UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2021
Commission File Number 001-37381
(Translation of registrant’s name into English)
Omer Industrial Park, No. 7A, P.O. Box 3030, Omer 8496500, Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): __
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): __
EXPLANATORY NOTE
This Report of Foreign Issuer on Form 6-K (“Form 6-K”) is being furnished by Medigus Ltd. (the “Company”) to the Securities and Exchange Commission (the “SEC”) for the sole purpose of: (i) furnishing, as Exhibit 99.1 to this Form 6-K, unaudited, condensed consolidated financial statements of the Company as of and for six months ended June 30, 2021; and (ii) furnishing, as Exhibit 99.2 of this Form 6-K Management’s Discussion and Analysis of Financial Condition and Results of Operations, which discusses and analyses the Company’s financial condition and results of operation as of and for the six months ended June 30, 2021.
This report on Form 6-K is incorporated by reference into the Company’s Registration Statements on Form F-3 (File No. 333-213280, No. 333-237774 and No. 333-238162) and Form S-8 (File No. 333-206803, No. 333-221019,333-229429 and 333-58624)
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MEDIGUS LTD. | ||
| Date: September 20, 2021 | By: | /s/ Tali Dinar |
| Tali Dinar | ||
| Chief Financial Officer | ||
2
EXHIBIT INDEX
| Exhibit | Description | |
| 99.1 | Interim Condensed Consolidated Financial Statements (Unaudited) as of June 30, 2021. | |
| 99.2 | Operating and Financial Review as of June 30, 2021, and for the Six Months then Ended. | |
| 101.INS | Inline XBRL Instance Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
3
Exhibit 99.1
MEDIGUS LTD.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF JUNE 30, 2021
MEDIGUS LTD.
TABLE OF CONTENTS
| Page | |
| Interim Condensed Consolidated Financial Statements – in US Dollars (USD) in thousands: | |
| Interim Condensed Consolidated Balance Sheets | 2-3 |
| Interim Condensed Consolidated Statements of Loss and Other Comprehensive Loss | 4 |
| Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity | 5-7 |
| Interim Condensed Consolidated Statements of Cash Flows | 8-9 |
| Notes to the Interim Condensed Consolidated Financial Statements | 10-41 |
MEDIGUS LTD.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30 | December 31 | |||||||||
| 2021 | 2020 | |||||||||
| Note | Unaudited | Audited | ||||||||
| USD in thousands | ||||||||||
| Assets | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | ||||||||||
| Short term deposit | ||||||||||
| Held for sale asset | 4.E | |||||||||
| Accounts receivables - trade | ||||||||||
| Inventory | 5 | |||||||||
| Related party prepaid expenses | 10 | |||||||||
| Other current assets | ||||||||||
| NON-CURRENT ASSETS: | ||||||||||
| Contract fulfillment assets | ||||||||||
| Property and equipment, net | ||||||||||
| Right-of-use assets, net | ||||||||||
| Investments accounted for using the equity method | 4.A.1 | |||||||||
| Intangible assets | 6 | |||||||||
| Retirement benefit assets, net | ||||||||||
| Other receivables | ||||||||||
| Financial assets at fair value through profit or loss | 3 | |||||||||
| TOTAL ASSETS | ||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
2
MEDIGUS LTD.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30 | December 31 | |||||||||
| 2021 | 2020 | |||||||||
| Note | Unaudited | Audited | ||||||||
| USD in thousands | ||||||||||
| Liabilities and equity | ||||||||||
| ST Short term loan and current portion of long-term loan | 10 | |||||||||
| Accounts payables – trade | ||||||||||
| Lease liabilities | ||||||||||
| Warrants at fair value | 3 | |||||||||
| Contract liability | ||||||||||
| Liability to event producers | ||||||||||
| Accrued expenses and other liabilities | 7 | |||||||||
| Related parties | 10 | |||||||||
| NON-CURRENT LIABILITIES: | ||||||||||
| Lease liabilities | ||||||||||
| Contract liability | ||||||||||
| Loans from related parties | 10 | |||||||||
| Deferred tax liability | ||||||||||
| Retirement benefit obligation, net | ||||||||||
| TOTAL LIABILITIES | ||||||||||
| SHAREHOLDERS’ EQUITY: | 8 | |||||||||
| Share capital – ordinary shares with par value: authorized – June 30, 2021 and December 31, 2020 – | ||||||||||
| Share premium | - | |||||||||
| Other capital reserves | ||||||||||
| Warrants | ||||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||||
| Equity attributable to owners of Medigus Ltd. | ||||||||||
| Non-controlling interests | ||||||||||
| TOTAL SHAREHOLDERS’ EQUITY | ||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
3
MEDIGUS LTD.
INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND
OTHER COMPREHENSIVE LOSS
| Six months ended | Year ended | |||||||||||||
| June 30, | December 31 | |||||||||||||
| 2021 | 2020 | 2020 | ||||||||||||
| Note | Unaudited | Audited | ||||||||||||
| USD in thousands | ||||||||||||||
| Revenues: | ||||||||||||||
| Products | ||||||||||||||
| Revenue from commission | ||||||||||||||
| 9 | ||||||||||||||
| Cost of revenues: | ||||||||||||||
| Products | ||||||||||||||
| Revenue from commission | ||||||||||||||
| Gross Profit /(Loss) | ( | ) | ( | ) | ||||||||||
| Research and development expenses | ( | ) | ( | ) | ( | ) | ||||||||
| Sales and marketing expenses | ( | ) | ( | ) | ( | ) | ||||||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ||||||||
| Net change in fair value of financial assets at fair value through profit or loss | ( | ) | ||||||||||||
| Share of net loss of associates accounted for using the equity method | ( | ) | ( | ) | ( | ) | ||||||||
| Amortization of excess purchase price of an associate | ( | ) | ( | ) | ||||||||||
| Operating loss | ( | ) | ( | ) | ( | ) | ||||||||
| Changes in fair value of warrants issued to investors | ( | ) | ||||||||||||
| Gain upon loss of control in a subsidiary | 4.A | |||||||||||||
| Gain from sale of investment | 4.E | - | - | |||||||||||
| Other income | - | - | ||||||||||||
| Financial income (loss) net | ( | ) | ||||||||||||
| Income Loss before taxes on income | ( | ) | ( | ) | ||||||||||
| Tax benefit (expense) | ( | ) | ||||||||||||
| Net income (loss) for the period | ( | ) | ( | ) | ||||||||||
| Other comprehensive income | ||||||||||||||
| Items that may be reclassified to profit or loss | ||||||||||||||
| Share of other comprehensive income of associates accounted for using the equity method | ( | ) | ||||||||||||
| Items that will not be reclassified to profit or loss | ||||||||||||||
| Share of other comprehensive income of associates accounted for using the equity method | ||||||||||||||
| Other comprehensive income for the period | ( | ) | ||||||||||||
| Total comprehensive income (loss) for the period | ( | ) | ( | ) | ||||||||||
| Net income (loss) for the period is attributable to: | ||||||||||||||
| Owners of Medigus | ( | ) | ( | ) | ||||||||||
| Non-controlling interest | ( | ) | ( | ) | ( | ) | ||||||||
| ( | ) | ( | ) | |||||||||||
| Total comprehensive income (loss) for the period is attributable to: | ||||||||||||||
| Owners of Medigus | ( | ) | ( | ) | ||||||||||
| Non-controlling interest | ( | ) | ( | ) | ( | ) | ||||||||
| ( | ) | ( | ) | |||||||||||
| Earning (Loss) per ordinary share attributed to Medigus ltd | ||||||||||||||
| Basic | ( | ) | ( | ) | ||||||||||
| Diluted | ( | ) | ( | ) | ||||||||||
| Weighted average ordinary shares outstanding (In thousands) | ||||||||||||||
| Basic | ||||||||||||||
| Diluted | ||||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
4
MEDIGUS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| Equity attributable to owners of Medigus Ltd. | ||||||||||||||||||||||||||||||||||||||||||||
| Ordinary shares | Share premium |
Capital reserves from options granted |
Other reserves |
Capital reserves from transactions with non- controlling interest |
Currency translation differences |
Warrants | Accumulated deficit |
Total | Non- controlling interests |
Total equity |
||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JANUARY 1, 2021 | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
| Income (Loss) for the period | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive Income (Loss) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
| TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
| TRANSACTIONS WITH SHAREHOLDERS: | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares and warrants (note 8) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares by Eventer | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of a subsidiary (note 4C) | ||||||||||||||||||||||||||||||||||||||||||||
| Deemed contributions to a subsidiary (Note 4C) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
| Loss of control in a subsidiary (note 4A) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||
| Cancellation of par value (See Note 7) | ( |
) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
| Share in capital reserve of an associate | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation in connection with options granted to employees and service providers | ||||||||||||||||||||||||||||||||||||||||||||
| Expiration of warrants | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
| TOTAL TRANSACTIONS WITH SHAREHOLDERS | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JUNE 30, 2021 | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
5
MEDIGUS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| Equity attributable to owners of Medigus Ltd. | ||||||||||||||||||||||||||||||||||||||||||||
| Ordinary shares | Share premium | Capital reserves from options granted | Other reserves | Capital reserves from transactions with non- controlling interest | Currency translation differences | Warrants | Accumulated deficit | Total | Non- controlling interests | Total equity | ||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JANUARY 1, 2020 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| Loss for the period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||
| Other comprehensive income | ||||||||||||||||||||||||||||||||||||||||||||
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||
| TRANSACTIONS WITH SHAREHOLDERS: | ||||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares and warrants | ( | ) | ||||||||||||||||||||||||||||||||||||||||||
| Exercise of warrants | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| Issuance of shares and warrants by the Subsidiary | ||||||||||||||||||||||||||||||||||||||||||||
| Conversion into shares and warrants of loan granted to the Subsidiary | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation in connection with options granted to employees and service providers | ||||||||||||||||||||||||||||||||||||||||||||
| Expiration of options | ( | ) | ||||||||||||||||||||||||||||||||||||||||||
| TOTAL TRANSACTIONS WITH SHAREHOLDERS | ( | ) | ||||||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JUNE 30, 2020 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
6
MEDIGUS LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
| Equity attributable to owners of Medigus Ltd. | |||||||||||||||||||||||||||||||||||||||||||||||
| Note | Ordinary shares |
Share premium |
Capital reserves from options granted |
Other reserves |
Capital reserves from transactions with non- controlling interest |
Currency translation differences |
Warrants | Accumulated deficit |
Total | Non- controlling interests |
Total equity |
||||||||||||||||||||||||||||||||||||
| BALANCE AS OF JANUARY 1, 2020 | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Loss for the period | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL COMPREHENSIVE LOSS FOR THE YEAR | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||
| TRANSACTIONS WITH SHAREHOLDERS: | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of a subsidiary | |||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares and warrants | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Exercise of warrants | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
| Issuance of shares and warrants by the Subsidiary | |||||||||||||||||||||||||||||||||||||||||||||||
| Conversion into shares and warrants of loan granted to the Subsidiary | ( |
) | ( |
) | - | ||||||||||||||||||||||||||||||||||||||||||
| Share in capital reserve of an associate | |||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation in connection with options granted to employees and service providers | |||||||||||||||||||||||||||||||||||||||||||||||
| Expiration of options | ( |
) | |||||||||||||||||||||||||||||||||||||||||||||
| TOTAL TRANSACTIONS WITH SHAREHOLDERS | ( |
) | - | ( |
) | - | |||||||||||||||||||||||||||||||||||||||||
| BALANCE AS OF DECEMBER 31, 2020 (Audited) | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
7
MEDIGUS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six months ended | ||||||||
| June 30, | ||||||||
| 2021 | 2020 | |||||||
| Unaudited | ||||||||
| USD in thousands | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Cash flows used in operations (see Appendix A) | ( | ) | ( | ) | ||||
| Interest received | ||||||||
| Interest paid | ( | ) | ( | ) | ||||
| Net cash flow used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Deconsolidation of ScoutCam Inc upon loss of control (see Appendix B and note 4.A) | ( | ) | ||||||
| Consolidation of Jeffs Brands Ltd. upon gain of control (see Appendix C and note 4.C) | ||||||||
| Purchase of intangible assets | ( | ) | ||||||
| Investment in short term deposits | ( | ) | ||||||
| Exercise of ScoutCam’s warrants | ( | ) | ||||||
| Sale of securities in Automax | ||||||||
| Payments for acquisitions of associates and financial assets at fair value through profit or loss | ( | ) | ( | ) | ||||
| Net cash flow used in investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of shares and warrants by subsidiaries, net of issuance costs of Subsidiaries (see note 4.B, 4.A) | ||||||||
| Principal elements of lease liability | ( | ) | ||||||
| Increase in short term bank loan | ||||||||
| Increase in long-term loan | ( | ) | ||||||
| Proceeds from issuance of shares and warrants and from exercise of warrants, net of issuance costs (see note 8) | ||||||||
| Net cash flow generated from financing activities | ||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ||||||||
| BALANCE OF CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | ||||||||
| GAIN FROM EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS | ( | ) | ||||||
| BALANCE OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | ||||||||
The
accompanying notes are an integral part of these interim condensed consolidated financial statements.
8
MEDIGUS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six months ended | ||||||||
| June 30, | ||||||||
| 2021 | 2020 | |||||||
| Unaudited | ||||||||
| USD in thousands | ||||||||
| Appendix A to the condensed consolidated statements of cash flows: | ||||||||
| Net cash used in operations: | ||||||||
| Income (Loss) for the period before taxes on income | ( | ) | ||||||
| Adjustment in respect of: | ||||||||
| Gain from exchange differences on cash and cash equivalents | ( | ) | ||||||
| Depreciation and amortization | ||||||||
| Interest received | ( | ) | ||||||
| Interest expenses | ||||||||
| Profit (loss) on change in the fair value of warrants issued to investors | ( | ) | ||||||
| Stock-based compensation in connection with options granted to employees and service providers | ||||||||
| Net change in the fair value of financial assets at fair value through profit or loss (note 3) | ( | ) | ||||||
| Share of net loss of associates accounted for using the equity method | ||||||||
| Amortization of excess purchase price of an associate | ||||||||
| Gain arising from deconsolidation of a subsidiary upon loss of control (see note 4.A) | ( | ) | ||||||
| Gain from sales of investment (see note 4.E) | ( | ) | - | |||||
| Changes in operating asset and liability items: | ||||||||
| Increase (Decrease) in accounts receivable - trade | ( | ) | ||||||
| Decrease in other current assets | ( | ) | ( | ) | ||||
| Increase in accounts payables - trade and customer advance payment | ||||||||
| Increase (Decrease) in accrued compensation expenses | ( | ) | ||||||
| Increase in contract liabilities | ||||||||
| Increase in Contract fulfillment assets | ( | ) | ( | ) | ||||
| Increase (Decrease) in other current liabilities | ( | ) | ||||||
| Decrease (Increase) in inventory | ( | ) | ||||||
| Net cash used in operations | ( | ) | ( | ) | ||||
| March 31, 2021 | ||||
| Appendix B to the condensed consolidated statements of cash flows: | ||||
| Deconsolidation of ScoutCam upon loss of control: | ||||
| Working capital other than cash | ||||
| Property and equipment , net | ( | |||
| Lease liability- long term | ||||
| ScoutCam investment in fair value | ||||
| Derecognition of non-controlling interest | ||||
| Gain arising from deconsolidation upon loss of control | ( | ) | ||
| Net cash deconsolidated upon loss of control | ||||
| January 04, | ||||
| 2021 | ||||
| Appendix C to the condensed consolidated statements of cash flows: | ||||
| Consolidation of Jeffs Brands Ltd. upon gain of control: | ||||
| Net working capital other than cash and inventory | ( | ) | ||
| Intangible assets | ||||
| Inventory | ||||
| deferred taxes | ( | ) | ||
| Non-controlling interests | ( | ) | ||
| Borrowings | ( | ) | ||
| Non-cash consideration | ( | ) | ||
| Goodwill | ||||
| Net cash acquired | ( | ) | ||
Appendix D to the condensed consolidated statements of cash flow :non-cash transaction:
| Issuance of shares in exchange for media and advertising services rights (Note 10.B1) | ||||
| Purchase a software license on credit (Note 10 .B2) |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
9
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL
| A. | Medigus Ltd. (the “Company” or “Medigus”) was incorporated in Israel on December 9, 1999. The Company’s registered office and principal place of business are located in Israel. The address of its registered office is P.O. Box 3030, Omer, Israel 8496500. |
“Group” - the Company together with, Jeff’s Brands Ltd., Charging Robotics Ltd., GERD IP and Eventer Ltd..
“Subsidiaries” – Entities under the control of the Company.
These interim condensed consolidated financial statements were approved on September 20, 2021.
ScoutCam
ScoutCam has made a number of capital
raising during 2021, when the last occurred on March 22, 2021. Therefore the company diluted the holding into
GERD IP , INC
On
January 13, 2020, together with the Company’s advisor Mr. Kfir Zilberman the Company formed a subsidiary in Delaware, of which
the Company holds
10
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL (Cont.)
| A. | (Cont.) |
Eventer:
As of June 30, 2021, the Company holds
approximately
Gix Internet Ltd.:
As
of June 30, 2021, the Company own
Charging Robotics:
On February 19, 2021, the Company entered into the Joint Venture Agreement, with Amir Zaid and Weijian Zhou and the Company’s wholly-owned subsidiary Charging Robotics, under which the Company formed a joint venture, under the name Revoltz. For additional information, see note 4.G.
Interest in other entities:
As of June 30, 2021, the Company also
owns
11
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL (Cont.)
| A. | (Cont.) |
On June 3, 2019, the Company entered
into a Licensing and Sale Agreement with Shanghai Golden Grand-Medical Instruments Ltd. (hereinafter - “Golden Grand”) for
the know-how licensing and sale of goods relating to MUSE systems in China, Hong Kong, Taiwan and Macao. Under the agreement, the Company
committed to provide a license, training services and goods to Golden Grand in consideration for USD
The Company’s shares were listed on the Tel Aviv Stock Exchange Ltd. (hereinafter - “TASE”) and since May 20, 2015, the Company’s American Depository Shares (hereinafter – “ADSs”) evidenced by American Depositary Receipts (hereinafter – “ADRs”) are listed on the Nasdaq Capital Market. The Company’s depositary agent for the ADR program is The Bank of New York Mellon. Since July 2018, the Company’s Series C Warrants are traded on Nasdaq Capital Market. On January 25, 2021, the Company voluntarily delisted its shares from trading on the TASE. Following the delisting, the Company ADSs continue to trade on the Nasdaq and the Company continue to file public reports and make public disclosures in accordance with the rules and regulations of the SEC and Nasdaq.
During the period of six months ended June 30, 2021 the Company entered into several underwriting agreements with Aegis Capital Corp. (hereinafter – “Aegis”) For additional information, see note 8 (2).
12
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL (Cont.)
| B. | As of the approval date of these financial statements, the Company had cash and cash equivalent, which the Company anticipates will provide sufficient liquidity for more than a twelve-month period from the date of these financial statements. |
However, since inception, the Company’s activities have been funded mainly by its shareholders. Furthermore, in the recent years the Company has suffered recurring losses from operations, negative cash flows from operating activities, and has an accumulated deficit as of June 30, 2021. As such, the Company’s ability to continue operating may be dependent on several factors, amongst which is its ability to raise sufficient additional funding, which funding may not necessarily be available to the Company, obtained on terms favorable to the Company, or provide the Company with sufficient funds to meet its objectives.
| C. | The COVID-19 pandemic, including the efforts to combat it, has had and may continue to have a widespread effect on the Company’s business. In response to the pandemic, public health authorities and local and national governments, including Israel’s, have implemented measures that have and may continue to have an impact the Company’s business, including voluntary or mandatory quarantines, restrictions on travel and orders to limit the activities of non-essential workforce personnel. As of the date of this report, the COVID-19 (coronavirus) pandemic had made and continues to have a significant impact on global economic activity., with governments around the world, including Israel. Since the pandemic’s effect on the macroeconomic environment has yet to be fully determined and could continue for months or years, the Company is actively monitoring the pandemic and the Company is taking any necessary measures to respond to the situation in cooperation with the various stakeholders. |
In light of the evolving nature of the pandemic and the uncertainty it has produced around the world, the Company does not believe it is possible to precisely predict the pandemic’s cumulative and ultimate impact on the Company’s future business operations, liquidity, financial condition and results of operations. For example, travel restrictions have adversely affected the Company’s ability to timely achieve certain milestones included in the Company Agreement with Golden Grand and has delayed the recognition of revenues deriving therefrom. These travel restrictions have also impacted the Group sales and marketing efforts and those of the Company’s subsidiaries. In addition, a substantial portion of Eventer’s business relates to leisure event management, the scope of which was greatly reduced as a result of governmental policies and measures tailored to address to spread of COVID-19. To the extent that these measures remain in place, Eventer’s business and result of operations could be harmed.
The extent of the impact of the pandemic on the Company’s business and financial results will depend largely on future developments, including the duration of the spread of the outbreak and any future “waves” of the outbreak, globally and specifically within Israel and the United States. In addition, the extent of the impact on capital and financial markets, foreign currencies exchange and governmental or regulatory orders that impact the Company’s business are highly uncertain and cannot be predicted. If economic conditions generally or in the industries in which the Company operate specifically, worsen from present levels, the Company results of operations could be adversely affected and the Company financial condition will depend on future developments that are highly uncertain and cannot be predicted, including new government actions or restrictions, new information that may emerge concerning the severity, longevity and impact of the COVID-19 pandemic on economic activity.
Additionally, concerns over the economic impact of the pandemic have caused extreme volatility in financial markets, which has adversely impacted and may continue to adversely impact the Company share price and the Company ability to access capital markets. To the extent the pandemic or any worsening of the global business and economic environment as a result adversely affects the Company business and financial results, it may also have the effect of heightening many of the other risks in the company’s reports.
13
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 - BASIS FOR PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| A. | The Group’s interim condensed consolidated financial information as of June 30, 2021, and for the six month interim periods ended on that date (hereinafter - “The Interim Financial Information”) has been prepared in accordance with the guidance of IAS 34 ‘Interim Financial Reporting’. |
The Interim Financial Information has been prepared on the basis of the accounting policies adopted in the Group’s audited consolidated financial statements for the year ended December 31, 2020 (“Annual Financial Statements”), which were prepared in accordance with International Financial Reporting Standards which are standards and interpretations thereto issued by the International Accounting Standard Board (hereinafter “IFRS”). This Interim Financial Information should be read in conjunction with the 2020 Annual Financial Statements and notes thereto issued on May 14, 2021.
The Interim Financial Information is unaudited, does not constitute statutory accounts and does not contain all the information and footnotes required by accounting principles generally accepted under International Financial Reporting Standards for annual financial statements.
| B. | Estimates: |
The preparation of the interim condensed consolidated financial statements requires the Group’s management to exercise judgment and also requires use of accounting estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
In the preparation of these interim condensed consolidated financial statements, the significant judgments exercised by management in the application of the Group’s accounting policies and the uncertainty involved in the key sources of those estimates were identical to the ones used in the Group’s 2020 Annual Financial Statements.
NOTE 3 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
Estimates of fair value:
Financial assets:
Level 1 and level 2 financial instruments:
Fair value measurements based on Quoted prices (unadjusted) in active markets (level 1):
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Level 1 | ||||||||
| USD in thousands | ||||||||
| Investment in SAFO | ||||||||
| Elbit Imaging | ||||||||
| Automax (Matomy) | ||||||||
14
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont.)
The following table presents the Level 1 financial assets roll-forward:
| Investment in SAFO | Elbit Imaging | Automax (Matomy) | Total | |||||||||||||
| USD in thousands | ||||||||||||||||
| Balance as of January 1, 2021 | ||||||||||||||||
| Initial recognition at fair value upon dilution Equity investment | ||||||||||||||||
| Additional investment | ||||||||||||||||
| Currency translation | ( | ) | ( | ) | ||||||||||||
| Revaluation | ( | ) | ||||||||||||||
| Balance as of June 30, 2021 | ||||||||||||||||
Level 3 financial instruments:
The Company has several financial assets measured at fair value through profit or loss, which meet the level 3 criteria.
The following table presents the level 3 fair value financial assets:
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Level 3 | ||||||||
| USD in thousands | ||||||||
| Gix Media’s shares (see note 4.D) | ||||||||
| Gix warrants | ||||||||
| Conversion right (see note 4.D) | ||||||||
| Anti-dilution -Gix | ||||||||
| ScoutCam warrants | ||||||||
| Maris investment | ||||||||
| SAFO warrants | ||||||||
Valuation processes of the financial assets:
Gix warrants - the Company used the Black-Scholes
model, using the following principal assumptions: share price: NIS 1.62 expected volatility of
Anti-dilution feature - the Company used the Black-Scholes
model, using the following principal assumptions: share price: NIS 1.62,
ScoutCam warrants- the Company used the Black-Scholes
model, using the following principal assumptions: share price: USD 1, expected volatility of
Maris investment - on April 12, 2021 the Company invested in Maris-Tech Ltd. (hereinafter – “Maris”) , Since Maris is a private company, the assumption is that the cost of the investment in the offering represents the fair value of the investment.
SAFO warrants- the Company used the Black-Scholes
model, using the following principal assumptions: share price: USD
15
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont.)
The following table presents the Level 3 financial assets roll-forward:
| Gix Media’s shares | Gix Warrants | ScoutCam warrants | Maris investment | Conversion Right | Anti-dilution | SAFO Warrants | Total | |||||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||||||
| Balance as of January 1, 2021 | ||||||||||||||||||||||||||||||||
| Initial recognition at fair value upon deconsolidation | ||||||||||||||||||||||||||||||||
| Exercise of warrants | ( | ) | ( | ) | ||||||||||||||||||||||||||||
| Changes in fair value recognized through profit or loss | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
| Exercise of conversion right )see note 4) | ( | ) | - | ( | ) | ( | ) | |||||||||||||||||||||||||
| Balance as of June 30, 2021 | ||||||||||||||||||||||||||||||||
| Gix Media’s shares | Gix Warrants | Reverse earn out | Conversion Right | Anti-dilution | SAFO Warrants | Total | ||||||||||||||||||||||
| USD in thousands | ||||||||||||||||||||||||||||
| Balance as of January 1, 2020 | ||||||||||||||||||||||||||||
| Initial recognition of financial asset | ||||||||||||||||||||||||||||
| Changes in fair value recognized through profit or loss | ( | ) | ( | ) | ||||||||||||||||||||||||
| Balance as of December 31, 2020 | ||||||||||||||||||||||||||||
16
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Cont.)
Financial liabilities:
Level 1 financial instruments:
As of June 30, 2021, and December 31, 2020, the Group has financial liability measured at level 1 – Warrants C.
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.
Level 3 financial instruments:
The Company has several financial liabilities measured at fair value through profit or loss, which meet the level 3 criteria - warrants issued to investors.
The following table presents the financial liabilities that were measured at fair value:
| June 30 | December 31 | |||||||||||||||||||||||
| 2021 | 2020 | |||||||||||||||||||||||
| Level 1 | Level 3 | Total | Level 1 | Level 3 | Total | |||||||||||||||||||
| USD in thousands | USD in thousands | |||||||||||||||||||||||
| Financial liabilities at fair value through profit or loss - | ||||||||||||||||||||||||
| Fair value of warrants | ||||||||||||||||||||||||
NOTE 4 - INTEREST IN OTHER ENTITIES:
A.1 This table summarize the total investment according to the equity method as of June 30, 2021:
| June 30, 2021 | ||||
| USD in thousands | ||||
| ScoutCam (see also note 4.A) | ||||
| Gix Internet (see also note 4.D) | ||||
| Polyrizon (see also note 4.F) | ||||
| Revoltz (see also note 4.G) | ||||
| Total | ||||
| A. | ScoutCam Inc. |
On January 3, 2019, the Company established a wholly owned subsidiary in Israel under the name ScoutCam Ltd., or ScoutCam. ScoutCam was incorporated as part of a reorganization of the Company intended to distinguish the Company’s miniaturized imaging business, or the micro ScoutCam™ portfolio, from the other operations of the Company and to enable the Company to form a separate business unit with dedicated resources focused on the promotion of such technology.
In addition, ScoutCam used the technological platform it developed for the purpose of additional special systems and products that are suitable for both medical and industrial applications.
On September 16, 2019, the Company
entered into a Securities Exchange Agreement (the “Exchange Agreement”), with ScoutCam Inc, formerly known as Intellisense
Solutions Inc. , pursuant to which the Company assigned, transferred and delivered
17
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| A. | ScoutCam Inc. (Cont.) |
The Closing occurred on December
30, 2019 (the “Closing Date”). Pursuant to the Exchange Agreement, Intellisense issued to Medigus
Also, on the Closing Date, ScoutCam
Inc. issued to its’ investors
Each Warrant A is exercisable into
one share of common stock of ScoutCam Inc. at an exercise price of USD
On
March 3, 2020, ScoutCam issued in a private issuance a total of
Each
unit was comprised of two shares of common stock par value USD
Each
Warrant A is exercisable into one share of common stock of ScoutCam Inc.’s at an exercise price of USD
Each
Warrant B is exercisable into one share of common stock of ScoutCam Inc’s at an exercise price of USD
The
immediate proceeds (gross) from the issuance of all securities offered amounted to approximately USD
On May 18, 2020, ScoutCam issued in
a private issuance a total of
Each unit was comprised of two shares of common stock par value USD 0.001 per share, one Warrant A (defined below) and two Warrants B (defined below).
Each Warrant A is exercisable into
one share of common stock of ScoutCam’s at an exercise price of USD
Each Warrant B is exercisable into
one share of common stock of ScoutCam’s at an exercise price of USD
The immediate gross proceeds from
the issuance of all securities offered amounted to approximately USD
18
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| A. | ScoutCam Inc. (Cont.) |
On
January 20, 2021, ScoutCam Inc.’s board of directors approved an increase of the authorized share capital of ScoutCam Inc., by
an additional
On March 22, 2021, ScoutCam Inc.
undertook to issue to certain investors (the “Investors”)
On June 30, 2021, Medigus exercise
all of its
As of June 30, 2021 the Company owned
approximately
Therefore, the Company diluted the
holding and deconsolidate ScoutCam Inc . since April 2021 and treated the investment in equity method. The profit recorded on books related
to the de-consolidation sum up to USD
ScoutCam purchase price allocation summary:
March 29, thousands | ||||
| Cash consideration | ||||
| Medigus Share in company Equity | ||||
| Excess to Allocation | ||||
| Excess purchase price to allocate to technology | ||||
| Deferred tax | ( | ) | ||
| Goodwill | ||||
Reconciliation to carrying amounts for ScoutCam.:
| USD in thousands | ||||
| Equity attributable to ScoutCam shareholders’ as of June 30, 2021 | ||||
| Groups share in % | % | |||
| Group share | ||||
| Fair value adjustments | ||||
| Carrying amount | ||||
19
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| A. | ScoutCam Inc. (Cont.) |
Investment movement for:
| Three
months ended June 30, 2021 | ||||
| USD
in thousands | ||||
| Investment in Fair value as of March 29, 2021 | ||||
| The Company's share in ScountCam's Loss for the three month ended June 30, 2021 | ( | ) | ||
| Warrants exercise | ||||
| Equity attributable to ScoutCam shareholders’ as of June 30, 2021 | ||||
Summarized balance sheet:
| June 30, 2021 | December 31, 2020 | |||||||
| USD in thousands | ||||||||
| Currents assets | ||||||||
| Cash and cash equivalents | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Non-current assets | ||||||||
| Total assets | ||||||||
| Total current liabilities | ||||||||
| Total non-current liabilities | ||||||||
| Total liabilities | ||||||||
| Net assets | ||||||||
Summarized statement of comprehensive income:
| Three months ended March 31, 2021 |
Six months ended June 30, 2020 |
|||||||
| USD in thousands | ||||||||
| Revenue | ||||||||
| Gross Loss | ( |
) | ( |
) | ||||
| Operating Loss | ( |
) | ( |
) | ||||
| Net Loss for the period | ( |
) | ( |
) | ||||
Summarized statement of comprehensive income:
| Three
months ended June 30, 2021 | ||||
| USD
in thousands | ||||
| Revenue | ||||
| Gross Loss | ( | ) | ||
| Operating Loss | ( | ) | ||
| Net Loss for the period | ( | ) | ||
20
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| B. | Eventer Technologies Ltd.: |
On October 14, 2020, the Company signed
a share purchase agreement and a revolving loan agreement with Eventer Technologies Ltd. (hereinafter – “Eventer”),
a technology company engaged in the development of unique tools for automatic creation, management, promotion, and billing of events and
ticketing sales.
In addition, the Company entered into
the Loan Agreement, under which the Company committed to lend up to USD
On October 14, 2020, the Company entered
the Exchange Agreement with Eventer’s shareholders, pursuant to which, during the period commencing on the second anniversary of
the Exchange Agreement and ending
21
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| B. | Eventer Technologies Ltd.: (Cont.) |
On April 8, 2021,
The following table presents the purchase price allocation of Eventer as of October 15, 2020:
| 15
October, 2020 | ||||
| USD
in thousands | ||||
| Cash consideration invested in Eventer | ||||
| Fair value of earn-out | ||||
| Difference between fair value and par value of loan extended to Eventer | ||||
| Total consideration | ||||
| Value acquired: | ||||
| Fair value of net tangible assets acquired | ||||
| Non-controlling interest | ( | ) | ||
| Total acquired | ||||
| Excess purchase price to allocate to technology and goodwill | ||||
Summarized balance sheet:
| June 30, 2021 | December 31, 2020 | |||||||
| USD in thousands (*) | ||||||||
| Current assets | ||||||||
| Current liabilities | ||||||||
| Current net assets | ||||||||
| Non-current assets | ||||||||
| Non-current liabilities | ||||||||
| Non-current net assets | ||||||||
| Net assets | ||||||||
| Accumulated non-controlling interests | ||||||||
22
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| B. | Eventer Technologies Ltd.: (Cont.) |
Summarized statement of comprehensive income:
| Six months ended in 30, June 2021 |
15.10- December 31, 2020 |
|||||||
| USD in thousands (**) | ||||||||
| Revenue | ||||||||
| Net loss for the period | ( |
) | ( |
) | ||||
| Net loss attributable to the NCI | ( |
) | ( |
) | ||||
| (*) |
| (**) |
Summarized statement of cash flows:
| Six months ended in 30, June 2021 | Year ended December 31, 2020 | |||||||
| USD in thousands (**) | ||||||||
| Cash flow used in operating activities | ( | ) | ||||||
| Cash flow used in investing activities | ( | ) | ||||||
| Cash flow from financing activities | ||||||||
| Net increase in cash and cash equivalents | ||||||||
| (*) | translated at the closing rate at the date of that balance sheet. |
| (**) | translated at average exchange rates for the period. |
| C. | Jeff’s Brands Ltd.: |
On October 8, 2020, the Company entered
into a common stock purchase agreement with Smart Repair Pro, Inc. (hereinafter - “Pro”), Purex, Corp. (hereinafter - “Purex”),
and their respective stockholders (the “Purex Purchase Agreement”). Pro and Purex both are in the e-Commerce field and operate
online stores for the sale of various consumer products on the Amazon online marketplace. Pursuant to the Purex Purchase Agreement,
23
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| C. | Jeff’s Brands Ltd.: (Cont.) |
In addition, the companies’
current shareholders are entitled to additional milestone issuances of up to an aggregate USD
Subsequently, according to the terms
of the Purex Purchase Agreement, The Company entered into a loan and pledge agreement, effective January 5, 2021 with its majority owned
subsidiaries Pro and Purex. Pursuant to this loan and pledge agreement, the Company extended a USD
On February
2, 2021, the Company entered into a loan and pledge agreement, effective February 2, 2021, and amended on February 5, 2021, or the Pro
Loan and Pledge Agreement, with the Company majority owned subsidiary Pro and its other stockholder, to finance Pro’s additional
purchases of three new brands on the Amazon online marketplace. Pursuant to the Pro Loan and Pledge Agreement, the Company extended a
USD
Similarly, the Company concluded the stated interest is materially lower than its market price. Accordingly, the difference between the fair value and face value of the loan attributable to the company was recorded as deemed contribution by the non-controlling interests to Jeff Brands.
On May 16, 2021, the Company entered
into a stock exchange and plan of restructuring agreement with Victor Hacmon, the other shareholder of Pro and Purex, and Jeffs’
Brands Ltd. (hereinafter - “Jeffs’ Brands”), a newly incorporated entity. Pursuant to which, among other things, the
Company and Victor Hacmon transferred all holdings in Pro and Purex to Jeffs’ Brands, in return for a consideration of Jeffs’
Brands ordinary shares issued respectively. As a result, Pro and Purex became wholly-owned subsidiaries of Jeffs’ Brands. The share
exchange transaction was accounted in a manner similar to Pooling-of-Interests ("As Pooling"). To date, the Company invested
approximately USD
24
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| C. | Jeff’s Brands Ltd.: (Cont.) |
The table set forth below summarizes the estimates of the fair value of assets acquired and liabilities assumed. In addition, the following table summarizes the allocation of the preliminary purchase price as of the acquisition date:
| January
4, 2021 | ||||
| USD
in thousands | ||||
| Cash consideration invested in Jeff Brands | ||||
| Non- cash consideration invested in Jeff Brands | ||||
| Difference between fair value and par value of loan extended to Jeff Brands | ||||
| Total consideration | ||||
| Less: | ||||
| Fair value of net assets acquired | ||||
| Non-controlling interest | ( | ) | ||
| Total acquired | ||||
| Goodwill | ||||
Summarized balance sheet:
| June 30, 2021 |
||||
| USD in thousands(*) |
||||
| Current assets | ||||
| Current liabilities | ||||
| Current net assets | ||||
| Non-current assets | ||||
| Non-current liabilities | ||||
| Non-current net assets | ||||
| Net assets | ||||
| Accumulated non-controlling interests | ||||
25
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| C. | Jeff’s Brands Ltd.: (Cont.) |
Summarized statement of comprehensive income:
| January
4, 2021- June 30, 2021 | ||||
| USD
in thousands(**) | ||||
| Revenues | ||||
| Loss for the period | ( | ) | ||
| Net loss attributable to the NCI | ( | ) | ||
Summarized statement of cash flows:
| January 4, 2021- June 30, 2021 | ||||
| USD in thousands(**) | ||||
| Cash flow used in operating activities | ( | ) | ||
| Cash flow used in investing activities | ( | ) | ||
| Cash flow from financing activities | ||||
| Net increase in cash and cash equivalents | ( | ) | ||
| (*) | translated at the closing rate at the date of that balance sheet. |
| (**) |
| D. | Gix Internet Ltd: |
On June 19, 2019, the Company signed
an agreement with Gix Internet Ltd(formerly known as Algomizer Ltd., hereinafter - “Gix Internet”) and its then wholly-owned
subsidiary Gix Media Ltd. (formerly known as Linkury Ltd.) ., hereinafter “Gix Media”) (collectively the “Gix Group”),
for an investment of approximately USD
| a. | Medigus received |
| b. | Medigus received |
| c. | Medigus received |
26
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| D. | Gix Internet Ltd: (Cont.) |
| d. |
| e. | Medigus is also entitled, for a period of three years following the closing of the investment, to convert any and all of its Gix Media’s shares into Gix shares with a |
| f. | In the event, during the three year period following the closing of the investment, Gix shall issue, or under take to issue ordinary shares with a price per share or exercise per share lower NIS 4.15 (the Reduced Per Share Purchase Price”), Gix Internet shall be allocated immediately with such amounts of additional ordinary shares (and the Gix Warrant shall be adjusted accordingly) equal to the difference of (x) the amount of ordinary shares actually received by the Company under the Investment Agreement, and (y) the amount which Medigus would have otherwise received should the Reduced Per Share Purchase Price was applied (“Anti-dilution”). |
In consideration of the Investment Agreement as described above Medigus:
| a. | Paid NIS |
| b. | Issued to Gix Internet |
| c. | Issued to Gix Internet |
On
September 3, 2019, the Company acquired
On April 6, 2021, the Company exercised
part of its right to convert Gix Media conversion shares and were issued by Gix Internet with additional
On June 28, 2021, the Company exercised
all of its rights to convert Gix Media’s shares to Gix Internet shares and was issued
As of June 30, 2021, the Company owns
27
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| D. | Gix Internet Ltd: (Cont.) |
| Name of entity | Place of business/country of incorporation | %
of ownership interest as of June 30, 2021 | Nature of relationship | Measurement method | Quoted
fair value as of June 30, 2021 | Carrying
amount as of June 30, 2021 | ||||||||||||||||
| USD in thousands | ||||||||||||||||||||||
Gix purchase price allocation summary:
| USD in thousands | ||||
| Cash consideration | ||||
| Adjusted Company’s Equity | ||||
| Excess to Allocation | ||||
| Excess purchase price to allocate to Customer relationship | ||||
| Deferred tax | ( | ) | ||
| Excess purchase price to allocate to technology | ||||
| Deferred tax | ( | ) | ||
| Goodwill | ||||
Reconciliation to carrying amounts for Gix Internet.:
| Six months ended June 30, 2021 | ||||
| USD in thousands | ||||
| Reconciliation to carrying amounts: | ||||
| Equity attributable to Gix shareholders’ as of June 30, 2021 | ||||
| Groups share in % | % | |||
| Group share | ||||
| Fair value adjustments | ||||
| Exchange rate adjustments | ||||
| Carrying amount | ||||
Reconciliation to carrying amounts for Gix Internet.:
| Six months ended June 30, 2021 | ||||
| USD | ||||
| Investment according to eqity method at the beginning of the period | ||||
| Purchase of Gix ordinary shares (exercise of Conversion Right) | ||||
| Increase in capital reverse | ||||
| Currency translation adjustments | ( | ) | ||
| Other Reserve | ( | ) | ||
| Share of net profit of associate accounted for using the equity method | ( | ) | ||
| Investment according to equity method at the end of the period | ||||
28
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| D. | Gix Internet Ltd: (Cont.) |
Summarized balance sheet:
| June 30, 2021 | December 31, 2020 | |||||||
| USD in thousands (*) | ||||||||
| Currents assets | ||||||||
| Cash and cash equivalents | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Non-current assets | ||||||||
| Total Assets | ||||||||
| Current liabilities | ||||||||
| Financial liabilities (excluding trade payables) | ||||||||
| Other current liabilities | ||||||||
| Total current liabilities | ||||||||
| Non-current liabilities | ||||||||
| Financial liabilities (excluding lease liability) | ||||||||
| Lease liability | ||||||||
| Other non-current liabilities | ||||||||
| Total non-current liabilities | ||||||||
| Total Liabilities | ||||||||
| Net assets | ||||||||
| Equity attributable to Gix shareholders | ||||||||
| Non-controlling interests | ||||||||
Summarized statement of comprehensive income:
| Six
months ended June 30, 2021 | Six
months ended June 30, 2020 | |||||||
| USD in thousands (**) | ||||||||
| Revenue | ||||||||
| Gross profit | ||||||||
| Profit (loss for the period) | ( | ) | ||||||
| Other comprehensive loss | ||||||||
| Total comprehensive profit (loss) | ( | ) | ||||||
29
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| D. | Gix Internet Ltd: (Cont.) |
Summarized statement of comprehensive income: (Cont.)
| Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||
| USD in thousands (**) | ||||||||
| Cash flow used in operating activities | ||||||||
| Cash flow used in investing activities | ( | ) | ||||||
| Cash flow from financing activities | ( | ) | ( | ) | ||||
| Net increase in cash and cash equivalents | ( | ) | ( | ) | ||||
| (*) | translated at the closing rate at the date of that balance sheet |
| (**) | translated at average exchange rates for the period |
| E. | Automax Ltd. (formerly known as Matomy Ltd.): |
Matomy together with its subsidiaries offered and provided a portfolio of proprietary programmatic data-driven platforms focusing on two core activities of domain monetization and mobile digital advertising to advertisers, advertising agencies, apps developers and domain owners, primarily in the United States and Europe. In the period spanning from mid-2017 through December 2019, Matomy ceased all of its activities.
On February 18, 2020, the Company purchased
Upon
completion of acquisition of the investment in Matomy, the difference between the cost of the investment and the Company’s share
of the net fair value of the assets and liabilities of Matomy amounted to USD
On
September 29, 2020,
30
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| E. | Automax Ltd. (formerly known as Matomy Ltd.): (Cont.) |
Following the Company’s decision
to sell up to
On January 19, 2021 and March 9, 2021,
the Company sold
Reconciliation to carrying amounts for Automax (formerly known as Matomy).
| Six months ended June 30, 2021 | ||||
| USD in thousands | ||||
| Investment as of January 01, 2021 Equity method | ||||
| Held for sale asset | ||||
| Total as of January 01, 2021 | ||||
Sale of held for sale asset | ( | ) | ||
| Share of net profit of associate accounted for using the equity method | ||||
| Total amount as of March 9, 2021 | ||||
| Eliminate investment held for sale and equity as a result of transition to fair value | ( | ) | ||
| Fair value of the investment at the day of the transition | ||||
| Securities revaluation | ||||
| End of the period in Fair value | ||||
31
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| F. | Polyrizon Ltd – Protective Biological Gels: |
Polyrizon Ltd. (hereinafter – “Polyrizon”) is a private company engaged in developing biological gels designed to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities.
In July 2020, the Company entered into
an ordinary share purchase agreement with Polyrizon, pursuant to which the Company purchased
In addition, the Company entered
into an exclusive reseller agreement with Polyrizon. As part of the reseller agreement, the Company received an exclusive global
license to promote, market, and resell the Polyrizon products, focusing on a unique Biogel to protect from the COVID-19 virus. The
term of the license is for
32
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| F. | Polyrizon Ltd – Protective Biological Gels: (Cont.) |
On March 9, 2021,
Following share purchase agreement Polyrizon
signed with its current shareholdersto raise an amount of USD
The following table provides details regarding the Purchase Price Allocation of Polyrizon as of July 15, 2020:
| July
15, 2020 | ||||
| USD
in thousands (*) | ||||
| Current assets | ||||
| Cash and cash equivalents | ||||
| Loan | ||||
| Allocation | ||||
| Consideration for other instruments *** | ||||
| IP | ||||
| Shareholder loan | ( | ) | ||
| Total allocated | ||||
| (*) |
| (***) | Fair value of the Option, to invest an additional amount of up to USD |
The following table presents the Polyrizon equity investment account activity:
| Six months ended on June 30, 2021 | ||||
| USD in thousands | ||||
| Investment as of January 01, 2021 Equity method | ||||
| An addition investment | ||||
| Revaluation of the Option, to invest an additional amount and Shareholder loan | ( | ) | ||
| Profit for the period – through share of other comprehensive income of associates accounted for using the equity method | ( | ) | ||
| Depreciation of technology | ( | ) | ||
| Balance as of the end of the period | ||||
33
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| F. | Polyrizon Ltd – Protective Biological Gels: (Cont.) |
The following table provides details regarding the Purchase Price Allocation of Polyrizon as of March 9, 2021:
| March
9, 2021 | ||||
| USD
in thousands (*) | ||||
| Current assets | ||||
| Cash and cash equivalents | ||||
| Acquired Equity | ||||
| Excess to allocate | ||||
| Allocation | ||||
| IP | ||||
| Goodwill | ||||
| Total allocated | ||||
| (*) | translated at the closing rate at the date of that balance sheet |
| G. | Charging Robotics Ltd.: |
On January 7, 2021,
On February 19, 2021, the Company entered into the Joint Venture Agreement, with Mr. Amir Zaid and Mr. Weijian Zhou (the founders of Emuze Ltd., a privately held company that designs and develops electric mobility micro vehicles), and Charging Robotics (the “Joint Venture Agreement”), under which the Company formed a joint venture, under the name Revoltz, to develop and commercialize three modular electric vehicle (hereinafter – “EV”) micro mobility vehicles for urban individual use and “last mile” cargo delivery.
34
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 - INTEREST IN OTHER ENTITIES: (Cont.)
| G. | Charging Robotics Ltd.: (Cont.) |
Under the terms of the Joint Venture Agreement,
In addition, within twelve (12) months
following the completion of the second tranche (but in any event not later than December 31, 2022), the Company shall be entitled to invest
an additional amount of USD
The joint venture’s intended focus is to develop unique EVs that have the ability to last a full working day within a single charge suitable for heavy-duty and rigid operations and provide tailored mission-specific designs as well as Hop on -Hop off modes, off-road versions along with a low cost of operation.
On June 17, 2021, Charging Robotics signed a definitive distribution agreement with Automax, (the “Distribution Agreement”). The Distribution Agreement is for an exclusive distribution of Charging Robotics’ wireless robotic charging pad in Israel and Greece for a period of five years, with an extension option for an additional five years. Automax will market the wireless robotic charging pad for electric vehicles, once fully developed by Charging Robotics, and will be responsible for obtaining all the necessary licenses, permits and approvals for the import, marketing and distribution of such product.
As part of the Distribution Agreement,
35
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5 - INVENTORY
Composed as follows:
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Unaudited | Audited | |||||||
| USD in thousands | ||||||||
| Current assets: | ||||||||
| Raw materials and supplies | ||||||||
| Finished goods | ||||||||
| Provision for impairment | ( | ) | ||||||
As of June 30, 2021, the inventory is derived from Jeff’s Brands.
As of December 31, 2020, the inventory is derived from ScoutCam.
NOTE 6 - INTANGIBLE ASSETS
| A. | Details of the Company’s Intangible assets: |
Total intangible assets consisted of the following:
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Unaudited | Audited | |||||||
| USD in thousands | ||||||||
| Goodwill -Eventer– see note 4.B | ||||||||
| Goodwill – Jeff’s Brands - see note 4.C | ||||||||
| Technology – Eventer – see note 4. B, Amortization -5 years | ||||||||
| Software License – Eventer– see note 4. B | ||||||||
| Patent – Charging Robotics– see note 4. G | ||||||||
| Brand name – Jeff’s Brands – see note 4.C Amortization -10 years | ||||||||
| Amazon stores- Jeff’s Brands– see note 4.C, Amortization -10 years | ||||||||
NOTE 7 - ACCRUED EXPENSES AND OTHER LIABILITIES
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Unaudited | Audited | |||||||
| USD in thousands | ||||||||
| Employees and related institutions | ||||||||
| Accrued expenses | ||||||||
| Other payables | ||||||||
36
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 - EQUITY
Medigus Ltd.:
| (1) | a) | On May 22, 2020, the Company closed a firm commitment public offering, pursuant to which the Company issued a total of |
The
immediate gross and net of issuance expenses proceeds from such securities issuance aggregated to approximately USD
Prefunded warrants may be exercised via a cashless exercise mechanism as defined in the agreement, whereby the number of shares the value of which equals the exercise premium in cash will be deducted from the number of shares to be issued upon exercise of the warrant.
During second quarter of 2020,
During the third quarter of 2020,
Until the end of the third quarter, all the prefunded warrants were exercised.
On
July 9, 2020, the Company’s shareholders approved an increase of the authorized share capital of the Company by an additional NIS
| b) | During second quarter of 2020, |
| c) | On May 18, 2020, board of directors of the Company authorized the issuance of |
| d) | On June 1, 2020, board of directors of the Company authorized the issuance of an aggregated amount of |
37
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 - EQUITY
Medigus Ltd.: (Cont.)
| (2) | Share offering to the public and existing shareholders: |
On
January 11, 2021,
On February 12, 2021, following the
approval of an extraordinary general meeting of the Company shareholders held on February 12, 2021, the Company amended its articles of
association to eliminate the par value of its ordinary shares, such that the authorized share capital of the Company following the amendment
consists of
On February 25, 2021,
| (3) | Share-based compensation to employees and to directors: |
In
May and June 2021, the company board of directors approved the grant of
NOTE 9 - REVENUES
| A. | Revenues by product: |
| Six months ended | Year ended | |||||||||||
| June 30, | December 31, | |||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Miniature camera and related equipment | ||||||||||||
| Products | ||||||||||||
| Revenues from commissions | ||||||||||||
| Total | ||||||||||||
38
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9 - REVENUES (Cont.)
| B. | Major customers: |
Set
forth below is a breakdown of Company’s revenue by major customers (major customer –revenues from these customers constitute
at least
| Six months ended | Year ended | |||||||||||
| June 30, | December 31, | |||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| USD in thousands | ||||||||||||
| Customer A | ||||||||||||
| Customer B | ||||||||||||
| Customer C | ||||||||||||
| Customer D | ||||||||||||
NOTE 10 - TRANSACTIONS WITH RELATED PARTIES:
“Related Parties” – As defined in IAS 24 – ‘Related Party Disclosures” (hereinafter- “IAS 24”)
Key management personnel of the Company - included together with other entities, in the said definition of “Related Parties” mentioned in IAS 24, include some members of senior management.
| A. | Transactions with related parties: |
| Six months ended | Year ended | |||||||||||
| June 30 | December 31 | |||||||||||
| 2021 | 2020 | 2020 | ||||||||||
| Unaudited | Audited | |||||||||||
| USD in thousands | ||||||||||||
| Payroll and related expenses to related parties employed by the Company* | ||||||||||||
| Compensation to directors ** | ||||||||||||
| Consultant services*** | ||||||||||||
| Interest and discounting of loans from Jeff’s Brands related parties **** | ||||||||||||
| Revenues – deduct of commission of Eventer from related parties | ( | ) | ||||||||||
| G&A expenses of Eventer with related parties | ||||||||||||
| * |
| ** |
| *** |
| **** |
39
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10 - TRANSACTIONS WITH RELATED PARTIES: (Cont.)
| A. | Transactions with related parties: (Cont.) |
Indemnification, exemption and insurance for directors and officers of the Company:
| a. | The Company provides its directors and officers with an obligation for indemnification and exemption. |
| b. | The Group maintains an active Directors and Officers’ insurance
policy. The annual premium of the current policy was USD |
| B. | Balances with related parties: |
(1) Current Assets:
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Unaudited | Audited | |||||||
| USD in thousands | ||||||||
| Related party prepaid expense - media Space from Keshet (a related party of eventer) see note 4. B. | ||||||||
| Other receivables (a related party of eventer and Jeff Brands) | ||||||||
| (2) | Current Liabilities: |
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Unaudited | Audited | |||||||
| USD in thousands | ||||||||
| Compensation to key management personnel | ||||||||
| Related party liability relating to license to use software from Screenz cross media Ltd (a related party of Eventer)- see note 4. B | ||||||||
| Current Liabilities of Jeff’s Brands to related parties | ||||||||
| Other Accrued expenses to related parties of Eventer | ||||||||
| (3) | Loans: |
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Unaudited | Audited | |||||||
| USD in thousands | ||||||||
| Current Liabilities of Long Term Loans of Jeff’s Brands from related parties (*) | ||||||||
| Long Term Loans of Jeff’s Brands from related parties (*) | ||||||||
| * |
40
MEDIGUS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11 - SUBSEQUENT EVENTS:
On July 19, 2021, the Company announced it has signed a non-binding letter of intent to purchase a controlling interest in a Business-to-Business (B2B) and Business-to-Consumer (B2C) electronics distributor (the “Target Company”) with several outlets in Israel and a growing e-commerce operation.
According
to the LOI, the Company will hold
On July 21, 2021, the Company’s
board of directors authorized the Company to take actions to promote a USD
In accordance with the share purchase
agreement Polyrizon signed with its current shareholders to raise a total amount of USD
On August 17, the Company’s subsidiary,
Jeffs’ Brands Ltd signed a non-binding Letter of Intent to acquire
41
Exhibit 99.2
Medigus Ltd.
Operating and Financial Review as of June 30, 2021, and for the six months then ended
The information contained in this section should be read in conjunction with (1) our unaudited interim condensed consolidated financial statements as of June 30, 2021, and for the six months then ended and related notes included in this report and (2) our audited consolidated financial statements as of December 31, 2020, and for the year then ended and related notes, which are embedded within our 2020 Form 20-F filed with the Securities and Exchange Commission on May 14, 2021, or the annual report, and the other information contained in such annual report. Factors that could cause our actual results in the future to differ from our expectations or projections include the risks and uncertainties relating to our business described in our annual report under the heading “Risk Factors”.
Overview
ScoutCam Inc
Our Israeli affiliate, ScoutCam Ltd. and its Nevada parent ScoutCam Inc. have developed a range of micro CMOS (complementary metal-oxide semiconductor) and CCD (charge-coupled device) video cameras, including micro ScoutCam™ 1.2. These innovative cameras are suitable for both medical and industrial applications. Based on its proprietary technology, ScoutCam designs and manufactures endoscopy and micro camera systems for partner companies.
Reorganization - ScoutCam Ltd. was formed in Israel on January 3, 2019, as a wholly owned subsidiary of Medigus, and commenced operations on March 1, 2019. ScoutCam was incorporated as part of the reorganization of Medigus, which was designed to distinguish ScoutCam’s miniaturized imaging business, or the micro ScoutCam™ portfolio, from Medigus’ other operations and to enable Medigus to form a separate business unit with dedicated resources focused on the promotion of such technology. In December 2019, Medigus and ScoutCam consummated an Amended and Restated Asset Transfer Agreement, effective March 1, 2019, which transferred and assigned certain assets and intellectual property rights related to its miniaturized imaging business. On March 1, 2019, 12 employees moved from Medigus to ScoutCam. The vast majority of these employees were from the Production and R&D departments. Therefore, their transfer caused large changes in the data of these two line items.
In addition, the Company has been engaged in the development, production and marketing of innovative surgical devices with direct visualization capabilities for the treatment of Gastroesophageal Reflux Disease, or GERD, a common ailment, which is predominantly treated by medical therapy (e.g. proton pump inhibitors) or in chronic cases, conventional open or laparoscopic surgery. The Company’s board of directors has determined to examine potential opportunities to sell our MUSE™ technology, or alternatively grant a license or licenses for the use of the MUSE™ technology.
Recent business events and key milestones in the development of our business, include the following:
ScoutCam Inc., Investment
On March 22, 2021, ScoutCam consummated a private placement of USD 20 million. Currently, the Company approximately owns 27.76% of the outstanding common stock of ScoutCam.
Polyrizon Ltd.
On July 15, 2020, the Company entered into a reseller agreement with Polyrizon Ltd. or Polyrizon, a private company engaged in the development of biological gels for the purpose of protecting patients against biological threats, and preventing intrusion of allergens and viruses through the upper airways and eye cavities. As part of the reseller agreement the Company received an exclusive global license to resell Polyrizon products, focusing on a unique Biogel for the protection from COVID-19.
Medigus Ltd.
Operating and Financial Review as of June 30, 2021, and for the six months then ended
The term of the license is four years, commencing upon receipt of sufficient FDA approvals for the lawful marketing and sale of the products globally. The Company shall have the right to purchase the Polyrizon products on a cost plus 15% basis for the purpose of reselling the products worldwide. In consideration for the license, Polyrizon shall be entitled to receive annual royalty payments equal to 10% of the Company’s annualized operating profit arising from the sale of the products.
In addition, on July 15, 2020, the Company and Polyrizon signed an ordinary share purchase agreement. The agreement includes investment of USD 10 thousand and a loan of USD 94 thousand that will be extended to Polyrizon. As such, the Company issued shares representing 19.9% of the issued and outstanding share capital of Polyrizon, on a fully diluted basis excluding outstanding deferred shares. In addition, the Company was granted the option, exercisable at its sole discretion, to invest an additional amount of USD 1 million, in consideration for shares of Polyrizon such that following the additional investment, the Company will own 51% of Polyrizon on a fully diluted basis excluding outstanding deferred shares. The option is exercisable until the earlier of April 23, 2023 or the consummation by Polyrizon of equity financing of at least USD 500 thousand based on a pre-money valuation of at least USD 10 million.
On March 9, 2021, the Company entered into a share purchase agreement, with Polyrizon and Mr. Raul Srugo, an existing shareholder of Polyrizon, for an additional investment of up to a total of USD 250 thousand in Polyrizon. Following an investment USD 120.5 thousand, ,, the Company held approximately 32.28% of Polyrizon shares on a fully diluted basis. On April 12, 2021, Polyrizon engaged in developing highly differentiated biological gels for the purpose of protecting patients against biological threats and external pathogens, commenced a pre-clinical trial to examine its bio-gel efficacy to protect against coronavirus.
Following share purchase agreement Polyrizon signed with its current shareholders to raise an amount of USD 800 thousands, the Company invested an amount of USD 297 thousands on September 2, 2021. Currently the company hold 34.74% on Polyrizon on a fully diluted basis.
Smart Repair Pro Inc. and Purex Corp
On October 8, 2020, the Company entered into purchase agreements with Pro, Purex, and their respective stockholders, to acquire 50.01% of each of Pro and Purex issued and outstanding share capital on a fully diluted basis and invested an aggregate amount of USD 1.250 million Pro and Purex, to issue up to USD 500 thousand worth of restricted ADSs to the current stockholders of such companies, subject to EBIDTA requires. In addition, the companies’ current shareholders are entitled to additional milestone issuances of up to an aggregate USD 750 thousand in restricted ADSs subject to the achievement by Pro and Purex of certain milestones throughout 2021. The transactions contemplated in the definitive agreements closed on January 4, 2021. Smart Repair Pro has completed processes with Amazon, which will allow it to open its stores for sale to consumers in the U.S., Australia, the United Kingdom, Germany and additional countries in Europe. On February 2, 2021, the Company entered into a loan and pledge agreement with our majority owned subsidiary Pro and its other stockholder, to finance Smart Repair Pro’s additional purchases of three new brands on the Amazon online marketplace. Pursuant to the Pro loan and pledge agreement, the Company extended a USD 3.76 million loan, with an annual interest of 4%, to be repaid on the fifth anniversary of the effective date. On March 2, 2021 Pro received all required regulatory approvals in Germany which enables it to launch sales of its brands at Amazon.de.
On May 16, 2021, the Company entered into a stock exchange and plan of restructuring agreement, with Victor Hamon, an existing shareholder of Pro and Purex, on one hand and Jeffs’ Brands Ltd. (hereinafter - “Jeffs’ Brands”) on the other hand, pursuant to which, among other things, each of the Company and Vicky Hacmon transferred to Jeff’s Brands, all of Purex’s and Pro’ shares of common stock held by him (the “Transferred Shares”), in consideration of such number of Jeff’s Brands ordinary shares issued to the each of the Company and Victor Hacmon, in such number determined on the basis of the mechanics prescribed thereunder, thus resulting in each of Pro and Purex becoming a wholly-owned subsidiary of Jeff’s Brands. To date, the Company has invested approximately USD 5.4 million in Jeff’s Brands and holds 50.3% of its shares.
On August 17, 2021, Jeff’s Brands signed a non-binding Letter of Intent to acquire 100% of the issued and outstanding share capital of a private company of branded consumer products, for an initial consideration of USD 6 million (to be paid in cash and equity) with a potential deferred consideration of up to additional USD 13.25 million, conditional upon future sales and profitability targets.
2
Medigus Ltd.
Operating and Financial Review as of June 30, 2021, and for the six months then ended
Eventer Technologies Ltd.
On October 14, 2020, the Company signed a share purchase agreement and a revolving loan agreement with Eventer Technologies Ltd. (hereinafter – “Eventer”). As part of the share purchase agreement and the revolving loan agreement, the Company invested USD 750 thousand and as of the completion of the investment held 50.1% of Eventer’s issued and outstanding share capital on a fully diluted basis. On November 30, 2020, Eventer signed a commercial licensing agreement with virtual entertainment and event technology company, Screenz Cross Media Ltd. On April 8, 2021, Eventer consummated a share purchase agreement at an aggregate amount of USD 2.25 million, out of which the Company invested USD 300 thousand and currently holds approximately 47.69% of Eventer shares on a fully diluted basis.
On June 3, 2021, Eventer submitted first public prospectus draft for the initial public offering (IPO) of Eventer’s shares on the Tel Aviv Stock Exchange Ltd.
Charging Robotics Ltd
On January 7, 2021, the Company entered into an agreement to purchase a provisional patent filed with the United States Patent and Trademark Office and know-how relating to wireless vehicle battery charging technology in consideration for USD 75 thousand. Furthermore, the Company entered a collaboration agreement with the seller, whereby the Company committed to invest USD 150 thousand in Charging Robotics.
On June 17, 2021, Charging Robotics signed a definitive distribution agreement with Automax, (the “Distribution Agreement”). The Distribution Agreement is for an exclusive distribution of Charging Robotics’ wireless robotic charging pad in Israel and Greece for a period of five years, with an extension option for an additional five years. Automax will market the wireless robotic charging pad for electric vehicles, once fully developed by Charging Robotics, and will be responsible for obtaining all the necessary licenses, permits and approvals for the import, marketing and distribution of such product.
As part of the Distribution Agreement, Automax will pay Charging Robotics a one-time payment of USD 50 thousand for its appointment as the exclusive distributor in Israel and Greece. Additionally, Automax will have a five year option to purchase up to 5% of Charging Robotics’ ordinary shares at a USD 30 million pre-money valuation on a fully diluted basis, upon completion of Charging Robotics’ first financing round. Furthermore, Automax will have an additional option, for five years, to purchase ordinary shares of up to 5% of the amount of shares that Charging Robotic will issue in any subsequent round, following the first financing round, at a price per share to be determined in any such round.
Revoltz Ltd
On February 19, 2021, the Company entered into a joint venture agreement, with Amir Zaid and Weijian Zhou and the Company’s wholly owned subsidiary, Charging Robotics, for the purpose of developing and commercializing three modular electric vehicle (EV) micro mobility vehicles for urban individual use and “last mile” cargo delivery. Pursuant to the terms of the joint venture agreement, the Company initially owns 19.99%, upon the consummation of an investment in a milestone financing of USD 1.350million in the aggregate, the Company will be entitled to own 50.01% of the issued and outstanding share capital of the joint venture.
Gix Internet Ltd.
Ad-Tech and Online Advertising - During 2020, the Company elected to convert all of its ordinary shares in Gix Media, into Gix Internet’s ordinary shares, as part of the Company’s investment agreement in Gix Internet. As of completion of the conversion rights the Company had, the Company owns approximately 33% of Gix Internet’s issued and outstanding share capital.
As of June 30, 2021, the Company also owns 5.1% of Elbit Imagining Ltd , 4.73% in Automax Ltd. (formerly known as Matomy Ltd.), 5., 2.09% in Maris-Tech Ltd. (hereinafter – “Maris”) and 0.8% in Safe Foods, Inc. (hereinafter – “SAFO”).
3
Medigus Ltd.
Operating and Financial Review as of June 30, 2021, and for the six months then ended
On January 11, 2021, the Company entered into an underwriting agreement with Aegis Capital Corp. (hereinafter – “Aegis”), pursuant to which the Company agreed to sell to Aegis, in a firm commitment public offering 3,659,735 American Depositary Shares, each representing 20 ordinary shares of the Company, of no par value for a public offering price of USD 2.30 per ADS. In addition, the Underwriter was granted an option to purchase additional 15 percent of the ADSs sold in the Offering solely to cover over-allotments, exercisable until the earlier of 30-days or the last day of trading of the Company’s ordinary shares on the Tel-Aviv Stock Exchange. Aegis exercised its over-allotment option in full to purchase an additional 549 thousand ADSs, the closing of which occurred on January 19, 2021.
On January 25, 2021, three months after the date of the Company announcement and in accordance with applicable Israeli law, the Company ordinary shares were delisted from TASE. Following the delisting, the Company ADSs continue to trade on the Nasdaq and the Company continue to file public reports and make public disclosures in accordance with the rules and regulations of the SEC and Nasdaq. The total gross proceeds of the offering to approximately USD 9.68 million
On February 12, 2021, following the approval of an extraordinary general meeting of the Company shareholders held on February 12, 2021, the Company amended its articles of association to eliminate the par value of its ordinary shares, such that the authorized share capital of the Company following the amendment consists of 1,000,000,000 ordinary shares of no par value.
On February 25, 2021, the Company entered into an underwriting agreement with Aegis Capital Corp., pursuant to which the Company agreed to sell to Aegis, in a firm commitment public offering 3,258,438 ADSs for a public offering price of USD 2.60 per ADS. In addition, the Underwriter was granted an option to purchase additional 15 percent of the ADSs sold in the Offering solely to cover over-allotments. Aegis exercised its over-allotment option in full to purchase an additional 489 thousand ADSs. The total gross proceeds of the offering to approximately USD 9.7 million.
Revenues
Revenues for the six months ended June 30, 2021, were USD 2,393 thousand, increase of USD 2,320 thousand, or 3,178%, compared to USD 73 thousand for the six months ended June 30, 2020.
The increase in revenues was primarily due to the consolidate revenues of Jeff Brands and Eventer.
Cost of revenues and inventory impairment
Cost of revenues for the six months ended June 30, 2021, was USD 1,789 thousand, an increase of USD 1,513 thousand, or 548%, compared to cost of revenues and inventory impairment of USD 276 thousand for the six months ended June 30, 2020. The increase in cost revenues was primarily due to the consolidation of Jeff Brands and Eventer.
Gross Loss
Gross Profit for the six months ended June 30, 2021, was USD 604 thousand, an increase of USD 807 thousand, compared to gross loss of USD 203 thousand for the six months ended June 30, 2020. The increase in gross profit was primarily due to the consolidation of our subsidiaries, Jeff’s Brands and Eventer.
Research and Development Expenses
Research and development expenses for the six months ended June 30, 2021, were USD 755 thousand, increase of USD 399 thousand, or 112%, compared to USD 356 thousand for the six months ended June 30, 2020. The increase was primarily due to the addition of Charging Robotics and Eventer to the group offset exit of ScoutCam from the Group at March 29, 2021.
4
Medigus Ltd.
Operating and Financial Review as of June 30, 2021, and for the six months then ended
Sales and Marketing Expenses
Sales and marketing expenses for the six months ended June 30, 2021, were USD 624 thousand, increase of USD 411 thousand, or 193%, compared to USD 213 thousand for the six months ended June 30, 2020. The increase was primarily due to the addition of Jeff Brands in the six month ended in June 30, 2021.
General and Administrative Expenses
General and administrative expenses for the six months ended June 30, 2021, were USD 4,417 thousand, an increase of USD 1,778 thousand, or 67%, compared to USD 2,639 thousand for the six months ended June 30, 2020. The majority of the increase was due to increase in general and administrative expenses of Eventer and Jeff Brands. The increase was primarily due to an increase in payroll expenses, as a result of an increase in share-based compensation, and the addition of Eventer and Jeff Brands to the group offset exit of ScoutCam from the Group at March 29, 2021.
Net change in fair value of financial assets at fair value through profit or loss
On June 19, 2019 the Company signed an agreement with Gix Internet and its subsidiary Gix Media (together the “Gix Group”), for an investment of approximately USD 5 million in Gix Group (the “Investment Agreement”). The investment was subject to certain closing conditions, which were met on September 3, 2019 (“Closing Date”). As part of the Investment Agreement the Company received financial assets that are measured at fair value through profit or loss. For additional information please see note 4 to our financial statements for the year ended December 31, 2019.
For the six months ended June 30, 2021, the Company recognized loss of USD 153 thousand from net change in fair value of these financial assets (see note 3 to our interim condensed consolidated financial statements as of June 30, 2021).
On February 18, 2020, the Company purchased 2,284,865 shares of Matomy Media Group Ltd. (hereinafter - “Matomy”), which represents 2.32% of its issued and outstanding share capital. On March 24, 2020 the Company completed an additional purchase of 22,326,246 shares of Matomy, raising its aggregate holdings in Matomy to 24.99%. of Matomy’s issued and outstanding share capital and achieved a significant influence in Matomy.
On January 19, 2021 and March 9, 2021, the Company sold 2,300,000 and 11,000,000 shares of Matomy, respectively. Subsequently, following such sales and the merger of Matomy with Automax, which is now traded on TASE (AMX.TA), Motors Ltd., the Company’s aggregate holdings in Automax decreased to 4.73% of its issued and outstanding share capital. Therefore, Matomy is recognized now at its fair value.
For the six months ended June 30, 2021 the Company recognized a gain of USD 143 thousand from net change in fair value of these financial assets (see note 3 to our interim condensed consolidated financial statements as of June 30, 2021).
On June 23, 2020, Scoutcam entered into and consummated a Side Letter Agreement with the Company, whereby the parties agreed to convert, at a conversion price of USD 0.484, an outstanding line of credit previously extended by the Company to ScoutCam, which as of the Conversion Date was USD 381 thousand, into (a) 787,471 shares of the Company’s common stock, (b) warrants to purchase 393,736 shares of common stock with an exercise price of USD 0.595 (Warrant A), and (c) warrants to purchase 787,471 shares of common stock with an exercise price of USD 0.893 (Warrant B). As the conversion price represented the same unit price as in the March 2020 and May 2020 private placements, no finance expenses have been recorded in the Consolidated statements of loss and other comprehensive loss as a result of the conversion.
Each Warrant A is exercisable into one share of common stock of Scoutcam at an exercise price of USD 0.595 per share during the 12 months period following the allocation.
Each Warrant B is exercisable into one share of common stock of Scoutcam at an exercise price of USD 0.893 per share during the 18 months period following the allocation.
5
Medigus Ltd.
Operating and Financial Review as of June 30, 2021, and for the six months then ended
For the six months ended June 30, 2021 the Company recognized gain of USD 552 thousand from net change in fair value of these financial assets (see note 3 to our interim condensed consolidated financial statements as of June 30, 2021).
In addition, the Company recognized gain of USD 43 thousand from net change in fair value of Elbit Imaging securities in and USD 3 thousand from net change in fair value of the investment in Safo.
Share of net loss of accounted for using the equity method
As described above the investment in Gix Internet., Matomy (until March 9, 2021), Polyrizon and ScoutCam (starting March 29, 2021) are accounted for using the equity method. Share of net loss of accounted for using the equity method the Company recognized at six months ended June 30, 2021 was USD 419 thousand.
Operating loss
The Company incurred an operating Loss of USD, 5,028 thousand for the six months ended June 30, 2021, an increase of USD 610 thousand or 14%, compared to operating loss of USD 4,418 thousand for the six months ended June 30, 2020. The decrease was primarily due to an increase of USD 1,691 thousand in general and administrative expenses, as a result of an increase in share-based compensation, and the addition of Eventer and Jeff Brands to the group offset exit of ScoutCam from the Group at March 29, 2021.
The increase mentioned above offset by increase of USD 906 thousand gain in the change of fair value in the six-month ended in June 30, 2021 compared to loss in the change of fair value In the corresponding period.
Change in Fair Value of Warrants Issued to Investors
Loss from change in the fair value of warrants issued to investors for the six months ended June 30, 2021, was USD 474 thousand compared to profit of USD 789 thousand for the six months ended June 30, 2020.
Warrants issued to investors classified as either liabilities or as part of the shareholders’ equity based on the accounting guidance established in connection with the rights attached to the warrants. The warrants that were classified as liabilities due to a cashless exercise mechanism are subject to adjustment to fair value each balance sheet cut-off date. This adjustment is presented separately within the consolidated statement of loss and other comprehensive loss.
Loss for the period
The Company incurred an income of USD 7,927 thousand or positive USD 0.02 per basic and diluted ordinary share for the six months ended June 30, 2021, an increase of USD 11,526 thousand, compared to a loss of USD 3,599 thousand or negative USD 0.04 per basic and diluted ordinary share, for the six months ended June 30, 2020. The increase was primarily due to gain upon Loss of control of a subsidiary in the amount of USD 11,502 thousand.
6
Medigus Ltd.
Operating and Financial Review as of June 30, 2021, and for the six months then ended
Cash flows:
The Company together with its subsidiaries held approximately USD 30 million in cash and cash equivalents as of June 30, 2021.
Net cash used in operating activities was approximately USD 2.2 million for the six months ended June 30, 2021, compared to net cash used in operating activities of approximately USD 2.9 million for the six months ended June 30, 2020. This is primarily due to the deconsolidation of ScoutCam offset by the gain upon loss of control in ScoutCam of USD 12 million.
Net cash used in investing activities was approximately USD 8 million for the six months ended June 30, 2021 and primarily of payment for purchase of intangible assets of approximately USD 4.7 million, the deconsolidation of ScoutCam Inc worth USD 3.3 million and investments in Elbit imaging, Maris Ltd., Revoltz Ltd.,Polyrizon and ScoutCam warrants totaling USD 1.9 million offset primarily by sales of securities of Matomy USD 1.8 million and the first consolidation of Jeff Brands Ltd. worth USD 0.3 million.
Net cash used in investing activities was approximately USD 1.9 million for the six months ended June 30, 2020 and consisted primarily of payment for the acquisition of shares of Matomy Ltd. and purchase of property and equipment.
Net cash generated from financing activities was approximately USD 17.6 million for the six months ended June 30, 2021 and consisted primarily of proceeds from issuance of shares and warrants of the Company, net of issuances costs of USD 17.3 million.
Net cash generated from financing activities was approximately USD 7.8 million for the six months ended June 30, 2020 and consisted primarily of proceeds from issuance of shares and warrants of the Company, net of issuances costs of USD 4.5 million, from exercise of Company’s warrants, net of issuances costs of USD 600 thousand and proceeds from issuance of shares and warrants of the Subsidiary, net of issuances costs of USD 2.8 million.
7
Document And Entity Information |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Document Information Line Items | |
| Entity Registrant Name | MEDIGUS LTD. |
| Document Type | 6-K |
| Current Fiscal Year End Date | --12-31 |
| Amendment Flag | false |
| Entity Central Index Key | 0001618500 |
| Document Period End Date | Jun. 30, 2021 |
| Document Fiscal Year Focus | 2021 |
| Document Fiscal Period Focus | Q2 |
Interim Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Statement of financial position [abstract] | ||
| Ordinary shares par value (in Dollars per share) | ||
| Ordinary shares authorized | 1,000,000,000 | 1,000,000,000 |
| Ordinary shares issued | 475,560,699 | 316,442,738 |
| Ordinary shares outstanding | 475,560,699 | 316,442,738 |
General |
6 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||
| Disclosureof General Explanatory [Abstract] | ||||||||||
| GENERAL | NOTE 1 - GENERAL
“Group” - the Company together with, Jeff’s Brands Ltd., Charging Robotics Ltd., GERD IP and Eventer Ltd..
“Subsidiaries” – Entities under the control of the Company.
These interim condensed consolidated financial statements were approved on September 20, 2021. ScoutCam
ScoutCam has made a number of capital raising during 2021, when the last occurred on March 22, 2021. Therefore the company diluted the holding into 27.76% and deconsolidated ScoutCam. since that date and treated the investment in equity method. For additional information, see note 4.A. GERD IP , INC
On January 13, 2020, together with the Company’s advisor Mr. Kfir Zilberman the Company formed a subsidiary in Delaware, of which the Company holds 90% of the stock capital, under the name GERD IP, Inc. (“GERD IP”). GERD IP was incorporated in accordance with the Company’s efforts to reorganize its assets and increase asset and organizational efficiencies
Eventer:
As of June 30, 2021, the Company holds approximately 47.69% of Eventer technology Ltd. (“Eventer”) on a fully diluted basis. Eventer is a technology company engaged in the development of tools for automatic creation, management, promotion, and billing of events and ticketing sales. For additional information, see note 4.B.
Gix Internet Ltd.:
As of June 30, 2021, the Company own 33.17% in Gix Internet Ltd. (formerly “Algomizer”)., which operates in the field of software development, marketing and distribution to internet users. For additional information, see note 4.D.
Charging Robotics:
On February 19, 2021, the Company entered into the Joint Venture Agreement, with Amir Zaid and Weijian Zhou and the Company’s wholly-owned subsidiary Charging Robotics, under which the Company formed a joint venture, under the name Revoltz. For additional information, see note 4.G.
Interest in other entities:
As of June 30, 2021, the Company also owns 35.86% in Polyrizon Ltd. (. For additional information, see note 4.F), 50.03% in Jeff’s Brands Ltd (For additional information, see note 4.C) ,4.73% in Automax Ltd. (formerly known as Matomy Ltd.) ( For additional information, see note 4.E), 5.1% in Elbit Imaging Ltd. (hereinafter – “Elbit Imaging”), 2.09% in Maris-Tech Ltd. (hereinafter – “Maris”) and 0.47% in Safe Foods, Inc. (hereinafter – “SAFO”). On June 3, 2019, the Company entered into a Licensing and Sale Agreement with Shanghai Golden Grand-Medical Instruments Ltd. (hereinafter - “Golden Grand”) for the know-how licensing and sale of goods relating to MUSE systems in China, Hong Kong, Taiwan and Macao. Under the agreement, the Company committed to provide a license, training services and goods to Golden Grand in consideration for USD 3 million to be paid to the Company in four milestones based instalments. To date, some of these milestones have been achieved and the Company has received USD 1.8 million, which is presented in the balance sheets among “contract liability”. The final milestone and the final instalment shall be completed and paid upon the completion of a MUSE assembly line in China. The Company examines additional potential opportunities to sale MUSE to other territories.
The Company’s shares were listed on the Tel Aviv Stock Exchange Ltd. (hereinafter - “TASE”) and since May 20, 2015, the Company’s American Depository Shares (hereinafter – “ADSs”) evidenced by American Depositary Receipts (hereinafter – “ADRs”) are listed on the Nasdaq Capital Market. The Company’s depositary agent for the ADR program is The Bank of New York Mellon. Since July 2018, the Company’s Series C Warrants are traded on Nasdaq Capital Market. On January 25, 2021, the Company voluntarily delisted its shares from trading on the TASE. Following the delisting, the Company ADSs continue to trade on the Nasdaq and the Company continue to file public reports and make public disclosures in accordance with the rules and regulations of the SEC and Nasdaq.
During the period of six months ended June 30, 2021 the Company entered into several underwriting agreements with Aegis Capital Corp. (hereinafter – “Aegis”) For additional information, see note 8 (2).
However, since inception, the Company’s activities have been funded mainly by its shareholders. Furthermore, in the recent years the Company has suffered recurring losses from operations, negative cash flows from operating activities, and has an accumulated deficit as of June 30, 2021. As such, the Company’s ability to continue operating may be dependent on several factors, amongst which is its ability to raise sufficient additional funding, which funding may not necessarily be available to the Company, obtained on terms favorable to the Company, or provide the Company with sufficient funds to meet its objectives.
In light of the evolving nature of the pandemic and the uncertainty it has produced around the world, the Company does not believe it is possible to precisely predict the pandemic’s cumulative and ultimate impact on the Company’s future business operations, liquidity, financial condition and results of operations. For example, travel restrictions have adversely affected the Company’s ability to timely achieve certain milestones included in the Company Agreement with Golden Grand and has delayed the recognition of revenues deriving therefrom. These travel restrictions have also impacted the Group sales and marketing efforts and those of the Company’s subsidiaries. In addition, a substantial portion of Eventer’s business relates to leisure event management, the scope of which was greatly reduced as a result of governmental policies and measures tailored to address to spread of COVID-19. To the extent that these measures remain in place, Eventer’s business and result of operations could be harmed.
The extent of the impact of the pandemic on the Company’s business and financial results will depend largely on future developments, including the duration of the spread of the outbreak and any future “waves” of the outbreak, globally and specifically within Israel and the United States. In addition, the extent of the impact on capital and financial markets, foreign currencies exchange and governmental or regulatory orders that impact the Company’s business are highly uncertain and cannot be predicted. If economic conditions generally or in the industries in which the Company operate specifically, worsen from present levels, the Company results of operations could be adversely affected and the Company financial condition will depend on future developments that are highly uncertain and cannot be predicted, including new government actions or restrictions, new information that may emerge concerning the severity, longevity and impact of the COVID-19 pandemic on economic activity.
Additionally, concerns over the economic impact of the pandemic have caused extreme volatility in financial markets, which has adversely impacted and may continue to adversely impact the Company share price and the Company ability to access capital markets. To the extent the pandemic or any worsening of the global business and economic environment as a result adversely affects the Company business and financial results, it may also have the effect of heightening many of the other risks in the company’s reports. |
Basis for Preparation of the Interim Condensed Consolidated Financial Statements |
6 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||
| Disclosure Of Basis For Preparation Of Interim Condensed Consolidated Financial Statements [Abstract] | |||||||
| BASIS FOR PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | NOTE 2 - BASIS FOR PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Interim Financial Information has been prepared on the basis of the accounting policies adopted in the Group’s audited consolidated financial statements for the year ended December 31, 2020 (“Annual Financial Statements”), which were prepared in accordance with International Financial Reporting Standards which are standards and interpretations thereto issued by the International Accounting Standard Board (hereinafter “IFRS”). This Interim Financial Information should be read in conjunction with the 2020 Annual Financial Statements and notes thereto issued on May 14, 2021.
The Interim Financial Information is unaudited, does not constitute statutory accounts and does not contain all the information and footnotes required by accounting principles generally accepted under International Financial Reporting Standards for annual financial statements.
The preparation of the interim condensed consolidated financial statements requires the Group’s management to exercise judgment and also requires use of accounting estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
In the preparation of these interim condensed consolidated financial statements, the significant judgments exercised by management in the application of the Group’s accounting policies and the uncertainty involved in the key sources of those estimates were identical to the ones used in the Group’s 2020 Annual Financial Statements. |
Financial Instruments and Financial Risk Management |
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| Disclosure of financial risk management [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | NOTE 3 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
Estimates of fair value: Financial assets:
Level 1 and level 2 financial instruments:
Fair value measurements based on Quoted prices (unadjusted) in active markets (level 1):
The following table presents the Level 1 financial assets roll-forward:
Level 3 financial instruments:
The Company has several financial assets measured at fair value through profit or loss, which meet the level 3 criteria.
The following table presents the level 3 fair value financial assets:
Valuation processes of the financial assets:
Gix warrants - the Company used the Black-Scholes model, using the following principal assumptions: share price: NIS 1.62 expected volatility of 65.88%, risk-free interest of 0.05%, expected term of 3 years following the grant date. The asset amount is adjusted at each balance sheet date based on the then relevant assumptions, until the earlier of full exercise or expiration.
Anti-dilution feature - the Company used the Black-Scholes model, using the following principal assumptions: share price: NIS 1.62, 25% probability for the occurrence of an anti-dilution event, expected volatility of 65.88%, risk-free interest of 0.17%, expected term of 3 years following the issuance date.
ScoutCam warrants- the Company used the Black-Scholes model, using the following principal assumptions: share price: USD 1, expected volatility of 153.8%, risk-free interest of 0.06%, expected term of 3 years following the grant date. The asset amount is adjusted at each balance sheet date based on the then relevant assumptions, until the earlier of full exercise or expiration.
Maris investment - on April 12, 2021 the Company invested in Maris-Tech Ltd. (hereinafter – “Maris”) , Since Maris is a private company, the assumption is that the cost of the investment in the offering represents the fair value of the investment.
SAFO warrants- the Company used the Black-Scholes model, using the following principal assumptions: share price: USD 7.92, expected volatility of 489.8%, risk-free interest of 0.28%, expected term of 3 years following the grant date. The asset amount is adjusted at each balance sheet date based on the then relevant assumptions, until the earlier of full exercise or expiration.
The following table presents the Level 3 financial assets roll-forward:
Financial liabilities:
Level 1 financial instruments:
As of June 30, 2021, and December 31, 2020, the Group has financial liability measured at level 1 – Warrants C. The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.
Level 3 financial instruments:
The Company has several financial liabilities measured at fair value through profit or loss, which meet the level 3 criteria - warrants issued to investors.
The following table presents the financial liabilities that were measured at fair value:
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Interest in Other Entities |
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| Disclosure of significant judgements and assumptions made in relation to interests in other entities [text block] [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST IN OTHER ENTITIES | NOTE 4 - INTEREST IN OTHER ENTITIES:
A.1 This table summarize the total investment according to the equity method as of June 30, 2021:
On January 3, 2019, the Company established a wholly owned subsidiary in Israel under the name ScoutCam Ltd., or ScoutCam. ScoutCam was incorporated as part of a reorganization of the Company intended to distinguish the Company’s miniaturized imaging business, or the micro ScoutCam™ portfolio, from the other operations of the Company and to enable the Company to form a separate business unit with dedicated resources focused on the promotion of such technology.
In addition, ScoutCam used the technological platform it developed for the purpose of additional special systems and products that are suitable for both medical and industrial applications.
On September 16, 2019, the Company entered into a Securities Exchange Agreement (the “Exchange Agreement”), with ScoutCam Inc, formerly known as Intellisense Solutions Inc. , pursuant to which the Company assigned, transferred and delivered 100% of its holdings in ScoutCam to ScoutCam Inc., in exchange for consideration consisting of shares of ScoutCams Inc’s. common stock representing 60% of the issued and outstanding share capital of ScoutCam Inc. immediately upon the closing of the Exchange Agreement (the “Closing”).
The Closing occurred on December 30, 2019 (the “Closing Date”). Pursuant to the Exchange Agreement, Intellisense issued to Medigus 16,130,952 shares of common stock. Upon such share issuance, ScoutCam became a wholly owned subsidiary of Intellisense. On December 31, 2019, Intellisense Solutions Inc. changed its name to ScoutCam Inc.
Also, on the Closing Date, ScoutCam Inc. issued to its’ investors 3,413,312 units, each comprises two shares of common stock, one Warrant A (as defined below) and two Warrants B (as defined below), as part of the financing transaction that ScoutCam Inc. was obligated to secure prior to the Closing. The immediate gross proceeds from the issuance of the units amounted to approximately USD 3.3 million (the “Issuance of Units to External Investors”).
Each Warrant A is exercisable into one share of common stock of ScoutCam Inc. at an exercise price of USD 0.595 per share during the 12-month period following the allotment. Each Warrant B is exercisable into one share of common stock of ScoutCam Inc. at an exercise price of USD 0.893 per share during the 18-month period following the allotment. On March 3, 2020, ScoutCam issued in a private issuance a total of 979,754 units at a purchase price of USD 0.968 per unit.
Each unit was comprised of two shares of common stock par value USD 0.001 per share, one Warrant A (defined below) and two Warrants B (defined below).
Each Warrant A is exercisable into one share of common stock of ScoutCam Inc.’s at an exercise price of USD 0.595 per share during the 12 months period following the allotment.
Each Warrant B is exercisable into one share of common stock of ScoutCam Inc’s at an exercise price of USD 0.893 per share during the 18 months period following the allotment.
The immediate proceeds (gross) from the issuance of all securities offered amounted to approximately USD 948 thousands. After deducting closing costs and fees, ScoutCam received proceeds of approximately USD 909 thousand, net of issuance expenses.
On May 18, 2020, ScoutCam issued in a private issuance a total of 2,066,116 units at a purchase price of USD 0.968 per unit.
Each unit was comprised of two shares of common stock par value USD 0.001 per share, one Warrant A (defined below) and two Warrants B (defined below).
Each Warrant A is exercisable into one share of common stock of ScoutCam’s at an exercise price of USD 0.595 per share during the 18 months period following the allotment.
Each Warrant B is exercisable into one share of common stock of ScoutCam’s at an exercise price of USD 0.893 per share during the 24 months period following the allotment.
The immediate gross proceeds from the issuance of all securities offered amounted to approximately USD 2 million. After deducting closing costs and fees, ScoutCam received proceeds of approximately USD 1.9 million, net of issuance expenses.
On January 20, 2021, ScoutCam Inc.’s board of directors approved an increase of the authorized share capital of ScoutCam Inc., by an additional 225,000,000 shares of its common stock par value USD 0.001 per share, such that the authorized share capital of ScoutCam Inc. following such increase shall consist of 300,000,000 shares of common stock.
On March 22, 2021, ScoutCam Inc. undertook to issue to certain investors (the “Investors”) 22,222,223 units (the “Units”) in exchange for an aggregate purchase price of USD 20 million. Each Unit consists of (i) one share of ScoutCam Inc.’s common stock, and (ii) one warrant to purchase one share of ScoutCam Inc common stock with an exercise price of USD 1.15 per share (the “Warrant” and the “Exercise Price”). Each Warrant is exercisable until the close of business on March 31, 2026.
On June 30, 2021, Medigus exercise all of its 393,736 Warrant A at an exercise price of USD 0.595 per share.
As of June 30, 2021 the Company owned approximately 27.76% of the outstanding common stock of ScoutCam Inc.
Therefore, the Company diluted the holding and deconsolidate ScoutCam Inc . since April 2021 and treated the investment in equity method. The profit recorded on books related to the de-consolidation sum up to USD 11,502 thousand.
ScoutCam purchase price allocation summary:
Reconciliation to carrying amounts for ScoutCam.:
Investment movement for:
Summarized balance sheet:
Summarized statement of comprehensive income:
Summarized statement of comprehensive income:
On October 14, 2020, the Company signed a share purchase agreement and a revolving loan agreement with Eventer Technologies Ltd. (hereinafter – “Eventer”), a technology company engaged in the development of unique tools for automatic creation, management, promotion, and billing of events and ticketing sales. Pursuant to the share purchase agreement, the Company invested USD 750 thousand and were issued an aggregate of 325,270 ordinary shares of Eventer, representing 58.7% of the issued and outstanding share capital (50.01% of Eventer’s issued and outstanding share capital on a fully diluted basis). The share purchase agreement provides that the Company will invest an additional USD 250 thousand in a second tranche, subject to Eventer achieving certain post-closing EBITDA based milestones during the fiscal years 2021 through 2023, or the Milestones. The milestone will be examined in each of the years 2021 through 2023. The fair value of the earn-out was calculated by using a Monte Carlo Simulation. According to this model, the fair value of the earn-out was NIS 233 thousand (USD 69 thousand) as of October 14, 2020. In addition, the Company granted a loan to Eventer in the amount of USD 250 thousand. As of October 14, 2020, the loan was valued at USD 204 thousand. At the same date Eventer granted 74,100 options to its employees and other third parties, at a total fair value of USD 148 thousands.
In addition, the Company entered into the Loan Agreement, under which the Company committed to lend up to USD 1,250 thousand to Eventer through advances of funds upon Eventer’s request and subject to the Company approval. The Company extended the Initial Advance of USD 250 on October 14, 2020 as described above.. Advances extended under the Loan Agreement may be repaid and borrowed in part or in full from time to time. The Initial Advance will be repaid in twenty-four equal monthly installments, commencing on the first anniversary of the Loan Agreement. Other advances extended under the Loan Agreement will be repaid immediately following, and in no event later than thirty days following the completion of the project or purpose for which they were made. Outstanding principal balances on the advances will bear interest at a rate equal to the higher of (i) 4% per year, or (ii) the interest rate determined by the Israeli Income Tax Ordinance [New Version] 5721-1961 and the rules and regulation promulgated thereunder. Interest payments will be made on a monthly basis.
On October 14, 2020, the Company entered the Exchange Agreement with Eventer’s shareholders, pursuant to which, during the period commencing on the second anniversary of the Exchange Agreement and ending fifty-four (54) months following the date of the Exchange Agreement, Eventer’s shareholders may elect to exchange all of their Eventer shares for ordinary shares of the Company. The number of ordinary shares of the Company to which Eventer’s shareholders would be entitled pursuant to an exchange will be calculated by dividing the fair market value of each Eventer’s ordinary share, as mutually determined by the Company and the shareholders, by the average closing price of an ordinary share of the Company on the principal market on which its ordinary shares or ADSs are traded during the sixty days prior to the exchange date rounded down to the nearest whole number. The Company board of directors may defer exchange’s implementation in the event it determines in good faith that doing so would be materially detrimental to the Company and its shareholders. In addition, the exchange may not be effected for so long as USD 600 thousand or greater remains outstanding under the Loan Agreement, or if an event of default under the Loan Agreement has occurred.
On April 8, 2021, Eventer consummated a share purchase agreement with certain investors in connection with the sale and issuance of USD 2.25 million worth of its ordinary shares for an aggregate amount of USD 2.25 million. According to the share purchase agreement, half of the proceeds will be used for promotion of Eventer’s business through media content and space advertising in different platforms and media outlets operated by the lead investor. Following an investment of USD 300 thousand under the described share purchase agreement, the Company hold approximately 47.69% of Eventer Shares.
The following table presents the purchase price allocation of Eventer as of October 15, 2020:
Summarized balance sheet:
Summarized statement of comprehensive income:
Summarized statement of cash flows:
On October 8, 2020, the Company entered into a common stock purchase agreement with Smart Repair Pro, Inc. (hereinafter - “Pro”), Purex, Corp. (hereinafter - “Purex”), and their respective stockholders (the “Purex Purchase Agreement”). Pro and Purex both are in the e-Commerce field and operate online stores for the sale of various consumer products on the Amazon online marketplace. Pursuant to the Purex Purchase Agreement, the Company agreed to acquire 50.01% of Pro’s and 50.03% of Purex’s issued and outstanding share capital on a fully diluted basis through a combination of cash investments in the companies and acquisition of additional shares from the current shareholders of the two companies in consideration for the Company restricted ADSs and a cash component. The Company agreed to invest an aggregate amount of USD 1,250 thousand in Pro and Purex, pay USD 150 thousand in cash consideration to the current stockholders, and issue uo to USD 500 thousand worth of restricted ADSs to the current stockholders of such companies subject to EBITDA milestones.. Following EBITDA results the company issued USD 71 thousand worth of restricted ADSs.
In addition, the companies’ current shareholders are entitled to additional milestone issuances of up to an aggregate USD 750 thousand in restricted ADSs subject to the achievement by Pro and Purex of certain milestones throughout 2021. The transactions contemplated in the definitive agreements closed on January 4, 2021. In addition, the Company agreed to financing arrangements including (i) providing financing by way of a stockholder loan of a principal amount equal to USD 250 thousand which may be extended up to an aggregate cap of USD 1 million of which the Company will finance 60% with the remaining 40% to be financed by the other Pro’s and Purex’s stockholders; and (ii) additional financing of up to a principal amount of USD 1 million, to finance the acquisition of additional online Amazon stores provided that such Acquisition Financing will constitute 80% of the applicable acquisition cost, with the remaining 20% to be financed by the other Pro’s and Purex’s stockholders.
Subsequently, according to the terms of the Purex Purchase Agreement, The Company entered into a loan and pledge agreement, effective January 5, 2021 with its majority owned subsidiaries Pro and Purex. Pursuant to this loan and pledge agreement, the Company extended a USD 250 thousand loan, with an annual interest of 4%, to be repaid on the second anniversary of the effective date.
On February 2, 2021, the Company entered into a loan and pledge agreement, effective February 2, 2021, and amended on February 5, 2021, or the Pro Loan and Pledge Agreement, with the Company majority owned subsidiary Pro and its other stockholder, to finance Pro’s additional purchases of three new brands on the Amazon online marketplace. Pursuant to the Pro Loan and Pledge Agreement, the Company extended a USD 3.76 million loan, with an annual interest of 4%, to be repaid on the fifth anniversary of the effective date. The minority shareholders are obligated to keep a 20:80 ratio with the Company and therefore transferred an amount of USD 940 thousands. the Company concluded the stated interest is materially lower than its market price. Accordingly, the difference between the fair value and face value of the loan attributable to the non-controlling interests was recorded as deemed contribution of the Company to Jeff Brands.
Similarly, the Company concluded the stated interest is materially lower than its market price. Accordingly, the difference between the fair value and face value of the loan attributable to the company was recorded as deemed contribution by the non-controlling interests to Jeff Brands.
On May 16, 2021, the Company entered into a stock exchange and plan of restructuring agreement with Victor Hacmon, the other shareholder of Pro and Purex, and Jeffs’ Brands Ltd. (hereinafter - “Jeffs’ Brands”), a newly incorporated entity. Pursuant to which, among other things, the Company and Victor Hacmon transferred all holdings in Pro and Purex to Jeffs’ Brands, in return for a consideration of Jeffs’ Brands ordinary shares issued respectively. As a result, Pro and Purex became wholly-owned subsidiaries of Jeffs’ Brands. The share exchange transaction was accounted in a manner similar to Pooling-of-Interests ("As Pooling"). To date, the Company invested approximately USD 5.4 million in Jeffs’ Brands and holds 50.03% of its shares.
The table set forth below summarizes the estimates of the fair value of assets acquired and liabilities assumed. In addition, the following table summarizes the allocation of the preliminary purchase price as of the acquisition date:
Summarized balance sheet:
Summarized statement of comprehensive income:
Summarized statement of cash flows:
On June 19, 2019, the Company signed an agreement with Gix Internet Ltd(formerly known as Algomizer Ltd., hereinafter - “Gix Internet”) and its then wholly-owned subsidiary Gix Media Ltd. (formerly known as Linkury Ltd.) ., hereinafter “Gix Media”) (collectively the “Gix Group”), for an investment of approximately USD 5 million in Gix Group (the “Investment Agreement”). The investment was subject to certain pre-conditions, which were met at September 3, 2019 (“Closing Date”). As part of the investment:
In consideration of the Investment Agreement as described above Medigus:
On September 3, 2019, the Company acquired 8.45% of the issued shares of Gix Internet and 9.34% of the issued shares of Gix Media.
On April 6, 2021, the Company exercised part of its right to convert Gix Media conversion shares and were issued by Gix Internet with additional 5,903,718 ordinary shares, such that following the partly conversion the Company holds 24.99% of Gix outstanding share capital on a fully diluted basis.
On June 28, 2021, the Company exercised all of its rights to convert Gix Media’s shares to Gix Internet shares and was issued 3,954,980 additional ordinary shares of Gix Internet such that following the conversion,
As of June 30, 2021, the Company owns 33.17% of Gix Internet, which operates in the field of software development, marketing and distribution to internet users.
Gix purchase price allocation summary:
Reconciliation to carrying amounts for Gix Internet.:
Reconciliation to carrying amounts for Gix Internet.:
Summarized balance sheet:
Summarized statement of comprehensive income:
Matomy together with its subsidiaries offered and provided a portfolio of proprietary programmatic data-driven platforms focusing on two core activities of domain monetization and mobile digital advertising to advertisers, advertising agencies, apps developers and domain owners, primarily in the United States and Europe. In the period spanning from mid-2017 through December 2019, Matomy ceased all of its activities.
On February 18, 2020, the Company purchased 2,284,865 shares of Matomy Media Group Ltd. (hereinafter - “Matomy”), which represents 2.32% of its issued and outstanding share capital. On March 24, 2020, the Company completed an additional purchase of 22,326,246 shares of Matomy, raising the Company’s aggregate holdings in Matomy to 24.92% of Matomy’s issued and outstanding share capital. Consequently2', the Company gained significant influence over this investment and the investment was reclassified from a financial asset at fair value through profit or loss to an associate accounted for using the equity method.
Upon completion of acquisition of the investment in Matomy, the difference between the cost of the investment and the Company’s share of the net fair value of the assets and liabilities of Matomy amounted to USD 546 thousands. The difference was recorded in the consolidated statements of profit or loss and comprehensive loss as amortization of the excess purchase price of an associate.
On September 29, 2020, Matomy announced that it had entered into a memorandum of understanding with Global Automax Ltd. (hereinafter – “Automax”), an Israeli private company that imports various leading car brands to Israel and Automax’s shareholders, for a proposed merger in which the shareholders of Automax would exchange 100% of their shares in Automax for shares of Matomy (hereinafter – the “Merger”). On November 9, 2020, Matomy signed a binding agreement for the Merger, and on March 24, 2021 the preconditions under the merger agreement were met to complete the Merger. Following the closing of the Merger, Automax shareholders held approximately 53% of the outstanding share capital of Matomy and potentially up to a maximum of 73%, due to additional share issuances which are subject to achievement of certain revenue and profit milestones by Matomy, or if the value of the Matomy’s shares reach specific values after the Merger.
Following the Company’s decision to sell up to 50% of Matomy’s shares in the near future, half of this investment was classified as of December 31, 2020 as an assets available for sale.
On January 19, 2021 and March 9, 2021, the Company sold 2,300,000 and 11,000,000 shares of Matomy, respectively. Subsequently, following such sales and the merger of Matomy with Automax, which is now traded Oon TASE (AMX.TA), the Company’s aggregate holdings in Automax decreased to 4.73% of its issued and outstanding share capital. The total gained recognized through profit and loss related to these sales sum up to USD 2,025 thousand.
Reconciliation to carrying amounts for Automax (formerly known as Matomy).
Polyrizon Ltd. (hereinafter – “Polyrizon”) is a private company engaged in developing biological gels designed to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities.
In July 2020, the Company entered into an ordinary share purchase agreement with Polyrizon, pursuant to which the Company purchased 19.9% of Polyrizon’s issued and outstanding share capital on a fully diluted basis for aggregate gross proceeds of USD 10 thousand. Polyrizon did not have a significant operation in the period before the purchase. The concentration test, as describe in IFRS 3, is met, meaning that, the transaction is accounted as an asset acquisition. The Company also granted a loan to Polyrizon in the amount of USD 94 thousand. The loan does not bear any interest and is repayable only upon a deemed liquidation event, as defined in that ordinary share purchase agreement. In addition, the Company has an option (hereinafter – the “Option”) to invest an additional amount of up to USD 1 million in consideration for shares of Polyrizon such that following the additional investment, the Company will own 51% of Polyrizon’s capital stock on a fully diluted basis, excluding outstanding deferred shares, as defined in the share purchase agreement. The Option is exercisable until the earlier of (i) April 23, 2023, or (ii) the consummation by Polyrizon of equity financing of at least USD 500 thousand based on a pre-money valuation of at least USD 10 million the total value of the options is USD 36 thousand, and the acquisition was accounted for by the equity method. The Option is measured at fair value through profit and loss.
In addition, the Company entered into an exclusive reseller agreement with Polyrizon. As part of the reseller agreement, the Company received an exclusive global license to promote, market, and resell the Polyrizon products, focusing on a unique Biogel to protect from the COVID-19 virus. The term of the license is for four years, commencing upon receipt of sufficient FDA approvals for the lawful marketing and sale of the products globally. The Company also has the right to purchase the Polyrizon products on a cost-plus 15% basis for the purpose of reselling the products worldwide. In consideration of the license, Polyrizon will be entitled to receive annual royalty payments equal to 10% of the Company annualized operating profit arising from selling the products. As of June 30, 2021, Poyrizon’s products have not received the requisite FDA approvals, and therefore manufacturing and commercialization efforts have not yet commenced.
On March 9, 2021, the Company entered into a share purchase agreement, with Polyrizon and Mr. Raul Srugo, an existing shareholder of Polyrizon, for an additional investment of up to a total of USD 250 thousand in Polyrizon. Following an investment of USD 120.5 thousand the Company held approximately 35.86% of Polyrizon shares.
Following share purchase agreement Polyrizon signed with its current shareholdersto raise an amount of USD 800 thousands, the Company invested an amount of USD 297 thousands on September 2, 2021 . Currently the company hold 34.74% on Polyrizon on a fully diluted basis.
The following table provides details regarding the Purchase Price Allocation of Polyrizon as of July 15, 2020:
The following table presents the Polyrizon equity investment account activity:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The following table provides details regarding the Purchase Price Allocation of Polyrizon as of March 9, 2021:
On January 7, 2021, the Company entered an agreement to purchase a provisional patent filed with the United States Patent and Trademark Office and know-how relating to wireless vehicle battery charging technology in consideration for USD 75 thousand. Furthermore, the Company entered a collaboration agreement with the seller, whereby the Company committed to invest USD 150 thousand in a newly incorporated wholly owned subsidiary of the Company, Charging Robotics Ltd. (hereinafter – “Charging Robotics”), incorporated on February 1, 2021, which will focus on the company new electric vehicle and wireless charging activities. Pursuant to the collaboration agreement, the seller is entitled to a monthly consultant fee as well as options to purchase 15% of Charging Robotics’ fully diluted share capital as of its incorporation date based on a valuation of USD 1,000 thousand.
On February 19, 2021, the Company entered into the Joint Venture Agreement, with Mr. Amir Zaid and Mr. Weijian Zhou (the founders of Emuze Ltd., a privately held company that designs and develops electric mobility micro vehicles), and Charging Robotics (the “Joint Venture Agreement”), under which the Company formed a joint venture, under the name Revoltz, to develop and commercialize three modular electric vehicle (hereinafter – “EV”) micro mobility vehicles for urban individual use and “last mile” cargo delivery.
Under the terms of the Joint Venture Agreement, the Company invested an initial amount of USD 250 thousand in consideration of 19,990 ordinary shares of Revoltz Ltd. (hereinafter – “Revoltz”), representing 19.99% of Revoltz’s issued and outstanding share capital on a fully diluted basis. The Joint Venture Agreement requires the Company to invest an additional USD 400 thousand in a second tranche, subject to Revoltz achieving certain post-closing milestones, for 37.5% of Revoltz’s issued and outstanding share capital.
In addition, within twelve (12) months following the completion of the second tranche (but in any event not later than December 31, 2022), the Company shall be entitled to invest an additional amount of USD 700 thousand in consideration for Revoltz’s ordinary shares which, will result in the Company holding 50.1% Revoltz’s issued and outstanding share capital.
The joint venture’s intended focus is to develop unique EVs that have the ability to last a full working day within a single charge suitable for heavy-duty and rigid operations and provide tailored mission-specific designs as well as Hop on -Hop off modes, off-road versions along with a low cost of operation.
On June 17, 2021, Charging Robotics signed a definitive distribution agreement with Automax, (the “Distribution Agreement”). The Distribution Agreement is for an exclusive distribution of Charging Robotics’ wireless robotic charging pad in Israel and Greece for a period of five years, with an extension option for an additional five years. Automax will market the wireless robotic charging pad for electric vehicles, once fully developed by Charging Robotics, and will be responsible for obtaining all the necessary licenses, permits and approvals for the import, marketing and distribution of such product.
As part of the Distribution Agreement, Automax will pay Charging Robotics a one-time payment of USD 50 thousand for its appointment as an exclusive distributor in Israel and Greece. Additionally, Automax will have a five-year option to purchase up to 5% of Charging Robotics’ ordinary shares at a USD 30 million pre-money valuation on a fully diluted basis, upon completion of Charging Robotics’ first financing round. Furthermore, Automax will have an additional option, for five years, to purchase ordinary shares of up to 5% of the amount of shares that Charging Robotic will issue in any subsequent round, following the first financing round, at a price per share to be determined in any such round. |
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Inventory |
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| Disclosure of inventories [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVENTORY | NOTE 5 - INVENTORY
Composed as follows:
As of June 30, 2021, the inventory is derived from Jeff’s Brands. As of December 31, 2020, the inventory is derived from ScoutCam. |
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Intangible Assets |
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| Disclosure of intangible assets [text block] [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSETS | NOTE 6 - INTANGIBLE ASSETS
Total intangible assets consisted of the following:
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Accrued Expenses and Other Liabilities |
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| Disclosure of accrued expenses and other liabilities [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 7 - ACCRUED EXPENSES AND OTHER LIABILITIES
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| Disclosure of share capital, reserves and other equity interest [text block] [Abstract] | ||||||||||||||||||||
| EQUITY | NOTE 8 - EQUITY
Medigus Ltd.:
The immediate gross and net of issuance expenses proceeds from such securities issuance aggregated to approximately USD 5 million and USD 4.4 million, respectively.
Prefunded warrants may be exercised via a cashless exercise mechanism as defined in the agreement, whereby the number of shares the value of which equals the exercise premium in cash will be deducted from the number of shares to be issued upon exercise of the warrant.
During second quarter of 2020, 1,539,656 prefunded warrants were exercised via a cashless exercise mechanism and 30,780,000 ordinary shares of the Company were allotted.
During the third quarter of 2020, 1,219,333 prefunded warrants were exercised. Accordingly, 24,386,660 ordinary shares of the Company were issued.
Until the end of the third quarter, all the prefunded warrants were exercised. On July 9, 2020, the Company’s shareholders approved an increase of the authorized share capital of the Company by an additional NIS 750,000 thousand, such that the authorized share capital increased to NIS 1,000,000,000 ordinary shares.
On January 11, 2021, the Company entered into an underwriting agreement with Aegis Capital Corp. (hereinafter – “Aegis”), pursuant to which the Company agreed to sell to Aegis, in a firm commitment public offering 3,659,735 ADSs, representing a total of 73,194,700 ordinary shares, of no par value for a public offering price of USD2.30 per ADS. In addition, the Underwriter was granted an option to purchase additional 15 percent of the ADSs sold in the Offering solely to cover over-allotments, exercisable until the earlier of 30-days or the last day of trading of the Company’s ordinary shares on the Tel-Aviv Stock Exchange. Aegis exercised its over-allotment option in full to purchase an additional 548,960 ADSs, the closing of which occurred on January 19, 2021. The total gross proceeds of the offering to approximately USD 9.68 million.
On February 12, 2021, following the approval of an extraordinary general meeting of the Company shareholders held on February 12, 2021, the Company amended its articles of association to eliminate the par value of its ordinary shares, such that the authorized share capital of the Company following the amendment consists of 1,000,000,000 ordinary shares of no-par value.
On February 25, 2021, the Company entered into an underwriting agreement with Aegis pursuant to which the Company agreed to sell to Aegis, in a firm commitment public offering 3,258,438 ADSs for a public offering price of USD2.60 per ADS. In addition, Aegis was granted an option to purchase additional 15 percent of the ADSs sold in the offering solely to cover over-allotments. Aegis exercised its over-allotment option in full to purchase an additional 488,765 thousand ADSs. The total gross proceeds of the offering to approximately USD 9.7 million.
In May and June 2021, the company board of directors approved the grant of 25,600,000 options pursuant to the company’s option plan, to certain employees, consultants and directors. |
Revenues |
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| Disclosure of revenue [text block] [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUES | NOTE 9 - REVENUES
Set forth below is a breakdown of Company’s revenue by major customers (major customer –revenues from these customers constitute at least 10% of total revenues in a certain year):
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Transactions with Related Parties |
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| Disclosure of transactions between related parties [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TRANSACTIONS WITH RELATED PARTIES | NOTE 10 - TRANSACTIONS WITH RELATED PARTIES:
“Related Parties” – As defined in IAS 24 – ‘Related Party Disclosures” (hereinafter- “IAS 24”)
Key management personnel of the Company - included together with other entities, in the said definition of “Related Parties” mentioned in IAS 24, include some members of senior management.
Indemnification, exemption and insurance for directors and officers of the Company:
(1) Current Assets:
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Subsequent Events |
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| Disclosure of events after reporting period [text block] [Abstract] | |
| SUBSEQUENT EVENTS | NOTE 11 - SUBSEQUENT EVENTS:
On July 19, 2021, the Company announced it has signed a non-binding letter of intent to purchase a controlling interest in a Business-to-Business (B2B) and Business-to-Consumer (B2C) electronics distributor (the “Target Company”) with several outlets in Israel and a growing e-commerce operation.
According to the LOI, the Company will hold 50.06% of the issued and outstanding share capital of the Target Company, acquired through the acquisition of shares from the Target Company’s current shareholders, in consideration for the Company’s cash and restricted ADSs of. The total consideration, estimated to amount to USD 3.3 million, is based on the Target Company’s valuation calculated according to its adjusted EBITDA.
On July 21, 2021, the Company’s board of directors authorized the Company to take actions to promote a USD 2 million buyback program for the Company’s ADRs. The Company expects to formally approve the buyback in conjunction with the approval of its financial statements for the period ended June 30, 2021 and based on a financial advisor’s opinion to be obtained. The Company is required to file a motion seeking a court approval for the buyback program, and the effectiveness of the buyback plan, if formally approved, will be contingent upon such court’s approval.
In accordance with the share purchase agreement Polyrizon signed with its current shareholders to raise a total amount of USD 800 thousands, the Company committed on August 31, 2021 to invest an amount of USD 297 thousands. Following such investment round, the Company will hold 34.74% of Polyrizon on a fully diluted basis.
On August 17, the Company’s subsidiary, Jeffs’ Brands Ltd signed a non-binding Letter of Intent to acquire 100% of the issued and outstanding share capital of a private company of branded consumer products, for an initial consideration of USD 6 million (to be paid in cash and equity) with a potential deferred consideration, based on the parties’ understanding, of up to additional USD 13.25 million, conditional upon future sales and profitability targets. |
Financial Instruments and Financial Risk Management (Tables) |
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| Disclosure of financial risk management [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of financial assets |
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| Schedule of fair value of financial instruments |
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| Schedule of fair value measurement of liabilities |
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Interest in Other Entities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of significant judgements and assumptions made in relation to interests in other entities [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of investment to equity method |
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| Schedule of allocation summary |
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| Schedule of reconciliation to carrying amounts |
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| Schedule of summarized balance sheet |
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| Schedule of summarized statement of comprehensive income |
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| Schedule of described share purchase agreement |
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| Schedule of summarized statement of cash flows |
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| Schedule of summarizes the allocation of the preliminary purchase price |
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| Schedule of software development, marketing and distribution to internet users |
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| Schedule of reconciliation to carrying amounts for Gix Internet. |
|
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| Schedule of reconciliation to carrying amounts for Automax formerly known as Matomy |
|
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| Schedule of table provides details regarding the Purchase Price Allocation of Polyrizon |
|
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Inventory (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of inventories [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of inventory |
|
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Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of intangible assets [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of total intangible assets |
|
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Accrued Expenses and Other Liabilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of accrued expenses and other liabilities [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of accrued expenses and other liabilities |
|
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Revenues (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of revenue [text block] [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of revenue by product |
|
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| Schedule of major customers |
|
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Transactions with Related Parties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure of transactions between related parties [text block] [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of transactions with related parties |
|
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| Schedule of transactions with related parties |
|
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| Schedule of loans |
|
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Financial Instruments and Financial Risk Management (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2021
$ / shares
| |
| Gix warrants [Member] | |
| Financial Instruments and Financial Risk Management (Details) [Line Items] | |
| Expected volatility | 65.88% |
| Risk free interest | 0.05% |
| Expected Term | 3 years |
| Anti-dilution [Member] | |
| Financial Instruments and Financial Risk Management (Details) [Line Items] | |
| Expected volatility | 65.88% |
| Risk free interest | 0.17% |
| Expected Term | 3 years |
| Probability for the occurrence percentage | 25.00% |
| Scoutcam warrants [Member] | |
| Financial Instruments and Financial Risk Management (Details) [Line Items] | |
| Expected volatility | 153.80% |
| Risk free interest | 0.06% |
| Expected Term | 3 years |
| SAFO Warrants [Member] | |
| Financial Instruments and Financial Risk Management (Details) [Line Items] | |
| Expected volatility | 489.80% |
| Risk free interest | 0.28% |
| Expected Term | 3 years |
| Share price (in Dollars per share) | $ 7.92 |
Financial Instruments and Financial Risk Management (Details) - Schedule of fair value measurement of liabilities - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
| Financial liabilities at fair value through profit or loss - | ||
| Fair value of warrant | $ 1,513 | $ 1,039 |
| Level 1 [Member] | ||
| Financial liabilities at fair value through profit or loss - | ||
| Fair value of warrant | 1,479 | 1,003 |
| Level 3 [Member] | ||
| Financial liabilities at fair value through profit or loss - | ||
| Fair value of warrant | $ 34 | $ 36 |
Interest in Other Entities (Details) $ / shares in Units, ₪ in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sep. 02, 2021
USD ($)
|
May 16, 2021
USD ($)
|
Apr. 08, 2021 |
Apr. 06, 2021
shares
|
Mar. 09, 2021 |
Feb. 02, 2021
USD ($)
|
Jan. 07, 2021 |
Oct. 14, 2020
USD ($)
|
Oct. 08, 2020
USD ($)
|
Mar. 03, 2020
USD ($)
$ / shares
shares
|
Sep. 03, 2019 |
Jul. 30, 2021
USD ($)
|
Jun. 17, 2021 |
Feb. 19, 2021
USD ($)
|
Jan. 19, 2021
shares
|
Sep. 29, 2020 |
May 18, 2020
USD ($)
$ / shares
shares
|
Mar. 24, 2020
shares
|
Feb. 18, 2020
shares
|
Jan. 19, 2020
shares
|
Sep. 16, 2019 |
Jun. 19, 2019
USD ($)
$ / shares
shares
|
Jun. 19, 2019
ILS (₪)
shares
|
May 01, 2021
USD ($)
|
Jun. 30, 2021
USD ($)
$ / shares
shares
|
Jun. 30, 2020
USD ($)
|
Mar. 09, 2021
USD ($)
|
Dec. 31, 2019
USD ($)
$ / shares
shares
|
Jun. 28, 2021
shares
|
Mar. 22, 2021
USD ($)
$ / shares
shares
|
Jan. 20, 2021
$ / shares
shares
|
Dec. 31, 2020
$ / shares
|
Sep. 30, 2020
shares
|
Jul. 15, 2020
USD ($)
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May 22, 2020
$ / shares
shares
|
Dec. 30, 2019
shares
|
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| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 2,168,675 | 2,168,675 | 24,386,660 | 11,500,020 | ||||||||||||||||||||||||||||||||||
| Proceeds from issuance | $ 948 | $ 2,000 | $ 17,336 | $ 5,044 | ||||||||||||||||||||||||||||||||||
| Common stock, par value (in Dollars per share) | $ / shares | ||||||||||||||||||||||||||||||||||||||
| Profit of consolidation | $ 11,502 | |||||||||||||||||||||||||||||||||||||
| Purchase agreement, description | Eventer consummated a share purchase agreement with certain investors in connection with the sale and issuance of USD 2.25 million worth of its ordinary shares for an aggregate amount of USD 2.25 million. According to the share purchase agreement, half of the proceeds will be used for promotion of Eventer’s business through media content and space advertising in different platforms and media outlets operated by the lead investor. Following an investment of USD 300 thousand under the described share purchase agreement, the Company hold approximately 47.69% of Eventer Shares | Pursuant to the share purchase agreement, the Company invested USD 750 thousand and were issued an aggregate of 325,270 ordinary shares of Eventer, representing 58.7% of the issued and outstanding share capital (50.01% of Eventer’s issued and outstanding share capital on a fully diluted basis). The share purchase agreement provides that the Company will invest an additional USD 250 thousand in a second tranche, subject to Eventer achieving certain post-closing EBITDA based milestones during the fiscal years 2021 through 2023, or the Milestones. The milestone will be examined in each of the years 2021 through 2023. The fair value of the earn-out was calculated by using a Monte Carlo Simulation. According to this model, the fair value of the earn-out was NIS 233 thousand (USD 69 thousand) as of October 14, 2020. In addition, the Company granted a loan to Eventer in the amount of USD 250 thousand. As of October 14, 2020, the loan was valued at USD 204 thousand. At the same date Eventer granted 74,100 options to its employees and other third parties, at a total fair value of USD 148 thousands. | ||||||||||||||||||||||||||||||||||||
| Committed to lend amount | $ 1,250 | |||||||||||||||||||||||||||||||||||||
| Initial advances | $ 250 | |||||||||||||||||||||||||||||||||||||
| Advance repaid term | 24 months | |||||||||||||||||||||||||||||||||||||
| Interest rate | 4.00% | |||||||||||||||||||||||||||||||||||||
| Exchange agreement term | 54 months | |||||||||||||||||||||||||||||||||||||
| Outstanding loan amount | $ 600 | |||||||||||||||||||||||||||||||||||||
| Aggregate in restricted amount | $ 750 | |||||||||||||||||||||||||||||||||||||
| Financing arrangement, description | In addition, the Company agreed to financing arrangements including (i) providing financing by way of a stockholder loan of a principal amount equal to USD 250 thousand which may be extended up to an aggregate cap of USD 1 million of which the Company will finance 60% with the remaining 40% to be financed by the other Pro’s and Purex’s stockholders; and (ii) additional financing of up to a principal amount of USD 1 million, to finance the acquisition of additional online Amazon stores provided that such Acquisition Financing will constitute 80% of the applicable acquisition cost, with the remaining 20% to be financed by the other Pro’s and Purex’s stockholders. | |||||||||||||||||||||||||||||||||||||
| Extended loan amount | $ 250 | $ 3,760 | ||||||||||||||||||||||||||||||||||||
| Annual interest | 4.00% | 4.00% | ||||||||||||||||||||||||||||||||||||
| Minority shareholders transferred amount | $ 940 | |||||||||||||||||||||||||||||||||||||
| Amount committed to lend up | [1] | $ 94 | ||||||||||||||||||||||||||||||||||||
| Additional consideration transferred | $ 1,000 | |||||||||||||||||||||||||||||||||||||
| Amount of pre-money valuation | $ 10,000 | |||||||||||||||||||||||||||||||||||||
| Fully diluted basis percentage | 51.00% | |||||||||||||||||||||||||||||||||||||
| Intellisense [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 16,130,952 | |||||||||||||||||||||||||||||||||||||
| Common Stock [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | |||||||||||||||||||||||||||||||||||||
| ScoutCam Inc. [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Entity holdings, percentage | 100.00% | 27.76% | ||||||||||||||||||||||||||||||||||||
| Common stock representing of issued and outstanding share capital, percentage | 60.00% | |||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 979,754 | 2,066,116 | ||||||||||||||||||||||||||||||||||||
| Number of warrant exercise price per share (in Dollars per share) | $ / shares | $ 1.15 | |||||||||||||||||||||||||||||||||||||
| Purchase price, per share (in Dollars per share) | $ / shares | $ 0.968 | $ 0.968 | ||||||||||||||||||||||||||||||||||||
| Net of issuance expenses | $ 909 | $ 1,900 | ||||||||||||||||||||||||||||||||||||
| Additional ordinary shares (in Shares) | shares | 225,000,000 | |||||||||||||||||||||||||||||||||||||
| Authorized share capital (in Shares) | shares | 300,000,000 | |||||||||||||||||||||||||||||||||||||
| Number of shares units issued to investors (in Shares) | shares | 22,222,223 | |||||||||||||||||||||||||||||||||||||
| Aggreagte purchase price | $ 20,000 | |||||||||||||||||||||||||||||||||||||
| ScoutCam Inc. [Member] | Common Stock [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 3,413,312 | |||||||||||||||||||||||||||||||||||||
| Proceeds from issuance | $ 3,300 | |||||||||||||||||||||||||||||||||||||
| Common stock, par value (in Dollars per share) | $ / shares | $ 0.001 | |||||||||||||||||||||||||||||||||||||
| Jeff’s Brands Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Purchase agreement, description | the Company agreed to acquire 50.01% of Pro’s and 50.03% of Purex’s issued and outstanding share capital on a fully diluted basis through a combination of cash investments in the companies and acquisition of additional shares from the current shareholders of the two companies in consideration for the Company restricted ADSs and a cash component. The Company agreed to invest an aggregate amount of USD 1,250 thousand in Pro and Purex, pay USD 150 thousand in cash consideration to the current stockholders, and issue uo to USD 500 thousand worth of restricted ADSs to the current stockholders of such companies subject to EBITDA milestones.. Following EBITDA results the company issued USD 71 thousand worth of restricted ADSs. | |||||||||||||||||||||||||||||||||||||
| Amount invested | $ 5,400 | |||||||||||||||||||||||||||||||||||||
| Percentage of shares | 50.03% | |||||||||||||||||||||||||||||||||||||
| Gix Internet Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 6,666,680 | 6,666,680 | ||||||||||||||||||||||||||||||||||||
| Additional ordinary shares (in Shares) | shares | 3,954,980 | |||||||||||||||||||||||||||||||||||||
| Amount invested | $ 5,000 | |||||||||||||||||||||||||||||||||||||
| Warrants to purchase shares (in Shares) | shares | 333,334 | 333,334 | ||||||||||||||||||||||||||||||||||||
| Description of reverse earn out | Medigus’ investment in Gix Internet and Gix Media is based on a projection that Gix Media’s net profit for 2019 will be at least NIS 15 million. In the event that Gix Media’s net profit is less than NIS 15 million for 2019, Medigus will be issued with additional ordinary shares in Gix, adjusting the price per Gix ordinary shares to the actual net profit for 2019, and compensating Medigus for the difference between the actual net profit and the target net profit for 2019 (“Reverse earn out”). Gix Media’s net profit for 2019 was more than NIS 15 million. | Medigus’ investment in Gix Internet and Gix Media is based on a projection that Gix Media’s net profit for 2019 will be at least NIS 15 million. In the event that Gix Media’s net profit is less than NIS 15 million for 2019, Medigus will be issued with additional ordinary shares in Gix, adjusting the price per Gix ordinary shares to the actual net profit for 2019, and compensating Medigus for the difference between the actual net profit and the target net profit for 2019 (“Reverse earn out”). Gix Media’s net profit for 2019 was more than NIS 15 million. | ||||||||||||||||||||||||||||||||||||
| Percentage on discount on average share price | 20.00% | 20.00% | ||||||||||||||||||||||||||||||||||||
| Paid for Cash | $ 4,057 | ₪ 14,400 | ||||||||||||||||||||||||||||||||||||
| Number of ADS issued (in Shares) | shares | 333,334 | 333,334 | ||||||||||||||||||||||||||||||||||||
| Exercise price (in Dollars per share) | $ / shares | $ 4 | |||||||||||||||||||||||||||||||||||||
| Percentage on shares issued | 8.45% | |||||||||||||||||||||||||||||||||||||
| Ownership Interest, Percentage | 33.17% | |||||||||||||||||||||||||||||||||||||
| Gix Media [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Percentage on shares issued | 9.34% | |||||||||||||||||||||||||||||||||||||
| Gix Media [Member] | Common Stock [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 729,508 | 729,508 | ||||||||||||||||||||||||||||||||||||
| Gix Interne [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Additional ordinary shares (in Shares) | shares | 5,903,718 | |||||||||||||||||||||||||||||||||||||
| Percentage of outstanding share capital | 24.99% | |||||||||||||||||||||||||||||||||||||
| Matomy Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Purchased of shares (in Shares) | shares | 2,284,865 | |||||||||||||||||||||||||||||||||||||
| Percentage of issued and outstanding share capital | 24.92% | 2.32% | ||||||||||||||||||||||||||||||||||||
| Additional purchase of shares (in Shares) | shares | 22,326,246 | |||||||||||||||||||||||||||||||||||||
| Net fair value of the assets and liabilities | $ 546 | |||||||||||||||||||||||||||||||||||||
| Description of percentage on shares acquired | Matomy announced that it had entered into a memorandum of understanding with Global Automax Ltd. (hereinafter – “Automax”), an Israeli private company that imports various leading car brands to Israel and Automax’s shareholders, for a proposed merger in which the shareholders of Automax would exchange 100% of their shares in Automax for shares of Matomy (hereinafter – the “Merger”). On November 9, 2020, Matomy signed a binding agreement for the Merger, and on March 24, 2021 the preconditions under the merger agreement were met to complete the Merger. Following the closing of the Merger, Automax shareholders held approximately 53% of the outstanding share capital of Matomy and potentially up to a maximum of 73%, due to additional share issuances which are subject to achievement of certain revenue and profit milestones by Matomy, or if the value of the Matomy’s shares reach specific values after the Merger. | |||||||||||||||||||||||||||||||||||||
| Sale of share percentage | 50.00% | |||||||||||||||||||||||||||||||||||||
| Sale of shares (in Shares) | shares | 2,300,000 | 11,000,000 | ||||||||||||||||||||||||||||||||||||
| Decreased to issued and outstanding share capital | 4.73% | |||||||||||||||||||||||||||||||||||||
| Total gained recognized through profit and loss | $ 2,025 | |||||||||||||||||||||||||||||||||||||
| Polyrizon Ltd. [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Ownership Interest, Percentage | 51.00% | |||||||||||||||||||||||||||||||||||||
| Percentage of issued and outstanding share capital | 19.90% | |||||||||||||||||||||||||||||||||||||
| Aggregate gross proceeds | $ 10 | |||||||||||||||||||||||||||||||||||||
| Amount committed to lend up | 94 | |||||||||||||||||||||||||||||||||||||
| Additional consideration transferred | 1,000 | |||||||||||||||||||||||||||||||||||||
| Equity financing amount | 500 | |||||||||||||||||||||||||||||||||||||
| TotalValueOfOptions | $ 36 | |||||||||||||||||||||||||||||||||||||
| Term of the license | 4 years | |||||||||||||||||||||||||||||||||||||
| Description of polyrizon products | the right to purchase the Polyrizon products on a cost-plus 15% basis for the purpose of reselling the products worldwide. In consideration of the license, Polyrizon will be entitled to receive annual royalty payments equal to 10% of the Company annualized operating profit arising from selling the products. | |||||||||||||||||||||||||||||||||||||
| DescriptionOfPolyrizonProducts | the Company entered into a share purchase agreement, with Polyrizon and Mr. Raul Srugo, an existing shareholder of Polyrizon, for an additional investment of up to a total of USD 250 thousand in Polyrizon. Following an investment of USD 120.5 thousand the Company held approximately 35.86% of Polyrizon shares. | |||||||||||||||||||||||||||||||||||||
| Fully diluted basis percentage | 34.74% | |||||||||||||||||||||||||||||||||||||
| Polyrizon Ltd. [Member] | NonadjustingEvent [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Amount invested | $ 297 | |||||||||||||||||||||||||||||||||||||
| Sharehokders amount | $ 800 | |||||||||||||||||||||||||||||||||||||
| Charging Robotics Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Description of agreement | the Company entered an agreement to purchase a provisional patent filed with the United States Patent and Trademark Office and know-how relating to wireless vehicle battery charging technology in consideration for USD 75 thousand. Furthermore, the Company entered a collaboration agreement with the seller, whereby the Company committed to invest USD 150 thousand in a newly incorporated wholly owned subsidiary of the Company, Charging Robotics Ltd. (hereinafter – “Charging Robotics”), incorporated on February 1, 2021, which will focus on the company new electric vehicle and wireless charging activities. Pursuant to the collaboration agreement, the seller is entitled to a monthly consultant fee as well as options to purchase 15% of Charging Robotics’ fully diluted share capital as of its incorporation date based on a valuation of USD 1,000 thousand. | |||||||||||||||||||||||||||||||||||||
| Description of distribution agreement | Automax will pay Charging Robotics a one-time payment of USD 50 thousand for its appointment as an exclusive distributor in Israel and Greece. Additionally, Automax will have a five-year option to purchase up to 5% of Charging Robotics’ ordinary shares at a USD 30 million pre-money valuation on a fully diluted basis, upon completion of Charging Robotics’ first financing round. Furthermore, Automax will have an additional option, for five years, to purchase ordinary shares of up to 5% of the amount of shares that Charging Robotic will issue in any subsequent round, following the first financing round, at a price per share to be determined in any such round. | |||||||||||||||||||||||||||||||||||||
| Revoltz Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Percentage of issued and outstanding share capital | 50.10% | |||||||||||||||||||||||||||||||||||||
| Additional consideration transferred | $ 700 | |||||||||||||||||||||||||||||||||||||
| Description of joint venture agreement | the Company invested an initial amount of USD 250 thousand in consideration of 19,990 ordinary shares of Revoltz Ltd. (hereinafter – “Revoltz”), representing 19.99% of Revoltz’s issued and outstanding share capital on a fully diluted basis. The Joint Venture Agreement requires the Company to invest an additional USD 400 thousand in a second tranche, subject to Revoltz achieving certain post-closing milestones, for 37.5% of Revoltz’s issued and outstanding share capital. | |||||||||||||||||||||||||||||||||||||
| Warrant [Member] | Gix Internet Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Warrants to purchase shares (in Shares) | shares | 2,898,183 | 2,898,183 | ||||||||||||||||||||||||||||||||||||
| Warrants A [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Number of warrant exercise price per share (in Dollars per share) | $ / shares | $ 0.595 | $ 0.595 | $ 0.595 | $ 0.595 | ||||||||||||||||||||||||||||||||||
| Number of warrants exercise (in Shares) | shares | 393,736 | |||||||||||||||||||||||||||||||||||||
| Warrants B [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Number of warrant exercise price per share (in Dollars per share) | $ / shares | $ 0.893 | $ 0.893 | $ 0.893 | |||||||||||||||||||||||||||||||||||
| Warrant [Member] | Gix Internet Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 2,898,183 | 2,898,183 | ||||||||||||||||||||||||||||||||||||
| Expected term | 3 years | 3 years | ||||||||||||||||||||||||||||||||||||
| ADS [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 575,001 | |||||||||||||||||||||||||||||||||||||
| Purchase price, per share (in Dollars per share) | $ / shares | $ 1.5 | |||||||||||||||||||||||||||||||||||||
| ADS [Member] | Gix Internet Ltd [Member] | ||||||||||||||||||||||||||||||||||||||
| Interest in Other Entities (Details) [Line Items] | ||||||||||||||||||||||||||||||||||||||
| Shares issued (in Shares) | shares | 6,666,680 | 6,666,680 | ||||||||||||||||||||||||||||||||||||
| Number of ADS issued (in Shares) | shares | 333,334 | 333,334 | ||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Interest in Other Entities (Details) - Schedule of investment to equity method - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Interest in Other Entities (Details) - Schedule of investment to equity method [Line Items] | ||
| Equity method investment | $ 17,545 | $ 1,663 |
| ScoutCam Inc. [Member] | ||
| Interest in Other Entities (Details) - Schedule of investment to equity method [Line Items] | ||
| Equity method investment | 11,851 | |
| Gix Internet Ltd [Member] | ||
| Interest in Other Entities (Details) - Schedule of investment to equity method [Line Items] | ||
| Equity method investment | 5,290 | |
| Polyrison Ltd [Member] | ||
| Interest in Other Entities (Details) - Schedule of investment to equity method [Line Items] | ||
| Equity method investment | 162 | |
| Revoltz Ltd [Member] | ||
| Interest in Other Entities (Details) - Schedule of investment to equity method [Line Items] | ||
| Equity method investment | $ 242 |
Interest in Other Entities (Details) - Schedule of allocation summary $ in Thousands |
Jun. 30, 2021
USD ($)
|
|---|---|
| ScoutCam Inc [Member] | |
| Interest in Other Entities (Details) - Schedule of allocation summary [Line Items] | |
| Cash consideration | $ 11,843 |
| Medigus Share in company Equity | 6,200 |
| Excess to Allocation | 5,643 |
| Excess purchase price to allocate to technology | 1,654 |
| Deferred tax | (380) |
| Goodwill | 4,369 |
| Total | 5,643 |
| Gix Internet Ltd [Member] | |
| Interest in Other Entities (Details) - Schedule of allocation summary [Line Items] | |
| Cash consideration | 3,690 |
| Adjusted Company’s Equity | 408 |
| Excess to Allocation | 3,282 |
| Excess purchase price to allocate to Customer relationship | 1,342 |
| Excess purchase price to allocate to technology | 1,948 |
| Deferred tax | (305) |
| Deferred tax | (210) |
| Goodwill | 507 |
| Total | $ 3,282 |
Interest in Other Entities (Details) - Schedule of summarized statement of comprehensive income - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|||
| ScoutCam Inc. [Member] | |||||||||
| Interest in Other Entities (Details) - Schedule of summarized statement of comprehensive income [Line Items] | |||||||||
| Revenue | $ 24 | $ 74 | $ 274 | ||||||
| Gross Loss | (179) | (207) | (133) | ||||||
| Operating Loss | (1,590) | (2,445) | (2,097) | ||||||
| Net Loss for the period | $ (1,606) | $ (2,383) | $ (2,088) | ||||||
| Eventer Technologies Ltd. [Member] | |||||||||
| Interest in Other Entities (Details) - Schedule of summarized statement of comprehensive income [Line Items] | |||||||||
| Revenue | [1] | $ 459 | $ 40 | ||||||
| Net Loss for the period | [1] | (1,215) | (490) | ||||||
| Net loss attributable to the NCI | [1] | (293) | $ (202) | ||||||
| Jeff’s Brands Ltd [Member] | |||||||||
| Interest in Other Entities (Details) - Schedule of summarized statement of comprehensive income [Line Items] | |||||||||
| Revenue | [1] | $ 1,910 | |||||||
| Net Loss for the period | [1] | (851) | |||||||
| Net loss attributable to the NCI | [1] | $ (382) | |||||||
| Gix Internet Ltd [Member] | |||||||||
| Interest in Other Entities (Details) - Schedule of summarized statement of comprehensive income [Line Items] | |||||||||
| Revenue | [1] | 16,348 | $ 18,017 | ||||||
| Gross Loss | [1] | 3,054 | 4,444 | ||||||
| Profit (loss for the period) | [1] | (870) | 262 | ||||||
| Other comprehensive loss | [1] | 185 | |||||||
| Total comprehensive profit (loss) | [1] | $ (685) | $ 262 | ||||||
| |||||||||
Interest in Other Entities (Details) - Schedule of described share purchase agreement - Eventer Technologies Ltd [Member] $ in Thousands |
Oct. 15, 2020
USD ($)
|
|---|---|
| Interest in Other Entities (Details) - Schedule of described share purchase agreement [Line Items] | |
| Cash consideration invested in Eventer | $ 750 |
| Fair value of earn-out | 69 |
| Difference between fair value and par value of loan extended to Eventer | 46 |
| Total consideration | 865 |
| Value acquired: | |
| Fair value of net tangible assets acquired | 751 |
| Non-controlling interest | (381) |
| Total acquired | 370 |
| Excess purchase price to allocate to technology and goodwill | $ 495 |
Interest in Other Entities (Details) - Schedule of summarized statement of cash flows - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|||
| Interest in Other Entities (Details) - Schedule of summarized statement of cash flows [Line Items] | ||||||
| Cash flow used in operating activities | $ 200 | $ 3 | ||||
| Cash flow used in investing activities | (97) | 43 | ||||
| Cash flow from financing activities | (325) | (337) | ||||
| Net increase in cash and cash equivalents | (222) | $ (383) | ||||
| Eventer Technologies Ltd [Member] | ||||||
| Interest in Other Entities (Details) - Schedule of summarized statement of cash flows [Line Items] | ||||||
| Cash flow used in operating activities | 874 | |||||
| Cash flow used in investing activities | (132) | |||||
| Cash flow from financing activities | 819 | |||||
| Net increase in cash and cash equivalents | $ 1,561 | |||||
| Jeff’s Brands Ltd [Member] | ||||||
| Interest in Other Entities (Details) - Schedule of summarized statement of cash flows [Line Items] | ||||||
| Cash flow used in operating activities | [1] | $ (347) | ||||
| Cash flow used in investing activities | [1] | 52 | ||||
| Cash flow from financing activities | [1] | 1,032 | ||||
| Net increase in cash and cash equivalents | [1] | $ 737 | ||||
| Gix Internet Ltd [Member] | ||||||
| Interest in Other Entities (Details) - Schedule of summarized statement of cash flows [Line Items] | ||||||
| Cash flow used in operating activities | [1] | $ (310) | ||||
| Cash flow used in investing activities | [1] | (4,729) | ||||
| Cash flow from financing activities | [1] | 4,899 | ||||
| Net increase in cash and cash equivalents | [1] | $ (140) | ||||
| ||||||
Interest in Other Entities (Details) - Schedule of summarizes the allocation of the preliminary purchase price - Jeff’s Brands Ltd [Member] $ in Thousands |
Jan. 04, 2021
USD ($)
|
|---|---|
| Interest in Other Entities (Details) - Schedule of summarizes the allocation of the preliminary purchase price [Line Items] | |
| Cash consideration invested in Jeff Brands | $ 1,400 |
| Non- cash consideration invested in Jeff Brands | 71 |
| Difference between fair value and par value of loan extended to Jeff Brands | 70 |
| Total consideration | 1,541 |
| Less: | |
| Fair value of net assets acquired | 2,049 |
| Non-controlling interest | (1,024) |
| Total acquired | 1,025 |
| Goodwill | $ 516 |
Interest in Other Entities (Details) - Schedule of software development, marketing and distribution to internet users - Gix Internet Ltd [Member] $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2021
USD ($)
| |
| Interest in Other Entities (Details) - Schedule of software development, marketing and distribution to internet users [Line Items] | |
| Name of entity | Gix Ltd |
| Place of business/country of incorporation | Israel |
| % of ownership interest | 33.17% |
| Nature of relationship | Associate |
| Measurement method | Equity method |
| Quoted fair value | $ 5,958 |
| Carrying amount | $ 5,290 |
Interest in Other Entities (Details) - Schedule of reconciliation to carrying amounts for Gix Internet $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2021
USD ($)
| |
| Schedule of reconciliation to carrying amounts for Gix Internet [Abstract] | |
| Investment according to eqity method at the beginning of the period | $ 1,013 |
| Purchase of Gix ordinary shares (exercise of Conversion Right) | 3,696 |
| Increase in capital reverse | 881 |
| Currency translation adjustments | (24) |
| Other Reserve | (76) |
| Share of net profit of associate accounted for using the equity method | (200) |
| Investment according to equity method at the end of the period | $ 5,290 |
Interest in Other Entities (Details) - Schedule of reconciliation to carrying amounts for Automax formerly known as Matomy - Automax Ltd [Member] $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2021
USD ($)
| |
| Interest in Other Entities (Details) - Schedule of reconciliation to carrying amounts for Automax formerly known as Matomy [Line Items] | |
| Investment as of January 01, 2021 Equity method | $ 546 |
| Held for sale asset | 547 |
| Total as of January 01, 2021 | 1,093 |
| Sale of held for sale asset | (102) |
| Share of net profit of associate accounted for using the equity method | 275 |
| Total amount as of March 9, 2021 | 1,266 |
| Eliminate investment held for sale and equity as a result of transition to fair value | (1,266) |
| Fair value of the investment at the day of the transition | 1,553 |
| Securities revaluation | 143 |
| End of the period in Fair value | $ 1,696 |
Interest in Other Entities (Details) - Schedule of details regarding the Purchase Price Allocation of Polyrizon - USD ($) $ in Thousands |
Mar. 09, 2021 |
Jul. 15, 2020 |
||||
|---|---|---|---|---|---|---|
| Current assets | ||||||
| Cash and cash equivalents | [1] | $ 121 | $ 10 | |||
| Acquired Equity | [1] | 42 | ||||
| Excess to allocate | [1] | 79 | ||||
| Loan | [1] | 94 | ||||
| Total currents assets | [1] | 104 | ||||
| Allocation | ||||||
| Consideration for other instruments | [1],[2] | 36 | ||||
| IP | [1] | 77 | 74 | |||
| Goodwill | [1] | 2 | ||||
| Shareholder loan | [1] | (6) | ||||
| Total allocated | [1] | $ 79 | $ 104 | |||
| ||||||
Inventory (Details) - Schedule of inventory - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Current assets: | ||
| Raw materials and supplies | $ 44 | |
| Finished goods | 1,087 | 278 |
| Provision for impairment | (79) | |
| Inventory | $ 1,087 | $ 243 |
Intangible Assets (Details) - Schedule of total intangible assets - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | $ 8,327 | $ 495 |
| Goodwill -Eventer [Member] | ||
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | 296 | 296 |
| Goodwill – Jeff’s Brands [Member] | ||
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | 516 | |
| Technology – Eventer [Member] | ||
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | 193 | 199 |
| Software License – Eventer [Member] | ||
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | 1,405 | |
| Patent – Charging Robotics [Member] | ||
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | 75 | |
| Brand name – Jeff’s Brands [Member] | ||
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | 1,363 | |
| Amazon stores- Jeff’s Brands [Member] | ||
| Intangible Assets (Details) - Schedule of total intangible assets [Line Items] | ||
| Total intangible assets | $ 4,479 |
Accrued Expenses and Other Liabilities (Details) - Schedule of accrued expenses and other liabilities - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Schedule of accrued expenses and other liabilities [Abstract] | ||
| Employees and related institutions | $ 229 | $ 584 |
| Accrued expenses | 580 | 665 |
| Other payables | 221 | 279 |
| Accrued expenses and other liabilities | $ 1,030 | $ 1,528 |
Equity (Details) ₪ / shares in Units, $ / shares in Units, ₪ in Thousands |
1 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Feb. 25, 2021
USD ($)
shares
|
Jan. 19, 2021
shares
|
Jan. 11, 2021
USD ($)
shares
|
Jul. 09, 2020
ILS (₪)
shares
|
May 22, 2020
USD ($)
$ / shares
shares
|
May 18, 2020
USD ($)
|
Jun. 30, 2021
shares
|
May 31, 2021
shares
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
shares
|
Sep. 30, 2020
shares
|
May 18, 2020
₪ / shares
|
Jun. 19, 2019
shares
|
|
| Equity (Details) [Line Items] | |||||||||||||
| Shares issued | 11,500,020 | 24,386,660 | 2,168,675 | ||||||||||
| Prefunded warrants to purchase shares | 55,166,660 | 1,539,656 | 1,219,333 | ||||||||||
| Purchase price per warrrant (in Dollars per share) | $ / shares | $ 1.499 | ||||||||||||
| Exercise price | (per share) | $ 0.001 | ₪ 0.59 | |||||||||||
| Issuance expenses, gross (in Dollars) | $ | $ 5,000,000 | ||||||||||||
| Net of issuance expenses (in Dollars) | $ | $ 4,400,000 | $ 700,000 | |||||||||||
| Shares allotted | 30,780,000 | ||||||||||||
| Authorized share capital | ₪ 750,000 | $ 750,000 | $ 1,500,000 | ||||||||||
| Vesting period | 3 years | 3 years | |||||||||||
| Options granted period | 6 years | 6 years | |||||||||||
| Shares exercisable, description | Each option is convertible into one share of common stock of the Company of NIS1. | ||||||||||||
| Authorized share capital increased to ordinary shares | 1,000,000,000 | ||||||||||||
| Board of Directors [Member] | |||||||||||||
| Equity (Details) [Line Items] | |||||||||||||
| Number of option grant | 25,600,000 | 25,600,000 | |||||||||||
| Public Offering [Member] | |||||||||||||
| Equity (Details) [Line Items] | |||||||||||||
| Total gross proceeds (in Dollars) | $ | $ 9,700,000 | $ 9,680,000 | |||||||||||
| ADS [Member] | |||||||||||||
| Equity (Details) [Line Items] | |||||||||||||
| Shares issued | 575,001 | ||||||||||||
| Purchase price (in Dollars per share) | $ / shares | $ 1.5 | ||||||||||||
| Prefunded warrants to purchase shares | 2,758,333 | ||||||||||||
| Public and existing shareholders, description | the Company entered into an underwriting agreement with Aegis pursuant to which the Company agreed to sell to Aegis, in a firm commitment public offering 3,258,438 ADSs for a public offering price of USD2.60 per ADS. | the Company entered into an underwriting agreement with Aegis Capital Corp. (hereinafter – “Aegis”), pursuant to which the Company agreed to sell to Aegis, in a firm commitment public offering 3,659,735 ADSs, representing a total of 73,194,700 ordinary shares, of no par value for a public offering price of USD2.30 per ADS. | |||||||||||
| ADS [Member] | Public Offering [Member] | |||||||||||||
| Equity (Details) [Line Items] | |||||||||||||
| Shares issued | 73,194,700 | ||||||||||||
| ADS issued on shares | 3,258,438 | 3,659,735 | |||||||||||
| Purchase additional percent of ADS | 15.00% | 15.00% | |||||||||||
| ADS [Member] | Over-Allotment Option [Member] | |||||||||||||
| Equity (Details) [Line Items] | |||||||||||||
| Purchase an additional ADS | 488,765 | 548,960 | |||||||||||
| Warrants C [Member] | |||||||||||||
| Equity (Details) [Line Items] | |||||||||||||
| Shares allotted | 3,940,000 | ||||||||||||
| Warrant Exercised | 197,000 | ||||||||||||
Revenues (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Disclosure of revenue [text block] [Abstract] | |
| Percentage of entity's revenue | 10.00% |
Revenues (Details) - Schedule of revenue by product - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
| Revenues (Details) - Schedule of revenue by product [Line Items] | |||
| Revenue | $ 2,393 | $ 73 | $ 531 |
| Miniature camera and related equipment [Member] | |||
| Revenues (Details) - Schedule of revenue by product [Line Items] | |||
| Revenue | 24 | 69 | 491 |
| Products [Member] | |||
| Revenues (Details) - Schedule of revenue by product [Line Items] | |||
| Revenue | 1,910 | 4 | |
| Revenues from commissions [Member] | |||
| Revenues (Details) - Schedule of revenue by product [Line Items] | |||
| Revenue | $ 459 | $ 40 | |
Revenues (Details) - Schedule of major customers - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
| Customer A [Member] | |||
| Revenues (Details) - Schedule of major customers [Line Items] | |||
| Revenue | $ 383 | ||
| Customer B [Member] | |||
| Revenues (Details) - Schedule of major customers [Line Items] | |||
| Revenue | 21 | 26 | |
| Customer C [Member] | |||
| Revenues (Details) - Schedule of major customers [Line Items] | |||
| Revenue | 24 | ||
| Customer D [Member] | |||
| Revenues (Details) - Schedule of major customers [Line Items] | |||
| Revenue | $ 9 | ||
Transactions with Related Parties (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
| Transactions with Related Parties (Details) [Line Items] | |||
| Annual premium of current policy | $ 653 | ||
| Policy Coverage Benefit | 7,000 | ||
| Bottom of Range [Member] | |||
| Transactions with Related Parties (Details) [Line Items] | |||
| Deductible not exceed in respect of claim with respect to mergers and acquisitions | 1,000 | ||
| Deductible not exceed in respect of claim with respect to mergers and acquisitions | 2,500 | ||
| Top of Range [Member] | |||
| Transactions with Related Parties (Details) [Line Items] | |||
| Deductible not exceed in respect of claim with respect to mergers and acquisitions | 5,000 | ||
| Payroll and related expenses to related parties employed by the Company [Member] | |||
| Transactions with Related Parties (Details) [Line Items] | |||
| Granted options benefit | 149 | $ 142 | $ 189 |
| Compensation to directors [Member] | |||
| Transactions with Related Parties (Details) [Line Items] | |||
| Granted options benefit | 173 | $ 517 | 734 |
| Consultant services [Member] | |||
| Transactions with Related Parties (Details) [Line Items] | |||
| Granted options benefit | $ 259 | $ 33 | |
Transactions with Related Parties (Details) - Schedule of transactions with related parties - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|||||||||
| Schedule of transactions with related parties [Abstract] | |||||||||||
| Payroll and related expenses to related parties employed by the Company* | [1] | $ 512 | $ 329 | $ 629 | |||||||
| Compensation to directors | [2] | 412 | 678 | 1,115 | |||||||
| Consultant services | [3] | 616 | 91 | 208 | |||||||
| Interest and discounting of loans from Jeff’s Brands related parties | [4] | 145 | |||||||||
| Revenues – deduct of commission of Eventer from related parties | (20) | ||||||||||
| G&A expenses of Eventer with related parties | $ 9 | ||||||||||
| |||||||||||
Transactions with Related Parties (Details) - Schedule of balances with related parties - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
| Schedule of balances with related parties [Abstract] | ||
| Related party prepaid expense - media Space from Keshet (a related party of eventer) see note 4. B. | $ 1,225 | |
| Other receivables (a related party of eventer and Jeff Brands) | 51 | |
| Current assets with related parties | 1,276 | |
| Compensation to key management personnel | 180 | 139 |
| Related party liability relating to license to use software from Screenz cross media Ltd (a related party of Eventer)- see note 4. B | 1,346 | |
| Current Liabilities of Jeff’s Brands to related parties | 330 | |
| Other Accrued expenses to related parties of Eventer | 33 | |
| Current liabilities with related parties | $ 1,889 | $ 139 |
Transactions with Related Parties (Details) - Schedule of loans - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
||
|---|---|---|---|---|
| Schedule of loans [Abstract] | ||||
| Current Liabilities of Long Term Loans of Jeff’s Brands from related parties | [1] | $ 101 | ||
| Long Term Loans of Jeff’s Brands from related parties | [1] | $ 733 | ||
| ||||
Subsequent Events (Details) - USD ($) |
1 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Sep. 02, 2021 |
Aug. 17, 2021 |
Jul. 26, 2021 |
Jun. 30, 2021 |
Aug. 31, 2021 |
|
| Subsequent Events (Details) [Line Items] | |||||
| Issued and outstanding share capital | 50.06% | ||||
| Restricted cash | $ 3,300,000 | ||||
| Shareholder raise amount | $ 800,000 | ||||
| Current hold percentage | 34.74% | ||||
| Subsequent Event [Member] | |||||
| Subsequent Events (Details) [Line Items] | |||||
| Investment | $ 297 | ||||
| Non binding letter of intent To acquire percentage | 100.00% | ||||
| Consideration to be paid | $ 6,000,000 | ||||
| Additional consideration | $ 13,250,000 | ||||
| Board of Directors [Member] | |||||
| Subsequent Events (Details) [Line Items] | |||||
| Buy back program amount | $ 2,000,000 | ||||