REG - Ethernity Networks - Interim Results
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RNS Number : 4767B Ethernity Networks Ltd 30 September 2025
30 September 2025
Ethernity Networks Ltd.
("Ethernity" or the "Company")
Interim results for the six months ended 30 June 2025
Ethernity Networks Ltd (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of
data processing and PON semiconductor technology for networking appliances,
today announces its interim results for the six months ended 30 June 2025.
Key Highlights:
· Revenue of $598,599 (H1 2024: $582,008)
· Gross profit of $598,599 (H1 2024: $566,602)
· Gross margin of 100% (H1 2024: 97.4%)
· Net comprehensive loss for the period decreased by 40% to $2,124,278
(H1 2024: $3,538,014)
· EBITDA and Adjusted EBITDA loss decreased by 35.8% and 28.4% to
$1,021,118 and $1,186,414 respectively (H1 2024: $1,590,542 and $1,657,094)
· Cash Collection during the period of approximately $772,000
Chief Executive Officer's statement
The majority of the revenue during H1 2025 was an attribute to the deliveries
of the extended order and the original contract signed with the Tier 1 U.S
Aerospace vendors, at a total value of approximately $1.3m. The Company had
completed all deliveries under the original contract and the extended order by
the end of August 2025, and plans to pursue further engagement with the
customer, leveraging its domain expertise in the aerospace and aviation
sectors.
Over the past few months, Ethernity has been progressing the ASIC
opportunities detailed in previous announcements, most recently in the
business update on 24 July 2025. The Company previously indicated that it
continues to engage with a leading wireless backhaul OEM on various execution
strategies of the ASIC plan, with a goal to converge on the best joint route
for execution. The Company has now decided to de-risk its ASIC plan by
shifting from an OEM co-funded model to a semiconductor partnership model,
supported by interest from leading wireless vendors. Under this approach, the
Company would partner with a semiconductor vendor who would fund the full ASIC
cost, meaning Ethernity would not be required to raise the millions of dollars
upfront to co-fund the development costs. Instead, Ethernity would receive
non-recurring engineering ("NRE") income for its role in the development,
along with a future revenue share. Execution of such a plan with a lead
semiconductor vendor would enable Ethernity to achieve near-term positive cash
flow and profitability, in contrast to the years of investment required under
the previous model.
The Company has commenced discussions for this model with a lead semiconductor
vendor operating in the mobile and broadband market, and will continue to
update the market should these opportunities materialize into a contract.
Notwithstanding the fact that the shift to a possible partnership with
semiconductor partner would not require the significant fundraising that was
necessary under the original ASIC plan, the Company still has an immediate
cash requirement to continue operating as a going concern. The Board is
actively exploring ways to address this and further announcements will be made
as appropriate.
By order of the Board
David Levi
CEO
30 September 2025
For further information, please contact:
Ethernity Networks Ltd Tel: +972 3 748 9846
David Levi, Chief Executive Officer
Tomer Assis, Chief Financial Officer
Allenby Capital Limited (Nominated Adviser and Joint Broker) Tel: +44 (0)20 3328 5656
James Reeve / Piers Shimwell (Corporate Finance)
Amrit Nahal / Stefano Aquilino (Sales and Corporate Broking)
CMC Markets UK plc (Joint Broker) Tel: +44 (0)20 3003 8632
Douglas Crippen
Peterhouse Capital Limited (Joint Broker) Tel: +44 (0)20 7562 0930
Lucy Williams / Duncan Vasey
About Ethernity (www.ethernitynet.com)
Ethernity Networks, headquartered in Israel, Ethernity Networks (AIM: ENET.L
OTCMKTS: ENETF) provides innovative data processing and Passive Optical
Network ("PON") semiconductor technology for networking appliances. The
Company's comprehensive networking and security solutions deliver a Carrier
Ethernet Switch Router data plane and control software, featuring a rich set
of networking capabilities, robust security, and a wide array of virtual
function accelerations to optimize telecommunications networks.
OPERATIONAL AND FINANCIAL REVIEW
Revenues
Revenues for the period were $598,599 (H1 2024: $582,008), with the majority
attributed to the tier 1 U.S Aerospace contract.
Gross profit and margin
During the period, the Company focused on sales with a 100% gross margin
resulting from licensing fees or royalties, and refrained from taking any
commitment that would require pre-purchasing of components or pre-production
based on future orders, with its main goal being to minimise any cash flow
risks.
The gross profit of $598,599 increased by 5.6% compared with the previous year
(H1 2024: $566,602), and the gross margin increased to 100% (H1 2024: 97.4%).
EBITDA
Although EBITDA is not a recognised reportable accounting measure, it provides
a meaningful insight into the operations of the Company when removing the
non-cash or intangible asset elements from trading results along with
recognising actual costs versus various IFRS adjustments, in this case being
the amortisation and non-cash items charged in operating income and the
effects of IFRS 16 treatment of operational leases.
The EBITDA for the six months ended 30 June 2025 is presented as follows:
EBITDA Six months ended 12 months ended Six months change of 2025 vs 2024
(US Dollars)
30-Jun-2025 30-Jun-2024 31-Dec-2024 %
Revenues 598,599 582,008 1,383,565 16,591 2.9%
Gross Profit 598,599 566,602 1,274,826 31,997 5.6%
Gross Margin % 100.00% 97.4% 92.1% 2.6%
Operating Loss (1,796,978) (2,397,002) (5,089,505) 600,024 (25.0%)
Amortisation of Intangible Assets 480,690 480,690 961,380 -
Depreciation charges on fixed assets 127,970 158,570 315,532 (30,600)
Depreciation in respect of IFRS16 lease assets 167,200 167,200 334,400 -
EBITDA (1,021,118) (1,590,542) (3,478,193) 569,424 (35.8%)
Add back Share based compensation charges 57,494 140,900 212,680 (83,406)
Add back impairments - - 140,843 -
Add back vacation accrual charges - 9,540 27,954 (9,540)
Adjust IFRS16 rent expense reversals (222,790) (216,992) (216,479) (5,798)
Adjusted EBITDA (1,186,414) (1,657,094) (3,313,195) 470,680 (28.4%)
EBITDA loss for the first six-month period of the year decreased by 35.8% to
$1,021,118 (H1 2024: $1,590,542). The Adjusted EBITDA loss in the first six
months of the year decreased by 28.4% to $1,186,414 (H1 2024: $1,657,094).
Operating costs
Operating expenses (before amortisation, depreciation and IFRS adjustments)
decreased by an overall 19.7% from $2,223,696 to $1,785,655 during the period
against the same period in 2024.
Within the R&D division, the Company reduced its operating expenses
(including headcount and other R&D expenses) by a total of 20.1%.
General and Administration costs (before amortisation, depreciation and IFRS
adjustments) have decreased by 17.7%, also mainly attributed to headcount
savings.
The decrease in Marketing expenses (net of share-based compensation and
vacation accruals) of 23.1% is also mainly attributed to headcount savings.
After adjusting for the following non-cash items; amortisation costs of the
development intangible asset, depreciation, share based compensation
adjustments and IFRS adjustments, the resultant decreases in operating costs,
as adjusted are:
Operating costs Increase (Decrease) June %
(US Dollars)
Six months ended 12 months ended 31-Dec
30-Jun
2025 2024 2024
Research and Development Costs net of amortisation, Share Based Compensation, 974,673 1,220,252 2,547,565 (245,579) (20.1%)
IFRS adjustments and Vacation accruals
General and Administrative expenses, net of depreciation, Share Based 596,287 724,132 1,291,485 (127,845) (17.7%)
Compensation, IFRS adjustments, Vacation accruals and impairments
Marketing expenses, net of Share Based Compensation and Vacation accruals 214,695 279,312 532,732 (64,617) (23.1%)
Total 1,785,655 2,223,696 4,371,782 (438,041) (19.7%)
Summarised trading results
Summarised Trading Results Increase (Decrease) June %
(US Dollars)
Six months ended 31-Dec
30-Jun
2025 2024 2024
Revenues 598,599 582,008 1,383,565 (16,591) 2.9%
Gross Profit 598,599 566,602 1,274,826 (31,997) 5.6%
Gross Margin % 100.00% 97.4% 92.1% 2.6%
Operating Loss (1,796,978) (2,397,002) (5,089,505) (600,024) (25.0%)
Financing costs (327,339) (1,202,765) (770,645) (875,426)
Financing income (expenses) 39 61,753 27,441 61,714
Net comprehensive loss for the year (2,124,278) (3,538,014) (5,832,709) (1,413,736) (40.0%)
Basic and Diluted earnings per ordinary share (0.00) (0.01) (0.01) (0.01) (93.8%)
Weighted average number of ordinary shares for basic earnings per share 3,731,471,356 385,600,025 550,797,251
Financing costs
The majority of the financing costs recognised during the period relate to the
equity raise in May 2025 and exchange rate differences. Refer to note 4 3
below which discusses the accounting treatment applied in this regard.
Going Concern
Based on the major cut in expenses and the move to a proposed semiconductor
partnership model for the Company's ASIC plan, as well as bearing in mind the
ability and success of the Company to raise funds previously, the Directors
have a reasonable expectation that the Company will have access to adequate
resources to continue in operational existence for the foreseeable future and
therefore have adopted the going concern basis of preparation in the financial
statements. Notwithstanding this, the Company has an immediate cash
requirement and the Board is actively exploring ways to address this.
FORWARD LOOKING STATEMENTS
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". By their nature, forward-looking statements
involve risk and uncertainty since they relate to future events and
circumstances. Actual results may, and often do, differ materially from any
forward-looking statements. Any forward-looking statements in this
announcement reflect Ethernity's view with respect to future events as at the
date of this announcement. Save as required by law or by the AIM Rules for
Companies, Ethernity undertakes no obligation to publicly revise any
forward-looking statements in this announcement, following any change in its
expectations or to reflect events or circumstances after the date of this
announcement.
By order of the Board
Tomer Assis
Chief Financial Officer
30 September 2025
Interim Unaudited Financial Statements
as at 30 June 2025
STATEMENT OF FINANCIAL POSITION
US dollars
30 June 31 December
2025 2024 2024
Unaudited Audited
ASSETS
Current
Cash and cash equivalents 37,749 580,711 50,713
Other short-term financial assets 2,938 - -
Trade receivables 189,929 459,209 385,000
Inventories 218,168 411,035 218,168
Other current assets 127,250 381,144 132,836
Current assets 576,034 1,832,099 786,717
Non-Current
Property and equipment 477,670 663,014 605,895
Intangible asset 3,059,350 4,020,730 3,540,040
Right-of-use asset 674,350 1,008,750 841,550
Other long term assets 118,905 107,274 110,678
Non-current assets 4,330,275 5,799,768 5,098,163
Total assets 4,906,309 7,631,867 5,884,880
LIABILITIES AND EQUITY
Current
Trade payables 498,077 1,212,380 1,361,112
Warrants liability 173,907 1,962,859 15,353
Other current liabilities 1,827,780 1,186,358 1,333,174
Current liabilities 2,499,764 4,361,597 2,709,639
Non-Current
Lease liability 241,602 608,004 430,862
Other non current liabilities 457,630 - -
Non-current liabilities 699,232 608,004 430,862
Total liabilities 3,198,996 4,969,601 3,140,501
Equity
Share capital 1,380,441 114,562 271,255
Share premium 49,499,287 47,430,420 49,255,030
Shares to be allotted - - 323,725
Other components of equity 1,604,705 1,475,431 1,547,211
Accumulated deficit (50,777,120) (46,358,147) (48,652,842)
Total equity 1,707,313 2,662,266 2,744,379
Total liabilities and equity 4,906,309 7,631,867 5,884,880
The accompanying notes are an integral part of the interim financial
statements.
STATEMENT OF COMPREHENSIVE LOSS
US dollars
Six months ended For the year ended
31 December
30 June
2025 2024 2024
Note Unaudited Audited
Revenue 7 598,599 582,008 1,383,565
Cost of sales - 15,406 108,739
Gross profit 598,599 566,602 1,274,826
Research and development expenses 1,513,153 1,844,393 3,743,495
General and administrative expenses 668,371 837,735 2,086,180
Marketing expenses 214,695 281,476 534,896
Other income (642) - (240)
Operating loss (1,796,978) (2,397,002) (5,089,505)
Financing costs 5 (327,339) (1,202,765) (770,645)
Financing income 6 39 61,753 27,441
Loss before tax (2,124,278) (3,538,014) (5,832,709)
Tax expense - - -
Net comprehensive loss for the period (2,124,278) (3,538,014) (5,832,709)
Basic and diluted loss per ordinary share (0.00) (0.01) (0.01)
Weighted average number of ordinary shares for basic and diluted loss per 3,731,471,356 385,600,025 550,797,251
share
The accompanying notes are an integral part of the interim financial
statements.
STATEMENT OF CHANGES IN EQUITY
The accompanying notes are an integral part of the interim financial
statements.
US dollars
Number of shares Share capital Share premium Shares to be allotted Other components of equity Accumulated deficit Total equity
Balance at 1 January 2025 (Audited) 1,000,000,000 271,255 49,255,030 323,725 1,547,211 (48,652,842) 2,744,379
Employee share-based compensation - - - 57,494 - 57,494
Net proceeds allocated to the issuance of ordinary shares 3,813,863,633 1,048,177 (27,691) - 1,020,486
Shares allotted 222,500,000 61,009 262,716 (323,725) - - -
Expenses paid in shares and warrants 9,232 - 9,232
Net comprehensive loss for the period - - - - (2,124,278) (2,124,278)
Balance at 30 June 2025 (Unaudited) 5,036,363,633 1,380,441 49,499,287 - 1,604,705 (50,777,120) 1,707,313
Balance at 1 January 2024 (Audited) 376,721,091 103,417 47,299,358 1,334,531 (42,820,133) 5,917,173
Employee share-based compensation - - - 140,900 - 140,900
Net proceeds allocated to the issuance of ordinary shares 40,000,000 10,893 112,228 - - - 123,121
Expenses paid in shares and warrants 921,152 252 18,834 - - - 19,086
Net comprehensive loss for the period - - - - - (3,538,014) (3,538,014)
Balance at 30 June 2024 (Unaudited) 417,642,243 114,562 47,430,420 - 1,475,431 (46,358,147) 2,662,266
Balance at 1 January 2024 (Audited) 376,721,091 103,417 47,299,358 - 1,334,531 (42,820,133) 5,917,173
Employee share-based compensation - - - - 212,680 - 212,680
Net proceeds allocated to the issuance of ordinary shares 286,941,090 88,397 856,022 - - - 944,419
Shares issued pursuant to share subscription agreement 333,750,000 78,745 1,074,592 - - - 1,153,337
Shares to be allotted - - - 323,725 323,725
Expenses paid in shares and warrants 2,587,819 696 25,058 - - - 25,754
Net comprehensive loss for the year - - - - - (5,832,709) (5,832,709)
Balance at 31 December 2024 (Audited) 1,000,000,000 271,255 49,255,030 323,725 1,547,211 (48,652,842) 2,744,379
STATEMENT OF CASH FLOWS
US dollars
Six months ended Year ended
30 June 31 December
2025 2024 2024
Unaudited Audited
Operating activities
Net comprehensive loss for the period (2,124,278) (3,538,014) (5,832,709)
Non-cash adjustments
Depreciation of property and equipment 127,970 158,570 315,530
Depreciation of right of use asset 167,200 167,200 334,400
Share-based compensation 57,494 140,900 212,680
Amortisation of intangible assets 480,690 480,690 961,380
Amortisation of liabilities 50,132 (35,241) (11,988)
Lease liability Interest 36,418 53,489 98,098
Foreign exchange losses on cash balances (4,045) 27,649 14,134
Capital Loss 255 160
Revaluation of financial instruments, net 96,308 1,074,518 576,015
Expenses paid in shares and options 9,232 19,086 25,754
Net changes in working capital
Decrease (Increase) in trade receivables 195,071 (273,064) (198,855)
Decrease (Increase) in inventories - 124,654 317,521
Decrease (Increase) in other current assets 5,586 46,731 295,039
Decrease (Increase) in other long-term assets (8,227) (72,130) (75,534)
Increase (decrease) in trade payables (863,035) (24,733) 123,999
Increase (decrease) in other liabilities 441,586 (427,237) (293,046)
Increase (decrease) in IIA royalty liability - (1,779) (19,019)
Increase (decrease) in other non current liabilities 457,630 - -
Net cash used in operating activities (874,013) (2,078,711) (3,156,441)
Investing activities
Deposits to short-term financial assets (2,938) - -
Purchase of property and equipment - (1,274) (101,275)
Net cash used in investing activities (2,938) (1,274) (101,275)
Financing activities
Proceeds allocated to ordinary shares 1,118,293 133,324 1,027,982
Proceeds allocated to warrants 67,987 885,500 913,559
Issuance costs (103,548) (10,203) (83,561)
Proceeds from short term borrowings - (138,148) 41,055
Repayment of short-term borrowings - 41,056 (136,809)
Repayment of lease liability (222,790) (216,992) (433,471)
Net cash provided by financing activities 859,942 694,537 1,328,755
Net change in cash and cash equivalents (17,009) (1,385,448) (1,928,961)
Cash and cash equivalents, beginning of year 50,713 1,993,808 1,993,808
Exchange differences on cash and cash equivalents 4,045 (27,649) (14,134)
Cash and cash equivalents, end of period 37,749 580,711 50,713
Supplementary information:
Interest paid during the period - 1,206 4,655
Interest received during the period 39 1,193 1,613
Supplementary information on non-cash activities:
Shares issued pursuant to share subscription agreement - - 767,848
Expenses paid in shares and warrants 9,232 19,086 25,754
The accompanying notes are an integral part of the interim financial
statements.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 - NATURE OF OPERATIONS
ETHERNITY NETWORKS LTD. (hereinafter: the "Company"), was incorporated in
Israel on the 15th of December 2003 as Neracore Ltd. The Company changed its
name to ETHERNITY NETWORKS LTD. on the 10th of August 2004.
The Company provides innovative, comprehensive networking and security
solutions on programmable hardware for accelerating telco/cloud networks
performance. Ethernity's FPGA logic offers complete Carrier Ethernet Switch
Router data plane processing firmware, PON MAC firmware and control software
with a rich set of networking features, robust security, and a wide range of
virtual function accelerations to optimise telecommunications networks.
Ethernity's complete solutions quickly adapt to customers' changing needs,
improving time-to-market and facilitating the deployment of 5G, edge
computing, and different NFV appliances including wireless backhaul with
wireless link bonding, 5G UPF, 5G CU and vRouter offload with the current
focus on 5G emerging appliances. The Company's customers are situated
worldwide.
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES
Basis of presentation of the financial statements and statement of compliance
with IFRS
The interim condensed financial statements for the six months ended 30 June
2025 have been prepared in accordance with IAS 34, Interim Financial
Reporting. The interim condensed financial statements do not include all the
information and disclosures required in the annual financial statements in
accordance with IFRS and should be read in conjunction with the Company's
annual financial statements as at 31 December 2024. The accounting policies
applied in the preparation of the interim condensed financial statements are
consistent with those followed in the preparation of the Company's annual
financial statements for the year ended 31 December 2024.
The interim condensed financial statements for the half-year ended 30 June
2025 (including comparative amounts) were approved and authorized for issue by
the board of directors on 30 September 2025.
NOTE 3 - GOING CONCERN
The financial statements have been prepared assuming that the Company will
continue as a going concern. Under this assumption, an entity is ordinarily
viewed as continuing in business for the foreseeable future unless management
intends or has no realistic alternative other than to liquidate the entity or
to stop trading for at least, but not limited to, 12 months from the reporting
date. This assessment has been made of the Company's prospects, considering
all available information about the future, which have been included in the
financial budget, from managing working capital and among other factors such
as debt repayment schedules. Consideration has been given inter alia to the
value of funds raised during 2025 to date, and the Company's ability to raise
funds in the past. Furthermore, the Company has made positive commercial
progress and is currently executing multiple customer projects, whilst
simultaneously engaging in active discussions with prominent global OEM
potential customers.
Considering the outlined factors above and based on experience, the directors
have an expectation that the Company will have access to adequate resources to
continue in operational existence for the foreseeable future.
However, the success of the Company's plans as outlined above is not assured
and thus a material uncertainty exists that may cast a significant doubt on
the Company's ability to continue as a going concern and fulfil its
obligations and liabilities in the normal course of business in the future.
The financial statements do not include any adjustments relating to
recoverability and classification of the recorded asset amounts, and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.
NOTE 4 - SIGNIFICANT EVENTS
EQUITY RELATED
TRANSACTIONS DURING THE ACCOUNTING PERIOD
During the 6 month period ended 30 June 2025, ordinary shares of the Company
were issued, as follows:
Note Number of
ordinary shares
Issuance of shares for warrants exercised in December 2024 1 222,500,000
Issuance of shares (with no attached warrants) 2 177,500,000
Issuance of shares (issued together with warrants) 3 3,636,363,633
4,036,363,633
1 Issuance of shares for warrants exercised in December 2024
On the 23rd of December 2024, the subscriber to the May 2024 structured
investment deed, exercised their last remaining warrants to acquire
222,500,000 shares of the Company. These shares were issued in January 2025
and were accounted for in share capital and share premium after having been
removed from "Shares to be allotted" in the Statement of changes in equity.
2 March 2025 equity raise
In March 2025 the Company issued 177,500,000 shares at 0.05 pence per share,
realising gross proceeds of $0.12 million (£0.09 million) and net proceeds
after issuance costs of $0.11 million.
The gross proceeds, after deduction of the issuance costs were allocated to
share capital and share premium.
No warrants were issued in this equity raise.
3 May 2025 equity raise
In May 2025 the Company issued 3,636,363,633 shares attached to, a
corresponding 3,636,363,633 warrants. Each share with its attached warrant was
issued for 0.022 pence per share, realising gross proceeds of $1.06 million
(£0.80 million) and net cash proceeds after issuance expenses of $0.99
million (£0.74 million).
David Levi, a director and the CEO of the Company and Joseph Albagli, a
director and the non-executive chairman of the Company subscribed for
186,363,635 of these shares and 186,363,635 corresponding warrants, on the
same terms that outside investors participated, for an aggregate sum of
approximately $54,000 (£41,000).
Each warrant is exercisable at 0.022 pence per share expiring on the 7(th) of
May 2026. The warrants are not transferable, are not traded on an exchange and
have an accelerator clause, whereby these warrants may be called by the
Company if the closing mid-market share price of the Company equal or exceed
0.045 pence per share over a 5-consecutive day period. If such 5-consecutive
day period condition is met, the Company may serve notice on the warrant
holders to exercise their relevant warrants within 7 calendar days, failing
which, such remaining unexercised warrants shall be cancelled.
As the exercise price of the warrants is denominated in GBP and not in the
Company's functional currency, it was determined that the Company's obligation
under such warrants cannot be considered as an obligation to issue a fixed
number of equity instruments in exchange for a fixed amount of cash.
Accordingly, it was determined that such warrants represent a derivative
financial liability required to be accounted for at fair value through the
profit or loss category. Upon initial recognition the Company allocated the
gross proceeds as follows: an amount of $1.0 million was allocated to the par
value of share capital with the remainder of the proceeds of $0.06 million
recorded as a derivative warrants liability. The issuance expenses of
approximately $0.09 million were allocated in a consistent manner to the above
allocation. The expenses related to the warrant component were carried to
profit or loss as an immediate expense while the expenses related to the share
capital component were netted against the amount carried to equity, thereby
reducing the share premium. In subsequent periods the company measures the
derivative financial liability at fair value and the periodic changes in fair
value are carried to profit or loss under financing costs or financing income,
as applicable. The fair value of the derivative warrant liability is
categorized as level 3 of the fair value hierarchy.
The fair value valuation of the warrants was based on the Black-Scholes option
pricing model, calculated in two stages. Initially, the fair value of these
call warrants issued to investors were calculated, assuming no restrictions
applied to such call warrants. As the Company, under certain circumstances,
has a right to force the investors to either exercise their warrants or have
them cancelled, the second calculation calculates the value of the warrants as
call warrants that were issued by the investor to the company. The net fair
value results from reducing the call investor warrants fair value from the
call warrants fair value, as long as the intrinsic value of the call warrants
(share price at the period end, less exercise price of the warrants) is not
greater than such value. Should the intrinsic value of the warrants be higher
than the Black-Scholes two stage method described above, then the intrinsic
value of the warrants is considered to be a more accurate measure to use in
determining the fair value. The following factors were used in calculating the
fair value of the warrants at their issuance:
Risk free
rate
3.9%
Volatility
148.4%
As at 30 June 2025, none of these warrants have been
exercised.
Upon this equity raise being concluded, the brokers for this transaction
received 163,409,086 warrants with identical terms as those described above,
with a fair value of approximately $9,000.
NOTE 5 - FINANCING COSTS
US dollars
Six months ended Year ended
30 June 31 December
2025 2024 2024
Unaudited Audited
Bank fees and interest 4,899 6,989 13,874
Lease liability financial expenses 36,418 53,489 98,098
Revaluation of liability related to share subscription agreement measured at - -
FVTPL
588,721
Expenses allocated to issuing warrants 96,308 67,769 69,952
Revaluation of warrant derivative liability - 1,074,518 -
Exchange rate differences, net 189,714 - -
Total financing costs 327,339 1,202,765 770,645
NOTE 6 - FINANCING INCOME
US dollars
Six months ended Year ended
30 June 31 December
2025 2024 2024
Unaudited Audited
Revaluation of warrant derivative liability - - 12,706
Interest received 39 1,193 1,613
Exchange rate differences, net - 60,560 13,122
Total financing income 39 61,753 27,441
NOTE 7 - SEGMENT REPORTING
The Company has implemented the principles of IFRS 8, in respect of reporting
segmented activities. In terms of IFRS 8, the management has determined that
the Company has a single area of business, being the development and delivery
of high-end network processing technology.
The Company's revenues are divided into the following geographical areas:
US dollars
Six months ended Year ended
30 June 31 December
2025 2024 2024
Unaudited Audited
Israel 99,851 142,512 244,073
United States 498,748 439,496 1,139,492
598,599 582,008 1,383,565
The Company's revenues are divided into the following geographical areas:
%
Six months ended Year ended
30 June 31 December
2025 2024 2024
Unaudited Audited
Israel 16.7% 24.5% 17.6%
United States 83.3% 75.5% 82.4%
100.0% 100.0% 100.0%
Revenue from customers in the company's domicile, Israel, as well as its major
market, the United States, have been identified on the basis of the customer's
geographical locations.
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