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Exhibit 99.1
 
Otonomo Technologies Ltd.
 
Interim Unaudited Condensed
Consolidated Financial Statements
 
As at June 30, 2023
(Unaudited)
 
Otonomo Technologies Ltd.
 
Interim Condensed Consolidated Financial Statements as at June 30, 2023 (Unaudited)
 
Contents
Page
  
F-3
  
F-4
  
F-5
  
F-6
  
F-7
 
F - 2
Otonomo Technologies Ltd.
 
Interim Unaudited Condensed Consolidated Balance Sheets
(in USD thousands, except share and per share data)
 
   
June 30
    
December 31
  
   
2023
    
2022
  
   
Unaudited
    
Audited
  
             
Assets
            
             
Current assets
            
Cash and cash equivalents
    
19,867
      
22,448
  
Short-term restricted cash
    
298
      
346
  
Short-term deposits
    
42,309
      
62,262
  
Marketable securities
    
56,733
      
55,587
  
Trade receivables, net
    
865
      
1,271
  
Other receivables and prepaid expenses
    
1,166
      
3,043
  
Total current assets
    
121,238
      
144,957
  
                 
Non-current assets
                
Other long-term assets
    
432
      
606
  
Property and equipment, net
    
838
      
1,043
  
Operating lease right-of-use assets, net
    
1,628
      
2,040
  
Total non-current assets
    
2,898
      
3,689
  
                 
Total assets
    
124,136
      
148,646
  
                 
Liabilities and Shareholders' Equity
                
                 
Current liabilities
                
Account payables
    
827
      
1,020
  
Other payables and accrued expenses
    
5,246
      
10,958
  
Deferred revenue
    
232
      
216
  
Current portion of operating lease liabilities
    
642
      
729
  
Current portion of contingent consideration
    
2,972
      
165
  
Total current liabilities
    
9,919
      
13,088
  
                 
Non-Current liabilities
                
Warrants for ordinary shares
    
104
      
155
  
Operating lease liabilities, less current portion
    
852
      
1,225
  
Contingent consideration, less current portion
    
-
      
746
  
Other non-current liabilities
    
-
      
4
  
Total non-current liabilities
    
956
      
2,130
  
                 
Total liabilities
    
10,875
      
15,218
  
                 
Shareholders’ equity:
                
Ordinary shares, no par value; 30,000,000 shares authorized as of
                
June 30, 2023, and December 31, 2022; 9,650,266 and 9,458,682 shares issued
                
 and outstanding as of June 30, 2023 and December 31, 2022, respectively;
    
-
      
-
  
Additional paid-in capital
    
373,658
      
370,412
  
Accumulated other comprehensive loss
    
(5,466
)
    
(4,850
)
Accumulated deficit
    
(254,931
)
    
(232,134
)
Total shareholders’ equity
    
113,261
      
133,428
  
                 
Total liabilities and Shareholders' Equity
    
124,136
      
148,646
  
 
The accompanying notes are an integral part of the interim unaudited condensed consolidated financial statements.
 
F - 3
Otonomo Technologies Ltd.
 
Interim Unaudited Condensed Consolidated Statements of Comprehensive Loss
(in USD thousands, except share and per share data)
 
   
Six-month
    
Six-month
  
   
period ended
    
period ended
  
   
June 30
    
June 30
  
   
2023
    
2022
  
Revenues
    
3,465
      
2,951
  
                 
Costs and operating expenses:
                
Cost of services
    
1,644
      
1,341
  
Cloud infrastructure
    
1,289
      
2,492
  
Research and development
    
6,205
      
10,656
  
Sales and marketing
    
6,512
      
10,503
  
General and administrative
    
10,908
      
11,072
  
Depreciation and amortization
    
148
      
1,728
  
Contingent consideration expense (income)
    
2,061
      
(1,541
)
Impairment of Goodwill
    
-
      
37,000
  
Impairment of intangible assets
    
-
      
8,785
  
Total costs and operating expenses
    
28,767
      
82,036
  
                 
Operating loss
    
(25,302
)
    
(79,085
)
                 
Financial income, net
    
2,581
      
428
  
                 
Loss before income tax expense
    
(22,721
)
    
(78,657
)
                 
Income tax expense
    
(76
)
    
(280
)
                 
Net loss for the period
    
(22,797
)
    
(78,937
)
                 
Net loss per share attributable to ordinary shareholders, basic and diluted
    
(2.39
)
    
(8.72
)
                 
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted
    
9,558,418
      
9,048,392
  
                 
Net loss for the period
    
(22,797
)
    
(78,937
)
Other comprehensive loss, net of tax:
                
Foreign currency translation adjustments
    
(462
)
    
(2,388
)
Unrealized gains on available-for-sale marketable securities, net
    
(154
)
    
-
  
                 
Total comprehensive loss for the period
    
(23,413
)
    
(81,325
)
 
The accompanying notes are an integral part of the interim unaudited condensed consolidated financial statements.
 
F - 4
Otonomo Technologies Ltd.
 
Interim Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity
(in USD thousands, except share and per share data)
 
   
Ordinary shares
    
Additional
paid-in capital
   
Accumulated
deficit
   
Accumulated other
comprehensive loss
   
Total
equity
  
   
Number of Shares
    
USD thousands
    
USD thousands
    
USD thousands
    
USD thousands
    
USD thousands
  
Balance as of December 31, 2022
    
9,458,682
      
-
      
370,412
      
(232,134
)
    
(4,850
)
    
133,428
  
                                                 
Issuance of shares in connection with stock-based compensation plans
    
191,584
      
-
      
69
      
-
      
-
      
69
  
                                                 
Share based compensation
    
-
      
-
      
3,177
      
-
      
-
      
3,177
  
                                                 
Comprehensive loss
    
-
      
-
      
-
      
(22,797
)
    
(616
)
    
(23,413
)
                                                 
Balance as of June 30, 2023
    
9,650,266
      
-
      
373,658
      
(254,931
)
    
(5,466
)
    
113,261
  
 
Balance as of January 1, 2022
    
8,814,316
            
349,825
      
(101,062
)
    
-
      
248,763
  
                                               
Shares issued related to the business acquisitions
    
430,806
      
-
      
10,691
      
-
      
-
      
10,691
  
                                                 
Issuance of shares in connection with stock-based compensation plans
    
83,787
      
-
      
135
      
-
      
-
      
135
  
                                                 
Share based compensation
    
-
      
-
      
4,881
      
-
      
-
      
4,881
  
                                                 
Comprehensive loss
    
-
      
-
      
-
      
(78,937
)
    
(2,388
)
    
(81,325
)
                                                 
Balance as of June 30, 2022
    
9,328,909
      
-
      
365,532
      
(179,999
)
    
(2,388
)
    
183,145
  
 
The accompanying notes are an integral part of the interim unaudited condensed consolidated financial statements.
 
F - 5
Otonomo Technologies Ltd.
 
Interim Unaudited Condensed Consolidated Statements of Cash Flows
(in USD thousands, except share and per share data)
 
   
Six-month
    
Six-month
  
   
period ended
    
period ended
  
   
June 30
    
June 30
  
   
2023
    
2022
  
Cash flows from operating activities
            
Net loss
    
(22,797
)
    
(78,937
)
                 
Adjustments to reconcile net loss to net cash
 used in operating activities:
                
  Depreciation and amortization
    
148
      
1,728
  
  Share based compensation
    
3,177
      
4,881
  
  Revaluation of warrants
    
(51
)
    
(1,451
)
  Impairment of Goodwill
    
-
      
37,000
  
  Impairment of intangible assets
    
-
      
8,785
  
  Contingent consideration expense (income)
    
2,061
      
(1,541
)
  Deferred tax expense (benefit)
    
(23
)
    
(12

)
  Interest income and foreign currency translation loss
    
(1,432

)

    
804
  
  Other
    
(2
)
    
-
  
                 
Changes in operating assets and liabilities:
                
  Trade receivables, net
    
424
      
(141
)
  Other receivables and prepaid expenses
    
1,427
      
1,279
  
  Other payables and accrued expenses
    
(5,764
)
    
1,085
  
  Account payables
    
(205
)
    
319
  
  Other assets and liabilities
    
150
      
(306
)
                 
Net cash used in operating activities
    
(22,887
)
    
(26,507
)
                 
Cash flows from investing activities
                
Proceeds from sale of property and equipment
    
71
      
-
  
Purchases of property and equipment
    
-
      
(137
)
Proceeds from short-term bank deposits, net
    
20,417
      
(98
)
Other long-term assets, net
    
-
      
(95
)
Payments for business acquisitions, net of cash acquired
    
-
      
(11,020
)
                 
Net cash provided by (used in) investing activities
    
20,488
      
(11,350
)
                 
Cash flows from financing activities
                
Proceeds from exercise of share options and warrants
    
69
      
135
  
                 
Net cash provided by financing activities
    
69
      
135
  
                 
Foreign currency effect on cash and cash equivalents and short-term restricted cash
    
(299
)
    
(886
)
                 
Net increase (decrease) in cash and cash equivalents and short-term restricted cash
    
(2,629
)
    
(38,608
)
                 
Cash and cash equivalents and short-term restricted cash at
                
the beginning of the period
    
22,794
      
208,079
  
                 
Cash and cash equivalents and short-term restricted cash
                
at the end of the period
    
20,165
      
169,471
  
                 
Appendix A – Material non-cash financing activities:
                
Shares issued related to the business acquisitions
    
-
      
10,691
  
 
The accompanying notes are an integral part of the interim unaudited condensed consolidated financial statements.
 
F - 6
Otonomo Technologies Ltd.
 
Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 1 - General
 
  A.
Otonomo Technologies Ltd. (together with its subsidiaries, “Otonomo”, or the “Company”) was incorporated as an Israeli corporation in December 2015. The Company provides an automotive data service platform enabling car manufacturers, drivers, insurance carriers and service providers to be part of a connected ecosystem as well as mobility intelligence which transforms vast amounts of anonymized data and activity signals into actionable, impactful, and valuable insights.
 
On February 9, 2023, the Company and Urgent.ly, Inc. (“Urgently”), a provider of digital roadside and mobility assistance technology and services, entered into a definitive agreement to merge and the Company will become a wholly owned subsidiary of Urgently. Upon closing of the transaction, holders of the Company’s ordinary shares will receive common stock of Urgently. The Company’s shareholders and other equity holders will own, in the aggregate, approximately 33% of the combined company on a fully diluted basis, subject to the determination of the final exchange ratio pursuant to the terms set forth in the definitive agreement. The transaction is expected to close in the third or fourth quarter of 2023, subject to the approval of the Company’s shareholders and the satisfaction of other customary closing conditions.
 
  B.
In the six months ended June 30, 2023, the Company sunsetted its connected vehicle data services (“CVD services”), which included services relating to multi-layered data, standardized and blurred to remove identifiers. The sunsetting of CVD services resulted in a further workforce reduction. The Company concluded that the services were not considered as a component according to ASC 205 and therefore were not considered as a discontinued operation.
 
  C.
On August 3, 2023, the Company executed a 1-for-15 reverse share split of its Ordinary Shares. As a result of the reverse share split, every 15 issued and outstanding Ordinary Shares were automatically converted into one Ordinary Share. The reverse share split is intended to increase the per share trading price of the Ordinary Shares to enable the Company to regain compliance with the minimum bid price requirement in Nasdaq Listing Rule 5450(a)(1). As a result of the reverse share split, all Ordinary Shares, convertible preferred shares and options for Ordinary Shares, exercise price per share, and net loss per share amounts were adjusted retroactively for all periods presented throughout this document. The number of Ordinary Shares underlying the warrants were adjusted retroactively for all periods presented in these financial statements as a result of the reverse share split. The number of options and restricted share units outstanding and the number of Ordinary Shares underlying the options and restricted share units were adjusted retroactively for all periods presented in these financial statements as a result of the reverse share split.

 

F - 7

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 2 - Summary of Significant Accounting Policies

 

A.          Basis of Preparation
 
The accompanying interim unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In management’s opinion, the interim financial data presented includes all adjustments necessary for a fair statement. All intercompany accounts and transactions have been eliminated. Operating results for the six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2023.
 
These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2022.
 
B.          Use of Estimates
 
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences may have a material impact on the Company’s financial statements. As applicable to these consolidated financial statements, the most significant estimate relates to the fair value of contingent consideration.
 
C.          Significant Accounting Policies
 
The Company’s significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report for the year ended December 31, 2022.
 
D.          Foreign currencies
 
The functional currency of the Company is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standard Codification ("ASC") Topic 830 "Foreign Currency Matters." All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses, as appropriate.

 

F - 8

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 3 - Segments
 
Otonomo operates its business and reports its financial results in two segments:
 
  (a)
Connected Vehicles – connected vehicle data platform, which provides customers access to vehicle data and other value-added services (“Connected Vehicle”), complemented by Mobility Intelligence platform (“MI services”).
  (b)
Insurance related Services – connected insurance technology to insurance carriers, comprised of The Floow acquired activity.
 
The chief operating decision maker (“CODM”) reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues and contributed profit by the two identified reportable segments, to make decisions about resources to be allocated to the segments and assess their performance.
 
Otonomo’s CODM does not regularly review asset information by reportable segment and, therefore, Otonomo does not report asset information by reportable segment.
 
Segment loss is comprised of operating loss and does not include amortization, depreciation and certain other items.
 
  A.
Segment information
 
   
Six-month period ended June 30, 2023
  
   
Connected
Vehicles
    
Insurance
related
Services
    
 
 
Total
  
   
USD thousands
    
USD thousands
    
USD thousands
  
   

(Unaudited)

  
Revenues
    
395
      
3,070
      
3,465
  
Segment loss
    
(16,581
)
    
(3,335
)
    
(19,916
)
                         
Amounts not allocated to segments:
                        
Depreciation and amortization
                    
(148
)
Contingent consideration expense
                    
(2,061
)
Share-based compensation
                    
(3,177
)
Operating loss
                    
(25,302
)
Financial income, net
                    
2,581
  
Loss before income tax expense
                    
(22,721
)
 

F - 9

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 3 - Segments (cont'd)
 
  A.
Segment information (cont’d)

 

   
Six-month period ended June 30, 2022
  
   
 
Connected
Vehicles
    
Insurance
related
Services
    
 
 
Total
  
   
USD thousands
    
USD thousands
    
USD thousands
  
   

(Unaudited)

  
Revenues
    
1,794
      
1,157
      
2,951
  
Segment loss
    
(26,350
)
    
(1,882
)
    
(28,232
)
                         
Amounts not allocated to segments:
                        
Depreciation and amortization
                    
(1,728
)
Contingent consideration expense
                    
1,541
  
Impairment of Goodwill
                    
(37,000
)
Impairment of intangible assets
                    
(8,785
)
Share-based compensation
                    
(4,881
)
Operating loss
                    
(79,085
)
Financial income, net
                    
428
  
Loss before income tax expense
                    
(78,657
)
 
  B.
Revenue by geographical region of the Company’s customers
 
   
Six-month
    
Six-month
  
   
period ended
    
period ended
  
   
June 30
    
June 30
  
   
2023
    
2022
  
   
USD thousands
    
USD thousands
  
   

(Unaudited)

  
Americas
    
1,590
      
1,316
  
APAC
    
68
      
60
  
EMEA
    
1,807
      
1,575
  
                 
Total revenues
    
3,465
      
2,951
  
 

F - 10

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 3 - Segments (cont'd)
 
  C.
Number of customers accounted for over 10% of the revenues
 
For the six-month period ended June 30, 2023, the Company had two customers that accounted for 18% and 25% respectively, of its revenues. For the six-month period ended June 30, 2022, the Company had two customers that accounted for 14% and 12% respectively, of its revenues.

 

Note 4 - Fair Value Measurement
 
The Company's financial assets and liabilities measured at fair value on a recurring basis, consisted of the following types of instruments:
 
   
June 30, 2023
    
December 31, 2022
  
   
Level 1
    
Level 2
    
Level 3
    
Level 1
    
Level 2
    
Level 3
  
   
USD thousands
  
   
(Unaudited)
  
Money Market funds (1)
    
507
      
-
      
-
      
447
      
-
      
-
  
U.S. Treasury securities (1)
    
2,267
      
-
      
-
      
4,197
      
-
      
-
  
Corporate bonds (1)
    
-
      
25,213
      
-
      
-
      
32,516
      
-
  
Commercial papers (1)
    
-
      
11,928
      
-
      
-
      
7,030
      
-
  
U.S. government agency securities (1)
    
-
      
16,564
      
-
      
-
      
9,399
      
-
  
Foreign bonds (1)
    
-
      
-
      
-
      
-
      
1,700
      
-
  
Contingent consideration (2)
    
-
      
-
      
(2,972
)
    
-
      
-
      
(911
)
Warrants for ordinary shares (3)
    
-
      
-
      
(104
)
    
-
      
-
      
(155
)
     
2,774
      
53,705
      
(3,076
)
    
4,644
      
50,645
      
(1,066
)
 
  (1)
The following tables summarize the composition of marketable securities as of June 30, 2023:
 
   
June 30, 2023
  
   
Amortized Cost
    
Unrealized Gain/Losses
    
Fair Value
  
   
USD thousands
  
   
(Unaudited)
  
Money market funds
    
507
      
-
      
507
  
Available-for-sale debt securities
                        
  Corporate bonds
    
25,335
      
(122
)
    
25,213
  
  Commercial papers
    
11,928
      
-
      
11,928
  
  U.S. government agency securities
    
16,655
      
(91
)
    
16,564
  
  U.S. Treasury securities
    
2,272
      
(5
)
    
2,267
  
Total
    
56,190
      
(218
)
    
55,972
  
     
56,697
      
(218
)
    
56,479
  
 
Accrued interest in an amount of $254 thousand are included in marketable securities on the consolidated balance sheets as of June 30, 2023.
 
The following table summarizes the fair value and amortized cost of the available-for-sale debt securities by contractual maturity as of June 30, 2023:
 
   
June 30, 2023
  
   
Amortized Cost
    
Fair Value
  
   
USD thousands
  
   
(Unaudited)
  
Due within one year
    
48,054
      
47,911
  
Due after one year through two years
    
8,136
      
8,061
  
Total
    
56,190
      
55,972
  
 

F - 11

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 4 - Fair Value Measurement (cont'd)

 
  (2)
Contingent consideration represents liabilities recorded at fair value in connection with acquisitions, and thus represents a level 3 measurement within the fair value hierarchy.
 
The following table sets forth a summary of the changes in the fair value of the contingent consideration:
 
   
USD thousands
  
   
(Unaudited)
  
Fair value as of January 1, 2023
    
911
  
Change in fair value
    
2,061
  
Fair value as of June 30, 2023
    
2,972
  
 
As of June 30, 2023, the Company evaluated the contingent consideration based on updated revenue growth assumptions, the Company’s ordinary shares fair value, and predominantly on the probability of the merger with Urgently Inc., resulting with an increase in the liability for contingent consideration of $2,061 thousand during the six-month period ended June 30, 2023.
 
  (3)
In connection with the recapitalization, on August 13, 2021, the Company issued 5,200,000 private warrants, each exercisable to 1/15 ordinary share of the Company. The warrants were classified as a liability measured at fair value, with changes in fair value each period reported in the consolidated statements of operations. Refer to note 6.
 
Other financial instruments consist mainly of cash and cash equivalents, deposits, receivables, and accounts payable. The fair value of these financial instruments approximates their carrying values.

 

Note 5 - Share-Based Compensation
 
Share Options
 
A summary of the stock option activity is as follows:
 
   
Number of
Options
   
Weighted Average
exercise price
 
Outstanding - Balance at January 1, 2023
    
535,737
    
$
10.05
  
Forfeited
    
(40,958
)
  
$
10.15
  
Exercised
    
(72,777
)
  
$
0.89
  
                 
Outstanding - Balance at June 30, 2023
    
422,002
    
$
11.67
  

 

F - 12

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 5 - Share-Based Compensation (cont'd)
 
Restricted Share Units ("RSU")
 
A summary of RSU activity and related information under the Company's equity incentive plan and the RSU award is as follows:
 
         
Weighted Average
  
   
Number of
    
Grant Date
  
   
RSUs
    
Fair Value
  
Unvested Balance at January 1, 2023
    
704,350
    
$
24.75
  
Granted *
    
143,620
    
$
6.04
  
Vested
    
(118,807
)
  
$
36.02
  
Forfeited
    
(372,454
)
  
$
22.30
  
               
Unvested Balance at June 30, 2023
    
356,709
    
$
20.00
  
 
  *
The RSU awards generally vest over four years, with no exercise price.

 

The share-based compensation expenses by line item in the accompanying condensed consolidated statements of comprehensive loss is summarized as follows:

 

   
Six-months
    
Six-months
  
   
period ended
    
period ended
  
   
June 30
    
June 30
  
   
2023
    
2022
  
   
USD thousand
    
USD thousand
  
Cost of services
    
31
      
13
  
Research and development
    
502
      
1,138
  
Sales and marketing
    
962
      
1,467
  
General and administrative
    
1,682
      
2,263
  
                 
     
3,177
      
4,881
  

 

Note 6 - Warrants for Ordinary Shares
 
The Fair value of the Warrants:
 
   
June 30
    
December 31
  
   
2023
    
2022
  
             
Value of warrant per share
  
$
0.30
    
$
0.45
  
Number of ordinary shares issuable upon exercise of warrants
    
346,667
      
346,667
  
Fair value of warrant liability (in USD thousand)
  
$
104
    
$
155
  
 
For the period ended June 30, 2023, the Company recorded a financial expense of $51 thousand to the condensed consolidated statements of comprehensive loss as part of the financial income, net, relating to the warrant’s fair value increased in the period.
 

F - 13

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 6 - Warrants for ordinary shares (cont'd)

 

The Black-Scholes assumptions used to value the private warrants are as follows:
 
   
June 30
    
December 31
  
   
2023
    
2022
  
Volatility
    
90.2
%
    
89.1
%
Risk-free interest rate
    
4.46
%
    
4.1
%
Expected dividends
    
0.0
%
    
0.0
%
Expected life (in years)
    
3.12
      
3.62
  

 

Note 7 - Net Loss Per Share Attributable to Ordinary Shareholders
 
The following table sets forth the computation of basic and diluted net loss per share attributable to ordinary shareholders for the periods presented:
 
   
Six-months
    
Six-months
  
   
period ended
    
period ended
  
   
June 30
    
June 30
  
   
2023
    
2022
  
   
In USD thousands, except share data
  
             
Numerator:
            
Net loss
    
(22,797
)
    
(78,937
)
                 
Denominator:
                
Weighted-average shares used in computing net loss per share
                
 attributable to ordinary shareholders, basic and diluted
    
9,558,418
      
9,048,392
  
                 
Net loss per share attributable to ordinary shareholders, basic
                
 and diluted
    
(2.39
)
    
(8.72
)

 

Since the Company incurred net losses for each of the periods presented, diluted net loss per share is the same as basic net loss per share. All of the Company’s outstanding stock options and RSUs, as well as the warrants, were excluded in the calculation of diluted net loss per share as the effect would be anti-dilutive.

 

F - 14

Otonomo Technologies Ltd.

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

 

Note 8 - Subsequent events

 

  A.
Exchange Offer and Consent Solicitation
 
On July 24, 2023, the Company announced that it had commenced an exchange offer and consent solicitation relating to its outstanding warrants. On August 23, 2023, the Company announced the expiration and results of its exchange offer and consent solicitation relating to its outstanding warrants. The Company has been advised that 5,496,433 public warrants, or approximately 63.7% of the outstanding public warrants, and 5,200,000 private placement warrants, representing all of the outstanding private placement warrants, were validly tendered and not withdrawn prior to the expiration of the offer and consent solicitation. The Company expects to accept all validly tendered warrants in exchange for 0.0167 ordinary shares per warrant on or before August 25, 2023.

 

In addition, pursuant to the consent solicitation, the Company received approval from the holders of a majority of the public warrants of an amendment to the warrant agreement governing the warrants (the “Warrant Amendment”). On August 23, 2023, the Company executed the Warrant Amendment and announced that it will exercise its right, in accordance with the terms of the Warrant Amendment, to exchange all remaining untendered warrants for ordinary shares at an exchange ratio of 0.01503 ordinary shares for each warrant. The Company has fixed the date for such exchange as September 7, 2023.

 
  B.
Headquarters office lease 

 

On July 3, 2023, the Company amended its headquarters lease agreement as part of the Cost Reduction Initiative. The leased space and the lease payments were reduced by half, down to 745.5 sqm. This lease agreement covers the third quarter of 2023 with an option to extend until September 30, 2024, with a 30-day notice.

 

F - 15