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Exhibit 99.1
 
NAYAX LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
As of June 30, 2024
(Unaudited)
 
NAYAX LTD.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
 
   
June 30
    
December 31
  
   
2024
    
2023
  
             
   
U.S. dollars in thousands
  
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
    
61,912
      
38,386
  
Restricted cash transferable to customers for processing activity
    
54,397
      
49,858
  
Short-term bank deposits
    
24,137
      
1,269
  
Receivables in respect of processing activity
    
72,356
      
43,261
  
Trade receivable, net
    
47,019
      
41,300
  
Inventory
    
20,308
      
20,563
  
Other current assets
    
10,717
      
8,772
  
Total current assets
    
290,846
      
203,409
  
                 
NON-CURRENT ASSETS:
                
Long-term bank deposits
    
2,119
      
2,304
  
Other long-term assets
    
5,571
      
5,883
  
Investment in associate
    
4,486
      
5,024
  
Right-of-use assets, net
    
6,373
      
5,341
  
Property and equipment, net
    
11,347
      
5,487
  
Goodwill and intangible assets, net
    
113,946
      
96,411
  
Total non-current assets
    
143,842
      
120,450
  
TOTAL ASSETS
    
434,688
      
323,859
  

 

 F - 2 

NAYAX LTD.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
 
   
June 30
    
December 31
  
   
2024
    
2023
  
   
U.S. dollars in thousands
  
LIABILITIES AND EQUITY
            
             
CURRENT LIABILITIES:
            
Short-term bank credit
    
34,530
      
47,477
  
Current maturities of long-term bank loans
    
2,386
      
1,101
  
Current maturities of loans from others and other long-term liabilities
    
4,451
      
5,422
  
Current maturities of leases liabilities
    
2,637
      
2,145
  
Payables in respect of processing activity
    
139,780
      
104,523
  
Trade payables
    
17,265
      
17,464
  
Other payables
    
31,122
      
25,650
  
Total current liabilities
    
232,171
      
203,782
  
                 
NON-CURRENT LIABILITIES:
                
Long-term bank loans
    
15,417
      
327
  
Long-term loans from others and other long-term liabilities
    
20,762
      
14,476
  
Post-employment benefit obligations, net
    
715
      
427
  
Lease liabilities
    
4,412
      
4,149
  
Deferred income taxes
    
2,524
      
3,108
  
Total non-current liabilities
    
43,830
      
22,487
  
TOTAL LIABILITIES
    
276,001
      
226,269
  
                 
EQUITY:
                
Share capital
    
9
      
8
  
Additional paid in capital
    
218,792
      
153,524
  
Capital reserves
    
10,129
      
9,643
  
Accumulated deficit
    
(70,243
)
    
(65,585
)
TOTAL EQUITY
    
158,687
      
97,590
  
TOTAL EQUITY AND LIABILITIES
    
 434,688
      
 323,859
  

 

 F - 3 

NAYAX LTD.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)
 
   
Six months ended
June 30
    
Three months ended
June 30
  
   
2024
    
2023
    
2024
    
2023
  
   
U.S. dollars in thousands
  
   
(Excluding loss per share data)
  
                         
Revenues
    
142,049
      
108,569
      
78,087
      
56,159
  
Cost of revenues
    
(79,474
)
    
(69,838
)
    
(43,499
)
    
(35,303
)
Gross Profit
    
62,575
      
38,731
      
34,588
      
20,856
  
                                 
Research and development expenses
    
(12,762
)
    
(10,106
)
    
(6,417
)
    
(4,970
)
Selling, general and administrative expenses
    
(45,284
)
    
(33,967
)
    
(23,824
)
    
(17,536
)
Depreciation and amortization in respect of technology and capitalized development costs
    
(5,383
)
    
(2,814
)
    
(2,812
)
    
(1,674
)
Other expenses, net
    
(506
)
    
-
      
(378
)
    
-
  
Share of loss of equity method investee
    
(538
)
    
(741
)
    
(248
)
    
(383
)
Operating profit (loss)
    
(1,898
)
    
(8,897
)
    
909
      
(3,707
)
Finance expenses, net
    
(5,989
)
    
(118
)
    
(3,601
)
    
(40
)
Loss before taxes on income
    
(7,887
)
    
(9,015
)
    
(2,692
)
    
(3,747
)
Income tax expense
    
(82
)
    
(485
)
    
(321
)
    
(226
)
Loss for the period
    
(7,969
)
    
(9,500
)
    
(3,013
)
    
(3,973
)
                                 
Loss per share attributed to shareholders of the Company:
                                
Basic and diluted loss per share
    
(0.227
)
    
(0.288
)
    
(0.083
)
    
(0.120
)

 

 F - 4 

NAYAX LTD.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
 
   
Six months ended
June 30
    
Three months ended
June 30
  
   
2024
    
2023
    
2024
    
2023
  
   
U.S. dollars in thousands
  
Loss for the period
    
(7,969
)
    
(9,500
)
    
(3,013
)
    
(3,973
)
                                 
Other comprehensive income (loss) for the period:
                                
Items that may be reclassified to profit or loss:
                                
Gains (loss) on cash flow hedges
    
(39
)
    
-
      
3
      
-
  
Gain from translation of financial statements of foreign operations
    
525
      
109
      
314
      
70
  
Total comprehensive loss for the period
    
(7,483
)
    
(9,391
)
    
(2,696
)
    
(3,903
)

 

 F - 5 

NAYAX LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

 

   
 
Share
capital
    
 
Additional paid in capital
    
Remeasurement of post-employment benefit obligations
    
Other capital reserves
    
Foreign currency translation reserve
    
Accumulated
deficit
    
Total
equity
  
   
U.S. dollars in thousands
  
                                           
Balance at January 1, 2024
  
8
      
153,524
      
248
      
9,545
      
(150
)
    
(65,585
)
    
97,590
  
Changes in the six months ended June 30, 2024:
                                                      
Loss for the period
                                          
(7,969
)
    
(7,969
)
Issuance of ordinary shares
  
1
      
63,190
      
-
      
-
      
-
      
-
      
63,191
  
Other comprehensive income for the period
  
-
      
-
      
-
      
(39
)
    
525
      
-
      
486
  
Employee options exercised
  
*
      
2,078
      
-
      
-
      
-
      
-
      
2,078
  
Share-based payment
  
-
      
-
      
-
      
-
      
-
      
3,311
      
3,311
  
Balance on June 30, 2024
  
9
      
218,792
      
248
      
9,506
      
375
      
(70,243
)
    
158,687
  
                                                       
Balance at January 1, 2023
  
8
      
151,406
      
248
      
9,503
      
20
      
(56,550
)
    
104,635
  
Changes in the six months ended June 30, 2023:
                                                      
Loss for the period
  
-
      
-
      
-
      
-
      
-
      
(9,500
)
    
(9,500
)
Other comprehensive income for the period
  
-
      
-
      
-
      
-
      
109
      
-
      
109
  
Employee options exercised
  
*
      
1,242
      
-
      
-
      
-
      
-
      
1,242
  
Share-based payment
  
-
      
-
      
-
      
-
      
-
      
3,470
      
3,470
  
Balance on June 30, 2023
  
8
      
152,648
      
248
      
9,503
      
129
      
(62,580
)
    
99,956
  
 
(*) Represents an amount lower than $1 thousand.
 
 F - 6 

NAYAX LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
 
   
Share
capital
    
Additional paid in capital
    
Remeasurement of post-employment benefit obligations
    
Other capital reserves
    
Foreign currency translation reserve
    
Accumulated
deficit
    
Total
equity
  
   
U.S. dollars in thousands
  
                                           
Balance at April 1, 2024
  
9
      
217,330
      
248
      
9,503
      
61
      
(68,964
)
    
158,187
  
Changes in the three months ended June 30, 2024:
                                                      
Loss for the period
  
-
      
-
      
-
      
-
      
-
      
(3,013
)
    
(3,013
)
Other comprehensive loss for the period
  
-
      
-
      
-
      
3
      
314
      
-
      
317
  
Employee options exercised
  
*
      
957
      
-
      
-
      
-
      
-
      
957
  
Issuance of ordinary shares
  
*
      
505
      
-
      
-
      
-
      
-
      
505
  
Share-based compensation
  
-
      
-
      
-
      
-
      
-
      
1,734
      
1,734
  
Balance on June 30, 2024
  
9
      
218,792
      
248
      
9,506
      
375
      
(70,243
)
    
158,687
  
                                                       
Balance at April 1, 2023
  
8
      
151,710
      
248
      
9,503
      
59
      
(60,286
)
    
101,242
  
Changes in the three months ended June 30, 2023:
                                                      
Loss for the period
  
-
      
-
      
-
      
-
      
-
      
(3,973
)
    
(3,973
)
Other comprehensive income for the period
  
-
      
-
      
-
      
-
      
70
      
-
      
70
  
Employee options exercised
  
*
      
938
      
-
      
-
      
-
      
-
      
938
  
Share-based compensation
  
-
      
-
      
-
      
-
      
-
      
1,679
      
1,679
  
Balance on June 30, 2023
  
8
      
152,648
      
248
      
9,503
      
129
      
(62,580
)
    
99,956
  
 
(*) Represents an amount lower than $1 thousand.

 

 F - 7 

NAYAX LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
   
Six months ended
June 30
    
Three months ended
June 30
  
   
2024
    
2023
    
2024
    
2023
  
   
U.S. dollars in thousands
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                        
Net loss for the period
    
(7,969
)
    
(9,500
)
    
(3,013
)
    
(3,973
)
Adjustments to reconcile net loss to net cash provided by operations (see Appendix A)
    
17,299
      
8,722
      
12,203
      
2,310
  
Net cash provided by (used in) operating activities
    
9,330
      
(778
)
    
9,190
      
(1,663
)
                                 
CASH FLOWS FROM INVESTING ACTIVITIES:
                                
Capitalized development costs
    
(9,788
)
    
(7,984
)
    
(5,417
)
    
(4,449
)
Acquisition of property and equipment
    
(1,009
)
    
(274
)
    
(849
)
    
(178
)
Loans granted to related company
    
(559
)
    
(620
)
    
(300
)
    
(620
)
Increase in bank deposits
    
(22,715
)
    
(1,182
)
    
312
      
(1,123
)
Payments for acquisitions of subsidiaries, net of cash acquired
    
(14,934
)
    
-
      
(14,934
)
    
-
  
Interest received
    
1,045
      
448
      
612
      
424
  
Investments in financial assets
    
(284
)
    
(97
)
    
-
      
(97
)
Proceeds from sub-lessee
    
111
      
69
      
56
      
69
  
Net cash used in investing activities
    
(48,133
)
    
(9,640
)
    
(20,520
)
    
(5,974
)
                                 
CASH FLOWS FROM FINANCING ACTIVITIES:
                                
Issuance of ordinary shares
    
62,686
      
-
      
-
      
-
  
Interest paid
    
(2,339
)
    
(1,020
)
    
(1,254
)
    
(745
)
Changes in short-term bank credit
    
(12,404
)
    
10,874
      
7,051
      
6,643
  
Royalties paid in respect to government assistance plans
    
-
      
(67
)
    
-
      
(67
)
Receipt of long-term bank loans
    
17,000
      
-
      
-
      
-
  
Repayment of long-term bank loans
    
(2,180
)
    
(502
)
    
(1,916
)
    
(248
)
Repayment of long-term loans from others
    
(1,723
)
    
(2,261
)
    
(581
)
    
(1,055
)
Repayment of other long-term liabilities
    
(100
)
    
(136
)
    
(76
)
    
(67
)
Employee options exercised
    
2,626
      
1,033
      
1,730
      
937
  
Principal lease payments
    
(1,269
)
    
(1,063
)
    
(683
)
    
(489
)
Net cash provided by financing activities
    
62,297
      
6,858
      
4,271
      
4,909
  
                                 
Increase (Decrease) in cash and cash equivalents
    
23,494
      
(3,560
)
    
(7,059
)
    
(2,728
)
Balance of cash and cash equivalents at beginning of period
    
38,386
      
33,880
      
68,569
      
33,212
  
Gains (losses) from exchange differences on cash and cash equivalents
    
(994
)
    
537
      
(523
)
    
424
  
Gains (losses) from translation differences on cash and cash equivalents of foreign operations
    
1,026
      
193
      
925
      
142
  
Balance of cash and cash equivalents at end of period
    
61,912
      
31,050
      
61,912
      
31,050
  
 
 F - 8 

NAYAX LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
   
Six months ended
June 30
    
Three months ended
June 30
  
   
2024
    
2023
    
2024
    
2023
  
   
U.S. dollars in thousands
  
Appendix A – adjustments to reconcile net loss to net cash provided by operations:
                        
                         
Adjustments in respect of:
                        
Depreciation and amortization
    
9,561
      
5,783
      
5,043
      
3,156
  
Post-employment benefit obligations, net
    
(5
)
    
26
      
(9
)
    
22
  
Deferred taxes
    
(772
)
    
(72
)
    
(283
)
    
(36
)
Finance expenses (income), net
    
2,562
      
(1,018
)
    
1,750
      
(807
)
Expenses in respect of long-term employee benefits
    
634
      
98
      
334
      
38
  
Share of loss of equity method investee
    
538
      
741
      
248
      
383
  
Long-term deferred income
    
570
      
(52
)
    
261
      
(26
)
Expenses in respect of share-based compensation
    
2,965
      
2,985
      
1,512
      
1,425
  
Total adjustments
    
16,053
      
8,491
      
8,856
      
4,155
  
                                 
Changes in operating asset and liability items:
                                
Increase in restricted cash transferable to customers for processing activity
    
(4,539
)
    
(16,456
)
    
(447
)
    
(6,493
)
Increase in receivables from processing activity
    
(29,098
)
    
(7,023
)
    
(6,707
)
    
(4,662
)
Increase in trade receivables
    
(3,289
)
    
(4,949
)
    
(3,684
)
    
(2,517
)
Decrease (Increase) in other current assets
    
2,220
      
(238
)
    
2,873
      
(1,237
)
Decrease in inventory
    
1,445
      
850
      
901
      
4,432
  
Decrease in payables in respect of processing activity
    
35,257
      
31,510
      
9,304
      
15,095
  
Increase (Decrease) in trade payables
    
(269
)
    
(2,032
)
    
4,115
      
(4,516
)
Decrease in other payables
    
(481
)
    
(1,431
)
    
(3,008
)
    
(1,947
)
Total changes in operating asset and liability items
    
1,246
      
231
      
3,347
      
(1,845
)
Total adjustments to reconcile net loss to net cash provided by operations
    
17,299
      
8,722
      
12,203
      
2,310
  
                                 
Appendix B – Information regarding investing and financing activities not involving cash flows:
                                
                                 
Purchase of property and equipment in credit
    
130
      
2
      
130
      
2
  
Acquisition of right-of-use assets through lease liabilities
    
584
      
338
      
63
      
243
  
Share based payments costs attributed to development activities, capitalized as intangible assets
    
346
      
485
      
222
      
254
  
Recognition of receivable balance in respect of sub-lease against derecognition of right-of-use asset in respect of lease of buildings
    
-
      
455
      
-
      
455
  
 
  F - 9  

 

NAYAX LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 
NOTE 1 - GENERAL
 
a.
Nayax Ltd. (hereafter – the “Company”) was incorporated in January 2005. The Company provides processing and software as a service (SaaS) business operations solutions and services via a global platform. The Company is marketing its POS devices and SaaS solutions it developed in more than 60 countries worldwide through subsidiaries (the Company and the subsidiaries, hereafter – the “Group”) and through local distributors.
 
The Company is a public entity and its shares are being traded on the Tel Aviv Stock Exchange (TASE) since May 2021 and on the Nasdaq Global Select Market (Nasdaq) since September 2022 under the symbol NYAX. As of that date, the Company is dual listed on the Nasdaq and the TASE.
 
b.
"Swords of Iron" - War against terror organization Hamas - On October 7, 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Following the attack, Israel’s government declared war against Hamas. Other terrorist organizations such as the Hezbollah in Lebanon on Israel's northern border have launched rocket attacks on Israel in support of Hamas. The military campaign against Hamas and other terrorist organizations is ongoing and could escalate in the future into a larger regional conflict. There is no certainty as to the duration, severity, results or implications of the war on the State of Israel generally or on the Company. While many of Israeli civilians were drafted to reserve duty, the company's headquarter activity located in Israel remained unharmed. The company has not experienced any material impact on its revenues, mainly due the fact that most of the company's revenues are generated overseas. As of the date of these financial statements, the end of the war is unknown
 
c.
On March 12, 2024, the Company successfully concluded an offering of 2,600,000 ordinary shares. The net proceeds from this sale amounted to approximately $62.7 million, after accounting for the underwriting discount, professional fees and other offering expenses.
 
d.
These condensed consolidated interim financial statements were approved by the Board of Directors on August 6, 2024 and should be read in conjunction with the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (the “2023 Annual Report”) filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2024.

 

NOTE 2 - BASIS OF PREPARATION OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
 
a.
These unaudited condensed consolidated interim financial statements of the Company as of June 30, 2024, and for the six-months and three-months interim periods ended on that date (hereinafter: "the Condensed Interim Financial Information") have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting”. These Condensed Consolidated Interim Financial Information, that are unaudited, do not include all 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 as of December 31, 2023, and their accompanying notes, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as published by the International Accounting Standards Board (“IASB”). The results of the Group and in the six -months and three-months periods ended June 30, 2024, do not necessarily provide indication of the results that can be expected in the year ended December 31, 2024.
 
b.
Estimates and judgments
 
The preparation of the Condensed Interim Financial Information requires management to exercise judgment and use significant accounting estimates and assumptions. These affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ materially from these estimates. In preparing these Condensed Interim Financial Information, the significant accounting judgments and the uncertainties associated with key sources of estimates are consistent with those in the consolidated annual financial statements for the year ended December 31, 2023.

 

 F - 10 

NAYAX LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
 
a.
Significant accounting policies and calculation methods that have been applied in the preparation of these Condensed Interim Financial Information are consistent with those used in the preparation of the Group's Consolidated Financial Statements for the year ended December 31, 2023.
 
New International Financial Reporting Standards, amendments to standards and new interpretations:
 
b.
In April 2024, the IASB issued IFRS 18, Presentation and disclosure in Financial Statements which replaces IAS 1, Presentation of Financial Statements. The new standard is a result of the IASB’s Primary Financial Statements project, which is aimed at improving comparability and transparency of communication in financial statements. While a number of sections have been brought forward from IAS 1, with limited wording changes, IFRS 18 introduces new requirements on presentation within the statement of profit or loss, including the specified totals and subtotals. It also requires disclosure of management defined performance measures and includes new requirements for aggregation and disaggregation of financial information. In addition, certain amendments have been made to IAS 7, Statements of Cash flows.
 
IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after January 1, 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively. Comparative periods in both interim and annual financial statements will need to be restated.
 
The Company is currently assessing the new requirements of IFRS 18.

 

NOTE 4 – REVENUE
 
   
Six months ended June 30
    
Three months ended June 30
  
   
2024
    
2023
    
2024
    
2023
  
   
U.S. dollars in thousands
  
                         
Revenue from the sale of integrated POS devices
    
42,507
      
39,952
      
24,709
      
19,833
  
Recurring revenue:
                                
SaaS revenue
    
39,255
      
27,473
      
21,399
      
14,284
  
Payment processing fee
    
60,287
      
41,144
      
31,979
      
22,042
  
     
99,542
      
68,617
      
53,378
      
36,326
  
Total
    
142,049
      
108,569
      
78,087
      
56,159
  

 

NOTE 5 – COST OF REVENUE
 
   
Six months ended June 30
    
Three months ended June 30
  
   
2024
    
2023
    
2024
    
2023
  
   
U.S. dollars in thousands
  
                         
Cost of integrated POS devices sales
    
30,549
      
33,913
      
17,610
      
16,138
  
Cost of recurring revenue
    
48,925
      
35,925
      
25,889
      
19,165
  
Total
    
79,474
      
69,838
      
43,499
      
35,303
  

 

 F - 11 

NAYAX LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

NOTE 6 - EVENTS DURING THE REPORTING PERIOD
 
a.
Acquisition of Roseman Engineering Ltd.
 
On April 1, 2024, (hereinafter "the acquisition date") the Company completed the acquisition of the entire share capital of Roseman Engineering Ltd. and Roseman Holdings Ltd. (hereinafter, together, "Roseman"). Roseman, a private entity incorporated under the laws of Israel, manage smart systems in the fields of refueling, charging stations and management systems for forecourts and vehicle fleets. The purchase consideration comprises of cash in amount of approximately $4,089 thousands (NIS 15,200 thousands), deferred consideration in amount of approximately $769 thousands (NIS 2,500 thousands) and the issuance of 19,722 Ordinary Shares worth of approximately $505 thousands (NIS 1,900 thousands) which presents their fair value through Company's equity transferred at the closing date, hence the purchase price will not exceed approximately $5,675 thousands (NIS 21,000 thousands). The final consideration is the subject to working capital adjustments.
 
The acquisition has been accounted for using the acquisition method. The identifiable assets acquired, and liabilities assumed have been measured at fair values as of the acquisition date. The following table summarizes the fair values of the identifiable assets and liabilities at the acquisition date:
 
 F - 12 

NAYAX LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

NOTE 6 - EVENTS DURING THE REPORTING PERIOD (continued)
 
a.
Acquisition of Roseman Engineering Ltd. (continued)
 
   
US Dollars in thousands
  
Cash
    
4,089
  
Deferred consideration
    
769
  
Issuance of Ordinary Shares
    
505
  
Total
    
5,363
  
         
Amounts recognized on the acquisition date:
        
Cash and cash equivalents
    
401
  
Trade receivables
    
2,643
  
Inventory
    
1,269
  
Right of use assets
    
1,466
  
Other receivables
    
284
  
Property and equipment
    
158
  
Deferred Income
    
(693
)
Trade payables
    
(635
)
Other liabilities
    
(754
)
Other payables
    
(1,744
)
Lease liabilities
    
(1,466
)
Total
    
929
Goodwill and identifiable intangible assets
    
4,434
  
Total
    
5,363
  
 
The excess of the purchase consideration over the fair value of the net identifiable assets has been recorded as Goodwill. Goodwill represents the expected synergies and intangible assets that do not qualify for separate recognition.
 
The following is information about revenues and losses of the Group under the assumption that Roseman transaction was completed on January 1, 2024: (1) The Group’s revenues for the reported period ended June 30, 2024, would have been $143,883 thousand, compared to $142,049 thousand as reported, and; (2) The Group's losses for reported period ended June 30, 2024, would have been $8,165 thousand compared to $7,969 thousand as reported.
 
The additional revenue included in the consolidated income statement since the acquisition date resulting from consolidating Roseman's results was $2,246 thousand during the reported period. Additionally, the consolidation of Roseman resulted in an increase of $196 thousand in the loss for the reported period ended June 30, 2024.
 
The accounting for the business combination is incomplete at the reporting date. The provisional amounts recognized for the acquired identifiable assets and liabilities are based on the information available at the date of the issuance of these condensed financial statements. The Company is still in the process of finalizing the fair value assessments of these items. In accordance with IFRS 3R, the measurement period is up to one year from the acquisition date, during which adjustments may be made to the provisional amounts as new information is obtained about facts and circumstances that existed as of the acquisition date.
 
 F - 13 

NAYAX LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

NOTE 6 - EVENTS DURING THE REPORTING PERIOD (continue)
 
b.
Acquisition of VMtecnologia LTDA.
 
On April 30, 2024, the company successfully completed the acquisition of the entire share capital of VMtecnologia LTDA. (hereinafter "VM"), a Brazilian entity incorporated under the laws of Brazil and operates in the unattended retail market with an easy-to-use, proprietary and secure technology. VM's solution simplifies and enables the operation of autonomous stores with hardware, point-of-sale software, and payment solutions.
 
The purchase consideration comprised of (1) approximately $12,762 thousands in cash on the date of the closing (BRL 66,000 thousands) reduced by the Estimated Indebtedness and increased by the Estimated Cash, (2) Contingent consideration of approximately $8,508 thousands (BRL 44,000 thousands) which is subject to VM's revenues growth and other certain milestones. Except of a one individual seller that will receive certain portion by cash, the other sellers may receive, in company's sole discretion, up to 50% of the consideration in company's shares all to be paid in installments up to April 30, 2027 subject to certain revenue growth conditions, (3) Contingent consideration of approximately $5,317 thousands (BRL 27,500 thousands), where $4,834 thousands (BRL 25,000 thousands) shall be paid with the Company's shares, at the share price of the Company determined at the date of the closing and the remaining approximately $483 thousands (BRL 2,500 thousands) shall be paid in cash, both are due on April 30, 2027. The contingent consideration is subject to VM’s revenue performance, and (4) all subject to adjustments to final Cash, Indebtedness and Working Capital (as defined in the purchase agreement).

 

The acquisition has been accounted for using the acquisition method. The identifiable assets acquired, and liabilities assumed have been measured at fair values as of the acquisition date. The following table summarizes the fair values of the identifiable assets and liabilities at the acquisition date:
 
 F - 14 

NAYAX LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

NOTE 6 - EVENTS DURING THE REPORTING PERIOD (continue)
 
b.
Acquisition of VMTecnologia LTDA. (continue)
   
US Dollars in thousands
  
Cash
    
11,345
  
Contingent Consideration
    
5,429
  
Total
    
16,774
  
         
Amounts recognized on acquisition date:
        
Cash and cash equivalents
    
99
  
Trade receivables
    
669
  
Other receivables
    
651
  
Property and equipment, net
    
6,648
  
Right of use
    
46
  
Trade payables
    
(407
)
Other payables
    
(710
)
Other liabilities
    
(684
)
Lease liability
    
(53
)
Long term liabilities
    
(433
)
Deferred Tax Liability
    
(232
)
Total
    
5,594
  
         
Goodwill and identifiable intangible assets
    
11,180
  
Total
    
16,774
  
 
The excess of the purchase consideration over the fair value of the net identifiable assets has been recorded as Goodwill. Goodwill represents the expected synergies and intangible assets that do not qualify for separate recognition.
 
The following is information about revenues and losses of the Group under the assumption that VM transaction was completed on January 1, 2024: (1) The Group’s revenues for the reported period ended June 30, 2024, would have been $145,457 thousand, compared to $142,049 thousand as reported, and; (2) The Group's losses for reported period ended June 30, 2024, would have been $ 7,078 thousand compared to $ 7,969 thousand as reported.
 
The additional revenue included in the consolidated income statement since the acquisition date resulting from consolidating VM's results was $ 1,947 thousand during the reported period. Additionally, the consolidation of VM resulted in a decrease by $ 319 thousand in the loss for the reported period ended June 30, 2024.
 
The accounting for the business combination is incomplete at the reporting date. The provisional amounts recognized for the acquired identifiable assets and liabilities are based on the information available at the date of the issuance of these condensed financial statements. The company is still in the process of finalizing the fair value assessments of these items. In accordance with IFRS 3R, the measurement period is up to one year from the acquisition date, during which adjustments may be made to the provisional amounts as new information is obtained about facts and circumstances that existed as of the acquisition date.
 
 F - 15 

NAYAX LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

NOTE 6 - EVENTS DURING THE REPORTING PERIOD (continue)
c.
On Track Innovation Ltd. – Israel Competition Authority
 
As previously disclosed, the Israeli Competition Authority (the “ICA”) has requested from the Company documents and information related mainly to its acquisition of On Track Innovation Ltd. The Company has provided the requested information and commenced discussions with the ICA

 

While we cannot predict the outcome, it is likely that if our discussions with the ICA are unsuccessful,  we expect the ICA would seek to take enforcement actions against the Company, which could include imposing a fine on the Company, the amount of which could be material. The dialog with the ICA continues and it is difficult to assess when or how this process will conclude, or what results it may have to the Company.
 
d.
Long Term Loan - Retail Pro International LLC acquisition
 
 
During 2023, the Company funded an acquisition of Retail Pro International LLC by the cash portion of the consideration payable at the closing, with a short-term credit facility that the Company received (see note 26 in the annual financial statements for the year ended December 31, 2023). On February 25, 2024, the Company received from the same lender an approval for a long-term loan through bank financing that was used to repay the short-term credit facility. The long-term loan was fully executed and bears a SOFR based variable interest rates. Under the credit facility above of the financing agreement, the Company is required to meet certain financial covenants.
   
 

As of the date of these condensed financial statements, the Company met all the covenants set by the lenders.
   
NOTE 7 - FINANCIAL INSTRUMENTS
 
Fair value of financial assets and financial liabilities
 
The carrying amounts of all financial assets and financial liabilities in the Company's statement of financial position reasonably approximate their fair value.

 

NOTE 8 - LOSS PER SHARE

 
a.
Basic
 
Loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue (in thousands excluding loss per share data):
 
   
Six months ended on June 30
    
Three months ended June 30
  
   
2024
    
2023
    
2024
    
2023
  
Loss for the period
    
(7,969
)
    
(9,500
)
    
(3,013
)
    
(3,973
)
Weighted average of ordinary shares
    
35,059
      
33,023
      
36,224
      
33,075
  
Basic loss per ordinary share
    
(0.227
)
    
(0.288
)
    
(0.083
)
    
(0.120
)
 
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 (thousands of shares):
 
   
June 30, 2024
    
June 30, 2023
  
Options and unvested RSU issued as part of share-based payment
    
2,832
      
3,737
  

 

 F - 16 

NAYAX LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

 

NOTE 9 – SHARE BASED COMPENSATION
 
The Company grants Options and Restricted Stock Units (RSUs) to employees, executive management and directors as part of its equity compensation plans. RSUs represent the Company's commitment to issue shares to the recipient at a future date, subject to certain vesting conditions. During the six months ended on June 30, 2024, the company granted the following:
 
Grant date
  
Number of RSUs
  
Fair value
February 1, 2024
  
11,000
  
$26.5
February 27, 2024
  
51,598
  
$28.1
May 12, 2024
  
20,735
  
$29.2
June 25, 2024
  
180,172
  
$21.55
 
The vesting period of the RSUs is 4 years, with 25% vests on the first anniversary of the grant date, and after that, additional 6.25% of the vests on the last day of each subsequent calendar quarter.
 
In respect of employees and officers in Israel, all plans described above are supposed to be managed under the rules of the capital option, as set out in Section 102 of the Income Tax Ordinance. The allotments to Israelis who are not employees are subject to Section 3(i) to the Income Tax Ordinance. Overseas employees and service providers are subject to tax laws in their respective countries.
 
F - 17