Exhibit
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Description of Exhibit
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SatixFy Communications Ltd.
By: /s/ Oren Harari
Oren Harari
Interim Chief Financial Officer
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Total Revenues: $8.9 million, reflecting a 31% increase compared to $6.8 million in the same period in 2022. The increase was primarily driven by increased sales of products.
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Gross Profit: $4.5 million (gross margin of 50.8%), a 21% increase from $3.7 million (gross margin of 56%) in the first nine months of 2022. The increase in gross profit and margin was attributed
to increased product sales with slightly lower margins than development services.
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Operating Loss: $28.1 million, compared with $16.8 million for the same period in 2022. The increase was mainly attributed to higher Research and Development (R&D) costs, as described below.
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Expenses Breakdown:
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Research and Development (R&D): $25.1 million, compared to $13.3 million in the same period in 2022. This increase in R&D expenses was primarily related to the final design stage of the
Company's advanced space-grade chips, encompassing tape-out costs and post-manufacture testing expenses.
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Selling and Marketing: $1.8 million compared to $1.7 million in the same period in 2022.
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General and Administrative: $5.6 million compared to $5.5 million in the same period in 2022.
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Finance Expenses: $31.8 million compared to $9.8 million in the same period in 2022. The increase was primarily attributed to a change in the valuation of the Forward Purchase Agreement due to a
decrease in the market price of the Company’s ordinary shares, offset by finance income resulting from a similar adjustment in the valuation of Price Adjustment of Shares.
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Cash and Cash Equivalents: As of September 30, 2023, totalled $6.2 million, compared to $11.9 million as of December 31, 2022.
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2-3
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4
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5
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September 30,
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September 30,
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December 31,
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2023
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2022
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2022
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ASSETS:
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CURRENT ASSETS:
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Cash and cash equivalents
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6,190
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18,807
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11,934
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Trade accounts receivable
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1,138
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2,226
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1,295
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Contract assets
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5,362
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4,059
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5,035
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Prepaid expenses and other
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1,740
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1,853
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3,648
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Government departments and agencies receivables
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6,495
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3,778
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6,156
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Related parties
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90
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93
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157
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Derivatives FPA
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-
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-
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12,775
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Inventory
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1,008
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989
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831
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Total current assets
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22,023
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31,805
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41,831
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NON-CURRENT ASSETS:
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Right-of-use assets, net
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2,221
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2,896
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2,794
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Property, plant and equipment, net
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1,543
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1,372
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1,643
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Investment in Jet Talk
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1,585
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2,058
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1,777
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Long term deposits
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198
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275
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203
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Derivatives FPA
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-
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-
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28,077
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Total non-current assets
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5,547
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6,601
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34,494
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TOTAL ASSETS
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27,570
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38,406
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76,325
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September 30,
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September 30,
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December 31,
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2023
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2022
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2022
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LIABILITIES AND SHAREHOLDERS’ DEFICIT:
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CURRENT LIABILITIES:
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Trade payables
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1,951
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1,247
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1,459
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Short term loans from financial institutions
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-
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-
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-
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Contract liabilities
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104
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300
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622
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ESA advance payments
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4,819
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5,966
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5,800
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Prepayment from customer
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25,071
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11,448
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12,176
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Lease liabilities
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715
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1,017
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1,021
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Other accounts payable and accrued expenses
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5,041
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7,649
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7,843
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FPA Derivative ST
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1,504
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-
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-
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Related parties
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336
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208
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408
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Total current liabilities
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39,541
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27,835
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29,329
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NON-CURRENT LIABILITIES:
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Long term loans from financial institutions
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61,933
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50,740
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54,926
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Lease liabilities
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1,859
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2,354
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2,280
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Derivatives instruments liabilities
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312
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866
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20,305
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Liability for royalties payable
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1,138
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1,506
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1,107
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Derivatives FPA
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12,100
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-
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-
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Total non-current liabilities
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77,342
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55,466
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78,618
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SHAREHOLDERS’ DEFICIT:
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Share Capital
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-
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-
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-
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Share Premium
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448,481
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53,973
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446,488
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Capital reserves
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3,845
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5,800
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3,498
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Accumulated deficit
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(541,639
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)
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(104,668
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)
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(481,608
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)
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Total shareholders’ deficit
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(89,313
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)
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(44,895
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)
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(31,622
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)
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TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT
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27,570
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38,406
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76,325
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Nine months ended
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September 31,
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2023
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2022
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Revenues:
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Development services and preproduction
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6,357
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6,478
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Sale of products
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2,529
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328
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Total revenues
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8,886
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6,806
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Cost of sales and services:
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Development services and preproduction
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3,213
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2,862
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Sale of products
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1,154
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202
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Total cost of sales and services
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4,367
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3,064
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Gross profit
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4,519
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3,742
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Research and development expenses, net
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25,114
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13,346
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Selling and marketing expenses
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1,847
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1,699
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General and administrative expenses
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5,614
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5,537
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Loss from operations
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(28,056
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)
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(16,840
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)
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Finance income
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53
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-
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Finance expenses
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(31,804
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(9,796
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Other income
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-
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5,865
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Company's share in the loss of a company accounted by equity method, net
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(193
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(79
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Loss before income taxes
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(60,000
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(20,850
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Income taxes
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-
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-
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Loss for the period
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(60,000
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)
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(20,850
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)
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Other comprehensive income (loss) net of tax:
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Items that will or may be reclassified to profit or loss:
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Exchange gain (loss) arising on translation of foreign operations
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317
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4,744
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Total comprehensive loss for the period
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(59,683
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(16,106
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)
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Nine months ended
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September 30,
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2023
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2022
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Cash flows from operating activities:
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Loss for the year
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(60,000
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)
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(20,850
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)
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Adjustments to reconcile net profit to net cash provided by operating activities:
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Depreciation and amortization
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901
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1,084
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Company's share in the loss of a company accounted by equity method, net
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193
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79
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Finance expenses on loans
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6,593
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341
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Change in the fair value of derivatives
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24,437
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(192
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)
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Share based payments
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1.966
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398
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Decrease (Increase) in trade accounts receivable
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186
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(1,746
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)
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Decrease (Increase) in contract assets
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(304
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)
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1,131
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Increase in inventory
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(177
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)
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(304
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)
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Increase (Decrease) in other current assets
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1,750
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(3,386
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)
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Increase in trade payables
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464
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(6.656
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)
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Increase in ESA prepayments
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(1,092
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)
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(8,267
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)
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Increase in other accounts payable and accrued expenses
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(3,458
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)
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676
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Increase in prepayments from customers
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12,995
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10,307
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Increase (decrease) in liability for royalties payable
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32
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325
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Net cash used in operating activities
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(15,514
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(27,060
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)
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Cash flows from investing activities
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Decrease (Increase) in long-term bank deposit
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3
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(8
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Purchase of property and equipment
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(86
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)
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(515
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)
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Net cash used in investing activities
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(83
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)
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(523
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)
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Cash flows from financing activities
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Receipt of long-term loans from a financial institution
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-
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52,837
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Repayment of loan to shareholder
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-
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(5,000
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)
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Repayment of loans from banks
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-
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(13,818
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)
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Repayment of royalty liability
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-
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(188
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)
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Payments of lease liabilities
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(454
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)
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(816
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)
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Issuance of shares (FPA)
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10,026
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5,056
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Option exercises to shares by employees
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26
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-
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Net cash provided by financing activities
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9,598
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38,071
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Increase (decrease) in cash and cash equivalents
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(5,999
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)
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10,488
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Cash and cash equivalents balance at the beginning of the year
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11,934
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3,854
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Effect of changes in foreign exchange rates on cash and cash equivalents
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255
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4,465
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Cash and cash equivalents balance at the end of the year
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6,190
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18,807
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