Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | INX LIMITED |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 47,635,875 |
Amendment Flag | false |
Entity Central Index Key | 0001725882 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 333-233363 |
Entity Incorporation, State or Country Code | J1 |
Entity Address, Address Line One | 57/63 Line Wall Road |
Entity Address, City or Town | Gibraltar |
Entity Address, Country | GI |
Entity Address, Postal Zip Code | GX11 1AA |
Entity Interactive Data Current | No |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Firm ID | 1281 |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 57/63 Line Wall Road |
Entity Address, City or Town | Gibraltar |
Entity Address, Country | GI |
Entity Address, Postal Zip Code | GX11 1AA |
Contact Personnel Name | Shy Datika |
City Area Code | (212) |
Local Phone Number | 547-5400 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 12,572 | $ 19,781 |
Cash and cash equivalents held in Reserve Fund | 16,522 | 5,824 |
Short-term investments held in Reserve Fund | 16,982 | 18,473 |
Short-term investments | 10,493 | 5,033 |
Digital assets | 949 | 2,597 |
Trade receivables | 706 | 506 |
Derivative assets | 1,072 | |
Customer funds | 3,242 | 2,609 |
Prepaid expenses and other receivables | 2,626 | 2,608 |
Total current assets | 64,092 | 58,503 |
Non-current assets | ||
Long-term investments held in Reserve Fund | 901 | 11,726 |
Long-term investments | 893 | 4,654 |
Property and equipment, net | 341 | 395 |
Intangible assets, net | 3,297 | 3,528 |
Goodwill | 2,253 | 2,290 |
Right-of-use-assets, net | 739 | 1,309 |
Total non-current assets | 8,424 | 23,902 |
Total Assets | 72,516 | 82,405 |
Current liabilities | ||
Accounts payable and accrued expenses | 2,900 | 2,298 |
Funds due to customers | 3,242 | 2,609 |
Deferred revenue | 85 | |
Lease liability | 390 | 519 |
INX Token liability | 54,120 | 56,847 |
INX Token warrant liability | 1,240 | 1,580 |
Total current liabilities | 61,977 | 63,853 |
Non-current liabilities | ||
Provision for loss on investment in associate | 597 | |
Lease liability | 479 | 868 |
Total non-current liabilities | 1,076 | 868 |
Equity | ||
Ordinary shares of GBP 0.001 par value; Authorized: 100,000,000 shares at December 31, 2023 and 2022; Issued and Outstanding: 47,635,875 shares at December 31, 2023 and 2022 | 60 | 60 |
Share premium | 49,474 | 49,474 |
Contribution to equity by controlling shareholder | 8,696 | 5,972 |
Other comprehensive loss | (144) | (1,254) |
Accumulated deficit | (48,623) | (36,568) |
Total Equity | 9,463 | 17,684 |
Total Liabilities and Equity | $ 72,516 | $ 82,405 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parentheticals) - £ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Pounds per share) | £ 0.001 | £ 0.001 |
Ordinary shares, authorized | 100,000,000 | 100,000,000 |
Ordinary shares, issued | 47,635,875 | 47,635,875 |
Ordinary shares, outstanding | 47,635,875 | 47,635,875 |
Consolidated Statements of Prof
Consolidated Statements of Profit and Loss and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Transaction and brokerage fees | $ 5,345 | $ 4,495 | $ 2,544 |
Gross profit on service revenue | |||
Sales of digital assets | 11,380 | 8,724 | |
Cost of digital assets | (11,380) | (8,758) | |
Change in revaluation of digital assets | 235 | (188) | |
Net gain (loss) on digital assets | 235 | (222) | |
Total income | 5,580 | 4,273 | 2,544 |
Operating (expenses) income | |||
Research and development | (3,319) | (5,306) | (3,849) |
Sales and marketing | (4,006) | (6,512) | (6,411) |
General and administrative | (13,316) | (15,450) | (33,136) |
Other expense | (1,618) | ||
Change in fair value of INX Token warrant liability | 204 | 8,294 | (12,626) |
Total operating expenses | (22,055) | (18,974) | (56,022) |
Loss from operations | (16,475) | (14,701) | (53,478) |
Unrealized gain (loss) on INX Tokens issued | 3,775 | 226,044 | (161,173) |
Finance income | 1,696 | 787 | |
Financial expenses | (255) | (677) | (427) |
Loss on investment in associate | (591) | ||
Income (loss) before tax | (11,850) | 211,453 | (215,078) |
Tax expenses | (205) | (119) | (157) |
Net income (loss) | (12,055) | 211,334 | (215,235) |
Amounts that will be or that have been reclassified to profit or loss when specific conditions are met: | |||
Realized loss on securities at fair value through other comprehensive income (loss) reclassification adjustment into net income (loss) | 77 | 424 | |
Unrealized gain (loss) on securities at fair value through other comprehensive income (loss) | 1,086 | (1,353) | |
Adjustments arising from translating financial statements from functional currency to presentation currency | (53) | (513) | 188 |
Total other comprehensive income (loss) | 1,110 | (1,442) | 188 |
Total comprehensive income (loss) | $ (10,945) | $ 209,892 | $ (215,047) |
Earnings (loss) per share, basic (in Dollars per share) | $ (0.25) | $ 4.52 | $ (14.3) |
Weighted average number of shares outstanding, basic (in Shares) | 47,635,875 | 46,767,930 | 15,048,576 |
Service revenue | |||
Revenue | |||
Gross profit on service revenue | $ 976 | ||
Cost of services | |||
Revenue | |||
Gross profit on service revenue | $ (976) |
Consolidated Statements of Pr_2
Consolidated Statements of Profit and Loss and Comprehensive Income (Loss) (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements Of Profit And Loss And Comprehensive Income Loss Abstract | |||
Earnings (loss) per share, diluted | $ (0.25) | $ 4.52 | $ (14.30) |
Weighted average number of shares outstanding, diluted | 47,635,875 | 46,767,930 | 15,048,576 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Ordinary Shares | Share Premium | Conversion of Loans | Contribution to Equity by Controlling Shareholder | Accumulated other comprehensive income (loss) | Accumulated deficit | Total |
Balance at Dec. 31, 2020 | $ 18 | $ 10,866 | $ 46 | $ (9) | $ (32,667) | $ (21,746) | |
Balance (in Shares) at Dec. 31, 2020 | 13,639,451 | ||||||
Net income (loss) | (215,235) | (215,235) | |||||
Realized loss on available-for sale securities reclassification adjustment into net income (loss) | |||||||
Contribution to equity by a controlling shareholder | 582 | 582 | |||||
Collection of a receivable | 9 | 9 | |||||
Conversion of convertible loan | $ 1 | 193 | (46) | 148 | |||
Conversion of convertible loan (in Shares) | 956,333 | ||||||
Conversion of SAFE | $ 1 | 1 | |||||
Conversion of SAFE (in Shares) | 379,593 | ||||||
Exercise of options under SAFE agreements | $ 1 | 2,219 | 2,220 | ||||
Exercise of options under SAFE agreements (in Shares) | 980,498 | ||||||
Share-based compensation | 10,899 | 10,899 | |||||
Foreign currency translation | 188 | 188 | |||||
Balance at Dec. 31, 2021 | $ 21 | 24,177 | 582 | 188 | (247,902) | (222,934) | |
Balance (in Shares) at Dec. 31, 2021 | 15,955,875 | ||||||
Net income (loss) | 211,334 | 211,334 | |||||
Realized loss on available-for sale securities reclassification adjustment into net income (loss) | 424 | 424 | |||||
Unrealized loss on available-for-sale securities, net of realized gain (loss) reclassification | (1,353) | (1,353) | |||||
Proceeds from private placement, net of issuance costs | $ 39 | 25,297 | 25,336 | ||||
Proceeds from private placement, net of issuance costs (in Shares) | 31,680,000 | ||||||
Surrender and cancellation of private placement warrants | 4,255 | 4,255 | |||||
Share-based compensation | 1,135 | 1,135 | |||||
Foreign currency translation | (513) | (513) | |||||
Balance at Dec. 31, 2022 | $ 60 | 49,474 | 5,972 | (1,254) | (36,568) | 17,684 | |
Balance (in Shares) at Dec. 31, 2022 | 47,635,875 | ||||||
Net income (loss) | (12,055) | (12,055) | |||||
Realized loss on available-for sale securities reclassification adjustment into net income (loss) | 77 | 77 | |||||
Unrealized loss on available-for-sale securities, net of realized gain (loss) reclassification | 1,086 | 1,086 | |||||
Share-based compensation | 2,724 | 2,724 | |||||
Foreign currency translation | (53) | (53) | |||||
Balance at Dec. 31, 2023 | $ 60 | $ 49,474 | $ 8,696 | $ (144) | $ (48,623) | $ 9,463 | |
Balance (in Shares) at Dec. 31, 2023 | 47,635,875 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net cash flows from operating activities: | |||
Net income (loss) for the period | $ (12,055) | $ 211,334 | $ (215,235) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Share-based payment | 2,724 | 1,135 | 10,899 |
Realized loss on investments, net | 77 | 214 | 97 |
Financial income, net | (1,542) | (677) | (55) |
Income tax expense | 205 | 119 | 157 |
Depreciation of equipment and right-of-use-assets | 510 | 610 | 137 |
Amortization of intangible assets | 168 | 581 | 130 |
Changes in accrued interest and amortization of premium (discount) on investments | (91) | 247 | |
INX Token-based compensation | 694 | (6,902) | 19,801 |
Unrealized gain (loss) on INX Tokens issued | (3,775) | (226,044) | 161,173 |
Loss on investment in associate | 591 | ||
Other expense | 1,618 | ||
Net loss on office space sublease agreement | 33 | ||
Impairment loss on digital assets | 72 | 80 | |
Revaluation of lease liability and right-of-use assets | 14 | (148) | |
Changes in operating assets and liabilities: | |||
Decrease (increase) in digital assets, net | 1,648 | (1,669) | |
Decrease )increase) in trade receivables | (200) | 328 | 215 |
Increase in derivative assets | (546) | (1,072) | |
Decrease (increase) in prepaid expenses and receivables from related parties | 73 | (225) | (278) |
Increase from revaluation of contingent liability | (96) | ||
Increase (decrease) in accounts payable and accrued expenses | 514 | (1,061) | 1,212 |
Increase in deferred revenue | 85 | ||
Cash paid and received during the year for: | |||
Interest received | 1,560 | 784 | 98 |
Taxes received (paid), net | (86) | 69 | (290) |
Net cash used in operating activities | (7,781) | (22,305) | (21,955) |
Net cash flows from investing activities: | |||
Proceeds from INX Token offering | 48,243 | ||
Increase in digital assets | (485) | ||
Proceeds received under office space sublease agreement | 106 | ||
Purchase of equipment | (48) | (335) | (132) |
Investment in associate | (32) | ||
Purchase of investments | (9,030) | (33,402) | (14,533) |
Proceeds from sales and maturities of investments | 20,824 | 6,534 | |
Increase in loan receivable from related parties | (218) | (475) | |
Net cash used in business combinations | (5,232) | ||
Net cash provided by (used in) investing activities | 11,820 | (27,421) | 27,386 |
Net cash flows from financing activities: | |||
Proceeds from exercise of INX Token warrants | 14 | 150 | 1,052 |
Proceeds from issuance of INX tokens, net | 31,852 | ||
Proceeds from exercise of option under SAFE agreements | 720 | ||
Proceeds from private placements, net of issuance cost | 29,591 | ||
Repayment of contingent consideration liability | (400) | ||
Repayment of finance lease liabilities | (564) | (578) | (68) |
Net cash provided by (used in) financing activities | (550) | 28,763 | 33,556 |
Change in cash and cash equivalents | 3,489 | (20,963) | 38,987 |
Cash and cash equivalents at beginning of year | 25,605 | 46,568 | 7,581 |
Cash and cash equivalents at end of year | 29,094 | 25,605 | 46,568 |
Cash and cash equivalents | 12,572 | 19,781 | 24,581 |
Cash and cash equivalents held in Reserve Fund | 16,522 | 5,824 | 21,987 |
Total cash and cash equivalents | 29,094 | 25,605 | 46,568 |
Right of-use-asset recognized with corresponding lease liability | 28 | 827 | 654 |
Repayment of loan receivable from related parties | 1,233 | ||
Contribution to equity upon cancellation of private placement warrants | 4,255 | ||
Premium on exercise of shares by related party | 9 | ||
Contribution to equity by controlling shareholder | 582 | ||
Conversion of convertible loan | 148 | ||
INX Token Offering proceeds received in digital assets | 49,488 | ||
Proceeds from exercise of share option | $ 1,500 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
Nature of Operations [Abstract] | |
NATURE OF OPERATIONS | NOTE 1: NATURE OF OPERATIONS INX Limited (the “Company” or “INX”) was incorporated under the Gibraltar Companies Act on November 27, 2017 with registered office at 57/63 Line Wall Road, Gibraltar GX11 1AA, Gibraltar. The Company is wholly owned by The INX Digital Company Inc., a company incorporated under the provincial Business Corporations Act in British Columbia, Canada, with publicly listed shares on Cboe Canada under the symbol INXD and The OTCQB Venture Market under the symbol INXDF. The consolidated financial statements of the Company as of December 31, 2023 and 2022 and for each of the three years in the period ended December 31, 2023, were authorized for issuance in accordance with a resolution of the board of directors on April __, 2024. Nature of Operations The Company, through its subsidiaries, is engaged in the operation and ongoing development of comprehensive infrastructure and regulated solutions for trading and investing in blockchain assets as well as utilizing digital assets as a form of payment. The Company operates INX.One, a single point of entry platform that offers primary listings of regulated security tokens and trading of security tokens and digital assets in the secondary market. The Company charges fees at a transaction level. The transaction fee is calculated based on volume and the value of the transaction. The transaction fee is collected from customers at the time the transaction is executed. The Company, through one of the subsidiaries, also facilitates financial transactions between global banks and offers a full range of brokerage services to several leading banking institutions worldwide, mainly in foreign exchange and interest rate derivatives. The Company operates in the following reportable segments: ● Digital asset segment - development and operation of integrated, regulated solutions for trading of blockchain assets, and providing services for products utilizing blockchain technology. ● Brokerage segment - facilitates financial transactions between financial institutions and offers a full range of brokerage services to banks worldwide. INX Token As part of the Company’s blockchain ecosystem, INX created the INX Token (the “INX Token”), and on August 20, 2020, the U.S Securities and Exchange Commission (the “SEC”) acknowledged the effectiveness of the F-1 Registration Statement that was filed by INX with the SEC and declared the effectiveness of the initial public offering of INX Tokens (“The INX Token Offering” or “the Offering”) pursuant to which INX offered up to 130 million INX Tokens at a price of $0.90 per INX Token. The INX Token was offered to the public on August 24, 2020, and closed on April 22, 2021, when the Offering was completed. In July 2021, INX listed the INX Token for trading on the . INX has not allocated for issuance and does not intend to issue 35 million of the 200 million INX Tokens that have been created. These tokens may be used to fund acquisitions, address regulatory requirements or fund the operations of INX if the Board of Directors of INX determines that INX has net cash balances sufficient to fund less than nine months of its operations. INX intends to restrict issuances of the reserved INX Tokens to these or similar extraordinary situations to limit dilution to INX Token holders. In addition, INX maintains 29.4 million INX Tokens in its treasury. As of December 31, 2023, the Company held approximately 64.4 million INX Tokens in aggregate. Following an amendment to the INX Token rights which was approved by the Board of Directors of the Company on May 17, 2019 (the “Token Rights Amendment”), the holders of INX Tokens (other than INX) are entitled to receive a pro rata distribution of 40% of INX’s net cash flow from operating activities, excluding any cash proceeds from an initial sale by INX of an INX Token (the “Adjusted Operating Cash Flow”). The distribution is based on INX’s cumulative Adjusted Operating Cash Flow, net of cash flows which have already formed a basis for a prior distribution, calculated as of December 31 of each year. The distribution is to be paid to parties (other than INX) holding INX Tokens as of March 31 of the following year on April 30th, commencing with the first distribution to be paid, if at all. Holders of INX Tokens are also entitled, at a minimum, to a 10% discount on the payment of transaction fees on the INX.One Trading Platform. Securities Exchange Agreement On January 10, 2022, the Company completed the definite securities exchange agreement (the “Transaction”) with The INX Digital Company, Inc. (formerly - Valdy Investments Ltd.) (the “Parent Company”), whereby the Parent Company acquired all issued and outstanding securities of INX. The Transaction resulted in a reverse takeover transaction whereby pre-transaction shareholders of INX became majority shareholders of the Parent Company and INX became a wholly owned subsidiary of the Parent Company. The Parent Company continues the business of INX. Organizational Structure The Company operates through the following wholly owned subsidiaries: ● INX Digital, Inc. (“INXD”), a Delaware corporation, is registered in 46 US states plus Washington D.C. and Puerto Rico as a money transmitter to operate a trading platform for digital assets. INXD launched a digital asset trading platform on April 29, 2021, which was developed by INX and is operated by INXD. Select digital assets are supported for trading on the INXD platform, such as (identified by symbol): AAVE, AVAX, BTC, CRV, ETH, FTM, LTC, UNI, USDC and ZEC. ● INX Securities, LLC (Previously named: Openfinance Securities, LLC) (“INXS”), a Pennsylvania limited liability company. INXS is recognized in the US as a SEC registered Broker Dealer and is an SEC registered Alternative Trading System (“ATS”). INXS was purchased by INX on May 10, 2021, as part of the Asset Purchase Agreement with Openfinance Holdings, Inc. and certain subsidiaries of Openfinance Holdings, Inc., dated January 12, 2021. After closing on the acquisition, the company’s name was changed from Openfinance Securities, LLC to INX Securities, LLC. INXS offers investment in primary offering and secondary market trading of security tokens previously registered with the SEC or offered under an applicable SEC exemption. ● I.L.S. Brokers Ltd. (“ILSB”), a company incorporated under the laws of the State of Israel, was purchased by INX, pursuant to the share purchase agreement between INX and the shareholders of ILSB, dated June 9, 2021, for the purchase of all of the issued outstanding shares of ILSB. ILSB is a multinational brokerage house, established in 2001, that facilitates financial transactions between banks and offers a full range of brokerage services to several leading banks worldwide. ILSB’s main field of operation is foreign exchange and interest rate derivatives services. ILSB’s activities are regulated by the Israeli Capital Market Authority, Insurance and Savings and are registered with the U.S. National Futures Association (“NFA”) (authorized by the U.S. Commodity Futures Trading Commission (“CFTC”)). ILSB holds the following license: Provider of Financial Services in Israel and an introducing broker (IB) license from NFA (CFTC) in the US. ● Midgard Technologies Ltd. (“Midgard”) is a company incorporated under the laws of the State of Israel. Midgard had served as the research and development arm of INX since November 1, 2020, and was acquired on April 1, 2021. Midgard provides software development, marketing and operations services for the group and holds certain intellectual property. ● I NX Transfer Agent LLC (previously named TokenSoft LLC) (“INX Transfer Agent”), is a Delaware limited liability company. INX Transfer Agent is a transfer agent registered with the SEC and was acquired by INX pursuant to a purchase agreement dated December 28, 2021 for a nominal consideration. ● INX Solutions Limited (“INX Solutions”) was incorporated by INX in Gibraltar as a private company limited by shares. INX Solutions provided liquidity and risk management services to the group through the end of 2023. The following subsidiaries are currently dormant: ● INX Digital Assets UK Limited (Previously named: ILSB UK Limited) (“INX UK”), a company incorporated under the laws of England and Wales. INX acquired all issued and outstanding shares of INX UK on July 13, 2021, from Mr. James Crossley, former board member of INX, in consideration for an inconsequential amount of cash. ● INX EU Ltd. (“INX EU”), a company incorporated under the laws of Cyprus. ● INX Services, Inc., a Delaware corporation. Capital management These consolidated financial statements have been prepared on a going concern basis, which contemplates that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. As of December 31, 2023, the Company had an accumulated deficit of $48,623. During the year ended December 31, 2023, the Company incurred an operating loss of $16,475 and negative cash flow from operating activities of $7,781. Based on the Company’s existing cash funds and the working capital in the amount of $22,731 as of December 31, 2023 (excluding assets held in the Reserve Fund and the INX Token liability), and management’s projections of the operating results for the next twelve months, management concluded that the Company has sufficient funds to continue its operations and meet its obligations for a period of at least twelve months from the date the financial statements were authorized for issuance. |
Material Accounting Policies
Material Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies [Abstract] | |
MATERIAL ACCOUNTING POLICIES | NOTE 2: MATERIAL ACCOUNTING POLICIES The following accounting policies have been applied consistently in these consolidated financial statements for the periods presented, unless otherwise stated. a. Basis of presentation of the financial statements: These consolidated financial statements have been prepared in accordance with International Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Reporting Interpretations Committee (“IFRIC”). The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value and digital assets characterized as inventory which are measured at fair value less cost to sell recognized through profit or loss. b. Consolidated financial statements: The consolidated financial statements comprise the financial statements of the Company and companies that are controlled by the Company (subsidiaries). Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Potential voting rights are considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. The financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all companies in the group. Significant intra group balances and transactions and gains or losses resulting from intragroup transactions are eliminated in full in the consolidated financial statements. c. Functional and presentation currencies: 1. Functional currency and presentation currency: The consolidated financial statements are presented in U.S. Dollars. The Company determines the functional currency of each entity through an analysis of the consideration factors identified in International Accounting Standard (“IAS”) 21. Assets, including fair value adjustments upon acquisition, and liabilities of an investee which is a foreign operation, are translated at the closing rate at each reporting date. Profit or loss items are translated at average exchange rates for all periods presented. The resulting translation differences are recognized in other comprehensive income (loss). 2. Transactions, assets and liabilities in foreign currency: Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences, other than those capitalized to qualifying assets or accounted for as hedging transactions in equity, are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated into the functional currency using the exchange rate prevailing at the date when the fair value was determined. 3. Index-linked monetary items: Monetary assets and liabilities linked to the changes in the Israeli Consumer Price Index (“Israeli CPI”) are adjusted at the relevant index at each reporting date according to the terms of the agreement. d. Use of material estimates and judgements: The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from those estimates. Key assumptions made in the consolidated financial statements concerning uncertainties at the reporting date that may result in a material adjustment to the carrying amount of the INX Token liability and INX Token warrant liability within the next financial year are discussed in Note 14 and Note 15. Many aspects of the digital currency and blockchain industry have not yet been addressed by the current IFRS guidance. The Company is required to make assumptions and judgments as to its accounting policies and the application thereof, which is disclosed in the notes to the consolidated financial statements. If specific guidance is enacted by the IASB in the future, the impact may result in changes to the Company’s profit or loss and financial position as currently presented. Determining the fair value of share-based payment transactions The fair value of share-based payment transactions is determined upon initial recognition by an acceptable option pricing model. The inputs to the model include share price, exercise price and assumptions regarding expected volatility, expected life of share option and expected dividend yield. Discount rate for a lease liability When the Company is unable to readily determine the discount rate implicit in a lease in order to measure the lease liability, the Company uses an incremental borrowing rate. That rate represents the rate of interest that the Company would have to pay to borrow over a similar term and with similar security, the funds necessary to obtain an asset of similar economic environment. When there are no financing transactions that can serve as a basis, the Company determines the incremental borrowing rate based on its credit risk, the lease term and other economic variables deriving from the lease contract’s conditions and restrictions. In certain situations, the Company is assisted by an external valuation expert in determining the incremental borrowing rate. Impairment of goodwill The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment. This requires management to make an estimate of the projected future cash flows from the continuing use of the cash-generating unit (or a group of cash-generating units) to which the goodwill is allocated and also to choose a suitable discount rate for those cash flows. Deferred tax assets Deferred tax assets are recognized for unused carryforward tax losses and deductible temporary differences to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the timing and level of future taxable profits, its source and the tax planning strategy. Determining the fair value of an unquoted financial liability The fair value of unquoted warrant liability in Level 3 of the fair value hierarchy is determined using the Black and Scholes option pricing model. The inputs to the model include share price, exercise price and assumptions regarding expected volatility, expected life of and expected dividend yield. e. Financial instruments: 1. Financial assets, including short-term and long-term investments, and derivative assets, are initially recognized at fair value plus directly attributable transaction costs, except for financial assets measured at fair value through profit or loss in respect of which transaction costs are recorded in profit or loss. The Company classifies and measures debt instruments in the financial statements based on the following criteria: - The Company’s business model for managing financial assets; and - The contractual cash flow terms of the financial asset. a) Debt instruments are measured at fair value through other comprehensive income when: The Company’s business model is to hold the financial assets in order to both collect their contractual cash flows and to sell the financial assets, and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial recognition, instruments in this category are measured at fair value. Gains or losses from fair value adjustments, excluding interest and exchange rate differences, are recognized in other comprehensive income. b) Debt instruments are measured at fair value through profit or loss when: A financial asset which is a debt instrument does not meet the criteria for measurement at amortized cost or at fair value through other comprehensive income. After initial recognition, the financial asset is measured at fair value and gains or losses from fair value adjustments are recognized in profit or loss. c) Derivative instruments As part of its risk management activities, the Company held positions in derivatives such as digital currency forwards. A digital currency forward is an exchange traded contract which represents a legal agreement to either buy or sell a referenced digital asset at a predetermined price at some time in the future. Digital assets forwards utilized by the Company settle in a stable coin. Derivative assets are carried at fair value and any realized and unrealized gains (losses) are recognized through profit and loss. 2. Loans and receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. These are measured subsequent to initial recognition at amortized cost. Impairment of financial assets: At the end of each reporting period, the Company evaluates the loss allowance for financial debt instruments which are not measured at fair value through profit or loss. The Company has short-term financial assets such as trade receivables for which the Company applies the simplified approach in IFRS 9 and measures the loss allowance in an amount equal to the expected lifetime credit losses. With regards to trade receivables, the Company grants its customers interest-free credit for periods of 30-90 days. As of December 31, 2023 and 2022, there were no material past-due accounts and no allowance for doubtful accounts was recorded. 3. Derecognition of financial assets: A financial asset is derecognized only when: a) Contractual rights to the cash flows from the financial asset have expired; or b) The Company has transferred substantially all risks and rewards deriving from the contractual rights to receive cash flows from the financial asset or has neither transferred nor retained substantially all risks and rewards of the asset, but has transferred control of the asset; or c) The Company has retained its contractual rights to receive cash flows from the financial asset but has assumed a contractual obligation to pay the cash flows in full without material delay to a third party. 4. Financial liabilities: Financial liabilities are initially recognized at fair value. After initial recognition, the accounting treatment of financial liabilities is based on their classification as follows: a) Financial liabilities at amortized cost: After the initial recognition, loans and other liabilities are measured based on their terms at amortized cost less directly attributable transaction costs using the effective interest method. b) Financial liabilities at fair value through profit or loss: These liabilities include financial liabilities held for trading (including the INX Token warrant liability) and financial liabilities designated upon initial recognition as at fair value through profit or loss. Changes in the fair value of liabilities held for trading are recognized in profit or loss in financial expenses. Based on the terms of the INX Token, as described in Note 1, the INX Token is a hybrid financial instrument. The host instrument is a financial liability due to the right of the INX Token holder to use the INX Token to pay transactions fees on the INX.One Trading Platform. The INX Token is considered a puttable instrument which is a financial liability in accordance with IAS 32, Financial Instruments: Presentation. INX’s obligation to make a pro rata distribution annually to the INX Token holders from INX’s Adjusted Operating Cash Flow is an embedded derivative. The Company views INX’s operating cash flows as a financial variable, and therefore, the embedded derivative requires bifurcation pursuant to IFRS 9. The Company elected, in accordance with IFRS 9, to designate the entire financial liability (including the embedded derivative) at fair value through profit and loss. Accordingly, the INX Token liability and the INX Token warrant liability are remeasured to fair value at the end of each reporting period. The change in the fair value of the INX Token liability that is attributable to changes in credit risk, excluding those changes in credit risk attributable to the embedded derivative, to the extent there are any, would be presented in other comprehensive income. The remaining amount of the change in the fair value of the INX Token liability would be presented in profit or loss. At December 31, 2023, the change in fair value of the INX Token liability is included in profit or loss. Should the INX Token be used to pay for services provided by INX, revenue would be recognized and the respective portion of the INX Token liability would be derecognized. Additionally, the fair value of INX Tokens issued in consideration for services provided to the Company would be recognized as compensation expense when services are provided. 5. Offsetting financial instruments: Financial assets and financial liabilities are offset, and the net amount is presented in the statement of financial position if there is a legally enforceable right to set off the recognized amounts and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously. The right of set-off must be legally enforceable not only during the ordinary course of business of the parties to the contract but also in the event of bankruptcy or insolvency of one of the parties. 6. Compound financial instruments: Convertible debt which contains both an equity component and a liability component are separated into two components. This separation is performed by first determining the liability component based on the fair value of an equivalent non-convertible liability. The value of the conversion component is determined to be the residual amount. Directly attributable transaction costs are apportioned between the equity component and the liability component based on the allocation of proceeds to the equity and liability components. 7. Simple Agreement for Future Equity (“SAFE”): INX has entered into equity funding agreements (SAFEs) pursuant to which funds received by INX from investors have been automatically converted into the same class of share capital of INX that were issued in a qualifying financing, as defined in the SAFEs. INX is not obligated to complete a qualifying financing or to approve the issuance of shares or dilutive securities within the term specified in the SAFE that would result in the issuance of a variable number of the INX’s equity instruments. Accordingly, as the SAFEs are a non-derivative for which the conversion price into the Company’s equity instruments is fixed at the end of its term, the consideration received from investors pursuant to the SAFEs is classified as equity. As of December 31, 2023, all INX SAFE’s have been converted into ordinary shares. f. Fair value measurement: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement. The Company classifies the bases used to measure certain assets and liabilities at their fair value. Assets and liabilities carried or measured at fair value have been classified into three levels based upon a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The levels are as follows: Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Significant inputs other than within Level 1 that are observable for the asset or liability, either directly (i.e.: as prices) or indirectly (i.e.: derived from prices); Level 3: Inputs for the assets or liabilities that are not based on observable market data and require management assumptions or inputs from unobservable markets. For details of the fair value of the INX Token liability, see Note 14. For the fair value of INX Token warrant liability, see Note 15. The fair values of current financial assets and financial liabilities, other than the INX Token and INX Token warrant liability, approximate their carrying amounts due to the short-term maturity of these instruments. g. Investments: Investments, other than the investment in an associate, are accounted for as financial assets, which are initially recognized at fair value and subsequently measured at fair value through other comprehensive income (loss). The Company’s investment in an associate represents an ownership share in an entity in which the Company has significant influence and that is accounted for under the equity method in accordance with IAS 28 Investments in Associates Losses of an associate are recognized by the Company to the extent of its investment in the associate plus any losses that the Company may incur as a result of its legal or constructive obligations on behalf of the associate. As of December 31, 2023, the Company’s share of losses incurred by the associate exceeds its investment amount and is reflected in the profit or loss as loss on investment in associate. Loss in excess of the Company’s investment amount is recognized as a non-current liability. The equity method is applied until the loss of significant influence or the classification of the investment as held for sale. On the date of loss of significant influence, the Company would measure any remaining investment in the associate at fair value and recognize in profit or loss the difference between the fair value of any remaining investment plus any proceeds from the sale of the investment in the associate and the carrying amount of the investment on that date. h. Digital assets: Digital assets are measured at cost on the initial recognition. Digital assets characterized as inventory (current assets): The Company has assessed that it acts in a capacity as a commodity broker trader as defined in IAS 2, Inventories, in characterizing its holdings of digital assets as inventory. Such digital assets held by the Company are principally acquired for the purpose of selling in the near future and generating a profit from fluctuations in price or broker-traders’ margin, therefore, they are accounted for as inventory, and changes in fair value (less cost to sell) are recognized in profit or loss. Digital assets characterized as intangible assets (non-current assets): Digital assets not characterized as inventory are classified as indefinite life intangible assets and are tested for impairment annually or whenever there is an indication that the intangible asset may be impaired. An impairment loss is recognized if the carrying amount exceeds its fair value less cost of sale. The Company recorded impairment of digital assets in the amount of $72 and $80, for the year ended December 31, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the Company did not hold any digital assets characterized as intangible assets. The fair value of digital assets is based on quoted prices in the principal market as of 12:00 AM UTC. i. Customer funds and funds due to customers: Customer funds represent cash and digital assets that are held for the exclusive benefit of customers. The Company safeguards these assets on behalf of its customers and is subject to security risks for loss, theft or misuse. The Company restricts the use of the assets underlying the customer funds to meet regulatory requirements and classifies them as current based on their purpose and availability to fulfill its direct obligation to customers. Due to the Company’s custodial obligation to safeguard customer assets, consistent with the SEC Staff Accounting Bulletin No. 121 guidance, the Company recognizes a liability to reflect its obligation to safeguard assets held for its customers and the corresponding customer assets, measured at the fair value j. Intangible assets: Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Intangible assets with a finite useful life are amortized on a straight-line basis over their useful life and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year-end. Intangible assets with indefinite useful lives are not systematically amortized and are tested for impairment annually or whenever there is an indication that the intangible asset may be impaired. The useful life of these assets is reviewed annually to determine whether their indefinite life assessment continues to be supportable. If the events and circumstances do not continue to support the assessment, the change in the useful life assessment from indefinite to finite is accounted for prospectively as a change in the accounting estimate and on that date the asset is tested for impairment. Commencing from that date, the asset is amortized systematically over its useful life. k. Business combinations and goodwill: Business combinations are accounted for by applying the acquisition method. The cost of the acquisition is measured at the fair value of the consideration transferred on the acquisition date with the addition of non-controlling interests in the acquiree. In each business combination, the Company chooses whether to measure the non-controlling interests in the acquiree based on their fair value on the acquisition date or at their proportionate share in the fair value of the acquiree’s net identifiable assets. Direct acquisition costs are recorded in the statement of comprehensive income as incurred. Contingent consideration is recognized at fair value on the acquisition date and classified as a financial asset or liability in accordance with IAS 39. Subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. Goodwill is initially measured at cost which represents the excess of the acquisition consideration and the amount of non-controlling interests over the net identifiable assets acquired and liabilities assumed. If the resulting amount is negative, the acquirer recognizes the resulting gain on the acquisition date. l. Impairment of non-financial assets: The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is allocated to the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss . An impairment loss of an asset, other than goodwill, is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss. The following criteria are applied in assessing impairment of these specific assets: 1. Goodwill: The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment. Goodwill is tested for impairment by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the goodwill has been allocated. An impairment loss is recognized if the recoverable amount of the cash-generating unit (or group of cash-generating units) to which goodwill has been allocated is less than the carrying amount of the cash-generating unit (or group of cash-generating units). Any impairment loss is allocated first to goodwill. Impairment losses recognized on goodwill cannot be reversed in subsequent periods. 2. Intangible assets with an indefinite useful life that have not yet been systematically amortized: The impairment test is performed annually, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment (see Note 12e). m. Leases: The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration. The Company as a lessee: For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to 12 months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract. On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company’s incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method. On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term. The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36. n. Revenue recognition: The Company determines revenue recognition from contracts with customers through the following steps: ● Identification of the contract with the customer; ● Identification of performance obligations in the contract; ● Determination of transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of the revenue when, or as, the Company satisfies a performance obligation. In determining the amount of revenue from contracts with customers, the Company evaluates whether it is a principal or an agent in the arrangement. The Company is a principal when the Company controls the promised goods or services before transferring them to the customer. In these circumstances, the Company recognizes revenue for the gross amount of the consideration. When the Company is an agent, it recognizes revenue for the net amount of the consideration, after deducting the amount due to the principal. Transaction fees revenue includes revenue from transaction and trading fees charged to customers utilizing the Company’s trading platform and are presented on a net basis. The Company’s service is comprised of a single performance obligation to provide a matching service when customers buy, sell, or convert digital assets. The Company does not control the digital asset being provided before it is transferred to the buyer, does not have inventory risk related to the digital asset, and is not responsible for the settlement of the digital asset. The Company also does not set the price for the digital asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase digital assets from another customer. Transaction fees charged on the INX.One trading platform are recognized as revenue when the Company’s obligation is satisfied, promised services are transferred to the customer and the customer obtains control. Brokerage fees revenue is recorded according to the date the service was provided, or the operation was carried out. Relevant to brokerage and transaction fees, contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, these contracts are defined at the transaction level and do not extend beyond the service already provided. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). Service revenue represents fees for technology consultation and advisory, as well as listing services performed by the Company under written agreements and is recognized upon the delivery of promised goods or services to the customer and when Company’s performance obligation to the customer is satisfied. The revenue is recognized in an amount that reflects the fair value of the consideration to which the Company expects to be entitled to, upon completion of the Company’s performance obligation for those services, as stated in the contract. As of December 31, 2023, the Company received payments prior to the completion of its performance obligation under contracts with customers, which are recognized as deferred revenue. The Company also recognizes revenue from buying and selling digital assets it owns. Such revenue is recognized in the gross amount of consideration received on sales less the cost of digital assets sold. The profit/loss on the sale is included in the changes in the revaluation of the digital assets to fair value. o. Share-based payment transactions: Certain of the Company’s employees and other service providers are entitled to compensation in the form of equity settled share-based payment. The cost of the transactions is measured at the fair value of the equity instruments granted at the grant date, using an appropriate valuation model, further details of which are provided in Note 19. The cost of share-based grants is recognized in profit or loss together with a corresponding increase in equity during the period during which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employee or service provider becomes entitled to the award (the “vesting period”). The cumulative expens |
New Accounting Policies and Rec
New Accounting Policies and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
New Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
NEW ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3: NEW ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS a. Amendments to existing standards effective during the year ended December 31, 2023. Amendment to IAS 1, “Disclosure of Accounting Policies”: In February 2021, the IASB issued amendments to IAS 1 Presentation of Financial Statements, amendments to IFRS Practice Statement 2 Making Materiality Judgements The application of the above Amendment did not have a material impact on the Company’s consolidated financial statements. Amendment to IAS 8, “Accounting Policies, Changes to Accounting Estimates and Errors”: In February 2021, the IASB issued an amendment to IAS 8, “Accounting Policies, Changes to Accounting Estimates and Errors” (“the Amendment”), in which it introduces a new definition of “accounting estimates”. Accounting estimates are defined as “monetary amounts in financial statements that are subject to measurement uncertainty”. The Amendment clarifies the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. The Amendment is applied prospectively for annual reporting periods beginning on January 1, 2023 and is applicable to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The application of the Amendment did not have a material impact on the Company’s consolidated financial statements. Amendment to IAS 12, “Income Taxes”: In May 2021, the IASB issued an amendment to IAS 12, “Income Taxes” (“IAS 12”), which narrows the scope of the initial recognition exception under IAS 12.15 and IAS 12.24 (“the Amendment”). According to the recognition guidelines of deferred tax assets and liabilities, IAS 12 excludes recognition of deferred tax assets and liabilities with respect to certain temporary differences arising from the initial recognition of certain transactions. This exception is referred to as the “initial recognition exception”. The Amendment narrows the scope of the initial recognition exception and clarifies that it does not apply to the recognition of deferred tax assets and liabilities arising from transactions that are not a business combination and that give rise to equal taxable and deductible temporary differences, even if they meet the other criteria of the initial recognition exception. The Amendment applies for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted. In relation to leases and decommissioning obligations, the Amendment is to be applied commencing from the earliest reporting period presented in the financial statements in which the Amendment is initially applied. The cumulative effect of the initial application of the Amendment should be recognized as an adjustment to the opening balance of retained earnings (or another component of equity, as appropriate) at that date. The application of the Amendment did not have a material impact on the Company’s consolidated financial statements. b. Accounting standards and amendments to existing standards that are not yet effective. Amendment to IAS 1, “Disclosure of Accounting Policies”: In January 2020, which was further amended in October 2022, the IASB issued an amendment to IAS 1, Classification of Liabilities as Current or Non-Current The new guidance will be effective for annual periods starting on or after January 1, 2024 and must be applied retrospectively. Early adoption is permitted. The above Amendment is not expected to have a material impact on the Company’s consolidated financial statements. Amendments to IAS 7, “Statement of Cash Flows”, and IFRS 7, “Financial Instruments: Disclosures”: In May 2023, the IASB issued amendments to IAS 7, “Statement of Cash Flows”, and IFRS 7, “Financial Instruments: Disclosures” (“the Amendments”) to address the presentation of liabilities and the associated cash flows arising out of supplier finance arrangements, as well as disclosures required for such arrangements. The disclosure requirements in the Amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The Amendments are effective for annual reporting periods beginning on or after January 1, 2024. Early adoption is permitted but will need to be disclosed. The Company believes that the Amendments are not expected to have a material impact on its consolidated financial statements. Amendments to IAS 21, “The Effects of Changes in Foreign Exchange Rates”: In August 2023, the IASB issued “Amendments to IAS 21: Lack of Exchangeability (Amendments to IAS 21, “The Effects of Changes in Foreign Exchange Rates”)” (“the Amendments”) to clarify how an entity should assess whether a currency is exchangeable and how it should measure and determine a spot exchange rate when exchangeability is lacking. The Amendments set out the requirements for determining the spot exchange rate when a currency lacks exchangeability. The Amendments require disclosure of information that will enable users of financial statements to understand how a currency not being exchangeable affects or is expected to affect the entity’s financial performance, financial position and cash flows. The Amendments apply for annual reporting periods beginning on or after January 1, 2025. Earlier adoption is permitted, in which case, an entity is required to disclose that fact. When applying the Amendments, an entity should not restate comparative information. Instead, if the foreign currency is not exchangeable at the beginning of the annual reporting period in which the Amendments are first applied (the initial application date), the entity should translate affected assets, liabilities and equity as required by the Amendments and recognize the differences as of the initial application date as an adjustment to the opening balance of retained earnings and/or to the foreign currency translation reserve, as required by the Amendments. The Company believes that the Amendments are not expected to have a material impact on its consolidated financial statements. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 4: BUSINESS COMBINATIONS I.L.S. Brokers Ltd. On June 9, 2021, INX entered into a share purchase agreement with the shareholders of I.L.S. Brokers Ltd., a Company incorporated under the laws of the State of Israel (“ILSB”) for the purchase of all of the issued outstanding shares of ILSB (the “ILSB Acquisition”). The consideration paid by INX as part of the ILSB Acquisition to the shareholders was $4,327. Mr. Datika was a shareholder of ILSB and sold his shares to INX as part of the ILSB Acquisition. Immediately prior to the ILSB Acquisition, Mr. Datika held, directly and indirectly, approximately 20% of the outstanding share capital of ILSB. Mr. Datika waived his right to receive full consideration under the ILSB Acquisition and received only an amount equal to the tax payments due by him and by his affiliated entity in connection with the ILSB Acquisition. As a result of such waiver, the consideration paid by INX as part of the ILSB Acquisition was reduced from $4,909 to $4,327. Mr. Datika is one of the founding shareholders of INX (through the wholly owned company Triple-V (1999) Ltd. (“Triple-V”)) and is also the CEO of INX. The waiver of the partial consideration by Mr. Datika in the amount of $582 was recorded as a contribution to equity. The following are the estimated fair values of the identifiable assets and liabilities assumed of ILSB as of the date of the acquisition: June 9, Cash and cash equivalents $ 810 Accounts receivable 1,031 Property and equipment 37 Right-of-use-assets 416 Intangible assets 2,491 Total assets 4,785 Accounts payable and accrued expenses (745 ) Lease liability (501 ) Total liabilities (1,246 ) Net identifiable assets 3,539 Goodwill arising on acquisition 1,370 Total cost of acquisition $ 4,909 Cost of Acquisition: Cash paid $ 4,327 Equity contribution by shareholder 582 Total cost of acquisition $ 4,909 Cash outflow on Acquisition: Cash paid $ 4,327 Cash and cash equivalents acquired 810 Net cash outflow $ 3,517 Intangible assets include Customer Relationships, Trade Name and License. See Note 12. The Company estimated fair values allocated to the assets and liabilities of ILSB with the assistance of an external independent expert. From the acquisition date to December 31, 2021, ILSB has contributed net income of $254 to the consolidated net loss, and $2,278 to the consolidated revenue. If the business combination had taken place at the beginning of the calendar year 2021, the effect on consolidated net loss would have been immaterial and the consolidated revenue would have been increased by $4,164. Acquisition costs that are directly attributable to the transaction were immaterial. INX Securities LLC (formerly Openfinance Securities LLC) On January 12, 2021, INX entered into an asset purchase agreement (the “OFN Asset Purchase Agreement”) with Openfinance Holdings, Inc. and certain subsidiaries of Openfinance Holdings, Inc. (collectively, “OFN”). The consideration paid by INX as part of the OFN Acquisition to the shareholders was $3,253. Pursuant to the OFN Asset Purchase Agreement, on May 9, 2021, INX acquired various assets of OFN, including the entire share capital of Openfinance Securities, LLC. Following the completion of the Asset Purchase Agreement on May 9, 2021, OFN Securities, LLC was renamed to INX Securities, LLC (“INXS”). The following are the estimated fair values of the identifiable assets and liabilities of OFN assumed as of May 9, 2021, the date of the acquisition: May 9, Cash and cash equivalents $ 307 Other current assets 18 Intangible assets 1,914 Total Assets 2,239 Accounts payable (3 ) Total Liabilities (3 ) Net identifiable assets 2,236 Goodwill arising on acquisition 1,017 Total cost of acquisition $ 3,253 Cost of Acquisition: Cash paid $ 2,022 Token warrant liability 735 Contingent consideration liability 496 Total cost of acquisition $ 3,253 Cash outflow on Acquisition: Cash paid $ 2,022 Cash and cash equivalents acquired 307 Net cash outflow $ 1,715 Intangible assets include License, Core Technology and Customer Relationships – see Note 12. The Company estimated the fair values allocated to the assets and liabilities of OFN with the assistance of an external independent expert. During the year ended December 31, 2021, OFN has contributed a net loss of $133 to the consolidated net loss, and $193 to the consolidated revenue. If the business combination had taken place at the beginning of the year, the effect on consolidated net loss and on consolidated revenue would have been immaterial. Acquisition costs that are directly attributable to the transaction were immaterial. Contingent consideration: As part of the purchase agreement with the previous owner of Open Finance securities, LLC., it was agreed that the previous owner would be entitled to an additional consideration (“the contingent consideration”) as follows: a. Six months after closing and contingent upon the continued operation of the platform by the Company or its affiliates - $400. b. 12 months after closing and contingent upon the continued operation of the platform by the Company or its affiliates - $400. 2022 2021 Balance as of January 1 $ 400 $ - Liability arising as result of business combination - 496 Payment (400 ) (400 ) Change in fair value of contingent liability recognized in profit or loss - 304 Balance as of December 31 $ - $ 400 As of December 31, 2021, the first installment was paid and the fair value of the second installment of the contingent consideration was estimated at $400 (measured at level 3 of the fair value hierarchy), which is presented as Contingent consideration liability. The second installment was paid during the year ended December 31, 2022. Token warrant grant: As part of the consideration for the acquisition, the Company granted the shareholders of OFN, 885,000 INX Token warrants which are exercisable at a price of $0.07 per warrant. The fair value of these warrants in the amount of $735 was determined using the Black-Scholes option pricing method. These warrants were exercised in 2021. |
Reserve Fund
Reserve Fund | 12 Months Ended |
Dec. 31, 2023 | |
Reserve Fund [Abstract] | |
RESERVE FUND | NOTE 5: RESERVE FUND In connection with the INX Token Offering, INX committed to reserve 75% of the gross proceeds less payments to underwriters in excess of $25,000 to be available to cover customer and INX’s losses, if any, that result from cybersecurity breaches or theft, errors in execution of the trading platform or its technology, and counterparty defaults, including instances where counterparties lack sufficient collateral to cover losses. INX refers to this amount as the “Reserve Fund”. As of December 31, 2022, INX had segregated $36,023 as the Reserve Fund. In December 2023, the Company learned of a cyber-attack that occurred on the computer system of a third-party service provider of one of the Company’s subsidiaries. As a result, the malicious party managed to cause a loss of funds of the Company’s subsidiary in the amount of $1,618, recognized as Other expense. Upon the discovery of the breach, the Company took an immediate action to eliminate the security vulnerability, subsequently put in place additional security measures designed to prevent such cyber-attack incidents in the future, and continues to work with relevant law enforcements seeking to recover lost funds. The Company utilized funds set aside in the Reserve Fund to cover the loss, as a result, as of December 31, 2023, the balance of the Reserve Fund was reduced to $34,405. On July 13, 2021, the INX’s Board of Directors approved the Investment Policy of the Reserve Fund. Per the approved Policy, as amended on August 11, 2022, the Reserve Fund, post the amendment, shall be invested as follows: minimum 15% in cash and bank deposits, up to 70% in U.S Treasury securities, up to 20% shall be invested in exchange traded funds and up to 50% in corporate bonds and other instruments with the lowest investment grade rating of BBB. The Reserve Fund is comprised of cash and cash equivalents, U.S. Treasury securities and corporate bonds held at banks and brokerage firms as follows: December 31, December 31, a. Cash and cash equivalents $ 16,522 $ 5,824 b. Financial assets at fair value through other comprehensive income: Short-term investments (*) U.S. Treasury securities 986 6,141 Corporate bonds – marketable investments 15,996 12,332 Total short-term investments 16,982 18,473 Long-term investments (*) U.S. Treasury securities 901 474 Corporate bonds and loans (principally) – marketable investments - 11,252 Total long-term investments 901 11,726 Total Reserve Fund $ 34,405 $ 36,023 (*) Classified as Level 1 inputs in the fair value hierarchy. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstarct] | |
INVESTMENTS | NOTE 6: INVESTMENTS On December 31, 2023 and 2022, the Company held the following investments: December 31, December 31, Financial assets at fair value through other comprehensive income: Short-term investments (*) U.S. Treasury securities $ 4,604 $ 3,444 Corporate bonds – marketable investments 5,889 1,589 Total short-term investments $ 10,493 $ 5,033 Long-term investments Corporate bonds – marketable investments (*) 403 4,254 Investments in private equity (**) 490 400 Total long-term investments $ 893 $ 4,654 Total investments $ 11,386 $ 9,687 (*) Classified as level 1 inputs in the fair value hierarchy. (**) Classified as level 3 inputs in the fair value hierarchy. Investments in Private Equity Investments in private equity are not traded in public markets and include Company’s holdings in private companies under share purchase agreements and a simple agreement for future equity (SAFE), which entitle the Company to receive common stock of the issuing companies at a future date. As of December 31, 2023, INX holds investments in three separate private companies. Under the share purchase agreement dated March 20, 2021, one of the investments of $150 entitles the Company to receive 95,411 ordinary shares of the private company based in the United Kingdom at a price of $1.57 per share. The second investment of $250 was made on September 9, 2021 in a private company based in Gibraltar under a SAFE. The SAFE entitles the Company to receive the most senior class of shares issued by the private company upon the completion of the qualified or non-qualified equity financing, as defined in the SAFE, at the SAFE conversion price. During 2023, INX invested $90 in a private company based in the United States, in return for preferred shares to be issued by the private company at the time of the closing in the amount of the investment, plus a warrant to purchase newly issued by the private company security tokens valued at $300 as of the date of the primary issuance at $0.01 per token. The preferred shares are convertible to security tokens. Investment in Associate In June 2023, INX entered into a shareholders’ and joint venture agreement (“SICPA Agreement”), whereby parties to the agreement have agreed to joint their expertise and collaborate to develop central bank digital currency solutions with the utilization of blockchain technology. Subsequently, for the purpose of executing joint objectives under the SICPA Agreement, the parties formed SICPA INX SA, subsequently renamed as NABATECH SA, (“Nabatech”), an entity organized under the laws of Switzerland. During the year ended December 31, 2023, the Company made the initial capitalization investment in Nabatech of $32 and owns 33 percent of the issued and outstanding share capital of Nabatech. In addition, INX entered into a service agreement with Nabatech to provide technology support and advisory services to the entity. As of December 31, 2023, the Company recorded loss on the investment in associate of $591 and loss on the foreign currency translation of $38, to reflect its share of Nabatech’s net loss for the year then ended, which is $597 in excess of Company’s investment amount. |
Digital Assets
Digital Assets | 12 Months Ended |
Dec. 31, 2023 | |
Digital Assets [Abstract] | |
DIGITAL ASSETS | NOTE 7: DIGITAL ASSETS The Company held the following digital assets as of December 31, 2023 and 2022: Coin Symbol December 31, December 31, USDC $ 453 $ 463 BTC 354 546 ETH 86 503 USDT 23 684 LTC 15 109 ZEC 3 51 UNI - 44 AAVE - 31 COMP - 31 CRV - 29 MATIC - 28 Other 15 78 $ 949 $ 2,597 Digital assets are classified as Level 2 in the fair value hierarchy, based on quoted prices in the principal market at 12:00 UTC. |
Derivative Assets
Derivative Assets | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Assets [Abstract] | |
DERIVATIVE ASSETS | NOTE 8: DERIVATIVE ASSETS The Company used derivative assets for risk management and economic hedging of digital assets owned. On December 31, 2022, the Company held $905 in collateral related to open digital assets forwards positions with fair value of $1,072, utilizing level 2 inputs in the fair value hierarchy. During the year ended December 31, 2023, the Company incurred a loss on derivative contracts of $1,618 as a result of the cyber breach incident (see Note 5). The net loss recognized from the hedging activity during the year ended on December 31, 2023 was $253. As of December 31, 2023, there are no open derivative positions. |
Customer Funds
Customer Funds | 12 Months Ended |
Dec. 31, 2023 | |
Customer Funds [Abstract] | |
CUSTOMER FUNDS | NOTE 9: CUSTOMER FUNDS As of December 31, 2023 and 2022, customer funds include cash balances of $360 and $448 and digital asset balances of $2,882 and $2,161, respectively, that are maintained in bank and custodial accounts and are held for the exclusive benefit of customers. The Company safeguards these assets, and might be subject to security risks of loss, theft or misuse. Accordingly, consistent with the SEC Staff Accounting Bulletin No. 121 guidance, the Company records the liability reflecting the obligation to safeguard digital assets held on behalf of its customers and the corresponding customer assets, reflected at fair value upon initial recognition and subsequently at each reporting period. |
Prepaid Expenses and Other Rece
Prepaid Expenses and Other Receivables | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Receivables [Abstract] | |
PREPAID EXPENSES AND OTHER RECEIVABLES | NOTE 10: PREPAID EXPENSES AND OTHER RECEIVABLES As of December 31, 2023 and 2022, prepaid expenses and other receivables include the following: December 31 2023 2022 Receivable from related parties (see Note 16) $ 1,213 $ 1,254 Prepaid expenses and advances to service providers 668 1,015 Receivable from government agencies 390 219 Office space sublease receivable 90 - Other receivables 265 120 $ 2,626 $ 2,608 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
PROPERTY AND EQUIPMENT | NOTE 11: PROPERTY AND EQUIPMENT The following table presents activity of the Company’s property and equipment during the years ended December 31, 2023 and 2022: Computers Office Leasehold Communication Total Property and equipment, at cost: Balance at January 1, 2022 $ 125 $ 59 $ 6 $ 14 $ 204 Additions 42 41 99 153 335 Adjustments arising from translating financial statements from functional currency to presentation currency - - - (14 ) (14 ) Balance at December 31, 2022 167 100 105 153 525 Additions 41 5 - 2 48 Adjustments arising from translating financial statements from functional currency to presentation currency - - - (1 ) (1 ) Balance at December 31, 2023 $ 208 $ 105 $ 105 $ 154 $ 572 Accumulated depreciation: Balance at January 1, 202 2 33 10 1 - 44 Depreciation expense 51 9 9 19 88 Adjustments arising from translating financial statements from functional currency to presentation currency - - - (2 ) (2 ) Balance at December 31, 2022 84 19 10 17 130 Depreciation expense 60 7 11 23 101 Balance at December 31, 2023 144 26 21 40 231 Net assets at December 31, 2023 $ 64 $ 79 $ 84 $ 114 $ 341 Net assets at December 31, 2022 $ 83 $ 81 $ 95 $ 136 $ 395 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of Useful Life of Intangible Assets | NOTE 12: GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents activity in goodwill and intangible assets during the years ended December 31, 2023 and 2022. Trade Name Customer Licenses Technology Goodwill Total Intangible assets, at cost: Balance as of January 1, 2022 $ 467 $ 1,905 $ 1,722 $ 430 $ 2,455 $ 6,979 Adjustments arising from translating financial statements from functional currency to presentation currency (51 ) (173 ) (61 ) - (165 ) (450 ) Balance as of December 31, 2022 416 1,732 1,661 430 2,290 6,529 Adjustments arising from translating financial statements from functional currency to presentation currency (11 ) (39 ) (13 ) - (37 ) (100 ) Balance as of December 31, 2023 $ 405 $ 1,693 $ 1,648 $ 430 $ 2,253 $ 6,429 Accumulated amortization and impairment: Balance as of January 1, 2022 $ 23 $ 75 $ - $ 32 $ - $ 130 Impairment of technology - - - 361 - 361 Amortization expense 41 142 - 37 - 220 Balance as of December 31, 2022 64 217 - 430 - 711 Amortization expense 37 131 - - - 168 Balance as of December 31, 2023 $ 101 $ 348 $ - $ 430 - $ 879 Net intangible assets at cost, at December 31, 2022 352 1,515 1,661 - 2,290 5,818 Net intangible assets at cost, at December 31, 2023 $ 304 $ 1,345 $ 1,648 $ - $ 2,253 $ 5,550 a. Useful life of intangible assets: The useful life of intangible assets is as follows: Licenses Customer Trade name Useful life Indefinite Definite 10.58 years Definite 10.58 years Amortization method Not amortized Straight-line Straight-line Licenses don’t have a fixed term and do not require a renewal. Consequently, licenses have an indefinite useful life. b. Amortization expense: Amortization of intangible assets of $168, $220 and $130 for the years ended December 31, 2023, 2022 and 2021, respectively, is recorded in profit or loss within General and administrative expenses. c. Impairment of goodwill and other intangible assets: During the year ended December 31, 2022, the Company recorded $361 loss on impairment related to certain legacy components of the INXS middle office system that became obsolete and were replaced by a newly developed software. There was no impairment during years ended on December 31, 2023 and 2021. d. Net carrying value: As of December 31, 2023, the net carrying amounts of goodwill, licenses, trade name and customer relationships were allocated as follows (each representing a cash-generating unit): ILSB INXS Total Goodwill $ 1,236 $ 1,017 $ 2,253 Licenses 448 1,200 1,648 Trade Name 304 - 304 Customer Relationships 1,062 283 1,345 Total Intangible Assets $ 1,814 $ 1,483 $ 3,297 The recoverable amounts of goodwill and intangible assets related to ILSB (brokerage segment), prepared by an independent valuation specialist, were determined based on the value in use which is calculated at the expected estimated future cash flows from the cash-generating unit, as determined according to the budget for the next five years and approved by the Company’s management. The projected cash flows for the period exceeding five years are estimated using a fixed growth rate of 2%, representing the long-term average growth rate for the cash generating unit. The pre-tax discount rate of the cash flows is estimated at 24.3 percent. The recoverable amounts of goodwill and intangible assets related to INXS (digital assets segment), prepared by an independent valuation specialist, were determined based on the value in use which is calculated at the expected estimated future cash flows from the cash-generating unit, as determined according to the budget for the next five years and approved by the Company’s management. The projected cash flows for the period exceeding five years are estimated using a fixed growth rate of 3%, representing the long-term average growth rate for the cash generating unit. The pre-tax discount rate of the cash flows is estimated at 29.8 percent. The recoverable amounts as determined above exceed the carrying amounts of goodwill and intangible assets of both ILSB and INXS. The value in use for all cash-generating units may change if any changes occur in the following key assumptions: ● Discount rate. ● Growth rate for the period exceeding the five budget years. Discount rate: The discount rate reflects management’s assumptions regarding each unit’s specific risk. In determining the appropriate discount rate for each unit, the Company relied on the rate of return of long-term government bonds relevant for each unit. Sensitivity analysis of changes in assumptions: With respect to assumptions used in determining the value in use as described above, management believes that there are no reasonably expected changes in the key assumptions detailed above, which might lead to a significant change in the recoverable amounts of goodwill and intangible assets related to ILSB and INXS. |
Right-Of-Use Assets and Lease L
Right-Of-Use Assets and Lease Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Right-Of-Use Assets and Lease Liabilities [Abstract] | |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | NOTE 13: RIGHT-OF-USE ASSETS AND LEASE LIABILITIES a. Activity with respect to right-of-use assets: The Company has entered into agreements to lease office spaces, which are used for the Company’s operations. Leases of office space have lease terms of between 2 and 5 years. On June 19, 2023, the Company entered into an office space sublease agreement with a third party. The agreement terminates on May 31, 2024 and provides for a monthly lease payment of $18. As of December 31, 2023, the Company recognized a net receivable for lease payments due under the sublease agreement of $90, which is included in other receivables. Land and Right-of-use-assets, at cost: Balance as of January 1, 2022 $ 1,083 Additions during the year: New leases 827 Adjustments arising from translating financial statements from functional currency to presentation currency (46 ) CPI and revaluation differences 63 Balance as of December 31, 2022 $ 1,927 Accumulated depreciation: Balance as of January 1, 2022 $ 96 Depreciation and amortization 522 Balance as of December 31, 2022 $ 618 Right-of-use assets as of December 31, 2022, net $ 1,309 Right-of-use-assets, at cost: Balance as of January 1, 2023 $ 1,927 Additions during the year: Disposal (656 ) Lease modification (18 ) Adjustments arising from translating financial statements from functional currency to presentation currency 55 CPI and revaluation differences 30 Balance as of December 31, 2023 $ 1,338 Accumulated depreciation: Balance as of January 1, 2023 $ 618 Depreciation and amortization 411 Disposal (430 ) Balance as of December 31, 2023 $ 599 Right-of-use assets as of December 31, 2023, net $ 739 b. Activity with respect to the lease liability: Land and Lease liability, January 1, 2022 $ 1,140 Changes during the year: New leases 827 Lease payments (578 ) Interest expense 83 CPI and revaluation differences (85 ) Lease liability, December 31, 2022 $ 1,387 Current lease liability, December 31, 2022 $ 519 Non-current lease liability, December 31, 2022 $ 868 Lease liability, January 1, 2023 $ 1,387 Changes during the year: Lease payments (564 ) Interest expense 60 Lease modification (18 ) CPI and revaluation differences 4 Lease liability, December 31, 2023 $ 869 Current lease liability, December 31, 2023 $ 390 Non-current lease liability, December 31, 2023 $ 479 c. Maturity of undiscounted lease payments receivable for operating leases: December 31, 2023 2024 $ 438 2025 318 2026 80 2027 80 2028 13 $ 929 |
Inx Token Liability
Inx Token Liability | 12 Months Ended |
Dec. 31, 2023 | |
Inx Token Liability [Abstract] | |
INX TOKEN LIABILITY | N OTE 14: INX TOKEN LIABILITY Based on the terms of the INX Token, as described in Note 1, the INX Token is a hybrid financial instrument and is accounted for as a financial liability. The number of INX Tokens that the Company has issued as of December 31, 2023 and 2022, or has an obligation to issue is as follows: December 31, December 31, Total number of INX Tokens 135,570,986 133,410,776 INX Token liability $ 54,120 $ 56,847 The Company’s significant shareholder is Triple-V, wholly owned by Mr. Shy Datika, the CEO of the Company, who, as of December 31, 2023 on a combined basis, owns 5.5 percent of the outstanding INX Tokens. During the year ended on December 31, 2022, the Company granted 168,000 INX Tokens to a service provider and employees and recorded a corresponding expense of $29. Additionally, 2,534,618 INX Token warrants were exercised. During the year ended on December 31, 2023, the Company granted 11,000 INX Tokens to a service provider and an advisor, and recorded a corresponding expense of $6. Additionally, 2,149,210 INX Token warrants were exercised. On August 9, 2023, INX’s Board of Directors authorized the management to repurchase INX Tokens (the “Repurchased Tokens”) from their holders as the management deems required or desirable for the benefit of INX, provided that the aggregate purchase amount of Repurchased Tokens and common shares of the Parent Company repurchased through August 10, 2024 will not exceed $5,000. Such repurchase shall be subject to the provisions of any applicable laws and regulations, and to the advice of the Company’s legal advisors. As of December 31, 2023, there were no repurchases of the INX Tokens by the Company. The fair value of INX Tokens free of, or subject to lock-up agreements and the discount rates applied as of December 31, 2023, are as follows: Discount rate Number of INX Total fair Not subject to lock-up 0% 133,293,902 $ 53,317 Subject to lock-up through January 2024 4.05% 150,000 58 Subject to lock-up through February 2024 7.22-7.89% 600,000 222 Subject to lock-up through July 2024 14.35% 1,527,084 523 Total 135,570,986 $ 54,120 The fair value of INX Tokens free of, or subject to lock-up agreements and the discount rates applied as of December 31, 2022, are as follows: Discount rate Number of INX Total fair Not subject to lock-up 0% 122,716,614 $ 52,768 Subject to lock-up through February-April 2023 6%-9.3% 9,082,078 3,554 Subject to lock-up through May 2023 10.05-10.22% 82,000 31 Subject to lock-up through June 2023 10.52% 3,000 1 Subject to lock-up through July 2024 24.99% 1,527,084 493 Total 133,410,776 $ 56,847 The fair value per INX Token as of December 31, 2023 and 2022, for tokens that are not subject to lock-up agreement was $0.40 and $0.43 respectively, based on the closing market price. The level in the fair value hierarchy is level 1. For INX Tokens which are subject to lock-up agreement, the Company used the Finnerty model to determine the discount rates applying for such INX Tokens during their lock-up agreements. Significant inputs and assumptions are volatility and the period under the lock up, as follows: December 31, December 31, Expected term (years) 0.04-0.53 0.13-1.53 Expected volatility 89.05%-90.16% 71.56%-103.37% The level in the fair value hierarchy applied to tokens under lock-up agreements is level 2. For the years ended December 31, 2023 and 2022, the re-measurement to fair value of the INX Token liability with respect to INX Tokens issued by the Company resulted in unrealized gain of $3,775 and $226,044, respectively, and unrealized loss of $161,173 for the year ended December 31, 2021, which were recorded in profit or loss. The changes in the fair value of the INX Token liability attributable to changes in credit risk, excluding those changes in credit risk attributable to the embedded derivative, are immaterial for all reported periods and therefore no amounts have been included in other comprehensive income with respect of the credit risk. |
Inx Token Warrant Liability
Inx Token Warrant Liability | 12 Months Ended |
Dec. 31, 2023 | |
Inx Token Warrant Liability [Abstract] | |
INX TOKEN WARRANT LIABILITY | NOTE 15: INX TOKEN WARRANT LIABILITY The Company may grant restricted INX Token awards or INX Token warrants to directors, advisors, employees or service providers as compensation. As of December 31, 2023 and 2022, directors, advisors, employees and service providers held 5,574,292 and 6,972,192 restricted INX Tokens or INX Token warrants, respectively. The warrant grantees have a right to purchase INX Tokens upon the completion of the term set forth in each warrant agreement. December 31, 2023 2022 INX Token warrant liability: Warrants granted to employees, advisors and service providers $ 1,240 $ 1,580 The liability related to INX Token warrants is presented at fair value based on the below inputs. The level in the fair value hierarchy is level 3. The following table lists the inputs to the Black-Scholes pricing model used for the fair value measurement of INX Token warrants: December 31, December 31, Expected volatility of the token prices (%) 89.05% – 108.38% 67.51% – 86.39% Risk-free interest rate (%) 3.88% – 5.40% 3.88% – 4.69% Expected life of warrant (years) 0.52 – 10.00 0.08 – 10.00 Exercise price $0.01 – $2.81 $0.01 – $2.86 The following table presents changes in the number of INX Token warrants and restricted INX Token awards during the years ended December 31, 2023, and 2022: 2023 2022 Number of Weighted Number of Weighted INX Token warrants outstanding at beginning of year (*) 6,972,192 $ 0.46 5,660,861 $ 0.52 INX Token warrants granted during the year 1,265,000 0.16 4,388,043 0.25 INX Token warrants forfeited during the year (187,000 ) 0.35 (491,833 ) 1.40 INX Token warrants expired during the year (326,690 ) 0.32 (50,261 ) 0.03 INX Token warrants exercised (INX Token issued) and INX Tokens vested during the year (2,149,210 ) 0.01 (2,534,618 ) 0.06 INX Token warrants outstanding at the end of year 5,574,292 $ 0.33 6,972,192 $ 0.46 INX Token warrants exercisable at the end of year 2,606,000 $ 0.24 3,718,955 $ 0.16 (*) During the year ended December 31, 2022, the Company offered to employees an option to modify certain token warrants originally issued in 2021 and 2022. As result, during 2022, terms for 1,801,500 INX token warrants were modified to include a new exercise price and a new vesting schedule, which resulted in the increase in the fair value of the INX Token warrants of $8. Token-based compensation for years ended December 31, 2023, 2022 and 2021 is included within the following expenses: Year ended December 31 2023 2022 2021 Operating expenses (income): Research and development $ 166 $ 135 $ 262 Sales and marketing 268 437 177 General and administrative 464 820 6,736 Change in fair value of INX Token warrant liability (204 ) (8,294 ) 12,626 Total token-based compensation expense (income) $ 694 $ (6,902 ) $ 19,801 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Related Parties [Abstract] | |
RELATED PARTIES | NOTE 16: RELATED PARTIES The Company’s related parties include the Parent Company, Company’s subsidiary, associates and service providers over which the Company exercises significant influence, and key management personnel. Key management personnel are those persons having the authority and responsibility, directing and controlling the activities of the Company, directly and indirectly. Key management personnel include officers, directors and companies controlled by officers and directors. The following balances are held with or by related parties as of December 31, 2023 and 2022: December 31 2023 2022 Assets: Prepaid expenses and other receivables Receivable from Parent Company $ 216 $ 1,205 Receivable from Nabatech 976 - Prepaid expenses 21 49 Total $ 1,213 $ 1,254 Liabilities: Accounts payable and accrued expenses $ 240 $ 308 INX Token liability 4,485 5,531 INX Token warrant liability 671 1,140 Total $ 5,396 $ 6,979 Receivable from Parent Company includes general and administrative expenses incurred by the Parent Company and paid by INX. Revenue and expense items recognized in transactions with related parties during the years ended December 31, 2023, 2022 and 2021 include service revenue earned from Nabatech and compensation provided to key management personnel and directors, as follows: Year ended December 31 2023 2022 2021 Service revenue $ 976 $ - $ - $ 976 $ - $ - Cost of service: Compensation and benefits 226 - - $ 226 $ - $ - Research and Development: Compensation and benefits $ 234 $ 465 $ 598 Share-based compensation (*) 190 70 391 INX Token-based compensation 41 6 448 $ 465 $ 541 $ 1,437 Sales and marketing: Compensation and benefits - 369 4,406 Share-based compensation (*) - 176 2,783 INX Token-based compensation - 298 3,878 $ - $ 843 $ 11,067 General and administrative: Compensation and benefits 2,934 2,204 1,577 Share-based compensation (*) 1,702 543 6,883 INX Token-based compensation 396 278 2,249 $ 5,032 $ 3,025 $ 10,709 Total compensation and benefits $ 5,723 $ 4,409 $ 23,213 Change in fair value of INX Token and warrant liabilities $ (830 ) $ (20,133 ) $ 24,673 (*) See Note 19 for description of options granted by the Parent Company to employees of the Company that are exercisable into Common shares of the Parent Company. Each of the Company’s independent directors is entitled to receive an option to purchase 3,500 INX Tokens each month at an exercise price equal to the fair market value of the INX Token at the date of the grant. Service Agreement with Nabatech Effective on January 1, 2023, as part of the joint venture SICPA Agreement, the Company entered into a service agreement with Nabatech, under which it provides technology support and advisory services to Nabatech, an entity formed for the development of central bank digital currency solutions with the utilization of blockchain technology, and in which the Company holds 33 percent ownership. During the year ended December 31, 2023, the Company recognized service revenue and cost of sales of $976 and $976, respectively, for providing services to Nabatech. As of December 31, 2023, prepaid expenses and other receivables includes $976 due from Nabatech. Agreement with A-Labs Finance and Advisory Ltd. (“A-Labs”) Under a service agreement dated September 26, 2017, as amended in December 2017 and January 31, 2018, A-Labs, a shareholder of the Company, provided services to the Company which included, among others, development, planning, management, execution, branding and marketing outside of the US with relation to the Offering of the INX Tokens on behalf of the Company (the “A-Labs Agreement”). In consideration for these services, during 2021, the Company paid A-Labs $4,140, which is recorded in general and administrative expenses. A-Labs also received a grant of 4,550,000 INX Tokens at a fair value of $6. In addition, pursuant to an agreement signed contemporaneously with the A-Labs Agreement in 2017, the Company issued 1,120,000 Ordinary shares to A-Labs. The fair value of the shares issued of $136 ($175 less the payment of $39 required for those shares), is deemed as additional consideration for the services to be provided by A-Labs and was recorded during the year ended December 31, 2021. In addition, on July 29, 2021, the Company made a payment to A-Labs of $1,001 and granted A-Labs with an option to purchase 1,527,084 Tokens. These options were exercised during 2022 and vest on July 12, 2024. During the year ended December 31, 2021, the Company recognized an expense related to token options of $4,140, which is recorded in general and administrative expenses. Agreement with Weild Capital, LLC (“Weild Capital”) On January 2, 2023, the Parent Company entered into and advisory services agreement with Weild Capital LLC (dba Weild & Co.) (“Weild Agreement”), a wholly owned subsidiary of Weild & Co., Inc., of which Mr. David Weild is Chairman & CEO. Mr. Weild serves as the Chairman of the board of the Company. Under the advisory agreement, the Parent Company agreed to pay Weild Capital a nonrefundable advisory fee of $90 plus in a sale transaction a transaction fee of three and a half percent (3.5%) of the aggregate transaction value up to $60,000, and four and a half percent (4.5%) of the aggregate transaction value in excess of $60,000, subject to a minimum transaction fee of $1,400, to be paid upon closing. In addition, under the terms of the agreement, in the event that an investment transaction is consummated during the term of the agreement or within 12 months after the termination of the Weild Agreement, the Parent Company is obligated to pay a financing placement fee equal to five and half percent (5.5%) of gross proceeds received, excluding any proceeds provided by existing shareholders of the Parent Company. Further, Weild Capital shall receive warrants to purchase the equivalent securities on comparable terms subject to such investment transaction in an amount equal to three percent (3%) of the gross proceeds received by the Parent Company under the investment transaction. |
Convertible Loans
Convertible Loans | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Loans [Abstract] | |
CONVERTIBLE LOANS | NOTE 17: CONVERTIBLE LOANS The Company entered into convertible loan agreements dated November 27, 2017 (“Convertible Loans”) with three individuals, of which one is an officer of the Company (the “Lenders”), for an aggregate amount of $144. The loans are convertible at any time and at each Lender’s sole discretion, into an aggregate total of 10,029,193 Ordinary shares of the Company or repaid at the earlier of (i) the lapse of five years; (ii) an initial public offering of the Company’s shares or (iii) upon a Deemed Liquidation Event as defined in the Company’s Articles of Association. The loans bear 2% interest compounded annually. In addition, the Lenders were granted the right to purchase a total of 2,690,623 INX Tokens. Until 2018, the Company received $144, in consideration for the convertible loans and INX Tokens, of which $5 were attributed to the fair value of the INX Tokens. The fair value of the loans received until 2018, amounted to $93, resulting in an effective interest rate of 60% and the balance of $46, was attributed to the conversion option, which was recorded in equity. During the year ended December 31, 2021, interest and amortization of discount on the convertible loans amounted to $0. On February 25, 2021, holders of Convertible loans exercised their right under their loan agreements and converted the outstanding amounts provided by them to the Company under such loan agreements into an aggregate of 956,333 Ordinary Shares of the Company. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 18: EQUITY Composition of share capital: December 31 2023 2022 Number of shares Authorized Issued and Authorized Issued and Ordinary shares with 0.01 GBP par value per share 100,000,000 47,635,875 100,000,000 47,635,875 Conversions of Simple Agreements for Future Equity On February 21, 2020, the Board of Directors of the Company approved capital raise of up to $1,500 in the form of a Simple Agreements for Future Equity (the “Third SAFE”). The Third SAFE was to be automatically converted into Company’s ordinary shares of capital stock at a price per share equal to the lower of, (i) 25% discount on the base (undiscounted) price per share of the qualifying financing, and (ii) $1.526 per share. An aggregate amount of $579 has been raised by the Company pursuant to the Third SAFE in 2020, including $100 and $30 from Triple V and A-Labs, respectively. In March 2021, in the absence of the qualified financing during the 12 months following March 2020, the effective date of such Third SAFE, the Company converted the investment received under the Third SAFE into 379,593 Ordinary Shares at a price per share of $1.526. Exercise of Options under SAFE Agreements During 2021, several investors exercised equity options that were granted to them under the SAFE agreement dated August 30, 2019, and were issued 268,179 ordinary shares of the Company at a price of $1.953 per share. During 2021, several investors exercised equity options that were granted to them under the SAFE dated March 31, 2020, and were issued 115,661 ordinary shares of the Company at a price of $1.696 per share. On September 13, 2020, the Company entered into a subscription agreement with a new investor pursuant to which the investor invested in the Company $1,500 in consideration for 621,375 ordinary shares. The new investor was also entitled to receive, for no additional consideration a warrant to purchase 596,659 ordinary shares of the Company, at a price of $2.514 per share, until the warrant’s first-year anniversary. On December 31, 2021 the new investor exercised the options that was granted 596,659 ordinary shares at a price of $2.514 per share. Proceeds from option exercise of $1,500 were received on January 4, 2022. Private Placement As part of the Transaction (see Note 1), on January 10, 2022, the Company completed a private placement of 31,680,000 INX subscription receipts (units) for gross proceeds of $31,283. Each unit consists of one Ordinary share and one-half of one Ordinary share purchase warrant exercisable for two years at an exercise price of CAD1.88 ($1.49) per share. As the exercise price of the warrants is denominated in CAD while the functional currency of the Company is the U.S. Dollar, the warrants are accounted for as a derivative liability. The warrants were valued at $4,255 as of the date of the private placement. The balance of gross proceeds from the private placement in the amount of $27,028 was allocated to ordinary shares with the addition to equity of $25,336, net of the issuance cost of $1,692. Agents of the private placement collectively received cash commissions of $1,951, of which $259 was allocated to the warrants and remaining amount was recorded as transaction fees in profit or loss. The placement agents also received 1,810,740 agent compensation options exercisable into one common share of the Parent Company at an exercise price of CAD1.25 ($0.99). The options were valued at $515. As a result of the Transaction (see Note 1), effective on January 10, 2022, options granted and warrants issued by INX prior to such date were surrendered and cancelled, and new options and warrants of the Parent Company were issued to holders with equivalent terms, adjusted for the Exchange Ratio, as defined under the agreement. Upon the cancellation of the private placement warrants, the warrant liability in the amount of $4,255 was derecognized and recorded as a contribution to equity. Composition of other comprehensive income (loss) (OCI): Reserve from Gain (loss) Total Balance as of December 31, 2020 $ - $ - $ - Realized loss on available-for sale securities reclassification adjustment into net income (loss) - - - Unrealized gain on available-for-sale securities - - - Foreign currency translation - 188 188 Balance as of December 31, 2021 $ - $ 188 $ 188 Realized loss on available-for sale securities reclassification adjustment into net income (loss) 424 - 424 Unrealized gain on available-for-sale securities (1,353 ) - (1,353 ) Foreign currency translation - (513 ) (513 ) Balance as of December 31, 2022 $ (929 ) $ (325 ) $ (1,254 ) Realized loss on available-for sale securities reclassification adjustment into net income (loss) 77 - 77 Unrealized gain on available-for-sale securities 1,086 - 1,086 Foreign currency translation - (53 ) (53 ) Balance as of December 31, 2023 $ 234 $ (378 ) $ (144 ) |
Share-Based Payment
Share-Based Payment | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment [Abstract] | |
SHARE-BASED PAYMENT | NOTE 19: SHARE-BASED PAYMENT a. Shares reserved for Employee Stock Option Plan of the Parent Company: INX’s board of directors adopted the INX Limited Share Ownership and Award Plan (2021) on February 22, 2021, as amended from time to time (the “Share Ownership and Award Plan” or the “INX Plan”), and INX shareholders approved the INX Plan on March 18, 2021. In connection with the Transaction (see Note1), the INX Plan was terminated and replaced by the Parent Company Omnibus Equity Incentive Compensation Plan (the “Plan”). The Plan provides for grants of options to purchase the Parent Company’s common shares and restricted share units to employees, directors and service providers of the Company. The Plan includes U.S. and Israeli appendices that further specify the terms and conditions of grants of options and restricted share units to such grantees. Upon closing of the Transaction, Awards granted pursuant to the INX Plan were exchanged for equivalent awards under the Plan. As of closing of the Transaction, 25,352,832 common shares of the Parent Company were authorized for issuance pursuant to the Plan. On June 22, 2022, the Parent Company shareholders approved further increase of the common shares reserved for the purpose of the Plan. Subject to certain capitalization adjustments, the aggregate number of common shares that may be issued pursuant to share awards under the Plan may not exceed 37,408,948 common shares of the Parent Company. b. Share options and restricted stock of the Parent Company granted to employees, directors and service providers under the Plan during years ended on December 31, 2023 and 2022: 1. On March 15, 2022, two officers received 5,036,132 restricted shares of the Parent Company at cashless basis with the vesting period over approximately 3 years. 2. On March 15, 2022, the Parent Company granted certain employees and a service provider options to purchase 5,129,334 Common Shares of the Parent Company at a price per share equal to the fair value per share at the effective date of the grant at a price of CAD 0.64 ($0.50), with the vesting period over 4 years. 3. On March 24, 2022, the Parent Company granted one employee options to purchase 509,617 Common Shares of the Parent Company at CAD 0.76 ($0.60), a price per share equal to the fair value per share at the effective date of the grant, with the vesting period over 4 years. 4. On June 30, 2022, the Parent Company granted one employee options to purchase 786,535 Common Shares of the Company at CAD 0.31 ($0.25), a price per share equal to the fair value per share at the effective date of the grant. Options were fully vested at the time of the grant. 5. On June 30, 2022, the Parent Company granted one employee options to purchase 1,334,322 Common Shares of the Parent Company at CAD 0.31 ($0.25), a price per share equal to the fair value per share at the effective date of the grant. Options shall vest evenly over the period of 4 years with the first anniversary on May 2, 2023, and all options fully vested on May 2, 2026. 6. On September 21, 2022, the Parent Company granted one employee options to purchase 1,325,946 Common Shares of the Parent Company at CAD 0.265 ($0.20), a price per share equal to the fair value per share at the effective date of the grant. Options shall vest evenly over the period of over 3 years with the first anniversary on September 21, 2023, and all options fully vested on September 21, 2025. 7. On October 18, 2022, the Parent Company granted one employee options to purchase 254,808 Common Shares of the Parent Company at CAD 0.235 ($0.17), a price per share equal to the fair value per share at the effective date of the grant. Options shall vest evenly over the period of over 3 years with the first anniversary on October 18, 2023, and all options fully vested on October 18, 2025. 8. On November 30, 2022, the Parent Company committed to grant, and subsequently in 2023 issued, options to its independent directors to purchase 928,399 Common Shares of the Parent Company at CAD 0.165 ($0.12), a price per share equal to the fair value per share at the date of the commitment to grant the options. 397,886 options vest immediately on the date of the grant and remaining 530,514 options shall vest over the period of over 2 to 3 years with the first anniversary on November 30, 2023, and all options fully vested on November 30, 2025. 9. On January 19, 2023, certain employees, directors and service providers received 1,996,430 restricted Common Share units of the Parent Company at cashless basis. Restricted share units shall vest over the period of one year, with 1/12 of the award vesting at the beginning of each calendar month, and all shares fully vested on January 19, 2024. 10. On January 19, 2023, an officer, through his wholly owned entity, and a service provider, received 912,721 restricted Common Share units of the Parent Company at cashless basis. All shares shall fully vest on January 31, 2025. 11. On May 12, 2023, the Parent Company granted to certain employees options to purchase 3,418,034 Common Shares of the Parent Company at CAD 0.170 ($0.13), a price per share equal to the fair value per share at the effective date of the grant. Options shall vest evenly over the period of 4 years with the first anniversary on May 12, 2024, and all options fully vested on May 12, 2027. 12. On November 19, 2023, the Parent Company granted one employee options to purchase 520,000 Common Shares of the Parent Company at CAD 0.185 ($0.14), a price per share equal to the fair value per share at the effective date of the grant. Options shall vest evenly over the period of 4 years with the first anniversary on November 19, 2024, and all options fully vested on November 19, 2027. c. For years ended December 31, 2023, 2022 and 2021, the Company recorded share-based compensation expenses of $2,724, $1,135 and $10,899, respectively, related to stock options and restricted stock granted under the Plan. d. The table below summarizes the assumptions that were used to estimate the fair value of the options granted under the Plan using the Black- Scholes option pricing model: December 31, December 31, Expected term (years) 10 10 Expected volatility 87.05% -86.22% 89.78% -94.32% Exercise price $0.13-0.14 $0.17-0.55 Risk-free interest rate 2.886% -3.684% 1.37% -3.356% Dividend yield - - The weighted average fair value of the options granted during years ended December 31, 2023 and 2022, based on the exercise price as of the grant date, was at $0.12 and $0.37 per option, respectively. |
Income (Loss) Per Share
Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Income (Loss) Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | NOTE 20: INCOME (LOSS) PER SHARE The table below presents basic and diluted net income (loss) per Ordinary Share for the years ended December 31, 2023, 2022 and 2021, respectively: December 31, December 31, December 31, Earnings (loss) per share, basic and diluted $ (0.25 ) $ 4.52 $ (14.30 ) The net income (loss) and weighted average number of ordinary shares used in the calculation of basic income (loss) per share are as follows: Year ended December 31 2023 2022 2021 Net income (loss) used in the calculation of earnings (loss) per share, basic and diluted $ (12,055 ) $ 211,334 $ (215,235 ) Weighted average number of Ordinary Shares for the purposes of earnings (loss) per share, basic and diluted 47,635,875 46,767,930 15,048,576 |
Financial Risks and Risk Manage
Financial Risks and Risk Management | 12 Months Ended |
Dec. 31, 2023 | |
Financial Risks and Risk Management [Abstract] | |
FINANCIAL RISKS AND RISK MANAGEMENT | NOTE 21: FINANCIAL RISKS AND RISK MANAGEMENT Financial risk management objectives and policies Activities of the Company may expose it to a variety of financial and related risks: credit risk, market risk, liquidity risk, digital asset risk, loss of access risk, irrevocability of transactions, and regulatory oversight risk, among others. The Company seeks to mitigate potential adverse effects of these risks on performance and the Company’s financial position by employing experienced personnel, monitoring of market events, maintaining sufficient liquidity, implementing appropriate policies and procedures addressing significant financial risks and diversifying the Company’s business strategy within the constraints of the Company’s objectives. Credit risk Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into, causing the other party to incur a financial loss. The Company’s cash and cash equivalents, investments and digital assets are exposed to credit risk. The Company limits its credit risk by placing its assets with high credit quality banks, financial institutions and digital assets custodians that are believed to have sufficient capital to meet their obligations. While the Company intends to only transact with counterparties that it believes to be creditworthy there can be no assurance that a counterparty will not default and that the Company will not sustain a material loss as a result. It is the Company’s policy to monitor the creditworthiness of its counterparties and to minimize the concentration of credit risk to mitigate significant loss caused by potential counterparty’s failure. Market risk Market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or foreign currency risk), whether caused by factors specific to an individual investment, its issuer, or factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. The maximum risk resulting from financial instruments is equivalent to their fair value. The Company’s investments are susceptible to also market risk arising from uncertainties about future prices of the instruments. The Company moderates this risk through the various investment strategies within the parameters of the Company’s investment guidelines. As of December 31, 2023, management’s estimate of the effect on equity investments due to a +/- 20% change in the market prices of the Company’s investments, with all other variables held constant, is +/- $5,575. (December 31, 2022 - $8,000). Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due, as well as the risk of not being able to liquidate invested assets at reasonable prices. The Company manages liquidity risk by maintaining sufficient cash balances and investing capital reserves in highly rated, marketable financial instruments that allow meeting liquidity obligations in the ordinary course of business as well as under increased liquidity demands. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in foreign currency exchange rates. The Company’s exposure to foreign currency risk relates primarily to the Company’s continuing operation (when revenue or expense is recognized in a different currency from the Company’s presentation currency). As of December 31, 2023 and 2022, management’s estimate of the Company’s exposure related to the price fluctuation in foreign currency is not material. Geopolitical risk Significant portion of Company’s operations and management is based in Israel. On October 7, 2023, Hamas launched an attack on Israel and a war started. As of the date of issuance of the consolidated financial statements, there has been no interruption or adverse impact on the Company’s business activities resulting from the war. The Company maintains a comprehensive business continuity plan, and has taken necessary steps in line with such plan, in an effort to ensure that operations and service to customers remain consistent. |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
OPERATING SEGMENTS | NOTE 22: OPERATING SEGMENTS a. Reportable segments represent the two lines of business for which the Company expects to earn income, incur costs and allocate resources. Operating segments are identified based on information that is reviewed by the chief operating decision maker (“CODM”) and senior management to make decisions about resources to be allocated and assess operational and financial performance. Accordingly, for management purposes, the Company is organized into operating segments as follows: 1. Brokerage segment - facilitates financial transactions between banks and offers a full range of brokerage services to banks worldwide. 2. Digital assets segment - development and operation of an integrated, regulated solutions for trading of blockchain assets, and providing related services for products utilizing blockchain technology. b. Revenue and net income (loss) by the reporting operating segment: Brokerage Segment Digital Asset Segment Total Year ended December 31, 2023: Revenue $ 4,913 $ 12,788 $ 17,701 Total income $ 4,913 $ 667 $ 5,580 Segment net income (loss) 65 (15,690 ) (15,625 ) Unallocated corporate expenses: Other income, net 3,775 Net loss before taxes $ (11,850 ) Year ended December 31, 2022: Revenue $ 3,621 $ 9,598 $ 13,219 Total income $ 3,621 $ 652 $ 4,273 Segment net loss (157 ) (14,434 ) (14,591 ) Unallocated corporate expenses: Other income, net 226,044 Net income before taxes $ 211,453 Brokerage Segment Digital Asset Segment Total Year ended December 31, 2021: Revenue $ 2,278 $ 266 $ 2,544 Total income $ 2,278 $ 266 $ 2,544 Segment net income (loss) 383 (54,288 ) (53,905 ) Unallocated corporate expenses: Other expense, net (161,173 ) Net loss before taxes $ (215,078 ) Unallocated corporate expenses for years ended December 31, 2023, 2022 and 2021 include the change in fair value of INX Tokens. c. Select information by reporting operating segment: Brokerage Segment Digital Asset Segment Total As of December 31, 2023: Segment assets $ 5,652 $ 66,864 $ 72,516 Segment liabilities $ 1,280 $ 61,773 $ 63,053 As of December 31, 2022: Segment assets $ 2,351 $ 80,054 $ 82,405 Segment liabilities $ 1,077 $ 63,644 $ 64,721 d. Non-current assets, other than financial assets, located in the country of domicile and in foreign countries: Non-current assets December 31, 2023 December 31, 2022 United States $ 2,500 $ 2,848 State of Israel $ 4,130 $ 4,663 Gibraltar $ - $ 11 e. Revenue based on geographic locations: Revenue reported in the financial statements are attributed to countries based on the location of customers, as follows: Year ended December 31 2023 2022 2021 Brokerage Segment: United Kingdom $ 2,653 $ 1,083 $ 911 State of Israel $ 1,984 $ 1,562 $ 911 United States $ 16 $ 652 $ 248 Gibraltar $ - $ - $ - Other $ 260 $ 324 $ 208 Digital Asset Segment: Gibraltar $ 11,380 $ 8,946 $ - Switzerland $ 976 $ - $ - United States $ 149 $ 170 $ 25 Japan $ 107 $ 162 $ 97 State of Israel $ 21 $ 90 $ 90 United Kingdom $ 4 $ 123 $ 6 Other $ 151 $ 107 $ 48 f. Revenue from major customers: Revenue from major customers which account for 10 percent or more of total revenue as reported in the financial statements: Year ended December 31 2023 2022 2021 Brokerage Segment: Customer A $ 592 $ 452 $ 265 Customer B $ 533 $ - $ - |
Employee Benefits Expense
Employee Benefits Expense | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits Expense [Abstract] | |
EMPLOYEE BENEFITS EXPENSE | NOTE 23: EMPLOYEE BENEFITS EXPENSE Share-based and token-based compensation, and short-term employee benefits included in consolidated statements of comprehensive income (loss) are as follows: Year ended December 31 2023 2022 2021 Cost of service Compensation and benefits $ 505 $ - $ - Share-based compensation - - - Token-based compensation - - - $ 505 $ - $ - Research and development Compensation and benefits $ 2,053 $ 2,159 1,286 Share-based compensation 400 2 1,105 Token-based compensation 166 125 262 $ 2,619 $ 2,286 $ 2,653 Sales and marketing Compensation and benefits 1,735 1,160 677 Share-based compensation 443 1,022 2,809 Token-based compensation 268 435 177 $ 2,446 $ 2,617 $ 3,663 General and administrative Compensation and benefits 5,669 6,493 5,072 Share-based compensation 1,882 111 6,985 Token-based compensation 464 817 6,175 $ 8,015 $ 7,421 $ 18,232 During the years ended December 31, 2023, 2022 and 2021, the Company incurred cost of $931, $899 and $608, respectively, related to employee post-retirement benefit plans contributions. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2023 | |
Taxes on Income [Abstract] | |
TAXES ON INCOME | NOTE 24: TAXES ON INCOME The Company is an Israeli company for tax purposes and as such, subject to Israeli taxes. Subsidiary entities are generally subject to taxes in the jurisdictions where they are located or have the majority of operations and management control, therefore income taxes are calculated as if the Company filed separate income tax returns. The following tax rates were applicable to the individual entities based on the country of their organization: ● Israel corporate income tax rate - 23 percent in 2023, 2022 and 2021 ● United States federal weighted tax rate - 21 percent in 2023, 2022 and 2021 (30.8 percent state weighted tax rate) ● Gibraltar tax rate - 12.5 percent in 2023, 2022 and after July 31, 2021, 10 percent before August 1, 2021. a. Tax assessments: INX, ILSB and Midgard are subject to the tax assessment evaluation by the Israeli Tax Authority. After the receipt of such tax assessment the entity is no longer subject to the tax examination by the tax authority. The Company’s subsidiary, ILSB received the final tax assessment through 2017 tax year, whereas, Midgard and INX, has not received the final tax assessment since its incorporation. b. Carryforward losses for tax purposes and other temporary differences: Carryforward operating tax losses of the Group total approximately $67,137 as of December 31, 2023. Deferred tax assets relating to these losses and to other deductible temporary differences were not recognized because their utilization in the foreseeable future is not probable. c. Theoretical tax: As the Company and its subsidiaries incurred operating losses during the years ended December 31, 2023, 2022 and 2021 for which deferred income taxes were not recorded, as mentioned above in Note 24b, the reconciliation between the tax expense, assuming that all the income and expenses, gains and losses in the statement of income were taxed at the statutory tax rate, and the taxes on income recorded in profit or loss, does not provide significant information and therefore is not presented. During years ended December 31, 2023, 2022 and 2021, the Company recognized income tax expense of $205, $119 and $0, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25: SUBSEQUENT EVENTS Grants under Equity and Token Incentive Compensation Plan of the Parent Company: On January 8, 2024, a key officer, through his wholly owned entity, was awarded 2,337,212 restricted share units of the Parent Company. All shares shall fully vest on January 8, 2028. In addition, the officer was also awarded 1,000,000 restricted INX Tokens subject to a lock-up agreement until January 8, 2027. On February 13, 2024, a former service provider filed a lawsuit against one of the Company’s subsidiaries for a breach of contract. The total amount value of the claim is approximately $184. Management of the Company intends to vigorously defend its position against this claim and believes that its resolution will not result in a material adverse effect on the Company’s financial position. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation of the financial statements | a. Basis of presentation of the financial statements: These consolidated financial statements have been prepared in accordance with International Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Reporting Interpretations Committee (“IFRIC”). The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value and digital assets characterized as inventory which are measured at fair value less cost to sell recognized through profit or loss. |
Consolidated financial statements | b. Consolidated financial statements: The consolidated financial statements comprise the financial statements of the Company and companies that are controlled by the Company (subsidiaries). Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Potential voting rights are considered when assessing whether an entity has control. The consolidation of the financial statements commences on the date on which control is obtained and ends when such control ceases. The financial statements of the Company and of the subsidiaries are prepared as of the same dates and periods. The consolidated financial statements are prepared using uniform accounting policies by all companies in the group. Significant intra group balances and transactions and gains or losses resulting from intragroup transactions are eliminated in full in the consolidated financial statements. |
Functional and presentation currencies | c. Functional and presentation currencies: 1. Functional currency and presentation currency: The consolidated financial statements are presented in U.S. Dollars. The Company determines the functional currency of each entity through an analysis of the consideration factors identified in International Accounting Standard (“IAS”) 21. Assets, including fair value adjustments upon acquisition, and liabilities of an investee which is a foreign operation, are translated at the closing rate at each reporting date. Profit or loss items are translated at average exchange rates for all periods presented. The resulting translation differences are recognized in other comprehensive income (loss). 2. Transactions, assets and liabilities in foreign currency: Transactions denominated in foreign currency are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are translated at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences, other than those capitalized to qualifying assets or accounted for as hedging transactions in equity, are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currency and measured at fair value are translated into the functional currency using the exchange rate prevailing at the date when the fair value was determined. 3. Index-linked monetary items: Monetary assets and liabilities linked to the changes in the Israeli Consumer Price Index (“Israeli CPI”) are adjusted at the relevant index at each reporting date according to the terms of the agreement. |
Use of material estimates and judgements | d. Use of material estimates and judgements: The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from those estimates. Key assumptions made in the consolidated financial statements concerning uncertainties at the reporting date that may result in a material adjustment to the carrying amount of the INX Token liability and INX Token warrant liability within the next financial year are discussed in Note 14 and Note 15. Many aspects of the digital currency and blockchain industry have not yet been addressed by the current IFRS guidance. The Company is required to make assumptions and judgments as to its accounting policies and the application thereof, which is disclosed in the notes to the consolidated financial statements. If specific guidance is enacted by the IASB in the future, the impact may result in changes to the Company’s profit or loss and financial position as currently presented. Determining the fair value of share-based payment transactions The fair value of share-based payment transactions is determined upon initial recognition by an acceptable option pricing model. The inputs to the model include share price, exercise price and assumptions regarding expected volatility, expected life of share option and expected dividend yield. Discount rate for a lease liability When the Company is unable to readily determine the discount rate implicit in a lease in order to measure the lease liability, the Company uses an incremental borrowing rate. That rate represents the rate of interest that the Company would have to pay to borrow over a similar term and with similar security, the funds necessary to obtain an asset of similar economic environment. When there are no financing transactions that can serve as a basis, the Company determines the incremental borrowing rate based on its credit risk, the lease term and other economic variables deriving from the lease contract’s conditions and restrictions. In certain situations, the Company is assisted by an external valuation expert in determining the incremental borrowing rate. Impairment of goodwill The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment. This requires management to make an estimate of the projected future cash flows from the continuing use of the cash-generating unit (or a group of cash-generating units) to which the goodwill is allocated and also to choose a suitable discount rate for those cash flows. Deferred tax assets Deferred tax assets are recognized for unused carryforward tax losses and deductible temporary differences to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the timing and level of future taxable profits, its source and the tax planning strategy. Determining the fair value of an unquoted financial liability The fair value of unquoted warrant liability in Level 3 of the fair value hierarchy is determined using the Black and Scholes option pricing model. The inputs to the model include share price, exercise price and assumptions regarding expected volatility, expected life of and expected dividend yield. |
Financial instruments | e. Financial instruments: 1. Financial assets, including short-term and long-term investments, and derivative assets, are initially recognized at fair value plus directly attributable transaction costs, except for financial assets measured at fair value through profit or loss in respect of which transaction costs are recorded in profit or loss. The Company classifies and measures debt instruments in the financial statements based on the following criteria: - The Company’s business model for managing financial assets; and - The contractual cash flow terms of the financial asset. a) Debt instruments are measured at fair value through other comprehensive income when: The Company’s business model is to hold the financial assets in order to both collect their contractual cash flows and to sell the financial assets, and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial recognition, instruments in this category are measured at fair value. Gains or losses from fair value adjustments, excluding interest and exchange rate differences, are recognized in other comprehensive income. b) Debt instruments are measured at fair value through profit or loss when: A financial asset which is a debt instrument does not meet the criteria for measurement at amortized cost or at fair value through other comprehensive income. After initial recognition, the financial asset is measured at fair value and gains or losses from fair value adjustments are recognized in profit or loss. c) Derivative instruments As part of its risk management activities, the Company held positions in derivatives such as digital currency forwards. A digital currency forward is an exchange traded contract which represents a legal agreement to either buy or sell a referenced digital asset at a predetermined price at some time in the future. Digital assets forwards utilized by the Company settle in a stable coin. Derivative assets are carried at fair value and any realized and unrealized gains (losses) are recognized through profit and loss. 2. Loans and receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. These are measured subsequent to initial recognition at amortized cost. Impairment of financial assets: At the end of each reporting period, the Company evaluates the loss allowance for financial debt instruments which are not measured at fair value through profit or loss. The Company has short-term financial assets such as trade receivables for which the Company applies the simplified approach in IFRS 9 and measures the loss allowance in an amount equal to the expected lifetime credit losses. With regards to trade receivables, the Company grants its customers interest-free credit for periods of 30-90 days. As of December 31, 2023 and 2022, there were no material past-due accounts and no allowance for doubtful accounts was recorded. 3. Derecognition of financial assets: A financial asset is derecognized only when: a) Contractual rights to the cash flows from the financial asset have expired; or b) The Company has transferred substantially all risks and rewards deriving from the contractual rights to receive cash flows from the financial asset or has neither transferred nor retained substantially all risks and rewards of the asset, but has transferred control of the asset; or c) The Company has retained its contractual rights to receive cash flows from the financial asset but has assumed a contractual obligation to pay the cash flows in full without material delay to a third party. 4. Financial liabilities: Financial liabilities are initially recognized at fair value. After initial recognition, the accounting treatment of financial liabilities is based on their classification as follows: a) Financial liabilities at amortized cost: After the initial recognition, loans and other liabilities are measured based on their terms at amortized cost less directly attributable transaction costs using the effective interest method. b) Financial liabilities at fair value through profit or loss: These liabilities include financial liabilities held for trading (including the INX Token warrant liability) and financial liabilities designated upon initial recognition as at fair value through profit or loss. Changes in the fair value of liabilities held for trading are recognized in profit or loss in financial expenses. Based on the terms of the INX Token, as described in Note 1, the INX Token is a hybrid financial instrument. The host instrument is a financial liability due to the right of the INX Token holder to use the INX Token to pay transactions fees on the INX.One Trading Platform. The INX Token is considered a puttable instrument which is a financial liability in accordance with IAS 32, Financial Instruments: Presentation. INX’s obligation to make a pro rata distribution annually to the INX Token holders from INX’s Adjusted Operating Cash Flow is an embedded derivative. The Company views INX’s operating cash flows as a financial variable, and therefore, the embedded derivative requires bifurcation pursuant to IFRS 9. The Company elected, in accordance with IFRS 9, to designate the entire financial liability (including the embedded derivative) at fair value through profit and loss. Accordingly, the INX Token liability and the INX Token warrant liability are remeasured to fair value at the end of each reporting period. The change in the fair value of the INX Token liability that is attributable to changes in credit risk, excluding those changes in credit risk attributable to the embedded derivative, to the extent there are any, would be presented in other comprehensive income. The remaining amount of the change in the fair value of the INX Token liability would be presented in profit or loss. At December 31, 2023, the change in fair value of the INX Token liability is included in profit or loss. Should the INX Token be used to pay for services provided by INX, revenue would be recognized and the respective portion of the INX Token liability would be derecognized. Additionally, the fair value of INX Tokens issued in consideration for services provided to the Company would be recognized as compensation expense when services are provided. 5. Offsetting financial instruments: Financial assets and financial liabilities are offset, and the net amount is presented in the statement of financial position if there is a legally enforceable right to set off the recognized amounts and there is an intention either to settle on a net basis or to realize the asset and settle the liability simultaneously. The right of set-off must be legally enforceable not only during the ordinary course of business of the parties to the contract but also in the event of bankruptcy or insolvency of one of the parties. 6. Compound financial instruments: Convertible debt which contains both an equity component and a liability component are separated into two components. This separation is performed by first determining the liability component based on the fair value of an equivalent non-convertible liability. The value of the conversion component is determined to be the residual amount. Directly attributable transaction costs are apportioned between the equity component and the liability component based on the allocation of proceeds to the equity and liability components. 7. Simple Agreement for Future Equity (“SAFE”): INX has entered into equity funding agreements (SAFEs) pursuant to which funds received by INX from investors have been automatically converted into the same class of share capital of INX that were issued in a qualifying financing, as defined in the SAFEs. INX is not obligated to complete a qualifying financing or to approve the issuance of shares or dilutive securities within the term specified in the SAFE that would result in the issuance of a variable number of the INX’s equity instruments. Accordingly, as the SAFEs are a non-derivative for which the conversion price into the Company’s equity instruments is fixed at the end of its term, the consideration received from investors pursuant to the SAFEs is classified as equity. As of December 31, 2023, all INX SAFE’s have been converted into ordinary shares. |
Fair value measurement | f. Fair value measurement: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement is based on the assumption that the transaction will take place in the asset’s or the liability’s principal market, or in the absence of a principal market, in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. Fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities measured at fair value or for which fair value is disclosed are categorized into levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement. The Company classifies the bases used to measure certain assets and liabilities at their fair value. Assets and liabilities carried or measured at fair value have been classified into three levels based upon a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The levels are as follows: Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Significant inputs other than within Level 1 that are observable for the asset or liability, either directly (i.e.: as prices) or indirectly (i.e.: derived from prices); Level 3: Inputs for the assets or liabilities that are not based on observable market data and require management assumptions or inputs from unobservable markets. For details of the fair value of the INX Token liability, see Note 14. For the fair value of INX Token warrant liability, see Note 15. The fair values of current financial assets and financial liabilities, other than the INX Token and INX Token warrant liability, approximate their carrying amounts due to the short-term maturity of these instruments. |
Investments | g. Investments: Investments, other than the investment in an associate, are accounted for as financial assets, which are initially recognized at fair value and subsequently measured at fair value through other comprehensive income (loss). The Company’s investment in an associate represents an ownership share in an entity in which the Company has significant influence and that is accounted for under the equity method in accordance with IAS 28 Investments in Associates Losses of an associate are recognized by the Company to the extent of its investment in the associate plus any losses that the Company may incur as a result of its legal or constructive obligations on behalf of the associate. As of December 31, 2023, the Company’s share of losses incurred by the associate exceeds its investment amount and is reflected in the profit or loss as loss on investment in associate. Loss in excess of the Company’s investment amount is recognized as a non-current liability. The equity method is applied until the loss of significant influence or the classification of the investment as held for sale. On the date of loss of significant influence, the Company would measure any remaining investment in the associate at fair value and recognize in profit or loss the difference between the fair value of any remaining investment plus any proceeds from the sale of the investment in the associate and the carrying amount of the investment on that date. |
Digital assets | h. Digital assets: Digital assets are measured at cost on the initial recognition. Digital assets characterized as inventory (current assets): The Company has assessed that it acts in a capacity as a commodity broker trader as defined in IAS 2, Inventories, in characterizing its holdings of digital assets as inventory. Such digital assets held by the Company are principally acquired for the purpose of selling in the near future and generating a profit from fluctuations in price or broker-traders’ margin, therefore, they are accounted for as inventory, and changes in fair value (less cost to sell) are recognized in profit or loss. Digital assets characterized as intangible assets (non-current assets): Digital assets not characterized as inventory are classified as indefinite life intangible assets and are tested for impairment annually or whenever there is an indication that the intangible asset may be impaired. An impairment loss is recognized if the carrying amount exceeds its fair value less cost of sale. The Company recorded impairment of digital assets in the amount of $72 and $80, for the year ended December 31, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the Company did not hold any digital assets characterized as intangible assets. The fair value of digital assets is based on quoted prices in the principal market as of 12:00 AM UTC. |
Customer funds and funds due to customers | i. Customer funds and funds due to customers: Customer funds represent cash and digital assets that are held for the exclusive benefit of customers. The Company safeguards these assets on behalf of its customers and is subject to security risks for loss, theft or misuse. The Company restricts the use of the assets underlying the customer funds to meet regulatory requirements and classifies them as current based on their purpose and availability to fulfill its direct obligation to customers. Due to the Company’s custodial obligation to safeguard customer assets, consistent with the SEC Staff Accounting Bulletin No. 121 guidance, the Company recognizes a liability to reflect its obligation to safeguard assets held for its customers and the corresponding customer assets, measured at the fair value |
Intangible assets | j. Intangible assets: Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Intangible assets with a finite useful life are amortized on a straight-line basis over their useful life and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at each year-end. Intangible assets with indefinite useful lives are not systematically amortized and are tested for impairment annually or whenever there is an indication that the intangible asset may be impaired. The useful life of these assets is reviewed annually to determine whether their indefinite life assessment continues to be supportable. If the events and circumstances do not continue to support the assessment, the change in the useful life assessment from indefinite to finite is accounted for prospectively as a change in the accounting estimate and on that date the asset is tested for impairment. Commencing from that date, the asset is amortized systematically over its useful life. |
Business combinations and goodwill | k. Business combinations and goodwill: Business combinations are accounted for by applying the acquisition method. The cost of the acquisition is measured at the fair value of the consideration transferred on the acquisition date with the addition of non-controlling interests in the acquiree. In each business combination, the Company chooses whether to measure the non-controlling interests in the acquiree based on their fair value on the acquisition date or at their proportionate share in the fair value of the acquiree’s net identifiable assets. Direct acquisition costs are recorded in the statement of comprehensive income as incurred. Contingent consideration is recognized at fair value on the acquisition date and classified as a financial asset or liability in accordance with IAS 39. Subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. Goodwill is initially measured at cost which represents the excess of the acquisition consideration and the amount of non-controlling interests over the net identifiable assets acquired and liabilities assumed. If the resulting amount is negative, the acquirer recognizes the resulting gain on the acquisition date. |
Impairment of non-financial assets | l. Impairment of non-financial assets: The Company evaluates the need to record an impairment of non-financial assets whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If the carrying amount of non-financial assets exceeds their recoverable amount, the assets are reduced to their recoverable amount. The recoverable amount is the higher of fair value less costs of sale and value in use. In measuring value in use, the expected future cash flows are discounted using a pre-tax discount rate that reflects the risks specific to the asset. The recoverable amount of an asset that does not generate independent cash flows is allocated to the cash-generating unit to which the asset belongs. Impairment losses are recognized in profit or loss . An impairment loss of an asset, other than goodwill, is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, shall not be increased above the lower of the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and its recoverable amount. The reversal of impairment loss of an asset presented at cost is recognized in profit or loss. The following criteria are applied in assessing impairment of these specific assets: 1. Goodwill: The Company reviews goodwill for impairment once a year, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment. Goodwill is tested for impairment by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the goodwill has been allocated. An impairment loss is recognized if the recoverable amount of the cash-generating unit (or group of cash-generating units) to which goodwill has been allocated is less than the carrying amount of the cash-generating unit (or group of cash-generating units). Any impairment loss is allocated first to goodwill. Impairment losses recognized on goodwill cannot be reversed in subsequent periods. 2. Intangible assets with an indefinite useful life that have not yet been systematically amortized: The impairment test is performed annually, on December 31, or more frequently if events or changes in circumstances indicate that there is an impairment (see Note 12e). |
Leases | m. Leases: The Company accounts for a contract as a lease when the contract terms convey the right to control the use of an identified asset for a period of time in exchange for consideration. The Company as a lessee: For leases in which the Company is the lessee, the Company recognizes on the commencement date of the lease a right-of-use asset and a lease liability, excluding leases whose term is up to 12 months and leases for which the underlying asset is of low value. For these excluded leases, the Company has elected to recognize the lease payments as an expense in profit or loss on a straight-line basis over the lease term. In measuring the lease liability, the Company has elected to apply the practical expedient in the Standard and does not separate the lease components from the non-lease components (such as management and maintenance services, etc.) included in a single contract. On the commencement date, the lease liability includes all unpaid lease payments discounted at the interest rate implicit in the lease, if that rate can be readily determined, or otherwise using the Company’s incremental borrowing rate. After the commencement date, the Company measures the lease liability using the effective interest rate method. On the commencement date, the right-of-use asset is recognized in an amount equal to the lease liability plus lease payments already made on or before the commencement date and initial direct costs incurred. The right-of-use asset is measured applying the cost model and depreciated over the shorter of its useful life and the lease term. The Company tests for impairment of the right-of-use asset whenever there are indications of impairment pursuant to the provisions of IAS 36. |
Revenue recognition | n. Revenue recognition: The Company determines revenue recognition from contracts with customers through the following steps: ● Identification of the contract with the customer; ● Identification of performance obligations in the contract; ● Determination of transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of the revenue when, or as, the Company satisfies a performance obligation. In determining the amount of revenue from contracts with customers, the Company evaluates whether it is a principal or an agent in the arrangement. The Company is a principal when the Company controls the promised goods or services before transferring them to the customer. In these circumstances, the Company recognizes revenue for the gross amount of the consideration. When the Company is an agent, it recognizes revenue for the net amount of the consideration, after deducting the amount due to the principal. Transaction fees revenue includes revenue from transaction and trading fees charged to customers utilizing the Company’s trading platform and are presented on a net basis. The Company’s service is comprised of a single performance obligation to provide a matching service when customers buy, sell, or convert digital assets. The Company does not control the digital asset being provided before it is transferred to the buyer, does not have inventory risk related to the digital asset, and is not responsible for the settlement of the digital asset. The Company also does not set the price for the digital asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase digital assets from another customer. Transaction fees charged on the INX.One trading platform are recognized as revenue when the Company’s obligation is satisfied, promised services are transferred to the customer and the customer obtains control. Brokerage fees revenue is recorded according to the date the service was provided, or the operation was carried out. Relevant to brokerage and transaction fees, contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, these contracts are defined at the transaction level and do not extend beyond the service already provided. The transaction price is the amount of the consideration that is expected to be received based on the contract terms, excluding amounts collected on behalf of third parties (such as taxes). Service revenue represents fees for technology consultation and advisory, as well as listing services performed by the Company under written agreements and is recognized upon the delivery of promised goods or services to the customer and when Company’s performance obligation to the customer is satisfied. The revenue is recognized in an amount that reflects the fair value of the consideration to which the Company expects to be entitled to, upon completion of the Company’s performance obligation for those services, as stated in the contract. As of December 31, 2023, the Company received payments prior to the completion of its performance obligation under contracts with customers, which are recognized as deferred revenue. |
Share-based payment transactions | o. Share-based payment transactions: Certain of the Company’s employees and other service providers are entitled to compensation in the form of equity settled share-based payment. The cost of the transactions is measured at the fair value of the equity instruments granted at the grant date, using an appropriate valuation model, further details of which are provided in Note 19. The cost of share-based grants is recognized in profit or loss together with a corresponding increase in equity during the period during which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employee or service provider becomes entitled to the award (the “vesting period”). The cumulative expense is recognized at the end of each reporting period until the vesting period expires, reflecting the number of instruments that will ultimately vest at the end of the vesting period. Until December 31, 2021, the Company granted options exercisable into its ordinary shares. Commencing in 2022, subsequent to the completion of the Transaction (see Note 1), options are granted to the Company’s employees and other service providers by the Parent Company and are exercisable into the Common shares of the Parent Company. |
Research and development expenses | p. Research and development expenses: Research expenses are recognized in profit or loss when incurred. An intangible asset arising from a development project or from the development phase of an internal project is recognized if the Company can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company’s intention to complete the intangible asset and use or sell it; the Company’s ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the Company’s ability to measure reliably the expenditure attributable to the intangible asset during its development. Through December 31, 2023, the Company has not met all the aforementioned criteria and therefore all development costs have been recognized in profit or loss. |
Income taxes | q. Income taxes: The consolidated financial statements include estimates and assumptions for determining the future tax rates applicable to subsidiaries and identifying temporary differences that relate to each subsidiary. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities using the tax rates used enacted or substantively enacted at the reporting date. Deferred tax is provided using a liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognized for deductible temporary differences and the carryforward of any unused tax losses. Deferred tax assets are recognized to the extent it is probable that taxable profit will be available against the deductible temporary differences and that the carryforward of unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and adjusted accordingly. |
Net income (loss) per share | r. Net income (loss) per share: Basic income (loss) per share is computed by dividing the net income (loss) attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted income (loss) per share is computed by dividing the net income (loss) by the weighted average number of ordinary shares outstanding, plus the weighted average number of ordinary shares that would be issued on conversion of stock options and warrants. Potential ordinary shares are included in the computation of diluted earnings per share when their conversion decreases earnings per share from continuing operations. Potential ordinary shares that are converted during the period are included in diluted earnings per share only until the conversion date and from that date in basic earnings per share. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations (Tables) [Line Items] | |
Schedule of Liability in Contingent Consideration | 2022 2021 Balance as of January 1 $ 400 $ - Liability arising as result of business combination - 496 Payment (400 ) (400 ) Change in fair value of contingent liability recognized in profit or loss - 304 Balance as of December 31 $ - $ 400 |
ILSB [Member] | |
Business Combinations (Tables) [Line Items] | |
Schedule of Estimated Fair Value of the Identifiable Assets and Liabilities | The following are the estimated fair values of the identifiable assets and liabilities assumed of ILSB as of the date of the acquisition: June 9, Cash and cash equivalents $ 810 Accounts receivable 1,031 Property and equipment 37 Right-of-use-assets 416 Intangible assets 2,491 Total assets 4,785 Accounts payable and accrued expenses (745 ) Lease liability (501 ) Total liabilities (1,246 ) Net identifiable assets 3,539 Goodwill arising on acquisition 1,370 Total cost of acquisition $ 4,909 Cost of Acquisition: Cash paid $ 4,327 Equity contribution by shareholder 582 Total cost of acquisition $ 4,909 Cash outflow on Acquisition: Cash paid $ 4,327 Cash and cash equivalents acquired 810 Net cash outflow $ 3,517 |
OFN [Member] | |
Business Combinations (Tables) [Line Items] | |
Schedule of Estimated Fair Value of the Identifiable Assets and Liabilities | The following are the estimated fair values of the identifiable assets and liabilities of OFN assumed as of May 9, 2021, the date of the acquisition: May 9, Cash and cash equivalents $ 307 Other current assets 18 Intangible assets 1,914 Total Assets 2,239 Accounts payable (3 ) Total Liabilities (3 ) Net identifiable assets 2,236 Goodwill arising on acquisition 1,017 Total cost of acquisition $ 3,253 Cost of Acquisition: Cash paid $ 2,022 Token warrant liability 735 Contingent consideration liability 496 Total cost of acquisition $ 3,253 Cash outflow on Acquisition: Cash paid $ 2,022 Cash and cash equivalents acquired 307 Net cash outflow $ 1,715 |
Reserve Fund (Tables)
Reserve Fund (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reserve Fund [Abstract] | |
Schedule of Reserve Fund is Comprised of Cash and Cash Equivalents | The Reserve Fund is comprised of cash and cash equivalents, U.S. Treasury securities and corporate bonds held at banks and brokerage firms as follows: December 31, December 31, a. Cash and cash equivalents $ 16,522 $ 5,824 b. Financial assets at fair value through other comprehensive income: Short-term investments (*) U.S. Treasury securities 986 6,141 Corporate bonds – marketable investments 15,996 12,332 Total short-term investments 16,982 18,473 Long-term investments (*) U.S. Treasury securities 901 474 Corporate bonds and loans (principally) – marketable investments - 11,252 Total long-term investments 901 11,726 Total Reserve Fund $ 34,405 $ 36,023 (*) Classified as Level 1 inputs in the fair value hierarchy. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstarct] | |
Schedule of Investments | On December 31, 2023 and 2022, the Company held the following investments: December 31, December 31, Financial assets at fair value through other comprehensive income: Short-term investments (*) U.S. Treasury securities $ 4,604 $ 3,444 Corporate bonds – marketable investments 5,889 1,589 Total short-term investments $ 10,493 $ 5,033 Long-term investments Corporate bonds – marketable investments (*) 403 4,254 Investments in private equity (**) 490 400 Total long-term investments $ 893 $ 4,654 Total investments $ 11,386 $ 9,687 (*) Classified as level 1 inputs in the fair value hierarchy. (**) Classified as level 3 inputs in the fair value hierarchy. |
Digital Assets (Tables)
Digital Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Digital Assets [Abstract] | |
Schedule of Digital Asset | The Company held the following digital assets as of December 31, 2023 and 2022: Coin Symbol December 31, December 31, USDC $ 453 $ 463 BTC 354 546 ETH 86 503 USDT 23 684 LTC 15 109 ZEC 3 51 UNI - 44 AAVE - 31 COMP - 31 CRV - 29 MATIC - 28 Other 15 78 $ 949 $ 2,597 |
Prepaid Expenses and Other Re_2
Prepaid Expenses and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expenses and Other Receivables [Abstract] | |
Schedule of Prepaid Expenses and Other Receivables | As of December 31, 2023 and 2022, prepaid expenses and other receivables include the following: December 31 2023 2022 Receivable from related parties (see Note 16) $ 1,213 $ 1,254 Prepaid expenses and advances to service providers 668 1,015 Receivable from government agencies 390 219 Office space sublease receivable 90 - Other receivables 265 120 $ 2,626 $ 2,608 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property and Equipment | The following table presents activity of the Company’s property and equipment during the years ended December 31, 2023 and 2022: Computers Office Leasehold Communication Total Property and equipment, at cost: Balance at January 1, 2022 $ 125 $ 59 $ 6 $ 14 $ 204 Additions 42 41 99 153 335 Adjustments arising from translating financial statements from functional currency to presentation currency - - - (14 ) (14 ) Balance at December 31, 2022 167 100 105 153 525 Additions 41 5 - 2 48 Adjustments arising from translating financial statements from functional currency to presentation currency - - - (1 ) (1 ) Balance at December 31, 2023 $ 208 $ 105 $ 105 $ 154 $ 572 Accumulated depreciation: Balance at January 1, 202 2 33 10 1 - 44 Depreciation expense 51 9 9 19 88 Adjustments arising from translating financial statements from functional currency to presentation currency - - - (2 ) (2 ) Balance at December 31, 2022 84 19 10 17 130 Depreciation expense 60 7 11 23 101 Balance at December 31, 2023 144 26 21 40 231 Net assets at December 31, 2023 $ 64 $ 79 $ 84 $ 114 $ 341 Net assets at December 31, 2022 $ 83 $ 81 $ 95 $ 136 $ 395 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of Net Carrying Amounts of Goodwill, Licenses, Trade Name and Customer Relationships | The following table presents activity in goodwill and intangible assets during the years ended December 31, 2023 and 2022. Trade Name Customer Licenses Technology Goodwill Total Intangible assets, at cost: Balance as of January 1, 2022 $ 467 $ 1,905 $ 1,722 $ 430 $ 2,455 $ 6,979 Adjustments arising from translating financial statements from functional currency to presentation currency (51 ) (173 ) (61 ) - (165 ) (450 ) Balance as of December 31, 2022 416 1,732 1,661 430 2,290 6,529 Adjustments arising from translating financial statements from functional currency to presentation currency (11 ) (39 ) (13 ) - (37 ) (100 ) Balance as of December 31, 2023 $ 405 $ 1,693 $ 1,648 $ 430 $ 2,253 $ 6,429 Accumulated amortization and impairment: Balance as of January 1, 2022 $ 23 $ 75 $ - $ 32 $ - $ 130 Impairment of technology - - - 361 - 361 Amortization expense 41 142 - 37 - 220 Balance as of December 31, 2022 64 217 - 430 - 711 Amortization expense 37 131 - - - 168 Balance as of December 31, 2023 $ 101 $ 348 $ - $ 430 - $ 879 Net intangible assets at cost, at December 31, 2022 352 1,515 1,661 - 2,290 5,818 Net intangible assets at cost, at December 31, 2023 $ 304 $ 1,345 $ 1,648 $ - $ 2,253 $ 5,550 |
Schedule of Useful Life of Intangible Assets | The useful life of intangible assets is as follows: Licenses Customer Trade name Useful life Indefinite Definite 10.58 years Definite 10.58 years Amortization method Not amortized Straight-line Straight-line |
Schedule of Net Carrying Amounts of Goodwill, Licenses, Trade Name and Customer Relationships | As of December 31, 2023, the net carrying amounts of goodwill, licenses, trade name and customer relationships were allocated as follows (each representing a cash-generating unit): ILSB INXS Total Goodwill $ 1,236 $ 1,017 $ 2,253 Licenses 448 1,200 1,648 Trade Name 304 - 304 Customer Relationships 1,062 283 1,345 Total Intangible Assets $ 1,814 $ 1,483 $ 3,297 |
Right-Of-Use Assets and Lease_2
Right-Of-Use Assets and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Right-Of-Use Assets and Lease Liabilities [Abstract] | |
Schedule of Right-of-Use Assets | Land and Right-of-use-assets, at cost: Balance as of January 1, 2022 $ 1,083 Additions during the year: New leases 827 Adjustments arising from translating financial statements from functional currency to presentation currency (46 ) CPI and revaluation differences 63 Balance as of December 31, 2022 $ 1,927 Accumulated depreciation: Balance as of January 1, 2022 $ 96 Depreciation and amortization 522 Balance as of December 31, 2022 $ 618 Right-of-use assets as of December 31, 2022, net $ 1,309 Right-of-use-assets, at cost: Balance as of January 1, 2023 $ 1,927 Additions during the year: Disposal (656 ) Lease modification (18 ) Adjustments arising from translating financial statements from functional currency to presentation currency 55 CPI and revaluation differences 30 Balance as of December 31, 2023 $ 1,338 Accumulated depreciation: Balance as of January 1, 2023 $ 618 Depreciation and amortization 411 Disposal (430 ) Balance as of December 31, 2023 $ 599 Right-of-use assets as of December 31, 2023, net $ 739 |
Schedule of Maturity Analysis of Undiscounted Lease Payments | Maturity of undiscounted lease payments receivable for operating leases: December 31, 2023 2024 $ 438 2025 318 2026 80 2027 80 2028 13 $ 929 |
Lease liability [Member] | |
Right-Of-Use Assets and Lease Liabilities [Abstract] | |
Schedule of Respect of Lease Liability | Activity with respect to the lease liability: Land and Lease liability, January 1, 2022 $ 1,140 Changes during the year: New leases 827 Lease payments (578 ) Interest expense 83 CPI and revaluation differences (85 ) Lease liability, December 31, 2022 $ 1,387 Current lease liability, December 31, 2022 $ 519 Non-current lease liability, December 31, 2022 $ 868 Lease liability, January 1, 2023 $ 1,387 Changes during the year: Lease payments (564 ) Interest expense 60 Lease modification (18 ) CPI and revaluation differences 4 Lease liability, December 31, 2023 $ 869 Current lease liability, December 31, 2023 $ 390 Non-current lease liability, December 31, 2023 $ 479 |
Inx Token Liability (Tables)
Inx Token Liability (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inx Token Liability [Abstract] | |
Schedule of the Number of Inx Tokens that the Company has Distributed | The number of INX Tokens that the Company has issued as of December 31, 2023 and 2022, or has an obligation to issue is as follows: December 31, December 31, Total number of INX Tokens 135,570,986 133,410,776 INX Token liability $ 54,120 $ 56,847 |
Schedule of Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates | The fair value of INX Tokens free of, or subject to lock-up agreements and the discount rates applied as of December 31, 2023, are as follows: Discount rate Number of INX Total fair Not subject to lock-up 0% 133,293,902 $ 53,317 Subject to lock-up through January 2024 4.05% 150,000 58 Subject to lock-up through February 2024 7.22-7.89% 600,000 222 Subject to lock-up through July 2024 14.35% 1,527,084 523 Total 135,570,986 $ 54,120 Discount rate Number of INX Total fair Not subject to lock-up 0% 122,716,614 $ 52,768 Subject to lock-up through February-April 2023 6%-9.3% 9,082,078 3,554 Subject to lock-up through May 2023 10.05-10.22% 82,000 31 Subject to lock-up through June 2023 10.52% 3,000 1 Subject to lock-up through July 2024 24.99% 1,527,084 493 Total 133,410,776 $ 56,847 |
Schedule of Inputs and Assumptions are Volatility and the Period under the Lock Up | For INX Tokens which are subject to lock-up agreement, the Company used the Finnerty model to determine the discount rates applying for such INX Tokens during their lock-up agreements. Significant inputs and assumptions are volatility and the period under the lock up, as follows: December 31, December 31, Expected term (years) 0.04-0.53 0.13-1.53 Expected volatility 89.05%-90.16% 71.56%-103.37% |
Inx Token Warrant Liability (Ta
Inx Token Warrant Liability (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inx Token Warrant Liability [Abstract] | |
Schedule of Warrant Liability Composition | As of December 31, 2023 and 2022, directors, advisors, employees and service providers held 5,574,292 and 6,972,192 restricted INX Tokens or INX Token warrants, respectively. The warrant grantees have a right to purchase INX Tokens upon the completion of the term set forth in each warrant agreement. December 31, 2023 2022 INX Token warrant liability: Warrants granted to employees, advisors and service providers $ 1,240 $ 1,580 |
Schedule of Black-Scholes Pricing Model used for Fair Value Measurement of INX Tokens Warrants | The following table lists the inputs to the Black-Scholes pricing model used for the fair value measurement of INX Token warrants: December 31, December 31, Expected volatility of the token prices (%) 89.05% – 108.38% 67.51% – 86.39% Risk-free interest rate (%) 3.88% – 5.40% 3.88% – 4.69% Expected life of warrant (years) 0.52 – 10.00 0.08 – 10.00 Exercise price $0.01 – $2.81 $0.01 – $2.86 |
Schedule of Changes in Number of INX Token Warrants | The following table presents changes in the number of INX Token warrants and restricted INX Token awards during the years ended December 31, 2023, and 2022: 2023 2022 Number of Weighted Number of Weighted INX Token warrants outstanding at beginning of year (*) 6,972,192 $ 0.46 5,660,861 $ 0.52 INX Token warrants granted during the year 1,265,000 0.16 4,388,043 0.25 INX Token warrants forfeited during the year (187,000 ) 0.35 (491,833 ) 1.40 INX Token warrants expired during the year (326,690 ) 0.32 (50,261 ) 0.03 INX Token warrants exercised (INX Token issued) and INX Tokens vested during the year (2,149,210 ) 0.01 (2,534,618 ) 0.06 INX Token warrants outstanding at the end of year 5,574,292 $ 0.33 6,972,192 $ 0.46 INX Token warrants exercisable at the end of year 2,606,000 $ 0.24 3,718,955 $ 0.16 (*) During the year ended December 31, 2022, the Company offered to employees an option to modify certain token warrants originally issued in 2021 and 2022. As result, during 2022, terms for 1,801,500 INX token warrants were modified to include a new exercise price and a new vesting schedule, which resulted in the increase in the fair value of the INX Token warrants of $8. |
Schedule of Token-Based Compensation | Token-based compensation for years ended December 31, 2023, 2022 and 2021 is included within the following expenses: Year ended December 31 2023 2022 2021 Operating expenses (income): Research and development $ 166 $ 135 $ 262 Sales and marketing 268 437 177 General and administrative 464 820 6,736 Change in fair value of INX Token warrant liability (204 ) (8,294 ) 12,626 Total token-based compensation expense (income) $ 694 $ (6,902 ) $ 19,801 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Parties [Abstract] | |
Schedule of Balances are Held with or by Related Parties | The following balances are held with or by related parties as of December 31, 2023 and 2022: December 31 2023 2022 Assets: Prepaid expenses and other receivables Receivable from Parent Company $ 216 $ 1,205 Receivable from Nabatech 976 - Prepaid expenses 21 49 Total $ 1,213 $ 1,254 Liabilities: Accounts payable and accrued expenses $ 240 $ 308 INX Token liability 4,485 5,531 INX Token warrant liability 671 1,140 Total $ 5,396 $ 6,979 |
Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties | Revenue and expense items recognized in transactions with related parties during the years ended December 31, 2023, 2022 and 2021 include service revenue earned from Nabatech and compensation provided to key management personnel and directors, as follows: Year ended December 31 2023 2022 2021 Service revenue $ 976 $ - $ - $ 976 $ - $ - Cost of service: Compensation and benefits 226 - - $ 226 $ - $ - Research and Development: Compensation and benefits $ 234 $ 465 $ 598 Share-based compensation (*) 190 70 391 INX Token-based compensation 41 6 448 $ 465 $ 541 $ 1,437 Sales and marketing: Compensation and benefits - 369 4,406 Share-based compensation (*) - 176 2,783 INX Token-based compensation - 298 3,878 $ - $ 843 $ 11,067 General and administrative: Compensation and benefits 2,934 2,204 1,577 Share-based compensation (*) 1,702 543 6,883 INX Token-based compensation 396 278 2,249 $ 5,032 $ 3,025 $ 10,709 Total compensation and benefits $ 5,723 $ 4,409 $ 23,213 Change in fair value of INX Token and warrant liabilities $ (830 ) $ (20,133 ) $ 24,673 (*) See Note 19 for description of options granted by the Parent Company to employees of the Company that are exercisable into Common shares of the Parent Company. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Composition of Share Capital | Composition of share capital: December 31 2023 2022 Number of shares Authorized Issued and Authorized Issued and Ordinary shares with 0.01 GBP par value per share 100,000,000 47,635,875 100,000,000 47,635,875 |
Schedule of Other Comprehensive Income (Loss) | Composition of other comprehensive income (loss) (OCI): Reserve from Gain (loss) Total Balance as of December 31, 2020 $ - $ - $ - Realized loss on available-for sale securities reclassification adjustment into net income (loss) - - - Unrealized gain on available-for-sale securities - - - Foreign currency translation - 188 188 Balance as of December 31, 2021 $ - $ 188 $ 188 Realized loss on available-for sale securities reclassification adjustment into net income (loss) 424 - 424 Unrealized gain on available-for-sale securities (1,353 ) - (1,353 ) Foreign currency translation - (513 ) (513 ) Balance as of December 31, 2022 $ (929 ) $ (325 ) $ (1,254 ) Realized loss on available-for sale securities reclassification adjustment into net income (loss) 77 - 77 Unrealized gain on available-for-sale securities 1,086 - 1,086 Foreign currency translation - (53 ) (53 ) Balance as of December 31, 2023 $ 234 $ (378 ) $ (144 ) |
Share-Based Payment (Tables)
Share-Based Payment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment [Abstract] | |
Schedule of Fair Value of the Options Granted Under the Plan Using the Black- Scholes Option Pricing Model | The table below summarizes the assumptions that were used to estimate the fair value of the options granted under the Plan using the Black- Scholes option pricing model: December 31, December 31, Expected term (years) 10 10 Expected volatility 87.05% -86.22% 89.78% -94.32% Exercise price $0.13-0.14 $0.17-0.55 Risk-free interest rate 2.886% -3.684% 1.37% -3.356% Dividend yield - - |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income (Loss) Per Share [Abstract] | |
Schedule of Income (Loss) Per Share | The table below presents basic and diluted net income (loss) per Ordinary Share for the years ended December 31, 2023, 2022 and 2021, respectively: December 31, December 31, December 31, Earnings (loss) per share, basic and diluted $ (0.25 ) $ 4.52 $ (14.30 ) |
Schedule of Income (Loss) Per Share | The net income (loss) and weighted average number of ordinary shares used in the calculation of basic income (loss) per share are as follows: Year ended December 31 2023 2022 2021 Net income (loss) used in the calculation of earnings (loss) per share, basic and diluted $ (12,055 ) $ 211,334 $ (215,235 ) Weighted average number of Ordinary Shares for the purposes of earnings (loss) per share, basic and diluted 47,635,875 46,767,930 15,048,576 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
Schedule of Revenue and Net Income (Loss) by the Reporting Operating Segment | Revenue and net income (loss) by the reporting operating segment: Brokerage Segment Digital Asset Segment Total Year ended December 31, 2023: Revenue $ 4,913 $ 12,788 $ 17,701 Total income $ 4,913 $ 667 $ 5,580 Segment net income (loss) 65 (15,690 ) (15,625 ) Unallocated corporate expenses: Other income, net 3,775 Net loss before taxes $ (11,850 ) Year ended December 31, 2022: Revenue $ 3,621 $ 9,598 $ 13,219 Total income $ 3,621 $ 652 $ 4,273 Segment net loss (157 ) (14,434 ) (14,591 ) Unallocated corporate expenses: Other income, net 226,044 Net income before taxes $ 211,453 Brokerage Segment Digital Asset Segment Total Year ended December 31, 2021: Revenue $ 2,278 $ 266 $ 2,544 Total income $ 2,278 $ 266 $ 2,544 Segment net income (loss) 383 (54,288 ) (53,905 ) Unallocated corporate expenses: Other expense, net (161,173 ) Net loss before taxes $ (215,078 ) |
Schedule of Revenue Reported in Financial Statements are Attributed to Countries Based on Location of Customer | Select information by reporting operating segment: Brokerage Segment Digital Asset Segment Total As of December 31, 2023: Segment assets $ 5,652 $ 66,864 $ 72,516 Segment liabilities $ 1,280 $ 61,773 $ 63,053 As of December 31, 2022: Segment assets $ 2,351 $ 80,054 $ 82,405 Segment liabilities $ 1,077 $ 63,644 $ 64,721 |
Schedule of Non-Current Assets, Other Than Financial Assets | Non-current assets, other than financial assets, located in the country of domicile and in foreign countries: Non-current assets December 31, 2023 December 31, 2022 United States $ 2,500 $ 2,848 State of Israel $ 4,130 $ 4,663 Gibraltar $ - $ 11 |
Schedule of Revenue Reported in Financial Statements are Attributed to Countries Based on Location of Customer | Revenue reported in the financial statements are attributed to countries based on the location of customers, as follows: Year ended December 31 2023 2022 2021 Brokerage Segment: United Kingdom $ 2,653 $ 1,083 $ 911 State of Israel $ 1,984 $ 1,562 $ 911 United States $ 16 $ 652 $ 248 Gibraltar $ - $ - $ - Other $ 260 $ 324 $ 208 Digital Asset Segment: Gibraltar $ 11,380 $ 8,946 $ - Switzerland $ 976 $ - $ - United States $ 149 $ 170 $ 25 Japan $ 107 $ 162 $ 97 State of Israel $ 21 $ 90 $ 90 United Kingdom $ 4 $ 123 $ 6 Other $ 151 $ 107 $ 48 |
Schedule of Revenue From Major Customers | Revenue from major customers: Year ended December 31 2023 2022 2021 Brokerage Segment: Customer A $ 592 $ 452 $ 265 Customer B $ 533 $ - $ - |
Employee Benefits Expense (Tabl
Employee Benefits Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefits Expense [Abstract] | |
Schedule of Consolidated Statements of Comprehensive Loss | Share-based and token-based compensation, and short-term employee benefits included in consolidated statements of comprehensive income (loss) are as follows: Year ended December 31 2023 2022 2021 Cost of service Compensation and benefits $ 505 $ - $ - Share-based compensation - - - Token-based compensation - - - $ 505 $ - $ - Research and development Compensation and benefits $ 2,053 $ 2,159 1,286 Share-based compensation 400 2 1,105 Token-based compensation 166 125 262 $ 2,619 $ 2,286 $ 2,653 Sales and marketing Compensation and benefits 1,735 1,160 677 Share-based compensation 443 1,022 2,809 Token-based compensation 268 435 177 $ 2,446 $ 2,617 $ 3,663 General and administrative Compensation and benefits 5,669 6,493 5,072 Share-based compensation 1,882 111 6,985 Token-based compensation 464 817 6,175 $ 8,015 $ 7,421 $ 18,232 |
Nature of Operations (Details)
Nature of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | |
May 17, 2019 | Dec. 31, 2023 | |
Nature of Operations (Details) [Line Items] | ||
Issuance of tokens has not allocated | $ 35,000 | |
Issuance of tokens does not intend | 200,000 | |
Company held tokens | $ 64,400 | |
Percentage of discount payment on transaction fees | 10% | |
Accumulated deficit | $ 48,623 | |
Company incurred an operating loss | 16,475 | |
Negative cash flow from operating activities | 7,781 | |
Working capital | $ 22,731 | |
INX Token [Member] | ||
Nature of Operations (Details) [Line Items] | ||
Number of tokens (in Shares) | 130 | |
Price per token (in Dollars per share) | $ 0.9 | |
Company held tokens | $ 29,400 | |
Receive pro rata distribution | 40% |
Material Accounting Policies (D
Material Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Material Accounting Policies [Abstract] | ||
Impairment of digital assets | $ 72 | $ 80 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2021 | Jun. 30, 2023 | |
Business Combinations [Line Items] | |||
Due from affiliates | $ 400 | $ 400 | $ 400 |
Exercisable price (in Dollars per share) | $ 0.07 | ||
Fair value of warrants | $ 735 | ||
Mr. Datika [Member] | |||
Business Combinations [Line Items] | |||
Partial consideration | 582 | ||
OFN [Member] | |||
Business Combinations [Line Items] | |||
Consolidated revenue | 193 | ||
Contributed a net loss | 133 | ||
I.L.S Brokers Ltd. [Member] | |||
Business Combinations [Line Items] | |||
Acquisition to shareholders | $ 4,327 | ||
Outstanding share capital percentage | 20% | ||
Net income | 254 | ||
Consolidated revenue | 2,278 | ||
I.L.S Brokers Ltd. [Member] | Maximum [Member] | |||
Business Combinations [Line Items] | |||
Acquisition reduced | $ 4,909 | ||
I.L.S Brokers Ltd. [Member] | Minimum [Member] | |||
Business Combinations [Line Items] | |||
Acquisition reduced | 4,327 | ||
Open finance Holdings, Inc. [Member] | |||
Business Combinations [Line Items] | |||
Acquisition to shareholders | $ 3,253 | ||
Business combination | |||
Business Combinations [Line Items] | |||
Consolidated revenue | $ 4,164 | ||
INX Token warrants [Member] | |||
Business Combinations [Line Items] | |||
Warrants (in Shares) | 885,000 |
Business Combinations (Detail_2
Business Combinations (Details) - Schedule of Estimated Fair Value of the Identifiable Assets and Liabilities - Business Combinations [Member] $ in Thousands | Jun. 09, 2021 USD ($) |
Schedule of Estimated Fair Value of the Identifiable Assets and Liabilities [Line Items] | |
Cash and cash equivalents | $ 810 |
Accounts receivable | 1,031 |
Property and equipment | 37 |
Right-of-use-assets | 416 |
Intangible assets | 2,491 |
Total assets | 4,785 |
Accounts payable and accrued expenses | (745) |
Lease liability | (501) |
Total liabilities | (1,246) |
Net identifiable assets | 3,539 |
Goodwill arising on acquisition | 1,370 |
Total cost of acquisition | 4,909 |
Cash paid | 4,327 |
Cash and cash equivalents acquired | 810 |
Net cash outflow | 3,517 |
Equity contribution by shareholder | $ 582 |
Business Combinations (Detail_3
Business Combinations (Details) - Schedule of Estimated Fair Value of the Identifiable Assets and Liabilities - Business Combinations [Member] $ in Thousands | May 09, 2021 USD ($) |
Schedule of Estimated Fair Value of the Identifiable Assets and liabilities [Line Items] | |
Cash and cash equivalents | $ 307 |
Other current assets | 18 |
Intangible assets | 1,914 |
Total Assets | 2,239 |
Accounts payable | (3) |
Total Liabilities | (3) |
Net identifiable assets | 2,236 |
Goodwill arising on acquisition | 1,017 |
Total cost of acquisition | 3,253 |
Cost of Acquisition: | |
Cash paid | 2,022 |
Cash and cash equivalents acquired | 307 |
Net cash outflow | 1,715 |
Token warrant liability | 735 |
Contingent consideration liability | $ 496 |
Business Combinations (Detail_4
Business Combinations (Details) - Schedule of Liability in Contingent Consideration - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Liability in Contingent Consideration [Abstract] | ||
Balance as of January 1 | $ 400 | |
Liability arising as result of business combination | 496 | |
Payment | (400) | (400) |
Change in fair value of contingent liability recognized in profit or loss | 304 | |
Balance as of December 31 | $ 400 |
Reserve Fund (Details)
Reserve Fund (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reserve Fund [Abstract] | |||
Gross proceeds percentage | 75% | ||
Initial public offering in excess | $ 25,000 | ||
Reserve fund | $ 36,023 | ||
Other expense | 1,618 | ||
Balance of reserve fund | $ 34,405 | ||
Investment policy of reserve funds, description | the INX’s Board of Directors approved the Investment Policy of the Reserve Fund. Per the approved Policy, as amended on August 11, 2022, the Reserve Fund, post the amendment, shall be invested as follows: minimum 15% in cash and bank deposits, up to 70% in U.S Treasury securities, up to 20% shall be invested in exchange traded funds and up to 50% in corporate bonds and other instruments with the lowest investment grade rating of BBB. |
Reserve Fund (Details) - Schedu
Reserve Fund (Details) - Schedule of Reserve Fund is Comprised of Cash and Cash Equivalents - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Reserve Fund (Details) - Schedule of Reserve Fund is Comprised of Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 16,522 | $ 5,824 | |
Short-term investments (*) | |||
Total long-term investments | [1] | 901 | 11,726 |
Total short-term investments | [1] | 16,982 | 18,473 |
Total Reserve Fund | 34,405 | 36,023 | |
Short-term investments [Member] | |||
Short-term investments (*) | |||
U.S. Treasury securities | [1] | 986 | 6,141 |
Corporate bonds – marketable investments | [1] | 15,996 | 12,332 |
Long-term investments [Member] | |||
Short-term investments (*) | |||
U.S. Treasury securities | [1] | 901 | 474 |
Corporate bonds and loans (principally) – marketable investments | [1] | $ 11,252 | |
[1]Classified as level 1 inputs in the fair value hierarchy. |
Investments (Details)
Investments (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 £ / shares | Dec. 31, 2022 £ / shares shares | Sep. 09, 2021 USD ($) | Mar. 20, 2021 USD ($) $ / shares shares | Feb. 25, 2021 shares | Nov. 27, 2017 shares | |
Investments (Details) [Line Items] | |||||||
Initial capitalization investment | $ 90 | $ 250 | $ 150 | ||||
Ordinary shares (in Shares) | shares | 47,635,875 | 47,635,875 | 956,333 | 10,029,193 | |||
Price per share (in Dollars per share) | £ / shares | £ 0.001 | £ 0.001 | |||||
Purchase warrant | $ 300 | ||||||
Percentage of issued and outstanding | 33% | ||||||
Investment loss | $ 591 | ||||||
Foreign currency translation | $ 38 | ||||||
United Kingdom [Member] | |||||||
Investments (Details) [Line Items] | |||||||
Ordinary shares (in Shares) | shares | 95,411 | ||||||
Price per share (in Dollars per share) | $ / shares | $ 0.01 | $ 1.57 | |||||
Investment in Associate [Member] | |||||||
Investments (Details) [Line Items] | |||||||
Initial capitalization investment | $ 32 | ||||||
Foreign currency translation | $ 597 |
Investments (Details) - Schedul
Investments (Details) - Schedule of Investments - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Short-term investments (*) | |||
Short-term investments | [1] | $ 10,493 | $ 5,033 |
Long-term investments | |||
Long-term investments | 893 | 4,654 | |
Total investments | 11,386 | 9,687 | |
U.S. Treasury securitie [Member] | |||
Short-term investments (*) | |||
Short-term investments | [1] | 4,604 | 3,444 |
Corporate bonds – marketable investments [Member] | |||
Short-term investments (*) | |||
Short-term investments | [1] | 5,889 | 1,589 |
Long-term investments | |||
Long-term investments | [1] | 403 | 4,254 |
Investments in private equity [Member] | |||
Long-term investments | |||
Long-term investments | [2] | $ 490 | $ 400 |
[1]Classified as level 1 inputs in the fair value hierarchy.[2]Classified as level 3 inputs in the fair value hierarchy. |
Digital Assets (Details) - Sche
Digital Assets (Details) - Schedule of Digital Asset - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | $ 949 | $ 2,597 |
USDC [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 453 | 463 |
BTC [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 354 | 546 |
ETH [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 86 | 503 |
USDT [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 23 | 684 |
LTC [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 15 | 109 |
ZEC [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 3 | 51 |
UNI [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 44 | |
AAVE [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 31 | |
COMP [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 31 | |
CRV [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 29 | |
MATIC [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | 28 | |
Other [Member] | ||
Digital Assets (Details) - Schedule of Digital Asset [Line Items] | ||
Total digital asset | $ 15 | $ 78 |
Derivative Assets (Details)
Derivative Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Assets [Abstract] | ||
Collateral amount of open digital assets | $ 905 | |
Fair value | $ 1,072 | |
Loss on derivative | $ 1,618 | |
Net loss | $ 253 |
Customer Funds (Details)
Customer Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Customer Funds [Abstract] | ||
Cash balance | $ 360 | $ 448 |
Digital asset balance | $ 2,882 | $ 2,161 |
Prepaid Expenses and Other Re_3
Prepaid Expenses and Other Receivables (Details) - Schedule of Prepaid Expenses and Other Receivables - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Receivables [Abstract] | ||
Receivable from related parties (see Note 16) | $ 1,213 | $ 1,254 |
Prepaid expenses and advances to service providers | 668 | 1,015 |
Receivable from government agencies | 390 | 219 |
Office space sublease receivable | 90 | |
Other receivables | 265 | 120 |
Total | $ 2,626 | $ 2,608 |
Property and Equipment (Details
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Cost Beginning | $ 525 | $ 204 |
Additions | 48 | 335 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (1) | (14) |
Property and equipment, Cost Ending | 572 | 525 |
Property and equipment, Accumulated depreciation, Beginning | 130 | 44 |
Depreciation expense | 101 | 88 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (2) | |
Property and equipment, Accumulated depreciation, Ending | 231 | 130 |
Net assets | 341 | 395 |
Computer software [member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Cost Beginning | 167 | 125 |
Additions | 41 | 42 |
Adjustments arising from translating financial statements from functional currency to presentation currency | ||
Property and equipment, Cost Ending | 208 | 167 |
Property and equipment, Accumulated depreciation, Beginning | 84 | 33 |
Depreciation expense | 60 | 51 |
Adjustments arising from translating financial statements from functional currency to presentation currency | ||
Property and equipment, Accumulated depreciation, Ending | 144 | 84 |
Net assets | 64 | 83 |
Office equipment [member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Cost Beginning | 100 | 59 |
Additions | 5 | 41 |
Adjustments arising from translating financial statements from functional currency to presentation currency | ||
Property and equipment, Cost Ending | 105 | 100 |
Property and equipment, Accumulated depreciation, Beginning | 19 | 10 |
Depreciation expense | 7 | 9 |
Adjustments arising from translating financial statements from functional currency to presentation currency | ||
Property and equipment, Accumulated depreciation, Ending | 26 | 19 |
Net assets | 79 | 81 |
Leasehold improvements [member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Cost Beginning | 105 | 6 |
Additions | 99 | |
Adjustments arising from translating financial statements from functional currency to presentation currency | ||
Property and equipment, Cost Ending | 105 | 105 |
Property and equipment, Accumulated depreciation, Beginning | 10 | 1 |
Depreciation expense | 11 | 9 |
Adjustments arising from translating financial statements from functional currency to presentation currency | ||
Property and equipment, Accumulated depreciation, Ending | 21 | 10 |
Net assets | 84 | 95 |
Communication & equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property and equipment, Cost Beginning | 153 | 14 |
Additions | 2 | 153 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (1) | (14) |
Property and equipment, Cost Ending | 154 | 153 |
Property and equipment, Accumulated depreciation, Beginning | 17 | |
Depreciation expense | 23 | 19 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (2) | |
Property and equipment, Accumulated depreciation, Ending | 40 | 17 |
Net assets | $ 114 | $ 136 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Other Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 168 | $ 220 | $ 130 |
Impairment loss | $ 0 | $ 0 | |
Amortized period | 5 years | ||
Fixed growth rate | 5% | ||
Pre-tax discount rate of the cash flows | 24.30% | ||
Cash-generating units [member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Amortized period | 5 years | ||
Software [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Impairment loss | $ 361 | ||
ILSB [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Amortized period | 5 years | ||
OFN [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Fixed growth rate | 2% | ||
INXS [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Amortized period | 5 years | ||
Fixed growth rate | 3% | ||
Pre-tax discount rate of the cash flows | 29.80% |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details) - Schedule of Goodwill and Intangibles Assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Trade name [Member] | ||
Schedule of Goodwill and Intangibles Assets [Line Items] | ||
Balance beginning of intabgible assets at cost | $ 416 | $ 467 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (11) | (51) |
Balance ending of intabgible assets at cost | 405 | 416 |
Accumulated amortization and impairment: | ||
Balance beginning of accumulated amortization and impairment | 64 | 23 |
Impairment of technology | ||
Amortization expense | 37 | 41 |
Balance ending of accumulated amortization and impairment | 101 | 64 |
Net intangible assets at cost | 304 | 352 |
Customers relationships [Member] | ||
Schedule of Goodwill and Intangibles Assets [Line Items] | ||
Balance beginning of intabgible assets at cost | 1,732 | 1,905 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (39) | (173) |
Balance ending of intabgible assets at cost | 1,693 | 1,732 |
Accumulated amortization and impairment: | ||
Balance beginning of accumulated amortization and impairment | 217 | 75 |
Impairment of technology | ||
Amortization expense | 131 | 142 |
Balance ending of accumulated amortization and impairment | 348 | 217 |
Net intangible assets at cost | 1,345 | 1,515 |
Licenses [Member] | ||
Schedule of Goodwill and Intangibles Assets [Line Items] | ||
Balance beginning of intabgible assets at cost | 1,661 | 1,722 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (13) | (61) |
Balance ending of intabgible assets at cost | 1,648 | 1,661 |
Accumulated amortization and impairment: | ||
Balance beginning of accumulated amortization and impairment | ||
Impairment of technology | ||
Amortization expense | ||
Balance ending of accumulated amortization and impairment | ||
Net intangible assets at cost | 1,648 | 1,661 |
Technology [Member] | ||
Schedule of Goodwill and Intangibles Assets [Line Items] | ||
Balance beginning of intabgible assets at cost | 430 | 430 |
Adjustments arising from translating financial statements from functional currency to presentation currency | ||
Balance ending of intabgible assets at cost | 430 | 430 |
Accumulated amortization and impairment: | ||
Balance beginning of accumulated amortization and impairment | 430 | 32 |
Impairment of technology | 361 | |
Amortization expense | 37 | |
Balance ending of accumulated amortization and impairment | 430 | 430 |
Net intangible assets at cost | ||
Goodwill [Member] | ||
Schedule of Goodwill and Intangibles Assets [Line Items] | ||
Balance beginning of intabgible assets at cost | 2,290 | 2,455 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (37) | (165) |
Balance ending of intabgible assets at cost | 2,253 | 2,290 |
Accumulated amortization and impairment: | ||
Balance beginning of accumulated amortization and impairment | ||
Impairment of technology | ||
Amortization expense | ||
Balance ending of accumulated amortization and impairment | ||
Net intangible assets at cost | 2,253 | 2,290 |
At cost [Member] | ||
Schedule of Goodwill and Intangibles Assets [Line Items] | ||
Balance beginning of intabgible assets at cost | 6,529 | 6,979 |
Adjustments arising from translating financial statements from functional currency to presentation currency | (100) | (450) |
Balance ending of intabgible assets at cost | 6,429 | 6,529 |
Accumulated amortization and impairment [Member] | ||
Accumulated amortization and impairment: | ||
Balance beginning of accumulated amortization and impairment | 130 | |
Impairment of technology | 361 | |
Amortization expense | 168 | 220 |
Balance ending of accumulated amortization and impairment | 879 | |
Net intangible assets at cost | 5,550 | 5,818 |
Accumulated amortization and impairment [Member] | ||
Accumulated amortization and impairment: | ||
Balance beginning of accumulated amortization and impairment | $ 711 | |
Balance ending of accumulated amortization and impairment | $ 711 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details) - Schedule of Useful Life of Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Licenses [Member] | |
Schedule of Useful Life of Intangible Assets [Line Items] | |
Useful life | Indefinite |
Amortization method | Not amortized |
Customers relationship [Member] | |
Schedule of Useful Life of Intangible Assets [Line Items] | |
Useful life | Definite 10.58 years |
Amortization method | Straight-line |
Trade name [Member] | |
Schedule of Useful Life of Intangible Assets [Line Items] | |
Useful life | Definite 10.58 years |
Amortization method | Straight-line |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Details) - Schedule of Net Carrying Amounts of Goodwill, Licenses, Trade Name and Customer Relationships - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Net Carrying Amounts of Goodwill, Licenses, Trade Name and Customer Relationships [Line Items] | ||
Goodwill | $ 2,253 | $ 2,290 |
Licenses | 1,648 | |
Trade Name | 304 | |
Customer Relationships | 1,345 | |
Total Intangible Assets | 3,297 | |
ILSB [Member] | ||
Schedule of Net Carrying Amounts of Goodwill, Licenses, Trade Name and Customer Relationships [Line Items] | ||
Goodwill | 1,236 | |
Licenses | 448 | |
Trade Name | 304 | |
Customer Relationships | 1,062 | |
Total Intangible Assets | 1,814 | |
INXS [Member] | ||
Schedule of Net Carrying Amounts of Goodwill, Licenses, Trade Name and Customer Relationships [Line Items] | ||
Goodwill | 1,017 | |
Licenses | 1,200 | |
Trade Name | ||
Customer Relationships | 283 | |
Total Intangible Assets | $ 1,483 |
Right-Of-Use Assets and Lease_3
Right-Of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 19, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Right-Of-Use Assets and Lease Liabilities (Details) [Line Items] | ||||
Lease payment | $ 18 | $ 564 | $ 578 | $ 68 |
Sublease agreement | $ 90 | |||
Agreement terminates, date | May 31, 2024 | |||
Bottom of range [member] | ||||
Right-Of-Use Assets and Lease Liabilities (Details) [Line Items] | ||||
Lease term | 2 years | |||
Top of range [member] | ||||
Right-Of-Use Assets and Lease Liabilities (Details) [Line Items] | ||||
Lease term | 5 years |
Right-Of-Use Assets and Lease_4
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Right-of-Use Assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
At cost [member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance at Beginning | $ 1,927 | $ 1,083 |
Disposal | (656) | |
Lease modification | (18) | |
New leases | 827 | |
Adjustments arising from translating financial statements from functional currency to presentation currency | 55 | (46) |
CPI and revaluation differences | 63 | |
Balance at Ending | 1,338 | 1,927 |
Accumulated depreciation [Member] | ||
Schedule of Right-of-Use Assets [Line Items] | ||
Balance at Beginning | 618 | 96 |
Disposal | (430) | |
Depreciation and amortization | 411 | 522 |
Balance at Ending | 599 | 618 |
Right-of-use assets | $ 739 | $ 1,309 |
Right-Of-Use Assets and Lease_5
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Respect of Lease Liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Respect of Lease Liability [Abstract] | ||
Beginning balance | $ 1,387 | $ 1,140 |
Changes during the year: | ||
New leases | 827 | |
Lease payments | (564) | (578) |
Interest expense | 60 | 83 |
Lease modification | (18) | |
CPI and revaluation differences | 4 | (85) |
Ending balance | 869 | 1,387 |
Current lease liability | 390 | 519 |
Non-current lease liability | $ 479 | $ 868 |
Right-Of-Use Assets and Lease_6
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Maturity Analysis of Undiscounted Lease Payments $ in Thousands | Dec. 31, 2023 USD ($) |
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Maturity Analysis of Undiscounted Lease Payments [Line Items] | |
Total lease payment | $ 929 |
2024 [Member] | |
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Maturity Analysis of Undiscounted Lease Payments [Line Items] | |
Total lease payment | 438 |
2025 [Member] | |
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Maturity Analysis of Undiscounted Lease Payments [Line Items] | |
Total lease payment | 318 |
2026 [Member] | |
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Maturity Analysis of Undiscounted Lease Payments [Line Items] | |
Total lease payment | 80 |
2027 [Member] | |
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Maturity Analysis of Undiscounted Lease Payments [Line Items] | |
Total lease payment | 80 |
2028 [Member] | |
Right-Of-Use Assets and Lease Liabilities (Details) - Schedule of Maturity Analysis of Undiscounted Lease Payments [Line Items] | |
Total lease payment | $ 13 |
Inx Token Liability (Details)
Inx Token Liability (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Aug. 10, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inx Token Liability [Line Items] | ||||
Percent of the outstanding | 5.50% | |||
Company granted | $ 11,000 | $ 168,000 | ||
Employees expense | $ 6 | $ 29 | ||
Warrants exercised (in Shares) | 2,149,210 | 2,534,618 | ||
Aggregate purchase amount | $ 5,000 | |||
Expenses | $ 3,775 | $ 226,044 | $ 161,173 | |
Level 1 of fair value hierarchy [Member] | ||||
Inx Token Liability [Line Items] | ||||
Lock up agreement (in Dollars per share) | $ 0.4 | $ 0.43 |
Inx Token Liability (Details) -
Inx Token Liability (Details) - Schedule of the Number of Inx Tokens that the Company has Distributed - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of The Number Of Inx Tokens That The Company Has Distributed Abstract | ||
Total number of INX Tokens | 135,570,986 | 133,410,776 |
INX Token liability | $ 54,120 | $ 56,847 |
Inx Token Liability (Details)_2
Inx Token Liability (Details) - Schedule of Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Number of INX tokens (in Shares) | 135,570,986 | 133,410,776 |
Total fair value (in Dollars) | $ 54,120 | $ 56,847 |
Not subject to lock-up [Member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 0% | 0% |
Number of INX tokens (in Shares) | 133,293,902 | 122,716,614 |
Total fair value (in Dollars) | $ 53,317 | $ 52,768 |
Subject to lock-up through January 2024 [Member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 4.05% | |
Number of INX tokens (in Shares) | 150,000 | |
Total fair value (in Dollars) | $ 58 | |
Subject to lock-up through February 2024 [Member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Number of INX tokens (in Shares) | 600,000 | |
Total fair value (in Dollars) | $ 222 | |
Subject to lock-up through February 2024 [Member] | Bottom of range [member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 7.22% | |
Subject to lock-up through February 2024 [Member] | Top of range [member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 7.89% | |
Subject to lock-up through July 2024 [Member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 14.35% | 24.99% |
Number of INX tokens (in Shares) | 1,527,084 | 1,527,084 |
Total fair value (in Dollars) | $ 523 | $ 493 |
Subject to lock-up through February-April 2023 [Member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Number of INX tokens (in Shares) | 9,082,078 | |
Total fair value (in Dollars) | $ 3,554 | |
Subject to lock-up through February-April 2023 [Member] | Bottom of range [member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 6% | |
Subject to lock-up through February-April 2023 [Member] | Top of range [member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 9.30% | |
Subject to lock-up through May 2023 [Member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Number of INX tokens (in Shares) | 82,000 | |
Total fair value (in Dollars) | $ 31 | |
Subject to lock-up through May 2023 [Member] | Bottom of range [member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 10.05% | |
Subject to lock-up through May 2023 [Member] | Top of range [member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 10.22% | |
Subject to lock-up through June 2023 [Member] | ||
Schedule of the Fair Values of Inx Tokens Free of, or Subject to Lock-Up Agreements and the Discount Rates [Line Items] | ||
Discount rate | 10.52% | |
Number of INX tokens (in Shares) | 3,000 | |
Total fair value (in Dollars) | $ 1 |
Inx Token Liability (Details)_3
Inx Token Liability (Details) - Schedule of Inputs and Assumptions are Volatility and the Period under the Lock Up | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Bottom of range [member] | ||
Inx Token Liability (Details) - Schedule of Inputs and Assumptions are Volatility and the Period under the Lock Up [Line Items] | ||
Expected term (years) | 14 days | 1 month 17 days |
Expected volatility | 89.05% | 71.56% |
Top of range [member] | ||
Inx Token Liability (Details) - Schedule of Inputs and Assumptions are Volatility and the Period under the Lock Up [Line Items] | ||
Expected term (years) | 6 months 10 days | 1 year 6 months 10 days |
Expected volatility | 90.16% | 103.37% |
Inx Token Warrant Liability (De
Inx Token Warrant Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inx Token Warrant Liability [Abstract] | ||
Token warrants shares | 5,574,292 | 6,972,192 |
Warrants new exercise price shares | 1,801,500 | |
Token warrants (in Dollars) | $ 8 |
Inx Token Warrant Liability (_2
Inx Token Warrant Liability (Details) - Schedule of Warrant Liability Composition - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
INX Token warrant liability: | ||
Warrants granted to employees, advisors and service providers | $ 1,240 | $ 1,580 |
Inx Token Warrant Liability (_3
Inx Token Warrant Liability (Details) - Schedule of Black-Scholes Pricing Model used for Fair Value Measurement of INX Tokens Warrants - INX Tokens Warrants [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Bottom of range [member] | ||
Schedule of Black-Scholes Pricing Model used for Fair Value Measurement of INX Tokens Warrants [Line Items] | ||
Expected volatility of the token prices (%) | 89.05% | 67.51% |
Risk-free interest rate (%) | 3.88% | 3.88% |
Expected life of warrant (years) | 6 months 7 days | 29 days |
Exercise price (in Dollars per share) | $ 0.01 | $ 0.01 |
Top of range [member] | ||
Schedule of Black-Scholes Pricing Model used for Fair Value Measurement of INX Tokens Warrants [Line Items] | ||
Expected volatility of the token prices (%) | 108.38% | 86.39% |
Risk-free interest rate (%) | 5.40% | 4.69% |
Expected life of warrant (years) | 10 years | 10 years |
Exercise price (in Dollars per share) | $ 2.81 | $ 2.86 |
Inx Token Warrant Liability (_4
Inx Token Warrant Liability (Details) - Schedule of Changes in Number of INX Token Warrants - $ / shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Schedule of Changes in the Number of Inx Token Warrants [Abstract] | ||||
Number of tokens, INX Tokens warrants outstanding at beginning of year | [1] | 6,972,192 | 5,660,861 | |
Weighted average exercise price, INX Tokens warrants outstanding at beginning of year | [1] | $ 0.46 | $ 0.52 | |
Number of tokens,INX Token warrants granted during the year | 1,265,000 | 4,388,043 | ||
Weighted average exercise price,INX Token warrants granted during the year | $ 0.16 | $ 0.25 | ||
Number of tokens, INX Token warrants forfeited during the year | (187,000) | (491,833) | ||
Weighted average exercise price, INX Token warrants forfeited during the year | $ 0.35 | $ 1.4 | ||
Number of tokens, INX Token warrants expired during the year | (326,690) | (50,261) | ||
Weighted average exercise price, INX Token warrants expired during the year | $ 0.32 | $ 0.03 | ||
Number of tokens, INX Token warrants exercised (INX Token issued) and INX Tokens vested during the year | (2,149,210) | (2,534,618) | ||
Weighted average exercise price, INX Token warrants exercised (INX Token issued) and INX Tokens vested during the year | $ 0.01 | $ 0.06 | ||
Number of tokens, INX Token warrants outstanding at the end of year | 5,574,292 | 6,972,192 | [1] | |
Weighted average exercise price, INX Token warrants outstanding at the end of year | $ 0.33 | $ 0.46 | [1] | |
Number of tokens, INX Token warrants exercisable at the end of year | 2,606,000 | 3,718,955 | ||
Weighted average exercise price, INX Token warrants exercisable at the end of year | $ 0.24 | $ 0.16 | ||
[1]During the year ended December 31, 2022, the Company offered to employees an option to modify certain token warrants originally issued in 2021 and 2022. As result, during 2022, terms for 1,801,500 INX token warrants were modified to include a new exercise price and a new vesting schedule, which resulted in the increase in the fair value of the INX Token warrants of $8. |
Inx Token Warrant Liability (_5
Inx Token Warrant Liability (Details) - Schedule of Token-Based Compensation - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses (income): | |||
Research and development | $ 166 | $ 135 | $ 262 |
Sales and marketing | 268 | 437 | 177 |
General and administrative | 464 | 820 | 6,736 |
Change in fair value of INX Token warrant liability | (204) | (8,294) | 12,626 |
Total token-based compensation expense (income) | $ 694 | $ (6,902) | $ 19,801 |
Related Parties (Details)
Related Parties (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||||
Nov. 19, 2023 | Jan. 02, 2023 USD ($) | Jan. 01, 2023 | Oct. 18, 2022 | Sep. 21, 2022 | Jun. 30, 2022 | Mar. 24, 2022 | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Jul. 29, 2021 USD ($) | Feb. 25, 2021 shares | Nov. 27, 2017 shares | |
Related Parties [Line Items] | |||||||||||||
Service revenue | $ 976 | ||||||||||||
Cost of sales | 976 | ||||||||||||
Prepaid expenses and other receivables | 976 | ||||||||||||
General and administrative expenses | $ 13,316 | $ 15,450 | $ 33,136 | ||||||||||
Grant received | 520,000 | 254,808 | 1,325,946 | 1,334,322 | 509,617 | ||||||||
Fair value of grants (in Dollars per share) | $ / shares | $ 0.12 | $ 0.37 | |||||||||||
Ordinary shares issued (in Shares) | shares | 47,635,875 | 47,635,875 | 956,333 | 10,029,193 | |||||||||
Fair value of shares | 136 | ||||||||||||
Payment for shares issued | 175 | ||||||||||||
Aggregate transaction value | $ 60,000 | $ 1,001 | |||||||||||
Advisory fee | $ 90 | ||||||||||||
Percentage of aggregate transaction | 4.50% | ||||||||||||
Transaction fee | $ 1,400 | ||||||||||||
Percentage of gross proceeds received. | 5.50% | ||||||||||||
Directors [Member] | |||||||||||||
Related Parties [Line Items] | |||||||||||||
Purchase of option | 3,500 | ||||||||||||
A-Labs [Member] | |||||||||||||
Related Parties [Line Items] | |||||||||||||
Purchase of option | 1,527,084 | ||||||||||||
General and administrative expenses | 4,140 | ||||||||||||
Grant received | 4,550,000 | ||||||||||||
Fair value of grants (in Dollars per share) | $ / shares | $ 6,000 | ||||||||||||
Ordinary shares issued (in Shares) | shares | 1,120,000 | ||||||||||||
Payment for shares issued | 39 | ||||||||||||
Weild Capital, LLC. [Member] | |||||||||||||
Related Parties [Line Items] | |||||||||||||
Aggregate transaction value | $ 60,000 | ||||||||||||
Percentage of aggregate transaction | 3.50% | ||||||||||||
Percentage of gross proceeds received. | 3% | ||||||||||||
Token Options [Member] | A-Labs [Member] | |||||||||||||
Related Parties [Line Items] | |||||||||||||
General and administrative expenses | $ 4,140 | ||||||||||||
Nabatech [Member] | |||||||||||||
Related Parties [Line Items] | |||||||||||||
Percentage of ownership | 33% |
Related Parties (Details) - Sch
Related Parties (Details) - Schedule of Balances are Held with or by Related Parties - Related Parties [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Receivable from Parent Company | $ 216 | $ 1,205 |
Receivable from Nabatech | 976 | |
Prepaid expenses | 21 | 49 |
Total | 1,213 | 1,254 |
Liabilities: | ||
Accounts payable and accrued expenses | 240 | 308 |
INX Token liability | 4,485 | 5,531 |
INX Token warrant liability | 671 | 1,140 |
Total | $ 5,396 | $ 6,979 |
Related Parties (Details) - S_2
Related Parties (Details) - Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Related Parties (Details) - Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties [Line Items] | ||||
Service revenue | $ 976 | |||
Total compensation and benefits | 5,723 | $ 4,409 | $ 23,213 | |
Change in fair value of INX Token and warrant liabilities | (830) | (20,133) | 24,673 | |
Cost of service: | ||||
Cost of revenue | 976 | |||
Service revenue [Member] | ||||
Related Parties (Details) - Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties [Line Items] | ||||
Service revenue | 976 | |||
Total compensation and benefits | 976 | |||
Cost of service [Member] | ||||
Related Parties (Details) - Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties [Line Items] | ||||
Total compensation and benefits | 226 | |||
Cost of service: | ||||
Cost of revenue | 226 | |||
Research and Development [Member] | ||||
Related Parties (Details) - Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties [Line Items] | ||||
Total compensation and benefits | 465 | 541 | 1,437 | |
Research and Development: | ||||
Compensation and benefits | 234 | 465 | 598 | |
Share-based compensation | [1] | 190 | 70 | 391 |
INX Token-based compensation | 41 | 6 | 448 | |
Sales and marketing [Member] | ||||
Related Parties (Details) - Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties [Line Items] | ||||
Total compensation and benefits | 843 | 11,067 | ||
Research and Development: | ||||
Compensation and benefits | 369 | 4,406 | ||
Share-based compensation | [1] | 176 | 2,783 | |
INX Token-based compensation | 298 | 3,878 | ||
General and administrative [Member] | ||||
Related Parties (Details) - Schedule of Revenue and Expense Items Recognized in Transactions with Related Parties [Line Items] | ||||
Total compensation and benefits | 5,032 | 3,025 | 10,709 | |
Research and Development: | ||||
Compensation and benefits | 2,934 | 2,204 | 1,577 | |
Share-based compensation | [1] | 1,702 | 543 | 6,883 |
INX Token-based compensation | $ 396 | $ 278 | $ 2,249 | |
[1]See Note 19 for description of options granted by the Parent Company to employees of the Company that are exercisable into Common shares of the Parent Company. |
Convertible Loans (Details)
Convertible Loans (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 27, 2017 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2022 | Feb. 25, 2021 | |
Convertible Loans [Line Items] | |||||
Aggregate amount of convertible loans | $ 144 | $ 0 | |||
Aggregate ordinary shares (in Shares) | 10,029,193 | 47,635,875 | 47,635,875 | 956,333 | |
Percentage of loans interest rate | 2% | ||||
Total right to purchase (in Shares) | 2,690,623 | ||||
Convertible loans received | $ 144 | ||||
fair value of convertible loans | 5 | ||||
Fair value of loans received | $ 93 | ||||
Percentage of effective interest rate | 60% | ||||
Loans balances | $ 46 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jan. 10, 2022 USD ($) shares | Jan. 04, 2022 USD ($) | Sep. 13, 2020 USD ($) $ / shares shares | Mar. 31, 2020 $ / shares shares | Feb. 21, 2020 USD ($) $ / shares | Mar. 31, 2021 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2021 $ / shares shares | |
Equity (Details) [Line Items] | |||||||||
Discount rate percentage | 25% | ||||||||
Ordinary price per share (in Dollars per share) | $ / shares | $ 1.526 | $ 1.526 | $ 2.514 | ||||||
Amount Received | $ 579 | ||||||||
Converted shares (in Shares) | shares | 379,593 | ||||||||
Exercised granted shares (in Shares) | shares | 596,659 | ||||||||
Private placement units (in Shares) | shares | 31,680,000 | ||||||||
Gross proceeds | $ 31,283 | ||||||||
Description of warrant exercisable | Each unit consists of one Ordinary share and one-half of one Ordinary share purchase warrant exercisable for two years at an exercise price of CAD1.88 ($1.49) per share. | ||||||||
Warrant | $ 259 | ||||||||
Cash commissions | $ 1,951 | ||||||||
Agent compensation options (in Shares) | shares | 1,810,740 | ||||||||
Exercise price | (per share) | $ (0.99) | $ 1.25 | |||||||
Option value | $ 515 | $ 515 | |||||||
Triple V [Member] | |||||||||
Equity (Details) [Line Items] | |||||||||
Amount Received | 100 | ||||||||
A-Labs [Member] | |||||||||
Equity (Details) [Line Items] | |||||||||
Amount Received | 30 | ||||||||
New Investor [Member] | |||||||||
Equity (Details) [Line Items] | |||||||||
Amount Received | $ 1,500 | ||||||||
Consideration amount | $ 1,500 | ||||||||
Ordinary shares, issued (in Shares) | shares | 621,375 | ||||||||
Warrant to purchase (in Shares) | shares | 596,659 | ||||||||
Ordinary shares per share price (in Dollars per share) | $ / shares | $ 2.514 | ||||||||
SAFE [Member] | |||||||||
Equity (Details) [Line Items] | |||||||||
Additional capital increased | $ 1,500 | ||||||||
SAFE agreement dated August 30, 2019 [Member] | |||||||||
Equity (Details) [Line Items] | |||||||||
Ordinary price per share (in Dollars per share) | $ / shares | $ 1.953 | ||||||||
Converted shares (in Shares) | shares | 268,179 | ||||||||
SAFE Agreement dated March 31, 2020 [Member] | |||||||||
Equity (Details) [Line Items] | |||||||||
Ordinary price per share (in Dollars per share) | $ / shares | $ 1.696 | ||||||||
Converted shares (in Shares) | shares | 115,661 | ||||||||
Private Placements [Member] | |||||||||
Equity (Details) [Line Items] | |||||||||
Gross proceeds | 27,028 | ||||||||
Warrant | 4,255 | ||||||||
Net addition to equity | 25,336 | ||||||||
Issuance cost | 1,692 | ||||||||
Warrant liability | $ 4,255 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of Composition of Share Capital - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Composition of Share Capital [Abstract] | ||
Number of shares, Authorized | 100,000,000 | 100,000,000 |
Number of shares, Issued and outstanding | 47,635,875 | 47,635,875 |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity (Details) - Schedule of Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning | $ (1,254) | $ 188 | |
Realized loss on available-for sale securities reclassification adjustment into net income (loss) | 77 | 424 | |
Unrealized gain on available-for-sale securities | 1,086 | (1,353) | |
Foreign currency translation | (53) | (513) | 188 |
Balance ending | (144) | (1,254) | 188 |
Reserve from financial assets measured at fair value through OCI [Member] | |||
Equity (Details) - Schedule of Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning | (929) | ||
Realized loss on available-for sale securities reclassification adjustment into net income (loss) | 77 | 424 | |
Unrealized gain on available-for-sale securities | 1,086 | (1,353) | |
Foreign currency translation | |||
Balance ending | 234 | (929) | |
Gain (loss) on foreign currency translation [Member] | |||
Equity (Details) - Schedule of Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning | (325) | 188 | |
Realized loss on available-for sale securities reclassification adjustment into net income (loss) | |||
Unrealized gain on available-for-sale securities | |||
Foreign currency translation | (53) | (513) | 188 |
Balance ending | $ (378) | $ (325) | $ 188 |
Share-Based Payment (Details)
Share-Based Payment (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||||||||||||||
Nov. 30, 2023 shares | Nov. 19, 2023 $ / shares | Nov. 19, 2023 $ / shares | May 12, 2023 $ / shares | May 12, 2023 $ / shares | Jan. 19, 2023 shares | Nov. 30, 2022 $ / shares shares | Nov. 30, 2022 $ / shares shares | Oct. 18, 2022 $ / shares | Oct. 18, 2022 $ / shares | Sep. 21, 2022 $ / shares | Sep. 21, 2022 $ / shares | Jun. 30, 2022 $ / shares | Jun. 30, 2022 $ / shares | Jun. 22, 2022 shares | Mar. 24, 2022 $ / shares | Mar. 24, 2022 $ / shares | Mar. 15, 2022 $ / shares shares | Mar. 15, 2022 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
Share Based Payment [Line Items] | ||||||||||||||||||||||
Authorised shares | 100,000,000 | 100,000,000 | ||||||||||||||||||||
Issuance of restricted shares | 912,721 | |||||||||||||||||||||
Vesting period | 4 years | 4 years | 3 years | 3 years | 3 years | 3 years | 4 years | 4 years | 4 years | 4 years | ||||||||||||
Purchase of shares | 520,000 | 520,000 | 254,808 | 254,808 | 1,325,946 | 1,325,946 | 1,334,322 | 1,334,322 | 509,617 | 509,617 | ||||||||||||
Price per share | (per share) | $ 0.14 | $ 0.185 | $ 0.17 | $ 0.235 | $ 0.2 | $ 0.265 | $ 0.25 | $ 0.31 | $ 0.6 | $ 0.76 | ||||||||||||
Share-based compensation expense | $ | $ 2,724 | $ 1,135 | $ 10,899 | |||||||||||||||||||
Exercise price | $ / shares | $ 0.12 | $ 0.37 | ||||||||||||||||||||
Common Shares [Member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Purchase of shares | 786,535 | 786,535 | ||||||||||||||||||||
Price per share | (per share) | $ 0.25 | $ 0.31 | ||||||||||||||||||||
Restricted Common Shares [Member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Issuance of restricted shares | 1,996,430 | |||||||||||||||||||||
Vesting period | 1 year | |||||||||||||||||||||
Employee [Member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Vesting period | 4 years | 4 years | 4 years | 4 years | ||||||||||||||||||
Purchase of shares | 3,418,034 | 3,418,034 | 5,129,334 | 5,129,334 | ||||||||||||||||||
Price per share | (per share) | $ 0.13 | $ 0.17 | $ 0.5 | $ 0.64 | ||||||||||||||||||
Directors [Member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Purchase of shares | 928,399 | 928,399 | ||||||||||||||||||||
Price per share | (per share) | $ 0.12 | $ 0.165 | ||||||||||||||||||||
Vest share option | 530,514 | 397,886 | 397,886 | |||||||||||||||||||
Bottom of range [member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Vesting period | 2 years | 2 years | ||||||||||||||||||||
Top of range [member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Vesting period | 3 years | 3 years | ||||||||||||||||||||
Parent [member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Authorised shares | 25,352,832 | |||||||||||||||||||||
Aggregate number of common shares | 37,408,948 | |||||||||||||||||||||
Restricted Shares [Member] | ||||||||||||||||||||||
Share Based Payment [Line Items] | ||||||||||||||||||||||
Issuance of restricted shares | 5,036,132 | 5,036,132 | ||||||||||||||||||||
Vesting period | 3 years | 3 years |
Share-Based Payment (Details) -
Share-Based Payment (Details) - Schedule of Fair Value of the Options Granted Under the Plan Using the Black- Scholes Option Pricing Model - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Fair Value of the Options Granted Under the Plan Using the Black- Scholes Option Pricing Model [Line Items] | ||
Expected term (years) | 10 years | 10 years |
Dividend yield | ||
Bottom of range [member] | ||
Schedule of Fair Value of the Options Granted Under the Plan Using the Black- Scholes Option Pricing Model [Line Items] | ||
Expected volatility | 87.05% | 89.78% |
Exercise price (in Dollars per share) | $ 0.13 | $ 0.17 |
Risk-free interest rate | 2.886% | 1.37% |
Top of range [member] | ||
Schedule of Fair Value of the Options Granted Under the Plan Using the Black- Scholes Option Pricing Model [Line Items] | ||
Expected volatility | 86.22% | 94.32% |
Exercise price (in Dollars per share) | $ 0.14 | $ 0.55 |
Risk-free interest rate | 3.684% | 3.356% |
Income (Loss) Per Share (Detail
Income (Loss) Per Share (Details) - Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Basic And Diluted Net Income Loss Per Ordinary Share Abstract | |||
Earnings (loss) per share, basic | $ (0.25) | $ 4.52 | $ (14.3) |
Income (Loss) Per Share (Deta_2
Income (Loss) Per Share (Details) - Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Basic And Diluted Net Income Loss Per Ordinary Share Abstract | |||
Earnings (loss) per share, diluted | $ (0.25) | $ 4.52 | $ (14.30) |
Income (Loss) Per Share (Deta_3
Income (Loss) Per Share (Details) - Schedule of Income (Loss) Per Share - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Income (Loss) Per Share [Abstract] | |||
Net income (loss) used in the calculation of earnings (loss) per share, basic | $ (12,055) | $ 211,334 | $ (215,235) |
Weighted average number of Ordinary Shares for the purposes of earnings (loss) per share, basic | 47,635,875 | 46,767,930 | 15,048,576 |
Income (Loss) Per Share (Deta_4
Income (Loss) Per Share (Details) - Schedule of Income (Loss) Per Share (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Income (Loss) Per Share [Abstract] | |||
Net income (loss) used in the calculation of earnings (loss) per share, diluted | $ (12,055) | $ 211,334 | $ (215,235) |
Weighted average number of Ordinary Shares for the purposes of earnings (loss) per share, diluted | 47,635,875 | 46,767,930 | 15,048,576 |
Financial Risks and Risk Mana_2
Financial Risks and Risk Management (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Risks and Risk Management [Abstract] | ||
Percentage of estimate of the effect on equity investments | 20% | |
Investments variables held | $ 5,575 | $ 8,000 |
Operating Segments (Details)
Operating Segments (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
Total revenues percentage | 10% |
Operating Segments (Details) -
Operating Segments (Details) - Schedule of Revenue and Net Income (Loss) by the Reporting Operating Segment - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Revenue and Net Income (Loss) by the Reporting Operating Segment [Line Items] | |||
Revenue | $ 17,701 | $ 13,219 | $ 2,544 |
Total income | 5,580 | 4,273 | 2,544 |
Segment net income (loss) | (15,625) | (14,591) | (53,905) |
Unallocated corporate expenses: | |||
Other income (expense), net | 3,775 | 226,044 | (161,173) |
Net income (loss) before taxes | (11,850) | 211,453 | (215,078) |
Brokerage Segment [Member] | |||
Schedule of Revenue and Net Income (Loss) by the Reporting Operating Segment [Line Items] | |||
Revenue | 4,913 | 3,621 | 2,278 |
Total income | 4,913 | 3,621 | 2,278 |
Segment net income (loss) | 65 | (157) | 383 |
Digital Assets Segment [Member] | |||
Schedule of Revenue and Net Income (Loss) by the Reporting Operating Segment [Line Items] | |||
Revenue | 12,788 | 9,598 | 266 |
Total income | 667 | 652 | 266 |
Segment net income (loss) | $ (15,690) | $ (14,434) | $ (54,288) |
Operating Segments (Details) _2
Operating Segments (Details) - Schedule of Reporting Operating Segment - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Reporting Operating Segment [Line Items] | ||
Segment assets | $ 72,516 | $ 82,405 |
Segment liabilities | 63,053 | 64,721 |
Brokerage Segment [Member] | ||
Schedule of Reporting Operating Segment [Line Items] | ||
Segment assets | 5,652 | 2,351 |
Segment liabilities | 1,280 | 1,077 |
Digital Assets Segment [Member] | ||
Schedule of Reporting Operating Segment [Line Items] | ||
Segment assets | 66,864 | 80,054 |
Segment liabilities | $ 61,773 | $ 63,644 |
Operating Segments (Details) _3
Operating Segments (Details) - Schedule of Non-Current Assets, Other Than Financial Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
United States [Member] | ||
Schedule of Non-Current Assets, Other Than Financial Assets [Line Items] | ||
Non-current assets | $ 2,500 | $ 2,848 |
State of Israel [Member] | ||
Schedule of Non-Current Assets, Other Than Financial Assets [Line Items] | ||
Non-current assets | 4,130 | 4,663 |
Gibraltar [Member] | ||
Schedule of Non-Current Assets, Other Than Financial Assets [Line Items] | ||
Non-current assets | $ 11 |
Operating Segments (Details) _4
Operating Segments (Details) - Schedule of Revenue Reported in Financial Statements are Attributed to Countries Based on Location of Customer - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Brokerage Segment [Member] | United Kingdom [Member] | |||
Brokerage Segment: | |||
Revenue | $ 2,653 | $ 1,083 | $ 911 |
Brokerage Segment [Member] | State of Israel [Member] | |||
Brokerage Segment: | |||
Revenue | 1,984 | 1,562 | 911 |
Brokerage Segment [Member] | United States [Member] | |||
Brokerage Segment: | |||
Revenue | 16 | 652 | 248 |
Brokerage Segment [Member] | Gibraltar [Member] | |||
Brokerage Segment: | |||
Revenue | |||
Brokerage Segment [Member] | Other [Member] | |||
Brokerage Segment: | |||
Revenue | 260 | 324 | 208 |
Digital Assets Segment [Member] | United Kingdom [Member] | |||
Brokerage Segment: | |||
Revenue | 4 | 123 | 6 |
Digital Assets Segment [Member] | State of Israel [Member] | |||
Brokerage Segment: | |||
Revenue | 21 | 90 | 90 |
Digital Assets Segment [Member] | United States [Member] | |||
Brokerage Segment: | |||
Revenue | 149 | 170 | 25 |
Digital Assets Segment [Member] | Gibraltar [Member] | |||
Brokerage Segment: | |||
Revenue | 11,380 | 8,946 | |
Digital Assets Segment [Member] | Other [Member] | |||
Brokerage Segment: | |||
Revenue | 151 | 107 | 48 |
Digital Assets Segment [Member] | Switzerland [Member] | |||
Brokerage Segment: | |||
Revenue | 976 | ||
Digital Assets Segment [Member] | Japan [Member] | |||
Brokerage Segment: | |||
Revenue | $ 107 | $ 162 | $ 97 |
Operating Segments (Details) _5
Operating Segments (Details) - Schedule of Revenue From Major Customers - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Customer A [Member] | |||
Brokerage Segment: | |||
Brokerage segment | $ 592 | $ 452 | $ 265 |
Customer B [Member] | |||
Brokerage Segment: | |||
Brokerage segment | $ 533 |
Employee Benefits Expense (Deta
Employee Benefits Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefits Expense [Abstract] | |||
Employee post-retirement benefit plans contribution | $ 931 | $ 899 | $ 608 |
Employee Benefits Expense (De_2
Employee Benefits Expense (Details) - Schedule of Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cost of Service [Member] | |||
Employee Benefits Expense (Details) - Schedule of Consolidated Statements of Comprehensive Loss [Line Items] | |||
Compensation and benefits | $ 505 | ||
Share-based compensation | |||
Token-based compensation | |||
Total | 505 | ||
Research and development [Member] | |||
Employee Benefits Expense (Details) - Schedule of Consolidated Statements of Comprehensive Loss [Line Items] | |||
Compensation and benefits | 2,053 | 2,159 | 1,286 |
Share-based compensation | 400 | 2 | 1,105 |
Token-based compensation | 166 | 125 | 262 |
Total | 2,619 | 2,286 | 2,653 |
Sales and Marketing [Member] | |||
Employee Benefits Expense (Details) - Schedule of Consolidated Statements of Comprehensive Loss [Line Items] | |||
Compensation and benefits | 1,735 | 1,160 | 677 |
Share-based compensation | 443 | 1,022 | 2,809 |
Token-based compensation | 268 | 435 | 177 |
Total | 2,446 | 2,617 | 3,663 |
General and administration [Member] | |||
Employee Benefits Expense (Details) - Schedule of Consolidated Statements of Comprehensive Loss [Line Items] | |||
Compensation and benefits | 5,669 | 6,493 | 5,072 |
Share-based compensation | 1,882 | 111 | 6,985 |
Token-based compensation | 464 | 817 | 6,175 |
Total | $ 8,015 | $ 7,421 | $ 18,232 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes on Income [Abstract] | ||||
Income tax percentage | 23% | 23% | 23% | |
Weighted tax percentage | 21% | 21% | 30.80% | |
Gibraltar tax rate | 10% | 12.50% | 12.50% | |
Total amount of operating tax losses (in Dollars) | $ 67,137 | |||
Income tax expense (in Dollars) | $ 205 | $ 119 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Non-adjusting events after reporting period [member] - USD ($) $ in Thousands | Feb. 13, 2024 | Jan. 08, 2024 |
Subsequent Events [Line Items] | ||
Restricted share units | 2,337,212 | |
Amount claimed (in Dollars) | $ 184 | |
INX Token [Member] | ||
Subsequent Events [Line Items] | ||
Restricted share units | 1,000,000 |