld or
 delivered will be determined as of the date that the taxes are required to be withheld.

12. No
 Effect on Employment or Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. Neither
 the Sub-Plan nor any Option will confer upon a U.S Grantee any right with respect to continuing
 the U.S Grantee's relationship as a Service Provider with the Company, nor will they
 interfere in any way with the U.S Grantee's right or the Company's right to terminate
 such relationship at any time, with or without cause, to the extent permitted by any applicable
 law.

**13.** **Effective date; term** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. This
 Sub-Plan shall be effective as of the date the Sub-Plan is approved by the Board, subject
 to the approval of the Plan by a majority of the votes cast by the holders of the Company's
 Shares at the next annual meeting or special meeting of shareholders or by the holders of
 a majority of the outstanding Shares by a written consent in lieu of a meeting. Any grants
 made under this Sub-Plan prior to such approval shall be effective when made (unless otherwise
 specified by the Board at the time of grant), but shall be conditioned on, and subject to,
 such approval of the Sub-Plan by such shareholders.

13.2. Options
 may be granted pursuant to this Sub-Plan, until ten (10) years from the date the Plan was
 approved by the Board, unless the Plan is terminated by the Board, in its discretion, prior
 to such date, but Options granted prior to such termination may extend beyond that date.

**APPENDIX A**

**TO**

**Pulsenmore ltd.**

**2023 UNITED STATES SUB-PLAN<br> TO THE<br> 2019 AMENDED SHARE INCENTIVE plan**

**(for California residents only, to the extent required by 25102(o))**

This <u>Appendix A</u> to the Pulsenmore 2023 United States Sub-Plan to the 2019 Amended Share Incentive Plan shall apply only to the U.S Grantees who are residents of the State of California and who are receiving an Option under the Sub-Plan. Capitalized terms contained herein shall have the same meanings given to them in the Sub-Plan, unless otherwise provided by this <u>Appendix A</u>. Notwithstanding any provisions contained in the Sub-Plan to the contrary and to the extent required by applicable laws, the following terms shall apply to all Options granted to residents of the State of California, until such time as the Board amends this <u>Appendix A</u> or the Board otherwise provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of each Option shall be stated in the Award Agreement; <u>provided</u>, <u>however</u>, that the term shall be no more than 10 years from the date of grant thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless determined otherwise by the Board, Options may not be sold, pledged, assigned, hypothecated, or otherwise transferred in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the U.S Grantee, only by the U.S Grantee. If the Board makes an Option transferable, such Option may only be transferred (i) by will, (ii) by the laws of descent and distribution, or (iii) as permitted by Rule 701 of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a U.S Grantee ceases to be a Service Provider, such U.S Grantee may exercise his or her Option within such period of time as specified in the Award Agreement, which shall not be less than 30 days following the date of the U.S Grantee's termination, to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of the Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for three months following the U.S Grantee's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a U.S Grantee ceases to be a Service Provider as a result of the U.S Grantee's disability, the U.S Grantee may exercise his or her Option within such period of time as specified in the Award Agreement, which shall not be less than six months following the date of the U.S Grantee's termination, to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for 12 months following the U.S Grantee's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If a U.S Grantee dies while a Service Provider, the Option may be exercised within such period of time as specified in the Award Agreement, which shall not be less than six months following the date of the U.S Grantee's death, to the extent the Option is vested on the date of death (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) by the U.S Grantee's designated beneficiary, personal representative, or by the person(s) to whom the Option is transferred pursuant to the U.S Grantee's will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for 12 months following the U.S Grantee's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Option shall be granted to a resident of California more than 10 years after the earlier of the date of adoption of the Sub-Plan or the date the Sub-Plan is approved by the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Board, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Sub-Plan, will adjust the number and class of Shares that may be delivered under the Sub-Plan and/or the number, class, and price of Shares covered by each outstanding Option; <u>provided</u>, <u>however</u>, that the Board will make such adjustments to an Option required by Section 25102(o) of the California Corporations Code to the extent the Company is relying upon the exemption afforded thereby with respect to the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This <u>Appendix A</u> shall be deemed to be part of the Sub-Plan and the Board shall have the authority to amend this <u>Appendix A</u> in accordance with Section 9 of the Sub-Plan.

## Exhibit 4.3

**Exhibit 4.3**

**Pulsenmore Ltd.**

**Compensation Policy for Company Officers**

---

| | |
|:---|:---|
| **א.** | **Background; Purpose of the Document** |

---

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 company attaches great importance to the human factor at all levels of the company, and in
 particular to officers at the management level of the company. Therefore, it is very important
 to properly and appropriately compensate the company's officers for their contribution
 to its business success, taking into account, among other things, the areas of responsibility
 of the officers and the company's risk management policy.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 company has established a compensation policy for executives that takes into account improvements
 in the company's business processes and conduct in its business environment and encourages
 increased profitability over time. The compensation policy was determined in a manner consistent
 with the company's business strategy, as well as in a manner intended to increase the
 sense of identification of the officers with the company and its activities, increase their
 satisfaction and motivation, and retain high-quality officers in the company over time.

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 compensation policy was established in accordance with the principles set forth in the Companies
 Law, 5759-1999 (**the** "**Companies Law** ").

&nbsp;&nbsp;&nbsp;&nbsp;4. It
 should be emphasized that this document does not establish any rights for the officers to
 whom the remuneration policy principles apply or for any other third party. The company is
 not obligated to grant the officers the components specified in the remuneration policy,
 in whole or in part, and is not obligated to grant the maximum rate set for any of the remuneration
 components. The remuneration components to which an officer will be entitled will be only
 those approved for him individually by the authorized bodies of the company (the remuneration
 committee, the board of directors, and the general meeting, as applicable, and subject to
 the provisions of any law).

&nbsp;&nbsp;&nbsp;&nbsp;5. This
 policy should not be construed as exhaustive of all legal provisions. This compensation policy
 does not replace or detract from the provisions set forth in existing laws and regulations.
 The definitions and terms in this policy shall have the meanings assigned to them in the
 Companies Law, unless otherwise defined in the compensation policy.

&nbsp;&nbsp;&nbsp;&nbsp;6. The
 compensation policy shall apply to compensation approved from the date of adoption of the
 policy by the company onwards. It should be noted that the compensation policy does not affect
 the company's existing engagements with officers.

&nbsp;&nbsp;&nbsp;&nbsp;7. This
 policy is written in the masculine form but refers to both men and women.

---

| | |
|:---|:---|
| **ב.** | **Remuneration Policy Principles** |

---

The terms of office and employment of officers in the company will be determined with consideration and in accordance with the following principles:

&nbsp;&nbsp;&nbsp;&nbsp;8. When
 reviewing and approving the terms of office and employment of an officer, the Compensation
 Committee and the Board of Directors shall consider all components of compensation, including
 monthly salary, fringe benefits, bonuses and grants, equity compensation, retirement benefits
 (grants, payments, rewards, compensation, or any other benefit provided to the office holder
 in connection with the termination of his or her position in the company, including a notice
 period), as well as any benefit, payment, or commitment to pay or provide such a benefit,
 if any, provided due to such tenure or employment.

&nbsp;&nbsp;&nbsp;&nbsp;9. The
 Compensation Committee and the Board of Directors shall examine the economic value of the
 entire compensation package, taking into account the company's financial results and,
 to the extent that it is based on targets, an examination of those targets.

&nbsp;&nbsp;&nbsp;&nbsp;10. Furthermore,
 in accordance with the company's risk management policy, it must be ensured, as far
 as possible, that the components of the remuneration are challenging, but do not encourage
 risk-taking beyond the range of risk that the company desires or the performance of actions
 that constitute a conflict of interest for the company.

&nbsp;&nbsp;&nbsp;&nbsp;11. When
 reviewing and approving the terms of office and employment of an office holder, the compensation
 committee and the board of directors shall consider, among other things, the office holder's
 education, skills, expertise, professional experience, and achievements within the company
 (if employed prior to the date of approval) and outside the company. In addition, if required
 by the Compensation Committee or the Board of Directors, comparative data will be presented
 regarding officers in public companies that are as similar as possible to the Company and
 whose shares are traded on the Tel Aviv Stock Exchange Ltd.

When approving the terms of office and employment of an officer appointed to the company for the first time, certificates and documents attesting to the officer's education and professional experience shall be presented to the members of the Compensation Committee and the Board of Directors, to the extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;12. Once
 a year, no later than February, the Compensation Committee shall review the amounts specified
 in the policy and consider updating them in accordance with market data.

&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Remuneration ratio</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. When
 determining the terms of office or employment, the Compensation Committee and the Board of
 Directors (as applicable, as the case may be) shall review the ratio between the cost of
 the terms of office and employment of the office holder and the cost of the salaries of the
 rest of the company's employees, and shall indicate whether, in their opinion, this
 is an appropriate and reasonable ratio considering the nature of the company, its size, its
 workforce mix, and its field of activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. As
 of the date of approval of this policy, the ratio between the average cost of the terms of
 office and employment of the chairman of the board, the company's CEO, and non-director
 officers (based on their salary cost for a 100% position in the company) and the average
 and median salary costs of the company's other employees are as follows:

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;**Average** | &nbsp;&nbsp;**Median** |
| Company CEO | 540% | 667% |
| Active Chairman of the Board | 900% | 1111% |
| Other officers | 326% | 402% |
| Vice President Overseas | 240% | 296% |

---

The Compensation Committee and the Board of Directors believe that these ratios are reasonable, fair, and justified given the nature of the positions held by the officers and their areas of responsibility, and that these ratios do not adversely affect labor relations within the company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. The
 ratio between the variable and fixed components to be paid to the office holder will be determined
 in accordance with the company's risk management policy and the objectives of this
 policy. The alignment between the remuneration components will be reflected in appropriate
 payment while encouraging measured risk-taking that will improve the company's performance.
 In any given year, the maximum variable component ratio shall not exceed:<sup>1</sup>

---

| | |
|:---|:---|
| | **Maximum variable components** |
| Company CEO | &nbsp;&nbsp;350% |
| Active Chairman of the Board | &nbsp;&nbsp;350% |
| Other officers | &nbsp;&nbsp;183% |
| Vice President Overseas | &nbsp;&nbsp;18% |

---

<sup>1</sup> It should be emphasized that this refers only to the planned ratio, assuming receipt of the full annual grant determined for each of the officers in the company or in the relevant subsidiaries. The actual ratio in a given year between the components of the compensation package may differ due to underperformance or overperformance, which may affect the variable compensation as described in this policy. In calculating the ranges described above, special bonuses, retirement bonuses, adjustment bonuses, and the like were not taken into account.

&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Insignificant change in terms of office and employment</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. A
 non-material change in the terms of office and employment of the company's CEO (who
 is not a director) will be approved by the compensation committee and the company's
 board of directors only, subject to the condition that the terms of office and employment
 of the company's CEO after the said change are in line with the compensation policy.
 In the case of a CEO who is a director and/or controlling shareholder, the approval will
 be made in accordance with the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. A
 non-material change in the terms of office and employment of a vice president or other subordinate
 officer of the CEO shall be approved by the CEO of the company alone, subject to the condition
 that the terms of his office and employment after the said change are consistent with the
 remuneration policy.

For the purposes of this policy, a "non-material change" shall be deemed to be a change of up to ten percent (10%) in relation to the approved compensation package (cumulatively over the entire compensation policy period) and provided that it does not exceed the ceilings specified in this policy.

---

| | |
|:---|:---|
| **ג.** | **Fixed Components** |

---

&nbsp;&nbsp;&nbsp;&nbsp;15. The
 maximum monthly base salary (gross, excluding benefits and social security) ()"**base salary**") for company executives is as follows:

---

| | |
|:---|:---|
| **Position** | **Maximum monthly base salary for 100% position** |
| CEO | NIS 130,000 |
| Active Chairman of the Board | NIS 130,000 |
| Other position (except director) | NIS 75,000 |
| Vice President abroad | $25000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;16. The
 base salary of each officer will be reviewed by the Compensation Committee and the Board
 of Directors from time to time and updated as necessary, after reviewing it against the company's
 business situation and the workforce employed at that time and, if necessary, against external
 market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;17. Officers
 employed under an employment agreement (i.e., not providing management services under a management
 agreement with a company they own) will be entitled to social benefits customary in the labor
 market for senior executives and in accordance with company practice, such as contributions
 to a provident fund, pension and executive insurance for benefits and compensation, which
 shall not be less than the contributions stipulated by law, contributions to a study fund,
 disability insurance, vacation, sick leave, and convalescence pay.

It should be clarified that for officers serving under a management agreement with a company they own, there will be no employer-employee relationship with the company and they will not be entitled to the conditions set forth in this section, as these are included in the management fees as stated. The inclusion will be made by adding 30% to the accepted gross salary as compensation for the lack of social benefits. In addition, an additional amount will be added based on a calculation of additional benefits waived by the officer (e.g., a grade 6 vehicle).

&nbsp;&nbsp;&nbsp;&nbsp;18. The
 terms of service and employment for officers, whether serving in the company under a management
 agreement or employed as salaried employees of the company, may include additional benefits,
 including: A vehicle (in kind, under an operating lease or in value <u>)</u> and vehicle expenses as customary for officers of their rank, vehicle and telephone
 allowances, study fund allowances above the tax exemption ceiling, 13th month salary, telephone
 and mobile phone expenses (including travel expense reimbursement), entitlement to sick pay
 from the first day of absence, annual leave, holiday gifts, medical examinations, etc.

In addition, office holders may be entitled to reimbursement/payment of reasonable expenses incurred in the course of their duties in accordance with company policy as determined from time to time, including hospitality and per diem expenses incurred in the course of their duties in accordance with company procedures. There is no ceiling on the amount of such reimbursement.

The company shall be entitled to deduct any tax imposed on the office holder in respect of any component or components of the remuneration, including any benefit granted to him/her.

---

| | |
|:---|:---|
| **ד.** | **Variable components** |

---

&nbsp;&nbsp;&nbsp;&nbsp;19. The
 company may grant officers an annual bonus based on parameters and targets set out in a bonus
 plan or individually for each officer or as part of their employment or service agreement,
 for each year or longer period, at the discretion of the body authorized to set the targets.
 The annual bonus for officers will be based on measurable and qualitative targets, or any
 combination thereof.

The quantitative indicators will be determined in advance, while performance evaluation based on qualitative indicators will be reviewed retrospectively. The board of directors may decide to change the targets for any of the company's officers after the recommendation and approval of the compensation committee. It is clarified that targets will be changed retroactively only if there are special circumstances (e.g., a change in role during the year, a change in the company's activities or assets, entry into new projects, execution of material transactions during the year, requiring the officer to divert his or her managerial attention to them) or material events that have occurred, justifying the change in targets, as required by the circumstances or special events, all without prejudice to the company's interests.

The relative weight of the personal goals and qualitative goals out of the total goals for the bonus will be as follows:

---

| | | |
|:---|:---|:---|
| **Position** | **Relative weight** | **Relative weight** |
| **Position** | **Measurable personal goals** | **Qualitative goals** |
| Company CEO | &nbsp;&nbsp;Up to 40% &nbsp;&nbsp;Balance | &nbsp;&nbsp;Up to 10% |
| Other officer (except director) | &nbsp;&nbsp;Up to 70% &nbsp;&nbsp;Balance | &nbsp;&nbsp;Up to 10% |

---

However, the scope of the grant to the company's CEO, based on qualitative targets at the company's discretion, shall not exceed three (3) times the base salary.

&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Measurable targets</u> 

Measurable targets will include one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1. Company-level
 targets: These will include measurable components that the Compensation Committee will select
 at the beginning of each year for that year's bonus from among components such as those
 listed below: cash flow, net profit, EBITDA, operating profit, pre-tax profit, sales, revenue,
 orders received, operational targets, strategic targets such as: meeting the schedule of
 significant projects, achieving significant milestones, entering into significant agreements,
 etc., as well as corporate governance targets and other general targets of the company. It
 should be noted that the above list is presented as an example and is not exhaustive, and
 that different positions may be assigned different targets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2. Personal
 goals: These will include measurable components that are directly affected by the activities
 of the relevant position holder, such as: an index of completion of milestones in significant
 projects; adherence to budget; marketing and sales goals as relevant to the specific position;
 an index of compliance with internal procedures and compliance with legal requirements.

In addition to the targets themselves, the relevant authorized body will determine guidelines or a numerical formula for calculating the levels of eligibility for the bonus in accordance with the achievement of the defined targets, such as a minimum eligibility threshold (below which no bonus will be paid for that target), relative eligibility and maximum eligibility for that target, and the relative weight of each of the selected targets. In the event that the relevant authorized body has not determined eligibility levels as described above, the calculation of the relative eligibility of the office holder for each target will be performed on a linear basis, so that the office holder will be eligible for the relative portion of the annual grant or the relative portion for each of the targets separately, as determined for him/her in accordance with his/her percentage of achievement of the targets (for example: meeting 80% of the targets (or a specific target) entitles the holder to 80% of the grant determined for full achievement of the targets (or the relevant target)).

&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Qualitative targets</u> 

Performance evaluation, which will be carried out as customary in the company as part of the employee evaluation process and will also refer to non-financial or non-measurable criteria. The evaluation will refer, among other things, to the long-term contribution of the employee and his or her long-term performance.

&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Setting targets</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1. The
 company's authorized bodies responsible for setting the measurable targets for which
 bonuses will be paid in a given year are as follows: With regard to the chairman of the board
 of directors or a director – the general meeting (except for the exceptions specified
 in this compensation policy); With regard to the company's CEO – the compensation
 committee and the board of directors; With regard to other officers – the company's
 CEO or the compensation committee or the company's board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2. The
 company bodies authorized to approve grants based on criteria that cannot be measured are
 as follows: With regard to the chairman of the board of directors or a director – the
 general meeting; With regard to the company's CEO (who is not a director) and other
 company officers – the Compensation Committee and the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.3. The
 meeting hereby authorizes, subject to its approval, the compensation policy and the officers
 mentioned in the above sections to set the targets.

&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Threshold conditions for eligibility for an annual bonus</u> 

The relevant bodies shall determine one or more threshold conditions, such as: a percentage of the revenue target set in the annual work plan or a minimum profit amount or any other index, failure to meet which will prevent payment of part of the annual bonus based on measurable targets. However, in such cases, the Compensation Committee and the Board of Directors may decide, for reasons to be recorded, to pay part of the said grant, taking into account, among other things, events or circumstances that have occurred and justify such payment.

&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Annual Bonus Ceiling</u> 

The maximum annual bonus for full-time company executives is as follows:

---

| | |
|:---|:---|
| **Position** | **Maximum annual bonus** |
| Company CEO | NIS 780,000 |
| Active Chairman of the Board | NIS 780,000 |
| Other position (except director) | NIS 260,000 |
| Vice President abroad | $100000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Grant payment date</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1. The
 annual grant will be paid to office holders once a year, after receiving the approvals required
 by law, shortly after the approval of the company's audited financial statements for
 the relevant year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.2. The
 Compensation Committee may approve the advance payment of an annual bonus, or payment on
 account of the annual bonus (including on a regular basis as monthly or quarterly payments),
 as the Compensation Committee deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.3. The
 Company's Board of Directors may approve, in relation to any of the officers, that
 the relevant annual bonus be paid in part or in full through equity instruments (in which
 case the restrictions set forth in Section 24 shall apply in relation to the value of the
 equity instruments on the date of issuance).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.4. An
 officer shall be required to repay to the company any amount overpaid ()"**repayment amount**") in respect of a bonus paid to him as part of the advance bonus referred
 to above, which in retrospect turned out to be ineligible for the officer, in whole or in
 part.

The company shall be entitled to offset the refund amount owed to it from any amount it is required to pay to the officer (even if the officer's term of office has ended). In any case, the relevant authorized body shall determine the timing, manner, and conditions of such refund.

&nbsp;&nbsp;&nbsp;&nbsp;26. <u>One-time events</u> 

For the purpose of calculating the grants (including eligibility for grants), the Compensation Committee and the Company's Board of Directors shall be entitled (but are not required to) exclude one-time events from the company's financial results, whether such exclusion will increase the grant or create eligibility for a grant, or whether such exclusion will reduce the grant or result in no eligibility for a grant, depending on the nature of the event and its impact, as detailed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1. <u>Business changes</u>: One-time transactions that are not part of the normal course of business, whether
 or not they were taken into account in advance when determining the company's budget.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.2. <u>Accounting changes</u>: Changes in accounting standards during the year or in the interpretation of
 accounting bodies or the Securities Authority regarding their application, early adoption
 of accounting standards, change in the application of accounting policy, change in accounting
 classification, material changes in estimates, events requiring restatement of comparative
 figures for previous periods that have a material impact on the results for the reporting
 period, and so forth.

For the avoidance of doubt, an accounting change that affects comparative figures for previous periods will not affect the remuneration actually paid in the years prior to the adoption of the change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.3. <u>Tax changes</u>: Changes in tax rates, changes in legislation, regulations, or the position of
 the tax authorities in Israel, or an arrangement or ruling with the tax authorities, resulting
 in material changes in tax expenses or tax payments, changes in tax expenses or tax payments
 for previous years, whether due to an agreement or an order, and so forth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.4. <u>Force majeure events</u>: Force majeure events or a general state of emergency or attacks on the
 company and its systems (including cyber attacks), etc.

&nbsp;&nbsp;&nbsp;&nbsp;27. <u>Eligibility of an employee who has terminated their employment</u> 

As a rule, an office holder who ceases to be employed by or provide services to the company during a calendar year shall be entitled to payment of the proportional part of the bonus for that year, according to the period of his or her term of office in that year, as well as the full bonus for predetermined targets that the office holder met or fulfilled at the end of his or her term of office. However, the company's board of directors may decide, at its discretion, that the officer shall not be entitled to payment of the proportional part of the bonus.

&nbsp;&nbsp;&nbsp;&nbsp;28. In
 the event that the company's consolidated and audited financial statements are restated,
 such that the amount of the annual bonus payable to the officer for that year, calculated
 in accordance with the amended data, the officer would have received a grant in a different
 amount, the company shall pay the officer or the officer shall return to the company, as
 the case may be, the difference between the amount of the grant he received and that to which
 he was entitled due to the said amendment, within a period to be determined by the board
 of directors, which shall not exceed six (6) months (subject to the possibility of extending
 the period by up to six (6) additional months if the amount of the refund exceeds thirty
 percent (30%) of the officer's annual base salary), provided that 12 quarters have
 not yet passed since the date of approval of the grant to the officer. It should be clarified
 that the restatement of data in the financial statements resulting from changes in the law,
 regulations, or accounting rules shall not be considered a restatement that would trigger
 the provisions of this section.

&nbsp;&nbsp;&nbsp;&nbsp;29. In
 addition, in special cases, the board of directors may reduce the annual grant or defer payment
 in whole or in part.

---

| | |
|:---|:---|
| **ה.** | **Special bonus** |

---

&nbsp;&nbsp;&nbsp;&nbsp;30. The
 board of directors, after approval by the compensation committee, may decide to grant a special
 bonus for exceptional efforts or achievements by an officer of the company ()"**special bonus** ").

&nbsp;&nbsp;&nbsp;&nbsp;31. Each
 year, the amount of the special bonus shall not exceed an amount equal to twelve (12) salaries
 of the relevant officer. However, if the special bonus is given to the company's CEO
 for discretionary goals that weren't set in advance, the special bonus, together with
 any other discretionary bonus given to the company's CEO that year, can't be
 more than three (3) times the base salary.

For the avoidance of doubt, the special bonus is in addition to the ceilings set forth in Section 24 .

&nbsp;&nbsp;&nbsp;&nbsp;32. <u>IPO Bonus</u> 

The company has decided to exclude from this compensation policy any special bonus granted in connection with the company's listing on the Tel Aviv Stock Exchange Ltd. The total special grants for this event, in relation to all officers of the company, shall not exceed twelve (12) times the base salary of the relevant officer.

Furthermore, if the company conducts an offering or registration for trading on a stock exchange outside of Israel in the future, the relevant authorized body shall be entitled to decide on the payment of a special grant to any of the officers (including the CEO) in an amount equal to up to twelve (12) times the base salary of the relevant officer.

For the sake of good order, the IPO bonuses referred to above are in addition to the ceilings set forth in Section 24 .

&nbsp;&nbsp;&nbsp;&nbsp;33. <u>Signing bonus</u> 

The company may grant a signing bonus of up to two (2) times the base salary of the relevant officer. For the sake of clarity, the signing bonus is in addition to the ceilings set forth in Section 24 . The officer may be required to return to the company all or part of the signing bonus granted to him if he leaves the company of his own accord within two years of the commencement of his employment (claw back).

---

| | |
|:---|:---|
| **ו.** | **Equity compensation** |

---

&nbsp;&nbsp;&nbsp;&nbsp;34. The
 Compensation Committee and the Company's Board of Directors shall be entitled, subject
 to the provisions of the law, to grant to the Company's officers, for the purpose of
 incentivizing the officers to increase the Company's profits and for the purpose of
 strengthening the connection between the interests of the Company's officers and its
 shareholders, restricted stock units (RSUs), performance shares (PSUs), stock options, phantom
 shares (options that can be settled in cash), non-recourse loans and loan guarantees for
 the purchase of company shares, all in accordance with a long-term compensation plan to be
 formulated and adopted by the company's institutions from time to time.<sup>2</sup>
 As of the date of approval of this compensation policy, the company has an option plan for
 employees and officers, which was approved on September 26, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;35. The
 exercise price of the options will be determined by the board of directors for each grantee
 and as specified in the relevant allocation agreement, and, where relevant to the grantee,
 in accordance with the principles of the compensation policy, provided that, unless otherwise
 specified, the exercise price of options for assignees who are officers of the company will
 be determined in accordance with the average price of the company's shares on the stock
 exchange during the thirty (30) trading days preceding the date of the board of directors'
 decision approving the granting of the equity compensation for the first time to the assignee,
 but not less than the share price at the end of the last trading day preceding the date of
 the board of directors' decision approving the granting of the equity compensation
 to the grantee for the first time.<sup>3</sup> The exercise price will be adjusted for
 dividend distributions.

&nbsp;&nbsp;&nbsp;&nbsp;36. In
 the case of options, they may be exercised by way of cashless exercise, as determined by
 the board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;37. The
 annual value of the benefit on the date of grant (and in relation to equity compensation
 paid in cash, such as phantom shares, on the date of payment) shall not exceed:

---

| | |
|:---|:---|
| **Position** | **Annual benefit value ceiling** |
| Company CEO | 3 times annual salary |
| Active Chairman of the Board | 3 times annual salary |
| Other position (except director) | 1.5 times annual salary |
| Vice President abroad | 1.5 times annual salary |

---

The annual benefit value will be calculated on a straight-line basis over the vesting period .

---

| | |
|:---|:---|
| 2 | All of the company's securities will be listed for trading on the stock exchange. The listing of any securities allocated by the company under the compensation policy will be subject to the provisions of the regulations and guidelines of the stock exchange as they will be at that time. |
| 3 | The exercise price shall not be less than the minimum price set forth in the provisions of the regulations and guidelines of the stock exchange as they shall be at that time. |

---

&nbsp;&nbsp;&nbsp;&nbsp;38. Unless
 the Board of Directors has determined otherwise with respect to a particular grantee or a
 particular grant (a determination which shall not be subject to shareholder approval, unless
 such approval is required by applicable law) and such provision has been included in the
 relevant grant agreement, then securities shall vest (become exercisable) over a period of
 four (4) years, with twenty-five percent (25%) of the total securities granted to that assignee
 maturing and becoming exercisable after every twelve (12) full months of continuous service
 by the assignee.

&nbsp;&nbsp;&nbsp;&nbsp;39. The
 Board of Directors may determine that in the event of a merger of the Company (a merger of
 the Company with or into another corporation, or the sale of all or substantially all of
 the Company's assets or shares) or a change in control of the Company, all or part
 of the balance of securities that have not yet matured will be accelerated.

&nbsp;&nbsp;&nbsp;&nbsp;40. The
 exercise period for each matured security shall be up to seven (7) years from the date of
 its grant (or a shorter period as determined by the company's officers).

&nbsp;&nbsp;&nbsp;&nbsp;41. The
 Compensation Committee shall be entitled to condition the vesting of all or part of the securities
 on the achievement of additional targets to be determined at the time of allocation, and
 to determine conditions under which an officer may be disqualified from receiving securities
 that have not yet vested.

---

| | |
|:---|:---|
| **ז.** | **Termination of office** |

---

&nbsp;&nbsp;&nbsp;&nbsp;42. All
 office holders shall be entitled to the release of funds accumulated on their behalf and
 in their name in designated pension and severance pay funds.

&nbsp;&nbsp;&nbsp;&nbsp;43. All
 officers shall be entitled to severance pay in accordance with the requirements of the Severance
 Pay Law.

&nbsp;&nbsp;&nbsp;&nbsp;44. Company
 officers shall be entitled to a period of advance notice in terms of salary upon termination
 of their employment (provided that their termination is not under circumstances that do not
 entitle them to severance pay) as described in the table below:

---

| | | |
|:---|:---|:---|
| | &nbsp;&nbsp;**Maximum advance notice** | &nbsp;&nbsp;**Maximum notice period in the event of a change of control or merger** |
| CEO | 6 months' gross base salary | 6 months' gross base salary |
| Active Chairman of the Board | &nbsp;&nbsp;3 months' gross base salary | &nbsp;&nbsp;3 months' gross base salary |
| Other officers (including vice presidents abroad) | &nbsp;&nbsp;4 months' gross base salary | &nbsp;&nbsp;4 months' gross base salary |

---

During the notice period, the officer is required to continue to be employed by the company, unless the CEO (with regard to an officer) or the chairman of the board (with regard to the CEO) or the general meeting (with regard to the chairman of the board) decides that he will not continue to perform his duties. During the notice period, the employer-employee relationship between the company and the office holder (or management services under a management agreement with a company owned by them) and therefore the office holder shall be entitled to all components of his compensation, including an annual bonus to which the office holder is entitled, unless the board of directors has decided otherwise as detailed in section27 above, and only if he continues to be employed by the company pro rata according to the actual period of employment in that year.

&nbsp;&nbsp;&nbsp;&nbsp;45. The
 Compensation Committee and the Board of Directors are authorized to determine for an officer
 (either in advance or during his employment) a non-competition and adjustment retirement
 bonus, provided that the officer has been employed by the company or has provided its services
 for at least four (4) years. In determining the amount of the retirement grant, the following
 considerations shall be taken into account: the term of office or employment of the office
 holder, the terms of his or her office and employment during that period, the company's
 performance during that period, the office holder's contribution to the achievement
 of the company's goals and profits, and the circumstances of the retirement. Eligibility
 for a retirement grant as referred to in this section shall not be granted as a matter of
 routine, in accordance with the conditions set forth in this section, only if the Compensation
 Committee and the Board of Directors believe that, under the specific circumstances, there
 is a special need to grant the grant.

Retirement grants shall be limited to:

---

| | |
|:---|:---|
| | &nbsp;&nbsp;**Retirement/non-competition/adjustment grant ceiling** |
| CEO | 9 months' gross salary |
| Active Chairman of the Board / Director providing services to the company | 9 months' gross salary |
| Other officers (including vice presidents abroad) | 4 months' gross salary |

---

For a chairman of the board or director providing services to the company, the retirement bonus ceiling will be calculated based on the scope of the position.

---

| | |
|:---|:---|
| **ח.** | **Indemnification, exemption, and liability insurance for officers** |

---

&nbsp;&nbsp;&nbsp;&nbsp;46. The
 company's officers and directors will be entitled to an officers' liability insurance
 policy and letters of exemption and indemnification in accordance with the provisions of
 the law, as approved by the company and provided (if provided) from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;47. The
 main terms and conditions of the directors' and officers' liability insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.1. The
 limit of liability shall not exceed $10 million per event and per annual insurance period,
 plus reasonable expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47.2. The
 premium and deductible shall be in accordance with market conditions in that year. The company
 shall consult with its external insurance advisors to establish such market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;48. Any
 purchase of such an officers' insurance policy or its renewal during the term of the
 compensation policy shall not be subject to further approval by the company's shareholders'
 meeting, provided that the compensation policy has been approved by the company's general
 meeting and the company's compensation committee confirms that the policies purchased
 meet the conditions set out above , are in line with market conditions, and are not likely
 to have a material effect on the company's profitability, assets, or liabilities .

---

| | |
|:---|:---|
| **ט.** | **Director Compensation** |

---

&nbsp;&nbsp;&nbsp;&nbsp;49. The
 company's directors, including external directors and directors who are controlling
 shareholders or interested parties in the company, and except for directors who hold an active
 position (such as the chairman of the board of directors or a director who also serves as
 an officer of the company) or in an additional position in the company or who provide services
 to the company and receive remuneration for this, shall be entitled to remuneration and reimbursement
 of expenses in accordance with the Companies Regulations (Rules Regarding Remuneration and
 Expenses for External Directors), Tashas-2000, as determined by the company from time to
 time. A non-active chairman of the board of directors shall be entitled to remuneration of
 up to twice the remuneration paid to an ordinary director.

&nbsp;&nbsp;&nbsp;&nbsp;50. Notwithstanding
 the foregoing, these actions shall not be considered a deviation from this policy, provided
 that, as required, the said actions have been duly approved by the required bodies in accordance
 with the provisions of the Companies Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50.1. The
 director has waived all or part of the remuneration to which he or she is entitled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50.2. The
 bodies authorized by law have approved other or additional payment to the director for serving
 in an additional position in the company or in an affiliated company.

&nbsp;&nbsp;&nbsp;&nbsp;51. The
 company may grant directors of the company, including outside directors, equity compensation
 in accordance with the limitations set forth in this compensation policy and subject to the
 provisions of any law , provided that the total value of the benefit to each director (except
 for directors who hold an active position, such as: the chairman of the board of directors
 or a director who also serves as an officer of the company) shall not exceed, on the date
 of grant, twice the basic annual compensation for each vesting year. With respect to directors
 serving in an active capacity, the benefit value limitation included in section37 above shall
 apply .

---

| | |
|:---|:---|
| **י.** | **Additional general provisions** |

---

&nbsp;&nbsp;&nbsp;&nbsp;52. The
 officers to whom the compensation policy applies may be employees of the company or independent
 contractors who provide services to it, as well as employees or independent contractors of
 subsidiaries, provided that they are defined as officers of the company itself. If an officer
 provides services to the company as an independent contractor, the provisions of the compensation
 policy will apply with the necessary changes, the compensation to the officer will be paid
 against an invoice, and the compensation components will be normalized so that, from an overall
 financial perspective, they will be consistent with the provisions of this policy.

&nbsp;&nbsp;&nbsp;&nbsp;53. The
 compensation policy will apply to compensation approved from the date of adoption of the
 policy in accordance with the provisions of the law and thereafter. It should be noted that
 the compensation policy does not affect the company's existing engagements with officers.

## Exhibit 4.4

**Exhibit 4.4**

![](ex4-4_001.jpg)

**Pulsenmore Ltd.**

**("the Company")**

To:

______________

**Liability waiver and commitment to indemnify**

1. <u>General</u> 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. The
 Company Board of Directors resolved on March 31, 2021 and the General Meeting of Company
 shareholders resolved on April 13, 2021 that the Company shall waive the liability of officers,
 including Board member thereof, whether currently in office or to be in office in future
 from time to time, with the Company, with subsidiaries of the Company or by request of the
 Company, of subsidiaries of the Company – at any Other Company in which the Company
 holds shares, directly or indirectly, or in which the Company has any interest (" Other
 Company "; The Company, subsidiaries and Other Companies,
 jointly or severally: "the Group ") as
 officers, as this term is defined in the Corporate Act, 1999 ("the Corporate
 Act ") (including controlling shareholders or relatives
 thereof) ("the Officer ") of the Group
 or other officers of the subsidiary or Other Company, with respect to any damage caused by
 breach of their duty of care towards the Company, and that the Company shall provide to the
 officers, as defined above, a commitment to indemnify them for any indebtedness or expense
 imposed on them due to any action taken by them prior to award of this letter of waiver and
 commitment to indemnify, or to be taken thereafter in the course of their office as such
 officers, all as set forth in this letter of waiver and commitment to indemnify.

1.2. Terms
 used in this liability waiver and commitment to indemnify and not defined herein shall have
 the meaning assigned to them in the Corporate Act, unless otherwise required by context.
 This document is in the masculine gender, but is intended equally for both genders.

2. <u>Liability waiver due to breach of duty of care towards the Company</u> 

&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 Company hereby irrevocably waives your liability, to the maximum extent allowed by law, for
 any damage of any kind incurred or to be incurred by the Group, directly or indirectly, if
 caused or to be caused due to breach of duty of care towards the Company by any action taken
 by you by virtue of being an Officer of the Group or holder of another position with a subsidiary
 or Other Company.

2.2. Notwithstanding
 the foregoing, the liability waiver shall not apply to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1. Breach
 of fiduciary duty towards the Company.

2.2.2. Breach
 of duty of care partitioned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3. Breach
 of due care duty with intent or recklessness, unless made with negligence alone.

2.2.4. Action
 intended to procure illegal personal gains.

2.2.5. Fine,
 civilian fine, monetary sanction or forfeit imposed on you.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. Provisions
 of this section of the liability waiver shall not derogate from the Company's commitment
 to indemnify below, nor from any of your rights pursuant to an insurance policy issued to
 you.

2.4. If
 you are or will be serving as Board member of the Group – the waiver pursuant to this
 agreement shall also apply to any substitute Board members duly appointed by you.

3. <u>Commitment to indemnify</u> 

The Company hereby irrevocably commits to you to indemnify you to the widest extent allowed by law and by Company Bylaws, for any indebtedness or expense, as set forth below, to be imposed on you<sup>[1]</sup> or to be expended by you due to any action you have taken or will take, including any decision, deed or omission or any derivative thereof, including your actions prior to the date of this liability waiver and commitment to indemnify, by virtue of you being an Officer of the Group or holder of another position with a subsidiary or Other Company, directly or indirectly related to one or more of the events set forth in this liability waiver and commitment to indemnify, or part thereof or directly or indirectly related to them, subject to provisions and limitations set forth in this liability waiver and commitment to indemnify.

4. <u>Indebtedness and expenses subject to indemnification</u> 

&nbsp;&nbsp;&nbsp;&nbsp;4.1. Indemnification
 shall apply to the following indebtedness and expenses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. Monetary
 liability to be imposed upon you towards another person by any verdict, including a verdict
 issued in settlement or an arbitration verdict upheld by a Court of Law, provided that the
 maximum indemnity amount not exceed the amount set forth below.

4.1.2. Reasonable
 litigation expenses, including legal fees, to be expended by you due to any investigation
 or proceeding conducted against you by an authorized entity to conduct such investigation
 or proceedings, and which has ended with no indictment against you (as defined in the Corporate
 Act) and with no financial liability imposed on you in lieu of criminal proceedings (as defined
 in the Corporate Act), or which has ended with no indictment against him but with financial
 liability imposed on you in lieu of criminal proceedings in a felony not requiring proof
 of criminal intent or with regard to monetary sanctions.

In this section, "**proceedings ended with no indictment in a matter subject to criminal investigation**" and "**financial liability imposed on him in lieu of criminal proceedings**" - as defined in section 260 of the Corporate Act, as amended from time to time.

<sup>1</sup> Should the services as Officer be provided through a company controlled by the Officer, and such company be liable for any indebtedness or expense indemnifiable pursuant to this liability waiver and commitment to indemnify, with respect to the office of the Officer, then such company would be entitled to indemnification and the provisions of this indemnification letter shall apply accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3. Reasonable
 litigation expenses, including attorney fees, to be incurred by you or imposed on you by
 a Court of Law, in a proceedings filed against you by the Group or by the other Company or
 on its behalf or by another person or by criminal indictment of which you are found not guilty
 or by criminal indictment of which you are found guilty of a felony not requiring proof of
 criminal intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.4. Payment
 to the party injured by the breach, as set forth in Section 52.54(a)(1)(a) of the Securities
 Act, 1968 (" Securities
 Act ") to be imposed on you or any payment to the
 party injured by the breach pursuant to any other administrative proceeding or law (whether
 existing or enacted in future), with respect or in relation to which indemnification may
 be provided to officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.5. Expenses
 to be charged to you or incurred by you with regard to any proceeding concerning you, pursuant
 to chapter H3 (monetary sanction imposed by ISA), H4 (administrative enforcement imposed
 by the Administrative Enforcement Committee) or I1 (arrangement for avoidance or discontinuation
 of proceedings, contingent on terms) of the Securities Act, pursuant to Article IV of Chapter
 4 in Part 9 of the Corporate Act, pursuant to Chapter G1 of the Anti-Trust Act, 1988, as
 amended from time to time, and any other or additional administrative enforcement proceeding
 (whether existing or enacted in future), for which indemnification may be lawfully granted
 with respect to expenses or payments incurred in conjunction there with, including reasonable
 litigation expenses, including attorney's fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.6. Any
 other event, indebtedness, damage, payment or expense which may be covered, now or in future,
 by Officer indemnification by law, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;4.2. Such
 indemnification shall not apply to the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1. Breach
 of fiduciary duty towards the Company, unless you acted in good faith and had reasonable cause to believe
 that such action shall not harm the company;

4.2.2. Breach
 by you of duty of care with intent or recklessness, unless made with negligence alone;

4.2.3. Action
 taken by you, intended to procure illegal personal gains;

4.2.4. Fine,
 civilian fine, monetary sanction or forfeit imposed on you;

&nbsp;&nbsp;&nbsp;&nbsp;4.3. The
 Company shall indemnify you and pay you for the aforementioned financial indebtedness and
 expenses, if not covered by the Company's Officer liability insurance and not actually
 paid to you.

4.4. You
 shall not be entitled to indemnification for any financial indebtedness or expenses for which
 you received indemnification or payment, from the Company or from other(s), including from
 insurance payout. For the sake of clarity, note that indemnification pursuant to this liability
 waiver and commitment to indemnify shall apply over and above any amount paid from insurance
 payout and any other indemnification, and provisions of sections 4.6, 5.2 and 5.3 below shall
 apply.

4.5. Upon
 occurrence of any event for which you may be entitled to indemnification pursuant to provisions
 of this liability waiver and commitment to indemnify, the Company shall provide to you, from
 time to time, as advance payment on account of expenses payable to you pursuant to this liability
 waiver and commitment to indemnify, amounts to cover such expenses and various other payments
 associated with addressing such legal or administrative proceeding, including inquiry proceedings,
 and the Company shall provide to you collateral and guarantees you would be required to provide
 as part of such inquiry or legal proceeding, or by interim rulings, including in arbitration,
 including to replace foreclosure of your assets, even prior to start or end of such inquiry
 or legal proceeding, as the case may be, provided that in total, all such amounts, collateral
 and guarantees shall not exceed the maximum indemnity amount.

Should the Company provide to you such advance payment as set forth above, and should a conclusive verdict stipulate, or should you and the Company agree in writing that you are not entitled to litigation expenses, you shall reimburse such advance payment upon first demand from the Company.

Should the Company provide to you such collateral or guarantees and should a conclusive verdict stipulate, or should you and the Company agree in writing that you are not entitled to indemnification for the action for which such collateral or guarantees were provided, the Company would have these canceled, and you would assist in cancellation thereof to the extent you are required to do so by the Company, and if all or part of these will have been realized, you shall reimburse to the Company the realized amount upon first demand from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;4.6. The
 Company recognizes that you may be entitled to indemnification, payment of expenses (including
 advance payments) or to be included in insurance by a venture capital fund, private investor,
 another equity fund or another entity (" Secondary
 Indemnifier "). In such case, the Company consents
 to the following: (a) Company commitments to indemnify are the primary commitments, and commitments
 of the Secondary Indemnifier are secondary to those of the Company, with regard to indemnification
 for events, deeds and actions pursuant to this liability waiver and commitment to indemnify;
 (b) The Company is required to indemnify and to provide advance payments, collateral and
 guarantees as set forth in this liability waiver and commitment to indemnify, in full and
 regardless of commitments by the Secondary Indemnifier; (c) The Company waives and releases
 in advance the Secondary Indemnifier of any claim or demand for payment of any kind with
 regard to such events, deeds and actions. Note that provision of any payment by the Secondary
 Indemnifier, including any advance payment, with regard to any event, action or deed for
 which you asked the Company for indemnification or payment pursuant to provisions of this
 liability waiver and commitment to indemnify, shall not derogate from the Company's
 commitments pursuant to this liability waiver and commitment to indemnify, and in such case
 the Secondary Indemnifier shall be entitled to reimbursement of payments paid to or for you
 by the Company.

5. <u>Maximum indemnity amount</u> 

&nbsp;&nbsp;&nbsp;&nbsp;5.1. The
 total cumulative indemnity amount to be paid to you by the Company pursuant to this liability
 waiver and commitment to indemnify, with regard to monetary indebtedness, as set forth in
 section 4.1.1 above, together with indemnity amounts with respect to indebtedness as set
 forth in section 4.1.1 above, to be paid by the Company to other officers of the Group pursuant
 to liability waivers to be issued pursuant to the Board of Directors resolution dated [\*],
 shall be equal to 25% of the Company's shareholder equity (on its most recent consolidated
 financial statements prior to payment of such indemnity).(" Maximum
 Indemnity Amount ").

&nbsp;&nbsp;&nbsp;&nbsp;5.2. For
 the sake of clarity, note that the Maximum Indemnity Amount pursuant to this liability waiver
 and commitment to indemnify shall apply over and above any amount to be paid by insurance
 and indemnification by any entity other than the Company (such that the Maximum Indemnity
 Amount would not be decreased due to an insurance payout or such indemnity paid; Should the
 total indemnity amount the Company would be required to pay with respect to provisions of
 section 4.1.1 above exceed the Maximum Indemnity Amount, or the balance of Maximum Indemnity
 Amount (as it may be at that time), then the Maximum Indemnity Amount, or the balance thereof,
 as the case may be, shall be shared by officers entitled to indemnification, such that the
 indemnity amount paid to each Officer would be calculated pro rata to the indemnity amount
 they would have received absent limitation of the Maximum Indemnity Amount, and the indemnity
 amount that all such officers would have received on aggregate, absent such limitation.

5.3. Should
 the Officer be indemnified by the insurer, under an Officer liability insurance policy, with
 respect to the matter at hand subject to indemnification, the Company shall provide indemnification
 equal to the difference between the amount of the financial liability imposed on the Officer,
 including legal expenses, and the amount received from the insurer with respect to said matter,
 provided that the indemnity amount charged to the Company with respect to such indebtedness,
 as set forth in section 4.1.1 above, shall not exceed the Maximum Indemnity Amount. Should
 the Company be indemnified by such insurer, the Company's liability pursuant to this
 liability waiver and commitment to indemnify shall not be decreased, and the total indemnity
 amounts may exceed the amounts received from the insurer.

6. <u>Events subject to indemnification with regard to section 4.1.1</u> 

&nbsp;&nbsp;&nbsp;&nbsp;6.1. The
 commitment to indemnify with respect to monetary indebtedness, as set forth in section 4.1.1
 above, shall be limited to events listed below (which the Company Board of Directors considers
 to be expected, given actual Company operations as of this date):

6.2. Event
 directly or indirectly due to any offering, issuance, distribution, sale, acquisition or
 listing for trading on the stock exchange in Israel or overseas, or de-listing from trading
 of any securities (including equity and debt) – of the Company, a subsidiary or Other
 Company, by the Company or on behalf thereof, by another entity, including inter alia, offering
 of securities to the public (including by way of sales offer), distribution in kind (of Company
 securities or securities held by the Company) or distribution by way of benefits or rights
 to securities, purchase offer, purchase of securities (including buy-back), private placement,
 all whether or not conducted pursuant to a prospectus or draft prospectus or any other document,
 whether or not such action has been realized; and any other action with regard to Company
 equity, whether or not involving issuance of securities.

6.3. Any
 event directly or indirectly arising from the Company being a public company or a reporting
 entity (as these terms are defined in the Corporate Act), or arising from the fact that Company
 securities were offered to the public, or arising from the fact that Company securities are
 listed for trading on the stock exchange in Israel or overseas.

&nbsp;&nbsp;&nbsp;&nbsp;6.4. Any
 transaction as defined in Section 1 of the Corporate Act, including negotiations of any transaction,
 transfer, sale, acquisition or pledging of assets or liabilities (including securities),
 or the granting or receiving of any rights there to, borrowing and providing collateral and
 any other action involved, directly or indirectly, in such transaction, including delivery
 of information and documents.

6.5. Any
 resolutions or actions with regard to approval of transactions with officers, interested
 parties or controlling shareholders of the Company, as such transactions are defined in chapter
 five of part six of the Corporate Act.

6.6. Any
 claim alleging wrong business discretion, and reasonable professional level of expertise
 and caution with regard to Company business.

6.7. Any
 report of notice issued pursuant to corporate law, securities law, tax laws, anti-trust laws,
 labor laws or any other law requiring the Company to issue such report or notice, including
 pursuant to stock exchange rules or guidelines in Israel or overseas, or by law of another
 country which governs similar matters, or avoidance of issuing such report or notice.

6.8. Any
 action in contravention of the Economic Competition Act, including any restrictive trade
 practices, as well as actions with regard to regulation and laws concerning anti-trust, mergers,
 restrictive trade practices, impact to competition or commercial tort.

6.9. Adoption
 of findings of external opinion for issue of any immediate report, prospectus, financial
 statements or any other disclosure document pursuant to securities laws.

6.10. Discussion
 and making decisions and providing reporting and disclosure on Company reports, if provided
 pursuant to securities laws, including assessment of effectiveness of internal control and
 other matters included on the Company's Board of Directors Report, as well as certification
 and references to the financial statements.

6.11. Any
 action or decision with regard to preparing, compiling, approving, issuing or signing financial
 statements, interim financial statements, annual reports, periodic or quarterly reports and
 so forth, including providing assessment of the effectiveness of internal control (SOX),
 making decisions with regard to application of accounting principles and re-statement on
 the financial statements, reliance on assessments and accounting estimates (for, inter alia,
 IFRS and accounting and reporting rules applicable to the Company) as well as budgets, business
 work plans or forecasts with regard to the Company.

6.12. Adoption
 of financial reporting pursuant to International Financial Reporting Standards (IFRS) or
 any customary financial reporting standards by the Company, or US GAAP standards or any reporting
 standards used by subsidiaries of the Company and any action with regard there to.

6.13. Events
 related to investment by the Company in any corporations.

6.14. Decision
 with regard to distribution, as defined in the Corporate Act, including Court-authorized
 distribution.

6.15. Re-organization
 of the Company, change in ownership of the Company, re-structuring of the Company, dissolution,
 sale of (all or part of) its assets or businesses, or any decision with regard there to,
 including inter alia, merger, split, change to Company capital, incorporation, dissolution
 or sale of subsidiaries, allotment or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;6.16. Formulation,
 change, amendment or approval of arrangements between the Company and holders of Company
 securities, or banks or creditors of the Company or of affiliated corporations.

6.17. Actions
 with regard to issuing and obtaining licenses, permits, waivers or approvals, including pre-rulings,
 no-action letters and so forth, including business licenses and licenses and permits required
 to conduct Company business, including approvals or exemptions with regard to tax issues,
 securities or anti-trust matters, and any action with regard to and in conformity with such
 licenses, permits, approvals and waivers.

6.18. Participation
 in auctions and conducting auctions.

6.19. Statement,
 saying, including expression of position or opinion, voting or avoidance of voting, whether
 in writing, verbally or in any other way, or through dissemination or publication of any
 document, message, response or notice, including in negotiations and contracting with suppliers
 or customers, and including at meetings of Company management, Board of Directors or any
 Board committee or in any other forum.

6.20. Action
 in contravention of Company Bylaws.

6.21. Action
 or decision with regard to employment relations, including negotiation, contracting and implementation
 of individual employment contracts or collective bargaining agreements, employee benefits,
 including allocation of securities to employees.

6.22. Any
 action or decision with regard to health and safety at work or to working conditions.

6.23. Negotiation,
 contracting and activation of insurance policies.

6.24. Formulate
 work plans, including pricing, marketing, distribution, guidelines for employees, customers
 and suppliers and any co-operation with competitors.

6.25. Decisions
 or actions with regard to environmental protection and public health, including hazardous
 materials.

6.26. Resolutions
 or actions with regard to the Consumer Protection Act, 1981 and ordinances and regulations
 pursuant there to.

6.27. Actions
 with regard to the Company's intellectual property and protection thereof, including
 registration or enforcement of intellectual property rights and defense in claims with regard
 there to.

6.28. Infringement
 of intellectual property rights of any third party, including inter alia, patents, samples,
 cultivator rights, trademarks, copyright and so forth.

6.29. Negotiation,
 signing and execution of contracts of any kind with third parties, including suppliers, distributors,
 agents, franchisees, marketers, importers, exporters, customers and so forth for goods or
 services marketed or sold or supplied or used by the Company.

6.30. Negotiation,
 signing and execution of agreements with labor contractors, service contractors, construction
 contractors, refurbishment contractors and so forth.

6.31. Providing
 information, representations, opinion, assessments, forecasts, estimates, data, professional
 opinions, financial statements, reports or notices, filing applications with any competent
 authority, ISA, tax authorities, Anti-Money Laundering Authority, Anti-trust Authority and
 the Concentration Committee), as well as any action with regard to implementation of statutory
 provisions (including guidelines, directives, ordinances and so forth) applicable to the
 Company, issued by any competent authority or by any other Government entity.

&nbsp;&nbsp;&nbsp;&nbsp;6.32. Inquiries
 by State authorities.

6.33. Any
 action related to providing information, representations, opinion, assessments, forecasts,
 estimates, data, financial statements, reports or notices to any third party, including in
 conjunction with business contracting by the Company or as part of action by any Company
 shareholder with regard to their holdings in the Company, or pursuant to any statutory provisions
 (including the following: Pursuant to the Corporate Act, Securities Act and regulations enacted
 pursuant there to, or pursuant to rules or guidelines of a stock exchange in Israel or overseas).

6.34. Transfer
 of information required or allowed by law to be transferred to an interested party in the
 Company.

6.35. Payment
 or payment demand applicable to the Company by law.

6.36. Action
 with regard to risk management at the Company (including insurance of any risk type to which
 the Company is exposed).

6.37. Actions
 with regard to establishing, registering, managing and using information, registries and
 information repositories, including information repositories, as this term is defined in
 the Privacy Protection Act.

6.38. Management
 of bank accounts used by the Company at banks, and conducting transactions in such bank accounts,
 including repurchase transactions in securities and loaning and borrowing securities, loans
 and credit facilities, debit cards, bank guarantees, letters of credit, agreements with regard
 to investment advisory services.

6.39. Realization
 of personal guarantee provided by the Officer to the Company, as collateral to secure liabilities
 or certifications of the Company.

6.40. Failure
 to conduct full or appropriate due diligence proceedings with regard to investments by the
 Company, which resulted in full or partial loss of such investment, or in impact to Company
 business or in breach of obligation towards a third party.

6.41. Events
 and actions with regard to investments made by the Company in various corporations, before
 or after making such investment, including for the purpose of contracting, execution, development,
 monitoring and supervision of such transaction, including actions with regard to investment,
 purchase, holding and sale of securities issued by various entities, as well as investments
 in financial assets or other interests, in Israel or overseas.

6.42. Any
 action or transaction regarding or resulting from office on behalf of the Company with a
 competent organ of the Group, or appointment on behalf of the Company with a subsidiary or
 Other Company, including any action with regard to exercise of voting rights in such companies.

6.43. Monetary
 indebtedness imposed on an Officer with respect to actions they took part in on behalf of
 the Company, vis-à-vis diverse State institutions.

&nbsp;&nbsp;&nbsp;&nbsp;6.44. Monetary
 indebtedness imposed on an Officer with respect to a lawsuit brought by third parties against
 such Officer with respect to missing or misleading disclosure, whether written or verbal,
 to existing or potential investors in the Company, including in case of merger of the Company
 with Other Company.

6.45. Reimbursement
 of deductible in case of activation of Officer liability insurance.

6.46. Any
 breach of provisions of any agreement to which the Company is party.

6.47. Any
 action with regard to tax liability of the Group or Group shareholders.

6.48. Any
 transaction (including exceptional transaction) or action (including transfer, sale, purchase
 or leasing of assets or liabilities (including land, securities or rights) or giving or receiving
 any right, including right to use or license in any of these, as well as any action directly
 or indirectly involving such transaction.

6.49. Actions
 in conjunction with legal proceedings of the Company or against the Company, including outside
 of Israel.

6.50. Class
 action lawsuit or derivative lawsuit with regard to the Company, a subsidiary or Other Company.

6.51. Any
 action or transaction with regard to publication or marketing of Company activity and business,
 including submission for publication or marketing, as well as such publication being correct
 and not misleading.

6.52. Any
 event or action which may be indemnified pursuant to the Securities Act, Economic Competition
 Act, Corporate Act and any other act applicable to Company operations.

6.53. Any
 provision of section 6 -

● Concerning any particular action shall be interpreted as also concerning any derivative of such action or non-execution of avoidance of execution of such action, unless impossible based on the context of any particular provision.

● Referring also to any of the aforementioned types of events or actions, with regard to your employment or office as Officer or holder of any other position with the Group.

● Any reference to Company shall also include any subsidiary and Other Company, in conformity with the context.

7. <u>Conditions with regard to indemnification</u> 

Indemnification pursuant to this liability waiver and commitment to indemnify is subject to fulfillment of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;7.1. You
 must diligently inform the Company in writing of any investigation or any legal or administrative
 proceeding brought against you with regard to any event to which this indemnification may
 apply, as well as any concern or threat delivered to you in writing, whereby such investigation
 or legal or administrative proceeding may be brought against you, after first learning of
 this, and you must provide to the Company, or to anyone as informed by the Company, without
 delay, any document to be provided to you with regard to such proceeding, and any information
 that may come to your knowledge with regard to such proceeding.

You must also regularly inform the Company of any events subject to concern that they may result in an investigation or legal proceeding being brought against you.

Failure to provide such notice shall not exempt the Company of its commitments pursuant to this liability waiver and commitment to indemnify, unless and if such failure to provide such notice would nullify the Company's capacity to defend against such claim in your name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Except
 in case of a lawsuit brought by the Company against you, the Company may assume the handling
 of your defense in such investigation or legal or administrative proceeding, and the Company
 may appoint an attorney of the Company's choice for this purpose (except for any attorney
 that would not be reasonably acceptable to you) to handle any such investigation or legal
 proceeding. Should you have appointed an attorney on your behalf prior to such decision by
 the Company, you would be entitled to reimbursement of your expenses pursuant to provisions
 of this liability waiver and commitment to indemnify.

The Company and such attorney may act, in handling such case, at their discretion – subject to the following: The attorney thus appointed would act with fiduciary duty to the Company and to you. Without prejudice to provisions of this liability waiver and commitment to indemnify, it is hereby clarified that should the Company not be entitled to assume, or should the Company fail to assume, the handling of your defense in the legal proceeding, you may appoint an attorney on your behalf, provided that the Company did not object to their appointment other than for reasonable causes, and provisions of this liability waiver and commitment to indemnify shall apply to any expenses you may incur with respect to such appointment.

Upon request from the Company, you undertake to sign any document reasonably required to authorize the Company or such attorney to handle such proceeding in your name and to represent you in all matters related there to.

For the sake of clarity, the Company and such attorney may not, in any criminal proceeding, admit any of the charges in your name, nor agree to any plea deal, without your prior written consent. Furthermore, the Company and such attorney may not, in any civil law proceeding (whether in a Court of Law or in arbitration, mediation or any settlement agreement), without your prior written consent which you may not unreasonably deny: (a) admit, in your name (whether in a hearing to a Court of Law or arbitrator, or in conjunction with a settlement agreement) any event that is not indemnifiable pursuant to provisions of this liability waiver and commitment to indemnify and any statutory provisions; or (b) reach a deal or settlement that does not include you being fully absolved of any liability with regard to such proceeding.

The foregoing shall not preclude the Company or such attorney from reaching agreement with the plaintiff in such civil law proceeding without your consent, provided that this is not in contravention of the foregoing.

Furthermore, the Company and the attorney on behalf of the Company shall not agree to any settlement in an amount exceeding the indemnity amount to which you would be entitled, without your prior consent that you may not unreasonably deny, and should consent of the insurer also be required – without the insurer's prior consent.

Any deal, settlement or conclusion of any proceeding, or non-payment of any indemnity by the Company, or failure by the Company to make a decision with regard to indemnification, shall not constitute representation, assumption, admission or consent to you not being entitled to indemnification pursuant to this liability waiver and commitment to indemnify. Moreover, conclusion of any proceeding by any verdict or injunction, by a Court of Law or arbitrator, by itself (unless otherwise explicitly specified in such verdict or injunction), or in a deal or settlement, shall not constitute representation, assumption, admission or evidence that: (a) You have acted other than in good faith and in such manner as you believed to be favorable or unfavorable to the Company; and (b) With regard to criminal proceedings, that you did not have reasonable grounds to believe that your actions were legal.

Should you reasonably object to being represented by the attorney appointed by the Company, or should you or the Company's attorney believe that there is concern about conflict of interest between you and the Company, you may appoint your own attorney, and the Company shall not unreasonably object to such appointment, and provisions of this liability waiver and commitment to indemnify shall apply to any expenses you may incur with respect to such appointment.

In such cases where the Company appoints the attorney, you may appoint another attorney other than the Company-appointed attorney, and the Company and the -appointed attorney shall inform your attorney, provided that you bear the cost for your additional attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. You
 shall co-operate with the Company or with such attorney, and with the insurer pursuant to
 the officer liability insurance policy covering the Company, by any reasonable means asked
 of you by any of them in conjunction with their handling of the legal or administrative proceeding
 or investigation, provided that the Company or such insurer would cover all expenses in this
 regard, so that you would not be required to pay or to finance such expenses by yourself.

7.4. The
 Company shall not be required to indemnify you pursuant to this liability waiver and commitment
 to indemnify for any amount paid by you in conformity with any settlement or arbitration
 which the Company had not authorized in advance and in writing, provided that the Company
 would not unreasonably refuse such settlement, conducting such arbitration or signing such
 deal, as the case may be.

7.5. The
 Company's commitment to pursuant to this liability waiver and commitment to indemnify
 are made personally to you alone, and this liability waiver and commitment to indemnify may
 not be assigned nor transferred to other(s), except as set forth in section 8 below.

7.6. Upon
 your request to make any payment with respect to any case pursuant to this liability waiver
 and commitment to indemnify, the Company shall take any action required by law to make such
 payment, and shall act to obtain any approval required for this purpose, if required, including
 Court approval, if and to the extent required.

8. <u>Scope</u> 

The liability waiver and commitment to indemnify pursuant to this this liability waiver and commitment to indemnify shall be available to you even after conclusion of your term in office as officer or holder of another position with the Group, provided that the actions for which this this liability waiver and commitment to indemnify is provided were made or would be made during your term in office as officer or holder of another position with the Group. The Company's aforementioned commitments shall also be available to your estate, heirs, other lawful substitutes and to any substitute Board member you may appoint. Note also that the Company's commitments pursuant to this liability waiver and commitment to indemnify shall also apply to events which preceded the signing of this document.

9. <u>Miscellaneous</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Company
 obligations pursuant to this liability waiver and commitment to indemnify shall be interpreted
 widely so as to uphold them, to the extent permitted by law, for the purpose for which they
 have been created. In the event of conflict between any provision of this liability waiver
 and commitment to indemnify and any statutory provision that cannot be subjected to conditions,
 nor changed or added to, said statutory provisions shall prevail, but this shall not infringe
 upon or prejudice the validity of the other provisions of this liability waiver and commitment
 to indemnify.

9.2. This
 liability waiver and commitment to indemnify shall not derogate from the Company's
 right to decide on retroactive indemnification pursuant to all statutory provisions. Moreover,
 this liability waiver and commitment to indemnify shall not derogate from nor infringe on
 the Company's right (but the Company would not be required) to make any decision with
 regard to the following: (a) Increase the Maximum Indemnity Amount, as set forth in this
 liability waiver and commitment to indemnify; (b) Add any types of events for which officers
 shall be entitled to indemnification; (c) Any other change in terms and conditions of this
 liability waiver and commitment to indemnify that is beneficial to you; or (d) Provision
 of indemnification retroactively, including with regard to indebtedness as set forth in section
 4.1.1, in amounts higher than the Maximum Indemnity Amount and without limitations set forth
 in sections 5 and 6 above, subject to all statutory provisions.

9.3. Should
 the law applicable to the Company change in future, so as to allow the Company to expand
 the scope of this liability waiver and commitment to indemnify which the Company may award
 to you, then such change in the law shall be deemed to also apply to you, and this liability
 waiver and commitment to indemnify shall automatically be deemed to have been amended (without
 requiring any further action or resolution), as if it contained any such change, to the maximum
 extent allowed by law. Without prejudice to the foregoing: (a) Any amendment of the Corporate
 Act, the Economic Competition Act or any other applicable law that expands the Company's
 capacity to indemnify, insure or waive your liability, or which expands your right to be
 indemnified, insured or waived of liability, shall apply to you to the maximum extent possible,
 automatically and immediately, and shall be deemed to be included in this liability waiver
 and commitment to indemnify to the maximum extent permitted by law; and (b) Any amendment
 of the Corporate Act, the Economic Competition Act or any other applicable law that impacts
 the Company's capacity to indemnify you, insure you or waive your liability, or which
 impacts your right to be indemnified, insured or waived of liability, as set forth in this
 liability waiver and commitment to indemnify or in Company Bylaws, shall not apply retroactively
 and shall not impact the commitment or capacity of the Company to indemnify you, insure you
 or waive your liability with respect to any deed or omission that took place prior to such
 amendment, unless otherwise stipulated by applicable law. For good measure, provisions of
 this section shall not apply to change in the Maximum Indemnity Amount, which shall not be
 automatically amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. The
 Company may, at its sole discretion and at any time, terminate its waiver or commitment to
 indemnify, or reduce the Maximum Indemnity Amount pursuant there to, or reduce the list of
 events subject to indemnification, whether for all or some of the officers, should such termination
 or change apply to events subsequent to the date of such termination or change, provided
 that you received prior written notice of this intention at least 30 days prior to the effective
 start date of such resolution. For the sake of clarity, note that any such resolution which
 may result in significantly inferior terms and conditions for this liability waiver and commitment
 to indemnify or in termination thereof, shall not have any retroactive application of any
 kind, and the liability waiver and commitment to indemnify prior to such change or termination,
 as the case may be, shall continue to apply and would be valid for all intents and purposes
 with regard to any event that had occurred prior to such change or termination, even if the
 proceeding in regard there to was brought against you after such change or termination of
 this liability waiver and commitment to indemnify.

9.5. For
 avoidance of any doubt, it is hereby stipulated that this liability waiver and commitment
 to indemnify does not constitute a contract in favor of any third party, including any insurer,
 and no insurer may require the Company to participate in any payment which such insurer is
 committed to make pursuant to any insurance contract made there with, except for the deductible,
 except with regard to the Secondary Indemnifier, as set forth in section 4.6 and to a substitute
 Board member to whom this liability waiver and commitment to indemnify shall apply.

9.6. Provisions
 of this liability waiver and commitment to indemnify prevail over any prior commitment or
 agreement (prior to signing this liability waiver and commitment to indemnify), whether in
 writing or verbally, between the Company and you with regard to matters set forth in this
 liability waiver and commitment to indemnify, including with regard to events that occurred
 prior to signing this liability waiver and commitment to indemnify, but it is hereby clarified
 that this would not infringe on any waiver provided to you, if provided, prior to providing
 this liability waiver and commitment to indemnify.

9.7. Should
 any provision or commitment set forth in this liability waiver and commitment to indemnify,
 or any award of any waiver pursuant to this liability waiver and commitment to indemnify
 shall be declared void or un-enforceable, this would not impact the remaining provisions,
 commitments and waivers which shall remain in effect. Furthermore, should any such provision,
 commitment or waiver be found to be void or un-enforceable and they may be remedied so as
 to make them valid and enforceable by law, then such provision, commitment or waiver shall
 be deemed to have been amended or constrained as required, so as to be valid and enforceable
 to the maximum extent allowed, and the competent entity is hereby authorized to amend or
 constrain them so as to be valid and enforceable in such scope, form and to the maximum extent
 allowed by law.

9.8. Any
 waiver of any of the provisions of this liability waiver and commitment to indemnify shall
 be made in writing an shall not be deemed waiver, avoidance or creation of custom between
 the parties with regard to other cases and other provisions (even in the case of similar
 provisions) in this liability waiver and commitment to indemnify.

9.9. The
 Company shall bear all your expenses, including legal expenses, in enforcement and realization
 of this liability waiver and commitment to indemnify. Provisions of section 7 above shall
 not apply to enforcement and realization of this liability waiver and commitment to indemnify
 by you.

9.10. The
 law applicable to this liability waiver and commitment to indemnify is the law in Israel,
 and the competent Court in Tel Aviv Yafo has sole jurisdiction to hear any dispute arising
 from implementation of this liability waiver and commitment to indemnify, ejecting the jurisdiction
 of all other Courts.

---

| | |
|:---|:---|
| Date: [\*] | |
|  | **Pulsenmore Ltd.** |

---

## Exhibit 4.5

**Exhibit 4.5**

**<u>CONSULTANCY AGREEMENT</u>**

This agreement (the **"Agreement"**) is entered into this 6 day of November, 2016 (the **"Effective Date")** by and between PulseNMore Ltd. company no. 515139129, having its registered address at 52 Begin Rd., Tel Aviv, Israel (the **"Company"),** and **D.L.L.D Consulting Ltd.** company no. 514649359, having its registered address at 44 Tamar St., Omer, Israel (the **"Consultant").**

---

| | |
|:---|:---|
| **WHEREAS,** | The Company engages in research, development and manufacturing of medical devices, including ultrasound imaging and other devices for the treatment of certain medical conditions that use ultrasound imaging for diagnostic or support during treatment (the **"Field");** and |
| **WHEREAS** | The Company wishes the Consultant to provide the Company with certain services as set out in **<u>Appendix A</u>** (the "Services"), solely and personally through **Mr. Elazar Sonnenschein,** Israeli ID no. (the **"Service Provider"),** starting as of the Effective Date; and |
| **WHEREAS** | the Consultant wishes to provide the Services solely through the Service Provider starting as of the Effective Date; and |
| **WHEREAS** | The Consultant warrants that it and the Service Provider have the ability, experience, expertise and resources to provide the Services and to perform all of their obligations hereunder; and |
| **WHEREAS** | The parties agree, as per the Consultant's specific wish and requirement, made as a result of considerations and benefits personal to the Consultant, that the Services will be provided to the Company on an independent contractor basis, absent an employment relationship between the Parties hereto or the Company and the Service Provider; and |
| **WHEREAS** | The Consultant is aware of all the financial consequences resulting from the Consultant's engagement as an independent contractor, and acknowledges that the Consultant shall receive from the Company consideration that would greatly exceed the salary which it or the Service Provider would have received had it or the Service Provider been hired as an employee of the Company; and |
| **WHEREAS** | This Agreement is entered into in reliance upon, inter alia, the declarations of the Consultant that the Services are provided solely on an independent contractor basis and that no claim shall be submitted by the Consultant or the Service Provider or anyone on their behalf contradicting such declaration. |

---

**NOW THEREFORE,** in consideration of the mutual promises, covenants and understandings contained herein, the Parties agree as follows:

**1.**  **<u>Recitals, Headings and Interpretation</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The
 recitals and Annexes form part of this Agreement.

1.2 Headings
 are for reference purposes only and shall not in any way affect interpretation of this Agreement.

**2.**  **<u>Representations and Warranties</u>** 

The Consultant represents and warrants to the Company that, as of the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The
 Consultant is free to provide the Company with the Services, upon the terms contained in this Agreement, and there are no legal, commercial
 or contractual restrictions preventing the Consultant or the Service Provider from fully performing all duties hereunder.

2.2 The
 execution, delivery and performance of this Agreement by the Consultant and the Service Provider, including the provision of the Services,
 do not violate any third party's rights or will result with the breach of any law, regulation or agreement to which the Consultant
 or the Service Provider is a party.

2.3 The
 Consultant undertakes that the Service Provider perform all duties and obligations under this Agreement with the highest degree of
 professionalism and to the full satisfaction of the Company and will ensure the use of all professional knowledge, experience and skills
 in providing the Services, which shall be performed in a loyal, devoted and professional manner in accordance with the terms of this
 Agreement. The Consultant undertakes that the Service Provider shall use its best endeavors to protect the good name and reputation
 of the Company and shall not perform any act that may bring the Company into disrepute.

**3.**  **<u>Duties and Obligations of Consultant</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The
 Consultant undertakes to provide the Services solely and personally through the Service Provider. The Consultant shall not have any
 other person or entity perform any of the Services, except with the prior written consent of the Company.

3.2 Where
 the Consultant discovers that it or the Service Provider have or might have at some point in the future, conflict of interest arising
 out of or in connection with the Services then, as soon as practicable upon discovery, the Consultant shall notify the same to the
 Company in writing and shall immediately cease or cause the termination of any such activity that is in conflict with the Services.

3.3 The
 Consultant shall not provide services to any third party which may place the Consultant in a conflict of interests with its undertakings
 and obligations hereunder.

3.4 The
 Consultant undertakes that it or the Service Provider shall not, directly or indirectly, accept any commission, rebate, discount or
 gratuity in cash or in kind, from any person who has or is likely to have a business relationship with the Company.

3.5 The
 Consultant shall provide the Services to the Company in accordance with the instructions, policies, procedures as in effect from time
 to time and other relevant directions that the Consultant will from time to time receive from the Company.

3.6 Upon
 signing this Agreement, the Consultant agrees to sign and to cause the Service Provider to sign, and abide by, the terms of the Confidentiality,
 Non-Competition, Non-Solicitation, and Intellectual Property Undertaking attached as  **<u>Appendix B</u>** and to sign and cause
 the Service Provider to sigh the Deed of Assignment attached as  **<u>Appendix C.</u>** 

**4.**  **<u>Remuneration</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Subject
 to the fulfillment of all of Consultant's obligations hereunder, the Company shall pay the Consultant a fee in the amount set
 forth in  **<u>Appendix A</u> ("Fee").** 

4.2 A
 proper tax invoice will be issued by the Consultant to the Company on a monthly basis no later than the tenth day of the month following
 that in which the Services were rendered. Payment will be made within 10 business days of receipt by the Company of such invoice, subject
 to its approval by the Company.

4.3 The
 Consultant shall not be entitled to any further compensation in connection with the Services other than the Fee. Consultant's
 overseas travel and accommodation expenses shall be reimbursed by the Company in accordance with the Company's policy and subject
 to Company's prior written approval thereof and the provision of proper receipts by the Consultant.

4.4 The
 Consultant declares that it maintains financial books in accordance with the law and that he is duly registered with the income tax,
 VAT and National Insurance authorities.

4.5 The
 Consultant shall be responsible for, and shall indemnify and hold the Company harmless from, all payments required to be made to the
 National Insurance Institute, any taxation body or other third party in consequence of the provision of the Services hereunder or the
 remuneration provided in connection therewith.

4.6 The
 Company shall withhold all taxes and compulsory payments on any payment and/or benefit to the Consultant to the extent that such taxes
 and compulsory payments are required by any applicable law to be withheld at source.

**5.**  **<u>Status of Parties</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The
 relationship between the Consultant and the Company is one of principal-independent contractor. The Consultant must perform and continue
 to perform all actions legally required to establish and maintain its status as an independent contractor with an independent business.
 The Parties expressly declare that no employment relationship exists between the Company and neither the Consultant nor the Service
 Provider.

5.2 The
 Consultant declares that, from the Effective Date and throughout the duration of this Agreement, it shall be the sole employer of the
 Service Provider. The Consultant undertakes, solely and exclusively, to comply with all of its employment obligations in respect of
 the Service Provider under every law including, without limitation, timely payment of all amounts it is obliged to pay to the Service
 Provider and any third party, pursuant to law or agreement, including but not limited to wages, national insurance, pension funds,
 annual vacation, sick pay, convalescence payments, travel expenses, and severance pay.

5.3 If,
 notwithstanding anything contained in this Agreement, any person shall claim, and/or a judicial authority shall determine, that the
 Consultant and/or the Service Provider provided the Services under this Agreement as an employee of the Company, then the following
 provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1 For
 the period as to which it is claimed and/or determined that an employment relationship existed between the Company and the Consultant
 and/or the Service Provider **("Relevant Period"),** the Consultant shall not be entitled to the Fee, but only 60% thereof **("Reduced Fee").** 

5.3.2 The
 Reduced Fee shall constitute the full remuneration payable to the Consultant, on which basis any social contributions will be calculated
 - to the extent that such social contributions are required to be paid to or in respect of the Consultant and/or the Service Provider
 pursuant to any competent authority's decision reclassifying the Consultant and/or the Service Provider as an employee.

5.3.3 In
 view thereof, an accounting shall be conducted between the Parties, and by no later than 7 days from the Company's first demand,
 the Consultant shall return and pay to the Company all amounts paid to him in excess of the Reduced Fee for the Relevant Period, along
 with linkage differentials from the date of payment of each amount by the Company to the Consultant and up to the date upon which actual
 return and payment of the funds is made by the Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 In
 addition, in the event that the relationship between the Company and the Consultant and/or the Service Provider is claimed, regarded
 or determined by any third party, including any governmental and/or judicial and/or tax authority to be **an employment** relationship,
 the Consultant shall reimburse and indemnify the Company for any expense and/or payment incurred by or demanded of the Company as a
 consequence, by no later than 7 days from the Company's first demand.

5.5 The
 Company shall be entitled to offset any amounts due to it under this Section 5 from any amounts payable to the Consultant under this
 Agreement.

**6.**  **<u>Term and Termination</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 This
 Agreement shall be effective from the Effective Date until terminated by either the Company or Consultant **("Term")** on
 120 days' written notice to the Consultant **("Notice Period").** 

6.2 During
 the Notice Period, the Consultant must continue to discharge and perform his duties and obligations under this Agreement, unless otherwise
 directed by the Company.

---

| | |
|:---|:---|
| 6.3 | Notwithstanding Section ![](ex4-5_007.jpg) above, the Company may terminate this Agreement forthwith and without prior notice: (i) if the Consultant and/or the Service Provider commits a fundamental breach of its confidentiality, non-solicitation and non-compete undertakings towards the Company under Annexes **B** and C of this Agreement; (ii) in the event that the Consultant breached its undertaking to provide the Services solely and personally through the Service Provider, and unless the Service Provider has entered into a consulting agreement with the Company for the provision of the Services, under terms similar to this Agreement, which replaces this Agreement; (iii) in the event of any act or omission of the Consultant and/or the Service Provider that would have entitled the Company legally to dismiss the Consultant and/or the Service Provider without severance pay, had the Consultant and/or the Service Provider been engaged as an employee of the Company; (iv) if the Consultant and/or the Service Provider was convicted of a crime, which has a minimal penalty of 3 years; (v) if the Consultant and/or the Service Provider were convicted in any act of deceit or fraud, whether or not it involves the Company; (vi) if the Consultant and/or the Service Provider are grossly negligent in the performance of their obligations under this Agreement, in a manner that causes (or is likely to cause) harm to the Company; or (vii) in the event that the Consultant and/or the Service Provider have fundamentally breached their fiduciary duties to the Company. |
|  | Each of the above shall be considered as termination for **"Cause".** |
| 6.4 | Upon termination of this Agreement the Consultant shall immediately return to the Company all assets in the Consultant's or the Service Provider's possession or control which belong to, or have been entrusted to, the Company. The Consultant and/or the Service Provider shall neither have, nor retain, any proprietary interest in such assets. |

---

---

| | |
|:---|:---|
| **7.** | **<u>Indemnification</u>** |
|  | Consultant shall, upon first demand, indemnify and hold harmless Company, its directors, officers and employees, from and against any and all liabilities, claims, damages, costs and expenses (including attorneys' fees) arising out of or resulting from any claim, action, or other proceeding, based upon the acts or omissions of the Consultant (including the Service Provider) in connection with the performance of its obligations herein. |
| **8.** | **<u>General</u>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 The
 Consultant shall not assign any of his rights and obligations hereunder, and any attempt to do so shall be null and void. The
 Company shall be entitled to assign its rights and/or obligations under this Agreement, in whole or in part, to any of its subsidiaries
 or affiliates without the need to obtain the consent of the Consultant.

8.2 No
 behavior by either party hereto shall be deemed to constitute a waiver of any rights according to this Agreement, and/or a waiver of
 or consent to any breach or default in respect of any of the terms hereof, or a change, invalidation or addition to any term, unless
 expressly made in writing.

8.3 The
 terms of this Agreement shall be interpreted in such a way as to give them maximum enforceability at law. In the event that any term
 or provision of this Agreement is determined to be invalid or unenforceable, such provision shall be deemed severed from this Agreement
 and shall not render invalid or unenforceable the remaining terms and provisions of this Agreement, 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.

8.4 This
 Agreement, contains the entire agreement and understanding between the Parties with respect to the subject matter contained herein,
 and supersedes all prior discussions, drafts, warrants, representations and understandings in this regard. This Agreement shall not
 be modified except by an instrument in writing signed by both Parties.

8.5 This
 Agreement is a separate, self-standing and independent agreement between the Company and the Consultant and the Consultant shall have
 no claims and/or demands toward the Company in connection with any dispute that may arise between the Consultant and an affiliate of
 the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 Provisions
 intended to survive the termination of this Agreement, including but not limited to Section 5, ![](ex4-5_008.jpg) 7
 and Appendixes B and C, shall so survive.

8.7 Without
 derogating from any relief to which the Company is entitled to pursuant to any law and/or agreement, the Company may set off any amount
 which the Consultant owes to the Company pursuant to this Agreement from any sum that the Consultant is entitled to receive from the
 Company or its affiliate.

8.8 This
 Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which together shall constitute
 one and the same instrument.

8.9 The
 Parties undertake to keep the terms of this Agreement in confidence and not to disclose the terms hereof to any Person save to the
 extent required by law, regulatory authority, competent court or the terms of this Agreement. Any report or public announcement by
 any Party hereto with regard to the existence or terms of this Agreement shall be made only after prior consultation with the other
 Party.

8.10 All
 notices, claims, demands and other communications hereunder shall be in writing and shall be deemed given if delivered by overnight
 courier at the addressees provided for above.

8.11 All
 disputes with respect to this Agreement shall be determined in accordance with the laws of the State of Israel and the competent courts
 in Tel Aviv, Israel shall have exclusive jurisdiction of any such dispute.

**IN WITNESS WHEREOF,** this Agreement has been duly executed as of the date first above written:

---

| | |
|:---|:---|
| */s/ Elazar Sonnenschein* | [Company stamp an signature] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Consultant | By: |
|  | Title: |

---

Confirmation

I, **Mr. Elazar Sonnenschein,** Israeli ID no. , hereby confirm that I am aware of the terms and conditions of the above Consultancy Agreement between **PulseNMore Ltd.** company no. 515139129, and **D.L.L.D Consulting Ltd.** company no. 514649359, and I undertake to use my best efforts to ensure that the Consultant complies with all its undertakings and obligations pursuant to this agreement. I further confirm that I will do nothing that may be in breach of the said agreement.

---

| | |
|:---|:---|
| */s/ Elazar Sonnenschein* | */s/ Elazar Sonnenschein* |
| **Mr.** | **Elazar Sonnenschein** |
| Date: | 11.01.2016 |

---

**<u>Appendix A</u>**

**<u>The Scope of the Services and the Fees</u>**

<u>Scope of Services:</u>

Consulting on aspects relating to Company's ongoing operations, including, without limitation, projects execution, budget control, business development, logistics, hiring personnel, R&D, fund raising.

<u>Consultation Fee:</u>

NIS 27,000+VAT per a month.

**<u>Appendix B</u>**

**<u>Confidentiality, Non-Competition, Non-Solicitation, and Intellectual Property Undertaking</u>**

**To: PulseNMore Ltd.** company no. 515139129, having its registered address at 52 Begin Rd., Tel Aviv, Israel (the **"Company")**

---

| | |
|:---|:---|
| **WHEREAS,**  | D.L.L.D Consulting Ltd. company no. 514649359, having its registered address at 44 Tamar St., Omer, Israel **("Consultant"), is a party to** a consultancy agreement (the **"Agreement"), for** Services which will be provided to the Company solely and personally by **Mr. Elazar Sonnenschein,** Israeli ID no. **("Service Provider");** and |
| **WHEREAS,** | Consultant and Service Provider, acknowledge that in the course of providing the Services to the Company and any services provided to the Company prior to the engagement in the Consultancy Agreement (before and after the incorporation of the Company), they will be exposed to Confidential Information, as defined below, and that the Services are of particular and special value to the Company. |

---

**NOW THEREFORE** we, the undersigned, declare and undertake the following towards the Company, its affiliates (being persons or entities which control, are controlled by or are under common control with the Company now or in the future (collectively the **"Group")).**

Terms used in this Undertaking, except where stated otherwise, will have the same meanings ascribed to them in the Agreement.

We agree that the terms of this Undertaking shall survive termination of the Agreement, and unless otherwise specifically provided hereunder, shall remain in full force and effect at all times thereafter.

All obligations and representations of Consultant and Service Provider above and below are made jointly and severally.

**1.**  **<u>Confidential Information and Confidentiality</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 We
 are aware that we will have access to, and be entrusted with, information (regardless of the manner in which it is recorded or stored)
 relating to the business interests, methodology or affairs of the Company or the Group, or any person or entity with whom or which
 the Company or the Group deals or is otherwise connected and which, for the avoidance of doubt, includes the terms of the Agreement,
 other than the terms of this Undertaking **("Confidential Information").** By way of illustration, Confidential Information
 includes but is not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1 technical
 information, whether ideas or reduced to practice, techniques, products, technologies (actual or planned) and their components, Inventions,
 research and development activities or information (whether of a technological, geological nature or otherwise), drawings, pricing
 methods, financial data, business and marketing strategies and plans, feasibility studies, lists, formulae or designs, customer and
 supplier information and information pertaining to employees or officers of, or investors in, the Company or any member of the Group;
 and

1.1.2 Information
 owned by third parties which is licensed to the Company or any member of the Group or which is otherwise lawfully held and/or used
 but not owned by the Company or any member of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 During
 the term of the Agreement and at all times thereafter we shall keep confidential, and shall not use,
 disclose and/or make available, directly **or indirectly, to** any third party any Confidential
 Information (to the extent that the same is not already in the public domain through no fault of ours),
 without the prior written consent of the Company and unless otherwise required by law.

1.3 Without
 derogating from the generality of the foregoing, we confirm that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.1 Except
 for the purpose of the proper performance of the Services for the benefit of the Company, we shall not copy, transmit, communicate,
 publish or make any commercial or other use whatsoever of any Confidential Information, without the prior written consent of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3.2 We
 have, and shall continue to exercise the highest degree of care in safeguarding the Confidential Information against loss, theft or
 other inadvertent disclosure and in maintaining its confidentiality and shall take all steps necessary to prevent any unauthorized
 use, disclosure, publication, or dissemination of Confidential Information;

1.3.3 All
 Confidential Information, and any derivatives thereof, is and shall remain the property of the Company and/or the Group, and no license
 or other rights to Confidential Information is granted or implied hereby to have been granted to us, now or in the future; and

1.3.4 Upon
 termination of the Agreement, or at the Company's earlier request, we shall deliver to the Company all Confidential Information
 and any and all copies thereof that have been furnished to us, prepared by us or came to our possession howsoever, at any time during
 or prior to the Agreement, and we shall not retain copies thereof in whatever form.

---

| | |
|:---|:---|
| **2.** | **<u>Non-Competition and Non-Solicitation</u>** |
|  | We hereby covenant that: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 We
 shall not, directly or indirectly, for as long as we are employees, consultants, directors, observers, officers or, direct or indirect,
 shareholders of the Consultant, as the case may be, and for a period of 12 months thereafter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1 in
 any capacity whatsoever, whether independently or as a shareholder, an employee, consultant, an officer or any managerial capacity,
 carry on, set up, own, manage, control or operate, be employed, engaged or interested in a business, which competes with, or proposes
 to compete with the Group;

2.1.2 in
 any way offer, solicit or attempt to solicit, induce or attempt to induce and/or endeavor to entice away, any person, firm or company
 with whom any member of the Group has or had or shall have any contractual and/or commercial relationship as a consultant, licensor,
 joint venturer, supplier, customer, distributor, agent or contractor of whatsoever nature, existing on or prior to the date of termination
 of the Agreement (the **"Relevant Person"),** to cease his, her or its relationship with that member of the Group,
 or otherwise interfere in any way with the relationship between that member of the Group and such Relevant Person; and

2.1.3 in
 any way offer, solicit or attempt to solicit for employment or other engagement, or otherwise contract or seek to contract the services
 of, any individual who is, at or before the effective date of termination of this Agreement, employed or engaged (whether directly
 or indirectly) by any member of the Group or induce or entice **or** attempt to induce or entice such individual to leave such
 employment or other engagement or otherwise interfere in his or her relationship with any member of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 We
 shall not assist, whether directly or indirectly, any person and/or entity which act in contradiction to the provisions of Sections
 2.1 above.

2.3 We
 acknowledge that our obligations under this Section 2 are reasonable in light of the knowledge we will gain of the Group's
 Confidential Information, the nature of the Group's business and the fact that the remuneration under the Agreement has been
 calculated to include special consideration **for** our undertakings **in** this Section 2.

**3.**  **<u>Intellectual Property</u>** 

---

| | |
|:---|:---|
| 3.1 | We agree that the Company is and shall be the sole and exclusive owner of any and all Proprietary Materials and any and all Intellectual Property Rights related thereto. |
|  | **"Proprietary Materials"** shall mean all materials, including, without limitation, any and all products, devices, computer programs, techniques, procedures, **methodologies, improvements, and** know-how, and all materials, texts, drawings, specifications, reports, data, and other recorded information, in preliminary or final form, that result from or are suggested by us in connection with the Services, or that are created, developed, conceived, reduced to practice, or made by us (whether solely or jointly with others) arising out of or in connection with my performance of the Services and/or pertaining to the Group and any services provided to the Company prior to the engagement in the Consultancy Agreement (before and after the incorporation of the Company). For purposes of this Section 3, **"Intellectual Property Rights"** shall mean all intellectual property rights, whether or not patentable, including without limitation, brands, business methods, computer programs, computer software, concepts, confidential information, firmware, certification marks, collective marks, copyright, data, databases, designs, derivative works, documents, file layouts, formulae, goodwill, idea, improvements, industrial design, information, know-how, logos, manufacturing information, mask works, materials, methods, moral rights, patents, patent applications, patent rights, included but not limited to any and all continuations, divisions, renewals, reissues, re-examinations or extensions, plans, processes, proprietary technology, reputation, research results, research records, service marks, software, specifications, systems, techniques, trade secrets, trademarks, trade names, trade styles, and technical information, and any rights analogous to the foregoing. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 To
 the extent that the Proprietary Materials do not vest in the Company upon creation, we undertake to assign and hereby assign and transfer
 to the Company all right, title and interest that we may now or hereafter have in the Proprietary Materials expressly including the
 Intellectual Property Rights related thereto.

3.3 To
 the extent that any right in Proprietary Materials expressly including the Intellectual Property Rights related thereto may not, under
 applicable law, be assigned to the Company, we undertake that we shall, irrevocably waive any and all such rights in favor of the Company.

3.4 We
 agree that we shall: (i) promptly disclose to the Company in writing, sufficient to identify the Proprietary Material in question,
 the creation or existence of all Proprietary Materials; and, (ii) take such action, during the term of the Agreement and thereafter,
 as the Company may request, to evidence, transfer, vest or confirm the Company's right, title and interest in and to the Proprietary
 Materials expressly including the Intellectual Property Rights related thereto.

3.5 We
 are not and shall not be entitled, and hereby waive now and/or in the future, any claim, to any right, compensation, royalty, and/or
 reward in connection with said Proprietary Materials.

3.6 We
 hereby irrevocably appoint the Company and it's duly authorized officers and agents as our agents and attorneys in fact, to act
 for and on our behalf and in our stead to execute and file any documents and to do all other lawfully permitted acts to further the
 enforcement of this Section 3.

**4.**  **<u>No Conflicting Obligations</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 We
 will not, at any time during the term of the Agreement, use or disclose any trade secrets or proprietary or confidential information
 in such manner that may breach any confidentiality or other obligation we owe to any former employer or other third party, without
 their prior written consent.

4.2 We
 warrant that we have the full right to assign the Proprietary Materials and the associated rights, titles and interests and that we
 have not made, and will not make, any agreement in conflict with this paragraph or Section 3 above.

**5.** **General** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 We
 acknowledge that any breach of our obligations pursuant to this Undertaking may cause substantial damage for which the Group shall
 hold us liable.

5.2 The
 terms of this Undertaking shall be interpreted in such a way as to give them maximum enforceability at law. The unenforceability of
 any term (or part thereof) shall not affect the enforceability of any other part of this Undertaking.

5.3 Our
 undertakings hereunder are in addition to, and do not derogate from, any obligation to which we may be subject under applicable law
 or any Company policy or agreement.

---

| | | | |
|:---|:---|:---|:---|
|  | */s/ Elazar Sonnenschein*  |  | */s/* *D. L. L. D LTD* |
|  | The Consultant |  | The Service Provider |
| Name: | ELAZAR SONNENSCHEIN | Name: | E. SONNENSCHEIN |
| Date: | 11.01.2016 | Date: | 11.01.2016 |

---

**<u>Appendix C</u>**

---

| | |
|:---|:---|
| **WHEREAS,** | **PulseNMore Ltd.** company no. 515139129, having its registered address at 52 Begin Rd., Tel Aviv, Israel (the "Assignee"), has entered into a Consultancy Agreement with **D.L.L.D Consulting Ltd.** company no. 514649359, having its registered address at 44 Tamar St., Omer, Israel for the provision of services solely and personally through **Mr. Elazar Sonnenschein,** Israeli ID no. (jointly and severally, the **"Assignor")** to which this Deed of Assignment of Intellectual Property is attached; and |
| **WHEREAS,** | in the course of providing the Services under the Consultancy Agreement and any services provided to the Assignee prior to the engagement in the Consultancy Agreement (before and after the incorporation of the Assignee), the Assignor may now have or may in the future have, solely or jointly, acquired rights to Intellectual Property as hereinafter defined, ("the **IP");** and |
| **WHEREAS** | the Assignee is desirous of obtaining the entire right, title and interest in, to and under the IP and any ensuing rights, whether registered or not. |

---

**"Intellectual Property Rights"** shall mean all intellectual property rights, whether or not patentable, including without limitation, brands, business methods, computer programs, computer software, concepts, confidential information, firmware, certification marks, collective marks, copyright, data, databases, designs, derivative works, documents, file layouts, formulae, goodwill, idea, improvements, industrial design, information, know-how, logos, manufacturing information, mask works, materials, methods, moral rights, patents, patent applications, patent rights, included but not limited to any and all continuations, divisions, renewals, reissues, re-examinations or extensions, plans, processes, proprietary technology, reputation, research results, research records, service marks, software, specifications, systems, techniques, trade secrets, trademarks, trade names, trade styles, and technical information, and any rights analogous to the foregoing.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Assignor does hereby assign to the Assignee, its successors, legal representatives and assigns, all right, title and interest, if any, in, to and under the IP created in the course of, or in consequence of, providing the Services and any services provided to the Assignee prior to the engagement in the Consultancy Agreement (before and after the incorporation of the Assignee), and any ensuing rights, to the extent that there are such rights in favor of the Assignor (the **"Rights"),** including all rights, powers, privileges and immunities arising thereunder or conferred thereby, and all applications for intellectual or industrial property that may hereinafter be filed for the IP, in any jurisdiction, and all divisions, renewals and continuations thereof, and all registrations that may be granted thereon and all extensions and reissues thereof, together with any and all rights of priority relating to the IP and any registrations that may be granted thereon.

AND THE ASSIGNOR HEREBY declares that it has the full right to assign the Rights and that it has not and shall not enter into any agreement in conflict herewith.

AND THE ASSIGNOR HEREBY authorizes and requests any official of any relevant jurisdiction, whose duty it is to issue and record registrations on any application to register the Rights, to issue and record the same to and in the name of the Assignee, its successors, legal representatives and assigns, in accordance with the terms of this instrument.

AND THE ASSIGNOR HEREBY further covenants and agrees that it will communicate to the Assignee, its successors, legal representatives and assignees, any facts known to him representing the Rights, testify in any legal proceeding, sign all lawful papers, execute all divisional, continuing, reissue and foreign applications, make all rightful oaths, and generally do everything possible to aid the Assignee, its successors, legal representatives and assigns, to obtain and enforce proper protection for the Rights in all jurisdictions.

---

| | |
|:---|:---|
| D.I.I.D Consulting Ltd. | PulseNMore Ltd. |
| Mr. Elazar Sonnenschein | The Assignee |
| The Assignor | [Company Stamp and Signature] |
| */s/ Elazar Sonnenschein* |  |

---

## Exhibit 4.6

**Exhibit 4.6**

**AGREEMENT FOR MANAGEMENT SERVICES**

This agreement (the "**Agreement**") is entered into this day of , 2020, by and between **PulseNMore Ltd**. an Israeli limited liability company, registration number 515139129, having its registered address at 8 Omarim St, Omer, Israel (the "**Company**"), and Y.Adereth Strategic & Marketing Consulting Ltd an Israeli limited liability company, having its registered address a (the "**Consultant**").

---

| | |
|:---|:---|
| **WHEREAS** | The Company wishes the Consultant to provide the Company with certain services as set out herein solely and personally, through Mr. Jonathan Adereth, Israeli ID No. (the "**Chairman**") starting as of Effective Date (as defined below); and |

---

---

| | |
|:---|:---|
| **WHEREAS** | the Consultant wishes to provide the Services (as defined below) solely through the Chairman starting as of the Effective Date (as defined below); and |

---

---

| | |
|:---|:---|
| **WHEREAS** | The Consultant warrants that it and the Chairman have the ability, experience, expertise and resources to provide the Services (as defined below) and to perform all their obligations hereunder; and |

---

---

| | |
|:---|:---|
| **WHEREAS** | the parties wish to regulate their relationship in accordance with the terms and conditions set forth in this Agreement; |

---

**NOW, THEREFORE**, in consideration of the mutual covenants and understandings herein set forth, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1.  **<u>Recitals, Headings and Interpretation</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The
 recitals and Annexes form part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Headings
 are for reference purposes only and shall not in any way affect interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Services.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 the
 Consultant, through the Chairman, shall provide to the Company management services, including
 serving as an active chairman of the board of directors of the Company, as set out in **Appendix A** (the "**Services** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Consultant
 may not provide the Services through any person other than the Chairman, and in the event
 that Consultant is unable to continue and provide the Services through Chairman, then this
 Agreement shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Within
 the provision of the Services Chairman shall diligently and conscientiously devote the time,
 attention, and efforts, needed to provide his services successfully, in a professional manner,
 for the benefit of the business and affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;3.  **<u>Obligations and Representations of the Consultant</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 All
 Services shall be provided by Consultant, solely and personally through the Chairman, in
 accordance with the strategies and policies determined by the Board of Directors of the Company,
 the policies, regulations and practices of the Company and upon the terms and conditions
 hereinafter set forth. Consultant may not assign his rights and obligations hereunder. Any
 attempted assignment will be void and give Company the right to promptly terminate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The
 Consultant agrees and undertakes that the Chairman possesses the experience, expertise and
 ability that are required for providing the Services, and the Chairman shall act effectively,
 and apply the best of his qualifications, experience and wide knowledge, in order to perform
 his duties in the best way possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The
 Consultant agrees and undertakes, throughout the term of his engagement with the Company,
 not to receive any payment, compensation or any other benefit from any third party directly
 or indirectly related to his engagement hereunder or to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 The
 Consultant and/or the Chairman agree and undertake not to perform any act or to omit to perform
 any act which may breach their fiduciary duty to the Company, or which may place them in
 a position of conflict of interest with the objectives of the Company. In addition, the Consultant
 agrees and undertakes to inform the Company promptly of any matter that may place it and/
 or the Chairman in a situation of potential conflict of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 This
 Agreement shall not derogate from any rights and obligations of the Consultant and/or Chairman,
 under the Company's Article of Association and/or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 The
 Consultant agrees and undertakes that it and/or the Chairman shall not provide services to
 any third party which may place the Consultant and/or the Chairman in a conflict of interests
 with their undertakings and obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 The
 Consultant represent and warrants to the Company that there are no legal, contractual or
 other limitations or restrictions to which it and/or Chairman are subject to that would prevent
 or limit Consultant and/or Chairman in any way from providing the Services and complying
 with the terms of this Agreement at any time during the term of engagement hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;4.  **<u>Compensation</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The
 compensation the Company shall pay and/or provide the Consultant for his services hereunder
 are detailed in  **<u>Appendix A</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The
 Company shall arrange the Chairman an office in Raanana or Tel-Aviv.

&nbsp;&nbsp;&nbsp;&nbsp;5.  **<u>Term; Termination</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The
 Term of this Agreement shall commence 10 days after signing this Agreement (the "**Effective Date**") and continue until terminated by either party upon thirty (30) days prior
 written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Notwithstanding
 the foregoing, the Company may terminate this Agreement without any notice in the event of
 termination for Cause. In such an event the Consultant shall not be entitled to a notice
 period and/or any consideration in lieu of a notice period. "**Cause**" shall
 mean: (i) Consultant's and/or Chairman's violation of the Company's instructions,
 regulations, articles or policies; (ii) breach by Consultant and or Chairman of their fiduciary
 duties to the Company, (ii) engaging in any activity that is disruptive to the business of
 the Company and/or its subsidiaries; (iii) failure to competently and timely perform the
 Services; or (iv) any breach by Consultant and/or Chairman of the undertakings hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;6.  **<u>Proprietary Information</u>** 

Consultant and Chairman acknowledge that during the performance of this Agreement, they may learn or receive certain Proprietary Information. Consultant and Chairman agree that all inventions, know-how, trade secrets, information related to the activities of the Company and any affiliate (including their shareholders and partners) and other proprietary and/or non-public information pertaining to the Company, its affiliates and contractors that Consultant and/or Chairman learn, obtain or develop during the term of engagement hereunder (including, without limitation, the identity of and information relating to employees) constitute "**Proprietary Information**" of the Company. Consultant and Chairman will hold in confidence and neither disclose nor, except to the extent required for performing the Services, use any Proprietary Information, without the prior written consent of the Company. However, Consultant and/or Chairman shall not be obligated under this paragraph with respect to information Consultant and/or Chairman can evidence (i) is or becomes readily publicly available without restriction through no fault of Consultant and/or Chairman, or (ii) was known to the Consultant and/or Chairman prior to the Company's disclosure to them; or (iii) are known to the Consultant and/or Chairman from a source other than the Company, other than by the breach of an obligation of confidentiality owed to the Company. Consultant and/or Chairman will promptly return to Company all items and copies containing or embodying Proprietary Information upon termination of the engagement hereunder, or at such other time, as may be instructed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;7.  **<u>Relationship of the Parties.</u>** 

The Services will be provided to the Company on an independent contractor basis. Consultant and/or Chairman shall not be considered an employee of the Company, and nothing in this Agreement, in the provision of the Services by Consultant and/or Chairman shall create any employer - employee relations between the Company and Consultant and/or Chairman.

&nbsp;&nbsp;&nbsp;&nbsp;8.  **<u>Governing Law; Jurisdiction</u>.** 

This Agreement shall be governed by and construed in accordance with the laws of the State of Israel, regardless of its conflict of law provisions. The courts of Tel Aviv, Israel, shall have exclusive jurisdiction over any dispute arising in connection with this Agreement, including its interpretation and/or the enforcement of its terms.

**In witness whereof, the parties hereto have executed this agreement:**

---

| | |
|:---|:---|
| PulseNMore Ltd. | Y.Adereth Strategic & Marketing Consulting Ltd |
| By: | By: |
| Title: | Title: |
| Date: | Date: |

---

By signing below, I the undersigned, Mr. Jonathan Adereth, hereby confirm my guarantee to Consultant's undertaking to the Company pursuant to this Agreement.

---

| |
|:---|
| Mr. Jonathan Adereth |
| Date: |

---

**<u>Appendix A</u>**

**<u>The Scope of the Services and Compensation</u>**

<u>Scope of Services:</u>

To discharge the responsibilities of chairman of the board, as determined by Company's board of directors from time to time, including without limitation the scheduling, coordination and oversight of the functioning of the board of directors.

Consulting on aspects relating to Company's ongoing operations, including, without limitation, projects execution, budget control, business development, logistics, hiring personnel, R&D, fund raising.

Collaborate with the Company's management (CEO and Company's executives).

For the first 12-month, once every two weeks, the Chairman will attend and visit the Company (in Raanana/ Tel Aviv and Omer). Per the Chairman's availability, the Chairman will increase his attendance and visitation to the Company to one day per week and will be suitably compensated mutatis mutandis.

<u>Compensation:</u>

<u>Fee:</u> In consideration of the Services, and subject to the fulfillment of all of Consultant's obligations hereunder, the Company shall pay the Consultant a fee in the amount of NIS 15,000 + VAT ("**Fee**"). The Fee shall be paid on a monthly basis against a duly issued invoice and receipt from the Consultant. by way of wire transfer to Consultant bank account as shall be informed by Consultant in writing. <u>Board Meetings</u>: Subject to the Company's board of directors' resolution dated March 23, 2020, and unless decided otherwise by the Company, the Consultant shall be paid compensation for attendance at the meetings of the board of directors in the following amounts:

● Prior to the closing of the investment in the Company (preferred A-4 shares) – compensation in the amount of US$800.

● After the closing of the investment in the Company (preferred A-4 shares) - compensation in the amount of US$1,000.

<u>Total consideration and expenses:</u> The Consultant shall not be entitled to any other consideration or reimbursement, except as explicitly set forth in this Agreement and as may otherwise be specifically agreed in writing by Consultant and Company and approved by the Company's board of directors and the Company's general meeting (if necessary by the Company's Articles of Association and/or applicable law). The Company will reimburse Consultant for reasonable travel and other business expenses incurred by Consultant on behalf of the Company and in connection with the provision of the Services as a board of directors member in accordance with the Company's generally applicable policies, provided that all such expenses were approved in advance by the Company in writing, and all in accordance with the Company's articles of association and applicable law.

<u>Travel abroad</u> : In case of travel abroad on behalf of the Company, Consultant will be compensated based on the Company's generally applicable policies, however without derogating from the above, flights which are longer than 3 hours will be in Business Class and hotel accommodation will be in 4 Star hotels whenever possible.

<u>ESOP</u>: Consultant shall be entitled to the following:

Upon signing this Agreement and subject to (i) the approval of the Company's board of directors; (ii) the approval of the Company's general meeting; (iii) the execution of an applicable Option Agreement; (iv) the terms of the Company's 2019 Share Incentive Plan (the "**Plan**"), for the first year of the Consultant's Services, the Company will grant 1.5% of the current ESOP Pool (as defined below, as of the Effective Date); for the second year of the Consultant's Services, the Company will grant 1.5% of the ESOP Pool (as defined below, as of the lapse of (1) one year following the Effective Date), provided that this Agreement was not terminated by either party. All in accordance with the terms and conditions of the Plan (i.e., vesting over the course of 4 years) and, based on an option exercise price of US$1 per share. In addition, after two years, the board of directors of the Company shall decide about an additional grant of options to purchase ordinary shares of the Company.

The ESOP Pool shall mean, the Company's share capital (on a fully diluted basis), for allocation to existing and future employees, consultants and directors of the Company.

---

| | |
|:---|:---|
| PulseNMore Ltd. | Y.Adereth Strategic & Marketing Consulting Ltd |
| By: | By: |
| Title: | Title: |
| Date: | Date: |

---

By signing below, I the undersigned, Mr. Jonathan Adereth, hereby confirm my guarantee to Consultant's undertaking to the Company pursuant to this Agreement.

---

| |
|:---|
| Mr. Jonathan Adereth |
| Date: |

---

## Exhibit 4.7

**Exhibit 4.7**

**<u>PERSONAL EMPLOYMENT AGREEMENT</u>**

THIS PERSONAL EMPLOYMENT AGREEMENT (the **"Agreement"**) is made and entered into on this 1 day of January 2022, by and between **PulseNMore Ltd.** company no. 515139129, having its registered address at 8 Omarim St., Omer, Israel (the **"Company"**), and **Meir Shmouely** holder of Israeli ID no. Israel (the **"Employee"**).

**WHEREAS** Company wishes to employ Employee in the Position (as defined hereunder) as of the agreed employment commencement date and throughout the Term (as defined hereunder), and Employee agrees to be so employed by the Company; and

**WHEREAS** the Parties wish to regulate their relationship in accordance with the terms and conditions set forth in this Agreement;

**NOW, THEREFORE,** in consideration of the mutual premises, covenants and undertakings contained herein, the Parties hereto have hereby agreed as follows:

1. <u>**Representations and Warranties**</u> **.** Employee represents and warrants to Company that he is free to be employed by Company pursuant
 to the terms contained in this Agreement and there are no contracts and/or restrictive covenants
 preventing full performance of the Employee's duties and obligations hereunder.

2. <u>**Term.**</u> Employee's
 employment with the Company shall commence on the employment commencement date set forth
 in <u>**Annex A**</u> (the **"Employment Commencement Date"**), and shall continue until terminated in accordance with the
 provisions of Section 10 hereof (the **"Term"**).

3. <u>**Position.**</u> Employee shall
 be employed by Company on a time basis as set forth in <u>**Annex A**</u> in the position set forth in <u>**Annex A**</u> or any other position designated by Company (the **"Position"**).
 Employee shall report to the person set forth in <u>**Annex A**</u> or to any other office holder designated by the Company's CEO.

4. <u>**Employee's Duties.**</u> Employee undertakes throughout the Term:
 (a) to devote his working time, know-how, energy, expertise, talent, experience and best efforts, as shall be required, to the business
 and affairs of Company and to the performance of his duties with Company, and not to engage, without the prior written consent of the
 Company, in any other professional or business activity or occupation unless explicitly permitted to do so according to <u>**Annex A**</u> **;** (b) to perform faithfully, with devotion, honesty and fidelity, his obligations pursuant to his Position and not
 to harm Company's reputation; (c) to comply with all of Company's disciplinary regulations, work rules, policies, procedures
 and objectives, as may be determined by Company from time to time; (d) not to receive, at any time, directly or indirectly, any payment,
 benefit and/or other consideration, from any third party in connection with his employment with Company; (e) to immediately and without
 delay inform the Company of any affairs and/or matters that might constitute a conflict of interest with Employee's Position
 and/or employment with Company; (f) not to use any trade secrets or proprietary information in such a manner that may breach any confidentiality
 and/or other obligation Employee may have undertaken towards any third party; (g) to maintain the terms and conditions of this Agreement
 in strict confidence; (h) to assist the Company, at its request, in any action in which the Company is involved, and, unless required
 by law, not to assist any action brought against the Company; all, except for any actions of the Employee against the Company; and
 (i) Employee is aware that the Company may from time to time, with or without prior notice and subject to applicable law, monitor his
 activities in the framework of his work, including without limitation by means of monitoring, either constantly or sporadically, the
 Company's incoming and outgoing communications (including without limitation, the Company's email, phones, computers, etc.)
 and Employee hereby agrees to such monitoring and declares and confirms that said monitoring (and the results thereof) shall not constitute
 a breach of his privacy.

5. <u>**Compensation.**</u> 

The compensation and social and employee benefits that the Company shall pay and/or provide the Employee for his services hereunder are detailed in <u>**Annex A.**</u>

6. <u>**Proprietary Information and Confidentiality.**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Employee
 is aware that in the course of his employment with Company and/or in connection therewith,
 Employee may have access to, and be entrusted with, technical, commercial, legal, financial,
 and other data and information with respect to the affairs and business of the Company, its
 affiliates, customers and suppliers, and including information received by Company from any
 third party subject to obligations of confidentiality towards said third party, all of which
 data and information, whether documentary, written, oral or computer generated, shall be
 deemed to be, and referred to as **"Proprietary Information"**, which, by
 way of illustration but not limitation, shall include trade and business secrets, processes,
 improvements, ideas, inventions (whether reduced to practice or not, all - whether developed
 by employee and/or by others), techniques, products, and technologies (actual or planned),
 financial statements, marketing plans, strategies, forecasts, customer and/or supplier lists
 and/or relations, research and development activities, formula, data, know-how, designs,
 discoveries, models, computer hardware and software, codes, drawings, dealings and transactions,
 except for such information which, on the date of disclosure, is, or thereafter becomes,
 available in the public domain or is generally known in the industry through no fault of
 Employee.

6.2 Employee
 agrees and declares that all Proprietary Information and other intellectual property rights
 in connection therewith, are and shall remain the sole property of Company and/or its assigns.

6.3 Employee
 shall keep in confidence and trust all Proprietary Information and any part thereof, and
 will not use or disclose and/or make available, directly or indirectly, to any third party
 any Proprietary Information without the prior written consent of Company, except and to the
 extent as may be necessary in the ordinary course of performing Employees' duties pertaining
 to the Company and except and to the extent as may be required under any applicable law,
 regulation, judicial decision or determination of any governmental entity.

6.4 Without
 derogating from the generality of the foregoing, Employee agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.1 He
 will not copy, transmit, reproduce, summarize, quote, publish and/or make any commercial
 or other use whatsoever of the Proprietary Information, or any part thereof, without the
 prior written consent of Company, except as may be necessary in the performance of his duties
 pertaining to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.2 He shall exercise the highest
 degree of care in safeguarding the Proprietary Information against loss, theft or other inadvertent disclosure and will take all reasonable
 steps necessary to ensure the maintaining of confidentiality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.3 He
 shall not enter into the databases of Company for any purpose whatsoever, including, without
 limitation, review, download, insert, change, delete and/or relocate any information, except
 as may be necessary in the performance of his duties pertaining to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.4 Upon
 termination of his employment, and/or as otherwise requested by Company, he shall promptly
 deliver to Company all Proprietary Information and any and all copies thereof, in whatever
 form, that had been furnished to Employee, prepared thereby and/or came to his possession
 in any manner whatsoever, during and in the course of his employment with Company, and shall
 not retain and/or make copies thereof in whatever form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 Employee
 acknowledges that any breach by him of his obligations pursuant to this Section 7 would cause
 substantial damage for which the Company shall hold him liable. The provisions of this Section
 shall survive termination of this Agreement and shall remain in full force and effect at
 all times thereafter.

7. <u>**Non-Competition and Non-Solicitation**</u> 

Employee hereby covenants that throughout the Term and for a period of 6 months following the effective date of termination of Employee's employment, Employee will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Engage,
 directly or indirectly, whether independently or as an employee, Attorney or otherwise, through
 any corporation and/or with or through others, in any activity Competing with the actual
 and planned activities and products of the Company and its affiliates in the field of business
 of the Company (the **"Non-Compete Scope"**), as the same have existed and
 shall exist from time to time during the Term and thereafter as shall exist at the effective
 date of termination of his employment with Company.

7.2 Whether on his own account
 and/or on behalf of others, in any way offer, solicit, interfere with and/or endeavor to entice away from Company and/or any of its
 affiliates, any person, firm or company with whom Company and/or any of its affiliates shall have any contractual and/or commercial
 relationship as an employee, Attorney, licenser, joint venturer, supplier, customer, distributor, agent or contractor of whatsoever
 nature, existing or under negotiation on or prior to the effective date of termination of Employee's employment with Company
 and thereafter for a period of six (6) months.

7.3 Company
 and Employee agree that the Non-Compete Payments to Employee pursuant to <u>**Annex A**</u> are specifically attributable to the provisions contained in this Section. Should
 a court determine that any provision of this Section is unreasonable, either in period of
 time, scope or otherwise, the Parties agree that such covenant should be interpreted and
 enforced to the maximum extent which such court deems reasonable.

7.4 Based
 on, subject to and in reliance on Employee's obligations under this Section, the Company
 agrees to enter into this Agreement, pay the Employee the compensation detailed above and
 grant him access to the Company's Proprietary Information (including its intellectual
 property). Employee acknowledges that his obligations under this Section are solely derived
 from his access to the Proprietary Information, including Company's intellectual property.
 The provisions of this Section shall survive termination of this Agreement.

8. <u>**Inventions**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Employee
 agrees to promptly inform and disclose to Company all inventions, designs, improvements and
 discoveries which Employee now has or may hereafter have, whether during the Term and also
 at any time thereafter, provided that such inventions relate to the services of the Employee
 and/or to the Company, its activities and products or to any experimental work performed
 by Company, whether conceived by Employee alone or with others and whether or not conceived
 during regular working hours (**"Inventions"**).

8.2 All
 Inventions, and any and all rights, interests and title therein, shall be the exclusive property
 of Company and Employee shall not be entitled, and hereby waives now and/or in the future,
 any claim to any right, compensation, royalty and/or other financial reward in connection
 therewith. Employee specifically and explicitly agrees that he is not entitled to any compensation
 in connection with any "Service Inventions" under Section 134 of the Israeli
 Patent Law of 1967 and he irrevocably waive any right to receive compensation in connection
 with "Service Inventions" under Section 134 of the Israeli Patent Law of 1967
 or otherwise.

8.3 In
 the event that by operation of law, any Invention shall be deemed Employee's, the Employee
 hereby assigns and shall in the future take all the requisite steps to assign to Company
 and/or its designee any and all of his foregoing rights, titles and interests, on a worldwide
 basis. Employee hereby further acknowledges and shall in the future acknowledge Company's
 full and exclusive ownership in all such Inventions. To the extent necessary, Employee shall,
 during the Term or at any time thereafter, execute all documents and take all steps necessary
 to effectuate the assignment to Company and/or its designee and/or to assist Company to obtain
 the exclusive and absolute rights, title and interests in and to all Inventions, whether
 by the registration of patent, by a trade secret and/or any other applicable legal protection,
 and to protect same against infringement by any third party. This provision shall apply with
 equal force and effect to all items that may be subject to copyright or trademark protection.

8.4 The
 provisions of this Section shall survive termination of this Agreement and shall be and remain
 in full force and effect at all times thereafter.

9. <u>**Termination**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Either
 Party may, at any time and at least the advance notice set forth in <u>**Annex A**</u> (the **"Notice Period"**), furnish the other Party hereto with
 a written notice that this Agreement is terminated (**"Termination Notice"**).
 Notwithstanding the above, within the first 3 months of this Agreement, the Company may terminate
 this Agreement in accordance with the Notice Period for Dismissal and Resignation Act-2001.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 During
 the relevant Notice Period, the Employee shall be obligated to continue to perform all of
 his duties with Company and to take all steps, satisfactory to the Company, to ensure the
 orderly transition to any persons designated by Company of all matters handled by Employee
 during the course of his employment. Notwithstanding the above, Company shall be entitled
 to waive Employee's services with Company during the relevant Notice Period or any
 part thereof and/or terminate the employer-employee relationship prior to the completion
 of the Notice Period; in such event Company shall, for the duration of the relevant Notice
 Period, pay Employee the payments and the value of the social benefits to which the Employee
 is entitled under applicable law.

9.3 It
 is clarified that, in the event that the Company waives any and/or all of Employee's
 services during the relevant Notice Period as aforesaid, Employee shall, immediately, upon
 receipt of notice thereof, return to Company any and all materials and equipment provided
 to him for purposes of the performance of his duties under this Agreement.

9.4 In
 the event that Employee's employment is terminated due to circumstances depriving the
 Employee of the right to severance payments under applicable law, then, notwithstanding anything
 to the contract provided in this Agreement, the Employee shall not be entitled to receive
 severance pay or any other payment which the Company is not legally bound to pay.

9.5 Without
 derogating from any other undertaking of the Employee, upon termination of Employee's
 employment with Company, Employee undertakes to (i) transfer his Position to his replacement,
 as shall be determined by Company, in an efficient, complete, appropriate and orderly manner,
 and (ii) return to Company's principal office all and documentation, in any media which
 was given to him by the Company in connection with his employment.

9.6 Notwithstanding
 the above, the Company shall be entitled to terminate the Employee's employment immediately,
 without providing a prior notice or redemption thereof , in the event that the Employee commits
 any of the following: (a) embezzlement; (b) theft; (c) criminal offence; (d) act involving
 moral turpitude; (e) breach of any of the Employee's undertakings pursuant to Sections
 6-8 above or any other fundamental breach of this Agreement; (f) severe disciplinary breach;
 (g) breach of fiduciary duties; (h) lack of cooperation on the part of the Employee during
 the prior notice period or any part thereof; (i) any other act/or omission which under applicable
 law enable(s) entire and/or partial denial of severance payments or prior notice or redemption
 thereof - each of the Sub-Sections above, (a) through (i), shall be referred to herein as
 ''Termination for Cause".

10. <u>**General Provisions**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Employee
 shall not be entitled to any additional bonus, payment or other compensation in connection
 with his employment with Company, other than as provided in <u>**Annex A.**</u> 

10.2 Company
 shall withhold all taxes and other compulsory payments as required under applicable law with
 respect to all payments, benefits and/or other compensation paid to Employee in connection
 with his employment. Company shall be entitled to offset from any and/or all payments to
 which Employee shall be entitled, any and all amounts to which Company shall be entitled
 from Employee at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Either
 Party's failure or delay in enforcing any of the provisions of this Agreement shall
 not, in any way, be construed as a waiver of any such provisions, or prevent such Party thereafter
 from enforcing each and every other provision of this Agreement which were previously not
 enforced.

10.4 Notices
 given hereunder shall be in writing and shall be deemed to have been duly given on the date
 of personal delivery, three business days after the date of postmark if mailed by certified
 or registered mail, addressed as set forth above or such other address as either Party may
 designate to the other in accordance with the aforesaid procedure, or on the date given by
 hand.

10.5 This
 Agreement shall be interpreted and construed in accordance with the laws of the State of
 Israel. The Parties submit any dispute related to this Agreement including but not limited
 to the interpretation or enforcement thereof to the exclusive jurisdiction of the competent
 courts of Tel Aviv-Jaffa, Israel.

10.6 This
 Agreement constitutes the entire agreement of the Parties hereto with respect to the subject
 matters hereof, and supersedes all prior agreements and understandings between the Parties
 with respect thereto.

10.7 Captions
 and paragraph headings used in this Agreement are for convenience purposes only and shall
 not be used for the interpretation thereof.

10.8 This Agreement shall not
 be amended, modified or varied by any oral agreement or representation other than by a written instrument executed by the Parties.

10.9 This Agreement constitutes
 a "Notice regarding details of Terms of Employment" pursuant to the Notice to Employee Law (Terms of Employment)-2002.

*[Remainder of page intentionally left blank; signature page follows]*

 

**IN WITNESS WHEREOF,** the Parties hereto have hereby duly executed this Agreement on the day and year first set forth above.

---

| | |
|:---|:---|
| */s/ Elazar Sonnenschei**n***  | */s/ Meir Shmouely*  |
| **PulseNMore Ltd.** | **Meir Shmouely** |

---

**By:**

**<u>ANNEX A</u>**

**<u>Compensation</u>**

1. <u>**Employment Commencement Date**</u> January
 1st, 2022

2. <u>**Notice Period:**</u> 90
 days

3. <u>**Position of Employee:**</u> VP
 Software Development

4. <u>**Description:**</u> The Employee shall
 be responsible for all software development and operations in the Company, including but
 not limited to: Lead design and implementation of multiple software projects, including supervising
 teams; provide technical leadership and expertise, troubleshooting problems and mentoring
 team members; document requirements, feature sets and other key criteria, setting development
 schedule and tracking metrics; participate in executive meetings, plan and present objectives,
 budget, risks and more.

5. <u>**Person to whom the Employee is to report to:**</u> CEO

6. <u>**Scope of work:**</u> Full
 time basis (9 hours per day including lunch break, 5 days per week) from the Company office
 in Haifa.

Employee's day of rest shall be on Saturday.

<u>**Salary.**</u> In consideration for Employee's employment, during the term of this Employment Agreement, the Company shall pay Employee a base salary in the gross amount of **NIS 48,000** (the **"Base Salary"**).

The parties confirm that the Employee's job will require overtime work and work at irregular hours, without the need to approve each such hour. In consideration thereof, the Company will pay the Employee, in addition to the Base Salary, a gross sum of **NIS 9,000** per month (the **"Global Overtime Payment"**), which the parties estimate to be a fair average compensation for the overtime work and work at irregular hours per each month of employment, provided that, the Employee does not work more than 30 overtime hours per month.

In consideration for the Employee's non-competition and non-solicitation obligations set forth above, the Employee shall receive a monthly payment equal to **NIS 5,000** (the **"Non-Compete Payment"**).

7. <u>**Salary Determination**</u> **.** It is
 hereby agreed that the Employee's determining salary for the purpose of pension and
 other social benefits will also include the Global Overtime Payment and the Non-Compete Payment
 (the **"Salary"**) The Employee hereby acknowledges and agrees that the Company's
 approval according to this paragraph shall not be considered an admission by the Company
 that the Global Overtime Payment received by the Employee for overtime hours and the Non-Compete
 Payment, is considered a part of his Base Salary.

8. <u>**Bonus.**</u> A maximum annual
 bonus of 2 Base Salaries against 3 milestones (2/3 of a Base Salary each) to be determined
 during first 90 days of employment. These milestones will be related to the company objectives.

9. <u>**ESOP.**</u> As Compensation
 Committee shall decide, similar to VP level.

10. <u>**Travel reimbursement.**</u> The
 Company shall pay the Employee an amount of **NIS 3,000** per month to cover all car and
 travel expenses related to its employment in the Company

11. <u>**Cibus.**</u> Employee shall
 be entitled to a lunch reimbursement of up to 650 NIS per month.

12. <u>**Social and Employee Benefits**</u> For
 each month during the Employee's employment with the Company, the Company shall make
 contributions to the Employee's pension insurance of choice (either a pension fund
 or Manager's Insurance Policy (*Bituach Menahalim*) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 In
 the case of a pension fund - <u>**8.33%**</u> of the Salary towards severance pay and <u>**6.5%**</u> of the Salary towards compensatory payments. In addition, Employee shall contribute, and
 for that purpose he hereby irrevocably authorizes and instructs Company to deduct from his
 Salary at source, an aggregate monthly amount equal to §% of the Salary to such pension
 fund, subject to the Employee's request, this amount can be increased up to **7** %.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 In the case of a Managers'
 Insurance Policy - <u>**8.33%**</u> of the Salary towards severance pay and §%
 of the Salary towards as premium on a Managers' Insurance policy (**"Managers' Insurance Policy"**). In
 addition, the Company shall contribute, in accordance with an insurance policy for loss of working capacity insurance approved by the
 Minister of Labor and Social Welfare, <u>**up to 2.5%**</u> of the Salary, or up
 to the sum which shall provide for a disability allowance equal to seventy five percent (75%) of the Employee's Salary during
 the disability period of Employee, the lesser of the two, as premium for loss of working capacity insurance *(Ovdan Kosher Avoda).* In addition, Employee shall contribute, and for that purpose he hereby irrevocably authorizes and instructs Company to deduct from
 his Salary at source, an aggregate monthly amount equal to  **<u>6</u>** % of the Salary to such Managers' Insurance Policy.

12.3 Company and Employee, respectively
 declare that as evidenced by their respective signatures, they hereby undertake to be bound by the general settlement pertaining to
 Company's payment to the benefit of pension funds and insurance funds, under Section 14 of the Severance Pay Law-1963, in place
 and in lieu of severance payment, attached hereto as <u>**Annex B**</u> **.** Subject
 to the mutual signing of the attached undertaking, Company hereby forfeits any right it may have in the reimbursement of sums paid
 by Company into the above mentioned Manager's Insurance Policy, except in the event: (i) that Employee withdraws such sums from
 the Manager's Insurance Policy, other than in the event of death, disability or retirement at the age of 60 or more; (ii) of
 the occurrence of any of the events provided for in Sections 16 and 17 of the Severance Pay Law-1963. It is further agreed that such
 contribution made by Company towards the Manager's Insurance Policy as above mentioned, shall be in place of severance payment
 due to Employee under any circumstances in which Employee shall be entitled to severance payment under any applicable law, including
 but not limited to the Severance Pay Law-1963.

13. <u>**Vocational Studies Fund *(Keren Hishtalmut).***</u> Company
 shall contribute an aggregate monthly amount equal to 7.5% of the Salary towards a vocational
 studies fund (the **"Vocational Studies Fund"**). Employee shall contribute,
 and for that purpose, Employee hereby irrevocably authorizes and instructs Company to deduct
 from his Salary at source, an aggregate monthly amount equal to 2.5% of the Salary, as Employee's
 participation in such Vocational Studies Fund.

14. <u>**Annual Leave**</u> **.** The Employee shall be entitled to 18 days of annual vacation.

15. <u>**Convalescence Pay, Sick Leave.**</u> Employee
 shall be entitled to annual convalescence pay *(Dmei Havra'a),* sick leave and
 sick pay at the rates and times prescribed by law. Sick leave shall not be redeemable. The
 Employee shall be entitled to accrue up to 90 (ninety) days for the purpose of taking actual
 sick leave.

**<u>ANNEX B</u>**

GENERAL APPROVAL REGARDING PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY

By virtue of my power under Section 14 of the Severance Pay Law-1963 (the **"Law"**), I certify that payments made by an employer commencing from the date of the publication of this approval publication for his employee to a comprehensive pension benefit fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit Funds) Regulations-1964 (the **"Pension Fund"**) or to managers insurance including the possibility of an insurance pension fund or a combination of payments to an annuity fund and to a non-annuity fund (the **"Insurance Fund"**), including payments made by him by a combination of payments to a Pension Fund and an Insurance Fund, whether or not the Insurance Fund has an annuity fund (the **"Employer's Payments"**), shall be made in lieu of the severance pay due to the said employee in respect of the salary from which the said payments were made and for the period they were paid (the **"Exempt Salary"**), provided that all the following conditions are fulfilled:

(1) The
 Employer's Payments:

&nbsp;&nbsp;&nbsp;&nbsp;(a) To
 the Pension Fund are not less than 14⅓% of the Exempt Salary or 12% of the Exempt Salary
 if the employer pays for his employee in addition thereto also payments to supplement severance
 pay to a benefit fund for severance pay or to an Insurance Fund in the employee's name
 in an amount of 2⅓% of the Exempt Salary. In the event the employer has not paid an
 addition to the said 12%, his payments shall be only in lieu of 72% of the employee's
 severance pay;

(b) To
 the Insurance Fund are not less than one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 13⅓%
 of the Exempt Salary, if the employer pays for his employee in addition thereto also payments
 to secure monthly income in the event of disability, in a plan approved by the Commissioner
 of the Capital Market, Insurance and Savings Department of the Ministry of Finance, in an
 amount required to secure at least 75% of the Exempt Salary or in an amount of 2½%
 of the Exempt Salary, the lower of the two (**"Disability Insurance"**);

2. 11% of the Exempt Salary,
 if the employer paid, in addition, a payment to the Disability Insurance, and in such case the Employer's Payments shall only
 replace 72% of the Employee's severance pay; In the event the employer has paid in addition to the foregoing payments to supplement
 severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee's name in an amount of 2⅓% of
 the Exempt Salary, the Employer's Payments shall replace 100% of the employee's severance pay.

(2) No
 later than three months from the commencement of the Employer's Payments, a written
 agreement is executed between the employer and the employee in which -

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 employee has agreed to the arrangement pursuant to this approval in a text specifying the
 Employer's Payments, the Pension Fund and Insurance Fund, as the case may be; the said
 agreement shall also include the text of this approval;

(b) The
 employer waives in advance any right, which it may have to a refund of monies from his payments,
 unless the employee's right to severance pay has been revoked by a judgment by virtue
 of Section 16 and 17 of the Law, and to the extent so revoked and/or the employee has withdrawn
 monies from the Pension Fund or Insurance Fund other than by reason of an entitling event;
 in such regard "Entitling Event" means death, disability or retirement after
 the age of 60.

(3) This
 approval is not such as to derogate from the employee's right to severance pay pursuant
 to any law, collective agreement, extension order or employment agreement, in respect of
 salary over and above the Exempt Salary.

## Exhibit 4.8

**Exhibit 4.8**

<u>**PERSONAL EMPLOYMENT AGREEMENT**</u>

THIS PERSONAL EMPLOYMENT AGREEMENT (the **"Agreement")** is made and entered into on this 17 day of October 2021, by and between **PulseNMore Ltd.** company no. 515139129, having its registered address at 8 Omarim St., Omer, Israel (the **"Company"),** and Minelu (Menashe) Sonnenschein holder of Israeli ID (the **"Employee").**

**WHEREAS** Company wishes to employ Employee in the Position (as defined hereunder) as of the agreed employment commencement date and throughout the Term (as defined hereunder), and Employee agrees to be so employed by the Company; and

**WHEREAS** the Parties wish to regulate their relationship in accordance with the terms and conditions set forth in this Agreement;

**NOW, THEREFORE,** in consideration of the mutual premises, covenants and undertakings contained herein, the Parties hereto have hereby agreed as follows:

1. <u>**Representations and Warranties**</u> **.** Employee
 represents and warrants to Company that he is free to be employed by Company pursuant to
 the terms contained in this Agreement and there are no contracts and/or restrictive covenants
 preventing full performance of the Employee's duties and obligations hereunder.

2. <u>**Term**</u> **.** Employee's
 employment with the Company shall commence on the employment commencement date set forth
 in <u>**Annex A**</u> (the **"Employment Commencement Date"),** and shall continue until terminated in accordance with the
 provisions of Section 10 hereof (the **"Term").** 

3. <u>**Position**</u> **.** Employee shall be employed by Company on a time basis as set forth in <u>**Annex A**</u> in the position set forth in <u>**Annex A**</u> or any other position designated by Company (the **"Position").** Employee shall report to the person set forth in <u>**Annex A**</u> or to any other office holder designated by the Company's CEO.

4. <u>**Employee's Duties**</u> **.** Employee undertakes throughout the Term: (a) to devote his working time, know-how, energy,
 expertise, talent, experience and best efforts, as shall be required, to the business and
 affairs of Company and to the performance of his duties with Company, and not to engage,
 without the prior written consent of the Company, in any other professional or business activity
 or occupation unless explicitly permitted to do so according to <u>**Annex A**</u> **;** (b) to perform faithfully, with devotion, honesty and fidelity, his
 obligations pursuant to his Position and not to harm Company's reputation; (c) to comply
 with all of Company's disciplinary regulations, work rules, policies, procedures and
 objectives, as may be determined by Company from time to time; (d) not to receive, at any
 time, directly or indirectly, any payment, benefit and/or other consideration, from any third
 party in connection with his employment with Company; (e) to immediately and without delay
 inform the Company of any affairs and/or matters that might constitute a conflict of interest
 with Employee's Position and/or employment with Company; (f) not to use any trade secrets
 or proprietary information in such a manner that may breach any confidentiality and/or other
 obligation Employee may have undertaken towards any third party; (g) to maintain the terms
 and conditions of this Agreement in strict confidence; (h) to assist the Company, at its
 request, in any action in which the Company is involved, and, unless required by law, not
 to assist any action brought against the Company; all, except for any actions of the Employee
 against the Company; and U) Employee is aware that the Company may from time to time,
with or without prior notice and subject to applicable law, monitor his activities in the framework of his work, including without limitation
by means of monitoring, either constantly or sporadically, the Company's incoming and outgoing communications (including without
limitation, the Company's email, phones, computers, etc.) and Employee hereby agrees to such monitoring and declares and confirms
that said monitoring (and the results thereof) shall not constitute a breach of his privacy.

5. <u>**Compensation**</u> **.** 

The compensation and social and employee benefits that the Company shall pay and/or provide the Employee for his services hereunder are detailed in <u>**Annex A.**</u>

6. <u>**Proprietary Information and Confidentiality**</u> **.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Employee
 is aware that in the course of his employment with Company and/or in connection therewith,
 Employee may have access to, and be entrusted with, technical, commercial, legal, financial,
 and other data and information with respect to the affairs and business of the Company, its
 affiliates, customers and suppliers, and including information received by Company from any
 third party subject to obligations of confidentiality towards said third party, all of which
 data and information, whether documentary, written, oral or computer generated, shall be
 deemed to be, and referred to as **"Proprietary Information",** which, by
 way of illustration but not limitation, shall include trade and business secrets, processes,
 improvements, ideas, inventions (whether reduced to practice or not, all - whether developed
 by employee and/or by others), techniques, products, and technologies (actual or planned),
 financial statements, marketing plans, strategies, forecasts, customer and/or supplier lists
 and/or relations, research and development activities, formula, data, know-how, designs,
 discoveries, models, computer hardware and software, codes, drawings, dealings and transactions,
 except for such information which, on the date of disclosure, is, or thereafter becomes,
 available in the public domain or is generally known in the industry through no fault of
 Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Employee
 agrees and declares that all Proprietary Information and other intellectual property rights
 in connection therewith, are and shall remain the sole property of Company and/or its assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Employee
 shall keep in confidence and trust all Proprietary Information and any part thereof, and
 will not use or disclose and/or make available, directly or indirectly, to any third party
 any Proprietary Information without the prior written consent of Company, except and to the
 extent as may be necessary in the ordinary course of performing Employees' duties pertaining
 to the Company and except and to the extent as may be required under any applicable law,
 regulation, judicial decision or determination of any governmental entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Without
 derogating from the generality of the foregoing, Employee agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.1 He
 will not copy, transmit, reproduce, summarize, quote, publish and/or make any commercial
 or other use whatsoever of the Proprietary Information, or any part thereof, without the
 prior written consent of Company, except as may be necessary in the performance of his duties
 pertaining to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.2 He
 shall exercise the highest degree of care in safeguarding the Proprietary Information against
 loss, theft or other inadvertent disclosure and will take all reasonable steps necessary
 to ensure the maintaining of confidentiality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.3 He
 shall not enter into the databases of Company for any purpose whatsoever, including, without
 limitation, review, download, insert, change, delete and/or relocate any information, except
 as may be necessary in the performance of his duties pertaining to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.4 Upon
 termination of his employment, and/or as otherwise requested by Company, he shall promptly
 deliver to Company all Proprietary Information and any and all copies thereof, in whatever
 form, that had been furnished to Employee, prepared thereby and/or came to his possession
 in any manner whatsoever, during and in the course of his employment with Company, and shall
 not retain and/or make copies thereof in whatever form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 Employee
 acknowledges that any breach by him of his obligations pursuant to this Section 7 would cause
 substantial damage for which the Company shall hold him liable. The provisions of this Section
 shall survive termination of this Agreement and shall remain in full force and effect at
 all times thereafter.

7. <u>**Non-Competition and Non-Solicitation**</u> 

Employee hereby covenants that throughout the Term and for a period of 6 months following the effective date of termination of Employee's employment, Employee will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Engage,
 directly or indirectly, whether independently or as an employee, consultant or otherwise,
 through any corporation and/or with or through others, in any activity Competing with the
 actual and planned activities and products of the Company and its affiliates in the field
 of business of the Company (the **"Non-Compete Scope"),** as the same have
 existed and shall exist from time to time during the Term and thereafter as shall exist at
 the effective date of termination of his employment with Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Whether
 on his own account and/or on behalf of others, in any way offer, solicit, interfere with
 and/or endeavor to entice away from Company and/or any of its affiliates, any person, firm
 or company with whom Company and/or any of its affiliates shall have any contractual and/or
 commercial relationship as an employee, consultant, licenser, joint venturer, supplier, customer,
 distributor, agent or contractor of whatsoever nature, existing or under negotiation on or
 prior to the effective date of termination of Employee's employment with Company and
 thereafter for a period of six (6) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Company
 and Employee agree that the Non-Compete Payments to Employee pursuant to <u>**Annex A**</u> are specifically attributable to the provisions contained in this Section. Should
 a court determine that any provision of this Section is unreasonable, either in period of
 time, scope or otherwise, the Parties agree that such covenant should be interpreted and
 enforced to the maximum extent which such court deems reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 Based
 on, subject to and in reliance on Employee's obligations under this Section, the Company
 agrees to enter into this Agreement, pay the Employee the compensation detailed above and
 grant him access to the Company's Proprietary Information (including its intellectual
 property). Employee acknowledges that his obligations under this Section are solely derived
 from his access to the Proprietary Information, including Company's intellectual property.
 The provisions of this Section shall survive termination of this Agreement.

8. <u>**Inventions**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Employee
 agrees to promptly inform and disclose to Company all inventions, designs, improvements and
 discoveries which Employee now has or may hereafter have, whether during the Term and also
 at any time thereafter, provided that such inventions relate to the services of the Employee
 and/or to the Company, its activities and products or to any experimental work performed
 by Company, whether conceived by Employee alone or with others and whether or not conceived
 during regular working hours **("Inventions").** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 All
 Inventions, and any and all rights, interests and title therein, shall be the exclusive property
 of Company and Employee shall not be entitled, and hereby waives now and/or in the future,
 any claim to any right, compensation, royalty and/or other financial reward in connection
 therewith. Employee specifically and explicitly agrees that he is not entitled to any compensation
 in connection with any "Service Inventions" under Section 134 of the Israeli
 Patent Law of 1967 and he irrevocably waive any right to receive compensation in connection
 with "Service Inventions" under Section 134 of the Israeli Patent Law of 1967
 or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 In
 the event that by operation of law, any Invention shall be deemed Employee's, the Employee
 hereby assigns and shall in the future take all the requisite steps to assign to Company
 and/or its designee any and all of his foregoing rights, titles and interests, on a worldwide
 basis. Employee hereby further acknowledges and shall in the future acknowledge Company's
 full and exclusive ownership in all such Inventions. To the extent necessary, Employee shall,
 during the Term or at any time thereafter, execute all documents and take all steps necessary
 to effectuate the assignment to Company and/or its designee and/or to assist Company to obtain
 the exclusive and absolute rights, title and interests in and to all Inventions, whether
 by the registration of patent, by a trade secret and/or any other applicable legal protection,
 and to protect same against infringement by any third party. This provision shall apply with
 equal force and effect to all items that may be subject to copyright or trademark protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 The
 provisions of this Section shall survive termination of this Agreement and shall be and remain
 in full force and effect at all times thereafter.

9. <u>**Termination**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Either
 Party may, at any time and at least the advance notice set forth in <u>**Annex A**</u> (the **"Notice Period"),** furnish the other Party hereto with
 a written notice that this Agreement is terminated **("Termination Notice").** Notwithstanding the above, within the first 3 months of this Agreement, the Company may
 terminate this Agreement in accordance with the Notice Period for Dismissal and Resignation
 Act-2001.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 During
 the relevant Notice Period, the Employee shall be obligated to continue to perform all of
 hisduties with Company and to take all steps, satisfactory to the Company, to ensure the
 orderly transition to any persons designated by Company of all matters handled by Employee
 during the course of his employment. Notwithstanding the above, Company shall be entitled
 to waive Employee's services with Company during the relevant Notice Period or any
 part thereof and/or terminate the employer-employee relationship prior to the completion
 of the Notice Period; in such event Company shall, for the duration of the relevant Notice
 Period, pay Employee the payments and the value of the social benefits to which the Employee
 is entitled under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 It
 is clarified that, in the event that the Company waives any and/or all of Employee's
 services during the relevant Notice Period as aforesaid, Employee shall, immediately, upon
 receipt of notice thereof, return to Company any and all materials and equipment provided
 to him for purposes of the performance of his duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 In
 the event that Employee's employment is terminated due to circumstances depriving the
 Employee of the right to severance payments under applicable law, then, notwithstanding anything
 to the contract provided in this Agreement, the Employee shall not be entitled to receive
 severance pay or any other payment which the Company is not legally bound to pay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 Without
 derogating from any other undertaking of the Employee, upon termination of Employee's
 employment with Company, Employee undertakes to (i) transfer his Position to his replacement,
 as shall be determined by Company, in an efficient, complete, appropriate and orderly manner,
 and (ii) return to Company's principal office all and documentation,
in any media which was given to him by the Company in connection with his employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Notwithstanding
 the above, the Company shall be entitled to terminate the Employee's employment immediately,
 without providing a prior notice or redemption thereof, in the event that the Employee commits
 any of the following: (a) embezzlement; (b) theft; (c) criminal offence; (d) act involving
 moral turpitude; (e) breach of any of the Employee's undertakings pursuant to Sections
 6-8 above or any other fundamental breach of this Agreement; (f) severe disciplinary breach;
 (g) breach of fiduciary duties; (h) lack of cooperation on the part of the Employee during
 the prior notice period or any part thereof; (i)
any other act/or omission which under applicable law enable(s) entire and/or partial denial of severance payments or prior notice or
redemption thereof - each of the Sub-Sections above, (a) through (i), shall be referred to herein as "Termination for Cause".

10. <u>**General Provisions**</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Employee
 shall not be entitled to any additional bonus, payment or other compensation in connection
 with his employment with Company, other than as provided in <u>**Annex A**</u> **.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Company
 shall withhold all taxes and other compulsory payments as required under applicable law with
 respect to all payments, benefits and/or other compensation paid to Employee in connection
 with his employment. Company shall be entitled to offset from any and/or all payments to
 which Employee shall be entitled, any and all amounts to which Company shall be entitled
 from Employee at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Either
 Party's failure or delay in enforcing any of the provisions of this Agreement shall
 not, in any way, be construed as a waiver of any such provisions, or prevent such Party thereafter
 from enforcing each and every other provision of this Agreement which were previously not
 enforced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Notices
 given hereunder shall be in writing and shall be deemed to have been duly given on the date
 of personal delivery, three business days after the date of postmark if mailed by certified
 or registered mail, addressed as set forth above or such other address as either Party may
 designate to the other in accordance with the aforesaid procedure, or on the date given by
 hand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 This Agreement shall be interpreted and construed in accordance
with the laws of the State of Israel. The Parties submit any dispute related to this Agreement including but not limited to the interpretation
or enforcement thereof to the exclusive jurisdiction of the competent courts of Tel Aviv-Jaffa, Israel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 This
 Agreement constitutes the entire agreement of the Parties hereto with respect to the subject
 matters hereof, and supersedes all prior agreements and understandings between the Parties
 with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 Captions
 and paragraph headings used in this Agreement are for convenience purposes only and shall
 not be used for the interpretation thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 This Agreement shall not be amended, modified or varied by
any oral agreement or representation other than by a written instrument executed by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 This Agreement constitutes a "Notice regarding details
of Terms of Employment" pursuant to the Notice to Employee Law (Terms of Employment)-2002.

*[Remainder of page intentionally left blank; signature page follows]*

 

**IN WITNESS** WHEREOF, the Parties hereto have hereby duly executed this Agreement on the day and year first set forth above.

[Company Stamp]

---

| | | |
|:---|:---|:---|
| */s/ Elazar Sonnenschein* | */s/ Elazar Sonnenschein* | */s/ Menashe Sonnenschein* |
| PulseNmore Ltd. | PulseNmore Ltd. | Minelu (Menashe) Sonnenschein |
| By: | Danny Zostenker |  |

---

**<u>ANNEX A</u>**

<u>**Compensation**</u>

1. <u>**Employment Commencement Date**</u> October
 17th, 2021

2. <u>**Notice Period:**</u> 90
 days

3. <u>**Position of Employee**</u> **:** VP R&D

4. <u>**Description**</u> **:** VP R&D
 shall take full responsibility for the hardware development in the company's products
 and developments support for new products, support development of hardware for production,
 work in cooperation with VP Software and VP Regulation Affairs and manage all the hardware
 related issues in the company. In addition, responsibility for production is Israel.

5. <u>**Person to whom the Employee is to report to:**</u> Chief
 Executive Officer

6. <u>**Scope of work**</u> **:** Full time basis (9 hours per day including lunch break, 5 days per week). From the Company
 office in Omer.

Employee's day of rest shall be on Saturday.

<u>**Salary.**</u> In consideration for Employee's employment, during the term of this Employment Agreement, the Company shall pay Employee a base salary in the gross amount of NIS 40,000 (the **"Base Salary").**

The parties confirm that the Employee's job will require overtime work and work at irregular hours, without the need to approve each such hour. In consideration thereof, the Company will pay the Employee, in addition to the Base Salary, a gross sum of NIS 7,500 per month (the **"Global Overtime Payment"),** which the parties estimate to be a fair average compensation for the overtime work and work at irregular hours per each month of employment, provided that, the Employee does not work more than 30 overtime hours per month.

In consideration for the Employee's non-competition and non-solicitation obligations set forth above, the Employee shall receive a monthly payment equal to NIS 2,500 (the **"Non-Compete Payment").**

7. <u>**Salary Determination**</u> **.** It is
 hereby agreed that the Employee's determining salary for the purpose of pension and
 other social benefits will also include the Global Overtime Payment and the Non-Compete Payment
 (the **"Salary")** The Employee hereby acknowledges and agrees that the Company's
 approval according to this paragraph shall not be considered an admission by the Company
 that the Global Overtime Payment received by the Employee for overtime hours and the Non-Compete
 Payment, is considered a part of his Base Salary.

8. <u>**Bonus.**</u> A maximum annual
 bonus of NIS 75,000 against 3 milestones (NIS 25,000 each) to be determined during first
 90 days of employment.

9. <u>**ESOP.**</u> As the Compensation
 Committee shall decide.

10. <u>**Company Car.**</u> The
 Company shall provide the Employee with a Company car of the class available from time to
 time for the Employee's use (the "**Company Car"),** currently similar
 to Mazda 3 with a limit for fuel consumption of NIS 2,000 per month. Employee can choose
 to upgrade the vehicle however he will imburse the difference in cost. The Employee shall
 take good care of the Company Car and ensure that the provisions of the insurance policy
 and the Company's rules relating to the Company Car are strictly, lawfully and carefully
 observed.

Subject to applicable law, the Company shall bear all expenses relating to the Company Car and to the use and maintenance thereof, excluding expenses incurred in connection with any violation of law (including without limitation any traffic fines and the like), which shall be paid solely by Employee. The Employee shall bear all expenses, losses and damages caused as a result of a breach of the duties under the Company guidelines for use of the Company Car. The Employee shall be responsible for all tax imposed on him as a result of the Company Car being placed at his disposal.

Upon the termination of employment hereunder including, if applicable, the Notice Period, the Employee shall return the Company Car (together with its keys and any other equipment supplied and/or installed therein by the Company and any documents relating to the Company Car) to the Company's principal office. The Employee shall have no rights of lien with respect to the Company Car and/or any of said equipment and documents.

11. <u>**Social and Employee Benefits**</u> 

For each month during the Employee's employment with the Company, the Company shall make contributions to the Employee's pension insurance of choice [either a pension fund or Manager's Insurance Policy *(Bituach Menahalim)]* as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 In
 the case of a pension fund - <u>**8.33%**</u> of the Salary towards severance pay and <u>**6.5%**</u> of the Salary towards compensatory payments. In addition, Employee shall contribute, and
 for that purpose he hereby irrevocably authorizes and instructs Company to deduct from his
 Salary at source, an aggregate monthly amount equal to 2°/o of the Salary to such pension
 fund, subject to the Employee's request, this amount can be increased up to **7%.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 In
 the case of a Managers' Insurance Policy - <u>**8.33%**</u> of the Salary towards severance pay and §% of the Salary towards as premium on a Managers'
 Insurance policy **("Managers' Insurance Policy").** In addition, the
 Company shall contribute, in accordance with an insurance policy for loss of working capacity
 insurance approved by the Minister of Labor and Social Welfare, <u>**up to 2.5%**</u> of the Salary, or up to the sum which shall provide for a disability allowance
 equal to seventy five percent (75%) of the Employee's Salary during the disability
 period of Employee, the highest of the two, as premium for loss of working capacity insurance *(Ovdan Kosher Avoda).* In addition, Employee shall contribute, and for that purpose
 he hereby irrevocably authorizes and instructs Company to deduct from his Salary at source,
 an aggregate monthly amount equal to§% of the Salary to such Managers' Insurance
 Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Company
 and Employee, respectively declare that as evidenced by their respective signatures, they
 hereby undertake to be bound by the general settlement pertaining to Company's payment
 to the benefit of pension funds and insurance funds, under Section 14 of the Severance Pay
 Law-1963, in place and in lieu of severance payment, attached hereto as <u>**Annex** B</u>. Subject to the mutual signing of the attached undertaking, Company hereby forfeits
 any right it may have in the reimbursement of sums paid by Company into the above mentioned
 Manager's Insurance Policy, except in the event: (i) that Employee withdraws such sums
 from the Manager's Insurance Policy, other than in the event of death, disability or
 retirement at the age of 60 or more; (ii) of the occurrence of any of the events provided
 for in Sections 16 and 17 of the Severance Pay Law-1963. It is further agreed that such contribution
 made by Company towards the Manager's Insurance Policy as above mentioned, shall be
 in place of severance payment due to Employee under any circumstances in which Employee shall
 be entitled to severance payment under any applicable law, including but not limited to the
 Severance Pay Law-1963.

12. <u>**Vocational Studies Fund *(Keren Hishtalmut)***</u>  *.*** Company
 shall contribute an aggregate monthly amount equal to 7.5% of the Salary towards a vocational
 studies fund (the **"Vocational Studies Fund").** Employee shall contribute,
 and for that purpose, Employee hereby irrevocably authorizes and instructs Company to deduct
 from his Salary at source, an aggregate monthly amount equal to 2.5% of the Salary, as Employee's
 participation in such Vocational Studies Fund.

13. <u>**Annual Leave**</u> **.** The Employee shall be entitled to 19 days of annual vacation.

14. <u>**Convalescence Pay, Sick Leave**</u> **.** Employee
 shall be entitled to annual convalescence pay *(Omei Havra'a),* sick leave and
 sick pay at the rates and times prescribed by law (for that matter only, the Employee will
 start with a 10 year seniority). Sick leave shall not be redeemable. The Employee shall be
 entitled to accrue up to 90 (ninety) days for the purpose of taking actual sick leave.

**<u>ANNEX B</u>**

![](ex4-8_002.jpg)

GENERAL APPROVAL REGARDING PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY

By virtue of my power under Section 14 of the Severance Pay Law-1963 (the **"Law"),** I certify that payments made by an employer commencing from the date of the publication of this approval publication for his employee to a comprehensive pension benefit fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit Funds) Regulations-1964 (the **"Pension Fund")** or to managers insurance including the possibility of an insurance pension fund or a combination of payments to an annuity fund and to a non-annuity fund (the **"Insurance Fund"),** including payments made by him by a combination of payments to a Pension Fund and an Insurance Fund, whether or not the Insurance Fund has an annuity fund (the **"Employer's Payments"),** shall be made in lieu of the severance pay due to the said employee in respect of the salary from which the said payments were made and for the period they were paid {the **"Exempt Salary"),** provided that all the following conditions are fulfilled:

(1) The
 Employer's Payments:

&nbsp;&nbsp;&nbsp;&nbsp;(a) To
 the Pension Fund are not less than 14<sup>1</sup>/3% of the Exempt Salary or 12% of the Exempt
 Salary if the employer pays for his employee in addition thereto also payments to supplement
 severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee's
 name in an amount of 21/3% of the Exempt Salary. In the event the employer has not paid an
 addition to the said 12%, his payments shall be only in lieu of 72% of the employee's
 severance pay;

&nbsp;&nbsp;&nbsp;&nbsp;(b) To
 the Insurance Fund are not less than one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 13<sup>1</sup>/3%
 of the Exempt Salary, if the employer pays for his employee in addition thereto also payments
 to secure monthly income in the event of disability, in a plan approved by the Commissioner
 of the Capital Market, Insurance and Savings Department of the Ministry of Finance, in an
 amount required to secure at least 75% of the Exempt Salary or in an amount of 2½%
 of the Exempt Salary, the lower of the two **("Disability Insurance");** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. 11%
 of the Exempt Salary, if the employer paid, in addition, a payment to the Disability Insurance,
 and in such case the Employer's Payments shall only replace 72% of the Employee's
 severance pay; In the event the employer has paid in addition to the foregoing payments to
 supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the
 employee's name in an amount of 21/3% of the Exempt Salary, the Employer's Payments
 shall replace 100% of the employee's severance pay.

(2) No
 later than three months from the commencement of the Employer's Payments, a written
 agreement is executed between the employer and the employee in which -

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 employee has agreed to the arrangement pursuant to this approval in a text specifying the
 Employer's Payments, the Pension Fund and Insurance Fund, as the case may be; the said
 agreement shall also include the text of this approval;

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 employer waives in advance any right, which it may have to a refund of monies from his payments,
 unless the employee's right to severance pay has been revoked by a judgment by virtue
 of Section 16 and 17 of the Law, and to the extent so revoked and/or the employee has withdrawn
 monies from the Pension Fund or Insurance Fund other than by reason of an entitling event;
 in such regard "Entitling Event" means death, disability or retirement after
 the age of 60.

(3) This
 approval is not such as to derogate from the employee's right to severance pay pursuant
 to any law, collective agreement, extension order or employment agreement, in respect of
 salary over and above the Exempt Salary.

## Exhibit 4.9

**Exhibit 4.9**

**<u>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 for the Supply of Services and Products** 

Signed on 28 October 2024

---

| | |
|:---|:---|
| between | **Healthcare Clalit [**Main Management**]** |
|  | 101 Markharzorov St., Tel Aviv |
|  | Through the authorized signatories: |

---

Name __________________ ID _______________ _________ position <br>Name __________________ ID _______________ _________ position

(hereinafter: **"Clalit"** or "**the Client**")

---

| | |
|:---|:---|
| And | **Pulsenmore Ltd.** |
|  | VIII.T. 515139129 |
|  | 8 Omrim St., Baran Bldg., Omer 8496500 |
|  | Through the authorized signatories: |

---

Name: Elazar Sonnenschein ID _______________ Position: Director and CEO <br>Name: Lior Luria ID _______________ Position: Business Development Manager

(hereinafter: the "**Supplier**" or the "**Company**")

---

| | |
|:---|:---|
| **Because** | And the Ordering It is one of the largest health organizations in the world and provides medical services to its policyholders ("**Insured**") By faculty members in their role ("**Clinicians**") operating in medical centers and clinics in the community; |

---

---

| | |
|:---|:---|
| **Whereas,** | And the Supplier He owns the full rights to an innovative and advanced technological solution developed by him, which deals with the ability to minimize ultrasound by means of a device for performing a self-ultrasound examination by pregnant women, in a manner that-Synchronous (App Guided) and synchronously (Clinician Guided) In addition, the ability to make the examination performed on the device accessible while being able to transfer the test tape to the clinician, online using the cloud, and the software for smart cellular devices that enables interfacing with devices and can be downloaded and installed by end users, and a computerized and internet platform that enables communication and management between various endpoints, including between the devices and the cellular devices on which the application is installed, and stations connected to this platform, which Allow the Ordering Physicians/Clinicians access through the Client's computer system to view the test video and the computerized test results from the company's cloud, for the purpose of Remote physical examination in a telepathic encounter – medicine between a doctor and a patient – for the purpose of diagnostics (hereinafter: "**Solution**") all as detailed in the definitions detailed in the agreement and in accordance with the aforesaid **<u>In Appendix B'</u>**; It should be clarified that the solution is not intended for finding defects and is not used for "systems review". The solution is used to test the amount of amniotic fluid, fetal movements and pulse. |

---

---

| | |
|:---|:---|
| **Whereas,** | and on August 2, 2020, an agreement was signed between the parties, which was extended until today 2.8.2024 whereby the Company provides the Ordering Party with the solution in accordance with the terms set out in the said Agreement (hereinafter collectively: "**The First Agreement**"); |

---

---

| | |
|:---|:---|
| **Whereas,** | and the Supplier hereby declares that it has the knowledge, experience, professional skill, skills, resources, means, personnel, approvals, permits, rights of use and licenses required for the performance of all its obligations under the Contract, including without derogating from From the aforesaid to the supply of the devices and/or the solution and/or the services, including the provision of a warranty, Support and maintenance, and in accordance with the rest of the detailed instructions Agreement; |

---

---

| | |
|:---|:---|
| **Whereas,** | And the Ordering And the Supplier interested in entering into an agreement with each other to provide the solution, subject to and in accordance with the terms of the agreement, so that the customer can continue to supply it to its policyholders The Solution As set forth in this Agreement; |

---

**Therefore, it was declared, agreed upon and stipulated between the parties as follows:**

1. Appendices

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. List
 of Appendices:

**<u>Appendix A'</u>** - Appendix of Consideration

**<u>Appendix In'</u>** - Solution Specification ("**Technical Specifications**")

**<u>Appendix C</u>** - Addendum to the Agreement – Follicle follow-up from 14.12.2021 (Pulsenmore FC)

**<u>Appendix IV'</u>** - Service Appendix Support & Maintenance

**<u>Appendix the'</u>** - Developing an interface tailored to the client

**<u>Appendix F (1)-(2)</u>** - Data Protection Appendices

**<u>Appendix m'</u>** - insurance

**<u>Appendix H</u>'**- Product Documents and the license to use

**<u>Appendix 9</u>** - Medical Device Approval

**<u>Appendix J</u>** – Appendix Instructions Regarding the Sending and Receiving of Electronic Messages

**<u>Appendix 11</u>** – Appendix to Development Procedures

2. <u>Introduction, Appendices and Commentary</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 preamble to this Agreement and its appendices are an integral part of it. Matters, terms
 and obligations appearing in the appendices to this Agreement, even if they are not included
 in the body of the Agreement, are an integral and binding part of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. The
 headings of the clauses are provided for the convenience of the reader only, and no use should
 be made of them in the interpretation of the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. In
 the event of a contradiction between a provision of this Agreement and a provision of the
 Appendices to the Agreement, the provisions of the Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Any
 changes, amendments and/or additions to the Agreement shall not be effective unless they
 are made in writing and signed by all parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. This
 agreement shall not be construed against its drafter and shall be deemed to have been drafted
 by all parties.

3. <u>definitions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. **"Device(s)** "
 or "**Product(s)** ": Devices for performing a home ultrasound examination
 that allow independent use by the Ordering Policyholder, as detailed in Appendix **B**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. **"Application"**:
 A software application of the Provider installed on the mobile phones of the insured that
 orders and interfaces with the Platform as detailed in Appendix B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. **"Platform"**:
 An online system through which the test tape recorded in the application on the device is
 transferred to the provider's cloud infrastructure for the purpose of enabling viewing
 tests from various end stations of the customer (computers and/or various systems connected
 to the platform) for the purpose of remote physical examination in a telepathic encounter
 – medicine between a doctor and a patient – for the purpose of diagnostics, as
 well as a computerized and internet platform that enables communication and management of
 communication between various endpoints, including between the devices and the cellular devices
 on which the application is installed. and stations connected to this platform, all as detailed
 in Appendix **B.** 

Use of the platform will include viewing the examination videos and test results uploaded by the insured through the application in the company's cloud infrastructure, for the purpose of a remote physical examination in a telemedicine encounter between a doctor/clinician and a policyholder/patient for the purpose of medical diagnosis to be performed by the client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. **"The Solution"**: The Platform, the Devices and the Application with all their components.

3.5. **"End Users"**: Insured by the Client and/or clinicians and/or physicians and/or anyone
 on behalf of the Client who make use of the Solution with all its components.

3.6. **"Services" –** the supply of the devices to the Ordering Party and the provision of a license
 and the possibility of use of the Solution by the End Users, including support and maintenance
 services, in accordance with the provisions of this Agreement.

4. <u>The Follicle Product</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. On
 December 14, 2021, the parties signed an addendum to the first agreement, which deals with
 the supply of a product intended for women undergoing in the process of in vitro fertilization
 (IVF) Pulsenmore FC, intended for self-examination of the size of the follicles (attached
 as an appendix to this agreement) (hereinafter: the "**Follicle Product Agreement** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. It
 is agreed that the first term of the Follicle Product Agreement (as defined above) will be
 for a period of 5 years from the date of completion of the suspension terms specified therein,
 and the Agreement will continue to be in force in accordance with the terms specified therein
 (the reference to the "First Agreement" in the Follicle Product Agreement will
 be updated in such a way that the reference to the "First Agreement" will apply
 with the necessary changes in relation to this Agreement).

5. <u>Declarations and Obligations of the Parties</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Vendor
 declares and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. It
 owns all rights in any respect required to provide the services, knowledge, information (including
 training materials), and products under this Agreement, including the Solution and its components,
 and the Product Documents).

5.1.2. The
 use of the Solution in all its components in accordance with this Agreement and its appendices
 is free and permitted and there is no impediment whatsoever, including with respect to patent
 rights, trade secrets, copyrights, intellectual property rights of any kind or any other
 right of any third party, which prevents or may prevent or delay or limit the use of the
 Solution, in whole or in part, or which may derogate from the rights of the Client under
 this Agreement.

5.1.3. He
 has the knowledge, experience, means, manpower, equipment and accessories necessary to provide
 the Services as required by this Agreement.

5.1.4. It
 has all the necessary approvals, permits and licenses in accordance with the provisions of
 any law and the competent authority to conduct its business and to fulfill all its obligations
 under this Agreement, and it is responsible for ensuring that all the required approvals,
 permits and licenses remain valid throughout the period during which this Agreement will
 be in effect. Upon the Ordering Party's written demand, the Supplier will provide the
 Ordering Party with all such approvals, permits and licenses, no later than 7 (seven) days
 from the date of the demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.5. The
 Solution, with all its components, has a valid ATP certificate as attached **in Appendix I,** and it will continue to be valid for the entire period of the engagement and as long
 as the Ordering Party and/or the End Users use the Solution in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.6. will
 make any necessary changes in order to ensure that the solution will operate in full accordance
 with the provisions of any applicable law and all its components, as well as in full compliance
 with the instructions and guidelines of the Ministry of Health and any other competent authority.
 If, during the Engagement Period, there are changes in such law, instructions or guidelines
 that have an impact on the Solution and its use, the parties will discuss in good faith the
 manner in which the changes will be made and the implications involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.7. It
 is clear to it all the terms of the Agreement, including all the documents and/or appendices
 and/or others attached to it that are an integral part of it, and it has thoroughly examined
 all the data and circumstances required for the execution of this Agreement and/or that may
 affect the fulfillment of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.8. There
 is no provision in any law applicable to the supplier, and in any agreement to which he is
 a party, that prevents or restricts him from entering into this agreement and performing
 all of his obligations under it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.9. Supervision
 by Clalit for the purpose of executing the Agreement will not release the Supplier from its
 obligations to Clalit to carry out the provisions of this Agreement and the instructions
 given thereunder, in full and in the best possible manner, and from the Supplier's
 liability for its acts and/or omissions and/or acts and/or omissions of all those acting
 on its behalf and/or on its behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.10. He
 will cooperate fully and professionally with the Ordering Party and/or anyone on its behalf
 in connection with the performance of its obligations under this Agreement, and will also
 obey the written instructions of the Ordering Party and/or anyone on its behalf in accordance
 with the provisions of this Agreement and will act in accordance with the provisions of any
 law and competent authority. Without derogating from the generality of the aforesaid, the
 supplier undertakes to act in accordance with any law, including the Consumer Protection
 Law and Regulations and the Defective Products Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.11. The
 Supplier's declarations and undertakings, as stated in this chapter above, are material
 to the engagement between the parties and a breach of any undertaking or declaration will
 constitute a fundamental breach of the Agreement.

5.2. The
 Ordering Party declares and undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1. It
 is not prohibited, whether contractual or by law, from ordering and receiving the services
 and products under this Agreement.

5.2.2. It
 undertakes to comply with the terms and limitations of the Product Documents and the License
 to Use as set forth **in Appendix K** and is aware of it and it agrees that the
 license granted under this Agreement is subject to its compliance with this undertaking.

5.2.3. In
 receiving and using the services and products, you will act in accordance with the relevant
 law and law.

5.2.4. It
 has and will have all the necessary permits and approvals, including from the end users,
 to provide healthcare services through the solution and provider.

6. <u>Ordering and Supplying Devices and Services</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. The
 Ordering Party undertakes to transfer to the Supplier, within 14 days of the entry into force
 of the Agreement, a Binding Order ("Agreement" and "Order" within
 the meaning of these terms by the Ordering Party) for 25,000 Devices, for the supply of 1,250
 Devices every 3 (three) months from the beginning of each calendar year. (Hereinafter: "**Base Order**") (in the fifth year of the engagement, the supply for the last 3 months
 will be advanced, so that it will be supplied within the framework of the fifth year of the
 engagement). In addition, the Ordering Party will be entitled but not obligated to place
 orders for the purchase of additional devices from time to time and at its sole discretion
 when the minimum quantity of devices per order is 500 Devices - the Supplier undertakes to
 supply any quantity of Devices ordered by the Ordering Party.

6.2. The
 base orders are the only reservations that the Ordering Party is obligated to place under
 this Agreement. By signing this agreement, it is agreed between the parties that there is
 no obligation to order and/or supply devices by virtue of the engagement in the previous
 agreement or pursuant to it.

6.3. Subject
 to sending a written order for products and/or services from Clalit in accordance with this
 Agreement, the Supplier will allow the Ordering Party and the Ordering Party to use any unit
 of the device ordered under this Agreement, including the possibility of using the solution,
 access to the Platform, and the possibility of interfacing with the application that can
 be downloaded by any End User in accordance with the terms of this Agreement, including the
 terms of the User License(as defined below).

6.4. Base
 orders will be delivered by Supplier in quarterly shipments unless otherwise agreed between
 the parties.

6.5. The
 supplier may make partial deliveries at its discretion, provided that the cost of the shipment
 is at the expense of the supplier, provided that at least 500 products are supplied in each
 shipment. The delivery date of additional orders (beyond the base orders), if they are executed,
 will be determined in accordance with the agreement and prior approval of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. In
 addition to the above, simultaneously with the transfer of the base order, and within 21
 days from the beginning of each engagement year, Clalit will transfer to the Supplier an
 order for the support services (as defined in Appendix D) in that engagement year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. The
 provisions of this Agreement shall prevail over any conflicting provisions in any order for
 services and products, unless expressly stated otherwise and with the consent of the parties
 in such an order.

7. <u>Engagement Period</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The
 engagement period under this Agreement is for a period of 60 months **,** which will be
 counted from the date of the signing of the Agreement by the parties (hereinafter: **the "Engagement Period** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. During
 the engagement period, the Ordering Party will be entitled to contact the Supplier with individual
 purchase orders. Upon the end of the engagement period, the Ordering Party will no longer
 be entitled to contact the Supplier with a request for the supply of products/services, however,
 the performance of the obligations required of the Supplier within the Engagement Period,
 will be completed in accordance with the schedule executed for it, even if the termination
 of the performance is after the end of the Engagement Period, including the Supplier's
 liability under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Notwithstanding
 the foregoing, either party may terminate this Agreement without cause or reason whatsoever,
 by means of 9 (nine) months' prior written notice to the other party (hereinafter:
 the "**Advance Notice** "). During the notice period, the Ordering Party will
 be entitled to sell the remaining devices in its possession to End Users. It is clarified
 that the Supplier will continue to provide the Services in such a way that the End Users
 will be able to make full and proper use of the Solution and all its components, as well
 as to provide support and maintenance services, for a period of 12 months from the date of
 the Advance Notice, all in accordance with the provisions of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Return/Exchange of Devices</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. It
 is clarified that in the event of a defect and/or defect and/or non-conformity that can be
 discovered from the external packaging of the device and/or from the delivery note, the Ordering
 Party will return to the supplier the defective and/or defective devices as aforesaid within
 15 business days from the date of receipt of the relevant shipment. Devices returned in accordance
 with the provisions of this section will be returned by the Ordering Party to the Supplier's
 place of business, sealed in their original packaging, (except in cases where the defect
 was discovered by the Customer due to the opening of the original packaging) in which they
 were supplied to the Customer, and in return the Supplier will provide the Ordering Party
 with replacement devices free of charge.

8.2. It
 is clarified that the Ordering Party will have the right to return to the Supplier devices
 that will be supplied, in the event that the Devices do not conform to the specifications
 of the Appliance (except in cases where the defect and/or defect can be discovered from the
 external packaging of the Device), provided that it reported this to the Supplier within
 15 business days from the date of discovery of the defect and/or defect and/or malfunction
 and/or non-conformity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. Return/replacement
 of devices in cases of malfunctions discovered by the Ordering Party's policyholders
 who purchased the device will be carried out in accordance with the provisions **of Appendix D**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. In
 addition to the aforesaid, in the event that an insured of the Ordering Party who purchased
 a device from it, lawfully exercised any right granted to him under the Consumer Protection
 Law, 5741-1981 and its Regulations (including the Consumer Protection Regulations (Cancellation
 of a Transaction) 5771-2010) (hereinafter (collectively: the "**Consumer Protection Law and Regulations**") against the Ordering Party with respect to the device that
 he purchased, the Ordering Party will be entitled to exercise the same right against the
 Supplier under the same conditions and to the extent that the said insured exercised the
 right against it. It is clarified that in the event that an insured returns any device to
 the Ordering Party, the Ordering Party will be entitled to exercise the rights of the End
 User as if it were the End User, and the dates specified in the law will be counted from
 the date on which the returned device was delivered to the Ordering Party, provided that
 the device was returned to the Ordering Party within the period set out in the Consumer Protection
 Regulations (Cancellation of Transaction) 5771-2010, the Ordering Party will be entitled
 to return the said device to the Supplier. Subject to presentation to the supplier of a written
 and appropriate reference of the purchase of the device and its date.

9. <u>The Medical Equipment Law, 5772-2012 (hereinafter: "the Law")</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. As
 long as Clalit (and/or anyone on its behalf) uses, according to its needs and in accordance
 with its sole and absolute discretion, the use (including partial) and/or marketing of the
 Solution and/or the Devices **(hereinafter: the "** Period of Use"), the Supplier
 will comply with all of the instructions listed below, without exception:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1. The
 Solution, with all its parts and components (hereinafter and hereinafter in this chapter:
 the "**Solution** "), will be registered in the Medical Equipment Register,
 which is conducted in accordance with the provisions of the law (hereinafter: the "**Register** "),
 with the supplier being the owner of the registration, and will fulfill all the conditions
 required for the purpose of such registration.

9.1.2. The
 Supplier shall comply with all the provisions and obligations imposed by virtue of the provisions
 of any law on a Registrar in relation to the Solution, including but not exhausting by virtue
 of the provisions of the Law.

9.1.3. At
 the request of the Ordering Party, the Supplier shall submit to the Client a written report
 regarding the status and conditions of registration of the Solution in the Register, including
 details regarding the expiry date of the registration period as of the date of the reporting.

9.1.4. Without
 derogating from the generality of the aforesaid, the Supplier shall notify Clalit in writing
 of any change, if any, in the registration status of the Solution in the Register, including
 a change in the terms of registration, all within a reasonable time after becoming aware
 of such change. In the event that the registration of the Solution in the Register is canceled,
 terminated or suspended before the end of the period of use as stated in Section 10.2 below,
 the Supplier shall submit to Clalit, once every [\*\*\*] ([\*\*\*]) days, according to a mailing
 list to be determined by it, an interim written report regarding the status of the handling
 of the renewal of the registration of the Solution in the Register, including details regarding
 the terms of the renewal of the registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.5. If
 the validity of the registration of the solution in the register is about to expire or expire, the supplier undertakes to renew the
 registration of the solution in the register, at its own expense, and to perform all the necessary actions for this purpose, all in
 accordance with the provisions of the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. Canceled,
 discontinued or suspended, for any reason whatsoever (and even if the supplier was not the
 owner of the registration in the first place), the registration of the solution in the register
 before the end of the period of use and the registration was not renewed within or later
 than the lapse of 120 (one hundred and twenty) days, or, at the very least, imposed by virtue
 of the law during the period of use. An order whose execution has not been delayed that prevents
 the use of the device and the aforesaid order has not been revoked within and no later than
 the passage of [\*\*\*] ([\*\*\*]) days (hereinafter collectively: the "**Incident** "),
 the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.1. The
 Ordering Party will return to the Supplier all the devices and/or parts of the Solution without
 exception and the Supplier will refund Clalit for them under the terms of current payment
 plus [\*\*\*] days from the date of the event.

9.2.2. The
 supplier will provide Clalit with an alternative solution whose capabilities and features
 are no less than those of the solution lawfully registered in the register. The provision
 of such a solution shall be made within and no later than [\*\*\*] ([\*\*\*]) days from the date
 of the incident.

9.2.3. In
 the event that the Supplier is unable to provide Clalit with an alternative solution in accordance
 with the aforesaid and the Ordering Party is obliged to collect/notify the policyholders
 who purchased the device and are in active pregnancy that it is not possible to use the devices
 due to the lack of medical device approval, this will be considered a fundamental breach
 of the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. It
 is clarified that a valid approval of a medical device is a terminating condition for the
 engagement, and therefore if this condition is not met, Clalit will have grounds for cancelling
 the agreement, if the breach is not corrected within [\*\*\*] days.

10. <u>License to use the solution</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. Subject
 to placing an order for products / services in accordance with this Agreement, the Supplier
 hereby grants the Ordering Party and/or anyone on its behalf a license to use the Solution
 and/or any part thereof, as well as a license to market and sell the devices and services
 for the purpose of using the Solution by the End Users. The license granted to the Ordering
 Party under this Agreement is not transferable or assigned by the Ordering Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. During
 the term of the Agreement, and subject to placing an order for services and products in accordance
 with the terms of this Agreement, the Ordering Party will be entitled to market the devices
 purchased from the Supplier to its policyholders (including through third parties), and to
 allow its policyholders direct or indirect access to the Solution/Platform through the devices,
 application or adapted interface (as defined below) in accordance with the terms of this
 Agreement, including the terms of the User License(as defined below).

10.3. Vendor
 declares that it owns all rights in the Solution and that it is responsible for ensuring
 that the performance of its obligations under this Agreement does not involve infringement
 of any patent or design or trademark or trade secret or know-how or copyright or any other
 intellectual property right or other proprietary right belonging to any third party. Without
 derogating from the generality of the aforesaid and the rest of the provisions of this Agreement,
 the Supplier undertakes to indemnify Clalit and/or anyone on its behalf for and against any
 claim of a third party or expense arising out of a breach of the rights of any third party
 in connection with the provision of the Services by the Supplier, except to the extent that
 the aforesaid is caused by (a) the Ordering Party's failure to comply with its obligations
 under this Agreement; its negligence or malicious conduct or (b) any additions or changes
 made by the Ordering Party to the Solution and/or the Services without the approval of the
 Supplier or any combination of the Solution and/or the Services with any other software or
 hardware that the Supplier has not approved. Such indemnification will be subject to the
 following conditions: Clalit will notify the Supplier of the receipt of the claim and/or
 a demand in connection with the aforesaid and will allow the Supplier, to the extent possible,
 to manage the defense, provided that the conduct of such proceeding will not prejudice and/or
 detract from Clalit's rights.

10.4. Without
 establishing any obligation to the Client in connection with obtaining the End User's
 consent to the End User License and the use to be made of the Solution, it is agreed and
 clarified that any use of the Solution by an End User who is not a clinician involves the
 consent of such End User to the terms of the End User License. The terms of the End User
 License are attached **as Appendix H** (hereinafter: "**the User's License** ").

10.5. The
 Ordering Party undertakes that any use of the Device or Platform by End Users who are clinicians
 will be done in accordance with the terms of this Agreement, including the terms of the User
 License, and as will be updated from time to time in coordination with Clalit in accordance
 with the provisions of Section 10.4 above. A breach of the User's License will be considered
 a violation by the Ordering Party of the terms of this Agreement **. The** license for
 use intended for the approval of medical staff in accordance with this clause in the form
 to be agreed upon between the parties shall be attached to this agreement.

10.6. Without
 establishing any liability or liability to the Customer, it is agreed that all the documents
 that will be attached to the Devices by the Supplier (the "**Product Documents** ")
 are the Product Documents distributed in general by the Supplier when selling the Devices
 to its customers. Operating and maintenance instructions in accordance with this Agreement
 and the law (including those describing the Supplier's liability and the manner of
 exercising the rights of the End User) shall be written in the product documents by the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. The
 Supplier will notify the Ordering Party in writing of changes in the Product Documents and/or
 the User's License (as opposed to the Product Documents and/or the User's License
 as drafted on the day of signing the Agreement as **attached in Appendix H)** that may
 adversely affect the Ordering Party and/or the Service provided to the End Users. It is clarified
 that such changes will not apply retroactively but will apply to products that have not yet
 been supplied to the Customer, including products that have been ordered and have not yet
 been supplied to the Ordering Party by the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8. The
 Product Documents and the User License shall comply with the provisions of this Agreement,
 including in connection with information security, maintenance and provisions regarding the
 use of information collected from the End User. The Supplier undertakes that it will be written
 in the product documents and/or in the End User License (a) that the use of the Solution
 will be possible only subject to compliance with the terms of the End User License; (b) An
 explanation of the service and the transfer of information about the user. The Ordering Party
 will be entitled, in coordination with the Supplier, to add, by means of an external sticker
 or additional wrapper, notices and/or terms that are consistent with this Agreement, and
 addressed to the End Users, which will apply between the Ordering Party and the End Users
 only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9. <u>Restrictions and Limitations</u> – The license granted by the Supplier to the Ordering Party pursuant
 to this Agreement for the use and/or marketing of the Solution for the purpose of its use
 by the Ordering Party and anyone on its behalf, as well as by the End Users – is conditional
 on compliance with the following restrictions and restrictions. The Ordering Party agrees
 and undertakes to refrain and act reasonably in order to prevent any party acting on its
 behalf, including clinicians and information systems staff:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9.1. any
 use of the Solution or any part thereof, which is not for the purpose of this Agreement;

10.9.2. any
 copying, imitation, reverse engineering, modification, disassembly, creation of derivative
 works of, of or from the Solution or any part thereof, and investigation and/or discovery
 of the technology and know-how underlying the Solution or any part thereof;

10.9.3. any
 use of the Solution or any part thereof for unlawful purposes;

10.9.4. Any
 use of the Solution or any part thereof in conjunction with or in combination with other
 components that are not Vendor's and are not part of the Solution, whether software
 or hardware, unless Vendor has given written approval for such use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9.5. It
 is hereby clarified that this Agreement does not deal with and does not allow the use of
 the Solution or any part thereof outside of Israel, including by end users. To the extent
 that the parties wish to allow use outside the State of Israel as aforesaid, this will be
 discussed and agreed upon between the parties in a separate written agreement. It is clarified
 that the temporary use of the Ordering Party's policyholders outside of Israel, of
 the devices purchased in Israel, is not under the control of the Ordering Party and will
 not be considered a breach of this clause by the Ordering Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9.6. the
 inclusion or integration into the Customized Interface (as defined below)(a) of any malicious
 computer software or that has an expected adverse effect on the End Users or the Solution
 or any part thereof, including viruses, harmful or misleading routines, any software code
 that enables remote takeover or influence on the User or the Solution that is not planned
 or foreseeable under this Agreement, and (b) any software whose integration into the Customized
 Interface may impair the Vendor's ability to commercialize the Solution or any part
 of it. Unless expressly permitted by this Agreement.

11. <u>Collaboration & Marketing & Distribution</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. During
 the term of the Agreement, the Ordering Party will be entitled to market and sell the devices
 it purchased from the Supplier and the rights to use the Solution, within the framework of
 the health services that the Ordering Party provides to its policyholders through marketing
 channels available to the Ordering Party, including at the Ordering Party's pharmacies,
 and Clalit Online (home delivery or distribution point) and/or any other service of the Ordering
 Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. The
 Ordering Party will be entitled to sell and distribute the Solution that it has purchased
 from the Supplier under the terms of this Agreement, provided that no change will be made
 in the branding, visibility, and design of the Solution, except for the addition of the Customer's
 logo and logos as agreed between the parties on the product packaging. The Ordering Party
 confirms that any logo, logo or name displayed on the product packaging at the request of
 the Ordering Party, is its full and exclusive ownership and does not and will not infringe
 any third party rights, including intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. Neither
 party shall publish or allow the publication of any notice or statement with respect to the
 results of the engagement under this Agreement, including with respect to the results and
 evaluation of the services and solution provided by the Supplier under this Agreement, unless
 the other party's prior written approval is given, except for notices by the Ordering
 Party to its policyholders or to the Regulator to the extent required by law, provided that
 with respect to such notices by law, the notices shall be limited to the minimum details
 of information required in order to comply with the aforesaid legal requirements In any case,
 each party shall inform the other party of such notices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. It
 is agreed that if the Ordering Party engages with third parties for the purpose of marketing
 the Solution and/or the Devices that it purchased from the Supplier to its policyholders,
 then the Ordering Party undertakes (a) to notify the Supplier of the identity of these third
 parties nearby, and to the extent possible, prior to the commencement of the engagement with
 them as aforesaid; (b) ensure that those third parties enter into an agreement with the Supplier
 in which they will be bound by the obligations required to protect the rights of the Supplier
 in a manner that is not less than what is specified in this Agreement and (c) will be liable
 to the Supplier for any act or omission contrary to what is stated in this Agreement of those
 third parties in connection with the Solution and/or the Products, as if they were an act
 or omission of the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5. It
 is agreed that the Parties will do their best to promote the marketing and sale of the Solution
 under this Agreement during the term of the Agreement.

12. <u>Responsibility</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. The
 supplier undertakes that any device supplied to the customer and the use of the solution
 with all its components will be in accordance with the characteristics of the product and
 the specifications attached **as Appendix B**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. Without
 derogating from the supplier's obligations towards the end users, including by law,
 it is agreed that the warranty period for each device will be for [\*\*\*] **months** from
 the date of delivery to the customer, and in any case **no more than** [\*\*\*] **months from the date of first operation of the device** (hereinafter: the "**Warranty Period** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. With
 respect to any improper device (including any of its components) delivered bythe Ordering
 Party to the Supplier (and for which the Supplier's liability applies) in accordance
 with the provisions of this Agreement or the law, the Supplier will replace it with a new
 and working device, all at the expense of the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. The
 Supplier will provide the Ordering Party with full support and maintenance services for the
 Solution, (hereinafter: "**Support and Maintenance** Services")In accordance
 with the provisions set forth **in Appendix D,** without derogating from its liability
 under the provisions of the Agreement, this Appendix is intended to expand/add/detail the
 provisions of this Agreement and not to detract from it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. Without
 derogating from the generality of the aforesaid, the Supplier undertakes to replace, any
 device in which a fault or defect or incompatibility is discovered between the device and
 the product characteristics specified **in Appendix B** (hereinafter: "**Fault** ")
 subject to the following conditions: (a) The fault was discovered during the warranty period
 as defined above; (b) The device in which the fault was discovered was returned to the supplier;
 (c) The malfunction was not caused by any act or action of the Ordering Party or the End
 User in contravention of the product documents, the User's license and/or the manufacturer's
 instructions attached **as Appendix H.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. In
 the event that a malfunction is discovered after the activation of the device, caused by
 a fracture or corrosion, the faulty device will not be replaced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. Without
 derogating from the aforesaid, it is hereby agreed that in order to improve the provision
 of a solution to the policyholders, as of the end of the first year of the agreement period,
 the supplier will provide the customer once a year with a quantity equal to [\*\*\*]% of the
 quantity of devices supplied to it during the previous year free of charge. Beyond the aforesaid,
 no additional devices will be supplied and/or replaced free of charge. This mechanism will
 be examined by the parties [\*\*\*] months from the date of signing the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. The
 Ordering Party undertakes to keep and store the devices it purchased from the Supplier and
 which have not yet been supplied to end users, under proper storage conditions suitable for
 the storage of electronic medical devices, for a period not exceeding [\*\*\*] months from the
 date of supply of the devices to the Customer. It is clarified that the Ordering Party will
 sell the devices to the end users using the first-in-first out method, so that a product
 that was supplied to it first in first place will be sold first to the end user, and so on.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. The
 aforesaid does not derogate from the supplier's obligations under the law (including
 the Consumer Protection Law and Regulations and the Defective Products Liability Law, 5740-1980
 (the "Defective Products Law **"**, according to which it is clarified that
 the supplier will be considered as the manufacturer of the solution), and in accordance with
 the other provisions of this agreement.

12. <u>Tutorials</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. The
 Ordering Party undertakes: (a) to provide the policyholders with instruction regarding how
 to operate and use the device by a certified instructor / doctor / videos (as applicable)
 subject to receiving instruction from the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. The
 Supplier undertakes: (a) to provide an end user who is a member of the Ordering Party's
 medical team with dedicated training from the Supplier or by a member of the medical team
 authorized to do so by the Supplier. (b) To conduct training for representatives of the Ordering
 Party's technical center wherever the Ordering Party instructs and/or online according
 to the Ordering Party's instructions, as often as agreed between the parties.

13. <u>The Reward</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. In
 exchange for fulfilling all of the Supplier's obligations under this Agreement, the
 Supplier will be paid consideration in accordance with the details in Appendix **A** (hereinafter:
 the "**Consideration** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. No
 additional payment will be paid to the Supplier beyond the aforementioned consideration,
 except for VAT, which will be added to each Clalit payment at its rate at the time of actual
 payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. In
 relation to any order for services and/or devices made by the Ordering Party in accordance
 with the provisions of this Agreement, the Supplier will attach to each Device Order that
 is actually supplied by the Supplier an account for payment accompanied by a signed delivery
 note and a tax invoice in accordance with the law (which will be uploaded to the System as
 instructed by the Ordering Party after the shipment) (hereinafter collectively: the "**Account** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. Clalit
 will pay the Supplier the amount of the bill approved by Clalit within [\*\*\*] ([\*\*\*]) days
 from the end of the month in which the bill was submitted by the Supplier ()"**Current +** [\*\*\*]) and against a tax invoice in accordance with the law, provided that all the
 instruments have actually been supplied by the Supplier. In the case of a service order divided
 into supply batches, the supplier will issue an invoice to the customer with each supply
 batch.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5. The
 consideration as defined above constitutes the full consideration for the performance and
 provision of the services in accordance with the Agreement, including and without derogating
 from the generality of the aforesaid, to the extent applicable, components, training, support,
 production costs, installation of the software and training, depreciation and wear and tear,
 administrative and general expenses, insurance, all taxes, fees, levies and other mandatory
 payments imposed on the supplier, for the performance and provision of the services, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6. Any
 tax, levy and/or mandatory payment of any kind or any other expense in respect of the products
 and/or services and/or their supply will apply exclusively to the supplier and will be paid
 by him. Clalit will deduct from any payment to the supplier any amount that it must deduct
 under any law, including taxes, levies and other mandatory payments, and their payment as
 aforesaid will constitute evidence of the full payment due to the supplier from Clalit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7. It
 is clarified that the consideration does not include changes and improvements, adjustments
 or developments related to the device and the solution that are not included as part of the
 contract ()"**Shulchan"**). In the event that the Ordering Party requires the
 Supplier to perform a Responsible, the Supplier will examine the nature of the demand and
 if it is interested and able to perform them, it will submit a price quote to the Ordering
 Party. In any event, the consideration for the Shulchan will be determined through coordination
 and cooperation between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8. As
 a prerequisite for making payments to the supplier, the supplier will provide Clalit with
 the following certificates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8.1. A
 valid Licensed Dealer Certificate under the Value Added Tax Law, 5736-1975;

13.8.2. A
 valid annual approval from the VAT authorities for lawful reporting in each fiscal year during
 the period of the existence of this agreement;

13.8.3. approval
 of withholding tax;

13.8.4. Any
 other approval required by law and/or according to Clalit's reasonable requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9. It
 is hereby clarified that a condition for the validity of this engagement is that the Supplier
 has adopted the procedures for sending and receiving electronic messages relating to orders,
 invoices, delivery notes and any other electronic message included in the accounting with
 Clalit Health Services, using online technologies that Clalit advises from time to time,
 as detailed in Appendix **J** to the Agreement. Electronic messages as aforesaid that
 will not be received and sent in accordance with the provisions of Clalit and contrary to
 the provisions of this section will not bind Clalit in any form or manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10. An
 amount that was not paid by the Ordering Party on time and [\*\*\*] days have passed from the
 date of payment – will bear an interest rate of [\*\*\*]% per month linked to the Consumer
 Price Index published each month starting from the first day of Pro-Rata In other words,
 if there are [\*\*\*] days of delay, for example, the number of days of arrears will be calculated
 according to a monthly interest rate of [\*\*\*]%, all linked to the price index published once
 a month. It is clarified that Clalit will not be liable for any additional payment to the
 supplier for such delay.

14. <u>secrecy</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. "**Confidential Information**" means, any information, data and/or knowledge, provided by one party
 (and/or anyone on its behalf) to the other party (including by way of foreseeability), related
 to that party and/or its customers and/or in connection with the activities, plans, technologies
 and business of a party to this Agreement, any information owned by such party, and any other
 information, including documents, contracts, financial data and other data, Whether or not
 such information is expressed in a physical product, whether orally, in writing, in graphic
 form, in print, visually, machine-readable or otherwise, whether or not marked as "confidential
 information" or in any other way, including processes, techniques, methods, concepts,
 systems, inventions, programs, formulas, diagrams, data, images, Computer programs, prototypes,
 models, research materials, development or experiments (including development and process
 experimentation), workflows, functions, features, products, samples, designs, product programs,
 economic and business information, personal information, customer lists, suppliers and consumers,
 ideas, production processes, product development ideas, existing and developed technologies,
 marketing information, test and evaluation results, tests, as well as professional secrets
 or documents as well as examples or parts of the above. It is hereby clarified that the commercial
 terms of this Agreement are confidential information of the parties and neither party shall
 be entitled to disclose them without the consent of the other party, provided that neither
 party shall be prevented from disclosing them in the framework of due diligence in connection
 with investment, merger or acquisition transactions, under an obligation to maintain appropriate
 confidentiality. Notwithstanding the above, confidential information will not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.1. Public
 Information, except if Information has become public as a result of a breach of this Agreement;

14.1.2. Information
 received by the recipient of the information from a third party, for which the recipient
 of the information does not owe a duty of confidentiality towards the disclosing party regarding
 such information;

14.1.3. Information
 that is proven by means of written documents that the recipient of the information was known
 prior to the date of disclosure or that was created afterwards independently and without
 any reference to or use of the other party's confidential information.

It is agreed that (1) identifying information (as defined below); and (2) information unique to the Ordering Party (provided that it is not in the public domain and/or known to the public in the fields of information security) received by the Supplier from the Ordering Party, will be considered confidential information of the Ordering Party, and the aforementioned exceptions will not apply to identifying information.

Each party hereby agrees and undertakes that it and/or anyone on its behalf will maintain complete confidentiality, will not disclose or disclose to any person and/or entity whatsoever and will not remove from their possession any confidential information of the other party and/or any part thereof, of any kind and type whatsoever and at any stage, except disclosure to third parties as is necessary in order to fulfill their part of this Agreement. Provided that any disclosure of Confidential Information to such third party shall be subject to a written non-disclosure agreement, the terms of which are no more lenient than those stated in this Section 14.1 . Each party shall be liable in respect of any breach by such third parties of the terms of this Clause, as if committed by it. Each party shall safeguard the other's confidential information by taking the same security measures as that party takes in order to protect and safeguard its own confidential information, and in any case shall take no less From reasonable security measures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. This
 section shall not prevent any party from disclosing confidential information that is required
 by Israeli law to disclose to any person or authority, provided that in the event that it
 is required by law or a decision of a court or competent authority, as aforesaid, to disclose
 the information and/or any part thereof, directly or indirectly, the party required to disclose
 it shall notify the other party immediately and in writing prior to the provision of any
 information (to the extent possible in accordance with the provisions of the law, the court
 and/or the competent authority), and the other party will be entitled to act at its own expense
 in order to defend itself and object to such a demand (without derogating from the fulfillment
 of the provisions of the law, the court and/or the competent authority by the party required
 to do so).

14.3. Upon
 termination or termination of this Agreement for any reason, each party shall return to the
 other any document and/or other material that embodies the other party's confidential
 information, including all copies of such material in its possession, and each party shall
 delete any such material from any magnetic or optical means in its possession, in such a
 way that it shall not remain in its possession or in its possession any document or information
 relating to the other party and its customers, notwithstanding the aforesaid, it is clarified
 and agreed that each party shall be entitled to keep a copy One to back up any confidential
 information related to the performance of this Agreement in order to (a) comply with the
 requirements of the law and/or (b) to defend against claims and/or proceedings on behalf
 of the Ordering Party, the Supplier, the End Users and/or any other regulatory authority,
 in connection with this Agreement and/or the activity within it. Subject to the foregoing,
 all confidentiality obligations under this Agreement will continue to apply to this copy
 without limitation of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4. The
 parties' obligations under this clause will remain in effect indefinitely, whether
 or not this Agreement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5. Without
 derogating from all of the above, the Ordering Party is aware that the Supplier is a public
 company and therefore, the Confidential Information may constitute "Insider Information"
 as defined in the Securities Law, 5728 – 1968 (hereinafter in this subsection "**the Law** "), and the Ordering Party is aware that the Law prohibits the execution of
 a transaction in the Supplier's security while it is in possession of insider information,
 and that the use and/or delivery of the Insider Information to third parties may In certain
 circumstances, to constitute a criminal offense and/or to impose heavy financial sanctions,
 and that the Ordering Party undertakes to make use of the said information subject to the
 provisions of the Law and solely for the purpose for which the information was provided by
 the Supplier.

15. <u>Information Security</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. Upon
 a written request from Clalit, the Supplier will sign data protection appendices **in the form of Appendix F(1)-F(2)** to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. The
 parties declare that they are aware of the criminal and civil sanctions that they may expect
 (in addition to the measures due to the breach of the agreement), if they violate the provisions
 of the privacy protection laws, the medical confidentiality laws, the Commercial Torts Law,
 etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. The
 Supplier must act to secure the information it receives from Clalit and/or its employees
 in accordance with internationally accepted standards and in accordance with the requirements
 of the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. The
 Provider will notify Clalit Health Services of any subpoena related to Clalit Health Services'
 data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. Clalit
 data accumulated in the Provider's cloud infrastructure will be accessible in accordance
 with the terms of this Agreement to Clalit, including for the purpose of retrieval, transfer,
 etc., and the Provider will not prevent such access and/or transfer for any reason whatsoever,
 including in the event of a dispute between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6. The
 parties' obligations under this clause will remain in effect indefinitely, whether
 or not this Agreement is in effect.

16. <u>Privacy & Databases</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1. Unless
 the Ordering Party has received written permission to do so from the Insured, it is clarified
 and agreed between the parties that the Ordering Party undertakes not to transfer and not
 allow the provision of access to information and personal data regarding End Users according
 to which the said End User can be identified (in this section "**the Information** ").The
 Provider undertakes not to collect or obtain access to such information unless the express
 authorizations have been obtained in accordance with the law from the subject of such information.
 Subject to the foregoing, Content Information ()"**Content Information**" means
 any identifiable information, including information entered into the Solution through End
 Users or the Ordering Party) will be accessible and collected by the Supplier, only for the
 purpose of (and to the extent necessary for) the provision of the Solution and the provision
 of the Services under this Agreement to the Ordering Party in accordance with its instructions,
 including for the purpose of providing technical support Tier 2 in accordance  **<u>with Appendix D,</u>** so that it can provide the solution to the client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2. The
 Ordering Party will be solely responsible for the retention of the information received by
 the Ordering Party directly from the End Users, to the extent that there is no involvement
 of the Supplier and/or its systems in the transfer of such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3. All
 identifying information about the end users will be kept in the possession of the Ordering
 Party, and the Supplier will not be allowed any access to this information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4. It
 is clarified that the transmission of the transmission (the tape recorded by means of the
 device to the clinician) will be done by transferring encoded information to the client's
 servers, with the encoding key being in the hands of the client's authorized parties.
 The transmission will be assigned to the End User according to the serial number of the device,
 in accordance with the Ordering Party's records, and any such cross-checking will be
 carried out by the Ordering Party only. It is also clarified that the transmission will be
 transmitted to the Client's servers and will not be associated with a specific clinician,
 so that the Provider will not have the ability to cross-check the information collected by
 the device with identifying information held by the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5. It
 is clarified that notwithstanding the aforesaid, the Provider will be provided with information
 items regarding the End Users that are not identifying or identifiable information according
 to the serial number of the device ()"**Statistical Information** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6. The
 Supplier will be entitled to keep the statistical information that was transferred to it
 in the framework of this Engagement, and to make any use of it as it deems appropriate (subject
 to the provisions of clause 16.7 below), except for cross-referencing the statistical information
 with the identifying information held by the Ordering Party. The supplier will be solely
 responsible for the establishment and registration of a database to the extent that the establishment
 of such a database is required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7. As
 long as more than [\*\*\*]% of the statistical information used by the Supplier is the information
 of the Ordering Party's customers, the Supplier will not market the information to
 third parties and will not use it other than for the purposes of this Agreement, and any
 such use will require the prior written consent of the Customer. If more than [\*\*\*]% of the
 statistical information used by the Supplier will be the information of customers who are
 not customers of the Ordering Party, the Supplier will be entitled to make any use of the
 information it wishes without any need for the Ordering Party's approval, and the Ordering
 Party will have no claim or demand in this regard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8. Without
 derogating from the provisions of Section 17 below, in the relationship between the parties,
 Content Information (as defined above) is information owned by the Ordering Party, and the
 Supplier may not make any use of the Content Information, except as required in order to
 provide services and products under this Agreement.

17. <u>Transfer of information from the provider's cloud infrastructure to the general cloud</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1. "**Clalit Data**" – any information of Clalit and/or Clalit patients, of any kind whatsoever,
 stored in the Provider's cloud infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2. Clalit
 data stored in the Provider's cloud infrastructure will be accessible at any time for
 30 days from its creation in accordance with this Agreement to Clalit, including for the
 purpose of retrieval, transfer, etc., and the Provider will not prevent such access and/or
 transfer for any reason whatsoever, including in the event of a dispute between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3. The
 vendor will not be required to hold the data in the vendor's cloud infrastructure for
 a period exceeding 30 days. The Supplier will work in cooperation with the Ordering Party
 in order to enable the downloading of the ultrasound videos automatically or in any other
 manner agreed upon between the parties, by the Ordering Party. Failure on the part of the
 Ordering Party in this matter (including the appointment of programmers for concrete tasks)
 will result in significant delays that are not the responsibility of the Supplier.

18. Intellectual
 Property

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1. Except
 with respect to the ownership of the hardware components in the devices purchased and for
 which the Supplier has received full consideration under this Agreement, and the use of which
 is made in accordance with the User's License, and to the extent that it has not been
 otherwise agreed between the parties in ordering services and products, all rights in the
 Solution, in any part thereof, in any work derived from the Solution, and/or in any insightful
 knowledge deriving from it and/or in any services provided to the Ordering Party under this
 Agreement, including all intellectual property rights and developments of the aforesaid,
 are now and will be the exclusive property of the Supplier, and this Agreement does not grant
 the Ordering Party any right in the aforesaid other than the right to use the Solution, market
 the Solution and sell it in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2. It
 is hereby clarified and agreed that the Ordering Party will be entitled to make any use it
 deems appropriate of all the data of its policyholders collected through the Solution in
 accordance with its legal rights, including commercial and/or research use and/or otherwise,
 without any additional consideration to the Supplier.

19. Liability
 and Indemnification

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1. <u>Responsibility</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.1. Without
 derogating from its liability under any law (including towards the End Users), the Supplier
 is liable to the Ordering Party (a) for any breach of this Agreement and/or the law by it
 and/or anyone on its behalf; (b) For any damage and/or malfunction and/or loss and/or malfunction
 caused to the Ordering Party due to a negligent act or omission of the Supplier and/or its
 employees and/or anyone acting on its behalf, the incompatibility of the Solution and/or
 the Services and/or any part thereof with the technical specifications, or due to a breach
 of the Agreement by the Supplier.

19.1.2. Without
 derogating from the provisions of clause 19.1.1 above, it is clarified and agreed that the
 Supplier does not provide any medical services to any person, that the solution and the Supplier's
 services provided under this Agreement constitute only a tool for the provision of medical
 services by the Client to its policyholders. It is hereby clarified that the discretion regarding
 the suitability of the use of the solution to the condition and/or medical need of the insured
 (such as the urgency of providing medical treatment, the consequences of providing a clinical
 diagnosis and/or incorrect medical treatments) is not the responsibility of the supplier
 and that the solution is not intended to provide emergency medical treatments or life support
 treatments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.3. Notwithstanding
 all the provisions of this Agreement, the Supplier shall not bear any liability for damages, costs, and expenses arising from: (i)
 the Client's marks included in the customized interface, (ii) any medical treatment, recommendation, diagnosis, and prognosis
 given or avoided through or because of the Solution, provided that the Solution complies with the technical specifications; (iii)
 from any content or anamnesis uploaded to the Solution by the End User or the Ordering Party, provided that the Solution complies
 with the technical specifications; and (iv) from the Ordering Party's breach of the terms of this Agreement or from the End
 Users' breach of the terms of the User License applicable to them; The provisions of this section, to the extent that such
 damages, costs, and expenses do not derive from the Supplier's act or omission in contravention of the terms of this Agreement *.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.4. The
 Ordering Party shall bear sole responsibility for any damage and/or injury and/or loss to the body, which may be caused or caused
 to the End User, as a result of medical diagnosis and/or prognosis that will be given or prevented through the Solution provided
 to the Insured through and/or in connection with the Solution, and the Ordering Party exempts the Supplier from any such liability,
 provided that such damage is not related to and/or derives from the non-conformity of the Device and/or the Solution to the technical
 specifications.

<u>Indemnification and Liability</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.5. The
 Supplier undertakes to defend its account, and to indemnify the Ordering Party against any claim or claim and for any liability,
 liability, payment or expense (including administrative expenses, legal expenses and attorney's fees) incurred by the Ordering
 Party and which were ruled against the Ordering Party in a competent court in a judgment case, due to a third-party claim arising
 from the Supplier's breach of its declarations or my obligations and under this Agreement and/or in respect of any of the grounds
 set forth in 19.1.1, provided that the Ordering Party notified the Supplier of a demand and/or claim, etc., shortly after receiving
 them, in order to enable the Supplier to protect its rights and to enable it to manage the claim at its discretion and in cooperation
 with the Ordering Party, and at the request of the Supplier, it will also assist it in its defense and coordinate the defense with
 it (provided that it does not You will be required to bear any payment or expense for this purpose).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.6. The
 Ordering Party will be liable to the Supplier for any claim or claim and for any liability, liability, payment or expense, which
 were awarded against the Supplier in a competent court, due to the End Users' claim against the Supplier for damages caused
 to them as a result of medical diagnosis and/or prognosis that will be given or prevented by means of the Solution by the Ordering
 Party and not as a result of a malfunction/defect in the device that is the responsibility of the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.7. Notwithstanding
 the aforesaid, it is clarified that neither party shall be entitled to enter into a settlement with any third party regarding a claim
 or claim against the other party without the written consent of the other party, if the settlement includes an admission of guilt
 on the part of the other party or if it does not remove from the other party all liability for such a claim.

<u>Limitation of Liability</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.8. Notwithstanding
 the foregoing, the Supplier shall no tbe liable, and the Ordering Party exempts the Supplier from liability for damage resulting
 from: (i) the use of the Solution or any part thereof by the Ordering Party in conjunction with or in combination with any other
 software or hardware (other than as expressly permitted in this Agreement or for which written consent has been given by the Supplier);
 (ii) the characteristics or usability of the Customer's systems, provided that the Supplier has acted in accordance with the
 terms of this Agreement in installing the relevant Solution components; (iii) from the design by the Ordering Party of any adaptation,
 services provided under this Agreement or a change in the Solution, the interface to the Ordering System or the deployment and installation
 of the Solution components, which were made at the request of the Ordering Party; or (iv) any adjustment, modification or amendment
 made to the Solution, the interface to the Ordering System or the deployment and installation of the Solution components, not by
 the Supplier or anyone on its behalf or with the consent of the Supplier which is detailed in writing. Notwithstanding the aforesaid,
 the Ordering Party shall not be liable to the Supplier for damage resulting from the use made by a third party of the Solution not
 in accordance with this Agreement, provided that an action not in accordance with this Agreement does not result from an act or omission
 of the Ordering Party in violation of the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.9. Except
 in connection with breach of the duty of confidentiality, invasion of privacy, and personal injury under this Agreement, in no event
 shall either party be liable for loss of revenue, loss of profits, business interruption, or any indirect, special, punitive, or
 consequential damages (including claims brought by customers' customers) incurred as a result of that party's fulfillment
 or non-fulfillment of that party's obligations under this Agreement, or the provision of the products or services under this
 Agreement. The performance or use thereof, whether for breach of contract, breach of warranty, strict liability, negligence or any
 other reason whatsoever, provided that neither party shall be liable in the event that the damages were caused by the act or omission
 of the other party in breach of its obligations under this Agreement or in violation of any law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1.10. Except
 in connection with a breach of the duty of confidentiality, breach of the duty of privacy under this Agreement, personal injury,
 damage done willfully, infringement of intellectual property rights, by any of the parties, the Supplier's obligation to
 indemnify for damages under this Agreement, and the Ordering Party's breach of its obligations under Section 11.9 and its
 sub-clauses of this Agreement (the "**Excluded Liabilities** "), in no event shall any of the parties be liable in the
 sum of US$ [\*\*\*] and in connection with the excluded liabilities neither party shall be liable to the sum of US$[\*\*\*]. A total of
 US$[\*\*\*].

20. <u>Insurances</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1. Without
 derogating from its liability under this Agreement, the Supplier undertakes to prepare and maintain insurances in connection with
 the provision of the Solution and the provision of services in accordance with this Agreement, as detailed in  **<u>Appendix G</u>** .
 The Supplier shall provide a certificate of the existence of such insurances at the request of the Ordering Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2. Without
 derogating from the Ordering Party's liability under this Agreement, the Ordering Party undertakes to arrange and maintain,
 during the entire period of the engagement under this Agreement, professional medical liability insurance that covers its liability
 and those acting on its behalf pursuant to this Agreement. This insurance will be extended to indemnify the Supplier for its liability
 for the acts and/or omissions of the Ordering Party and/or those acting on its behalf.

21.  **<u>Assignment and Transfer of Rights</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1. Neither
 party may transfer, assignor assign its rights or obligations under this Agreement to any third party unless the express written
 consent of either party has been given. Notwithstanding the provisions of this section, the Supplier shall be entitled to assign
 its rights and obligations under this Agreement to the purchaser of the majority of the Supplier's share capital, and notice
 of this shall be given in writing to the Ordering Party with (but not before) the said assignment, and in any case prior to the provision
 of a public notice by the Supplier, provided that this shall not prejudice any rights of the Ordering Party under the Agreement and
 in fulfilling all of the supplier's obligations under the agreement, including the level of service promised to it in the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.2. Without
 derogating from the aforesaid, and in addition to that, insofar as it is an assignment of the right to receive funds, Clalit consent
 means a written consent, signed by the authorized party of Clalit in Clalit's main management, as instructed by the ordering
 party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.3. If
 Clalit has given its express consent in accordance with the provisions of this section to the Supplier to engage with a Sub-Supplier
 for the purpose of performing the services that are the subject of this Agreement – the said agreement does not exempt the
 Supplier from fulfilling all of its obligations under this Agreement, and the Supplier will bear full responsibility for any act
 or omission of any Sub-Supplier, its employees and anyone acting on its behalf.

22.  **<u>Jurisdiction</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1. The
 competent court whose seat is in the city of Tel Aviv-Jaffa will have the unique and exclusive local jurisdiction to hear any matter
 relating to the agreement or deriving from it. No other court shall have jurisdiction in this matter, and the parties waive their
 right in advance to any other court whose seat is not in the city of Tel Aviv-Jaffa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2. The
 law applicable to this Agreement is Israeli law only, without the conflict of law rules therein, and the jurisdiction of international
 jurisdiction in any case relating to or deriving from this Agreement shall be given exclusively to the courts in Israel (in the city
 of Tel Aviv-Jaffa).

23.  **<u>Cancellation of the Agreement and Agreed Compensation</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1. In
 each of the cases set forth below, either party will be entitled to cancel the agreement immediately, by giving written notice to
 the other party. In the event that Clalit is entitled to cancel the agreement, it will be able to perform the supplier's obligations
 under this agreement, either by itself or in any other way it deems appropriate, including by an alternative supplier, and the supplier
 waives any claim. A claim and a financial or other demand against Clalit or anyone on its behalf as a result of this:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.1. Any
 of the parties has been declared bankrupt or has been issued a receivership order or the receipt of assets or a liquidation order
 or a stay of proceedings order or a special manager or trustee or liquidator (temporary or permanent) has been appointed, whether
 temporarily or permanently, or an application for such an order or appointment has been filed against him, or a foreclosure has been
 imposed on a substantial part of his assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.2. A
 party has fundamentally breached the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1.3. Either
 of the parties has modified the agreement in whole or in part in a manner that is not in accordance with the provisions of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2. In
 any case of a non-fundamental breach, the breaching party will correct the breach within [\*\*\*] days from the date required to do so
 by the other party or anyone on its behalf (unless a different recovery period is specified in this agreement). If the breaching
 party does not correct the breach, the other party will be entitled to cancel this agreement without further notice, without derogating
 from any other remedy granted to it under the agreement and in accordance with any law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.3. In
 the event that the supplier does not meet the conditions specified in the table **in Appendix D** [\*\*\*] times or more during
 [\*\*\*] **,** not due to an impediment stemming from Clalit, and does not correct the said breach despite warnings from Clalit, the
 agreed compensation as aforesaid will be in the sum of NIS [\*\*\*] and in any case will not exceed the sum of NIS [\*\*\*] during the
 entire period of the agreement.

24. <u>Failure to Prevent Use of the Solution and Access to Information</u> 

In any event of termination of the Agreement for any reason whatsoever and/or in any case of dispute and/or dispute and/or disagreement between the parties and/or in any case or circumstance, the Supplier shall not prevent the Ordering Party and/or anyone on its behalf and/or the End Users from accessing the use of the Solution and/or access to Clalit's data and information, including those stored in the Provider's cloud infrastructure, all subject to the provisions of Section 17 above.

25.  **<u>Termination of the Agreement and its Impact</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1. In
 any case of termination of the agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.1. All
 license rights granted by Vendor in this Agreement will expire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.1.2. The
 Supplier will disconnect the Ordering Party from the Platform and disconnect from the Customized Interface only after prior written
 notice from the Ordering Party of the exact date of termination of the engagement in accordance with the Agreement, and in no case
 will the Supplier disconnect the Ordering Party and/or prevent the use of the Solution by the Ordering Party and/or the End Users
 without prior written notice of at least 9 months and in accordance with the rest of the provisions and this Agreement. All consideration
 payments required under this Agreement, including for orders for products and services provided by the Supplier to the Ordering Party,
 for which consideration has not yet been paid by the date of the end of the actual engagement period, shall be paid in accordance
 with the provisions of the Agreement.

26.  **<u>Lack of Employee-Employer Relationship</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.1. This
 agreement is for the purchase of services and products, and does not constitute an engagement for the supply of manpower and/or an
 agreement with a manpower contractor, and the supplier declares that it is not a manpower contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.2. The
 Supplier declares and undertakes that nothing in this Agreement or any of its terms creates an employee-employer relationship and/or
 an agent relationship between the Supplier or anyone on its behalf and the Ordering Party, with all that it entails and derives from
 thereof, and that all employees employed by the Supplier or anyone on its behalf for the purpose of performing the Supplier's
 obligations under this Agreement (including sub-suppliers) will not be considered employees of the Ordering Party in any case. Without
 derogating from the aforesaid, the supplier and any of those employed by him or on his behalf (including through a manpower company
 and/or through sub-suppliers) do not and will not have any rights of an employee of Clalit in any form or manner whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.3. The
 supplier undertakes to comply with the provisions of any law and agreement in connection with the employment of its employees and
 all those employed by it or on its behalf, including any collective agreement or expansion order, and it will bear on its own (and
 at its expense) all payments resulting from their employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.4. The
 Supplier undertakes to deal immediately and at its own expense and to settle any demand and/or claim arising according to what is
 alleged in the demand and/or claim, directly and/or indirectly, on the part of an employee and/or on the part of an authority and/or
 entity in respect of and/or in connection with the employees and/or their salary and/or their rights and/or conditions. It is hereby
 agreed that if, notwithstanding the intention and consent of the parties, it will be determined by a competent authority, Including,
 by a judicial body, that there is an employee-employer relationship between the supplier, its employees or any of its employees and
 Clalit, or that any of them is entitled to any rights deriving from the employment relationship, the supplier undertakes to indemnify
 Clalit, immediately upon its first written demand, any amount that Clalit will bear or be charged in connection with such claim.
 Such indemnification will be subject to the following conditions: Clalit has notified the Supplier of the acceptance of the claim
 and/or a demand in connection with the aforesaid, and has allowed the Supplier to the extent possible to manage the defense, provided
 that the conduct of such proceeding will not harm and/or detract from Clalit's rights. Clalit indemnification will be made
 by the Supplier within 7 days of a judgment on the matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.5. It
 is hereby clarified that the Supplier's declarations and undertakings in this chapter are a fundamental condition for a general
 engagement with the Supplier, and the consideration that the Supplier will receive under this Agreement has been calculated in accordance
 with its declarations above. A breach of any undertaking by the Supplier listed in this chapter will constitute a fundamental breach
 of the Agreement.

27.  **<u>Biophysical Profile Product – BPP</u>** 

In addition to the ultrasound product as defined in **this term above, and in addition to the follicle product as defined in the Follicles Agreement,** the company develops **ahome ultrasound device** for performing biophysical profile tests **(BPP)** designed for high-risk pregnant women (hereinafter: **the "BPP Device**"**).** Clalit will examine th eintroduction of the BPP device into the service of its customers in a number of indications as part of the treatment of women with high-risk pregnancies, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Pregnant
 women at risk, according to the doctor's instructions for monitoring an ultrasound monitor once a week.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Pregnant
 women are at risk in the framework of home hospitalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. As
 part of the clinic as an alternative to a face-to-face visit.

All of the above in relation to the BPP device is subject to the completion of research/validation with the approval of all the relevant parties in Clalit and the conclusion of the commercial terms with the company.

28. <u>Miscellaneous</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.1. **Cooperation.** Each party to this Agreement undertakes to reasonably assist the other party in performing the obligations under this Agreement;
 and if such assistance involves a financial expense, such expense shall be borne by the party requesting assistance subject to its
 prior written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.2. **Failure to enforce does not infringe on rights.** Failure of a party to this Agreement to enforce its rights does not constitute a waiver
 of such rights or the right to sue for remedies for their breach, and it will not prevent the enforcement of the provisions of this
 Agreement at the request of that party at a later date for that breach or any other breach of the Agreement, and it will not hear
 a claim of delay or inhibition against a party seeking to enforce its rights as aforesaid **.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.3. **The completeness of the agreement.** The parties agree that this Agreement and its appendices constitute the full and exclusive expression
 of the agreement between the parties, which supersedes any previous proposals or agreements, whether oral or written, and any other
 communication and engagement between the parties relating to the subject matter of this Agreement and its appendices. Such correspondence
 and previous engagements shall not be admissible as evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.4. **The validity of the agreement despite the invalidation of parts of it.** If a competent court finds that a clause or clauses in this
 Agreement or parts of a clause or clauses are invalid or void or cannot be enforced, this shall not prejudice the remaining parts
 of this Agreement, which shall remain valid and binding for all intents and purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.5. **Sending messages.** Notices in connection with this Agreement shall be sent by registered mail
 or by e-mail or delivered by hand, according to the addresses of the parties specified above
 (or as amended as hereinafter), and each notice shall be deemed to have been received on
 the following dates: one business day after delivery, if delivered by hand; Shortly after
 the date of its dispatch, if it was sent by e-mail; or after the passage of five business
 days from the date on which it was delivered for delivery, if it was sent by registered mail.
 Each party has the right, by notice given in accordance with the provisions of this Section,
 to change its address and the address for sending copies in this Agreement.

**[***Signature page for agreement for the supply of services and products***]**

**As evidence, the parties came to the signatory.**

---

| | | | |
|:---|:---|:---|:---|
| **Clalit Health Services** | **Clalit Health Services** | **Pulsenmore Ltd.** | **Pulsenmore Ltd.** |
| **By:** | <br> **Eli Cohen**<br>| **By:** | **Dr. Elazar Sonnenschein** |
|  | **CEO** |  | **CEO** |
| **Signature:** | ***/s/ Eli Cohen*** | **Signature:** | ***/s/ Dr. Elazar Sonnenschein*** |
| **By:** | <br> **Eli Levi**<br> **CFO** | **By:** | <br> **Lior Lurie**<br> **Director of Business Development** |
| **Signature:** | ***/s/ Eli Levi*** | **Signature:** | ***/s/ Lior Lurie*** |
| **Date:** | <br> **28 October 2024** | **Date:** | <br> **28 October 2024** |

---

**<u>Appendix A</u>**

**<u>Appendix of the consideration</u>**

[\*\*\*]

**<u>Appendix B</u>**

**<u>Solution Specification</u>**

[\*\*\*]

**<u>Appendix C</u>**

**<u>Addendum to the Agreement</u>**

**<u>Follicle Tracking from 14.12.2021 (Pulsenmore FC)</u>**

[\*\*\*]

**<u>Appendix D</u>**

**<u>Supportand troubleshooting services</u>**

[\*\*\*]

**<u>Appendix E</u>**

**<u>Developing an interface tailored to the client</u>**

[\*\*\*]

**<u>Appendix F (1)</u>**

**<u>Data Protection Addendum</u>**

Updated November 2022

**"Supplier" as defined in the Agreement shall be referred to in this Appendix as "the Company"**

1. The
 Company undertakes to comply with the data protection requirements in accordance with the ISO27001 Information Security Standard
 (hereinafter: the "**Standard**") as detailed below, all within the realm of reasonableness, taking into account the
 risks inherent in the field of data protection and the sensitive nature of the information held by Clalit Health Services Group (Clalit
 with all its entities, institutions, subsidiaries and/or granddaughters) (hereinafter: "Clalit"). For the avoidance of
 doubt: "Company" means, for the purpose of this undertaking, including all employees and/or agents and/or those associated
 with it and/or acting on its behalf.

2. To
 the extent that the Company requests to receive access to Clalit's information system for itself and/or for any of its employees,
 it undertakes that any employee employed by it and/or on its behalf by virtue of the engagement with Clalit, and who has access to
 Clalit's information system – of any kind and type – has successfully passed a reliability test at a placement
 company.

3. The
 Company undertakes that at least once a year, it will provide its employees engaged in activities with and/or for Clalit, refresher
 training and updates on the subject of policies, guidelines, and data protection procedures.

4. The
 Company undertakes to notify Clalit immediately upon becoming aware of any loss, theft or any other damage related to Clalit's
 information.

5. The
 Company undertakes that upon termination of the Agreement for any reason whatsoever and the termination of the Company's obligation
 to Clalit pursuant thereto, it will transfer to Clalit all of Clalit's confidential, personal and sensitive information that
 remains in its possession on any media, and it undertakes that it will not remain in its possession and/or control any Clalit information,
 except as required by law.

6. The
 Company declares that it is aware that the agreement and the disclosure of sensitive information by Clalit do not grant the Company
 and/or its managers and/or employees any right with respect to patents, designs, copyrights or other rights.

7. The
 company undertakes that if cloud services are used for its services to Clalit, these services will be secured in accordance with
 accepted standards in the world and the recommendations of the Cyber Protection Authority.

8. The
 Company warrants that the product or software supplied to Clalit or used by Clalit complies with all the requirements of the European
 Union's General Data Protection Regulation (GDPR).

9. Regarding
 an information system and/or equipment, including medical equipment, developed for and/or supplied to Clalit: The Company declares
 that prior to delivering the product to Clalit or in a significant change to an existing product maintained/developed by the Company,
 the Company will perform a penetration testing test at its own expense in accordance with the ISO27001 standard in order to ensure
 that all the data protection requirements in accordance with the standard have been integrated and operate properly. The Company
 is aware that if all the data protection requirements in accordance with the standard are not met, or if a material discrepancy is
 discovered in the robustness test, the company will be required to adapt the product at its expense to the full requirements as aforesaid.
 Any delay caused in the delivery of the finished product to Clalit as a result of the product's failure to comply with the
 aforementioned data protection requirements will be the sole responsibility of the company.

10. The
 Company undertakes that if, as part of the engagement with Clalit, a process of software / application development / system version
 update is carried out, then the development will be carried out in a development process as detailed **in Appendix 11** to the
 Agreement.

11. The
 Company undertakes that in any case in which the Company and/or any of its employees and/or anyone on its behalf breaches this undertaking
 and/or any part thereof, the Company will be obligated to compensate and indemnify Clalit for all damages and/or expenses incurred
 as a result of such breach, without derogating from any right and/or remedy that Clalit will have by law against the Company and/or
 any of its employees and/or anyone on its behalf due to a breach of this undertaking as aforesaid.

**<u>Appendix F (2)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Security incident management</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. In
 the event that the Provider determines that a security event has occurred (illegal or unauthorized access to or use of the Provider's
 systems, equipment or facilities, which causes damage (such as: loss, discovery, alteration, destruction) to Clalit Health Services
 data), the Provider will notify the Clalit Health Services Center without delay, at soc@clalit.org.il email address.

● The vendor is obligated to report the incident regardless of the severity level of the incident and the estimated damage

● The Vendor is obligated to report what actions were taken (if any) as part of the incident identification

● The vendor is obligated to report how the incident was identified

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The
 Incident Notice will include detailed information about the security incident such as a description of the incident, the extent of
 the impact on Clalit Health Services data, and actions taken by the provider or recommended actions that Clalit Health Services should
 take in order to resolve the issue and prevent its recurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. In
 the event of an attack, the provider will not cancel or shut down the Clalit Health Services service, without obtaining the approval
 of Clalit Health Services.

&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Information Security Governance</u> 

The Provider will share its independent audit reports with Clalit Health Services and will also provide Clalit with certification certificates, upon request.

&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Supply chain security</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. The
 security requirements that apply to the supplier will also apply to the supply chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. The
 supplier will conduct a security risk assessment prior to contracting with suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Identification and Access</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. The
 Supplier will enforce the use of complex passwords, including the replacement of default passwords provided by manufacturers, prior
 to the introduction of any service or system into the Provider's environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. The
 vendor must support two-factor authentication (MFA) in accessing the cloud environment.

&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Security Monitoring</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The
 vendor will monitor security with centralized monitoring, correlation, and analysis systems.

&nbsp;&nbsp;&nbsp;&nbsp;6. <u>isolation</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Isolation
 of the data and processing between Clalit Health Services and other customers in the cloud service (multitenancy) is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The
 provider must support a network architecture that allows Clalit Health Services to access the service from public Clalit Health Services
 IP addresses.

&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Data encryption</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. The
 databases will be encrypted at rest and in traffic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Identifiable
 medical information will not be held on the provider's servers in the cloud – except with the approval of a general cloud
 committee headed by the CEO/Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Backups</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. The
 vendor must support a secure backup process as supported by the vendor's cloud provider.

&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Security Patching</u> 

The vendor will ensure that security updates are distributed and installed.

&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Antivirus and Malware Protection –</u> Malware protection will be implemented in the cloud service to help detect and remove viruses,
 spyware, and other malware.

&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Distributed denial-of-service (DDoS) intrusion detection and attacks</u> 

Vendor will use intrusion detection and prevention and DDoS prevention systems to identify and mitigate risks originating both within and outside the Service.

**<u>Appendix G</u>**

**<u>insurance</u>**

[\*\*\*]

**<u>Appendix H</u>**

**<u>Product Documents and License Documents</u>**

[\*\*\*]

**<u>Appendix 9</u>**

**<u>Medical Device Approval</u>**

[\*\*\*]

**<u>Appendix J</u>**

**<u>Appendix of Instructions Regarding the Sending and Receiving of Electronic Messages</u>**

[\*\*\*]

## Exhibit 4.10

**Exhibit 4.10**

**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**

**Agreement for the Provision of Services and Products** 

which was signed on 14 December 2021

---

| | |
|:---|:---|
| **Between** | **Clalit Healthcare [Chief Executive]** |

---

101 Arlozorov St., Tel Aviv

Tel: [\*\*\*] Fax: [\*\*\*]

Through the authorized signatories:

Name: Dr. Ehud Davidson ID [\*\*\*] Position: CEO

Name: Ruth Ralbag ID [\*\*\*] Position: CFO

(hereinafter: "**the Client**")

---

| | |
|:---|:---|
| **And** | &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;**Pulsenmore Ltd.** |

---

515139129

8 Omrim St., Bern Building., Omer 8496500

Tel: [\*\*\*] Fax: [\*\*\*]

Through the authorized signatories:

Name: Yair Rabinovich ID [\*\*\*] Position: Chairman of the Board of Directors

Name: Elazar Sonnenschein ID [\*\*\*] Position: CEO

(hereinafter: "**the Supplier**")

---

| | |
|:---|:---|
| **Wheras** | The Client is one of the largest health organizations in the world and provides medical services To its policyholders ("**Insured**") Through faculty in their role ("**Clinicians**) operating in medical centers and clinics in the community (Insured, clinicians, and information systems staff members who make use of the solution will be defined as follows - "**End users**"); |

---

---

| | |
|:---|:---|
| Whereas, | The Supplier develops a technological solution which is concerned with the ability to miniaturize the US and the ability to make the test accessible to pregnant women while being able to transfer the test tape to the doctor, online via Company Cloud (hereinafter "**Device**") and a software application for smart mobile devices that enables interfacing with devices and the platform and can be downloaded and installed by end users ("**App**"), and a computerized and internet platform that enables communication and management of communication between various endpoints, including between the devices and cellular devices on which the application is installed, and stations connected to this platform (hereinafter: "**Platform**", and together with the devices and the app "**Solution**"), which will allow the customer's physicians to access the customer's computer system to view the test video and the computerized test results from the company's cloud, for the purpose of Remote physical examination in a lamb meeting – medicine between a doctor and a patient for the purpose of diagnosis; (Hereinafter: "**Solution**"); For the avoidance of doubt, it should be clarified that the solution is not intended for finding defects and is not used for "systems review". The solution is used to test the amount of amniotic fluid, fetal movements and heart rate. |

---

Whereas, The solution will be CE approved During 2019 and thereafter, the Company undertakes to act to obtain the approval of the medical device in the State of Israel;

---

| | |
|:---|:---|
| Whereas, | And for the purpose of examining feasibility/effectiveness/user convenience/reliability etc. – the commissioner will conduct a study which, subject to and after receiving all the required approvals, including the approvals of the Institutional Helsinki Committee of the Ministry of Health, as required in light of the nature of the study, will be conducted under the chairmanship of Prof. Wiznitzer and which will last about ten weeks from the date of granting the approval and is scheduled to begin in March 2019 ("**Research**"); |

---

---

| | |
|:---|:---|
| Whereas, | and subject to the success of such research as determined by the authorized parties in the commissioner and subject to the receipt of all the regulatory approvals required as mentioned above, Inviting And the power Interested in entering into an agreement with each other for the provision of the Solution subject to and in accordance with the terms of this Agreement and for any valid order of services and products under the Agreement, In order for the Client to be able to provide its policyholders with advanced health services as specified in this Agreement; |

---

**Therefore, it was declared that it was agreed upon between the parties as follows:**

1. **Introduction and Appendices** 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. The
 preamble to this Agreement and its appendices form an integral part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. List
 of appendices:

**<u>Appendix A</u>** - Solution Specifications ("**Technical Specifications**")

**<u>Appendix B</u>** - Commercial Terms

**<u>Appendix C</u>** - Support and Maintenance Principles ("**Maintenance Appendix**")

**<u>Appendix D</u>** - Developed interface tailored to the client

**<u>Appendix E</u>** - Confidentiality and security of information

**<u>Appendix F</u>** - Insurance

**<u>Appendix G</u>** - Product Documents

2. **Interpretation** 

&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 section headings are provided for the convenience of the reader only, and should not be used
 in the interpretation of the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. In
 the event of a conflict between a provision of this Agreement and a provision of the Annexes
 to the Agreement, the provisions of the Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. Any
 modification, amendment and/or addition to this Agreement shall not be effective unless made
 in writing and signed by all parties to this Agreement.

3. **Agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>The Commercial Phase:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1. The
 Client hereby orders 20,000 devices as detailed in Section 4.2 below. For the avoidance of
 doubt, this obligation will not apply until the Company has provided the Client with all
 the regulatory approvals required for the purpose of marketing such device, including, but
 not limited to, the approval of the Medical Device

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2. Supplier
 undertakes to provide the Client with the Devices in accordance with the provisions of this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3. The
 price to be paid by the Client to the Supplier, including quantity discounts in accordance
 with the scale of quantities and payment dates, is set out in Appendix Commercial Terms, **Appendix B** to this Agreement.

4. **Ordering services and products** 

&nbsp;&nbsp;&nbsp;&nbsp;4.1. The
 Client will be entitled, during the term of this Agreement and subject to and in accordance
 with the provisions of this Agreement, to order from the Supplier devices and services required
 in connection with the Solution or part thereof, including for the operation, use, training
 and maintenance of the Solution or part thereof (hereinafter the "**Services** ").
 The order of the Services and Devices under this Agreement will be made by means of such
 written order delivery to the Supplier detailing the services and products required by the
 Client and the applicable payment in accordance with the terms of this Agreement and as set
 forth in  **<u>Appendix B</u>** , (hereinafter and above: "**Order Services and Products** ").
 Such an order will be valid upon receipt from the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;4.2. The
 Client undertakes to deliver to the Supplier a specific and binding order of 20,000 devices
 (20,000 devices) (hereinafter: the "**First Order** "). The first order will
 be delivered in accordance with the terms of delivery in Appendix B.

&nbsp;&nbsp;&nbsp;&nbsp;4.3. Payment
 for the first reservation will be made by the Client on current terms + [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;4.4. The
 Supplier will provide the Products and Services in the manner and time as specified in a
 valid order and in accordance with the terms of this Agreement. The Supplier declares and
 undertakes that it has no impediment to the supply of quantities as detailed in the Quantity
 Scale in Appendix B in accordance with the delivery dates specified in Appendix B.

The Supplier will notify the Client in writing of the receipt of the Order within two business days of its receipt. Maintenance services will be provided in accordance with the instructions of the Maintenance Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;4.5. <u>Product Returns</u>. The Client will be entitled to return devices supplied to it as part of the
 first order (including as part of the first or second phase), at the sole discretion of the
 Client. In the event of such a return of inventory, the Supplier will be obligated to refund
 to the Client the consideration paid by the Client for these devices, if it has already been
 paid. If the consideration has not yet been paid, the Supplier will not be entitled to receive
 the consideration for the quantity of the devices returned by the customer.

&nbsp;&nbsp;&nbsp;&nbsp;4.6. Without
 derogating from the aforesaid, it is clarified that the Client shall have the right to return
 to the Supplier devices that will be supplied beyond the first order as aforesaid, in the
 event of non-conformity of the devices to the specifications of the device or any other non-conformity
 or malfunction, provided that it has reported this to the Supplier within [\*\*\*] business
 days from the date of discovery of the defect and/or defect and/or malfunction and/or non-conformity.
 It is clarified that in the event of a defect and/or defect and/or non-conformity that can
 be discovered from its external packaging of the device and/or the delivery note –
 the Client will return the damaged and/or damaged devices as aforesaid to the Supplier within
 [\*\*\*] business days from the date of receipt of the relevant shipment.

&nbsp;&nbsp;&nbsp;&nbsp;4.7. Devices
 returned in accordance with the provisions of Clauses 4.5 and 4.6 above shall be returned
 by the Client to the Supplier's place of business, when they are closed in their original
 packaging, (except in cases where the defect was discovered by the Customer due to the opening
 of the original packaging) in which they were supplied to the Client, and in return the Supplier
 shall entitle the Client to the full payment paid to the Supplier for each Device that was
 returned, subject to compliance with the conditions specified in Section 7.5.2 below. Such
 credit shall be transferred to the Client under current payment terms of + 60 From the date
 of actual return of each device.

&nbsp;&nbsp;&nbsp;&nbsp;4.8. In
 addition to the aforesaid, in the event that an insured of the Client who purchased a device
 from it lawfully exercised any right granted to him under the Consumer Protection Law, 5741-1981
 and its regulations (including the Consumer Protection Regulations (Cancellation of a Transaction)
 5771-2010) (hereinafter (collectively: the "**Consumer Protection Law and Regulations** ")
 with respect to the device it purchased, the Client will be entitled to exercise the same
 right against the Supplier under the same conditions and to the extent to which the said
 insured exercised the right against it. It is clarified that in the event that an insured
 returns any device to the Client, the Client will be entitled to exercise the rights of the
 End User as if it were the End User, and they will count the dates specified by law from
 the date on which the returned device was delivered to the Client, provided that the device
 was returned to the Client within the period prescribed in the Consumer Protection Regulations
 (Cancellation of Transaction) 5771-2010, the Client will be entitled to return the said device
 to the Supplier Subject to presentation to the Supplier of a written and appropriate reference
 of the purchase of the device and its date. The collection and replacement of the devices
 will be done in accordance with the provisions of  **<u>Appendix C</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;4.9. Clarified
 and agreed upon, Because a device Returned under sections ‎4.7 and/or ‎4.8, direction
 that is not Matches the order and/or defective and/or Improper shall not be considered as
 a device ordered and supplied under this Agreement for the purposes of calculating the quantity
 of devices Purchased under an agreement this It is clarified that the proper products that
 will be supplied in place of those that are returned will be included in the aforesaid calculation.

&nbsp;&nbsp;&nbsp;&nbsp;4.10. The
 provisions of this Agreement shall prevail over any conflicting provisions in any order of
 services and products, unless expressly stated otherwise in such order.

&nbsp;&nbsp;&nbsp;&nbsp;4.11. Subject
 to the Client's compliance with the terms of this Agreement and the execution of an
 appropriate order for services and products, the Provider will allow the use of any Device
 Unit purchased under this Agreement, including access to the Platform, and the possibility
 of interfacing with an application that can be downloaded by any End User in accordance with
 the terms of this Agreement, including the terms of the User License (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;4.12. It
 is hereby clarified that in the event of any dispute or conflict between the Provider and
 the Client (except in the event that the Client has not paid the Provider the consideration
 for the Devices provided in accordance with the payment terms of this Agreement), and as
 long as it is not determined by the competent court that the Client has breached the terms
 of this Agreement, the Provider will be obligated to continue to act in accordance with the
 terms of this Agreement with respect to the use of the End User Solution that existed at
 the time the Dispute arose ()"**the Date of the Dispute**") means the date
 on which one of the parties notifies the other in writing of such a dispute and/or any notice
 of its breach) and at any time all of the following conditions are fulfilled and continue
 to exist:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.1. The
 Client has not breached or breached the restrictions imposed on the terms of the License
 to use the Solution under Section 5.2 below. The Client cooperates in good faith with the
 Provider for an amicable resolution of the Dispute within a short period of time, including
 by holding meetings between senior officers of the parties for such resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.2. In
 any event, it is clarified that the Provider will not stop operating (and the Service will
 not be terminated by the Provider in accordance with this section), except subject to the
 provision of reasonable notice to the Customer, in a manner that will enable it to send an
 appropriate notification to the End Users and not less than 30 working days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12.3. The
 Client does not withhold payments due under this Agreement to the Supplier and all payments
 are paid in full and on time (without the actual payment constituting a waiver of any claim
 on the part of the Client or any admission by the Client of any claim).

5. **Using the solution** 

&nbsp;&nbsp;&nbsp;&nbsp;5.1. The
 Supplier hereby grants to the Client a limited, non-transferable, non-assignable license
 to the Solution and/or any part thereof as follows:

During the period of the Agreement, and subject to the execution of an order for services and products in accordance with the terms of this Agreement and the provisions of Appendix B and the payment of the consideration to the Supplier in accordance with the Agreement, the Client will be entitled to market the devices purchased from the Supplier to its policyholders (including through third parties), and to allow its policyholders direct or indirect access to the Platform through the devices, application or adapted interface (as defined below) in accordance with the terms of this Agreement, including the terms of the User License (as defined below).It is further clarified that the health services provided by the Client to its policyholders through the use of the device and/or the Platform will be provided at the sole responsibility of the Client and the Provider will not have any responsibility in relation to these services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. It
 is agreed that if the Client enters with third parties for the purpose of marketing the solution
 and/or devices purchased by the Supplier to its policyholders, then the Client undertakes
 (a) to notify the Supplier of the identity of these third parties nearby, and to the extent
 possible in advance, the commencement of the engagement with them as aforesaid; (b) will
 ensure that those third parties enter into an agreement with it in which they will be bound
 for the obligations required to protect the rights of the Supplier in a manner that is not
 less than those specified in this Agreement and (c) will be liable to the Supplier for any
 act or omission contrary to the provisions of this Agreement by those third parties in connection
 with the Solution and/or the Products, as if it were its act or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2. Without
 establishing any obligation to the Client in connection with obtaining the End User's
 consent to the End User License and the use of the Solution, it is agreed and clarified that
 any use of the Device or Platform by an End User who is not a clinician, entails the consent
 of such End User to the End User License to be determined by agreement between the parties
 prior to the date of placing the first order who will enable the use of the Solution by the
 Client and its policyholders in accordance with this Agreement, will not impose any liability
 or liability on the Client or the Supplier that is not expressly expressed in this Agreement
 and will be consistent with the provisions of the Agreement and the law (including with respect
 to the Maintenance Services under this Agreement) (hereinafter: the "**User License** ").
 It is clarified that the User License will include reasonable and market-accepted terms of
 use. The User License will be attached as an addendum to this Agreement after signing the
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3. The
 Client undertakes that any use of the Device or the Platform by end users who are clinicians
 will be made in accordance with the terms of this Agreement, including the terms of the User
 License which will be attached as an addendum to this Agreement after signing. Breach of
 the User License will be considered a breach by the Client of the terms of this Agreement **.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.4. Without
 establishing any liability or liability to the Client, it is agreed that all documents to
 be attached to the Devices by the Supplier (the "**Product Documents**") are
 the Product Documents generally distributed by the Supplier when selling Devices to its customers.
 The Supplier will notify the Client in writing of changes in the Product Documents and/or
 the User's License (as opposed to the Product Documents and/or the User's License
 as it is on the date of signing the Agreement) that may adversely affect the Client and/or
 the service provided to the End Users. It is clarified that such changes will not apply retroactively,
 but will apply to products that have not yet been supplied to the Client, including products
 that have been ordered and have not yet been delivered to the Client by the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.5. The
 product documents and the user license will be in accordance with the provisions of this
 agreement, including in connection with information security, maintenance and instructions
 regarding the use of information collected from the end user. The Supplier undertakes to
 write in the Product Documents and/or the End User License (a) that the use of the Solution
 will be possible only subject to compliance with the terms of the End User License; (b) An
 explanation of the Service and the transfer of information about the User thereof. The Client
 shall be entitled, in coordination with the Supplier, to add, by means of an external sticker
 or additional wrapping, notices and/or terms that are consistent with this Agreement, and
 addressed to the End Users, which will apply between the Client and the End Users only.

&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Restrictions and Restrictions.</u> The aforementioned license is conditional on the fulfillment of the
 following restrictions and restrictions. The Client agrees and undertakes to refrain from
 acting in a reasonable manner in order to prevent any party acting on its behalf, including
 clinicians and information systems staff:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1. any
 use of the Solution or any part thereof, which is not expressly permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2. any
 copying, imitation, reverse engineering, modification, disassembly, creation of derivative
 works of or any part thereof , and investigation and/or discovery of the technology and knowledge
 underlying the Solution or any part thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3. any
 use of the Solution or any part thereof for unlawful purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4. Any
 use of the Solution or any part thereof in combination with or in combination with other
 components, whether software or hardware, unless the Supplier has given written authorization
 for such use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5. any
 direct or indirect sale or distribution of the Solution or any part thereof outside the State
 of Israel and/or to non-end users, without derogating from the provisions of this Agreement
 in clause 7.4.7;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.6. The
 inclusion or integration in the Adapted Interface (as defined below) of (a) any malicious
 or anticipated adverse effect on End Users or the Solution or any part thereof, including
 viruses, harmful or deceptive routines, any software code that allows remote control or influence
 on the User or the Solution that is not planned or anticipated under this Agreement, and
 (b) any software whose integration into the Adapted Interface may impair the Supplier's
 ability to commercialize the Solution or any part of it. All unless expressly permitted under
 this Agreement.

6. **Collaboration & Marketing & Distribution** 

&nbsp;&nbsp;&nbsp;&nbsp;6.1. During
 the term of the agreement, the Client will be entitled to market and sell the devices purchased
 from the Supplier and the rights to use the Solution, within the framework of the health
 services that the Client provides to its policyholders through marketing channels available
 to the Client, including in the Client's pharmacies, and Clalit Online (Home Delivery
 or BOXIT).

&nbsp;&nbsp;&nbsp;&nbsp;6.2. The
 Supplier will provide the customer with an application that allows a link to the customer's
 service platform.

&nbsp;&nbsp;&nbsp;&nbsp;6.3. The
 parties will discuss the possibility of co-branding the solution provided to the Client,
 which will include, inter alia, indicating the name and logo of the Client on the devices.
 Unless a joint branding as stated above has been agreed in writing, the Client will be entitled
 to sell and distribute the Solution purchased from the Supplier under the terms of this Agreement,
 provided that no change is made in the branding, visibility, and design of the Solution,
 except for the addition of the Customer's logo and logos as per the to be agreed upon
 between the parties, on the product packaging. The Client confirms that any logo, logo or
 name displayed on the packaging of the Product at the request of the Client is its full and
 exclusive ownership and does not and will not and will not infringe any third party rights,
 including intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;6.4. Neither
 party shall publish or permit the publication of any notice or statement with respect to
 the results of the engagement under this Agreement, including with respect to the results
 and evaluation of the services and solution provided by the Provider under this Agreement,
 unless the prior written approval of the other party is given, except for notices by the
 Client to its policyholders or the Regulator to the extent required by law , provided that
 for such notices by law, the notices shall be limited to the minimum information required
 to comply with the aforesaid legal requirements.

7. **Support & Maintenance Warranty** 

&nbsp;&nbsp;&nbsp;&nbsp;7.1. During
 the term of the Agreement, the Supplier will provide the Customer with full support and maintenance
 services for the Solution, (hereinafter: "**Support and Maintenance Services** ")
 in accordance with the provisions of  **<u>Appendix C</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;7.2. The
 foregoing does not derogate from the Supplier's obligations under the law (including
 the Consumer Protection Law and Regulations and the Defective Products Liability Law, 5740-1980
 (the "**Defective Products Law** ", according to which it is clarified that
 the Supplier will be considered the manufacturer of the solution), and in accordance with
 the other provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;7.3. The
 Client undertakes to keep and store the devices it purchased from the Supplier that have
 not yet been supplied to End Users, in proper storage conditions suitable for the storage
 of electronic medical devices, for a period not exceeding [\*\*\*] months. If the devices supplied
 to the Client in the framework of the first order within the aforesaid period have not been
 sold, the Client shall be entitled to return the Devices to the Supplier in accordance with
 the provisions of Clauses 4.5 above. It is clarified that the Client will sell the devices
 to the end users using the first-in-first out method, so that a product supplied to it first
 will be sold first to the end user, and so on.

&nbsp;&nbsp;&nbsp;&nbsp;7.4. The
 Client undertakes: (a) to provide the policyholders with thorough instruction regarding how
 to operate and use the device by a certified instructor / doctor, subject to receipt of guidance
 from the Company. (b) To provide an end user who is a medical team member with the Provider
 or by a medical staff member who has been authorized to do so by the Provider. (c) that only
 those who undergo dedicated training with the Supplier will provide a response at the technical
 center on behalf of the customer.

&nbsp;&nbsp;&nbsp;&nbsp;7.5. <u>Warranty</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.1. The
 Supplier undertakes that at the time of delivery of any device to the Customer, the device
 will be compatible with the characteristics of the Product. The Supplier undertakes to replace
 any device in which a discrepancy is discovered between the Device and the characteristics
 of the Product (hereinafter: "**Fault")** subject to the following conditions:
 (a) the fault was discovered during the warranty period as defined below; (b) The device
 in which the fault was discovered was returned to the Supplier; (c) The malfunction was not
 caused by any of the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.1.1. Any
 act or action of the Client or the End User in violation of the product documents, the user
 license and/or the manufacturer's instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2. In
 the event of a malfunction/defect discovered by the end user:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2.1. If
 the malfunction/defect was discovered before activating the device (activation is done in
 the Clalit app):

&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;7.5.2.1.1. In
 the event that it is an external or mechanical defect, a fracture or corrosion, or if the
 device is not working properly – the power supply will replace the device.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2.2. If
 the defect/malfunction was discovered after activation:

&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;7.5.2.2.1. In
 the event that according to an inspection performed by the Supplier on the device, it is
 an external or mechanical defect, a breakage or corrosion - the device will not be replaced
 and the customer will not receive a refund for this device, even in the event that the device
 is returned by the end user to the customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.2.3. In
 the event that according to an inspection performed by the Supplier on the device, the device
 has stopped working or there is a hardware malfunction – the Supplier will replace
 the device.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.3. Without
 derogating from the Supplier's obligations towards the end users, including by law,
 it is agreed that the warranty period for each device will be for 18 months from the date
 of delivery to the customer and in any case no more than 9 months from the date of first
 operation of the device (hereinafter: the "**Warranty Period** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.4. During
 the warranty period, the Supplier will repair malfunctions and provide services at its own
 expense in accordance with the maintenance appendix. For the avoidance of doubt, it is hereby
 clarified that the Supplier will bear all expenses involved in the implementation of this
 section, including expenses in manpower, materials, and components.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.5. Maintenance
 instructions consistent with this Agreement and the law (including those describing the Supplier's
 liability and the manner in which the End User's rights are exercised) shall be written
 in the Product Documentation by the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.6. With
 respect to any malfunctioning device (including any of its components) delivered by the Client
 to the Supplier (for which the Supplier's liability applies) in accordance with the
 provisions of this Agreement or law, the Supplier shall be entitled, subject to the law,
 to choose between repairing the Appliance or replacing it with a working Device, all at the
 Supplier's expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5.7. Use
 outside the State of Israel. It is hereby clarified that this Agreement does not deal with
 and does not allow the use of the Solution or any part thereof outside of Israel, including
 by end users. Insofar as the parties are interested in allowing such use outside the State
 of Israel, this will be discussed and agreed upon between the parties in a separate written
 agreement. It is clarified that the temporary use of devices purchased by the Client's
 policyholders outside of Israel of the devices purchased in Israel is not under the control
 of the Client and will not be considered a violation of this section by the Client.

8. **Parties' Statements** 

&nbsp;&nbsp;&nbsp;&nbsp;8.1. The
 Supplier declares and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1. It
 owns all rights in all respects whatsoever required for the provision of the services, knowledge,
 information (including training materials), and the products under this Agreement (including
 the Solution (with its components), and the product documents, and that their use under this
 Agreement and the technical specifications is free and permitted and there is no impediment
 whatsoever, including with respect to patent rights, trade secrets, any copyright, intellectual
 property rights or any other right of any third party, which prevents or may prevent or delay
 the use of the Solution, in whole or in part, or which may derogate the rights of the Client
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2. (a)
 has the knowledge, experience, means, manpower, equipment and accessories necessary for the
 provision of the Services as required by this Agreement; (b) that it will act in accordance
 with any law, including the Consumer Protection Law and Regulations and the Defective Products
 Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3. Subject
 to the compliance of the Client and the End Users with the terms of this Agreement and the
 license terms relevant to the Solution activity, the Solution (with its components) will
 operate in accordance with the technical specifications. The Supplier and the Client undertake
 to notify each other in any case that non-compliance of the Solution with the technical specifications
 is discovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.4. is
 not precluded, whether contractually or by law, from producing and delivering the Services
 and Solution (including its components) and the User License and Product Documents, under
 this Agreement for the purposes stated therein, and that he must provide and have all the
 necessary permits and approvals necessary for him and which he is responsible for obtaining
 under this Agreement) for the purpose of providing the Solution and the Services as stated
 in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.5. The
 Services, the Solution (including its components), the license to use and the Product Documents,
 and the use of any of them as provided under this Agreement (a) does not infringe any law
 or right (including intellectual property right) of any party; (b) In connection with any
 of them, the Client and/or the End User shall not have any obligation to pay any amount to
 a third party for the purpose of obtaining any license or for any other purpose (other than
 the obligation of the End User and the Client to pay the provider of their communication
 and computing infrastructures).

&nbsp;&nbsp;&nbsp;&nbsp;8.2. The
 Client declares that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1. is
 not precluded, whether contractually or by law, from ordering and receiving the Services
 and Products under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2. she
 Undertakes to comply with the terms and restrictions set forth in this section ‎5 And
 in the section ‎7 above and that She knows and she agrees License granted under this
 Agreement is subject to its compliance with this obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.3. In
 receiving and using the Services and Products, you will act in accordance with the relevant
 law and law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.4. It
 has and will have all the necessary permits and approvals, including from the end users,
 to provide healthcare through the solution and vendor.

9. **Information Security, Confidentiality & Privacy** 

&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Confidentiality.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1. "**Confidential Information**" means any information, data and/or know-how, provided by one party
 (and/or anyone on its behalf) to the other party (including by way of allowing viewing),
 relating to that party and/or its customers and/or in connection with the activities, programs,
 technologies and business of a party to this Agreement, any information owned by such party,
 and any other information, including documents, contracts, financial data and other data,
 Whether or not such information is expressed in a physical product, whether oral, written,
 graphic, printed, visual, machine-readable or otherwise, whether or not it has been marked
 as "confidential information" or in any other way, including processes, techniques,
 methods, perceptions, systems, inventions, plans, formulas, diagrams, data, images, computer
 programs, prototypes, models, research materials, development or experiments (including development
 and experiments in the process), work processes, functions, features, products, samples,
 designs, product plans, economic and business information, personal information, customer
 lists, suppliers and consumers, ideas, production processes, product development ideas, existing
 and developed technologies, marketing information, test and evaluation results, tests, as
 well as professional secrets or documents as well as samples or parts of the above. It is
 hereby clarified that the commercial terms of this Agreement are confidential information
 of the parties and no party shall be entitled to disclose them without the consent of the
 other party, provided that neither party shall be prevented from disclosing them in the framework
 of due diligence in connection with investment, merger or acquisition transactions, under
 an obligation to maintain appropriate confidentiality. Notwithstanding the foregoing, confidential
 information shall not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1.1. public
 information, except if information has become public as a result of a breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1.2. Information
 that you receive by the recipient of the information from a third party, who, in the opinion
 of the recipient, does not owe a duty of confidentiality to the disclosing party regarding
 such information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.1.3. Information
 that is proven by written documents that was known to the recipient of the information prior
 to the date of disclosure or was created thereafter independently and without any reference
 to or use of the other party's confidential information.

It is agreed that (1) identifying information (as defined below); and (2) information unique to the Client (provided that it is not in the public domain and/or known to the public in the fields of information security) received by the Supplier from the Client will be considered confidential information of the Client and that the aforementioned exceptions will not apply to identifying information.

Each side I hereby agree and warrant that the and/or anyone on his behalf shall maintain complete confidentiality, shall not disclose or disclose to any person and/or body any They will take out Strengthen all information secret of the Counterparty and/or part thereof, of any kind and at any stage, except for disclosure to third parties as is necessary in order to fulfill their part of this Agreement, provided that any disclosure of confidential information to such third party shall be under a written non-disclosure agreement whose terms Are More lenient than stated in the section ‎9.1 This. Supplier will work according to Provisions of the Confidentiality and Security of Confidentiality and Information Security attached hereto as **<u>Appendix E</u>**. Each party shall be liable in respect of any breach by such third parties תנאי This clause is as if it had been carried out by him. Each party shall protect the confidential information of the other party by taking security measures identical to the security measures taken by that party in order to protect and maintain its own confidential information, and in any case shall take no less than reasonable security measures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.2. This
 section shall not prevent any party from disclosing confidential information that is required
 by Israeli law to disclose to any person or authority, provided thatif it is required by
 law or by a court decision or a competent authority, as aforesaid, to provide the information
 and/or any part thereof, directly or indirectly, the party required to disclose shall notify
 the other party immediately and in writing before providing any information (to the extent
 that this is possible in accordance with the provisions of the law). the court and/or the
 competent authority), and the other party will be entitled to act at its own expense in order
 to defend myself against and oppose such demand (without derogating from compliance with
 the provisions of the law, the court and/or the competent authority by the party required
 to do so).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.3. Upon
 termination or termination of this Agreement for any reason, each party shall return to the
 other any document and/or other material embodying confidential information of the other
 party, including all copies of such material in its possession, and each party shall also
 delete any such material from any magnetic or optical means in its possession, in such a
 manner that it shall not remain in its possession any document or information relating to
 the other party and its customers, notwithstanding the aforesaid. The Company may retain
 one copy in support of any confidential information related to the execution of this Agreement
 in order to (a) comply with the requirements of the law and/or (b) defend against claims
 and/or proceedings on behalf of the Client, the Supplier, the End Users and/or any regulatory
 or other authority, in connection with this Agreement and/or the activity under it. Subject
 to the aforesaid, with respect to this copy, all confidentiality obligations under this Agreement
 will continue to apply without time limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.4. The
 parties' obligations under this section will remain in effect indefinitely, whether
 or not this Agreement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Privacy</u>.

Unless the Client has received written consent to this from the End User, it is clarified and agreed between the parties that the Client undertakes not to transfer and will not allow the Provider to provide access to information and personal data regarding End Users by which such End Users can be identified ("**Identifying Information**"). The Supplier undertakes not to collect or gain access to such identifying information unless the Supplier has received explicit authorization in accordance with the law from the subject of such information. Subject to the foregoing, content information (as defined below) will be accessible and collected by the Provider, only for the purpose (and to the extent necessary) to provide the Solution and provide the Services under this Agreement to the Client under its instructions.

The Client will bear sole responsibility for the retention of the identifying information received by the Client directly from the End Users, to the extent that there is no involvement of the Provider and/or its systems in the transfer of such information.

10. **Databases** 

&nbsp;&nbsp;&nbsp;&nbsp;10.1. Further
 to the provisions of Section 9.2 above, all identifying information about End Users will
 be kept in the possession of the Client, and the Supplier will not be allowed any access
 to this information.

&nbsp;&nbsp;&nbsp;&nbsp;10.2. It
 is clarified that the transmission (the tape recorded by the device in the hands of the clinician)
 will be done by transferring encoded information to the client's servers, with the
 encoding key being in the hands of the customer's authorized entities. The transmission
 will be attributed to the end user according to the serial number of the device, in accordance
 with the customer's records, and any such cross-checking will be carried out by the
 customer alone. It is also clarified that the transmission will be carried out to the customer's
 servers and will not be associated with a specific clinician, so that the provider will not
 have the ability to cross-check the information collected by the device with identifying
 information available with the customer.

&nbsp;&nbsp;&nbsp;&nbsp;10.3. It
 is clarified that notwithstanding the aforesaid, the Supplier will be provided with information
 regarding the end users that are not identifying or enabling identification information according
 to the serial number of the device, such as the age of the insured, gestational age (week,
 days), pregnancy number, origin ()"**Statistical Information** ").

&nbsp;&nbsp;&nbsp;&nbsp;10.4. The
 Supplier will be entitled to retain the statistical information transferred to it in the
 framework of this Engagement, and to make any use of it as it deems appropriate (subject
 to the provisions of Section 11.2 below), except for cross-referencing the statistical information
 with the identifying information held by the Client. The Supplier will be solely responsible
 for the establishment of a database and its registration to the extent that the establishment
 of such a database is required by law

11. **Intellectual Property** 

&nbsp;&nbsp;&nbsp;&nbsp;11.1. Except
 with respect to the ownership of the hardware components in the devices purchased and for
 which the Supplier has received full consideration under this Agreement, and whose use is
 made in accordance with the User License, and to the extent that the parties have not otherwise
 agreed to order services and products, all rights in the Solution, any part thereof, any
 work derived from the Solution, and/ or any insightful knowledge deriving from it and/ or
 in all services provided to the Client under this Agreement, including all intellectual property
 rights and developments thereof, are now and will be the sole property of the Supplier in
 the future, and this Agreement does not give the Client any right therein other than the
 right to market the Solution and sell it in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;11.2. As
 long as more than [\*\*\*]% of the statistical information used by the Supplier is the information
 of the ordering customers, the Supplier will not market the information to third parties
 and will not use it other than for the purposes of this Agreement and any such use will require
 the prior written consent of the Client. If more than [\*\*\*]% of the statistical information
 used by the Supplier is the information of customers who are not customers of the Client
 – the Supplier will be entitled to make any use of the information it wishes without
 any need for the Client's approval, and the Client will have no claim or demand in
 this regard.

&nbsp;&nbsp;&nbsp;&nbsp;11.3. Without
 derogating from section ‎11.1, as between the parties, any Identifiable Information,
 including information entered through end users or the inviter ()"**Content Information** "),
 is information owned by the Client, and the Supplier is not entitled to do in the information
 These are all uses, Except as required to provide services and products according to this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;11.4. It
 is hereby clarified and agreed that the Client will be entitled to make any use it deems
 appropriate of all the data of its policyholders collected through the Solution in accordance
 with its rights under the law, including commercial and/or research and/or other use, without
 any additional consideration to the Supplier.

12. **The Reward** 

&nbsp;&nbsp;&nbsp;&nbsp;12.1. In
 exchange for the provision of the services and products by the Supplier under this Agreement
 to the Customer, the Client will pay the Supplier the consideration specified in the order
 of valid services and products (the "**Consideration** "), together with VAT
 as required by law under current conditions of [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;12.2. An
 amount that was not paid by the Client on time and [\*\*\*] days have passed from the date of
 payment will bear an interest rate of [\*\*\*]% per month linked to the Consumer Price Index
 published each month starting from the first day of pro-rata. In other words, if there are
 [\*\*\*] days of delay, for example, the number of days in arrears will be calculated according
 to a monthly interest rate of [\*\*\*]%, all linked to the price index published once a month
 (hereinafter: the "**Agreed Compensation** ").

&nbsp;&nbsp;&nbsp;&nbsp;12.3. Unless
 otherwise provided in a valid service and product order or in accordance with the terms of
 this Agreement, Supplier will issue the Customer an appropriate tax invoice subject to the
 entry into force of such order, and not before all of the devices that are the subject of
 the order have been provided to the orderer. All invoices received from the Supplier by the
 Client shall be paid in full on an ongoing condition within [\*\*\*] days of their receipt by
 the Client (subject to the supply of the Devices). In the case of a service order divided into
 delivery batches, the Supplier will issue an invoice to the Client with each delivery batch.

&nbsp;&nbsp;&nbsp;&nbsp;12.4. The
 consideration does not include taxes or any fees and levies payments. Each party will bear
 income tax imposed on it in respect of its income. In addition to the payment of the consideration,
 the Client will pay the Supplier the amount of VAT resulting from the consideration according
 to the law, which is specified in the invoice that the Supplier will submit to the Client,
 and the Supplier will be responsible for transferring this amount to the Tax Authority.

&nbsp;&nbsp;&nbsp;&nbsp;12.5. It
 is agreed between the parties that the consideration constitutes full payment for all services
 and products ordered under a relevant order of services and products, and that the Client
 shall not be required to pay any additional payment in connection with the receipt of services
 and products expressly specified in such order, provided that the provisions of the order
 comply with the terms of this Agreement.

13. **Term of the Agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;13.1. This
 Agreement shall enter into force immediately upon the fulfillment of the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.1. Approval
 by the Supplier's Board of Directors to enter into this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.2. Signing
 of the Agreement by the authorized signatories of the Client and the Supplier

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.3. Successful
 completion of the study, in accordance with the criteria for success set out in the study
 protocol and obtaining the approval of the medical device.

&nbsp;&nbsp;&nbsp;&nbsp;13.2. This
 Agreement shall be effective upon the fulfillment of the terms set forth in Section 13.1
 (the "**Commencement Date** "), and unless terminated earlier in accordance
 with the provisions of this Section 13, shall remain in effect for 24 months (the "**First Agreement Term** "). After the expiration of the first term of the Agreement, the
 Client may renew this Agreement fortwo additional periods of 12 months each (the "**Renewal Period**") by giving written notice to the Supplier not less than 60 days prior to
 the expiration of the First Agreement Period. If the agreement is not renewed as aforesaid,
 the agreement will expire at the end of the relevant agreement period.

&nbsp;&nbsp;&nbsp;&nbsp;13.3. Notwithstanding
 the aforesaid, each of the parties shall be entitled, at its sole discretion while giving
 written notice to the other party, to immediately terminate the Agreement in any of the following
 cases, without prejudice to any right and/or remedy it may have under any law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.1. A
 temporary or permanent foreclosure has been imposed or any execution action has been taken
 with respect to the Counterparty's assets, in whole or in part, and the said foreclosure
 or action has not been stopped and/or completely removed within 45 days of its execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.2. A
 temporary or permanent receiver or temporary or permanent liquidator has been appointed for
 the assets of the opposing party, and the receivership order has not been revoked within
 30 days from the date on which it was issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.3. The
 opposing party has made a decision to liquidate voluntarily, or a request for liquidation
 has been filed against it, or a liquidation order has been issued against it, or has reached
 a compromise or arrangement with its creditors, in whole or in part, or has approached its
 creditors in order to obtain an extension or a compromise or for an arrangement with them
 in accordance with Section 233 of the Companies Ordinance (New Version), 5743-1983.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3.4. In
 any case where the other party has violated any provision of this Agreement, and such breach
 has not been corrected within 30 days from the date on which written notice of the breach
 was given to the breaching party.

&nbsp;&nbsp;&nbsp;&nbsp;13.4. Each
 party shall be entitled to terminate this Agreement without cause or reason, by means of
 nine months' prior written notice to the other party (the "**Advance Notice** ").
 During the inviting notice period, you will not sell devices to end users.

&nbsp;&nbsp;&nbsp;&nbsp;13.5. <u>Termination of the Agreement and its Effect.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5.1. In
 the event of termination of the Agreement: (a) all license rights granted by the Provider
 in this Agreement will expire, (b) the Provider will disconnect the Client from the Platform
 and disconnect from the Adapted Interface, (c) all orders for services and products that
 have not yet been delivered on the Termination Date will be cancelled except in relation
 to the Devices (i) in which the Client has committed to End Users and (d) the Client will
 be entitled to return to the Supplier Devices that remain in the Client authority's
 inventory, which were supplied to it as part of the first order and have not yet been sold
 to end users on the date of termination of the agreement, within 30 days from the date of
 termination of the agreement, and will not be obligated to pay the consideration (and will
 be entitled to receive a refund) for these devices that were returned in good condition and
 in their original packaging as stated to the Supplier's place of business as stated
 in clause 4.7 above. (e) the Supplier shall be released from all its obligations under this
 Agreement except as otherwise expressly provided under this Agreement or except for obligations
 which by their nature continue to apply after the termination of the Agreement, including,
 but not limited to, the Supplier's obligations under the warranty period, (f) all consideration
 payments required under this Agreement, including for orders for products and services submitted
 to the Supplier prior to the termination of the Agreement as set forth in subsection (c)
 above of this Section (subject to their actual supply); that have not yet been paid on the
 date of termination of the agreement will be liable to pay in accordance with the provisions
 of the agreement, (g) and the customer will be prohibited from making any use of the solution.

14. **Liability and Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;14.1. <u>Responsibility</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.1. Without
 derogating from its liability under any law (including towards the End Users), the Supplier
 is liable to the Client (a) for any breach of this Agreement and/or the law by it and/or
 anyone on its behalf; (b) For any damage and/or malfunction and/or loss and/or breakdown
 caused to the Client due to a negligent act or omission of the Supplier and/or its employees
 and/or anyone acting on its behalf, the non-compliance of the Solution and/or the Services
 and/or any part thereof with the technical specifications, or due to the Supplier's
 breach of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.2. Without
 derogating from section 13.1.1, it is clarified and agreed that the Supplier does not provide
 any medical services to any person, that the Solution and the Supplier's services provided
 under this Agreement constitute only a tool for the provision of medical services by the
 Client to its policyholders. It is hereby clarified that the discretion regarding the suitability
 of the use of the solution to the condition and/or medical need of the insured (such as the
 urgency of providing medical treatment, the consequences of providing a clinical diagnosis
 and/or incorrect medical treatments) is not the responsibility of the Supplier and that the
 solution is not intended to provide emergency medical treatments or life support treatments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.3. Notwithstanding
 anything contained in this Agreement, Supplier shall not be liable for any damages, costs,
 and expenses arising from: (i) the Client Marks contained in the Customized Interface, (ii)
 any medical treatment, recommendation, diagnosis, and prognosis given or avoided by or because
 of the Solution, provided that the Solution complies with the technical specifications; (iii)
 from any content or anamnesis uploaded to the Solution by the End User or the Client, provided
 that the Solution complies with the technical specifications; and (iv) from the Client's
 breach of the terms of this Agreement or by the End Users of the terms of the User License
 applicable to them; to the extent such damages, costs, and expenses do not arise from the
 act or omission of the Supplier in violation of the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.4. The
 Client will bear sole responsibility for any damage and/or injury and/or loss to the body,
 which may be caused or caused to the End User as a result of a medical diagnosis and/or prognosis
 that will be given or avoided by means of the solution that will be provided to the Insured
 through and/or in connection with the Solution, and the Client exempts the Supplier from
 any such liability, provided that such damage is not related to and/or derives from the non-conformity
 of the device and/or the solution to the technical specifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.5. <u>Indemnification and Liability</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.6. The
 Supplier undertakes to defend its account, and to indemnify the Client against any claim
 or claim and for any liability, liability, payment or expense (including administrative expenses,
 legal expenses and attorney's fees) incurred by the Client and which were ruled against
 the Client in a competent court of law, due to a third-party claim arising from the Supplier's
 breach of its declarations or its obligations under this Agreement and/or in respect of any
 of the grounds detailed 14.1.1, provided that the Client has notified the Supplier of a demand
 and/or claim, etc., immediately upon receipt of them, in order to enable the Client to defend
 its rights and to enable it to manage the claim at its discretion and in cooperation with
 the Client, and at the request of the Supplier, will also assist the Supplier in its defense
 and coordinate the defense with it (provided that it will not be required to bear any payment
 or expense for this purpose).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.7. The
 Client will be liable to the Supplier for any claim or claim and for any liability, liability,
 payment or expense, which has been ruled against the Supplier in a competent court, due to
 the End Users' claim against the Supplier for damages caused to them as a result of
 a medical diagnosis and/or prognosis that will be given or avoided through the Solution by
 the Client and not as a result of a malfunction/defect in the device that is the responsibility
 of the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1.8. Notwithstanding
 the aforesaid, it is clarified that neither party shall be entitled to enter into a settlement
 with any third party regarding a claim or claim against the other party without the written
 consent of the other party, if the settlement includes an admission of guilt by the other party
 or if it does not remove from the other party all liability for such claim.

&nbsp;&nbsp;&nbsp;&nbsp;14.2. <u>Limitation of Liability</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.1. Notwithstanding
 the foregoing, Supplier shall not be liable, and the Client shall hold Supplier liable for
 damage arising from: (i) the Client's use of the Solution or any part thereof in conjunction
 with or in conjunction with any other software or hardware (other than attachments expressly
 permitted in this Agreement or for which Supplier has given written consent); (ii) the characteristics
 or usability of the Client's systems, provided that Supplier has complied with the
 terms of this Agreement in installing the relevant Solution components; (iii) from the design
 by the Client of any adjustment, services provided under this Agreement or a change in the
 Solution, the interface to the Client's, or of the deployment and installation of the
 Solution Components, made at the request of the Client; or (iv) any adjustment, modification
 or amendment made to the Solution, the Client's system interface, or the deployment
 and installation of the Solution Components, other than by Supplier or anyone on its behalf
 or with the consent of Supplier which is detailed in writing. Notwithstanding the foregoing,
 the Client shall not be liable to the Supplier for any damage resulting from the use made
 by a third party of the Solution not in accordance with this Agreement, provided that an
 action not in accordance with this Agreement does not result from the Client's act
 or omission in violation of the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.2. Except
 in connection with breach of confidentiality, invasion of privacy, and personal injury under
 this Agreement, in no event shall either party be liable for loss of revenue, loss of profits,
 business interruption, or any indirect, special, punitive, or consequential damages (including
 claims brought by customers of customers) caused by the performance or non-performance of
 such party's obligations under this Agreement, or the provision of the products or
 services under this Agreement, their performance or use, whether for breach of contract,
 breach of warranty, strict liability, negligence or any other reason whatsoever, provided
 that no party shall be liable in the event that the damages are caused by the act or omission
 of the other party in breach of its obligations under this Agreement or in contravention
 of any law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2.3. Except
 in connection with a breach of the duty of confidentiality, breach of the duty of privacy
 under this Agreement, personal injury, malicious damage, infringement of intellectual property
 rights, by either party, Supplier's obligation to indemnify for damages under this
 Agreement, and the Client's breach of its obligations under Section 5.2 and its subsections
 of this Agreement (the "**Excluded Liabilities** "), in no event shall either
 party be liable in the amount of US$[\*\*\*] and in connection with the excluded liabilities.
 Neither party shall be liable in the amount of US$[\*\*\*].

15. **Insurances** 

&nbsp;&nbsp;&nbsp;&nbsp;15.1. Without
 derogating from its liability under this Agreement, the Supplier undertakes to prepare and
 maintain insurances in connection with the provision of the Solution and the provision of
 the Services under this Agreement, as detailed in  **<u>Appendix E</u>** . The insurance
 provider shall provide confirmation of the existence of such insurances at the request of
 the Client.

&nbsp;&nbsp;&nbsp;&nbsp;15.2. Without
 derogating from the liability of the Client under this Agreement, the Client undertakes to
 prepare and maintain for the entire period of the engagement under this Agreement, professional
 medical liability insurance covering its liability and those acting on its behalf under this
 Agreement. This insurance will be extended to indemnify the supplier for its liability for
 the acts and/or omissions of the Client and/or those acting on its behalf.

16. **Relationship of the Parties** 

&nbsp;&nbsp;&nbsp;&nbsp;16.1. The
 Supplier and the Client expressly and without any reservation declare and confirm that the
 relationship between them is solely a relationship between an independent contractor and
 the Company, with all that this entails regarding liability and liabilities under any law.
 It is agreed and declared between the parties that the employees of each party and their
 contractors are not employees of the other party and that the order of the services under
 this Agreement and/or the supply of any From the Products from the Services under this Agreement,
 you will not create an employee-employer or contractual relationship, supplier-client relationship,
 or any other relationship between the employees or contractors of any party (including clinicians)
 and the other party. Without derogating from the generality of the aforesaid, each party
 shall be solely responsible for complying with all provisions and/or requirements of the
 law in relation to its employees.

&nbsp;&nbsp;&nbsp;&nbsp;16.2. Each
 party shall be liable to the other party for any act or omission of any of its employees
 and/or service providers (such as subcontractors and consultants) in connection with this
 Agreement as if it were the act or omission of that party, pursuant to this Agreement, and
 any breach of the provisions of this Agreement by its employees and/or service providers
 of either party shall be considered a breach by that party and each party shall be liable
 to its own employees and contractors (including, Regarding the Client – Clinicians)
 in connection with this Agreement without any of the parties having direct liability, whether
 contractual or tort and/or otherwise, to the employees or contractors of the other party
 (including clinicians) in connection with this Agreement and/or the supply of any of the
 products and/or services under it.

17. **miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;17.1. **Transfer of rights.** Neither party may transfer, assign or convey its rights or obligations under
 this Agreement to any third party. Notwithstanding the provisions of this section, the Supplier
 shall be entitled to assign its rights and obligations under this Agreement to the purchaser
 of the majority of the Supplier's share capital and written notice shall be given to
 the Client with (but not before) the said assignment, and in any event prior to the provision
 of public notice by the Supplier, provided that this shall not prejudice any rights of the
 Client under the Agreement. including the level of service guaranteed to it in the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;17.2. **Non-exclusivity**.
 It is hereby clarified that this Agreement does not constitute a grant of the exclusive right
 to the Client or the Supplier.

&nbsp;&nbsp;&nbsp;&nbsp;17.3. **jurisdiction.** Any matter arising from this Agreement shall be heard only in the courts of the City of Tel
 Aviv-Jaffa in accordance with the law in force in Israel, but without giving effect and without
 applying the rules of choice of law therein.

&nbsp;&nbsp;&nbsp;&nbsp;17.4. **Cooperation.** Each party to this Agreement undertakes to reasonably assist the other party in performing
 the obligations under this Agreement; and if such assistance involves a financial expense,
 such expense shall be borne by the party requesting assistance, subject to its prior written
 approval.

&nbsp;&nbsp;&nbsp;&nbsp;17.5. **Failure to enforce does not infringe on rights.** The failure of a party to this Agreement to enforce
 its rights does not constitute a waiver of such rights or the right to sue for remedies for
 their breach, and it will not prevent enforcement of the provisions of this Agreement at
 the request of that party at a later date for that breach or any other breach of the Agreement,
 and will not hear a claim of delay or inhibition against a party seeking to enforce its rights
 as aforesaid **.** 

&nbsp;&nbsp;&nbsp;&nbsp;17.6. **Offset and Delay**. The parties mutually waive any claim and the right of offset and/or lien,
 whether existing or future, and will not be entitled to deduct from each other any amount
 in any claim, nor will they be entitled to delay the delivery and/or return of any possession
 as collateral for a debt claim.

&nbsp;&nbsp;&nbsp;&nbsp;17.7. **The completeness of the agreement.** The parties agree that this Agreement and its appendices
 constitute the full and exclusive expression of the agreement between the parties, superseding
 any previous proposals or agreements, whether oral or written, and any communication and
 other engagement between the parties relating to the subject matter of this Agreement and
 its appendices. Such prior correspondence and engagements shall not be admissible as evidence.

&nbsp;&nbsp;&nbsp;&nbsp;17.8. **Effectiveness of the Agreement Despite Invalidity of Certain Provisions.** If a competent court finds
 that a clause or clauses of this Agreement or parts of a clause or clauses are invalid or
 void or cannot be enforced, this shall not prejudice the remaining parts of this Agreement,
 which shall remain valid and binding for all intents and purposes **.** 

&nbsp;&nbsp;&nbsp;&nbsp;17.9. **Notices.** Notices in connection with this Agreement shall be sent by registered mail or facsimile or
 delivered by hand, in accordance with the responses of the parties set forth above (or as
 modified hereinafter), and each notice shall be deemed to have been received on the following
 dates: one business day after delivery, if delivered by hand; one business day after the
 date of dispatch against confirmation of shipment, if sent by facsimile; or upon the lapse
 of five business days from the date on which it was delivered for shipment; If sent by registered
 mail. Each party reserves the right, by notice given in accordance with the provisions of
 this Section, to change its address and the address for sending copies of this Agreement.

**[**This page was deliberately left blank; signatures on the next page**]**

**[**Signature page for the agreement for the provision of services and products**]**

**And as proof, the parties came to the signatory**

---

| | | | |
|:---|:---|:---|:---|
| **<u>Clalit Health Services</u>** | **<u>Clalit Health Services</u>** | **Pulsenmore Ltd.** | **Pulsenmore Ltd.** |
| **By:** | **Dr. Ehud Davidson** | **By:** | **Yair Rabinovich** |
|  | **CEO** |  | **Chairman of the Board of Directors** |
| **Signature:** | ***/s/ Dr. Ehud Davidson*** | **Signature:** | ***/s/ Yair Rabinovich*** |

---

---

| | | | |
|:---|:---|:---|:---|
| **By:** | **Ruth Ralbag** | **By:** | **Dr. Elazar Sonnenschein** |
|  | **CFO** |  | **CEO** |
| **Signature:** | ***/s/ Ruth Ralbag*** | **Signature:** | **/s/ Dr. Elazar Sonnenschein** |
| **Date:** | **14 December 2021** | **Date:** | **14 December 2021** |

---

**<u>Appendix A</u>** - Solution Specifications ("**Technical Specifications**")

[\*\*\*]

**<u>Appendix B</u>** - Commercial Terms

[\*\*\*]

**<u>Appendix C</u>** - Support and Maintenance Principles ("**Maintenance Appendix**")

[\*\*\*]

**<u>Appendix D</u>** - Developed interface tailored to the client

[\*\*\*]

**<u>Appendix E</u>** - Confidentiality and security of information

[\*\*\*]

**<u>Appendix F</u>** - Insurance

[\*\*\*]

**<u>Appendix G</u>** - Product Documents

[\*\*\*]

## Exhibit 4.11

**Exhibit 4.11**

**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**

**Addendum to Agreement Dated 2.8.2020**

Drafted and signed on 14 December 2021

Between

**Clalit Health Services [Main Management]**

101 Arlozorov St., Tel Aviv

Through the authorized signatories:

Rakefet Levi ID [\*\*\*] VP Finance Division

Ruth Ralbag ID [\*\*\*] CFO

(hereinafter: "Clalit" or "the Ordering Party")

And

**Pulsenmore Ltd.**

C.N. 515139129

8 Omer St., Barn Building, Omer 8496500

(Clalit and the Company shall be collectively referred to as the "Parties" and individually as a "Party")

---

| | |
|:---|:---|
| **Whereas**: | The Company supplies and sells to Clalit, and Clalit receives and purchases from the Company portable miniaturized ultrasound devices for pregnant women, pursuant to an agreement for the supply of services and products dated August 2, 2020 (hereinafter: "**the First Agreement**"); and |

---

---

| | |
|:---|:---|
| **Whereas**: | The Company has developed an additional ultrasound device for women undergoing in vitro fertilization (IVF) called "PulseNmore FC", intended for self-examination of follicle size, as detailed on the product page in **<u>Appendix A</u>** (hereinafter: "**the New Product**"); |

---

---

| | |
|:---|:---|
| **Whereas**: | Subject to the existence of the conditions precedent as detailed below, the Company wishes to supply and sell to Clalit, and Clalit wishes to receive and purchase from the Company the New Product and distribute it among its customers; |

---

---

| | |
|:---|:---|
| **Whereas**: | The parties wish to regulate the commercial principles between them with regard to the aforementioned supply and sale of the new product, in accordance with the terms of this Agreement; |

---

**Therefore, it was agreed and stipulated between the parties as follows:**

1. **Conditions precedent**. A condition for the entry into force of this Addendum to the first agreement
 is the receipt of AMAR approval for the New Product from the Ministry of Health, as well
 as the receipt of satisfactory results in the trial being conducted in relation to the New
 Product by Clalit through Rabin Medical Center. For the purposes of this section, satisfactory
 results will be considered results that meet the criteria, as determined in the said trial
 protocol.

2. **Supplement to the First Agreement**. This agreement serves as a supplement to the First Agreement
 and, except as specified below, all other terms of the First Agreement shall apply with the
 required changes with respect to the New Product, including, but not limited to, all matters
 relating to the marketing and distribution of the New Product among Clalit customers, payment
 terms, warranty and indemnity, insurance, support and maintenance, representations and representations,
 information security and privacy, preservation of "confidential information"
 (as defined in the First Agreement), property rights, terms of use of the product by patients
 in accordance with the New Product and in accordance with the terms of use that will be prepared
 for the New Product, etc. Any conflict between the provisions of this Agreement and the provisions
 of the First Agreement with respect to the issues specified below, the provisions of this
 Agreement shall prevail and bind the parties.

3. **The New Product and terms of use**. The New Product will allow each patient up to fifty (50)
 scans, with each scan allowing measurement of the size of the follicles in both ovaries and
 measurement of the thickness of the endometrial tissue. Use of the New Product is for a period
 of 12 months from the date of activation by the patient, or the completion of fifty (50)
 scans, whichever comes first. The term "Patient" or "Patients" in
 the plural means women undergoing in vitro fertilization (IVF) who are insured by Clalit,
 who use the New Product according to the terms of use.

4. **Price of the New Product**. The price of one unit of the new product will be () US dollars, plus
 VAT as applicable, subject to a single order of at least thousand () units of the new product
 in each contract year (as the term is defined below). For the avoidance of doubt, it is hereby
 clarified that this price is also valid in the event of return of devices by Clalit and credit,
 as detailed in Section 4 below.

5. **Orders and Return of Units**. Clalit undertakes to order and purchase from the Company and the
 Company undertakes to supply Clalit, in each Contract Year (as the term is defined below),
 at least units of the new product, provided that the new product has a valid AMAR approval.
 The term "Contract Year" means twelve (12) calendar months, commencing on the
 date of receipt of AMAR approval and receipt of satisfactory results of the study as stated
 in Section 1 above (hereinafter: the "**Establishing Date**") and in each
 subsequent Contract Year following the Effective Date during the Agreement Period. For the
 avoidance of doubt, the Parties shall determine in writing the effective date of the Agreement.
 This determination shall be made within a period not later than 30 days from the date of
 completion of the Suspicious Conditions. The 30-day period shall begin upon notification
 from Clalit to the Company regarding the completion of processing of the research data and
 their compliance with the criteria of the research protocol as stated in Section 1 above.
 This date shall be attached as an integral part of this document. Notwithstanding the foregoing,
 Clalit shall be entitled to return up to units of the new product from all orders during
 the first agreement period (as defined below), provided that in each contract year, Clalit
 shall be entitled to return up to – that is, Clalit shall place an order of devices
 in each contract year but shall be entitled to return and claim compensation for devices.
 Once every half (1/2) year in each contract year, the parties shall meet and discuss Clalit's
 order and return expectations for the subsequent twelve (12) months. This expectation shall
 not obligate Clalit and/or prejudice Clalit's right to return up to devices in each
 contract year as aforesaid.

6. **The first order**. On the specified date, Clalit will order from the Company and the Company
 will supply and sell to Clalit three thousand units of the New Product.

7. **Delivery dates**. The Company will ensure that Clalit supplies any order of up to units of the new
 product within [\*\*\*] ([\*\*\*]) months from the date of placing the order. (For the avoidance
 of doubt, this does not create any obligation on Clalit's part to place an order of
 over units as stated in Section 4 above.) Delivery of larger orders will be made by prior
 written agreement between the parties. Notwithstanding the foregoing, with regard to the
 first order, the Company will ensure that Clalit supplies at least units of the new product
 for the purpose of its launch by Clalit, within [\*\*\*] ([\*\*\*]) months from the determining
 date. The remaining units of the new product according to the first order will be supplied
 within [\*\*\*] ([\*\*\*]) months from the date of placing the order.

8. **Marketing and advertising**. The marketing and advertising of the new product by Clalit will be done
 in accordance with the plan attached as <u>Appendix B</u> to this addendum (hereinafter:
 the "**Marketing and Advertising Plan** "). The Company will participate in
 covering the budget designated for the advertising campaign according to the Marketing and
 Advertising Plan, in the amount of (including VAT) in each contract year during the first
 agreement period (hereinafter: the "**Annual Participation Amount**") and
 in total (including VAT) for this period. Payment of the annual participation amount by the
 Company is conditional on receipt of payment for the first order from Clalit for that contract
 year. The Company will pay its said share directly to the advertising company that Clalit
 will hire for this purpose.

9. **Warranty period for the New Product**: from the date of delivery of the new product, or from the
 date of activation, whichever comes first.

10. **Confidentiality of the Agreement and its Terms**. The terms and contents of this Agreement will be kept
 confidential. Notwithstanding the foregoing, the Company shall be entitled to disclose the
 existence and/or contents of this Agreement to investors and/or potential partners. In addition,
 this section shall not prevent any party from disclosing the existence or contents of this
 Agreement to any person or authority pursuant to an obligation applicable to it under any
 law, including pursuant to the requirement of the Securities Authority and/or any other regulatory
 body.

**11.** **Term of the Agreement and its Cancellation** 

&nbsp;&nbsp;&nbsp;&nbsp;11.1. **First Agreement Period**. The first agreement period is for a period of four (4) years of engagement
 (hereinafter: the "**First Agreement Period** "). Notwithstanding the foregoing,
 during the first agreement period, either party may terminate this agreement early by giving
 prior written notice to the other party, no later than 60 days prior to the date on which
 period commencing on the determining date ends. For the avoidance of doubt, the parties shall
 determine in writing the dates on which the parties have the right to terminate this agreement
 by giving prior notice to the other party, together with the parties' notice of the
 effective date of this agreement (as set forth in Section 5 above). In the event of such
 early termination, the parties shall calculate the quantity of devices that the General wishes
 to return – subject to the quantity limit specified in Section 5.

&nbsp;&nbsp;&nbsp;&nbsp;11.2. **Extension Option**. Clalit shall have the right to extend the First Agreement Period for two (2)
 additional periods of one additional contract year each (hereinafter: the "**First Extension Period**" and the "**Second Extension Period** ", respectively;
 and together shall be referred to hereinafter as the "**Extension Periods** "),
 subject to (a) providing prior written notice to the Company of Clalit's desire to
 exercise any of the extension periods, at least forty-five (45) days before the end of the
 first Agreement Period and/or the end of the first extension period, as the case may be,
 and (b) meeting the minimum purchase quota as specified in Section 4 above, (for the purpose
 of this matter: devices per year minus a maximum return of devices per year is considered
 a minimum quantity) in the contract year preceding each of the extension periods, as the
 case may be. Notwithstanding the provisions of this Section 10.2, the Company reserves the
 right, at its sole discretion, to terminate this Agreement early, at any time during the
 extension periods, by providing at least 90 days' prior written notice to the General.

12. **Jurisdiction**.
 Any matter arising from this Agreement shall be heard exclusively in the courts of Tel Aviv-Yafo.

**In witness whereof the parties hereto have signed**

**Pulsenmore Ltd.** 

---

| | | | |
|:---|:---|:---|:---|
| By: | Dr. Elazar Sonnenschein | By: | Lior Urie |
|  | CEO |  | Director of Business Development |
| Signature: | */s/ Dr. Elazar Sonnenschein* | Signature: | */s/ Lior Urie* |

---

**Clalit Health Services**

---

| | | | |
|:---|:---|:---|:---|
| By: | Ruth Ralbag | By: | Rakefet Levi |
|  | CFO |  | VP Finance |
| Signature: | */s/ Ruth Ralbag* | Signature: | */s/ Rakefet Levi* |

---

## Exhibit 8.1

**Exhibit 8.1**

**LIST OF SUBSIDIARIES**

---

| | |
|:---|:---|
| **Company Name** | **Jurisdiction of Incorporation** |
| Pulsenmore Americas LLC | Delaware |
| Pulsenmore Korea LLC | Republic of Korea |

---

## Exhibit 15.1

**Exhibit 15.1**

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the use in this Registration Statement on Form 20-F of Pulsenmore Ltd. of our report dated May 8, 2025, except for the effects of the reverse share split effected December 28, 2025 as discussed in note 1(b), as to which the date is December 29, 2025, relating to the consolidated financial statements of Pulsnmore Ltd., which appears in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

---

| | |
|:---|:---|
| Tel-Aviv, Israel | /s/ Kesselman & Kesselman |
| December 29, 2025 | Certified Public Accountants (Isr.) |
|  | A member of PricewaterhouseCoopers International Limited |

---