SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
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6 Months Ended |
Jun. 30, 2024 |
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| Accounting Policies [Abstract] |
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| Basis of Presentation |
| A. |
Basis
of Presentation
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The
accompanying unaudited condensed interim consolidated financial statements and related notes should be read in conjunction with the
Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for
the fiscal year ended December 31, 2023, as was filed with the Securities and Exchange Commission (“SEC”) on March 28,
2024. The unaudited condensed interim consolidated financial statements have been prepared in accordance with the rules and regulations
of the SEC related to interim financial statements. As permitted under those rules, certain information and footnote disclosures
normally required or included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial
information contained herein is unaudited; however, management believes all adjustments have been made that are considered necessary
to present fairly the results of the Company’s financial position and operating results for the interim periods. All such adjustments
are of a normal recurring nature. |
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The
results for the period of three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for
the year ending December 31, 2024 or for any other interim period or for any future period. |
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| Use of Estimates in the Preparation of Financial Statements |
| B. |
Use
of Estimates in the Preparation of Financial Statements
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The
preparation of the condensed interim consolidated financial statements in conformity with US GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities
at the dates of the financial statements, and the reported amounts of expenses during the reported periods. Actual results could
differ from those estimates. Management believes that there are no critical accounting estimates in these financial statements. |
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| Principles of Consolidation |
| C. |
Principles
of Consolidation
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The
condensed interim consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany
balances and transactions have been eliminated in consolidation. |
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| Cash and Cash Equivalents |
| D. |
Cash
and Cash Equivalents
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Cash
equivalents are short-term highly liquid investments which include short term bank deposits (up to three months from date of deposit),
that are not restricted as to withdrawals or use that are readily convertible to cash with maturities of three months or less as
of the date acquired. |
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| Modification of equity-classified contracts |
| E. |
Modification
of equity-classified contracts |
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The
modification or exchange of equity-classified contracts, such as warrants that were classified as equity before the modification
or exchange and remained eligible for equity classification after the modification, is accounted for in a similar manner to a modification
of stock-based compensation. Accordingly, the incremental fair value from the modification or exchange (the change in the fair value
of the instrument before and after the modification or exchange) is recognized as a reduction of retained earnings of increase of
accumulated deficit as a deemed dividend. Modifications or exchanges that result in a decrease in the fair value of an equity-classified
share-based payment awards are not recognized. In addition, the amount of the deemed dividend is also recognized as an adjustment
to earnings available to common shareholders for purposes of calculating earnings per share. |
GLUCOTRACK
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(in
thousands of US Dollars)
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
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| Warrants |
| F.
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Warrants |
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Certain
warrants that were issued to several holders are classified as a component of permanent equity since they are freestanding financial
instruments that are legally detachable and separately exercisable, do not embody an obligation for the Company to repurchase its
own shares, and permit the holders to receive a fixed number of Ordinary Shares upon exercise for a fixed exercise price and thus,
are considered as indexed to the Company’s own shares. As such warrants were issued together with financial instruments that
are not subsequently measured at fair value and the warrants were measured based on allocation of the proceeds received by the
Company in accordance with the relative fair value basis. When applicable, direct issuance expenses that were allocated to certain
warrants were deducted from additional paid-in capital. |
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| Leases |
| G. |
Leases
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The
Company applies ASC Topic 842, “Leases” (“ASC 842”) under which the
Company determines if an arrangement is a lease at inception. The Company’s assessment
is based on: (i) whether the contract involves the use of an identified asset, (ii) whether
the Company obtains the right to substantially all of the economic benefits from the use
of the asset throughout the period of use, and (iii) whether the Company has the right to
direct the use of the asset.
Leases
are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following
criteria are met: (i) the lease transfers ownership of the asset by the end of the lease term, (ii) the lease contains an option
to purchase the asset that is reasonably certain to be exercised, (iii) the lease term is for a major part of the remaining useful
life of the asset, (iv) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset,
or (v) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end
of lease term. A lease is classified as an operating lease if it does not meet any one of these criteria. Since all the Company’s
lease contracts for premises do not meet any of the criteria above, the Company concluded that all its lease contracts should be
classified as operating leases.
Right
of Use (“ROU”) assets and liabilities are recognized on the commencement date based on the present value of remaining
lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the
time of commencement. As most of the Company’s leases do not provide an implicit rate, the Company uses its Incremental Borrowing
Rate (“IBR”) based on the information available on the commencement date in determining the present value of lease payments.
The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments
and in economic environments where the leased asset is located. The ROU asset also includes any lease payments made prior to commencement
and is recorded net of any lease incentives received. Moreover, the ROU asset may also include initial direct costs, which are incremental
costs of a lease that would not have been incurred if the lease had not been obtained. The Company uses the long-lived assets impairment
guidance in ASC 360-10, “Property, Plant, and Equipment - Overall”, to determine whether a ROU asset is impaired, and
if so, the amount of the impairment loss to recognize. Certain leases include options to extend or terminate the lease. An option
to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain
that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company
will not exercise the option. |
GLUCOTRACK
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(in
thousands of US Dollars)
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
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| Basic and diluted loss per share |
| G. |
Basic
and diluted loss per share
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Basic
loss per share is computed by dividing the loss for the period applicable (after considering
the effect of deemed dividend related to trigger of down round protection feature) for Common
Stockholders by the weighted average number of shares of Common Stock outstanding and shares
of Common Stock to be issued upon achievement of performance milestone during the period
and upon exercise of pre-funded warrants. In
computing, diluted loss per share, basic earnings per share are adjusted to reflect the potential
dilution that could occur upon the exercise of options or warrants issued or granted using
the “treasury stock method”, if the effect of each of such financial instruments
is dilutive. In computing diluted loss per share, the average stock price for the period
is used in determining the number of Common Stock assumed to be purchased from the proceeds
to be received from the exercise of stock options or stock warrants.
Shares
to be issued upon exercise of all stock options and stock warrants, have been excluded from the calculation of the diluted net loss
per share for all the reported periods for which net loss was reported because the effect of the common shares issuable as result
of the exercise or conversion of these instruments was anti-dilutive. |
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The
net loss and the weighted average number of shares of Common Stock used in computing basic and diluted net loss per Common Stock
for the period of six and three month ended June 30, 2024 and 2023, is as follows: |
SCHEDULE
OF ANTIDILUTIVE NET LOSS AND WEIGHTED AVERAGE
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US dollars (except share data) | | |
US dollars (except share data) | |
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Six-month period ended June 30, | | |
Three-month period ended
June 30, | |
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(Unaudited) | | |
(Unaudited) | |
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2024 | | |
2023 | | |
2024 | | |
2023 | |
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| Numerator: | |
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| Net loss | |
$ | 7,416 | | |
$ | 2,462 | | |
$ | 4,489 | | |
$ | 1,176 | |
| Deemed dividend related to trigger of down round protection feature | |
| - | | |
| 855 | | |
| - | | |
| 855 | |
| Net loss attributable to common stockholders | |
$ | 7,416 | | |
$ | 3,317 | | |
$ | 4,489 | | |
$ | 2,031 | |
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| Denominator: | |
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| Shares of Common Stock used in computing basic and diluted net loss per common stock | |
| 5,226,975 | | |
| 3,544,000 | | |
| 5,460,081 | | |
| 3,987,275 | |
| Shares of Common Stock to be issued upon exercise of pre-funded warrants | |
| - | | |
| 162,510 | | |
| - | | |
| 325,019 | |
| Shares of Common Stock to be issued upon achievement of
second performance milestone | |
| 7,790 | | |
| - | | |
| 15,667 | | |
| - | |
| Weighted average number of Common Stock outstanding used in computing basic and diluted net loss per share | |
| 5,234,765 | | |
| 3,706,510 | | |
| 5,475,748 | | |
| 4,312,294 | |
| Basic and diluted net loss per common stock | |
$ | 1.42 | | |
$ | 0.89 | | |
$ | 0.82 | | |
$ | 0.47 | |
GLUCOTRACK
INC.
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(CONT.)
(in
thousands of US Dollars)
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